(Exact ~~name~~Name of ~~registrant~~Registrant as ~~specified~~Specified in its ~~charter)~~Charter)

Indicate by check mark whether the ~~registrant:~~registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.Yes☑ No __

Indicate by check mark whether the registrant has submitted electronically ~~and posted on its corporate Web site, if any,~~ every Interactive Data File required to be submitted ~~and posted~~ pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit ~~and post~~ such files).Yes☑No __

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated ~~filer”~~filer,” “smaller reporting company,” and ~~"emerging~~“emerging growth ~~company"~~company” in Rule 12b-2 of the Exchange ~~Act (check one):~~Act.

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. .☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).☐

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Condensed Consolidated ~~Balance Sheets~~Statements of Operations and Comprehensive Loss (Unaudited)

The accompanying notes are an integral part of the interim condensed consolidated financial statements.

Condensed Consolidated Statements of ~~Operations and Comprehensive Income~~Cash Flows (Unaudited)

(~~Dollars and shares in thousands, except for per-share amounts)~~In thousands)

The accompanying notes are an integral part of the interim condensed consolidated financial statements.

Condensed Consolidated Statements of Changes in Stockholders’ Equity (Unaudited)

The accompanying notes are an integral part of the interim condensed consolidated financial statements.

~~In the opinion of management, the~~The accompanying unaudited interim condensed consolidated financial statements and notes to the unaudited interim condensed consolidated financial statements contain all adjustments, consisting of normal recurring items and items which are nonrecurring, necessary to present fairly, in all material respects, the financial position of Hecla Mining Company and its ~~consolidated~~ subsidiaries ~~(except as~~(collectively, “Hecla,” “the Company,” “we,” “our,” or “us,” except where the context ~~otherwise~~ requires ~~“we” or “our” or “us”~~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”). ~~These unaudited interim condensed consolidated financial statements~~Therefore, this information should be read in conjunction with ~~our audited~~Hecla Mining Company’s consolidated financial statements and ~~related footnotes as set forth~~notes contained in our annual report ~~filed~~ on Form 10-K for the year ended December 31, ~~2016, as it may be amended~~2022 (“2022 Form 10-K”). The consolidated December 31, 2022 balance sheet data was derived from ~~time to time.~~

our audited consolidated financial statements. The ~~results~~information furnished herein reflects all adjustments that are, in the opinion of ~~operations~~management, necessary for a fair statement of the results for the interim periods presented may not be indicative of those which may be expected for a full year. The unaudited interim condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). Certain information and footnote disclosures normally included in audited financial statements prepared in accordance with generally accepted accounting principlesreported. All such adjustments are, in the ~~United States (“GAAP”) have been condensed or omitted pursuant to those rules and regulations, although we believe that the disclosures are adequate for the information not to be misleading.~~

Certain condensed consolidated financial statement amounts for the prior period have been reclassified to conform to the current period presentation. These reclassifications had no effect on the net income, comprehensive income, or accumulated deficit as previously reported.

~~The preparation~~opinion of ~~financial statements in conformity with GAAP requires~~ management, ~~to make estimates and assumptions that affect the reported amounts~~ of assets and liabilities as of the date of the financial statements, the reported amounts of revenues and expenses during the reporting period, and the disclosures of contingent liabilities. Accordingly, ultimatea normal recurring nature. Operating results ~~could differ materially from those estimates.~~

On September 13, 2016, we completed the acquisition of Mines Management, Inc. ("Mines Management"), giving us ownership of the Montanore project in Northwest Montana. The unaudited interim condensed consolidated financial statements included herein reflect our ownership of the assets previously held by Mines Management as of the September 13, 2016 acquisition date.

Our current investments, which are classified as "available for sale" and consist of bonds having maturities of greater than 90 days and less than 365 days, had a fair value and cost basis of $33.0 million and $29.1 million at September 30, 2017 and December 31, 2016, respectively. During the first nine months of 2017, we had purchases of such investments of $35.3 million and maturities of $31.2 million. Our current investments at September 30, 2017 and December 31, 2016 consisted of the following (in thousands):

At September 30, 2017 and December 31, 2016, the fair value of our non-current investments was $7.1 million and $5.0 million, respectively. Our non-current investments consist of marketable equity securities which are carried at fair value, and are primarily classified as “available-for-sale.” The cost basis of our non-current investments was approximately $5.7 million and $4.0 million at September 30, 2017 and December 31, 2016, respectively. In the first nine months of 2017 and 2016, we acquired marketable equity securities having a cost basis of $1.6 million and $0.9 million, respectively. During the first quarter of 2016, we recognized an impairment charge against current earnings of $1.0 million, as we determined the impairment to be other-than-temporary.

~~Major components of our income tax (benefit) provision~~ for the three and nine months ended September 30, ~~2017~~2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023.

On July 7, 2023, we completed the acquisition of ATAC Resources Ltd. ("ATAC"), a Canadian publicly traded company, for total consideration of approximately $19.4 million through the issuance of 3,676,904 shares of Hecla common stock to ATAC shareholders based on the share exchange ratio of 0.0166 Hecla share for each ATAC common share, and ~~2016 are~~$0.6 million of acquisition costs. The acquisition was deemed to be an asset acquisition under GAAP as ~~follows (in thousands):~~

substantially all of the fair value of the gross assets acquired was concentrated in a single asset group being mineral interests. The total consideration was assigned to the estimated fair values of the assets acquired and liabilities assumed, with $18.1 million assigned to mineral interests. As part of ~~September 30, 2017,~~the acquisition, we ~~have~~also acquired 5,502,956 units consisting of (i) shares of Cascadia Minerals Ltd. (“Cascadia”) representing a ~~net deferred tax asset~~19.9% stake, and (ii) full warrants with a five-year term for a CAD$2 million cash investment in Cascadia. Cascadia will be managed by the former management of ATAC, who will explore specific properties in the ~~U.S.~~Yukon and British Columbia. We have the right to appoint two directors to Cascadia’s board.

We ~~follow GAAP guidance in determining our accruals and disclosures with respect to~~calculate basic loss contingencies, and evaluate such accruals and contingencies for each reporting period. Accordingly, estimated losses from loss contingencies are accrued by a charge to income when information available prior to issuanceper common share on the basis of the ~~financial statements indicates that it~~weighted average number of shares of common stock outstanding during the period. Diluted income per share is ~~probable that a liability could~~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 ~~incurred~~anti-dilutive.

For the three and nine months ended September 30, 2023 and 2022, 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.

Note 5. ~~Earnings Per Common Share~~12. Subsequent Events

~~We are authorized to issue 750,000,000~~On November 1, 2023, we participated in an equity offering of Dolly Varden Silver Corporation acquiring 15,384,616 shares of common stock ~~$0.25 par value per share. At September~~ ~~30, 2017, there were 403,548,158 shares of our common stock issued and 4,529,450 shares issued and held in treasury,~~ for a net of 399,018,708 shares outstanding. Basic and diluted income per common share, after preferred dividends, was $0.00 and $0.01 for the three- and nine-month periods ended September 30, 2017, respectively. Basic and diluted income per common share, after preferred dividends, was $0.07 and $0.13 for the three- and nine-month periods ended September 30, 2016, respectively.CAD$10 million (USD$7.3 million).

~~Diluted income per share for the three and nine months ended September~~ ~~30, 2017 and 2016 excludes the potential effects of outstanding shares of our convertible preferred stock, as their conversion would have no effect on the calculation of dilutive shares.~~

~~For the three-month and nine-month periods ended September~~ 30, 2017, 3,591,697 restricted stock units that were unvested or which vested in the current period and 1,509,159 deferred shares were included in the calculation of diluted income per share. For the three-month and nine-month periods ended September 30, 2016, 4,309,440 restricted stock units that were unvested or which vested in the current period and 635,602 deferred shares were included in the calculation of diluted income per share. There were no options or warrants outstanding as of September 30, 2017 or September 30, 2016.

~~Note 6.~~ ~~Business Segments~~

~~We are currently organized and managed in four reporting segments: the Greens Creek unit, the Lucky Friday unit, the Casa Berardi unit and the San Sebastian unit.~~

~~Table of Contents~~

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

~~The following tables present information about reportable segments for the three and nine months ended September~~ ~~30, 2017 and 2016 (in thousands):~~

Three Months Ended
September 30,

Nine Months Ended
September 30,

2017

2016

2017

2016

Net sales to unaffiliated customers:

Greens Creek
$ 61,061 $ 85,804 $ 191,250 $ 199,260
Lucky Friday ⁽¹⁾
199 26,140 20,022 70,152
Casa Berardi
53,990 41,131 139,524 126,614
San Sebastian
25,589 26,318 66,866 85,686
$ 140,839 $ 179,393 $ 417,662 $ 481,712
Income (loss) from operations:

Greens Creek
$ 16,575 $ 26,498 $ 46,107 $ 49,407
Lucky Friday
(4,642
)
6,652 (8,974
)
13,442
Casa Berardi
2,882 3,691 (1,071
)
16,246
San Sebastian
17,017 18,415 42,363 58,911
Other
(10,890
)
(17,016
)
(37,637
)
(42,584
)
$ 20,942 $ 38,240 $ 40,788 $ 95,422

⁽¹⁾ ~~The $0.2 million in sales reported for Lucky Friday for the third quarter of 2017 represents gains on base metal derivatives contracts.~~

~~The following table presents identifiable assets by reportable segment as of September~~ ~~30, 2017 and December 31, 2016 (in thousands):~~

September 30, 2017

December 31, 2016

Identifiable assets:

Greens Creek
$ 666,463 $ 681,303
Lucky Friday
432,752 442,829
Casa Berardi
814,053 806,044
San Sebastian
55,395 33,608
Other
427,520 407,893
$ 2,396,183 $ 2,371,677

The sales and income (loss) from operations amounts reported above include results from our Lucky Friday segment. The Lucky Friday mine is our only operation where some of our employees are subject to a collective bargaining agreement, and the most recent agreement expired on April 30, 2016. On February 19, 2017, the unionized employees voted against our contract offer. On March 13, 2017, the unionized employees went on strike and have been on strike since that time. Production at Lucky Friday was suspended from the start of the strike until July 2017, when limited production resumed. For the first nine months of 2017, suspension costs not related to production of $11.1 million, along with $3.3 million in non-cash depreciation expense, are reported in a separate line item on our unaudited condensed consolidated statement of operations. We cannot predict how long the strike will last or whether an agreement will be reached. As a result of the strike or other related events, operations at Lucky Friday could continue to be disrupted, which could adversely affect our financial condition and results of operations.

~~Table of Contents~~

~~Note 7.~~~~Employee Benefit Plans~~

We sponsor defined benefit pension plans covering substantially all U.S. employees. Net periodic pension cost for the plans consisted of the following for the three and nine months ended September 30, 2017 and 2016 (in thousands):

Three Months Ended
September 30,

2017

2016

Service cost
$ 1,196 $ 1,077
Interest cost
1,339 1,307
Expected return on plan assets
(1,462
)
(1,325
)
Amortization of prior service cost
(84
)
(84
)
Amortization of net loss
1,033 1,093
Net periodic pension cost
$ 2,022 $ 2,068

Nine Months Ended
September 30,

2017

2016

Service cost
$ 3,588 $ 3,231
Interest cost
4,017 3,921
Expected return on plan assets
(4,386
)
(3,975
)
Amortization of prior service cost
(252
)
(252
)
Amortization of net loss
3,099 3,279
Net periodic pension cost
$ 6,066 $ 6,204

We made cash contributions to our defined benefit plans of $1.2 million in April 2017 and $5.7 million in July 2017. We expect to contribute approximately $0.4 million to our unfunded supplemental executive retirement plan during 2017.

~~Note 8.~~ ~~Shareholders’ Equity~~

~~Stock-based Compensation Plans~~

We periodically grant restricted stock unit awards, performance-based share awards and shares of common stock to our employees and directors as part of their compensation. We measure compensation cost for restricted stock units and stock grants at the closing price of our stock at the time of grant. We measure compensation cost for performance-based grants using a Monte Carlo simulation to estimate their value at grant date. Restricted stock unit and performance-based share grants vest after a specified period with compensation cost amortized over that period. Although we have no current plans to issue stock options, we may do so in the future.

In March 2017, the Board of Directors granted 641,406 shares of common stock to employees for payment of annual and long-term incentive compensation for the period ended December 31, 2016. The shares were distributed in March 2017, and $4.2 million in expense related to the stock awards was recognized in the periods prior to March ~~31, 2017.~~

~~In June 2017, the Board of Directors granted the following restricted stock unit awards to employees:~~

~~775,379 restricted stock units, with one third of those vesting in June 2018, one third vesting in June 2019, and one third vesting in June 2020;~~

~~93,691 restricted stock units, with one half of those vesting in June 2018 and one-half vesting in June 2019; and~~

~~15,336 restricted stock units that vest in June 2018.~~

~~Table of Contents~~

The $1.9 million in expense related to the unit awards discussed above vesting in 2018 will be recognized on a straight-line basis over the twelve months following the date of the award. The $1.8 million in expense related to the unit awards discussed above vesting in 2019 will be recognized on a straight-line basis over the twenty-four months following the date of the award. The $1.5 million in expense related to the unit awards discussed above vesting in 2020 will be recognized on a straight-line basis over the thirty-six-month period following the date of the award.Forward-Looking Statements

In June 2017, the Board of Directors granted performance-based share awards to certain executive employees. The value of the awards will be based on the ranking of the market performance of our common stock relative to the performance of the common stock of a group of peer companies over the three-year measurement period ending December 31, 2019. The number of shares to be issued will be based on the value of the awards divided by the share price at grant date. The $0.6 million in expense related to the performance-based awards will be recognized on a straight-line base over the thirty months following the date of the award.

Stock-based compensation expense for restricted stock unit and performance-based grants to employees and shares issued to nonemployee directors recorded in the first nine months of 2017 totaled $4.9 million, compared to $4.8 million in the same period last year.

In connection with the vesting of restricted stock units and other stock grants, 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. As a result, in the first nine months of 2017 we withheld 588,240 shares valued at approximately $3.0 million, or approximately $5.09 per share. In the first nine months of 2016 we withheld 1,010,509 shares valued at approximately $3.5 million, or approximately $3.44 per share.

~~Common Stock Dividends~~

In September 2011 and February 2012, our Board of Directors adopted a common stock dividend policy that has two components: (1) a dividend that links the amount of dividends on our common stock to our average quarterly realized silver price in the preceding quarter, and (2) a minimum annual dividend of $0.01 per share of common stock, in each case, payable quarterly, when and if declared. For illustrative purposes only, the table below summarizes potential per share dividend amounts at different quarterly average realized price levels according to the first component of the policy:

Quarterly average realized silver price
per ounce

Quarterly dividend per
share

Annualized dividend
per share

$ 30 $ 0.01 $ 0.04
$ 35 $ 0.02 $ 0.08
$ 40 $ 0.03 $ 0.12
$ 45 $ 0.04 $ 0.16
$ 50 $ 0.05 $ 0.20

On November 7, 2017, our Board of Directors declared a common stock dividend, pursuant to the minimum annual dividend component of the policy described above, of $0.0025 per share, for a total dividend of $1.0 million payable in December 2017. Because the average realized silver price for the third quarter of 2017 was $17.01 per ounce, below the minimum threshold of $30 according to the policy, no silver-price-linked component was declared or paid. The declaration and payment of common stock dividends is at the sole discretion of our Board of Directors.

~~Table of Contents~~

~~At-The-Market Equity Distribution Agreement~~

Pursuant to an equity distribution agreement dated February 23, 2016, we may issue and sell shares of our common stock from time to time through ordinary broker transactions having an aggregate offering price of up to $75 million, with the net proceeds available for general corporate purposes. The terms of sales transactions under the agreement, including trading day(s), number of shares sold in the aggregate, number of shares sold per trading day, and the floor selling price per share, are proposed by us to the sales agent. Whether or not we engage in sales from time to time may depend on a variety of factors, including 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. The shares issued under the equity distribution agreement are registered under the Securities Act of 1933, as amended, pursuant to our shelf registration statement on Form S-3, which was filed with the Securities and Exchange Commission ("SEC") on February 23, 2016. As of September 30, 2017, we had sold 4,608,847 shares under the agreement for total proceeds of approximately $17.7 million, net of commissions and fees of approximately $362 thousand. Of those amounts, 1,828,760 shares were sold in the first nine months of 2017 for total proceeds of approximately $9.6 million, net of commissions and fees of approximately $196 thousand.

~~Common Stock Repurchase Program~~

~~On May 8, 2012, we announced that our Board of Directors approved a stock repurchase program.~~ Under the program, we are authorized to repurchase up to 20 million shares of our outstanding common stock from time to time in open market or privately negotiated transactions, depending on prevailing market conditions and other factors. The repurchase program may be modified, suspended or discontinued by us at any time. Whether or not we engage in repurchases from time to time may depend on a variety of factors, including not only price and cash resources, but customary black-out restrictions, whether we have any material inside information, limitations on share repurchases or cash usage that may be imposed by our credit agreement or in connection with issuances of securities, alternative uses for cash, applicable law, and other investment opportunities from time to time. As of September 30, 2017, 934,100 shares have been purchased at an average price of $3.99 per share, leaving 19.1 million shares that may yet be purchased under the program. No shares were purchased during the nine months ended September 30, 2017. The closing price of our common stock at November 3, 2017, was $4.45 per share.

~~Note 9.~~ ~~Senior Notes, Credit Facility and Capital Leases~~

~~Senior Notes~~

On April 12, 2013, we completed an offering of $500 million in aggregate principal amount of our Senior Notes due May 1, 2021 in a private placement conducted pursuant to Rule 144A and Regulation S under the Securities Act of 1933, as amended, and in 2014, an additional $6.5 million aggregate principal amount of the Senior Notes were issued to one of our pension plans. The Senior Notes were subsequently exchanged for substantially identical Senior Notes registered with the SEC. The Senior Notes are governed by the Indenture, dated as of April 12, 2013, as amended (the "Indenture"), among Hecla Mining Company ("Hecla") and certain of our subsidiaries and The Bank of New York Mellon Trust Company, N.A., as trustee. The net proceeds from the initial offering of the Senior Notes ($490 million) were used to partially fund the acquisition of Aurizon and for general corporate purposes, including expenses related to the Aurizon acquisition.

~~The Senior Notes are recorded net of a 2% initial purchaser discount totaling $10 million at the time of the April 2013 issuance and having an unamortized balance of $4.6 million as of September~~ 30, 2017. The Senior Notes bear interest at a rate of 6.875% per year from the date of original issuance or from the most recent payment date on which interest has been paid or provided for. Interest on the Senior Notes is payable on May 1 and November 1 of each year, commencing November 1, 2013. During the nine months ended September 30, 2017 and 2016, interest expense related to the Senior Notes, including amortization of the initial purchaser discount and fees related to the issuances of the Senior Notes, was $26.3 million and $15.2 million, respectively. The interest expense related to the Senior Notes for the nine months ended September 30, 2017 and 2016 was net of $0.9 million and $12.0 million, respectively, in capitalized interest, primarily related to the #4 Shaft project at our Lucky Friday unit which was completed in January 2017. Interest expense for the nine months ended September 30, 2017 also includes $0.9 million in costs related to our proposed private offering of new Senior Notes in June 2017 and concurrent tender offer to purchase our existing Senior Notes, which were not completed.

~~Table of Contents~~

~~The Senior Notes are guaranteed on a senior unsecured basis by certain of our subsidiaries (the "Guarantors").~~ The Senior Notes and the guarantees are, respectively, Hecla's and the Guarantors' general senior unsecured obligations and are subordinated to all of Hecla's and the Guarantors' existing and future secured debt to the extent of the assets securing that secured debt. In addition, the Senior Notes are effectively subordinated to all of the liabilities of Hecla's subsidiaries that are not guaranteeing the Senior Notes, to the extent of the assets of those subsidiaries.

The Senior Notes became redeemable in whole or in part, at any time and from time to time after May 1, 2016, on the redemption dates and at the redemption prices specified in the Indenture, plus accrued and unpaid interest, if any, to the date of redemption.

Upon the occurrence of a change of control (as defined in the Indenture), each holder of Senior Notes will have the right to require us to purchase all or a portion of such holder's Senior Notes pursuant to a change of control offer (as defined in the Indenture), at a purchase price equal to 101% of the principal amount thereof plus accrued and unpaid interest, if any, to the date of purchase, subject to the rights of holders of the Senior Notes on the relevant record date to receive interest due on the relevant interest payment date.

~~Credit Facility~~

In May 2016, we entered into a $100 million senior secured revolving credit facility with a three-year term, which was amended in July 2017 to extend the term until July 14, 2020. The credit facility is collateralized by the shares of common stock held in our material domestic subsidiaries and by our joint venture interests in the Greens Creek mine, all of our rights and interests in the joint venture agreement, and all of our rights and interests in the assets of the joint venture. ~~Below is information on the interest rates, standby fee, and financial covenant terms under our credit facility:~~

Interest rates:

Spread over the London Interbank Offer Rate
2.25 - 3.25%
Spread over alternative base rate
1.25 - 2.25%
Standby fee per annum on undrawn amounts
0.50%
Covenant financial ratios:

Senior leverage ratio (debt secured by liens/EBITDA)
not more than 2.50:1
Leverage ratio (total debt less unencumbered cash/EBITDA)
not more than 4.00:1
Interest coverage ratio (EBITDA/interest expense)
not more than 3.00:1

We are also able to obtain letters of credit under the facility, and for any such letters we are required to pay a participation fee of between 2.25% and 3.25% based on our total leverage ratio, as well as a fronting fee to each issuing bank of 0.20% annually on the average daily dollar amount of any outstanding letters of credit.

~~We believe we were in compliance with all covenants under the credit agreement and no amounts were outstanding as of September~~ 30, 2017. With the exception of $2.6 million in letters of credit outstanding as of September 30, 2017, we have not drawn funds on the current revolving credit facility as of the filing date of this report.

~~Capital Leases~~

~~We have entered into various lease agreements, primarily for equipment at our Greens Creek, Lucky Friday, and Casa Berardi units, which we have determined to be capital leases.~~ At September 30, 2017, the total liability balance associated with capital leases, including certain purchase option amounts, was $13.3 million, with $5.9 million of the liability classified as current and the remaining $7.4 million classified as non-current. At December 31, 2016, the total liability balance associated with capital leases was $11.5 million, with $5.7 million of the liability classified as current and $5.8 million classified as non-current. The total obligation for future minimum lease payments was $14.1 million at September 30, 2017, with $0.8 million attributed to interest.

~~Table of Contents~~

~~At September~~ ~~30, 2017, the annual maturities of capital lease commitments, including interest, are (in thousands):~~

Twelve-month period
ending September 30,

2018
$ 6,293
2019
4,179
2020
2,369
2021
1,260
Total
14,101
Less: imputed interest
(813
)
Net capital lease obligation
$ 13,288

~~Note 10.~~ ~~Developments in Accounting Pronouncements~~

In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09 Revenue Recognition, replacing guidance currently codified in Subtopic 605-10 Revenue Recognition-Overall with various SEC Staff Accounting Bulletins providing interpretive guidance. The new ASU establishes a new five step principles-based framework in an effort to significantly enhance comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets. In August 2015, the FASB issued ASU No. 2015-14 Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date. ASU No. 2015-14 defers the effective date of ASU No. 2014-09 until annual and interim reporting periods beginning after December 15, 2017.

We have performed an assessment of the impact of implementation of ASU No. 2014-09, and do not believe it will change the timing of revenue recognition or amounts of revenue recognized compared to how we recognize revenue under our current policies. Our revenues involve a relatively limited number of types of contracts and customers. In addition, our revenue contracts do not involve multiple types of performance obligations. Revenues from doré are recognized, and the transaction price is known, at the time the metals sold are delivered to the customer. Concentrate revenues are generally recognized at the time of shipment. Concentrates sold at our Lucky Friday unit typically leave the mine and are received by the customer within the same day. There is a period of time between shipment of concentrates from our Greens Creek unit and their physical receipt by the customer. However, based on our assessment, we believe control of the concentrate parcels is generally obtained by the customer at the time of shipment.

Our concentrate sales involve variable consideration, as they are subject to changes in metals prices between the time of shipment and their final settlement. However, we are able to reasonably estimate the transaction price for the concentrate sales at the time of shipment using forward prices for the month of settlement, and we then adjust the values each period until final settlement. Also, it is unlikely a significant reversal of revenue for any one concentrate parcel will occur.

ASU No. 2014-09 will require additional disclosures, where applicable, on (i) contracts with customers, (ii) significant judgments and changes in judgments in determining the timing of satisfaction of performance obligations and the transaction price, and (iii) assets recognized for costs to obtain or fulfill contracts. We are in the process of assessing the impact of these additional requirements on our disclosure.

In July 2015, the FASB issued ASU No. 2015-11 Inventory (Topic 330): Simplifying the Measurement of Inventory. The update provides for inventory to be measured at the lower of cost and net realizable value, and is effective for fiscal years beginning after December 15, 2016. We adopted this update effective January 1, 2017, and it did not have a material impact on our consolidated financial statements.

~~Table of Contents~~

In November 2015, the FASB issued ASU No. 2015-17 Income Taxes - Balance Sheet Classification of Deferred Taxes (Topic 740). The update is designed to reduce complexity of reporting deferred income tax liabilities and assets into current and non-current amounts in a balance sheet. ASU No. 2015-17 requires the presentation of deferred income taxes, changes to deferred tax liabilities and assets be classified as non-current in the statement of financial position. The update is effective for fiscal years beginning after December 15, 2016. We have elected to implement ASU No. 2015-17 retrospectively, and our deferred tax asset and liability balances are classified as non-current. Deferred tax assets of $12.3 million and deferred tax liabilities of $1.3 million previously classified as current as of December 31, 2016 are now classified as non-current on our condensed consolidated balance sheet.

In January 2016, the FASB issued ASU No. 2016-01 Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. The guidance requires entities to measure equity investments that are not accounted for under the equity method at fair value, with any changes in fair value included in current earnings, and updates certain disclosure requirements. The update is effective for fiscal years beginning after December 15, 2017. Adoption will be accounted for using the modified-retrospective approach, with a cumulative-effect adjustment to our balance sheet as of January 1, 2018. At September ~~30, 2017, we had net unrealized gains related to equity investments of $3.2 million included in accumulated other comprehensive loss.~~

In February 2016, the FASB issued ASU No. 2016-02 Leases (Topic 842). The update modifies the classification criteria and requires lessees to recognize the assets and liabilities on the balance sheet for most leases. The update is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. We are currently evaluating the impact of implementing this update on our consolidated financial statements.

In March 2016, the FASB issued ASU No. 2016-09 Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The update simplifies the accounting for stock-based compensation, including income tax consequences and balance sheet and cash flow statement classification of awards. The update is effective for fiscal years beginning after December 15, 2016. We adopted this update effective January 1, 2017, and it did not have a material impact on our consolidated financial statements.

In August 2016, the FASB issued ASU No. 2016-15 Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. The update provides guidance on classification for cash receipts and payments related to eight specific issues. The update is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years, with early adoption permitted. We are currently evaluating the potential impact of implementing this update on our consolidated financial statements.

In November 2016, the FASB issued ASU No. 2016-18 Statement of Cash Flows (Topic 230): Restricted Cash. The update requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. The update is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years, with early adoption permitted. We are currently evaluating the potential impact of implementing this update on our consolidated financial statements.

In January 2017, the FASB issued ASU No. 2017-01 Business Combinations (Topic 805): Clarifying the Definition of a Business. The update clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The update is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. We will apply the applicable provisions of the update to any acquisitions occurring after the effective date.

In March 2017, the FASB issued ASU No. 2017-07 Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Period Postretirement Benefit Cost. The update provides specific requirements for classification and disclosure regarding the service cost component and other components of net benefit cost related to pension plans. The update is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. We are currently evaluating the potential impact of implementing this update on our consolidated financial statements.

~~Table of Contents~~

In August 2017, the FASB issued ASU No. 2017-12 Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. The objective of the update is to improve the financial reporting of hedging relationships to better portray the economic results of an entity's risk management activities in its financial statements, and simplify the application of existing hedge accounting guidance. The update is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years, with early adoption permitted. We are currently evaluating the potential impact of implementing this update on our consolidated financial statements.

~~Note 11.~~ ~~Derivative Instruments~~

~~Foreign Currency~~

Our wholly-owned subsidiaries owning the Casa Berardi and San Sebastian mines are U.S. dollar ("USD")-functional entities which routinely incur expenses denominated in Canadian dollars ("CAD") and Mexican pesos ("MXN"), and such expenses expose us to exchange rate fluctuations between the USD and CAD and MXN. In April 2016, we initiated a program to manage our exposure to fluctuations in the exchange rate between the USD and CAD and the impact on our future operating costs denominated in CAD. In October 2016, we also initiated a program to manage our exposure to the impact of fluctuations in the exchange rate between the USD and MXN on our future operating costs denominated in MXN. The programs utilize forward contracts to buy CAD and MXN, and each contract is designated as a cash flow hedge. As of September 30, 2017, we have 94 forward contracts outstanding to buy CAD$200.1 million having a notational amount of US$154.0 million, and 6 forward contracts outstanding to buy MXN$43.3 million having a notional amount of USD$2.2 million. The CAD contracts are related to forecasted cash operating costs at Casa Berardi to be incurred from 2017 through 2020 and have USD-to-CAD exchange rates ranging between 1.2787 and 1.3380. The MXN contracts are related to forecasted cash operating costs at San Sebastian for 2017 and have MXN-to-USD exchange rates ranging between 19.5910 and 21.0000. Our risk management policy provides for up to 75% of our planned cost exposure for five years into the future to be hedged under such programs, and for potential additional programs to manage other foreign currency-related exposure areas.

~~As of September 30, 2017, we recorded the following balances for the fair value of the contracts:~~

~~a current asset of $2.8 million, which is included in other current assets; and~~

~~a non-current asset of $3.7 million, which is included in other non-current assets.~~

Net unrealized gains of approximately $6.8 million related to the effective portion of the hedges were included in accumulated other comprehensive income as of September 30, 2017. Unrealized gains and losses will be transferred from accumulated other comprehensive loss to current earnings as the underlying operating expenses are recognized. We estimate approximately $2.9 million in net unrealized gains included in accumulated other comprehensive income as of September 30, 2017 would be reclassified to current earnings in the next twelve months. Net realized gains of approximately $0.4 million on contracts related to underlying expenses which have been recognized were transferred from accumulated other comprehensive loss and included in cost of sales and other direct production costs for the nine months ended September 30, 2017. Net unrealized gains of approximately $2 thousand related to ineffectiveness of the hedges were included in current earnings for the nine months ended September 30, 2017.

~~Metals Prices~~

At times, we use commodity forward sales commitments, commodity swap contracts and commodity put and call option contracts to manage our exposure to fluctuations in the prices of certain metals we produce. Contract positions are designed to ensure that we will receive a defined minimum price for certain quantities of our production, thereby partially offsetting our exposure to fluctuations in the market. These instruments do, however, expose us to (i) credit risk in the form of possible non-performance by counterparties for contracts in which the contract price exceeds the spot price of a commodity and (ii) price risk to the extent that the spot price exceeds the contract price for quantities of our production covered under contract positions.

~~Table of Contents~~

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. In addition, we currently use financially-settled forward contracts to manage the exposure to changes in prices of zinc and lead (but not silver and gold) contained in our forecasted future concentrate shipments. These contracts are not designated as hedges and are marked-to-market through earnings each period. As of September 30, 2017, we recorded the following balances for the fair value of the contracts:

~~a current asset of $0.4 million, which is net of $0.1 million for contracts in a liability position and included in other current assets;~~

~~a current liability of $7.9 million, which is net of $0.2 million for contracts in an asset position and included in other current liabilities; and~~

~~a non-current liability of $4.0 million, which is included in other non-current liabilities.~~

We recognized a $3.9 million net loss during the first nine months of 2017 on the contracts utilized to manage exposure to prices of metals in our concentrate shipments, which is included in sales of products. The net loss recognized on the contracts offsets gains 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.

We recognized a $16.5 million net loss during the first nine months of 2017 on the contracts utilized to manage exposure to prices for forecasted future concentrate shipments. The net loss on these contracts is included as a separate line item under other income (expense), as they relate to forecasted future shipments, as opposed to sales that have already taken place but are subject to final pricing as discussed in the preceding paragraph. The net loss for the first nine months of 2017 is the result of higher zinc and lead prices. This program, when utilized, is designed to mitigate the impact of potential future declines in lead and zinc prices from the price levels established in the contracts (see average price information below). When those prices increase compared to the contract prices, we recognize losses.

~~The following tables summarize the quantities of metals committed under forward sales contracts at September~~ ~~30, 2017 and December 31, 2016:~~

September 30, 2017

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

2017 settlements
1,399 5 19,070 2,535 $ 17.18 $ 1,298 $ 1.33 $ 1.07
2018 settlements
— — 2,370 — N/A N/A $ 1.38 N/A
Contracts on forecasted sales

2017 settlements
— — 441 2,866 N/A N/A $ 1.23 $ 1.05
2018 settlements
— — 39,463 17,968 N/A N/A $ 1.27 $ 1.05
2019 settlements
— — 14,330 8,267 N/A N/A $ 1.30 $ 1.07
2020 settlements
— — 3,307 2,205 N/A N/A $ 1.27 $ 1.07

~~Table of Contents~~

December 31, 2016

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

2017 settlements
1,295 4 19,070 7,441 $ 16.29 $ 1,172 $ 1.18 $ 0.97

Contracts on forecasted sales

2017 settlements
— — 35,384 17,637 N/A N/A $ 1.19 $ 1.03
2018 settlements
— — 13,779 5,732 N/A N/A $ 1.21 $ 1.05

Our concentrate sales are based on a provisional sales price containing an embedded derivative that is required to be separated from the host contract for accounting purposes. The host contract is the receivable from the sale of the concentrates at the forward price at the time of the sale. The embedded derivative, which does not qualify for hedge accounting, is adjusted to market through earnings each period prior to final settlement.

~~Credit-risk-related Contingent Features~~

Certain of our derivative contracts contain cross default provisions which provide that a default under our revolving credit agreement would cause a default under the derivative contracts. As of September 30, 2017, we have not posted any collateral related to these agreements. The fair value of derivatives in a net liability position, which includes accrued interest but excludes any adjustment for nonperformance risk, related to these agreements was $14.4 million as of September 30, 2017. If we were in breach of any derivative contracts at September 30, 2017, we could have been required to settle our obligations under the agreements at their termination value of $14.4 million.

~~Table of Contents~~

~~Note 12.~~ ~~Fair Value Measurement~~

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
September 30, 2017

Balance at
December 31, 2016

Input
Hierarchy Level
Assets:

Cash and cash equivalents:

Money market funds and other bank deposits
$ 172,923 $ 169,777
Level 1
Available for sale securities:

Debt securities - municipal and corporate bonds
32,973 29,117
Level 2
Equity securities – mining industry
7,098 5,002
Level 1
Trade accounts receivable:

Receivables from provisional concentrate sales
6,982 20,082
Level 2
Restricted cash balances:

Certificates of deposit and other bank deposits
1,076 2,200
Level 1
Derivative contracts:

Foreign exchange contracts
6,533 27
Level 2
Metal forward contracts
394 5,403
Level 2
Total assets
$ 227,979 $ 231,608

Liabilities:

Derivative contracts:

Foreign exchange contracts
$ — $ 5,288
Level 2
Metal forward contracts
11,902 192
Level 2
Total liabilities
$ 11,902 $ 5,480

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 available-for-sale securities consist of municipal and corporate bonds having maturities of more 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 include amounts due to us for shipments of concentrates, doré and precipitate sold to customers.~~ Revenues and the corresponding accounts receivable for sales of metals products are recorded when title and risk of loss transfer to the customer (generally at the time of loading on truck or ship). Sales of concentrates are recorded using estimated forward prices for the anticipated month of settlement applied to our estimate of payable metal quantities contained in each shipment. Sales are recorded net of estimated treatment and refining charges, which are also impacted by changes in metals prices and quantities of contained metals. We estimate the prices at which sales of our concentrates will be settled due to the time elapsed between shipment and final settlement with the customer. Receivables for previously recorded concentrate sales are adjusted to reflect estimated forward metals prices at the end of each period until final settlement by the customer. We obtain the forward metals prices used each period from a pricing service. Changes in metal prices between shipment and final settlement result in changes to revenues previously recorded upon shipment. The embedded derivative contained in our concentrate sales is adjusted to fair market value through earnings each period prior to final settlement.

~~Table of Contents~~

We use financially-settled forward contracts to manage exposure to changes in the exchange rate between the USD and CAD and MXN, and the impact on CAD- and MXN-denominated operating costs incurred at our Casa Berardi and San Sebastian units (see ~~Note 11~~ for more information). These contracts qualify for hedge accounting, with unrealized gains and losses related to the effective portion of the contracts included in accumulated other comprehensive loss, and unrealized gains and losses related to the ineffective portion of the contracts included in earnings each period. 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 zinc and lead contained in our forecasted future concentrate shipments (see~~ ~~Note 11~~ for more information). These contracts do not qualify for hedge accounting, and are marked-to-market through earnings each period. The fair value of each 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.

~~Our Senior Notes issued in April 2013, which were recorded at their carrying value of $501.9 million, net of unamortized initial purchaser discount at September~~ 30, 2017 of $4.6 million, had a fair value of $524.6 million at September 30, 2017. Quoted market prices, which we consider to be Level 1 inputs, are utilized to estimate fair values of the Senior Notes. See ~~Note 9~~ ~~for more information.~~

~~Note 13.~~ ~~Guarantor Subsidiaries~~

Presented below are Hecla’s unaudited interim condensed consolidating financial statements as required by Rule 3-10 of Regulation S-X of the Securities Exchange Act of 1934, as amended, resulting from the guarantees by certain of Hecla's subsidiaries (the "Guarantors") of the Senior Notes (see ~~Note 9~~ for more information). The Guarantors consist of the following of Hecla's 100%-owned subsidiaries: Hecla Limited; Silver Hunter Mining Company; Rio Grande Silver, Inc.; Hecla MC Subsidiary, LLC; Hecla Silver Valley, Inc.; Burke Trading, Inc.; Hecla Montana, Inc.; Revett Silver Company; RC Resources, Inc.; Troy Mine Inc.; Revett Exploration, Inc.; Revett Holdings, Inc.; Mines Management, Inc.; Newhi Corp.; Montanore Minerals Corp.; Hecla Alaska LLC; Hecla Greens Creek Mining Company; Hecla Admiralty Company; and Hecla Juneau Mining Company. We completed the initial offering of the Senior Notes on April 12, 2013, and a related exchange offer for virtually identical notes registered with the SEC on January 3, 2014.

The unaudited interim condensed consolidating financial statements below have been prepared from our financial information on the same basis of accounting as the unaudited interim condensed consolidated financial statements set forth elsewhere in this report. Investments in the subsidiaries are accounted for under the equity method. Accordingly, the entries necessary to consolidate Hecla, the Guarantors, and our non-guarantor subsidiaries are reflected in the intercompany eliminations column. In the course of preparing consolidated financial statements, we eliminate the effects of various transactions conducted between Hecla and its subsidiaries and among the subsidiaries. While valid at an individual subsidiary level, such activities are eliminated in consolidation because, when taken as a whole, they do not represent business activity with third-party customers, vendors, and other parties. Examples of such eliminations include the following:

•

~~Investments in subsidiaries~~. The acquisition of a company results in an investment in debt or equity capital on the records of the parent company and a contribution to debt or equity capital on the records of the subsidiary. Such investments and capital contributions are eliminated in consolidation.

•

~~Capital contributions~~. Certain of Hecla's subsidiaries do not generate cash flow, either at all or sufficient to meet their capital needs, and their cash requirements are routinely met with inter-company advances from their parent companies. On at least an annual basis, when not otherwise intended as debt, the boards of directors of such parent companies declare contributions of capital to their subsidiary companies, which increase the parents' investment and the subsidiaries' additional paid-in capital. In consolidation, investments in subsidiaries and related additional paid-in capital are eliminated.

~~Table of Contents~~

•

~~Debt.~~ Inter-company debt agreements have been established between certain of Hecla's subsidiaries and their parents. The related debt liability and receivable balances, accrued interest expense (if any) and income activity (if any), and payments of principal and accrued interest amounts (if any) by the subsidiary companies to their parents are eliminated in consolidation.

•

~~Dividends.~~ Certain of Hecla's subsidiaries which generate cash flow routinely provide cash to their parent companies through inter-company transfers. On at least an annual basis, the boards of directors of such subsidiary companies declare dividends to their parent companies, which reduces the subsidiaries' retained earnings and increases the parents' dividend income. In consolidation, such activity is eliminated.

•

~~Deferred taxes~~. Our ability to realize deferred tax assets and liabilities is considered on a consolidated basis for subsidiaries within the United States, with all subsidiaries' estimated future taxable income contributing to the ability to realize all such assets and liabilities. However, when Hecla's subsidiaries are viewed independently, we use the separate return method to assess the realizability of each subsidiary's deferred tax assets and whether a valuation allowance is required against such deferred tax assets. In some instances, a parent company or subsidiary may possess deferred tax assets whose realization depends on the future taxable incomes of other subsidiaries on a consolidated-return basis, but would not be considered realizable if such parent or subsidiary filed on a separate stand-alone basis. In such a situation, a valuation allowance is assessed on that subsidiary's deferred tax assets, with the resulting adjustment reported in the eliminations column of the guarantor and parent's financial statements, as is the case in the unaudited interim financial statements set forth below. The separate return method can result in significant eliminations of deferred tax assets and liabilities and related income tax provisions and benefits. Non-current deferred tax asset balances are included in other non-current assets on the consolidating balance sheets and make up a large portion of that item, particularly for the guarantor balances.

Separate financial statements of the Guarantors are not presented because the guarantees by the Guarantors are joint and several and full and unconditional, except for certain customary release provisions, including: (1) the sale or disposal of all or substantially all of the assets of the Guarantor; (2) the sale or other disposition of the capital stock of the Guarantor; (3) the Guarantor is designated as an unrestricted entity in accordance with the applicable provisions of the indenture; (4) Hecla ceases to be a borrower as defined in the indenture; and (5) upon legal or covenant defeasance or satisfaction and discharge of the indenture.

Effective December 31, 2015, Hecla Limited (our wholly owned subsidiary) sold 100% of its ownership of Hecla Alaska LLC (its wholly owned subsidiary) to Hecla Mining Company for consideration totaling approximately $240.8 million. The consideration consisted of satisfaction of inter-company debt between Hecla Limited and Hecla Mining Company and an obligation by Hecla Mining Company, under certain circumstances, to fund a limited amount of the capital requirements of Hecla Limited for up to five years. Hecla Alaska LLC owns a 29.7331% interest in the joint venture which owns the Greens Creek mine. The presentation of unaudited interim condensed consolidating financial statements below reflects the effective date for accounting purposes of January 1, 2016.

~~Table of Contents~~

~~Condensed Consolidating Balance Sheets~~

As of September 30, 2017

Parent

Guarantors

Non-Guarantors

Eliminations

Consolidated

(in thousands)

Assets

Cash and cash equivalents
$ 101,061 $ 18,124 $ 53,738 $ — $ 172,923
Other current assets
47,514 51,190 40,283 (575
)
138,412
Properties, plants, and equipment - net
1,964 1,248,762 774,881 — 2,025,607
Intercompany receivable (payable)
461,542 (222,677
)
(351,019
)
112,154 —
Investments in subsidiaries
1,491,449 — — (1,491,449
)
—
Other non-current assets
6,321 199,794 6,906 (153,780
)
59,241
Total assets
$ 2,109,851 $ 1,295,193 $ 524,789 $ (1,533,650
)
$ 2,396,183
Liabilities and Stockholders' Equity

Current liabilities
$ 46,720 $ 56,189 $ 38,183 $ (25,295
)
$ 115,797
Long-term debt
501,917 3,115 4,321 — 509,353
Non-current portion of accrued reclamation
— 61,964 18,794 — 80,758
Non-current deferred tax liability
— 13,349 126,280 (16,906
)
122,723
Other non-current liabilities
48,273 5,363 975 — 54,611
Shareholders' equity
1,512,941 1,155,213 336,236 (1,491,449
)
1,512,941
Total liabilities and stockholders' equity
$ 2,109,851 $ 1,295,193 $ 524,789 $ (1,533,650
)
$ 2,396,183

~~Table of Contents~~

As of December 31, 2016

Parent

Guarantors

Non-Guarantors

Eliminations

Consolidated

(in thousands)

Assets

Cash and cash equivalents
$ 113,275 $ 24,388 $ 32,114 $ — $ 169,777
Other current assets
33,950 52,400 35,537 (573
)
121,314
Properties, plants, and equipment - net
2,103 1,258,890 771,692 — 2,032,685
Intercompany receivable (payable)
404,121 (222,072
)
(307,018
)
124,969 —
Investments in subsidiaries
1,496,787 — — (1,496,787
)
—
Other non-current assets
4,186 199,957 5,337 (161,579
)
47,901
Total assets
$ 2,054,422 $ 1,313,563 $ 537,662 $ (1,533,970
)
$ 2,371,677
Liabilities and Stockholders' Equity

Current liabilities
$ 22,401 $ 86,730 $ 40,093 $ (22,999
)
$ 126,225
Long-term debt
500,979 3,065 2,773 — 506,817
Non-current portion of accrued reclamation
— 63,025 16,902 — 79,927
Non-current deferred tax liability
— 14,212 122,855 (14,212
)
122,855
Other non-current liabilities
51,198 5,108 (325
)
28 56,009
Stockholders' equity
1,479,844 1,141,423 355,364 (1,496,787
)
1,479,844
Total liabilities and stockholders' equity
$ 2,054,422 $ 1,313,563 $ 537,662 $ (1,533,970
)
$ 2,371,677

~~Table of Contents~~

~~Condensed Consolidating Statements of Operations~~

Three Months Ended September 30, 2017

Parent

Guarantors

Non-Guarantors

Eliminations

Consolidated

(in thousands)

Revenues
$ (626
)
$ 61,887 $ 79,578 $ — $ 140,839
Cost of sales
687 (29,320
)
(39,725
)
— (68,358
)
Depreciation, depletion, amortization
— (12,607
)
(16,237
)
— (28,844
)
General and administrative
(4,217
)
(4,464
)
(848
)
— (9,529
)
Exploration and pre-development
(129
)
(4,339
)
(4,544
)
— (9,012
)
Research and development
— (1,130
)
— — (1,130
)
Loss on derivative contracts
(11,226
)
— — — (11,226
)
Foreign exchange gain (loss)
12,153 — (16,917
)
— (4,764
)
Lucky Friday suspension-related costs
— (4,780
)
— — (4,780
)
Equity in earnings of subsidiaries
(6,271
)
— — 6,271 —
Other (expense) income
11,041 1,202 (4,676
)
(14,752
)
(7,185
)
Income (loss) before income taxes
1,412 6,449 (3,369
)
(8,481
)
(3,989
)
(Provision) benefit from income taxes
— (1,338
)
(8,013
)
14,752 5,401
Net income (loss)
1,412 5,111 (11,382
)
6,271 1,412
Preferred stock dividends
(138
)
— — — (138
)
Income (loss) applicable to common shareholders
1,274 5,111 (11,382
)
6,271 1,274
Net income (loss)
1,412 5,111 (11,382
)
6,271 1,412
Changes in comprehensive income (loss)
7,636 — 1,022 (1,022
)
7,636
Comprehensive income (loss)
$ 9,048 $ 5,111 $ (10,360
)
$ 5,249 $ 9,048

~~Table of Contents~~

Nine Months Ended September 30, 2017

Parent

Guarantors

Non-Guarantors

Eliminations

Consolidated

(in thousands)

Revenues
$ (3,912
)
$ 215,184 $ 206,390 $ — $ 417,662
Cost of sales
353 (112,908
)
(111,982
)
— (224,537
)
Depreciation, depletion, amortization
— (41,875
)
(41,490
)
— (83,365
)
General and administrative
(16,407
)
(10,877
)
(1,760
)
— (29,044
)
Exploration and pre-development
(439
)
(8,736
)
(12,508
)
— (21,683
)
Research and development
— (2,125
)
— — (2,125
)
Loss on derivative contracts
(16,548
)
— — — (16,548
)
Foreign exchange gain (loss)
22,286 (43
)
(33,152
)
— (10,909
)
Lucky Friday suspension-related costs
— (14,385
)
— — (14,385
)
Equity in earnings of subsidiaries
(5,925
)
— — 5,925 —
Other (expense) income
24,822 (1,207
)
(14,146
)
(38,682
)
(29,213
)
Income (loss) before income taxes
4,230 23,028 (8,648
)
(32,757
)
(14,147
)
(Provision) benefit from income taxes
— (9,239
)
(11,066
)
38,682 18,377
Net income (loss)
4,230 13,789 (19,714
)
5,925 4,230
Preferred stock dividends
(414
)
— — — (414
)
Income (loss) applicable to common shareholders
3,816 13,789 (19,714
)
5,925 3,816
Net income (loss)
4,230 13,789 (19,714
)
5,925 4,230
Changes in comprehensive income (loss)
13,718 — 1,780 (1,780
)
13,718
Comprehensive income (loss)
$ 17,948 $ 13,789 $ (17,934
)
$ 4,145 $ 17,948

~~Table of Contents~~

Three Months Ended September 30, 2016

Parent

Guarantors

Non-Guarantors

Eliminations

Consolidated

(in thousands)

Revenues
$ (4,072
)
$ 116,016 $ 67,449 $ — $ 179,393
Cost of sales
— (58,844
)
(31,685
)
— (90,529
)
Depreciation, depletion, amortization
— (19,036
)
(11,143
)
— (30,179
)
General and administrative
(5,355
)
(5,469
)
(331
)
— (11,155
)
Exploration and pre-development
(33
)
(1,343
)
(3,033
)
— (4,409
)
Gain on derivative contracts
7 — — — 7
Acquisition costs
(1,766
)
1 — — (1,765
)
Equity in earnings of subsidiaries
52,606 — — (52,606
)
—
Other expense
(15,597
)
1,187 1,211 7,078 (6,121
)
Income (loss) before income taxes
25,790 32,512 22,468 (45,528
)
35,242
(Provision) benefit from income taxes
— (8,994
)
6,621 (7,080
)
(9,453
)
Net income (loss)
25,790 23,518 29,089 (52,608
)
25,789
Preferred stock dividends
(138
)
— — — (138
)
Income (loss) applicable to common shareholders
25,652 23,518 29,089 (52,608
)
25,651
Net income (loss)
25,790 23,518 29,089 (52,608
)
25,789
Changes in comprehensive income (loss)
(615
)
— 985 (985
)
(615
)
Comprehensive income (loss)
$ 25,175 $ 23,518 $ 30,074 $ (53,593
)
$ 25,174

~~Table of Contents~~

Nine Months Ended September 30, 2016

Parent

Guarantors

Non-Guarantors

Eliminations

Consolidated

(in thousands)

Revenues
$ (15,866
)
$ 285,277 $ 212,301 $ — $ 481,712
Cost of sales
— (154,160
)
(95,002
)
— (249,162
)
Depreciation, depletion, amortization
— (49,521
)
(35,071
)
— (84,592
)
General and administrative
(17,069
)
(13,671
)
(988
)
— (31,728
)
Exploration and pre-development
(191
)
(3,990
)
(7,465
)
— (11,646
)
Acquisition costs
(2,160
)
(7
)
— — (2,167
)
Equity in earnings of subsidiaries
68,727 — — (68,727
)
—
Other (expense) income
15,844 8,147 (43,039
)
(11,481
)
(30,529
)
Income (loss) before income taxes
49,285 72,075 30,736 (80,208
)
71,888
(Provision) benefit from income taxes
— (22,213
)
(11,871
)
11,481 (22,603
)
Net income (loss)
49,285 49,862 18,865 (68,727
)
49,285
Preferred stock dividends
(414
)
— — — (414
)
Income (loss) applicable to common shareholders
48,871 49,862 18,865 (68,727
)
48,871
Net income (loss)
49,285 49,862 18,865 (68,727
)
49,285
Changes in comprehensive income (loss)
1,689 8 3,238 (3,246
)
1,689
Comprehensive income (loss)
$ 50,974 $ 49,870 $ 22,103 $ (71,973
)
$ 50,974

~~Condensed Consolidating Statements of Cash Flows~~

Nine Months Ended September 30, 2017

Parent

Guarantors

Non-Guarantors

Eliminations

Consolidated

Cash flows from operating activities
$ 35,764 $ 41,071 $ 21,435 $ (24,155
)
$ 74,115
Cash flows from investing activities:

Additions to properties, plants, and equipment
— (28,220
)
(42,170
)
— (70,390
)
Other investing activities, net
176 6,903 (584
)
(5,339
)
1,156
Cash flows from financing activities:

Dividends paid to shareholders
(3,392
)
— — — (3,392
)
Proceeds from (payments on) debt
— (4,518
)
(1,017
)
— (5,535
)
Other financing activity, net
(44,762
)
(21,500
)
42,909 29,494 6,141
Effect of exchange rates on cash
— — 1,051 — 1,051
Changes in cash and cash equivalents
(12,214
)
(6,264
)
21,624 — 3,146
Beginning cash and cash equivalents
113,275 24,388 32,114 — 169,777
Ending cash and cash equivalents
$ 101,061 $ 18,124 $ 53,738 $ — $ 172,923

~~Table of Contents~~

Nine Months Ended September 30, 2016

Parent

Guarantors

Non-Guarantors

Eliminations

Consolidated

(in thousands)

Cash flows from operating activities
$ 14,525 $ 51,599 $ 61,710 $ 45,280 $ 173,114
Cash flows from investing activities:

Additions to properties, plants, and equipment
(348
)
(71,265
)
(48,623
)
— (120,236
)
Acquisitions of other companies, net of cash acquired
(3,931
)
— — (3,931
)
Other investing activities, net
(24,696
)
(816
)
(3,647
)
— (29,159
)
Cash flows from financing activities:

Dividends paid to shareholders
(3,296
)
— — — (3,296
)
Proceeds from (payments on) debt
— (7,477
)
(658
)
— (8,135
)
Other financing activity, net
33,335 24,522 (8,926
)
(45,280
)
3,651
Effect of exchange rates on cash
— — 627 — 627
Changes in cash and cash equivalents
15,589 (3,437
)
483 — 12,635
Beginning cash and cash equivalents
94,167 42,692 18,350 — 155,209
Ending cash and cash equivalents
$ 109,756 $ 39,255 $ 18,833 $ — $ 167,844

~~Item 2.~~ ~~Management's Discussion and Analysis of Financial Condition and Results of Operations~~

Certain statements contained in this Form 10-Q, including in ~~Management~~’sManagement’s Discussion and Analysis of Financial Condition and Results of Operations and Quantitative and Qualitative ~~Disclosure~~Disclosures About Market Risk, are intended to be covered by the safe harbor provided for under Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Our forward-looking statements include our current expectations and projections about future results, performance, results of litigation, prospects and opportunities, including reserves and other mineralization. We have tried to identify these forward-looking statements by using words such as “may,” “will,” “expect,” “anticipate,” “believe,” “intend,” “feel,” “plan,” “estimate,” “project,” “forecast” and similar expressions. These forward-looking statements are based on information currently available to us and are expressed in good faith and believed to have a reasonable basis. However, our forward-looking statements are subject to a number of risks, uncertainties and other factors that could cause our actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements.

These risks, uncertainties and other factors include, but are not limited to, those set forth under Part I, Item 1A. – ~~Business –~~ Risk Factors in our ~~annual report filed on~~2022 Form ~~10-K for the year ended December 31, 2016.~~10-K. Given these risks and uncertainties, readers are cautioned not to place undue reliance on our forward-looking statements. All subsequent written and oral forward-looking statements attributable to Hecla Mining Company or to persons acting on our behalf are expressly qualified in their entirety by these cautionary statements. Except as required by federal securities laws, we do not intend to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

~~Overview~~19

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

In this Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”), “Hecla,” “the Company,” “we,” “us” and “our” refer to Hecla Mining Company and its consolidated subsidiaries, except where the context requires otherwise. You should read this discussion in conjunction with our ~~subsidiaries have provided precious~~consolidated financial statements, the related MD&A and ~~base metals to~~ the ~~U.S. and worldwide since 1891. We discover, acquire, develop, produce and market silver, gold, lead and zinc.~~

~~Table of Contents~~

We produce lead, zinc and bulk concentrates, which we sell to custom smelters and brokers, and unrefined precipitate and bullion bars (doré) containing gold and silver, which are further refined before sale to precious metals traders. ~~We are organized into four segments that encompass our operating and development units: Greens Creek, Lucky Friday, Casa Berardi, and San Sebastian. The map below shows the locations~~discussion of our Business and Properties in our 2022 Form 10-K filed with the United States Securities and Exchange Commission (the “SEC”). The results of operations reported and summarized below are not necessarily indicative of future operating ~~units,~~results (refer to “Forward-Looking Statements” above for further discussion). References to “Notes” are Notes included in our ~~exploration and pre-development projects, and our corporate offices located in Coeur d'Alene, Idaho and Vancouver, British Columbia.~~

~~Our current business strategy is to focus our financial and human resources in the following areas:~~

~~operating our properties safely, in an environmentally responsible manner, and cost-effectively;~~

~~continuing to optimize and improve operations at each of our units;~~

~~expanding our proven and probable reserves and production capacity at our operating properties;~~

~~conducting our business with financial stewardship to preserve our financial position in varying metals price environments;~~

advancing permitting of the Rock Creek and Montanore projects. We acquired Rock Creek as part of the acquisition of Revett Mining Company, Inc. ("Revett") in June 2015, and we acquired Montanore through the acquisition of Mines Management, Inc. ("Mines Management") in September 2016;

maintaining and investing in exploration and pre-development projects in the vicinities of six mining districts and projects we believe to be under-explored and under-invested: North Idaho's Silver Valley in the historic Coeur d'Alene Mining District; our Greens Creek unit on Alaska's Admiralty Island located near Juneau; the silver-producing district near Durango, Mexico; the Abitibi region of northwestern Quebec, Canada; the Rock Creek and Montanore projects in northwestern Montana; and the Creede district of Southwestern Colorado; and

~~continuing to seek opportunities to acquire or invest in mining properties and companies.~~

~~Table of Contents~~

~~A number of key factors may impact the execution of our strategy, including regulatory issues and metals prices. Metals prices can be very volatile. As discussed in the~~ ~~Critical Accounting Estimates~~ section below, metals prices are influenced by a number of factors beyond our control. Average market prices of silver and gold were slightly lower, with prices for lead and zinc higher, in the first nine months of 2017 compared to the same period last year, as illustrated by the table in ~~Results of Operations~~ below. While we believe current global economic and industrial trends could result in continued demand for the metals we produce, prices have been volatile and there can be no assurance that current prices will continue.

The total principal amount of our Senior Notes due May 1, 2021 is $506.5 million and they bear interest at a rate of 6.875% per year. The net proceeds from the Senior Notes were primarily used for the acquisition of Aurizon in June 2013 (see ~~Note 9~~ of Notes to Condensed Consolidated Financial Statements (Unaudited)). ~~As discussed~~Throughout MD&A, all references to losses or income per share are on a diluted basis.

Overview

Established in 1891, we are the oldest operating precious metals mining company in the ~~Financial Liquidity~~United States. We are the largest silver producer in the United States, producing over 45% of the U.S. silver production at our Greens Creek and ~~Capital Resources~~ ~~section below,~~Lucky Friday operations. We produce gold at our Casa Berardi and Greens Creek operations. In addition, we are developing the Keno Hill mine in the Yukon Territory, Canada which we acquired on September 7, 2022. We began ramp-up of the Keno Hill mill during the second quarter of 2023. Based upon the jurisdictions in which we operate, we believe we have lower political and economic risk compared to other mining companies whose mines are located in other parts of the world. Our exploration interests are located in the United States, Canada and Mexico. Our operating and strategic framework is based on expanding our production and locating and developing new resource potential in a safe and responsible manner.

Third Quarter 2023 Highlights

Operational:

•

Produced 3.5 million ounces of silver and 39,269 ounces of gold. See Consolidated Results of Operations below for information on total cost of sales, as well as cash costs and all in sustaining costs ("AISC"), each after by-product credits, per silver and gold ounce for the three-month periods ended September 30, 2023 and 2022.

•

Keno Hill produced 0.7 million ounces of silver as ramp-up of production continued during the quarter.

•

Advanced the underground development at Keno Hill mine by 2,339 feet.

•

Closed the ATAC Resources Ltd. acquisition for total consideration of $19.4 million, of which $18.8 million was in Hecla common stock, adding an over 700 square miles land package comprised of the Rackla and Connaught properties in the Yukon Territory, Canada.

Financial:

•

Generated sales of $181.9 million.

•

Invested in our operations by making capital expenditures of approximately $55.4 million, including $12.1 million at Greens Creek, $15.5 million at Lucky Friday, $16.2 million at Casa Berardi and $11.5 million at Keno Hill.

•

Returned $3.9 million to our stockholders through dividend payments.

•

Spent $13.7 million on exploration and pre-development activities.

Year to date 2023 Highlights

Operational:

•

Produced 11.4 million ounces of silver and 114,091 ounces of gold. See Consolidated Results of Operations below for information on total cost of sales and cash costs and AISC, each after by-product credits, per silver and gold ounce for the nine-month periods ended September 30, 2023 and 2022.

•

Greens Creek increased silver production by 2% compared to the same period in 2023.

•

Keno Hill has produced 0.9 million ounces of silver as it continues to ramp-up production.

•

Advanced the underground development at Keno Hill mine by 4,541 feet.

Financial:

•

Generated sales of $559.5 million.

•

Invested in our operations by making capital expenditures of approximately $161.3 million, including $27.5 million at Greens Creek, $46.5 million at Lucky Friday, $54.1 million at Casa Berardi and $32.1 million at Keno Hill.

•

Returned $11.8 million to our stockholders through dividend payments.

•

Spent $25.5 million on exploration and pre-development activities.

External Factors that ~~we will be able~~Impact our Results

Our financial results vary as a result of fluctuations in market prices primarily for silver and gold and, to ~~meet the obligations associated~~a lesser extent, zinc and lead. World market prices for these commodities have fluctuated historically and are affected by numerous factors beyond our control. Beginning in 2020, with the Senior Notes; however, a number of factors could impact our ability to meet the debt obligations and fund our other projects. In June 2017, we announced a private offering under Rule 144A of $500 million in Senior Notes due 2025 and a concurrent tender offer to purchase our existing Senior Notes. Both the private offeringonset of the ~~notes~~COVID-19 pandemic, and continuing in 2023 because of a series of macro-economic factors, there has been significant volatility in the ~~tender offer were abandoned~~financial and commodities markets, including the precious metals market. We believe the outlook for precious metals fundamentals in ~~June 2017, as available terms~~the medium- and ~~conditions were not sufficiently attractive~~long-term are favorable. Refer to ~~us to complete the proposed transactions. Our ability to restructure or refinance our debt will depend on the condition of capital markets~~“Markets” and ~~our financial condition at such time. Any refinancing~~see Item 1A. “Risk Factors” contained in Part I of our debt could be at higher interest rates and may require us to comply with more onerous covenants, which could further restrict our business operations. There can be no assurance that we will be able to restructure or refinance our debt in the future on terms and conditions favorable to us.

On June 15, 2015, we completed the acquisition of Revett, giving us 100% ownership of the Rock Creek project, a significant undeveloped silver and copper deposit in northwestern Montana. In addition, on September 13, 2016, we completed the acquisition of Mines Management, giving us 100% ownership of the Montanore project, another significant undeveloped silver and copper deposit located approximately 10 miles from our Rock Creek project. Development of Rock Creek and Montanore has been challenged by conservation groups at various times, and there can be no assurance that we will be able to obtain the permits required to develop these projects. ~~See~~ ~~Legal challenges could prevent the Rock Creek or Montanore projects from ever being developed~~ in ~~Part I, Item 1A. – Risk Factors~~ ~~in our~~ annual report ~~filed~~ on Form 10-K for the year ended December 31, ~~2016~~2022 ("2022 Form 10-K"), for ~~more information. In May 2017,~~further discussion. Because we cannot control the ~~Montana Federal District Court issued Opinions~~price of our products, the key measures that management focuses on in operating our business are production volumes, payable sales volumes, Cash Cost, After By-product Credits, per Ounce (non-GAAP) and ~~Orders in three lawsuits challenging previously granted environmental approvals~~All-In Sustaining Cost, After By-product Credits, per Ounce (“AISC”) (non-GAAP), operating cash flows, capital expenditures, free cash flow and adjusted EBITDA. The average realized prices for all metals sold by us continued to exhibit significant volatility period over period. We have also experienced significant cost inflation across our operations, principally associated with higher energy prices, increased costs for other consumables such as reagents, explosives and steel, and higher labor and contractor costs.

Consolidated Results of Operations

Total sales for the ~~Montanore project. The Orders overturned the approvals~~three and nine months ended September 30, 2023 and 2022 were as follows:


	Three Months Ended September 30,						Nine Months Ended September 30,
(in thousands)	2023			2022			2023			2022
Silver	$	74,425		$	45,924		$	235,447		$	182,306
Gold		70,206			69,289			208,216			228,475
Lead		15,719			16,033			62,778			56,912
Zinc		33,066			28,051			91,912			94,865
Less: Smelter and refining charges		(12,550	)		(13,023	)		(40,743	)		(38,543	)
Total metal sales		180,866			146,274			557,610			524,015
Environmental remediation services		1,040			65			1,927			65
Total sales	$	181,906		$	146,339		$	559,537		$	524,080

Total metal sales for the ~~project granted by the United States Forest Service~~three and nine months ended September 30, 2023 and 2022, and the ~~United States Fish~~approximate variances attributed to differences in metals prices, sales volumes and Wildlife Service, and remanded the Record of Decision ("ROD") and associated planning documents for further review by the agencies consistent with its Opinions. In June 2017, the Court vacated the agencies' approvalssmelter terms, were as follows:


(in thousands)	Silver		Gold			Base metals			Less: smelter and refining charges			Total sales of products
Three months ended September 30, 2022	$	45,924	$	69,289		$	44,084		$	(13,023	)	$	146,274
Variances - 2023 versus 2022:
Price		13,104		7,336			8,591			760			29,791
Volume		15,397		(6,419	)		(3,890	)		(418	)		4,670
Smelter terms		—		—			—			131			131
Three months ended September 30, 2023	$	74,425	$	70,206		$	48,785		$	(12,550	)	$	180,866


(in thousands)	Silver		Gold			Base metals			Less: smelter and refining charges			Total sales of products
Nine months ended September 30, 2022	$	182,306	$	228,475		$	151,777		$	(38,543	)	$	524,015
Variances - 2023 versus 2022:
Price		18,808		11,256			(6,057	)		1,489			25,496
Volume		34,333		(31,515	)		8,970			(3,964	)		7,824
Smelter terms		—		—			—			275			275
Nine months ended September 30, 2023	$	235,447	$	208,216		$	154,690		$	(40,743	)	$	557,610

The fluctuations in sales for the ~~project. As a result, additional work~~three and nine months ended September 30, 2023 compared to the same periods in 2022 were primarily due to the following two reasons:

•

Higher average realized prices for silver, gold and lead partially offset by lower average realized prices for zinc during the three and nine month periods ended September 30, 2023, compared to the same periods in 2022.The table below summarizes spot prices and our realized prices for the commodities we sell:


		Three Months Ended September 30,				Nine Months Ended September 30,
		2023		2022		2023		2022
Silver –	London PM Fix ($/ounce)	$	23.57	$	19.22	$	23.44	$	21.94
	Realized price per ounce	$	23.71	$	18.30	$	23.28	$	21.25
Gold –	London PM Fix ($/ounce)	$	1,929	$	1,728	$	1,932	$	1,825
	Realized price per ounce	$	1,908	$	1,713	$	1,921	$	1,817
Lead –	LME Final Cash Buyer ($/pound)	$	0.99	$	0.90	$	0.97	$	0.98
	Realized price per pound	$	1.07	$	0.95	$	1.02	$	0.98
Zinc –	LME Final Cash Buyer ($/pound)	$	1.10	$	1.48	$	1.22	$	1.65
	Realized price per pound	$	1.52	$	1.23	$	1.34	$	1.47

~~As further discussed in the~~ ~~Lucky Friday Segment~~ ~~section below, the union employees~~prices at ~~Lucky Friday have been on strike since March 13, 2017. Production at Lucky Friday was suspended from the start~~which sales of ~~the strike until July 2017, with limited production by salary employees commencing at that time. We cannot predict how long the strike will last or whether an agreement~~our metals will be ~~reached.~~ settled. Previously recorded sales are adjusted to estimated settlement metals prices each period through final settlement.We ~~expect~~recorded net positive price adjustments to ~~incur cash expenditures~~provisional settlements of ~~approximately $1.0~~$8.1 million ~~to $1.5~~and $12.3 million ~~per month to advance engineering and infrastructure~~ for the ~~restart~~three and nine months ended September 30, 2023, respectively, and net negative price adjustments of ~~full production, in addition to costs~~$6.6 million and $21.5 million for the three and nine months ended September 30, 2022, respectively. The price adjustments related to ~~limited interim production. As a result of the strike or other related events, operations at Lucky Friday could continue to be disrupted, which could adversely affect~~silver, gold, zinc and lead contained in our ~~financial condition and results of operations.~~

During the third quarter of 2015, we made a development decision to mine near surface, high grade portions of silver and gold deposits at our San Sebastian project in Mexico. Ore production commenced in the fourth quarter of 2015 and has continued since that time. ~~In addition, work began in the first quarter of 2017 to develop and rehabilitate underground access which is expected to allow us to mine deeper portions of the deposits at San Sebastian. See the~~ ~~San Sebastian Segment~~ section below for more information. We have generated positive cash flows at San Sebastian since the start of production there, and we currently believe that will continue until early or mid-2020. However, our ability to generate positive cash flows at San Sebastian may be impactedconcentrate shipments were partially offset by ~~changes in costs, precious metals prices, or other factors, and there can be no assurance that we will be able to develop and operate San Sebastian as currently anticipated.~~

~~Table of Contents~~

We strive to operate our properties safely, in an environmentally responsible manner and as cost-effectively as possible. We seek to achieve safe and environmentally sound practices through extensive employee training in safe work practices; establishing, following and improving safety standards with the active participation of employees; investigating accidents, incidentsgains and losses ~~to avoid recurrence; and participation in the National Mining Association’s CORESafety program. We attempt to implement reasonable best practices~~on forward contracts for mine safety and emergency preparedness. Additionally, we work with the U.S. Mine Safety and Health Administration (“MSHA”) to address issues outlined in inspections and investigations, and continually evaluate our safety practices.

~~Another challenge for us is the risk associated with environmental litigation and ongoing reclamation activities. As described in~~ ~~Part I, Item 1A. – Risk Factors~~those metals. See Note 8 of ~~our annual report filed on Form 10-K for the year ended December 31, 2016 and~~ ~~Note 4~~ of Notes to Condensed Consolidated Financial Statements (Unaudited), ~~it is possible that our estimate~~for more information. The gains and losses on these contracts are included in revenues and impact the realized prices for silver, gold, lead and zinc. Realized prices are calculated by dividing gross revenues for each metal (which include the price adjustments and gains and losses on the forward contracts discussed above) by the payable quantities of ~~these liabilities (and our ability to estimate liabilities~~each metal included in ~~general) may change in~~concentrate, doré and carbon material shipped during the ~~future, affecting our strategic plans. We are involved in various environmental legal matters and~~period.

•

Higher quantities of silver sold during the estimate of our environmental liabilities and liquidity needs, as wells as our strategic plans, may be significantly impacted as a result of these matters or new matters that may arise. We strive to ensure that our activities are conducted in compliance with applicable laws and regulations and attempt to resolve environmental litigation on as favorable terms as possible.

~~Results of Operations~~

~~Sales of products by metal for the three- and nine-month periods~~three months ended September 30, ~~2017~~2023 and ~~2016 were as follows:~~

Three Months Ended
September 30,

Nine Months Ended
September 30,

(in thousands)

2017

2016

2017

2016

Silver
$ 43,228 $ 83,668 $ 140,662 $ 211,825
Gold
73,603 67,534 203,279 203,455
Lead
6,373 17,141 28,093 46,194
Zinc
24,327 27,469 74,692 67,840
Less: Smelter and refining charges
(6,692
)
(16,419
)
(29,064
)
(47,602
)
Sales of products
$ 140,839 $ 179,393 $ 417,662 $ 481,712

~~The $38.6 million~~higher quantities of silver, lead, and ~~$64.1 million decreases in sales~~zinc, partially offset by lower quantities of ~~products in~~gold sold during the ~~third quarter and first~~ nine months ~~of 2017, respectively,~~ended September 30, 2023 compared to the same periods ~~of 2016 are~~in 2022. This was primarily due ~~to:~~to lower gold production and related sales at Casa Berardi, partially offset by higher gold sales at Greens Creek. See The Greens Creek Segment,The Lucky Friday Segment, The Keno Hill Segment, Casa Berardi Segment and The Nevada Operations Segment sections below for more information on metal production and sales volumes at each of our operating segments. Total metals production and sales volumes for each period are shown in the following table:


		Three Months Ended September 30,				Nine Months Ended September 30,
		2023		2022		2023		2022
Silver -	Ounces produced		3,533,704		3,549,392		11,407,232		10,525,917
	Payable ounces sold		3,142,227		2,479,724		10,107,415		8,554,894
Gold -	Ounces produced		39,269		44,747		114,091		132,173
	Payable ounces sold		36,792		40,443		108,372		125,721
Lead -	Tons produced		8,024		11,600		34,583		35,794
	Payable tons sold		7,440		8,049		30,848		28,788
Zinc -	Tons produced		14,636		15,859		47,715		47,571
	Payable tons sold		10,993		11,523		34,326		32,328

•

~~Lower quantities of silver, zinc and lead sold, due to lower production of those metals and the timing of concentrate shipments at Greens Creek, partially offset by higher gold volumes. See the~~ ~~The Greens Creek Segment,~~~~The Lucky Friday Segment, The Casa Berardi Segment, and The San Sebastian Segment~~ ~~sections below for more information on metal production and sales volumes at each of our operating segments. Total metals production and sales volumes for each period are shown in the following table:~~

Three Months Ended
September 30,

Nine Months Ended
September 30,

2017

2016

2017

2016

Silver -
Ounces produced
3,323,157 4,316,663 9,500,058 13,200,765

Payable ounces sold
2,540,817 4,284,842 8,098,652 12,222,084
Gold -
Ounces produced
63,046 52,126 171,720 170,779

Payable ounces sold
57,380 50,348 161,921 161,217
Lead -
Tons produced
5,370 10,411 18,426 31,840

Payable tons sold
2,936 9,967 13,612 28,380
Zinc -
Tons produced
14,497 14,825 43,000 50,321

Payable tons sold
8,444 13,596 29,269 37,948

~~Table of Contents~~

The difference between what we report as ~~"ounces/~~“ounces/tons ~~produced"~~produced” and ~~"payable~~“payable ounces/tons ~~sold"~~sold” is attributable to the difference between the quantities of metals contained in the concentrates we produce versus the portion of those metals actually paid for by our customers according to the terms of our sales contracts. Differences can also arise from inventory changes incidental to shipping schedules, or variances in ore grades which impact the amount of metals contained in concentrates produced and sold. ~~The difference in payable quantities sold for the 2017 periods compared to 2016 is due mainly to timing of concentrate shipments, primarily at Greens Creek.~~

Lower average silver and gold prices, partially offset by higher lead and zinc prices, in the third quarter of 2017 compared to the same period in 2016. For the first nine months of 2017, average silver and gold prices varied slightly, while average lead and zinc prices were higher, compared to the same period of 2016. These price variances are illustrated in the table below.

Three Months Ended
September 30,

Nine Months Ended
September 30,

2017

2016

2017

2016

Silver –
London PM Fix ($/ounce)
$ 16.83 $ 19.62 $ 17.17 $ 17.08

Realized price per ounce
$ 17.01 $ 19.53 $ 17.37 $ 17.33
Gold –
London PM Fix ($/ounce)
$ 1,278 $ 1,335 $ 1,251 $ 1,258

Realized price per ounce
$ 1,283 $ 1,341 $ 1,255 $ 1,262
Lead –
LME Final Cash Buyer ($/pound)
$ 1.06 $ 0.85 $ 1.02 $ 0.81

Realized price per pound
$ 1.09 $ 0.86 $ 1.03 $ 0.81
Zinc –
LME Final Cash Buyer ($/pound)
$ 1.34 $ 1.02 $ 1.26 $ 0.89

Realized price per pound
$ 1.44 $ 1.01 $ 1.28 $ 0.89

Average realized prices typically differ from average market prices primarily because concentrate sales are generally recorded as revenues at the time of shipment at forward prices for the estimated month of settlement, which differ from average market prices. Due to the time elapsed between shipment of concentrates and final settlement with the customers, we must estimate the prices at which sales of our metals will be settled. Previously recorded sales are adjusted to estimated settlement metals prices each period through final settlement. For the third quarter and first nine months of 2017, we recorded net positive price adjustments to provisional settlements of $1.2 million and $0.6 million, respectively, compared to negative price adjustments to provisional settlements of $1.1 million and positive price adjustments of $0.4 million, respectively, in the third quarter and first nine months of 2016. The price adjustments related to silver, gold, lead and zinc contained in our concentrate shipments were largely offset by gains and losses on forward contracts for those metals for each period (see ~~Note 11~~ of ~~Notes to Condensed Consolidated Financial Statements (Unaudited)~~ for more information). The gains and losses on these contracts are included in revenues and impact the realized prices for silver, gold, lead and zinc. Realized prices are calculated by dividing gross revenues for each metal (which include the price adjustments and gains and losses on the forward contracts discussed above) by the payable quantities of each metal included in concentrate and doré shipped during the period.22

~~Table of Contents~~

For the third quarter and first nine months of 2017, we recorded income applicable to common shareholders of $1.3 million ($0.00 per basic common share) and $3.8 million ($0.01 per basic common share), respectively, compared to $25.7 million ($0.07 per basic common share) and $48.9 million ($0.13 per basic common share), respectively, for the third quarter and first nine months of 2016. The following factors impacted the results for the third quarter and first nine months of 2017 compared to the same periods in 2016:

•

Lower gross profit for the third quarter and first nine months of 2017 compared to the same periods in 2016 at our San Sebastian unit by $0.9 million and $13.8 million, respectively; Lucky Friday unit by $6.5 million and $8.0 million, respectively; and Greens Creek unit by $8.3 million and $1.3 million, respectively. Gross profit for the first nine months of 2017 was also lower at our Casa Berardi unit compared to 2016 by $15.2 million; however, it was higher by $0.6 million for the third quarter of 2017 compared to the same period of 2016. See ~~The Greens Creek Segment,~~~~The Lucky Friday Segment, The Casa Berardi Segment, and The San Sebastian Segment~~ ~~sections below.~~

•

Losses on base metal derivatives contracts of $11.2 million and $16.5 million, respectively, in the third quarter and first nine months of 2017, with no net activity on base metal derivative contracts for the third quarter and first nine months of 2016. See ~~Note 11~~ of ~~Notes to Condensed Consolidated Financial Statements (Unaudited)~~ ~~for more information.~~

Lucky Friday suspension costs of $4.8 million and $14.4 million in the third quarter and first nine months of 2017, respectively. These costs, which include $1.1 million and $3.3 million in non-cash depreciation expense, were incurred during the suspension of full production resulting from the strike, which started in March 2017.

Higher interest expense by $3.8 million and $11.8 million in the third quarter and first nine months of 2017, respectively, compared to the same periods of 2016. Interest expense in the first nine months of 2017 and 2016 was net of $0.9 million and $12.0 million, respectively, in capitalized interest primarily related to the #4 Shaft project, with the decrease due to completion of the #4 Shaft in January 2017. In addition, interest expense for the nine months ended September 30, 2017 included $0.9 million in costs related to our proposed private offering of new Senior Notes in June 2017 and concurrent tender offer to purchase our existing Senior Notes, which were not completed.

Exploration and pre-development expense increased by $4.6 million and $10.0 million, respectively, in the third quarter and first nine months of 2017 compared to the same periods in 2016. In 2017, we have continued exploration work at our Greens Creek, San Sebastian and Casa Berardi units, and at our other projects in Quebec, Canada. "Pre-development expense" is defined as costs incurred in the exploration stage that may ultimately benefit production, such as underground ramp development, which are expensed due to the lack of proven and probable reserves. Pre-development expense of $1.8 million and $4.1 million in the third quarter and first nine months of 2017, respectively, was related to advancement of our Montanore and Rock Creek projects.

Net foreign exchange losses in the third quarter and first nine months of 2017 of $4.8 million and $10.9 million, respectively, versus a net gain of $2.4 million in the third quarter of 2016 and net loss of $7.7 million in the first nine months of 2016. The variances are primarily related to the impact of changes in the CAD-to-USD exchange rate on the remeasurement of our net monetary liabilities in Quebec. During the first nine months of 2017, the applicable CAD-to-USD exchange rate decreased from 1.3426 to 1.2480, compared to a decrease in the rate from 1.3841 to 1.3116 during the first nine months of 2016.

~~Research and development expense of~~ ~~$1.1 million and $2.1 million in the third quarter and first nine months of 2017, respectively, related to evaluation and development of technologies that would be new to our operations.~~

~~Lower general and administrative expense by~~ ~~$1.6 million and $2.7 million, respectively, for the third quarter and first nine months of 2017 compared to the same periods of 2016 primarily due to lower accruals for incentive compensation.~~

~~Gain on disposal of properties, plants, equipment and mineral interests of~~ ~~$4.8 million recognized in the third quarter of 2017 primarily related to insurance proceeds received for collapse of the mill building at the Troy mine in February 2017 due to snow.~~

•

Income tax benefits of $5.4 million and $18.4 million, in the third quarter and first nine months of 2017, respectively, compared to provisions of $9.5 million of $22.6 million, respectively, in the comparable 2016 periods. The benefit for the first nine months of 2017 includes a benefit from a change in income tax position recognized in the first quarter of 2017 relating to the timing of deduction for #4 Shaft development costs at Lucky Friday. See ~~Corporate Matters~~ ~~below for more information.~~

~~Table of Contents~~

~~The Greens Creek Segment~~

Dollars are in thousands (except per ounce and per ton amounts)

Three Months Ended
September 30,

Nine Months Ended
September 30,

2017

2016

2017

2016

Sales
$ 61,061 $ 85,804 $ 191,250 $ 199,260
Cost of sales and other direct production costs
(29,320
)
(42,306
)
(100,799
)
(106,238
)
Depreciation, depletion and amortization
(12,607
)
(16,091
)
(39,442
)
(40,746
)
Cost of sales and other direct production costs and depreciation, depletion and amortization
(41,927
)
(58,397
)
(140,241
)
(146,984
)
Gross profit
$ 19,134 $ 27,407 $ 51,009 $ 52,276
Tons of ore milled
219,983 202,523 627,900 610,879
Production:

Silver (ounces)
2,344,315 2,445,328 6,205,659 7,020,688
Gold (ounces)
12,563 11,988 39,289 39,497
Zinc (tons)
14,325 12,144 40,697 42,330
Lead (tons)
4,851 4,803 14,080 15,236
Payable metal quantities sold:

Silver (ounces)
1,569,092 2,603,165 4,930,946 6,370,660
Gold (ounces)
7,862 12,364 30,920 35,883
Zinc (tons)
8,445 11,318 27,582 31,370
Lead (tons)
2,935 4,710 10,015 12,580
Ore grades:

Silver ounces per ton
13.65 15.40 12.84 14.61
Gold ounces per ton
0.09 0.09 0.10 0.10
Zinc percent
7.47 6.86 7.49 7.90
Lead percent
2.77 2.92 2.83 3.05
Mining cost per ton
$ 69.46 $ 69.66 $ 69.64 $ 69.20
Milling cost per ton
$ 31.01 $ 31.55 $ 32.38 $ 31.07
Total Cash Cost, After By-product Credits, Per Silver Ounce ⁽¹⁾
$ (0.15
)
$ 4.80 $ 0.73 $ 4.68
All-In Sustaining Costs ("AISC"), After By-Product Credits, per Silver Ounce ⁽¹⁾
$ 4.47 $ 11.02 $ 5.60 $ 10.18

~~(1)~~

~~A reconciliation of these non-GAAP measures to~~Sales, total cost of sales, ~~and other direct production costs and depreciation, depletion and amortization, the most comparable GAAP measure, can be found below in~~ Reconciliation of Cost of Sales and Other Direct Production Costs and Depreciation, Depletion and Amortization (GAAP) to Cash Cost, Before By-product Credits and Cash Cost, After By-product Credits (non-GAAP) and All-In Sustaining Cost, Before By-product Credits and All-In Sustaining Cost, After By-product Credits (non-GAAP).

~~Table of Contents~~

~~The $8.3 million and $1.3 million decreases in~~ gross profit during the third quarter and first nine months of 2017, respectively, compared to the same 2016 periods were primarily a result of lower metals sales volumes due to the timing of concentrate shipments and lower silver ore grades and recoveries, partially offset by higher mill throughput. As a result of differences in the timing of shipments, there were 13,822 tons of concentrate in inventory, including 5,991 tons of higher-valued lead concentrate, having a value of approximately $26.1 million and cost of $15.2 million at September 30, 2017, compared to 3,617 tons (including 1,355 tons of lead concentrate) having a value of approximately $4.7 million and cost of $3.9 million at September 30, 2016. Results for the third quarter of 2017 were also impacted by lower average realized prices for silver and gold, partially offset by higher prices for zinc and lead, compared to the third quarter of 2016. For the first nine months of 2017, silver and gold prices varied only slightly, while prices for zinc and lead were higher, compared to 2016. Gross profit at Greens Creek was affected by positive price adjustments to revenues of $1.0 million and $0.5 million for the third quarter and first nine months of 2017, respectively, compared to negative price adjustments of $1.0 million and positive price adjustments of $0.3 million for the third quarter and first nine months of 2016, respectively. Price adjustments to revenues result from changes in metals prices between transfer of title of concentrates to buyers and final settlements during the period. The price adjustments related to silver, gold, zinc and lead contained in concentrate shipments were net of gains and losses on forward contracts for those metals for each period. The price adjustments and gains and losses on forward contracts discussed above are included in sales.

Mining costs per ton stayed relatively constant for the third quarter and first nine months of 2017 compared to the same periods in 2016. Milling costs per ton decreased 2% in the third quarter of 2017 compared to the same period in 2016 mainly due to higher tonnage. Milling costs per ton increased 4% for the first nine months of 2017 compared to the same period in 2016 due to an increase in power costs, partially offset by higher tonnage.

The chart below illustrates the factors contributing to the variances in Cash Cost, After By-product Credits, Per Silver Ounce for the third quarter and first nine months of 2017 versus the same periods in 2016:

~~The following table summarizes the components of~~(loss), Cash Cost, After By-product Credits, per ~~Silver Ounce:~~Ounce (“Cash Cost”) (non-GAAP) and AISC (non-GAAP) at our operating units for the three and nine months ended September 30, 2023 and 2022 were as follows (in thousands, except for Cash Cost and AISC):


	Silver												Gold
	Greens Creek			Lucky Friday			Keno Hill			Total Silver (2)			Casa Berardi			Nevada Operations and Other (3)			Total Gold
Three Months Ended September 30, 2023:
Sales	$	96,459		$	21,409		$	16,001		$	133,869		$	46,912		$	1,125		$	48,037
Total cost of sales		(60,322	)		(14,344	)		(16,001	)		(90,667	)		(56,822	)		(940	)		(57,762	)
Gross profit (loss)	$	36,137		$	7,065		$	—		$	43,202		$	(9,910	)	$	185		$	(9,725	)
Cash Cost (1)	$	3.04		$	4.74		$	—		$	3.31		$	1,475		$	—		$	1,475
AISC (1)	$	8.18		$	10.63		$	—		$	11.39		$	1,695		$	—		$	1,695
Three Months Ended September 30, 2022:
Sales	$	60,875		$	28,460		$	—		$	89,335		$	56,939		$	65		$	57,004
Total cost of sales		(52,502	)		(24,164	)		—			(76,666	)		(59,532	)		(1,694	)		(61,226	)
Gross profit (loss)	$	8,373		$	4,296		$	—		$	12,669		$	(2,593	)	$	(1,629	)	$	(4,222	)
Cash Cost (1)	$	2.65		$	5.23		$	—		$	3.43		$	1,349		$	—		$	1,349
AISC (1)	$	7.07		$	15.98		$	—		$	12.93		$	1,669		$	—		$	1,669


	Silver												Gold
	Greens Creek			Lucky Friday			Keno Hill			Total Silver (2)			Casa Berardi			Nevada Operations and Other (3)			Total Gold
Nine Months Ended September 30, 2023
Sales	$	290,961		$	113,167		$	17,582		$	421,710		$	134,856		$	2,971		$	137,827
Total cost of sales		(189,664	)		(81,068	)		(17,582	)		(288,314	)		(162,396	)		(2,743	)		(165,139	)
Gross profit	$	101,297		$	32,099		$	—		$	133,396		$	(27,540	)	$	228		$	(27,312	)
Cash Cost (1)	$	1.81		$	5.51		$	—		$	2.86		$	1,635		$	—		$	1,635
AISC (1)	$	5.67		$	12.21		$	—		$	10.52		$	2,075		$	—		$	2,075
Nine Months Ended September 30, 2022
Sales	$	239,688		$	102,380		$	—		$	342,068		$	181,679		$	333			182,012
Total cost of sales		(162,644	)		(83,779	)		—			(246,423	)		(183,570	)		(2,948	)		(186,518	)
Gross profit	$	77,044		$	18,601		$	—		$	95,645		$	(1,891	)	$	(2,615	)	$	(4,506	)
Cash Cost (1)	$	(0.49	)	$	4.77		$	—		$	1.11		$	1,409		$	—		$	1,409
AISC (1)	$	4.02		$	12.86		$	—		$	9.49		$	1,678		$	—		$	1,678

Three Months Ended
September 30,

Nine Months Ended
September 30,

2017

2016

2017

2016

Cash Cost, Before By-product Credits, per Silver Ounce
$ 20.75 $ 20.15 $ 22.94 $ 20.88
By-product credits
(20.90
)
(15.35
)
(22.21
)
(16.20
)
Cash Cost, After By-product Credits, per Silver Ounce
$ (0.15
)
$ 4.80 $ 0.73 $ 4.68

(1)

~~Table~~A reconciliation of ~~Contents~~

~~The following table summarizes~~these non-GAAP measures to total cost of sales, the ~~components~~most comparable GAAP measure, can be found below in Reconciliation of ~~AISC, After~~Total Cost of Sales (GAAP) to Cash Cost, Before By-product Credits ~~per Silver Ounce:~~

Three Months Ended
September 30,

Nine Months Ended
September 30,

2017

2016

2017

2016

AISC, Before By-product Credits, per Silver Ounce
$ 25.37 $ 26.37 $ 27.81 $ 26.38
By-product credits
(20.90
)
(15.35
)
(22.21
)
(16.20
)
AISC, After By-product Credits, per Silver Ounce
$ 4.47 $ 11.02 $ 5.60 $ 10.18

~~The decrease in~~and Cash Cost, After By-product Credits ~~per Silver Ounce~~(non-GAAP) and All-In Sustaining Cost, Before By-product Credits and All-In Sustaining Cost, After By-product Credits (non-GAAP).

~~By-product credits per ounce were higher in the third quarter and first nine months of 2017 compared to 2016 due to higher zinc and lead prices.~~

The difference between what we report as "production" and "payable metal quantities sold" is attributable to the difference between the quantities of metals contained in the concentrates we produce versus the portion of those metals actually paid for by our customers according to the terms of our sales contracts. Differences can also arise from inventory changes incidental to shipping schedules, or variances in ore grades which impact the amount of metals contained in concentrates produced and sold. The difference in payable quantities sold for 2017 compared to 2016 is due mainly to timing of concentrate shipments.

While revenue from zinc, lead and gold by-products is significant, we believe that identification of silver as the primary product of ~~the~~ Greens Creek, ~~unit~~Lucky Friday and Keno Hill is appropriate because:

~~Likewise,~~Accordingly, we believe the identification of gold, lead and zinc as by-product credits at Greens Creek, Lucky Friday and Keno Hill is appropriate because of their lower economic value compared to silver and due to the fact that silver is the primary product we intend to ~~produce.~~produce at those locations. In addition, we dohave not ~~receive~~consistently received sufficient revenue from any single by-product metal to warrant classification of such as a co-product.

We periodically review our revenues to ensure that reporting of primary products and by-products is appropriate. Because for Greens Creek, Lucky Friday and Keno Hill we consider zinc, lead and gold to be by-products of our silver production, the values of these metals offset operating costs within our calculations of Cash Cost, After By-product Credits, per Silver Ounce and AISC, After By-product Credits, per Silver Ounce.

Gross profit decreased by $6.5 million and $8.0 million in the third quarter and first nine months of 2017, respectively, compared to the same periods in 2016. The $0.2 million in sales reported for the third quarter of 2017 represents gains on base metal derivatives contracts. Although there was limited concentrate production during the third quarter of 2017, we have opted to defer shipments until a later period. There were 1,489 tons of concentrate in inventory at September 30, 2017. The variance in gross profit for the first nine months of 2017 was primarily due to reduced metal production resulting from the strike by unionized employees starting in mid-March 2017, discussed further below, and the lack of concentrate shipments during the third quarter. Silver and lead production was also impacted by lower ore grades in the first quarter of 2017. These factors were partially offset by higher average realized silver, lead and zinc prices realized during the first quarter of 2017, prior to the strike.

Mining cost per ton was higher by 13% in the first nine months of 2017 compared to the same periods in 2016 due primarily to lower tonnage as a result of the strike discussed below. Milling cost per ton was lower by 7% in the first nine months of 2017 compared to 2016. Mining and milling cost per ton for the third quarter of 2017 are not indicative of future operating results under full production, as there was reduced mill throughput during the quarter. The mill was idle for most of the third quarter of 2017, and only operated when the limited mine production provided a sufficient ore stockpile. In addition, costs not directly related to mining and processing ore have been classified as suspension costs during the strike period, and excluded from the calculations of mining and milling cost per ton for the third quarter and first nine months of 2017.

~~The following table summarizes the components of Cash Cost, After By-product Credits, per Silver Ounce:~~

~~The following table summarizes the components of AISC, After By-product Credits, per Silver Ounce:~~

The increase in Cash Cost, After By-product Credits, per Silver Ounce in the third quarter was the result of lower silver production due to the strike. The decrease in Cash Cost, After By-product Credits, per Silver Ounce for the first nine months of 2017 compared to the same period in 2016 was due to higher by-product credits due to higher lead and zinc prices, partially offset by lower silver production. The decrease in AISC, After By-product Credits, per Silver Ounce in the third quarter and first nine months of 2017 was the result of lower capital costs primarily as a result of completion of the #4 Shaft project in January 2017 and higher by-product credits, partially offset by lower silver production. During the strike period, only costs directly related to the limited production are included in the calculations of Cash Cost, After By-product Credits and AISC, After By-product Credits, per Silver Ounce, and suspension-related costs are excluded from those calculations.

Similar to the Greens Creek segment, the difference between what we report as “production” and “payable metal quantities sold” is due to the difference between the quantities of metals contained in the concentrates we produce versus the portion of those metals actually paid for by our customers according to the terms of our sales contracts.

~~While value from lead and zinc is significant, we believe that identification of silver as the primary product of the Lucky Friday unit is appropriate because:~~

Likewise, we believe the identification of lead and zinc as by-product credits is appropriate because of their lower economic value compared to silver and due to the fact that silver is the primary product we intend to produce. In addition, we do not receive sufficient revenue from any single by-product metal to warrant classification of such as a co-product.

We periodically review our revenues to ensure that reporting of primary products and by-products is appropriate. Because we consider zinc and lead to be by-products of our silver production, the values of these metals offset operating costs within our calculations of Cash Cost, After By-product Credits, per Silver Ounce.

Many of the employees at our Lucky Friday unit are represented by a union, and the most recent collective bargaining agreement with the union expired on April 30, 2016. On February 19, 2017, the unionized employees voted against our contract offer. On March 13, 2017, the unionized employees went on strike, and have been on strike since that time. Production at Lucky Friday was suspended from the start of the strike, until limited production by salary personnel commenced in July 2017. Suspension costs during the strike totaled $3.7 million and $11.1 million in the third quarter and first nine months of 2017, respectively. These costs are combined with non-cash depreciation expense of $1.1 million and $3.3 million for those periods and reported in a separate line item on our condensed consolidated statement of operations. These suspension costs are excluded from the calculation of gross profit, Cash Cost, After By-product Credits, per Silver Ounce and AISC, After By-product Credits, per Silver Ounce. We cannot predict how long the strike will last or whether an agreement will be reached. As a result of the strike or other related events, operations at Lucky Friday could continue to be disrupted, which could adversely affect our financial condition and results of operations.

~~See~~ ~~Note 4~~ of ~~Notes to Condensed Consolidated Financial Statements (Unaudited)~~ ~~for contingencies related to various events occurring at the Lucky Friday mine in prior periods.~~

Gross profit increased by $0.6 million and decreased by $15.2 million for the third quarter and first nine months of 2017, respectively, compared to the same periods in 2016. The increase for the third quarter was primarily due to increased gold production due to higher ore throughput and gold grades, partially offset by lower gold prices. The decrease in gross profit for the first nine months of 2017 compared to 2016 was primarily due to lower ore grades and higher stripping costs in the first half of the year, partially offset by higher ore throughput. The lower grades were due to the addition of production from the East Mine Crown Pillar ("EMCP") pit, which commenced in July 2016, and underground mine sequencing. The increase in ore throughput was also a result of the addition of the EMCP pit. Grades improved in the third quarter of 2017 as higher-grade areas of the underground mine become available for production, and we expect the higher grades to continue in the fourth quarter of 2017.

Mining costs per ton were lower by 10% and 9% and milling unit costs decreased by 10% and 14% in the third quarter and first nine months of 2017, respectively, compared to the same periods in 2016 due primarily to higher ore production.

~~The chart below illustrates the factors contributing to Cash Cost, After By-product Credits, Per Gold Ounce for the third quarter and first nine months of 2017 and 2016:~~

~~The following table summarizes the components of Cash Cost, After By-product Credits, per Gold Ounce:~~

~~The following table summarizes the components of AISC, After By-product Credits, per Gold Ounce:~~

The decrease in Cash Cost, After By-product Credits, per Gold Ounce for the third quarter of 2017 compared to the same period of 2016 was primarily due to higher gold production. AISC, After By-product Credits, per Gold Ounce was also lower in the third quarter of 2017 compared to the third quarter of 2016 due to the higher gold production, along with lower capital spending. The increase in Cash Cost, After By-product Credits, per Gold Ounce for the first nine months of 2017 compared to 2016 was primarily the result of higher stripping costs in the first half of the year, partially offset by higher gold production. AISC, After By-product Credits, per Gold Ounce was lower for the first nine months of 2017 compared to 2016 due to lower capital spending and higher gold production, partially offset by the increased stripping in the first half of the year.

The difference between what we report as "production" and "payable metal quantities sold" is mainly attributable to inventory changes incidental to the timing of sales of refined metals and shipping schedules.

We believe the identification of silver as a by-product credit is appropriate at Casa Berardi and Nevada Operations because of its lower economic value compared to gold and due to the fact that gold is the primary product we intend to produce there. In addition, we do not receive sufficient revenue from silver at the Casa Berardi or Nevada Operations to warrant classification of such as a co-product. Because we consider silver to be a by-product of our gold production at Casa Berardi and Nevada Operations, the value of silver offsets operating costs within our calculations of Cash Cost, After By-product Credits, per Gold ~~Ounce.~~

The $0.9 million decrease in gross profit for the third quarter of 2017 compared to the third quarter of 2016 was primarily due to lower silver and gold production and prices. The reduction in silver and gold production was a result of lower ore throughput and grades. The $13.8 million decrease in gross profit for the first nine months of 2017 compared to the same period in 2016 was primarily due to lower silver and gold production as a result of lower ore grades, partially offset by higher ore throughput. The ore processed in the first half of 2016 had considerably higher grades than anticipated over the mine life.

~~The chart below illustrates the factors contributing to Cash Cost, After By-product Credits, Per Silver Ounce for the third quarter and first nine months of 2017 and 2016:~~

~~The following table summarizes the components of Cash Cost, After By-product Credits, per Silver Ounce:~~

~~The following table summarizes the components of AISC, After By-product Credits, per Silver Ounce:~~

The increase in Cash Cost, After By-product Credits, per Silver Ounce in the third quarter and first nine months of 2017 compared to the same periods of 2016 was primarily the result of lower by-product credits due to lower gold production and prices, partially offset by lower mining costs as a result of reduced mining of waste and the impact of lower silver production on the calculation. The same factors, along with higher exploration and capital spending, resulted in the increases in AISC, After By-product Credits, per Silver Ounce for the third quarter and first nine months of 2017 compared to 2016.

We believe the identification of gold as a by-product credit is appropriate at San Sebastian because of its anticipated lower economic value compared to silver over the life of the mine. In addition, we do not receive sufficient revenue from gold at San Sebastian to warrant classification of such as a co-product. Because we consider gold to be a by-product of our silver production at San Sebastian, the value of gold offsets operating costs within our calculations of Cash Cost, After By-product Credits, per Silver Ounce and AISC, After By-product Credits, per ~~Silver~~Gold Ounce. ~~In addition~~

We reported a net loss applicable to common stockholders of $22.6 million for the three months ended September 30, 2023, compared to a net loss applicable to common stockholders of $23.7 million in the comparable period in 2022. The following were the significant drivers of changes in net loss applicable to common stockholders compared to 2022:

•

Fair value adjustments, net losses increased by $2.2 million primarily due to higher ~~precious metal grades, resulting~~unrealized losses on undesignated derivative contracts of $3.0 million partially offset by lower unrealized losses on our marketable equity securities portfolio of $0.9 million than in ~~a lower Cash Cost, Before By-product Credits, per Silver Ounce and AISC, After By-product Credits, per Silver Ounce.~~

~~Table of Contents~~the comparable period in 2022.

•

Net foreign exchange gain decreased by $1.5 million to $4.2 million reflecting the ~~first quarter of 2017, we began construction of a new underground ramp and rehabilitation~~continued strengthening of the ~~historical underground access. Once completed, these underground accesses should allow us~~US dollar against the Canadian dollar impact, and related impact on the revaluation of our Canadian monetary assets and liabilities.

We reported a net loss applicable to ~~mine deeper portions~~common stockholders of $41.7 million for the nine months ended September 30, 2023, compared to a net loss applicable to common stockholders of $33.3 million in the comparable period in 2022. The following were the significant drivers of changes in net loss applicable to common stockholders compared to 2022:

•

Consolidated gross profit increased by $14.9 million. See The Greens Creek Segment,The Lucky Friday Segment, The Keno Hill Segment, The Casa Berardi Segment and The Nevada Operations Segment sections below for a discussion on the key drivers by operating unit.

•

General and administrative costs increased by $1.5 million, reflecting personnel that joined the Company as a result of the ~~deposits at San Sebastian,~~September 7, 2022 Alexco acquisition, and ~~we anticipate underground ore production~~compensation adjustments effective July 1, 2023.

•

Exploration and pre-development decreased by $13.6 million primarily due to ~~begin in~~lower expenditures across our exploration portfolio.

•

Ramp-up and suspension costs increased by $32.1 million primarily due to $20.4 million of Keno Hill ramp-up activities following the ~~first quarter of 2018. Capital costs~~Alexco acquisition, $12.0 million related to the suspension of operations at Lucky Friday in August due to the underground ~~development are expected~~fire that occurred in the #2 shaft, and $2.2 million related to ~~total approximately $5.0~~the temporary suspension of operations at Casa Berardi for 21 days in June 2023 following the directives of Quebec's Ministry of Natural Resources and Forests to close certain forest lands and access roads in responses to the Quebec forest fires, partially offset by a reduction of suspension costs at Nevada Operations.

•

Other operating income of $2.7 million in ~~2017.~~

~~Corporate Matters~~

~~Employee Benefit Plans~~

~~Our defined benefit pension plans provide~~2023 compared to other operating expense of $5.3 million in 2022, primarily due to the receipt of $5.9 million in insurance proceeds in May related to a ~~significant benefit~~coverage lawsuit.

•

Fair value adjustments, net loss decreased by $8.9 million to a loss of $5.8 million in 2023 due to a combination of lower unrealized losses on our ~~employees, but also represent a significant liability to us. The liability recorded for the funded status~~marketable equity securities portfolio of ~~our plans was $43.9~~$7.1 million and ~~$44.9~~unrealized gains on our undesignated derivative book of $1.8 million as of September 30, 2017 and December 31, 2016, respectively. We made cash contributions to our defined benefit plans of $1.2 million in April 2017 and $5.7 million in July 2017. While the economic variables which will determine future funding requirements are uncertain, we expect contributions to continue to be required in future years under current plan provisions, and we periodically examine the plans for affordability and competitiveness. See ~~Note 7 of Notes to Condensed Consolidated Financial Statements (Unaudited)~~ ~~for more information.~~

~~Income Taxes~~

The income tax expense for the three- and nine-month periods ended September 30, 2017 has been computed using a discrete effective tax rate method. We have historically calculated the provision for income taxes during interim reporting periods by applying an estimate of the annual effective tax rate ("AETR") for the full fiscal year to “ordinary” pretax income or loss (excluding unusual or infrequently occurring discrete items) for the reporting period. However, small changes to estimated annual “ordinary” pre-tax income cause significant volatility to the estimated AETR, due to near break-even levels of pre-tax income and significant permanent differencesthan in the ~~U.S. and Canada. Therefore, we determined that the AETR method would not provide a reliable estimate for the fiscal three- and nine-month periods ended September~~ ~~30, 2017. As a result~~comparable period in 2022.

•

Net foreign exchange gain of ~~this change in method, an amount representing a recovery of income tax expense reported in the first and second quarters was recorded in this period.~~

~~Each reporting period we assess our deferred tax assets utilizing long-range forecasts to provide reasonable assurance that they will be realized through future earnings.~~ ~~We continue to have a net deferred tax asset in the U.S. and a net deferred tax liability in Canada.~~

~~Our U.S. net deferred tax asset at September~~ 30, 2017 totaled $44.7 million, or 2% of total assets, an increase of $8.9 million from the $35.8 million net deferred tax asset at December 31, 2016. The largest component of the deferred tax asset is net operating loss carryforwards. The next largest component is reclamation costs. We have previously determined that we are an indefinite AMT taxpayer, resulting in additional valuation allowance primarily related to forecasted utilization of regular net operating loss carryforwards and the effect of re-measuring temporary deferred tax assets using a tax rate of 20% which differed from the previous rate of 35%. During the fourth quarter of 2016, we determined that we were eligible to take a different income tax position relating to the timing of deductions for #4 Shaft development costs at Lucky Friday. We filed with the Internal Revenue Service ("IRS") a request for approval to use this method, which was approved in the first quarter of 2017. The change resulted in additional deductions of approximately $203 million and $110 million for regular tax and AMT, respectively, resulting in a current tax benefit of approximately $10.7 million for the reduction in AMT payable for 2016. In addition, this change in tax position substantially changes the timing of additional deductions for these costs for regular tax and AMT relative to our projected life of mine and projected taxable income. These timing changes caused us to change our assessment of the ability to generate sufficient future taxable income to realize our deferred tax assets, resulting in a valuation allowance decrease and deferred tax benefit of approximately $15.1 million in the first quarter of 2017. At September 30, 2017, we retained a valuation allowance on U.S. deferred tax assets of approximately $66 million, primarily for net operating loss carryforwards.

~~Table of Contents~~

~~Our net Canadian deferred tax liability at September 30, 2017 was $122.7~~$0.4 million, a decrease of ~~$0.2~~$7.7 million in 2023 from the ~~$122.9~~gain of $8.1 million ~~net deferred tax liability at December 31, 2016. The deferred tax liability is primarily related to the excess~~in 2022 reflecting slower strengthening of the ~~carrying value~~US dollar against the Canadian dollar, and the related impact on the revaluation of our Canadian monetary assets and liabilities.

Greens Creek


Dollars are in thousands (except per ounce and per ton amounts)	Three Months Ended September 30,						Nine Months Ended September 30,
	2023			2022			2023			2022
Sales	$	96,459		$	60,875		$	290,961		$	239,688
Cost of sales and other direct production costs		(49,307	)		(42,197	)		(151,107	)		(127,290	)
Depreciation, depletion and amortization		(11,015	)		(10,305	)		(38,557	)		(35,354	)
Total cost of sales		(60,322	)		(52,502	)		(189,664	)		(162,644	)
Gross profit	$	36,137		$	8,373		$	101,297		$	77,044
Tons of ore milled		228,978			229,975			694,610			651,220
Production:
Silver (ounces)		2,343,192			2,468,280			7,471,725			7,308,660
Gold (ounces)		15,010			11,412			46,245			35,227
Lead (tons)		4,740			4,428			14,668			14,495
Zinc (tons)		13,224			12,580			38,961			38,470
Payable metal quantities sold:
Silver (ounces)		1,973,606			1,663,909			6,421,060			5,702,301
Gold (ounces)		12,371			7,478			38,025			25,952
Lead (tons)		3,600			2,755			11,506			10,069
Zinc (tons)		9,444			9,138			27,648			25,725
Ore grades:
Silver ounces per ton		13.1			13.6			13.4			13.8
Gold ounces per ton		0.09			0.07			0.09			0.07
Lead percent		2.5	%		2.4	%		2.6	%		2.7	%
Zinc percent		6.5	%		6.3	%		6.3	%		6.7	%
Total production cost per ton	$	200.30		$	185.34		$	197.94		$	191.58
Cash Cost, After By-product Credits, per Silver Ounce (1)	$	3.04		$	2.65		$	1.81		$	(0.49	)
AISC, After By-Product Credits, per Silver Ounce (1)	$	8.18		$	7.07		$	5.67		$	4.02
Capital additions	$	12,060		$	6,988		$	27,546		$	24,748

(1)

A reconciliation of these non-GAAP measures to total cost of sales, the ~~mineral resource assets over the tax bases of those assets for Canadian tax reporting.~~

~~We had no Mexican deferred tax asset or liability at September 30, 2017 or December 31, 2016. We expect to have unremitted earnings~~most comparable GAAP measure, can be found below in Mexico by the end 2017; however, we anticipate being able to fully offset any U.S. tax impact of repatriating any Mexican earnings with foreign tax credits that are available for use under both regular tax and AMT. Accordingly, we estimate the net U.S. income tax impact of unremitted earnings to be zero. A $5.8 million valuation allowance remains on deferred tax assets in foreign jurisdictions.

Reconciliation of Total Cost of Sales ~~and Other Direct Production Costs and Depreciation, Depletion and Amortization~~ (GAAP) to Cash Cost, Before By-product Credits and Cash Cost, After By-product Credits (non-GAAP) and All-In Sustaining Cost, Before By-product Credits and All-In Sustaining Cost, After By-product Credits (non-GAAP).

The $27.8 million increase in gross profit for the three months ended September 30, 2023 compared to the same period in 2022 was primarily due to higher sales reflecting a combination or higher realized prices and sales volumes for all metals, partially offset by higher cost of sales and other direct production costs attributable to higher contractor labor maintenance expense, and higher depreciation, depletion and amortization reflecting the higher sales volumes. Capital additions increased by $5.1 million in the same period primarily due to higher mobile equipment purchases and the camp housing project.

The $24.3 million increase in gross profit for the nine months ended September 30, 2023 compared to the same period in 2022 was primarily due to higher sales reflecting higher realized prices for all metals, except zinc, in addition to higher sales volumes of all metals sold, partially offset by higher cost of sales and other direct production costs reflecting more ore mined and processed and cost increases in consumables, labor, maintenance and contractor costs, and higher depreciation, depletion and amortization reflecting the higher sales volumes. Capital additions increased by $2.8 million in the same period primarily due to the camp housing project.

The charts below illustrate the factors contributing to Cash Cost, After By-product Credits, per Silver Ounce:


	Three Months Ended September 30,						Nine Months Ended September 30,
	2023			2022			2023			2022
Cash Cost, Before By-product Credits, per Silver Ounce	$	25.48		$	22.69		$	24.03		$	22.24
By-product credits		(22.44	)		(20.04	)		(22.22	)		(22.73	)
Cash Cost, After By-product Credits, per Silver Ounce	$	3.04		$	2.65		$	1.81		$	(0.49	)


	Three Months Ended September 30,						Nine Months Ended September 30,
	2023			2022			2023			2022
AISC, Before By-product Credits, per Silver Ounce	$	30.62		$	27.11		$	27.89		$	26.75
By-product credits		(22.44	)		(20.04	)		(22.22	)		(22.73	)
AISC, After By-product Credits, per Silver Ounce	$	8.18		$	7.07		$	5.67		$	4.02

Theincrease in Cash Cost, After By-product Credits, per Silver Ounce and AISC, After By-product Credits, per Silver Ounce for the three and nine month periods ended September 30, 2023 compared to the same period in 2022 was primarily due to higher production costs in 2023.

Lucky Friday


Dollars are in thousands (except per ounce and per ton amounts)	Three Months Ended September 30,						Nine Months Ended September 30,
	2023			2022			2023			2022
Sales	$	21,409		$	28,460		$	113,167		$	102,380
Cost of sales and other direct production costs		(10,038	)		(16,903	)		(57,327	)		(59,624	)
Depreciation, depletion and amortization		(4,306	)		(7,261	)		(23,741	)		(24,155	)
Total cost of sales		(14,344	)		(24,164	)		(81,068	)		(83,779	)
Gross profit	$	7,065		$	4,296		$	32,099		$	18,601
Tons of ore milled		36,619			90,749			225,965			265,971
Production:
Silver (ounces)		475,414			1,074,230			3,024,544			3,188,565
Lead (tons)		2,957			7,172			19,171			21,299
Zinc (tons)		1,159			3,279			7,810			9,101
Payable metal quantities sold:
Silver (ounces)		534,183			801,115			2,974,835			2,822,281
Lead (tons)		3,330			5,295			18,809			18,720
Zinc (tons)		981			2,385			6,061			6,602
Ore grades:
Silver ounces per ton		13.6			12.5			14.0			12.7
Lead percent		8.6	%		8.5	%		8.9	%		8.5	%
Zinc percent		3.5	%		4.2	%		4.1	%		3.9	%
Total production cost per ton	$	191.81		$	207.10		$	223.44		$	220.41
Cash Cost, After By-product Credits, per Silver Ounce (1)	$	4.74		$	5.23		$	5.51		$	4.77
AISC, After By-product Credits, per Silver Ounce (1)	$	10.63		$	15.98		$	12.21		$	12.86
Capital additions	$	15,494		$	16,125		$	46,518		$	37,278

(1)

A reconciliation of these non-GAAP measures to total cost of sales, the most comparable GAAP measure, can be found below in Reconciliation of Total Cost of Sales (GAAP) to Cash Cost, Before By-product Credits and Cash Cost, After By-product Credits (non-GAAP) and All-In Sustaining Cost, Before By-product Credits and All-In Sustaining Cost, After By-product Credits (non-GAAP).

During August 2023, the mine was suspended while repairing an unused station in the #2 ventilation shaft, which is also the secondary egress. The operation remained suspended due to a fire at the unused station. By early September, the fire had been extinguished, normal ventilation was reestablished and the workforce recalled. Following evaluation of alternatives, it was determined that in order to safely bring the mine back into production in the most rapid and cost effective way, a new secondary egress needed to be developed to bypass the damaged portion of the #2 shaft. The new egress will extend an existing ramp 1,600 feet, install a 290-foot-long manway raise, and develop a 850 foot ventilation raise. It is anticipated that this work will result in operations being suspended for the remainder of 2023. The Company has property and business interruption insurance coverage with an underground sub-limit of $50.0 million, and has begun discussions with the insurance provider to recover property damage and business interruption insurance proceeds. There can be no assurance that we will succeed in receiving such proceeds.

Gross profit increased by $2.8 million and $13.5 million for the three and nine month periods ended September 30, 2023, respectively, compared to the same periods in 2022. For both the three and nine month periods ended September 30, 2023, $12.0million of site specific suspension costs were included within Ramp-up and suspension costs on our condensed consolidated statements of operations and comprehensive loss. For both the three and nine month periods ended September 30, 2023, the increase in gross profit was attributable to higher realized prices for silver and lead, and the impact of mining and processing more high grade material, particularly for silver.

Capital additions decreased by $0.6 million in the three months ended September 30, 2023, compared to the same period in 2022, reflecting lower development and pre-production drilling following suspension of operations in August 2023. Capital additions increased by $9.2 million for the nine months ended September 30, 2023, compared to the same period in 2022, primarily due to expenditures on key projects including the installation of a new service hoist and coarse ore bunker, increased development, and pre-production drilling to achieve a sustained ore production rate for the annual throughput goal of 425,000 tons, prior to suspension of operations in August 2023.

The charts below illustrate the factors contributing to Cash Cost, After By-product Credits, Per Silver Ounce:


	Three Months Ended September 30,						Nine Months Ended September 30,
	2023			2022			2023			2022
Cash Cost, Before By-product Credits, per Silver Ounce	$	20.20		$	22.87		$	21.45		$	23.44
By-product credits		(15.46	)		(17.64	)		(15.94	)		(18.67	)
Cash Cost, After By-product Credits, per Silver Ounce	$	4.74		$	5.23		$	5.51		$	4.77


	Three Months Ended September 30,						Nine Months Ended September 30,
	2023			2022			2023			2022
AISC, Before By-product Credits, per Silver Ounce	$	26.09		$	33.62		$	28.15		$	31.53
By-product credits		(15.46	)		(17.64	)		(15.94	)		(18.67	)
AISC, After By-product Credits, per Silver Ounce	$	10.63		$	15.98		$	12.21		$	12.86

Thedecrease in Cash Cost, After By-product Credits, per Silver Ounce and AISC, After By-product Credits, per Silver Ounce for the three and nine month periods ended September 30, 2023 compared to the same period in 2022 was primarily due to lower by-product credits in 2023.

Keno Hill


Dollars are in thousands (except per ounce and per ton amounts)	Three Months Ended September 30,			Nine Months Ended September 30,
	2023			2023
Sales	$	16,001		$	17,582
Cost of sales and other direct production costs		(14,053	)		(15,373	)
Depreciation, depletion and amortization		(1,948	)		(2,209	)
Total cost of sales		(16,001	)		(17,582	)
Gross profit	$	—		$	—
Tons of ore milled		24,616			36,680
Production:
Silver (ounces)		710,012			894,276
Zinc (tons)		252			943
Lead (tons)		327			744
Payable metal quantities sold:
Silver (ounces)		628,571			694,198
Zinc (tons)		569			617
Lead (tons)		509			533
Ore grades:
Silver ounces per ton		33.0			28.2
Zinc percent		2.5	%		3.1	%
Lead percent		2.4	%		2.1	%

We acquired our Keno Hill operations as part of the Alexco acquisition on September 7, 2022, and have focused on development activities and began ramp-up of the mill during the second quarter. The average throughput during the third quarter was 268 tons per day, with silver grades milled of 33 ounces per ton. Tonnage mined was constrained by delays in infrastructure construction which has impacted development rates. Key underground infrastructure projects include the shotcrete plant, which is now complete, and the cemented rockfill plant, which is expected to be completed at the end of November. With the delay in major construction projects, camp facilities at the mine were constrained, which was also a factor in the slower ramp-up of the mine. Modifications to the secondary crushing circuit are substantially complete, and commissioning is underway. The changes are expected to increase crusher availability and efficiency.

During the three and nine months ended September 30, 2023, Keno Hill recorded sales and cost of sales of $16.0 million and $17.6 million, respectively, related to the concentrate produced and sold. During the three and nine months ended September 30, 2023, $5.1million and $20.4 million, respectively, of site specific ramp up costs were included with Ramp-up and suspension costs and $1.7 million and $3.1 million, respectively, of site specific exploration costs were included within Exploration and pre-development a reported on our condensed consolidated statements of operations and comprehensive loss. During the three and nine months ended September 30, 2023, Keno Hill recorded capital additions of $11.5 million and $32.1 million, respectively, related to various mine underground development projects, mobile equipment purchases, crushers modification and a camp upgrade.

Casa Berardi


Dollars are in thousands (except per ounce and per ton amounts)	Three Months Ended September 30,						Nine Months Ended September 30,
	2023			2022			2023			2022
Sales	$	46,912		$	56,939		$	134,856		$	181,679
Cost of sales and other direct production costs		(37,842	)		(44,443	)		(119,108	)		(137,176	)
Depreciation, depletion and amortization		(18,980	)		(15,089	)		(43,288	)		(46,394	)
Total cost of sales		(56,822	)		(59,532	)		(162,396	)		(183,570	)
Gross loss	$	(9,910	)	$	(2,593	)	$	(27,540	)	$	(1,891	)
Tons of ore milled		343,619			389,941			1,091,477			1,177,709
Production:
Gold (ounces)		24,259			33,335			67,846			96,881
Silver (ounces)		5,084			6,882			16,685			22,329
Payable metal quantities sold:
Gold (ounces)		24,423			32,965			69,804			99,703
Silver (ounces)		5,864			14,700			17,209			23,950
Ore grades:
Gold ounces per ton		0.08			0.10			0.07			0.09
Silver ounces per ton		0.02			0.02			0.02			0.02
Total production cost per ton	$	103.75		$	114.52		$	103.63		$	115.15
Cash Cost, After By-product Credits, per Gold Ounce (1)	$	1,475		$	1,349		$	1,635		$	1,409
AISC, After By-product Credits, per Gold Ounce (1)	$	1,695		$	1,669		$	2,075		$	1,678
Capital additions	$	16,225		$	10,771		$	54,127		$	26,672

(1)

As part of the transition of the Casa Berardi mine from a combined underground and open pit operation to an open pit only operation, the lower margin east mine underground operations were closed in July 2023 and only the higher margin stopes of the west underground mine will be mined through mid-2024, at which time most underground activity, except for exploration will cease. This strategic change has resulted in production and sales decreasing significantly compared to the three and nine month periods in 2022. Following suspension of underground mining stopping in mid-2024, Casa Berardi is expected to produce gold only from the 160 open pit, and at lower volumes than historic production levels. We expect production from the 160 open pit to conclude during 2027. We forecast a gap in production from 2028 to 2030 when no ore will be mined. During this hiatus, our focus will be on investing in infrastructure and equipment, and on permitting and stripping two expected new open pits, Principal and West Mine Crown Pillar. From 2028 to 2030, there is not expected to be any cash flow from Casa Berardi to offset its operating and capital expenses, and instead our liquidity and capital resources are expected to come from our other operating units. We expect to resume open pit mining at Casa Berardi in 2030, and anticipate that the mine will generate significant free cash flow at the current gold price.

Gross loss increased by $7.3 million to $9.9 million for the three month period ended September 30, 2023, compared to a gross loss of $2.6 million in the same period in 2022. The increase in gross loss includes $3.3 million in product inventory net realizable value write downs attributable to higher depreciation, depletion and amortization expense, reflecting the accelerated amortization of the west underground mine, the purchase of mobile equipment fleet in June and early July 2023 and the cessation of capitalization of any underground mine development costs effective July 2023. Processing of lower grade tonnage from both the underground and surface operations, higher costs related to mill maintenance and optimization activities, and higher fuel and other consumables costs, also contributed to the increased gross loss compared to the same period in 2022. Capital additions increased by $5.5 million in the three months ended September 30, 2023 compared to the same period in 2022, primarily related to the construction of tailings storage facilities.

Gross loss increased by $25.6 million to $27.5 million for the nine month period ended September 30, 2023, compared to a gross loss of $1.9 million for the same period in 2022. This increase in gross loss includes $10.8 million in product inventory net realizable value write downs due to a combination of higher direct production costs during the first six months of the year and higher depreciation, depletion and amortization expense effective July 2023, reflecting the accelerated amortization of the west underground mine. The increase in gross loss was also due to the processing of lower grade ore tonnage from both the underground and surface operations, higher costs related to mill maintenance and optimization activities, higher underground maintenance costs resulting from repairs and replacements of major components for the production fleet, and higher fuel and other consumables costs, compared to the same periods in 2022. Suspension costs amounted to $2.2 million for the nine month period ended September 30, 2023. Casa Berardi's operations were suspended for 20 days in June 2023, due to wildfires in Quebec which resulted in the Quebec Ministry of Natural

Resources and Forests closing certain forest lands and access roads. No production or sales took place during the suspension period. Total capital additions increased by $27.5 million for the nine months ended September 30, 2023 compared to the same period in 2022, primarily due to purchases of new surface fleet equipment as the mine transitions from an underground to an open pit operation and the construction of tailings storage facilities.

The charts below illustrate the factors contributing to Cash Cost, After By-product Credits, Per Gold Ounce:


	Three Months Ended September 30,						Nine Months Ended September 30,
	2023			2022			2023			2022
Cash Cost, Before By-product Credits, per Gold Ounce	$	1,480		$	1,353		$	1,641		$	1,415
By-product credits		(5	)		(4	)		(6	)		(6	)
Cash Cost, After By-product Credits, per Gold Ounce	$	1,475		$	1,349		$	1,635		$	1,409


	Three Months Ended September 30,						Nine Months Ended September 30,
	2023			2022			2023			2022
AISC, Before By-product Credits, per Gold Ounce	$	1,700		$	1,673		$	2,081		$	1,684
By-product credits		(5	)		(4	)		(6	)		(6	)
AISC, After By-product Credits, per Gold Ounce	$	1,695		$	1,669		$	2,075		$	1,678

The increase in Cash Cost After By-product Credits, per Gold Ounce, for the three and nine month periods ended September 30, 2023 compared to the same periods for 2022 was primarily due to a combination of higher production costs and lower gold production. The lower production for the three and nine month periods ended September 30, 2023 combined with increased sustaining capital also negatively impacted AISC, After By-product Credits, per Gold Ounce.

Nevada Operations


Dollars are in thousands (except per ounce and per ton amounts)	Three Months Ended September 30,						Nine Months Ended September 30,
	2023			2022			2023			2022
Sales	$	—		$	—		$	960		$	268
Cost of sales and other direct production costs		(34	)		(1,285	)		(877	)		(2,418	)
Depreciation, depletion and amortization		34			(338	)		(140	)		(460	)
Total cost of sales		—			(1,623	)		(1,017	)		(2,878	)
Gross (loss) profit	$	—		$	(1,623	)	$	(57	)	$	(2,610	)
Payable metal quantities sold:
Gold (ounces)		—			—			544			65
Silver (ounces)		—			—			110			6,363

The gross loss of $57 thousand for the nine months ended September 30, 2023 was attributable to write downs of stockpiled material to net realizable value reflecting a lower gold price received for the processing and sale of refractory ore at a third party facility.

Exploration and pre-development activities continued in the three and nine months ended September 30, 2023 and were focused on target generation through detailed modeling and analysis of geological mapping and sampling. Exploration core drilling also began during the second quarter at our Aurora Project.

See Item 1A. Risk Factors - Issues we have faced at certain segments could require us to write-down the associated long-lived assets. We could face similar issues at our other operations. Such write-downs may adversely affect our results of operations and financial condition in our 2022 Form 10-K for a discussion of certain risks relating to our recent and ongoing analysis of the carrying value of the Nevada assets.

Corporate Matters

Income Taxes

During the three and nine months ended September 30, 2023, an income and mining tax benefit of $1.5 million and an expense of $6.9 million, respectively, resulted in an effective tax rate of 6.3% and -20.1%, respectively. This compares to an income and mining tax benefit of $9.5 million and $3.6 million during the three and nine months ended September 30, 2022, which resulted in an effective tax rate of 29.0% and 10.0%, respectively. The comparability of our income and mining tax (expense) benefit and effective tax rate for the reported periods was impacted by multiple factors, primarily: (i) mining taxes; (ii) variations in our income before income taxes; (iii) geographic distribution of that income; (iv) foreign exchange rates including non-recognition of foreign exchange gains and losses; (v) percentage depletion; and (vi) the non-recognition of tax assets. The effective tax rate will fluctuate, sometimes significantly, period to period. The change in the effective tax rate during the three and nine months ended September 30, 2023 compared to the comparable periods in 2022 is primarily related to the reported consolidated loss as well as the incurred losses at the consolidated Alexco subsidiaries, which were acquired September 7, 2022, and the Nevada operations, for which no tax benefit is recognized due to uncertainty surrounding our ability to utilize these future tax benefits. Since the three months ended March 31, 2022, we have used the annual effective tax rate method to calculate the quarterly tax provision.

Each reporting period we have assessed our deferred tax balances based on a review of long-range forecasts and quarterly activity. A valuation allowance is provided for deferred tax assets for which it is more likely than not the related tax benefits will not be realized. We analyze our deferred tax assets and, if it is determined that we will not realize all or a portion of our deferred tax assets, we will record or increase a valuation allowance. Conversely, if it is determined we will ultimately more likely than not be able to realize all or a portion of the related benefits for which a valuation allowance has been provided, all or a portion of the related valuation allowance will be reduced. There are a number of factors that impact our ability to realize our deferred tax assets. Valuation allowances are provided on deferred tax assets in Nevada, Mexico, and certain Canadian jurisdictions. For additional information, please see risk factors Our accounting and other estimates may be imprecise and Our ability to recognize the benefits of deferred tax assets related to net operating loss carryforwards and other items is dependent on future cash flows and taxable income in Item 1A - Risk Factors in our 2022 Form 10-K.

Reconciliation of Total Cost of Sales to Cash Cost, Before By-product Credits and Cash Cost, After By-product Credits (non-GAAP) and All-In Sustaining Cost, Before By-product Credits and All-In Sustaining Cost, After By-product Credits (non-GAAP)

The tables below present reconciliations between the most comparable GAAP measure of total cost of sales ~~and other direct production costs and depreciation, depletion and amortization~~ to the non-GAAP measures of (i) Cash Cost, Before By-product Credits, (ii) Cash Cost, After By-product Credits, (iii) AISC, Before By-product Credits and (iv) AISC, After By-product Credits for our operations ~~at the Greens Creek, Lucky Friday, San Sebastian and Casa Berardi units~~ and for the Company for the ~~three-~~three and ~~nine-month periods~~nine months ended September 30, ~~2017~~2023 and ~~2016.~~2022.

Cash Cost, After By-product Credits, per Ounce and AISC, After By-product Credits, per Ounce are measures developed by precious metals companies (including the Silver Institute ~~and/or~~and the World Gold Council) in an effort to provide a uniform standard for comparison purposes. There can be no assurance, however, that these non-GAAP measures as we report them are the same as those reported by other mining companies.

Cash Cost, After By-product Credits, per Ounce is an important operating statistic that we utilize to measure each mine's operating performance. We ~~have recently started reporting~~use AISC, After By-product Credits, per Ounce ~~which we use~~ as a measure of our mines' net cash flow after costs for ~~exploration, pre-development,~~ reclamation and sustaining capital. This is similar to the Cash Cost, After By-product Credits, per Ounce non-GAAP measure we report, but also includes ~~on-site exploration,~~ reclamation and sustaining capital costs. Current GAAP measures used in the mining industry, such as cost of goods sold, do not capture all the expenditures incurred to discover, develop and sustain silver and gold production. Cash Cost, After By-product Credits, per Ounce and AISC, After By-product Credits, per Ounce also allow us to benchmark the performance of each of our mines versus those of our competitors. As a ~~primary~~ silver and gold mining company, we also use these statistics on an aggregate basis - aggregating the Greens Creek and Lucky Friday ~~and San Sebastian~~ mines - to compare our performance with that of other ~~primary~~ silver mining ~~companies. With regard to~~companies, and aggregating Casa Berardi ~~we use Cash Cost, After By-product Credits, per Gold Ounce~~ and ~~AISC, After By-product Credits, per Gold Ounce to compare its performance~~Nevada Operations for comparison with other gold ~~mines.~~mining companies. Similarly, these statistics are useful in identifying acquisition and investment opportunities as they provide a common tool for measuring the financial performance of other mines with varying geologic, metallurgical and operating characteristics.

Cash Cost, Before By-product Credits and AISC, Before By-product Credits include all direct and indirect operating cash costs related directly to the physical activities of producing metals, including mining, processing and other plant costs, third-party refining expense, on-site general and administrative costs, royalties and mining production taxes. AISC, Before By-product Credits for each mine also includes ~~on-site exploration,~~ reclamation and sustaining capital costs. AISC, Before By-product Credits for our consolidated silver properties also includes corporate costs for general and administrative expense ~~exploration~~ and sustaining capital ~~projects.~~costs. By-product credits include revenues earned

from all metals other than the primary metal produced at each unit. As depicted in the tables below, by-product credits comprise an essential element of our silver unit cost structure, distinguishing our silver operations due to the polymetallic nature of their orebodies.

~~Table of Contents~~

In addition to the uses described above, Cash Cost, After By-product Credits, per Ounce and AISC, After By-product Credits, per Ounce provide management and investors an indication of operating cash flow, after consideration of the average price received from production. We also use these measurements for the comparative monitoring of performance of our mining operations period-to-period from a cash flow perspective.

The Casa Berardi and Nevada Operations and combined gold properties information below reports Cash Cost, After By-product Credits, per Gold Ounce and AISC, After By-product Credits, per Gold Ounce for the production of gold, ~~its~~their primary product, and by-product revenues earned from silver, which is a by-product at Casa ~~Berardi.~~Berardi and Nevada Operations. Only costs and ounces produced relating to units with the same primary product are combined to represent Cash Cost, After By-product Credits, per Ounce and AISC, After By-product Credits, per Ounce. Thus, the gold produced at our Casa Berardi ~~unit~~and Nevada Operations units is not included as a by-product credit when calculating CashCost, After By-product Credits, per Silver Ounce and AISC, After By-product Credits, per Silver Ounce for the total of Greens Creek and Lucky Friday, ~~and San Sebastian,~~ our combined silver properties. Similarly, the silver produced at our other ~~three~~two units is not included as a by-product credit when calculating the gold metrics for Casa ~~Berardi.~~Berardi and Nevada Operations.


In thousands (except per ounce amounts)	Three Months Ended September 30, 2023
	Greens Creek			Lucky Friday			Keno Hill (6)			Corporate (2)		Total Silver
Total cost of sales	$	60,322		$	14,344		$	16,001		$	—	$	90,667
Depreciation, depletion and amortization		(11,015	)		(4,306	)		(1,948	)		—		(17,269	)
Treatment costs		10,369			1,368			1,033			—		12,770
Change in product inventory		377			(2,450	)		—			—		(2,073	)
Reclamation and other costs		(348	)		(168	)		—			—		(516	)
Exclusion of Lucky Friday cash costs (8)		—			(20	)		—			—		(20	)
Exclusion of Keno Hill cash costs (6)		—			—			(15,086	)		—		(15,086	)
Cash Cost, Before By-product Credits (1)		59,705			8,768			—			—		68,473
Reclamation and other costs		722			101			—			—		823
Sustaining capital		11,330			7,386			—			237		18,953
Exclusion of Lucky Friday sustaining costs (8)		—			(4,934	)		—			—		(4,934	)
General and administrative		—			—			—			7,596		7,596
AISC, Before By-product Credits (1)		71,757			11,321			—			7,833		90,911
By-product credits:
Zinc		(20,027	)		(2,019	)		—			—		(22,046	)
Gold		(25,344	)		—			—			—		(25,344	)
Lead		(7,201	)		(5,368	)		—			—		(12,569	)
Exclusion of Lucky Friday by-product credits (8)		—			676			—			—		676
Total By-product credits		(52,572	)		(6,711	)		—			—		(59,283	)
Cash Cost, After By-product Credits	$	7,133		$	2,057		$	—		$	—	$	9,190
AISC, After By-product Credits	$	19,185		$	4,610		$	—		$	7,833	$	31,628
Ounces produced		2,343			475								2,818
Exclusion of Lucky Friday ounces produced (8)		—			(41	)							(41	)
Divided by ounces produced		2,343			434								2,777
Cash Cost, Before By-product Credits, per Ounce	$	25.48		$	20.20							$	24.66
By-product credits per ounce		(22.44	)		(15.46	)							(21.35	)
Cash Cost, After By-product Credits, per Ounce	$	3.04		$	4.74							$	3.31
AISC, Before By-product Credits, per Ounce	$	30.62		$	26.09							$	32.74
By-product credits per ounce		(22.44	)		(15.46	)							(21.35	)
AISC, After By-product Credits, per Ounce	$	8.18		$	10.63							$	11.39


In thousands (except per ounce amounts)	Three Months Ended September 30, 2023
	Casa Berardi			Nevada Operations and Other (4)			Total Gold
Total cost of sales	$	56,822		$	940		$	57,762
Depreciation, depletion and amortization		(18,980	)		32			(18,948	)
Treatment costs		254			—			254
Change in product inventory		(1,977	)		—			(1,977	)
Reclamation and other costs		(219	)		—			(219	)
Exclusion of Nevada Operations and Other costs		—			(972	)		(972	)
Cash Cost, Before By-product Credits (1)		35,900			—			35,900
Reclamation and other costs		219			—			219
Sustaining capital		5,133			—			5,133
AISC, Before By-product Credits (1)		41,252			—			41,252
By-product credits:
Silver		(119	)		—			(119	)
Total By-product credits		(119	)		—			(119	)
Cash Cost, After By-product Credits	$	35,781		$	—		$	35,781
AISC, After By-product Credits	$	41,133		$	—		$	41,133
Divided by ounces produced		24			—			24
Cash Cost, Before By-product Credits, per Ounce	$	1,480		$	—		$	1,480
By-product credits per ounce		(5	)		—			(5	)
Cash Cost, After By-product Credits, per Ounce	$	1,475		$	—		$	1,475
AISC, Before By-product Credits, per Ounce	$	1,700		$	—		$	1,700
By-product credits per ounce		(5	)		—			(5	)
AISC, After By-product Credits, per Ounce	$	1,695		$	—		$	1,695


In thousands (except per ounce amounts)	Three Months Ended September 30, 2023
	Total Silver			Total Gold			Total
Total cost of sales	$	90,667		$	57,762		$	148,429
Depreciation, depletion and amortization		(17,269	)		(18,948	)		(36,217	)
Treatment costs		12,770			254			13,024
Change in product inventory		(2,073	)		(1,977	)		(4,050	)
Reclamation and other costs		(516	)		(219	)		(735	)
Exclusion of Lucky Friday cash costs (8)		(20	)		—			(20	)
Exclusion of Keno Hill cash costs (6)		(15,086	)		—			(15,086	)
Exclusion of Nevada Operations and Other costs		—			(972	)		(972	)
Cash Cost, Before By-product Credits (1)		68,473			35,900			104,373
Reclamation and other costs		823			219			1,042
Sustaining capital		18,953			5,133			24,086
Exclusion of Lucky Friday sustaining costs (8)		(4,934	)		—			(4,934	)
General and administrative		7,596			—			7,596
AISC, Before By-product Credits (1)		90,911			41,252			132,163
By-product credits:
Zinc		(22,046	)		—			(22,046	)
Gold		(25,344	)		—			(25,344	)
Lead		(12,569	)		—			(12,569	)
Silver		—			(119	)		(119	)
Exclusion of Lucky Friday by-product credits (8)		676			—			676
Total By-product credits		(59,283	)		(119	)		(59,402	)
Cash Cost, After By-product Credits	$	9,190		$	35,781		$	44,971
AISC, After By-product Credits	$	31,628		$	41,133		$	72,761
Ounces produced		2,818			24
Exclusion of Lucky Friday ounces produced (8)		(41	)		—
Divided by ounces produced		2,777			24
Cash Cost, Before By-product Credits, per Ounce	$	24.66		$	1,480
By-product credits per ounce		(21.35	)		(5	)
Cash Cost, After By-product Credits, per Ounce	$	3.31		$	1,475
AISC, Before By-product Credits, per Ounce	$	32.74		$	1,700
By-product credits per ounce		(21.35	)		(5	)
AISC, After By-product Credits, per Ounce	$	11.39		$	1,695


In thousands (except per ounce amounts)	Three Months Ended September 30, 2022 (5)
	Greens Creek			Lucky Friday			Corporate (2)		Total Silver
Total cost of sales	$	52,502		$	24,164		$	—	$	76,666
Depreciation, depletion and amortization		(10,305	)		(7,261	)		—		(17,566	)
Treatment costs		9,477			4,791			—		14,268
Change in product inventory		4,464			3,022			—		7,486
Reclamation and other costs		(118	)		(152	)		—		(270	)
Cash Cost, Before By-product Credits (1)		56,020			24,564			—		80,584
Reclamation and other costs		705			282			—		987
Sustaining capital		10,219			11,264			187		21,670
General and administrative		—			—			11,003		11,003
AISC, Before By-product Credits (1)		66,944			36,110			11,190		114,244
By-product credits:
Zinc		(26,244	)		(7,155	)		—		(33,399	)
Gold		(17,019	)		—			—		(17,019	)
Lead		(6,212	)		(11,796	)		—		(18,008	)
Total By-product credits		(49,475	)		(18,951	)		—		(68,426	)
Cash Cost, After By-product Credits	$	6,545		$	5,613		$	—	$	12,158
AISC, After By-product Credits	$	17,469		$	17,159		$	11,190	$	45,818
Divided by ounces produced		2,469			1,075					3,544
Cash Cost, Before By-product Credits, per Ounce	$	22.69		$	22.87				$	22.74
By-product credits per ounce		(20.04	)		(17.64	)				(19.31	)
Cash Cost, After By-product Credits, per Ounce	$	2.65		$	5.23				$	3.43
AISC, Before By-product Credits, per Ounce	$	27.11		$	33.62				$	32.24
By-product credits per ounce		(20.04	)		(17.64	)				(19.31	)
AISC, After By-product Credits, per Ounce	$	7.07		$	15.98				$	12.93


In thousands (except per ounce amounts)	Three Months Ended September 30, 2022 (5)
	Casa Berardi			Total Gold
Total cost of sales	$	59,532		$	59,532
Depreciation, depletion and amortization		(15,089	)		(15,089	)
Treatment costs		429			429
Change in product inventory		420			420
Reclamation and other costs		(203	)		(203	)
Cash Cost, Before By-product Credits (1)		45,089			45,089
Reclamation and other costs		204			204
Sustaining capital		10,457			10,457
AISC, Before By-product Credits (1)		55,750			55,750
By-product credits:
Silver		(131	)		(131	)
Total By-product credits		(131	)		(131	)
Cash Cost, After By-product Credits	$	44,958		$	44,958
AISC, After By-product Credits	$	55,619		$	55,619
Divided by ounces produced		33			33
Cash Cost, Before By-product Credits, per Ounce	$	1,353		$	1,353
By-product credits per ounce		(4	)		(4	)
Cash Cost, After By-product Credits, per Ounce	$	1,349		$	1,349
AISC, Before By-product Credits, per Ounce	$	1,673		$	1,673
By-product credits per ounce		(4	)		(4	)
AISC, After By-product Credits, per Ounce	$	1,669		$	1,669


In thousands (except per ounce amounts)	Three Months Ended September 30, 2022 (5)
	Total Silver			Total Gold			Total
Total cost of sales	$	76,666		$	59,532		$	136,198
Depreciation, depletion and amortization		(17,566	)		(15,089	)		(32,655	)
Treatment costs		14,268			429			14,697
Change in product inventory		7,486			420			7,906
Reclamation and other costs		(270	)		(203	)		(473	)
Cash Cost, Before By-product Credits (1)		80,584			45,089			125,673
Reclamation and other costs		987			204			1,191
Sustaining capital		21,670			10,457			32,127
General and administrative		11,003			—			11,003
AISC, Before By-product Credits (1)		114,244			55,750			169,994
By-product credits:
Zinc		(33,399	)		—			(33,399	)
Gold		(17,019	)		—			(17,019	)
Lead		(18,008	)		—			(18,008	)
Silver		—			(131	)		(131	)
Total By-product credits		(68,426	)		(131	)		(68,557	)
Cash Cost, After By-product Credits	$	12,158		$	44,958		$	57,116
AISC, After By-product Credits	$	45,818		$	55,619		$	101,437
Divided by ounces produced		3,544			33
Cash Cost, Before By-product Credits, per Ounce	$	22.74		$	1,353
By-product credits per ounce		(19.31	)		(4	)
Cash Cost, After By-product Credits, per Ounce	$	3.43		$	1,349
AISC, Before By-product Credits, per Ounce	$	32.24		$	1,673
By-product credits per ounce		(19.31	)		(4	)
AISC, After By-product Credits, per Ounce	$	12.93		$	1,669


In thousands (except per ounce amounts)	Nine Months Ended September 30, 2023
	Greens Creek			Lucky Friday			Keno Hill (6)			Corporate (2)		Total Silver
Total cost of sales	$	189,664		$	81,068		$	17,582		$	—	$	288,314
Depreciation, depletion and amortization		(38,557	)		(23,741	)		(2,209	)		—		(64,507	)
Treatment costs		31,114			10,832			1,146			—		43,092
Change in product inventory		(2,479	)		(3,313	)		—			—		(5,792	)
Reclamation and other costs		(214	)		(826	)		—			—		(1,040	)
Exclusion of Lucky Friday cash costs (8)		—			(20	)		—			—		(20	)
Exclusion of Keno Hill cash costs (6)		—			—			(16,519	)		—		(16,519	)
Cash Cost, Before By-product Credits (1)		179,528			64,000			—			—		243,528
Reclamation and other costs		2,166			671			—			—		2,837
Sustaining capital		26,686			24,251			—			831		51,768
Exclusion of Lucky Friday sustaining costs (8)		—			(4,934	)		—			—		(4,934	)
General and administrative		—			—			—			30,449		30,449
AISC, Before By-product Credits (1)		208,380			83,988			—			31,280		323,648
By-product credits:
Zinc		(64,955	)		(14,284	)		—			—		(79,239	)
Gold		(79,089	)		—			—			—		(79,089	)
Lead		(22,002	)		(33,953	)		—			—		(55,955	)
Exclusion of Lucky Friday by-product credits (8)		—			676			—			—		676
Total By-product credits		(166,046	)		(47,561	)		—			—		(213,607	)
Cash Cost, After By-product Credits	$	13,482		$	16,439		$	—		$	—	$	29,921
AISC, After By-product Credits	$	42,334		$	36,427		$	—		$	31,280	$	110,041
Ounces produced		7,472			3,025								10,497
Exclusion of Lucky Friday ounces produced (8)		—			(41	)							(41	)
Divided by ounces produced		7,472			2,984								10,456
Cash Cost, Before By-product Credits, per Ounce	$	24.03		$	21.45							$	23.29
By-product credits per ounce		(22.22	)		(15.94	)							(20.43	)
Cash Cost, After By-product Credits, per Ounce	$	1.81		$	5.51							$	2.86
AISC, Before By-product Credits, per Ounce	$	27.89		$	28.15							$	30.95
By-product credits per ounce		(22.22	)		(15.94	)							(20.43	)
AISC, After By-product Credits, per Ounce	$	5.67		$	12.21							$	10.52


In thousands (except per ounce amounts)	Nine Months Ended September 30, 2023
	Casa Berardi (7)			Nevada Operations and Other (4)			Total Gold
Total cost of sales	$	162,396		$	2,743		$	165,139
Depreciation, depletion and amortization		(43,288	)		(142	)		(43,430	)
Treatment costs		1,072			—			1,072
Change in product inventory		(5,345	)		—			(5,345	)
Reclamation and other costs		(655	)		—			(655	)
Exclusion of Casa Berardi cash costs (3)		(2,851	)		—			(2,851	)
Exclusion of Nevada Operations and Other costs		—			(2,601	)		(2,601	)
Cash Cost, Before By-product Credits (1)		111,329			—			111,329
Reclamation and other costs		655			—			655
Sustaining capital		29,175			—			29,175
AISC, Before By-product Credits (1)		141,159			—			141,159
By-product credits:
Silver		(390	)		—			(390	)
Total By-product credits		(390	)		—			(390	)
Cash Cost, After By-product Credits	$	110,939		$	—		$	110,939
AISC, After By-product Credits	$	140,769		$	—		$	140,769
Divided by ounces produced		68			—			68
Cash Cost, Before By-product Credits, per Ounce	$	1,641		$	—		$	1,641
By-product credits per ounce		(6	)		—			(6	)
Cash Cost, After By-product Credits, per Ounce	$	1,635		$	—		$	1,635
AISC, Before By-product Credits, per Ounce	$	2,081		$	—		$	2,081
By-product credits per ounce		(6	)		—			(6	)
AISC, After By-product Credits, per Ounce	$	2,075		$	—		$	2,075


In thousands (except per ounce amounts)	Nine Months Ended September 30, 2023
	Total Silver			Total Gold			Total
Total cost of sales	$	288,314		$	165,139		$	453,453
Depreciation, depletion and amortization		(64,507	)		(43,430	)		(107,937	)
Treatment costs		43,092			1,072			44,164
Change in product inventory		(5,792	)		(5,345	)		(11,137	)
Reclamation and other costs		(1,040	)		(655	)		(1,695	)
Exclusion of Lucky Friday cash costs (8)		(20	)		—			(20	)
Exclusion of Keno Hill cash costs (6)		(16,519	)		—			(16,519	)
Exclusion of Casa Berardi cash costs (3)		—			(2,851	)		(2,851	)
Exclusion of Nevada Operations and Other costs		—			(2,601	)		(2,601	)
Cash Cost, Before By-product Credits (1)		243,528			111,329			354,857
Reclamation and other costs		2,837			655			3,492
Sustaining capital		51,768			29,175			80,943
Exclusion of Lucky Friday sustaining costs (8)		(4,934	)		—			(4,934	)
General and administrative		30,449			—			30,449
AISC, Before By-product Credits (1)		323,648			141,159			464,807
By-product credits:
Zinc		(79,239	)		—			(79,239	)
Gold		(79,089	)		—			(79,089	)
Lead		(55,955	)		—			(55,955	)
Silver		—			(390	)		(390	)
Exclusion of Lucky Friday by-product credits (8)		676			—			676
Total By-product credits		(213,607	)		(390	)		(213,997	)
Cash Cost, After By-product Credits	$	29,921		$	110,939		$	140,860
AISC, After By-product Credits	$	110,041		$	140,769		$	250,810
Ounces produced		10,497			68
Exclusion of Lucky Friday ounces produced (8)		(41	)		—
Divided by ounces produced		10,456			68
Cash Cost, Before By-product Credits, per Ounce	$	23.29		$	1,641
By-product credits per ounce		(20.43	)		(6	)
Cash Cost, After By-product Credits, per Ounce	$	2.86		$	1,635
AISC, Before By-product Credits, per Ounce	$	30.95		$	2,081
By-product credits per ounce		(20.43	)		(6	)
AISC, After By-product Credits, per Ounce	$	10.52		$	2,075


In thousands (except per ounce amounts)	Nine Months Ended September 30, 2022 (5)
	Greens Creek			Lucky Friday			Corporate and other(2)		Total Silver
Total cost of sales	$	162,644		$	83,779		$	—	$	246,423
Depreciation, depletion and amortization		(35,354	)		(24,155	)		—		(59,509	)
Treatment costs		27,369			13,271			—		40,640
Change in product inventory		9,899			2,620			—		12,519
Reclamation and other costs		(1,988	)		(769	)		—		(2,757	)
Cash Cost, Before By-product Credits (1)		162,570			74,746					237,316
Reclamation and other costs		2,115			846					2,961
Sustaining capital		30,843			24,937			334		56,114
General and administrative		—			—			28,989		28,989
AISC, Before By-product Credits (1)		195,528			100,529			29,323		325,380
By-product credits:
Zinc		(87,723	)		(21,358	)		—		(109,081	)
Gold		(55,966	)		—			—		(55,966	)
Lead		(22,449	)		(38,175	)		—		(60,624	)
Total By-product credits		(166,138	)		(59,533	)		—		(225,671	)
Cash Cost, After By-product Credits	$	(3,568	)	$	15,213		$	—	$	11,645
AISC, After By-product Credits	$	29,390		$	40,996		$	29,323	$	99,709
Divided by ounces produced		7,309			3,189					10,498
Cash Cost, Before By-product Credits, per Ounce	$	22.24		$	23.44				$	22.61
By-product credits per ounce		(22.73	)		(18.67	)				(21.50	)
Cash Cost, After By-product Credits, per Ounce	$	(0.49	)	$	4.77				$	1.11
AISC, Before By-product Credits, per Ounce	$	26.75		$	31.53				$	30.99
By-product credits per ounce		(22.73	)		(18.67	)				(21.50	)
AISC, After By-product Credits, per Ounce	$	4.02		$	12.86				$	9.49


In thousands (except per ounce amounts)	Nine Months Ended September 30, 2022 (5)
	Casa Berardi			Total Gold
Total cost of sales	$	183,570		$	183,570
Depreciation, depletion and amortization		(46,394	)		(46,394	)
Treatment costs		1,345			1,345
Change in product inventory		(936	)		(936	)
Reclamation and other costs		(623	)		(623	)
Cash Cost, Before By-product Credits (1)		136,962			136,962
Reclamation and other costs		623			623
Sustaining capital		25,587			25,587
AISC, Before By-product Credits (1)		163,172			163,172
By-product credits:
Silver		(485	)		(485	)
Total By-product credits		(485	)		(485	)
Cash Cost, After By-product Credits	$	136,477		$	136,477
AISC, After By-product Credits	$	162,687		$	162,687
Divided by ounces produced		97			97
Cash Cost, Before By-product Credits, per Ounce	$	1,415		$	1,415
By-product credits per ounce		(6	)		(6	)
Cash Cost, After By-product Credits, per Ounce	$	1,409		$	1,409
AISC, Before By-product Credits, per Ounce	$	1,684		$	1,684
By-product credits per ounce		(6	)		(6	)
AISC, After By-product Credits, per Ounce	$	1,678		$	1,678


In thousands (except per ounce amounts)	Nine Months Ended September 30, 2022 (5)
	Total Silver			Total Gold			Total
Total cost of sales	$	246,423		$	183,570		$	429,993
Depreciation, depletion and amortization		(59,509	)		(46,394	)		(105,903	)
Treatment costs		40,640			1,345			41,985
Change in product inventory		12,519			(936	)		11,583
Reclamation and other costs		(2,757	)		(623	)		(3,380	)
Cash Cost, Before By-product Credits (1)		237,316			136,962			374,278
Reclamation and other costs		2,961			623			3,584
Sustaining capital		56,114			25,587			81,701
General and administrative		28,989			—			28,989
AISC, Before By-product Credits (1)		325,380			163,172			488,552
By-product credits:
Zinc		(109,081	)		—			(109,081	)
Gold		(55,966	)		—			(55,966	)
Lead		(60,624	)		—			(60,624	)
Silver		—			(485	)		(485	)
Total By-product credits		(225,671	)		(485	)		(226,156	)
Cash Cost, After By-product Credits	$	11,645		$	136,477		$	148,122
AISC, After By-product Credits	$	99,709		$	162,687		$	262,396
Divided by ounces produced		10,498			97
Cash Cost, Before By-product Credits, per Ounce	$	22.61		$	1,415
By-product credits per ounce		(21.50	)		(6	)
Cash Cost, After By-product Credits, per Ounce	$	1.11		$	1,409
AISC, Before By-product Credits, per Ounce	$	30.99		$	1,684
By-product credits per ounce		(21.50	)		(6	)
AISC, After By-product Credits, per Ounce	$	9.49		$	1,678

(1)

~~Table~~Includes all direct and indirect operating costs related to the physical activities of ~~Contents~~producing metals, including mining, processing and other plant costs, third-party refining and marketing expense, on-site general and administrative costs and royalties, before by-product revenues earned from all metals other than the primary metal produced at each operation. AISC, Before By-product Credits also includes reclamation and sustaining capital costs.

In thousands (except per ounce amounts)

Three Months Ended September 30, 2017

Greens
Creek

Lucky
Friday⁽²⁾

San
Sebastian

Corporate⁽³⁾

Total
Silver

Casa
Berardi
(Gold)

Total

Cost of sales and other direct production costs and depreciation, depletion and amortization
$ 41,927 — $ 6,680 $ 48,607 $ 48,595 $ 97,202
Depreciation, depletion and amortization
(12,607
)
— (641
)
(13,248
)
(15,596
)
(28,844
)
Treatment costs
12,067 440 422 12,929 682 13,611
Change in product inventory
7,675 1,960 (627
)
9,008 (288
)
8,720
Reclamation and other costs
(394
)
18 (494
)
(870
)
(124
)
(994
)
Cash Cost, Before By-product Credits ⁽¹⁾
48,668 2,418 5,340 56,426 33,269 89,695
Reclamation and other costs
666 38 117 821 123 944
Exploration
1,944 (2
)
1,495 477 3,914 1,161 5,075
Sustaining capital
8,210 119 402 1,105 9,836 13,775 23,611
General and administrative
9,529 9,529 9,529
AISC, Before By-product Credits ⁽¹⁾
59,488 2,573 7,354 80,526 48,328 128,854
By-product credits:

Zinc
(27,046
)
(293
)
(27,339
)
(27,339
)
Gold
(13,907
)
(8,088
)
(21,995
)
(21,995
)
Lead
(8,067
)
(1,102
)
(9,169
)
(9,169
)
Silver
(161
)
(161
)
Total By-product credits
(49,020
)
(1,395
)
(8,088
)
(58,503
)
(161
)
(58,664
)
Cash Cost, After By-product Credits
$ (352
)
$ 1,023 $ (2,748
)
$ (2,077
)
$ 33,108 $ 31,031
AISC, After By-product Credits
$ 10,468 $ 1,178 $ (734
)
$ 22,023 $ 48,167 $ 70,190
Divided by ounces produced
2,344 88 880 3,312 44
Cash Cost, Before By-product Credits, per Ounce
$ 20.75 $ 27.44 $ 6.07 $ 17.03 $ 753.70
By-product credits per ounce
(20.90
)
(15.84
)
(9.19
)
(17.66
)
(3.65
)

Cash Cost, After By-product Credits, per Ounce
$ (0.15
)
$ 11.60 $ (3.12
)
$ (0.63
)
$ 750.05
AISC, Before By-product Credits, per Ounce
$ 25.37 $ 29.21 $ 8.36 $ 24.31 $ 1,094.86
By-product credits per ounce
(20.90
)
(15.84
)
(9.19
)
(17.66
)
(3.65
)

AISC, After By-product Credits, per Ounce
$ 4.47 $ 13.37 $ (0.83
)
$ 6.65 $ 1,091.21

(2)

~~Table of Contents~~AISC, Before By-product Credits for our consolidated silver properties includes corporate costs for general and administrative expense and sustaining capital.

In thousands (except per ounce amounts)

Three Months Ended September 30, 2016

Greens
Creek

Lucky
Friday⁽²⁾

San
Sebastian

Corporate⁽³⁾

Total
Silver

Casa
Berardi
(Gold)

Total

Cost of sales and other direct production costs and depreciation, depletion and amortization
$ 58,397 $ 19,484 $ 6,532 $ 84,413 $ 36,295 $ 120,708
Depreciation, depletion and amortization
(16,091
)
(2,946
)
(677
)
(19,714
)
(10,465
)
(30,179
)
Treatment costs
15,114 5,211 348 20,673 218 20,891
Change in product inventory
(10,407
)
(46
)
930 (9,523
)
3,460 (6,063
)
Reclamation and other costs
2,273 (171
)
(140
)
1,962 (115
)
1,847
Cash Cost, Before By-product Credits ⁽¹⁾
49,286 21,532 6,993 77,811 29,393 107,204
Reclamation and other costs
682 165 42 889 117 1,006
Exploration
349 — 1,051 421 1,821 655 2,476
Sustaining capital
14,162 9,725 506 76 24,469 16,078 40,547
General and administrative
11,155 11,155 11,155
AISC, Before By-product Credits ⁽¹⁾
64,479 31,422 8,592 116,145 46,243 162,388
By-product credits:

Zinc
(17,152
)
(4,201
)
(21,353
)
(21,353
)
Gold
(13,807
)
(10,922
)
(24,729
)
(24,729
)
Lead
(6,577
)
(9,284
)
(15,861
)
(15,861
)
Silver
(162
)
(162
)
Total By-product credits
(37,536
)
(13,485
)
(10,922
)
(61,943
)
(162
)
(62,105
)
Cash Cost, After By-product Credits
$ 11,750 $ 8,047 $ (3,929
)
$ 15,868 $ 29,231 $ 45,099
AISC, After By-product Credits
$ 26,943 $ 17,937 $ (2,330
)
$ 54,202 $ 46,081 $ 100,283
Divided by ounces produced
2,445 887 976 4,308 32
Cash Cost, Before By-product Credits, per Ounce
$ 20.15 $ 24.26 $ 7.16 $ 18.06 $ 920.00
By-product credits per ounce
(15.35
)
(15.19
)
(11.19
)
(14.38
)
(5.07
)

Cash Cost, After By-product Credits, per Ounce
$ 4.80 $ 9.07 $ (4.03
)
$ 3.68 $ 914.93
AISC, Before By-product Credits, per Ounce
$ 26.37 $ 35.41 $ 8.80 $ 26.96 $ 1,447.40
By-product credits per ounce
(15.35
)
(15.19
)
(11.19
)
(14.38
)
(5.07
)

AISC, After By-product Credits, per Ounce
$ 11.02 $ 20.22 $ (2.39
)
$ 12.58 $ 1,442.33

(3)

~~Table~~During the three months ended March 31, 2023, the Company completed the necessary studies to conclude usage of ~~Contents~~the F-160 pit as a tailings storage facility after mining is complete. As a result, a portion of the mining costs have been excluded from Cash Cost, Before By-product Credits and AISC, Before By-product Credits.

In thousands (except per ounce amounts)

Nine Months Ended September 30, 2017

Greens
Creek

Lucky
Friday⁽²⁾

San
Sebastian

Corporate⁽³⁾

Total
Silver

Casa
Berardi
(Gold)

Total

Cost of sales and other direct production costs and depreciation, depletion and amortization
$ 140,241 $ 14,542 $ 18,377 $ 173,160 $ 134,742 $ 307,902
Depreciation, depletion and amortization
(39,442
)
(2,433
)
(2,036
)
(43,911
)
(39,454
)
(83,365
)
Treatment costs
37,621 4,257 906 42,784 1,774 44,558
Change in product inventory
5,398 1,811 (192
)
7,017 881 7,898
Reclamation and other costs
(1,474
)
(163
)
(1,089
)
(2,726
)
(354
)
(3,080
)
Cash Cost, Before By-product Credits ⁽¹⁾
142,344 18,014 15,966 176,324 97,589 273,913
Reclamation and other costs
1,999 217 351 2,567 353 2,920
Exploration
3,339 (1
)
4,984 1,307 9,629 3,029 12,658
Sustaining capital
24,895 4,109 2,379 2,275 33,658 38,245 71,903
General and administrative
29,044 29,044 29,044
AISC, Before By-product Credits ⁽¹⁾
172,577 22,339 23,680 251,222 139,216 390,438
By-product credits:

Zinc
(72,472
)
(4,353
)
(76,825
)
(76,825
)
Gold
(42,675
)
(24,032
)
(66,707
)
(66,707
)
Lead
(22,696
)
(8,599
)
(31,295
)
(31,295
)
Silver
(450
)
(450
)
Total By-product credits
(137,843
)
(12,952
)
(24,032
)
(174,827
)
(450
)
(175,277
)
Cash Cost, After By-product Credits
$ 4,501 $ 5,062 $ (8,066
)
$ 1,497 $ 97,139 $ 98,636
AISC, After By-product Credits
$ 34,734 $ 9,387 $ (352
)
$ 76,395 $ 138,766 $ 215,161
Divided by ounces produced
6,206 769 2,498 9,473 113
Cash Cost, Before By-product Credits, per Ounce
$ 22.94 $ 23.42 $ 6.39 $ 18.62 $ 862.02
By-product credits per ounce
(22.21
)
(16.84
)
(9.62
)
(18.46
)
(3.97
)

Cash Cost, After By-product Credits, per Ounce
$ 0.73 $ 6.58 $ (3.23
)
$ 0.16 $ 858.05
AISC, Before By-product Credits, per Ounce
$ 27.81 $ 29.05 $ 9.48 $ 26.52 $ 1,229.72
By-product credits per ounce
(22.21
)
(16.84
)
(9.62
)
(18.46
)
(3.97
)

AISC, After By-product Credits, per Ounce
$ 5.60 $ 12.21 $ (0.14
)
$ 8.06 $ 1,225.75

(4)

~~Table~~Other includes $0.9 million and $1.7 million of ~~Contents~~total cost of sales for the three and nine months ended September 30, 2023, respectively, and $0.1 million of total cost of sales for the three and nine months ended September 30, 2022, related to the environmental services business acquired as part of the Alexco acquisition.

In thousands (except per ounce amounts)

Nine Months Ended September 30, 2016

Greens
Creek

Lucky
Friday⁽²⁾

San
Sebastian

Corporate⁽³⁾

Total
Silver

Casa
Berardi
(Gold)

Total

Cost of sales and other direct production costs and depreciation, depletion and amortization
$ 146,984 $ 56,696 $ 23,435 $ 227,115 $ 106,639 $ 333,754
Depreciation, depletion and amortization
(40,746
)
(8,775
)
(2,508
)
(52,029
)
(32,563
)
(84,592
)
Treatment costs
46,069 15,323 1,193 62,585 627 63,212
Change in product inventory
(6,083
)
(1,102
)
1,743 (5,442
)
4,212 (1,230
)
Reclamation and other costs
348 (556
)
(1,583
)
(1,791
)
(344
)
(2,135
)
Cash Cost, Before By-product Credits ⁽¹⁾
146,572 61,586 22,280 230,438 78,571 309,009
Reclamation and other costs
2,045 495 126 2,666 345 3,011
Exploration
1,368 — 2,349 1,286 5,003 2,280 7,283
Sustaining capital
35,199 32,203 1,494 486 69,382 48,860 118,242
General and administrative
31,728 31,728 31,728
AISC, Before By-product Credits ⁽¹⁾
185,184 94,284 26,249 339,217 130,056 469,273
By-product credits:

Zinc
(52,104
)
(10,685
)
(62,789
)
(62,789
)
Gold
(42,017
)
(33,961
)
(75,978
)
(75,978
)
Lead
(19,598
)
(25,485
)
(45,083
)
(45,083
)
Silver
(409
)
(409
)
Total By-product credits
(113,719
)
(36,170
)
(33,961
)
(183,850
)
(409
)
(184,259
)
Cash Cost, After By-product Credits
$ 32,853 $ 25,416 $ (11,681
)
$ 46,588 $ 78,162 $ 124,750
AISC, After By-product Credits
$ 71,465 $ 58,114 $ (7,712
)
$ 155,367 $ 129,647 $ 285,014
Divided by ounces produced
7,021 2,722 3,434 13,177 104
Cash Cost, Before By-product Credits, per Ounce
$ 20.88 $ 22.63 $ 6.49 $ 17.49 $ 753.45
By-product credits per ounce
(16.20
)
(13.29
)
(9.89
)
(13.95
)
(3.92
)

Cash Cost, After By-product Credits, per Ounce
$ 4.68 $ 9.34 $ (3.40
)
$ 3.54 $ 749.53
AISC, Before By-product Credits, per Ounce
$ 26.38 $ 34.64 $ 7.64 $ 25.74 $ 1,247.15
By-product credits per ounce
(16.20
)
(13.29
)
(9.89
)
(13.95
)
(3.92
)

AISC, After By-product Credits, per Ounce
$ 10.18 $ 21.35 $ (2.25
)
$ 11.79 $ 1,243.23

~~(1)~~

Includes all direct and indirect operating costs related to the physical activities of producing metals, including mining, processing and other plant costs, third-party refining and marketing expense, on-site general and administrative costs, royalties and mining production taxes, before by-product revenues earned from all metals other than the primary metal produced at each unit. AISC, Before By-product Credits also includes on-site exploration, reclamation, and sustaining capital costs.

~~(2)~~

The unionized employees at Lucky Friday have been on strike since March 13, 2017, and production at Lucky Friday has been limited since that time. For the first nine months of 2017, costs related to suspension of full production totaling approximately $11.1 million, along with $3.3 million in non-cash depreciation expense for that period, have been excluded from the calculations of cost of sales and other direct production costs and depreciation, depletion and amortization, Cash Cost, Before By-product Credits, Cash Cost, After By-product Credits, AISC, Before By-product Credits, and AISC, After By-product Credits.

~~(3)~~

~~AISC, Before By-product Credits for our consolidated silver properties includes corporate costs for general and administrative expense, exploration and sustaining capital.~~

(5)

~~Table~~Prior year presentation has been adjusted to conform with current year presentation to eliminate exploration costs from the calculation of ~~Contents~~AISC, Before By-product Credits as exploration is an activity directed at the Corporate level to find new mineral reserve and resource deposits, and therefore we believe it is inappropriate to include exploration costs in the calculation of AISC, Before By-product Credits for a specific mining operation.

(6)

Keno Hill is in the ramp-up phase of production and is excluded from the calculation of total cost of sales, Cash Cost, Before By-product Credits, Cash Cost, After By-product Credits, AISC, Before By-product Credits, and AISC, After By-product Credits.

(7)

Casa Berardi operations were suspended in June 2023 in response to the directive of the Quebec Ministry of Natural Resources and Forests as a result of fires in the region. Suspension costs amounted to $nil and $2.2 million for the three and nine months ended September 30, 2023, respectively, and are excluded from the calculation of total cost of sales, Cash Cost, Before By-product Credits, Cash Cost, After By-product Credits, AISC, Before By-product Credits, and AISC, After By-product Credits.

(8)

Lucky Friday operations were suspended in August 2023 following the underground fire in the #2 shaft secondary egress. The portion of cash costs, sustaining costs, by-product credits, and silver production incurred since the suspension are excluded from the calculation of total cost of sales, Cash Cost, Before By-product Credits, Cash Cost, After By-product Credits, AISC, Before By-product Credits, and AISC, After By-product Credits.

Financial Liquidity and Capital Resources

~~Our liquid assets include (in millions):~~We have a disciplined cash management strategy of maintaining financial flexibility to execute our capital priorities and provide long-term value to our stockholders. Consistent with that strategy, we aim to maintain an acceptable level of net debt and sufficient liquidity to fund debt service costs, operations, capital expenditures, exploration and pre-development projects, while returning cash to stockholders through dividends and potential share repurchases.

September 30, 2017

December 31, 2016

Cash and cash equivalents held in U.S. dollars
$ 146.4 $ 156.1
Cash and cash equivalents held in foreign currency
26.5 13.7
Total cash and cash equivalents
172.9 169.8
Marketable debt securities - current
33.0 29.1
Marketable equity securities - non-current
7.1 5.0
Total cash, cash equivalents and investments
$ 213.0 $ 203.9

~~Cash~~At September 30, 2023, we had $100.7 million in cash and cash equivalents, ~~increased by $3.1~~of which $7.1 million ~~in the first nine months of 2017, as discussed below. Cash~~was held in foreign ~~currencies represents~~subsidiaries' local currency that we anticipate utilizing for near-term operating, exploration or capital costs by those foreign subsidiaries. We also have USD cash and cash equivalent balances ~~in Canadian dollars and Mexican pesos,~~held by our foreign subsidiaries that, if repatriated, may be subject to withholding taxes. We expect that there would be no additional tax burden upon repatriation after considering the cash cost associated with the ~~$12.8 million increase in the first nine months of 2017 resulting~~withholding taxes. We believe that our liquidity and capital resources from ~~increases in both currencies held. Current marketable debt securities increased by $3.9 million (discussed below) and non-current marketable equity securities increased by $2.1 million (see~~ ~~Note 2~~ of ~~Notes to Condensed Consolidated Financial Statements (Unaudited)~~ ~~for more information).~~

~~As discussed in~~ ~~Note 9~~ of ~~Notes to Condensed Consolidated Financial Statements (Unaudited),~~ ~~on April 12, 2013, we completed an offering of Senior Notes in the total principal amount of US$500 million, which have a total principal balance of $506.5 million as of September 30, 2017~~. ~~The Senior Notes~~our U.S. operations are due May 1, 2021 and bear interest at a rate of 6.875% per year from the most recent payment date to which interest has been paid or provided for. Interest on the Senior Notes is payable on May 1 and November 1 of each year, commencing November 1, 2013, and we have made all interest payments payable to date.

In the third quarter of 2015, we made a development decision to mine near surface, high grade portions of the silver and gold deposits at our San Sebastian project in Mexico and commenced ore production at the end of 2015. As a result, San Sebastian has generated positive cash flows since the start of production there. In January 2017, we initiated work to develop and rehabilitate underground access which, upon completion, is expected to allow us to mine deeper portions of the deposits at San Sebastian. We currently anticipate San Sebastian will continue to generate positive cash flows until early or mid-2020. However, our costs could change, and our ability to generate cash flow at San Sebastian could be impacted by changes in precious metals prices or other factors, and there can be no assurance that we will be able to develop and operate San Sebastian as anticipated.

~~As further discussed in the~~ ~~Lucky Friday Segment~~ section above, the union employees at Lucky Friday have been on strike since March 13, 2017. Production at Lucky Friday was suspended from the start of the strike until July 2017, with limited production resuming at that time. We cannot predict how long the strike will last or whether an agreement will be reached. We expect to incur cash expenditures of approximately $1.0 million to $1.5 million per month to advance engineering and infrastructure for the restart of full production, in addition to costs related to limited interim production. As a result of the strike or other related events, operations at Lucky Friday could continue to be disrupted, which could adversely affect our financial condition and results of operations.

~~As discussed in~~ ~~Note 8~~ of ~~Notes to Condensed Consolidated Financial Statements (Unaudited)~~, in February 2016 we entered into an equity distribution agreement under which we may issue and sell shares of our common stock from time to time having an aggregate offering price of up to $75 million, with the net proceeds available for general corporate purposes. Whether or not we engage in sales from time to time may depend on a variety of factors, including share price, our cash resources, customary black-out restrictions, and whether we have any material inside information, and the agreement can be terminated by us at any time. As of September 30, 2017, we had sold 4,608,847 shares through the at-the-market program for net proceeds of $17.7 million, including 1,828,760 shares sold in the first nine months of 2017 for total proceeds of approximately $9.6 million. In July 2017, we used $5.7 million of the proceeds from shares sold in the second quarter of 2017adequate to fund ~~contributions to~~ our ~~defined benefit pension plans.~~U.S. operations and corporate activities.

~~Table of Contents~~

Pursuant to our common stock dividend policy described inNote 811 of Notes to ~~Condensed~~ Consolidated Financial Statements ~~(Unaudited)~~,in our ~~Board~~2022 Form 10-K, our board of ~~Directors~~directors declared and paid dividends on our common stock ~~totaling $3.0~~of $3.8 million in each of the first and ~~$2.9~~second quarters, $3.9 million in the third quarter of 2023 and $3.4 million in each of the first, ~~nine months~~second and third quarters of ~~2017 and 2016, respectively. On November 7, 2017, our Board of Directors declared a dividend on common stock totaling $1.0 million payable in December 2017.~~2022. Our dividend policy has a ~~silver-price-linked~~silver-linked component which ties the amount of declared common stock dividends to our realized silver price for the preceding quarter. Another component of our common stock dividend policy anticipates paying an annual minimum dividend.

For illustrative purposes only, the table below summarizes potential dividend amounts under our dividend policy.


Quarterly Average Realized Silver Price ($ per ounce)		Quarterly Silver-Linked Dividend ($ per share)	Annualized Silver-Linked Dividend ($ per share)	Annualized Minimum Dividend ($ per share)	Annualized Dividends per Share: Silver-Linked and Minimum ($ per share)
Less than $20		$—	$—	$0.015	$0.015
$	20	$0.0025	$0.01	$0.015	$0.025
$	25	$0.010	$0.04	$0.015	$0.055
$	30	$0.015	$0.06	$0.015	$0.075
$	35	$0.025	$0.10	$0.015	$0.115
$	40	$0.035	$0.14	$0.015	$0.155
$	45	$0.045	$0.18	$0.015	$0.195
$	50	$0.055	$0.22	$0.015	$0.235

The declaration and payment of dividends on our common stock is at the sole discretion of our board of directors, and there can be no assurance that we will continue to declare and pay common stock dividends in the future.

~~On May 8, 2012, we announced that~~Pursuant to our ~~board of directors approved a~~ stock repurchase ~~program.~~ ~~Under the~~ program described in Note 11 of Notes to Consolidated Financial Statements in our 2022 Form 10-K, we are authorized to repurchase up to 20 million shares of our outstanding common stock from time to time in open market or privately negotiated transactions, depending on prevailing market conditions and other factors. The repurchase program may be modified, suspended or discontinued by us at any time. Whether or not we engage in repurchases from time to time may depend on a variety of factors, including not only price and cash resources, but customary black-out restrictions, whether we have any material inside information, limitations on share repurchases or cash usage that may be imposed by our credit agreement or in connection with issuances of securities, alternative uses for cash, applicable law, and other investment opportunities from time to time. As of September 30, ~~2017,~~2023 and December 31, 2022, 934,100 shares ~~have~~had been purchased in prior periods at an average price of $3.99 per share, leaving 19.1 million shares that may yet be purchased under the program. ~~The closing price~~We have not repurchased any shares since June 2014.

As discussed in Note 6 of Notes to Condensed Consolidated Financial Statements (Unaudited) 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 in “at-the-market” offerings. 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 share price, our cash resources, customary black-out restrictions, and whether we have any material inside information. The equity distribution agreement can be terminated by us at ~~November 3, 2017, was $4.45 per share.~~any time. Any sales of shares under that agreement are registered under the Securities Act of 1933, as amended, pursuant to a shelf registration statement on Form S-3. During the three months ended September 30, 2023, we did not sell any shares under the agreement. During the nine months ended September 30, 2023, we sold 4,253,334 shares under the agreement for proceeds of $25.9 million, net of commissions and fees of $0.4 million.

As a result of our current cash balances, the performance of our current and expected operations, current metals prices, proceeds from potential at-the-market sales of common stock, and availability under our Credit Agreement, we believe we will be able to meet our obligations and other potential cash requirements during the next 12 months and beyond. Our obligations and other uses of cash may include, but are not limited to: debt service obligations related to the Senior Notes and IQ Notes; principal and interest payments

under our Credit Agreement; care-and-maintenance; capital expenditures at our operations; potential acquisitions of other mining companies or properties; regulatory matters; litigation; potential repurchases of our common stock under the program described above; and payment of dividends on common stock, if declared by our board of directors.

We currently estimate a range of approximately $225to $235million will be spent in 2023 on capital expenditures, primarily for equipment, infrastructure, and development at our mines, including $161.3 million already incurred as of September 30, 2023, before any lease financing. We also estimate exploration and pre-development expenditures will total approximately $32.5 million in 2023, including $25.5 million already incurred as of September 30, 2023. Our expenditures for these items and our related plans for 2023 may change based upon our financial position, metals prices, and other considerations. Our ability to fund the activities described above will depend on our operating performance, metals prices, our ability to estimate revenues and costs, sources of liquidity available to us, including the revolving credit facility, and other factors. A sustained downturn in metals prices, significant increase in operational or capital costs or other uses of cash, our inability to access the credit facility or the sources of liquidity discussed above, or other factors beyond our control could impact our plans.

We may defer some capital investment and/or exploration and pre-development activities, engage in asset sales or secure additional capital if necessary to maintain liquidity. We also may pursue additional acquisition opportunities, which could require additional equity issuances or other forms of financing. There can be no assurance that such financing will be available to us.

~~As a result of our current cash balances, the performance of our current~~Our liquid assets include (in millions):


	September 30, 2023		December 31, 2022
Cash and cash equivalents held in U.S. dollars	$	93.6	$	86.8
Cash and cash equivalents held in foreign currency		7.1		17.9
Total cash and cash equivalents		100.7		104.7
Marketable equity securities - non-current		16.6		24.0
Total cash, cash equivalents and investments	$	117.3	$	128.7

Cash and expected operations, current metals prices, proceeds from potential at-the-market sales of common stock, and availability of approximately $97 million of our revolving credit facility, we believe our cash, cash equivalents investments, projected cash from operations, and availability of financing, if needed, will be adequate to meet our obligations and other potential cash requirements during the next 12 months. Our obligations and other uses of cash may include, but are not limited to: debt service obligations related to the Senior Notes, capital expenditures at our operations, potential acquisitions of other mining companies or properties, regulatory matters, litigation, potential repurchases of our common stock under the program described above, and payment of dividends on common stock, if declareddecreased by ~~our board of directors.~~ ~~We estimate capital expenditures will total between $105 and $110~~$4.0 million in 2017, including $70.4 million already incurred as of September 30, 2017. We estimate combined exploration and pre-development expenditures will total between $25 million and $30 million in 2017, including $21.7 million already incurred as of September 30, 2017. However, capital, exploration, and pre-development expenditures may change based upon our financial position, metals prices, and other considerations. Our ability to fund the activities described above will depend on our operating performance, metals prices, our costs (and our ability to estimate future costs), sources of liquidity available to us, and other factors. A sustained downturn in metals prices or significant increase in operational or capital costs, other uses of cash, or other factors beyond our control could impact our plans.

Nine Months Ended

September 30,
2017

September 30,
2016

Cash provided by operating activities (in millions)
$ 74.1 $ 173.1

~~Table of Contents~~

~~Cash provided by operating activities~~ in the first nine months of ~~2017~~2023. Cash held in foreign currencies represents balances in Canadian dollars and Mexican Pesos. The value of non-current marketable equity securities decreased by ~~$99.0~~$7.4 million.


	Nine Months Ended
	September 30, 2023		September 30, 2022
Cash provided by operating activities (in millions)	$	74.6	$	53.8

Cash provided by operating activities for the nine months ended September 30, 2023 of $74.6 million represented a $20.8 million increasecompared to the $53.8 million provided in the same period for 2022. $42.6 million of the variance was attributable to a higher income adjusted for non cash items in the nine months ended September 30, 2023 reflecting higher realized prices for silver, gold and lead, partially offset by higher total cost of sales. The remaining variance was attributable to changes in net working capital resulting from higher vendor payments and changes in fair value of the net hedge book.


	Nine Months Ended
	September 30, 2023			September 30, 2022
Cash used in investing activities (in millions)	$	(162.9	)	$	(127.7	)

During the nine months ended September 30, 2023, we invested $161.3 million in capital expenditures, an increase of $68.0 million compared to the same period in ~~2016~~2022. The variance was primarily due to ~~lower income, as adjusted for non-cash items, resulting primarily from reduced gross profit~~$32.1 million invested at ~~our San Sebastian,~~Keno Hill during the nine months ended September 30, 2023 and increased capital spending at Casa Berardi and Lucky Friday units. In addition, working capital and other operating asset and liability changes resulted in a net cash flow decrease of $26.4 million in the first nine months of 2017 compared to a net increase of $11.6 million in the first nine months of 2016. The $38.0 million variance in working capital changes is primarily attributable to (i) estimated income tax payments in Mexico in 2017, (ii) higher product inventory due primarily to the timing of shipments at Greens Creek and the strike at Lucky Friday, (iii) lower accruals for incentive compensation, and (iv) reduced accounts payable at Lucky Friday due to completion of the #4 Shaft and the strike. Those factors were partially offset by lower accounts receivable, also due to the timing of shipments at Greens Creek and the strike at Lucky Friday. In addition, in the third quarter of 2016, we reached a settlement on the insurance policy for reclamation at the Troy mine resulting in cash proceeds to us of $16.0 million, which was partially offset by payment of $6.0 million in August 2016 by one of our subsidiaries for settlement of its liability for response costs at a CERCLA/Superfund site.

Nine Months Ended

September 30,
2017

September 30,
2016

Cash used in investing activities (in millions)
$ (69.2
)
$ (153.3
)

During ~~the first nine months of 2017, we invested $70.4 million in capital expenditures, not including $6.4 million in non-cash capital lease additions, a decrease of $49.8 million compared to~~ the same period in ~~2016 primarily due~~2022, we made a pre-acquisition advance of $25.0 million to ~~lower costs for (i) the #4 Shaft project, which was completed in January 2017, (ii) construction~~Alexco and generated proceeds of ~~the tailings facility at Greens Creek, and (iii) development~~$9.4 million upon disposal of ~~the EMCP pit at Casa Berardi.~~ In the first nine months of 2017 and 2016, we purchased bonds having maturities of greater than 90 days and less than 365 days with a cost basis of $35.3 million and $31.9 million, respectively, and bonds valued at $31.2 million and $7.2 million matured during the first nine months of 2017 and 2016, respectively. We purchased marketable equity securities having a cost basis of $1.6 million and $0.9 million during the first nine months of 2017 and 2016, respectively. an investment.


	Nine Months Ended
	September 30, 2023		September 30, 2022
Cash provided by financing activities (in millions)	$	84.1	$	9.6

During the ~~first~~ nine months of 2017, we received $5.6 million in insurance proceeds related collapse of the mill building at the Troy mine in February 2017 due to snow. We recognized a cash outflow for the acquisition of Mines Management, net of cash acquired, of $3.9 million in September 2016. We reduced restricted cash by $1.1 million during the first nine months of 2017 as a result of replacing cash collateral for future reclamation costs with non-cash bonding. During the first nine months of 2016, we incurred an increase in restricted cash of $3.9 million related to the settlement of a CERCLA claim for response costs at a CERCLA/Superfund site by one of our subsidiaries.

Nine Months Ended

September 30,
2017

September 30,
2016

Cash used in financing activities (in millions)
$ (2.8
)
$ (7.8
)

During the first nine months of 2017 and 2016, we received $9.6 million and $8.1 million, respectively, in net proceeds from the sale of shares of our common stock under the equity distribution agreement discussed above. We made repayments on our capital leases of $5.1 million and $6.3 million in the nine-month periods ended September 30, ~~2017 and 2016, respectively. We also made repayments~~2023, we had net draws on our revolving credit facility resulting in $80 million outstanding at an interest rate of ~~debt totaling $0.5 million and $1.8 million in~~8% on September 30, 2023. During the ~~first~~ nine months ~~of 2017~~ended September 30, 2023 and ~~2016, respectively. During the first nine months of 2017 and 2016,~~2022, we paid cash dividends on our common and preferred stock totaling ~~$3.0~~ $11.8million and ~~$2.9~~$10.5 million, respectively, and cash dividends of $0.4 million in each period on our Series B Preferred Stock. We acquired treasury shares for $3.0 million and $4.4 million in the first nine months of 2017 and 2016, respectively, resulting primarily from our employees' elections to utilize net share settlement to satisfy their tax withholding obligations related to incentive compensation paid in stock and vesting of restricted stock units. See ~~Note 8~~ of ~~Notes to Condensed Consolidated Financial Statements (Unaudited)~~ ~~for more information.~~

~~Exchange rate fluctuations between the U.S. dollar and the Canadian dollar and Mexican peso resulted in increases in our cash balance of $1.1 million and $0.6 million, respectively, during~~respectively. During the nine months ended September 30, ~~2017~~2023 and ~~2016.~~2022, we issued stock under our ATM program described above for net proceeds of $25.9 million and $4.5 million, respectively. We made repayments on our finance leases of $8.0 million and $5.2 million in the nine months ended September 30, 2023 and 2022, respectively.

~~Table of Contents~~

Contractual Obligations, Contingent Liabilities and Commitments

The table below presents our fixed, non-cancelable contractual obligations and commitments primarily related to our Senior Notes, IQ Notes, credit facility, outstanding purchase orders, certain capital expenditures ~~our credit facility~~ and lease arrangements as of September 30, ~~2017~~2023 (in thousands):


	Payments Due By Period
	Less than 1 year		1-3 years		4-5 years		More than 5 years		Total
Purchase obligations (1)	$	40,326	$	—	$	—	$	—	$	40,326
Credit facility(2)		80,474		1,302		—		—		81,776
Finance lease commitments (3)		9,313		15,303		7,545		—		32,161
Operating lease commitments (4)		1,802		2,550		2,280		5,807		12,439
Senior Notes (5)		34,438		68,876		522,350		—		625,664
IQ Notes (6)		2,324		37,468		—		—		39,792
Total contractual cash obligations	$	168,677	$	125,499	$	532,175	$	5,807	$	832,158

Payments Due By Period

Less than 1
year

1-3 years

4-5 years

More than
5 years

Total

Purchase obligations ⁽¹⁾
$ 23,100 $ — $ — $ — $ 23,100
Commitment fees ⁽²⁾
500 942 — — 1,442
Contractual obligations ⁽³⁾
471 — — — 471
Capital lease commitments ⁽⁴⁾
6,293 6,548 1,260 — 14,101
Operating lease commitments ⁽⁵⁾
2,993 2,337 1,377 159 6,866
Supplemental executive retirement plan ⁽⁶⁾
444 1,061 1,439 3,730 6,674
Senior Notes ⁽⁷⁾
34,822 69,644 526,813 — 631,279
Total contractual cash obligations
$ 68,623 $ 80,532 $ 530,889 $ 3,889 $ 683,933

~~(1)~~

~~Consists of open purchase orders of approximately $20.9 million at the Greens Creek unit, $0.3 million at the Lucky Friday unit and $1.9 million as the Casa Berardi unit.~~

~~(2)~~

We have a $100 million revolving credit agreement under which we are required to pay a standby fee of 0.5% per annum on undrawn amounts under the revolving credit agreement. There was no amount due under the revolving credit agreement as of September ~~30, 2017, and the amounts above assume no amounts will be due during the agreement's term. For more information on our credit facility, see~~ ~~Note 9~~ of ~~Notes to Condensed Consolidated Financial Statements (Unaudited)~~.

~~(3)~~

~~As of September~~ ~~30, 2017, we were committed to approximately $0.5 million for various items at Greens Creek.~~

~~(4)~~

~~Includes scheduled capital lease payments of $2.9 million, $3.8 million, and $7.4 million (including interest) for equipment at our Greens Creek, Lucky Friday and Casa Berardi units, respectively.~~ ~~These leases have fixed payment terms and contain bargain purchase options at the end of the lease periods (see~~ ~~Note 9~~ of ~~Notes to Condensed Consolidated Financial Statements (Unaudited)~~ ~~for more information).~~

~~(5)~~

~~We enter into operating leases in the normal course of business.~~ Substantially all lease agreements have fixed payment terms based on the passage of time. Some lease agreements provide us with the option to renew the lease or purchase the leased property. Our future operating lease obligations would change if we exercised these renewal options and if we entered into additional operating lease arrangements.

~~(6)~~

~~These amounts represent our estimate of the future funding requirements for the supplemental executive retirement plan.~~ ~~See~~ ~~Note 7~~ of ~~Notes to Condensed Consolidated Financial Statements (Unaudited)~~ ~~for more information.~~

~~(7)~~

~~On April 12, 2013, we completed an offering of $500 million in aggregate principal amount of our Senior Notes due May 1, 2021. See~~ ~~Note 9~~ of ~~Notes to Condensed Consolidated Financial Statements (Unaudited)~~ for more information. The Senior Notes bear interest at a rate of 6.875% per year from the most recent payment date to which interest has been paid or provided for. Interest on the Senior Notes is payable on May 1 and November 1 of each year, commencing November 1, 2013, and we have made all interest payments payable to date. Since the initial offering, we have issued an additional $6.5 million in aggregate principal amount of the Senior Notes to fund obligations under our defined benefit pension plans. See ~~Note 7~~ ~~and~~ ~~Note 9~~ of ~~Notes to Condensed Consolidated Financial Statements (Unaudited)~~ ~~for more information.~~

(1)

~~Table~~Consists of ~~Contents~~open purchase orders and commitments of approximately $15.0 million, $9.7million, $10.3 million, $3.5 million and $1.8 million for various capital and non-capital items at Greens Creek, Lucky Friday, Keno Hill, Casa Berardi and Nevada Operations, respectively.

(2)

The Credit Agreement provides for a $150 million revolving credit facility. We had net draws of $80 million and $6.7 million in letters of credit outstanding as of September 30, 2023. The amounts in the table above assume no additional amounts will be drawn in future periods, and include only the standby fee on the current undrawn balance and accrued interest. For more information on our credit facility, see Note 7 of Notes to Condensed Consolidated Financial Statements (Unaudited).

(3)

Includes scheduled finance lease payments of $8.9 million, $6.3 million, $8.4 million, and $8.6 million for equipment at Greens Creek, Lucky Friday, Casa Berardi, and Keno Hill, respectively.

(4)

We enter into operating leases in the normal course of business. Substantially all lease agreements have fixed payment terms based on the passage of time. Some lease agreements provide us with the option to renew the lease or purchase the leased property. Our future operating lease obligations would change if we exercised these renewal options and if we entered into additional operating lease arrangements.

(5)

On February 19, 2020, we completed an offering of $475 million in aggregate principal amount of our Senior Notes due February 15, 2028. The Senior Notes bear interest at a rate of 7.25% per year, with interest payable on February 15 and August 15 of each year. See Note 7 of Notes to Condensed Consolidated Financial Statements (Unaudited) for more information.

(6)

On July 9, 2020, we entered into a note purchase agreement pursuant to which we issued our IQ Notes for CAD$50 million (approximately USD$36.8 million at the time of the transaction) in aggregate principal amount. The IQ Notes bear interest on amounts outstanding at a rate of 6.515% per year, payable on January 9 and July 9 of each year. See Note 7 of Notes to Condensed Consolidated Financial Statements (Unaudited) for more information.

We record liabilities for costs associated with mine closure, reclamation of land and other environmental matters. At September 30, ~~2017,~~2023, our liabilities for these matters totaled ~~$87.3~~$120.0 million. Future expenditures related to closure, reclamation and environmental expenditures at our sites are difficult to estimate, ~~and~~although we anticipate we will incur expenditures relating to these obligations over the next 30 years. For additional information relating to ~~certain of~~ our environmental obligations, see Note 410 of Notes to Condensed Consolidated Financial Statements (Unaudited).

Critical Accounting Estimates

There have been no significant changes to the critical accounting estimates disclosed in Management's Discussion and Analysis of Financial Condition and Results of Operations in our 2022 Form 10-K.

Off-Balance Sheet Arrangements

At September 30, ~~2017,~~2023, we had no existing off-balance sheet arrangements, as defined under SEC regulations, that have or are reasonably likely to have a current or future effect on our financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that ~~would be~~are material to investors.

~~Critical Accounting Estimates~~Guarantor Subsidiaries

~~Our significant accounting policies~~Presented below are ~~described in~~ ~~Part IV~~, Hecla’s unaudited interim condensed consolidating financial statements as required by Rule 3-10 of Regulation S-X of the Securities Exchange Act of 1934, as amended, resulting from the guarantees by certain of Hecla's subsidiaries of the Senior Notes and IQ Notes (see Note 17 of Notes to Condensed Consolidated Financial Statements ~~in our annual report filed on Form 10-K~~ (Unaudited) for ~~the year ended December 31, 2016~~more information). ~~As described in~~ ~~Note 1~~ The Guarantors consist of the following of Hecla's 100%-owned subsidiaries: Hecla Limited; Silver Hunter Mining Company; Rio Grande Silver, Inc.; Hecla MC Subsidiary, LLC; Hecla Silver Valley, Inc.; Burke Trading, Inc.; Hecla Montana, Inc.; Revett Silver Company; RC Resources, Inc.; Troy Mine Inc.; Revett Exploration, Inc.; Revett Holdings, Inc.; Mines Management, Inc.; Newhi, Inc.; Montanore Minerals Corp.; Hecla Alaska LLC; Hecla Greens Creek Mining Company; Hecla Admiralty Company; Hecla Juneau Mining Company; Klondex Holdings Inc.; Klondex Gold & Silver Mining Co.; Klondex Midas Holdings Limited; Klondex Aurora Mine Inc.; Klondex Hollister Mine Inc.; Hecla Quebec, Inc.; and Alexco Resource Corp. We completed the offering of the Senior Notes on February 19, 2020 under our shelf registration statement previously filed with the SEC. We issued the IQ Notes in four equal tranches between July and October 2020.

•

Investments in subsidiaries. The acquisition of a company results in an investment in debt or equity capital on the records of the parent company and a contribution to debt or equity capital on the records of the subsidiary. Such investments and capital contributions are eliminated in consolidation.

•

Capital contributions. Certain of Hecla's subsidiaries do not generate cash flow, either at all or that is sufficient to meet their capital needs, and their cash requirements are routinely met with inter-company advances from their parent companies. Generally on an annual ~~report, we are required~~basis, when not otherwise intended as debt, the boards of directors of such parent companies declare contributions of capital to ~~make estimates~~their subsidiary companies, which increase the parents' investment and ~~assumptions that affect~~ the ~~reported amounts~~subsidiaries' additional paid-in capital. Occasionally, parent companies may also subscribe for additional common shares of their subsidiaries. In consolidation, investments in subsidiaries and related ~~disclosures~~additional paid-in capital are eliminated.

•

Debt. At times, inter-company debt agreements have been established between certain of ~~assets, liabilities, revenue,~~Hecla's subsidiaries and ~~expenses. Our estimates~~their parents. The related debt liability and receivable balances, accrued interest expense (if any) and income activity (if any), and payments of principal and accrued interest amounts (if any) by the subsidiary companies to their parents are ~~based on our experience and our interpretation~~eliminated in consolidation.

•

Dividends. Certain of ~~economic, political, regulatory, and other factors that affect our business prospects. Actual results may differ significantly from our estimates.~~

~~We believe that our most critical accounting estimates are related~~Hecla's subsidiaries which generate cash flow routinely provide cash to future metals prices; obligations for environmental, reclamation, and closure matters; mineral reserves; and accounting for business combinations, as they require us to make assumptions that are highly uncertain at the time the accounting estimates are made and changes in them are reasonably likely to occur from period to period. Management has discussed the development and selection of these critical accounting estimates with the Audit Committee of our Board of Directors, and the Audit Committee has reviewed the disclosures presented below. In addition, there are other items within our financial statements that require estimation, but are not deemed to be critical. However, changes in estimates used in these and other items could have a material impact on our financial statements.

~~Future Metals Prices~~

Metals prices are key components in estimates that determine the valuation of some of our significant assets and liabilities, including properties, plants and equipment, deferred tax assets, and certain accounts receivable. Metals prices are also an important component in the estimation of reserves. ~~As shown under~~ ~~Part I~~, ~~Item 1A. – Risk Factors~~ in our annual report filed on Form 10-K for the year ended December 31, 2016, metals prices have historically been volatile. Silver demand arises from investment demand, particularly in exchange-traded funds, industrial demand, and consumer demand. Gold demand arises primarily from investment and consumer demand. Investment demand for silver and gold can be influenced by several factors, including: the value of the U.S. dollar and other currencies, changing U.S. budget deficits, widening availability of exchange-traded funds, interest rate levels, the health of credit markets, and inflationary expectations. Uncertainty related to the political environment in the U.S., Britain's exit from the European Union and a global economic recovery, including recent uncertainty in China, could result in continued investment demand for precious metals. Industrial demand for silver is closely linked to world Gross Domestic Product growth and industrial fabrication levels, as it is difficult to substitute for silver in industrial fabrication. Consumer demand is driven significantly by demand for jewelry and other retail products. We believe that long-term industrial and economic trends, including urbanization and growth of the middle class in countries such as China and India, will result in continued consumer demand for silver and gold and industrial demand for silver. However, China has recently experienced a lower rate of economic growth which could continue in the near term. There can be no assurance whether these trends will continue or how they will impact prices of the metals we produce. In the past, we have recorded impairments to our asset carrying value because of low prices, and we can offer no assurance that prices will either remain at their ~~current levels or increase.~~

~~Table of Contents~~

Processes supporting valuation of our assets and liabilities that are most significantly affected by prices include analysis of asset carrying values, depreciation, reserves, and deferred income taxes.parent companies through inter-company transfers. On at least an annual basis, -the boards of directors of such subsidiary companies declare dividends to their parent companies, which reduces the subsidiaries' retained earnings and ~~more frequently if circumstances warrant - we examine our depreciation rates, reserve estimates,~~increases the parents' dividend income. In consolidation, such activity is eliminated.

•

Deferred taxes. Our ability to realize deferred tax assets and liabilities is considered for two consolidated tax groups of subsidiaries within the United States: The Nevada U.S. Group and the ~~valuation allowances on our deferred~~Hecla U.S. Group. Within each tax ~~assets. We examine~~group, all subsidiaries' estimated future taxable income contributes to the ~~carrying values~~ability of ~~our~~their tax group to realize all such assets ~~as changes in facts~~ and ~~circumstances warrant.~~ In our evaluation of carrying values and deferred taxes, we apply several pricing views to our forecasting model, including current prices, analyst price estimates, forward-curve prices, and historical prices (see ~~Mineral Reserves~~~~, below, regarding prices used for reserve estimates). Using applicable accounting guidance and our view of metals markets,~~liabilities. However, when Hecla's subsidiaries are viewed independently, we use the ~~probability-weighted average~~separate return method to assess the realizability of ~~the various methods to determine~~each subsidiary's deferred tax assets and whether ~~the values of our assets are fairly stated, and to determine the level of~~a valuation ~~allowances, if any, on our~~allowance is required against such deferred tax assets. In ~~addition, estimates~~some instances, a parent company or subsidiary may possess deferred tax assets whose realization depends on the future taxable incomes of ~~future metals prices are used~~other subsidiaries on a consolidated-return basis, but would not be considered realizable if such parent or subsidiary filed on a separate stand-alone basis. In such a situation, a valuation allowance is assessed on that subsidiary's deferred tax assets, with the resulting adjustment reported in the ~~valuation~~eliminations column of ~~certain assets~~the guarantor and parent's financial statements, as is the case in the ~~determination~~unaudited interim financial statements set forth below. The separate return method can result in significant eliminations of deferred tax assets and liabilities and related income tax provisions and benefits. Non-current deferred tax asset balances are included in other non-current assets on the consolidating balance sheets and make up a large portion of that item, particularly for the guarantor balances.

Separate financial statements of the ~~purchase price allocations~~Guarantors are not presented because the guarantees by the Guarantors are joint and several and full and unconditional, except for ~~our acquisitions (see~~ ~~Business Combinations~~ ~~below).~~

~~Sales~~certain customary release provisions, including: (1) the sale or disposal of ~~concentrates sold directly to customers are recorded~~all or substantially all of the assets of the Guarantor; (2) the sale or other disposition of the capital stock of the Guarantor; (3) the Guarantor is designated as revenues when title and risk of loss transfer to the customer (generally at the time of shipment) using estimated forward metals prices for the estimated month of settlement. Due to the time elapsed between shipment of concentrates to the customer and final settlementan unrestricted entity in accordance with the ~~customer, we must estimate~~applicable provisions of the ~~prices at which sales~~indenture; (4) Hecla ceases to be a borrower as defined in the indenture; and (5) upon legal or covenant defeasance or satisfaction and discharge of ~~our metals will be settled. Previously recorded sales and trade accounts receivable are adjusted to estimated settlement prices until final settlement by~~ the customer. Changes in metals prices between shipment and final settlement result in changes to revenues and accounts receivable previously recorded upon shipment. As a result, our trade accounts receivable balances related to concentrate sales are subject to changes in metals prices until final settlement occurs. For more information, see part N. Revenue Recognitionindenture.

Unaudited Interim Condensed Consolidating Balance Sheets


	As of December 31, 2022
	Parent			Guarantors			Non-Guarantors		Eliminations			Consolidated
	(in thousands)
Assets
Cash and cash equivalents	$	69,889		$	20,152		$	14,702	$	—		$	104,743
Other current assets		4,959			147,103			10,922		—		$	162,984
Properties, plants, equipment and mineral interests - net		1,913			2,288,199			279,678		—		$	2,569,790
Intercompany receivable (payable)		(159,442	)		(598,248	)		303,433		454,257		$	—
Investments in subsidiaries		2,128,366			—			—		(2,128,366	)	$	—
Other non-current assets		355,631			20,870			43,241		(330,087	)	$	89,655
Total assets	$	2,401,316		$	1,878,076		$	651,976	$	(2,004,196	)	$	2,927,172
Liabilities and Stockholders' Equity
Current liabilities	$	(93,660	)	$	134,016		$	13,939	$	124,171		$	178,466
Long-term debt		506,364			11,378			0		—		$	517,742
Non-current portion of accrued reclamation		—			101,900			6,508		—		$	108,408
Non-current deferred tax liability		—			113,876			11,970		—		$	125,846
Other non-current liabilities		9,645			6,720			1,378		—		$	17,743
Stockholders' equity		1,978,967			1,510,186			618,181		(2,128,367	)	$	1,978,967
Total liabilities and stockholders' equity	$	2,401,316		$	1,878,076		$	651,976	$	(2,004,196	)	$	2,927,172


	As of September 30, 2023
	Parent			Guarantors			Non-Guarantors		Eliminations			Consolidated
	(in thousands)
Assets
Cash and cash equivalents	$	79,524		$	20,323		$	838	$	—		$	100,685
Other current assets		9,961			130,264			7,504		—			147,729
Properties, plants, equipment and mineral interests, net		—			2,639,949			8,360		—			2,648,309
Intercompany receivable (payable)		(182,251	)		(747,432	)		601,714		327,969			—
Investments in subsidiaries		2,300,473			—			—		(2,300,473	)		—
Other non-current assets		410,122			19,983			13,036		(378,708	)		64,433
Total assets	$	2,617,829		$	2,063,087		$	631,452	$	(2,351,212	)	$	2,961,156
Liabilities and Stockholders' Equity
Current liabilities	$	47,017		$	141,532		$	7,592	$	(50,770	)	$	145,371
Long-term debt		587,003			17,950			—		—			604,953
Non-current portion of accrued reclamation		—			107,589			2,024		—			109,613
Non-current deferred tax liability		—			109,293			—		—			109,293
Other non-current liabilities		6,039			6,720			1,397		—			14,156
Stockholders' equity		1,977,770			1,680,003			620,439		(2,300,442	)		1,977,770
Total liabilities and stockholders' equity	$	2,617,829		$	2,063,087		$	631,452	$	(2,351,212	)	$	2,961,156

Unaudited Interim Condensed Consolidating Statements of ~~Note 1~~ of ~~Notes to Consolidated Financial Statements~~ ~~in our annual report filed on Form 10-K for the year ended December 31, 2016.~~Operations

~~We utilize financially-settled forward contracts to manage our exposure to changes in prices for silver, gold, zinc and lead.~~ ~~See~~ 50

Nine Months Ended September 30, 2023

Parent

Guarantors

Non-Guarantors

Eliminations

Consolidated

(in thousands)

Revenues

$
13,088

$
546,449

$
—

$
—

$
559,537

Cost of sales

(2,535
)

(342,981
)

—

—

(345,516
)
Depreciation, depletion, amortization

—

(107,937
)

—

—

(107,937
)
General and administrative

(12,962
)

(16,389
)

(1,098
)

—

(30,449
)
Exploration and pre-development

(323
)

(22,740
)

(2,483
)

—

(25,546
)
Equity in earnings of subsidiaries

(34,334
)

—

—

34,334

—

Other (expense) income

13,330

(78,562
)

(4,017
)

(15,218
)

(84,467
)
Income (loss) before income and mining taxes

(23,736
)

(22,160
)

(7,598
)

19,116

(34,378
)
(Expense) benefit from income taxes

(17,544
)

(4,575
)

—

15,215

(6,904
)
Net income (loss)

(41,280
)

(26,735
)

(7,598
)

34,331

(41,282
)
Preferred stock dividends

(414
)

—

—

—

(414
)
Income (loss) applicable to common stockholders

$
(41,694
)

$
(26,735
)

$
(7,598
)

$
34,331

$
(41,696
)
Net income (loss)

(41,280
)

(26,735
)

(7,598
)

34,331

(41,282
)
Changes in comprehensive income (loss)

364

—

—

—

364

Comprehensive income (loss)

$
(40,916
)

$
(26,735
)

$
(7,598
)

$
34,331

$
(40,918
)
51

Item ~~7A. –~~3. Quantitative and Qualitative Disclosures About Market Risk ~~- Commodity-Price Risk Management~~ below for more information on our contract programs. These contracts do not qualify for hedge accounting and are therefore marked-to-market through earnings each period. Changes in silver, gold, zinc and lead prices between the dates that the contracts are entered into and their settlements will result in changes to the fair value asset or liability associated with the contracts, with a corresponding gain or loss recognized in earnings.

~~Obligations for Environmental, Reclamation and Closure Matters~~

Accrued reclamation and closure costs can represent a significant and variable liability on our balance sheet. We have estimated our liabilities under appropriate accounting guidance, and on at least an annual basis - and more frequently if warranted - management reviews our liabilities with our Audit Committee. However, the ranges of liability could exceed the liabilities recognized. If substantial damages were awarded, claims were settled, or remediation costs incurred in excess of our accruals, our financial results or condition could be materially adversely affected.

~~Mineral Reserves~~

Critical estimates are inherent in the process of determining our reserves. Our reserves are affected largely by our assessment of future metals prices, as well as by engineering and geological estimates of ore grade, accessibility and production cost. Metals prices are estimated at long-term averages, as described in ~~Part I~~, ~~Item 2. – Properties~~ ~~in our annual report filed on Form 10-K for the year ended December 31, 2016. Our assessment of reserves occurs at least annually, and periodically utilizes external audits.~~

~~Table of Contents~~

Reserves are a key component in the valuation of our properties, plants and equipment. Reserve estimates are used in determining appropriate rates of units-of-production depreciation, with net book value of many assets depreciated over remaining estimated reserves. Reserves are also a key component in forecasts, with which we compare future cash flows to current asset values in an effort to ensure that carrying values are reported appropriately. Our forecasts are also used in determining the level of valuation allowances on our deferred tax assets. Reserves also play a key role in the valuation of certain assets in the determination of the purchase price allocations for acquisitions. Annual reserve estimates are also used to determine conversions of mineral assets beyond the known reserve resulting from business combinations to depreciable reserves, in periods subsequent to the business combinations (see ~~Business Combinations~~ ~~below). Reserves are a culmination of many estimates and are not guarantees that we will recover the indicated quantities of metals or that we will do so at a profitable level.~~

~~Business Combinations~~

We are required to allocate the purchase price of acquired companies to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values at the acquisition date. The valuation of assets acquired and liabilities assumed requires management to make significant estimates and assumptions, especially with respect to long-lived assets (including mineral assets beyond the known reserve). These estimates include future metals prices and mineral reserves, as discussed above. Management may also be required to make estimates related to the valuation of deferred tax assets or liabilities as part of the purchase price allocation for business combinations. In some cases, we use third-party appraisers to determine the fair values and lives of property and other identifiable assets. In addition, costs related to business combinations are included in earnings as incurred, and our financial results for periods in which business combinations are pursued could be adversely affected as a result.

~~Item 3.~~ ~~Quantitative and Qualitative Disclosures About Market Risk~~

The following discussion about our exposure to market risks and risk management activities includes forward-looking statements that involve ~~risk~~risks and uncertainties, ~~and~~as well as summarizes the financial instruments held by us at September 30, ~~2017,~~2023, which are sensitive to changes in commodity prices and foreign exchange rates and are not held for trading purposes. Actual results could differ materially from those projected in the forward-looking statements. In the normal course of business, we also face risks that are either non-financial or non-quantifiable (See ~~Part I~~, Item 1A. – Risk Factors of our ~~annual report filed~~2022 Form 10-K).

Metals Prices

Changes in the market prices of silver, gold, lead and zinc can significantly affect our profitability and cash flow. Metals prices can and often do fluctuate widely and are affected by numerous factors beyond our control (see Item 1A – Risk Factors – A substantial or extended decline in metals prices would have a material adverse effect on us in our 2022 Form ~~10-K~~10-K). We utilize financially-settled forward and put option contracts to manage our exposure to changes in prices for ~~the year ended December 31, 2016).~~silver, gold, zinc and lead.

Provisional Sales

Sales of all metals products sold directly to customers, including by-product metals, are recorded as revenues when ~~title~~all performance obligations have been completed and ~~risk of loss transfers to~~ the ~~customer (generally~~transaction price can be determined or reasonably estimated. For concentrate sales, revenues are generally recorded at the time of ~~shipment)~~shipment at forward prices for the estimated month of settlement. Due to the time elapsed between shipment to the customer and the final settlement with the customer we must estimate the prices at which sales of our metals will be settled. Previously recorded sales are adjusted to estimated settlement metals prices until final settlement by the customer. Changes in metals prices between shipment and final settlement will result in changes to revenues previously recorded upon shipment. Metals prices can and often do fluctuate widely and are affected by numerous factors beyond our control (see ~~Part I~~, Item ~~1A.~~1A – Risk Factors –A substantial or extended decline in metals prices would have a material adverse effect on us in our ~~annual report filed on~~2022 Form ~~10-K for the year ended December 31, 2016)~~10-K). At September 30, ~~2017,~~2023, metals contained in ~~concentrates~~concentrate sales and exposed to future price changes totaled ~~approximately 1.5~~0.9 million ounces of silver ~~5,536 ounces of gold, 9,974 tons of zinc,~~ and ~~1,423~~5,075 tons of lead. If the price for each metal were to change by 10%, the change in the total value of the concentrates sold would be approximately ~~$6.4~~$3.3 million. ~~However, as~~As discussed in ~~Commodity-Price Risk Management~~ ~~below,~~Note 8 of Notes to Condensed Consolidated Financial Statements (Unaudited), we utilize a program designed and intended to mitigate the risk of negative price adjustments with limited mark-to-market financially-settled forward contracts for our silver, gold, zinc and lead sales.

Commodity-Price Risk Management

~~At times, we use commodity forward sales commitments, commodity swap contracts~~See Note 8 of Notes to Condensed Consolidated Financial Statements (Unaudited) and ~~commodity put~~Item 7A. Quantitative and ~~call option contracts to manage~~Qualitative Disclosures About Market Risk in our ~~exposure to fluctuation in the prices of certain metals which we produce. Contract positions are designed to ensure that we will receive~~2022 Form 10-K for a ~~defined minimum price for certain quantities~~description of our ~~production, thereby partially offsetting our exposure to fluctuations in the market. Our~~commodity-price risk management policy allows for up to 75% of our planned metals price exposure for five years into the future, with certain other limitations, to be hedged under such programs. These instruments do, however, expose us to (i) credit risk in the form of possible non-performance by counterparties for contracts in which the contract price exceeds the spot price of a commodity and (ii) price risk to the extent that the spot price exceeds the contract price for quantities of our production covered under contract positions.program.

~~Table of Contents~~

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. In addition, we are using financially-settled forward contracts to manage the exposure to changes in prices of zinc and lead (but not silver and gold) contained in our forecasted future concentrate shipments. These contracts do not qualify for hedge accounting and are marked-to-market through earnings each period.

~~As of September~~ ~~30, 2017, we recorded the following balances for the fair value of the contracts:~~

~~a current asset of $0.4 million, which is net of $0.1 million for contracts in a liability position and included in other current assets;~~

~~a current liability of $7.9 million, which is net of $0.2 million for contracts in an asset position and included in other current liabilities; and~~

~~a non-current liability of $4.0 million, which is included in other non-current liabilities.~~

~~The following tables summarize the quantities of metals committed under forward sales contracts at September~~ ~~30, 2017 and December 31, 2016:~~

~~Table of Contents~~

December 31, 2016

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

2017 settlements
1,295 4 19,070 7,441 $ 16.29 $ 1,172 $ 1.18 $ 0.97
Contracts on forecasted sales

2017 settlements
— — 35,384 17,637 N/A N/A $ 1.19 $ 1.03
2018 settlements
— — 13,779 5,732 N/A N/A $ 1.21 $ 1.05

Our concentrate sales are based on a provisional sales price containing an embedded derivative that is required to be separated from the host contract for accounting purposes. The host contract is the receivable from the sale of the concentrates at the forward price at the time of the sale. The embedded derivative, which does not qualify for hedge accounting, is marked-to-market through earnings each period prior to final settlement.

Foreign Currency Risk Management

We operate or have mining interests in Canada, ~~and Mexico,~~ which exposes us to risks associated with fluctuations in the exchange rates between the ~~U.S. dollar ("USD")~~USD and the ~~Canadian dollar ("CAD") and Mexican peso ("MXN").~~CAD. We ~~have~~ determined ~~that~~ the functional currency for our Canadian ~~and Mexican~~ operations is the USD. As such, foreign exchange gains and losses associated with the re-measurement of monetary assets and liabilities from CAD ~~and MXN~~ to USD are recorded to earnings each period. For the three and nine months ended September 30, ~~2017,~~2023, we recognized a net foreign exchange ~~loss~~gain of ~~$10.9 million.~~$4.2 million and $0.4 million, respectively, compared to a net foreign exchange gain of $5.7 million and $8.1 million for the three and nine months ended September 30, 2022, respectively. Foreign currency exchange rates are influenced by a number of factors beyond our control. A 10% change in the exchange rate between the USD and CAD from the rate at September 30, ~~2017~~2023 would have resulted in a change of approximately ~~$11.8~~$11.2 million in our net foreign exchange gain or loss. ~~A 10% change in~~We do not hedge the ~~exchange rate between the USD~~remeasurement of monetary assets and ~~MXN from the rate at September 30, 2017 would have resulted in a change~~liabilities. We do hedge some of ~~approximately $0.9 million in~~ our ~~net foreign exchange gain or loss.~~

~~In April 2016, we initiated a program to manage our exposure to fluctuations in the exchange rate between the USD~~operating and ~~CAD and the impact on our future operating~~capital costs denominated in ~~CAD. In October 2016, we also initiated~~foreign currency.

See Note 8 of Notes to Condensed Consolidated Financial Statements (Unaudited) and Note 9 of Notes to Consolidated Financial Statements in our 2022 Form 10-K for a program to manage our exposure to the impact of fluctuations in the exchange rate between the USD and MXN on our future operating costs denominated in MXN. The programs utilize forward contracts to buy CAD and MXN, and each contract is designated as a cash flow hedge. As of September 30, 2017, we have 94 forward contracts outstanding to buy CAD$200.1 million having a notional amount of US$154.0 million, and 6 forward contracts outstanding to buy MXN$43.3 million having a notional amount of USD$2.2 million. The CAD contracts are related to forecasted cash operating costs at Casa Berardi to be incurred from 2017 through 2020 and have CAD-to-USD exchange rates ranging between 1.2787 and 1.3380. The MXN contracts are related to forecasted cash operating costs at San Sebastian for 2017 and have MXN-to-USD exchange rates ranging between 19.5910 and 21.0000. Our risk management policy allows for up to 75%description of our ~~planned cost exposure for five years into the future to be hedged under such programs, and for potential additional programs to manage other~~ foreign ~~currency-related exposure areas.~~currency risk management.

~~As of September~~ ~~30, 2017, we recorded the following balances for the fair value of the contracts:~~52

~~a current asset of $2.8 million, which is included in other current assets; and~~

~~a non-current asset of $3.7 million, which is included in other non-current assets.~~

~~Table of Contents~~

Item 4. Controls and Procedures

An evaluation was performed under the supervision and with the participation of our management, including the Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”), of the effectiveness of the design and operation of our disclosure controls and procedures as ~~defined~~required by Securities Exchange Act Rules 13a-15(e) and 15d-15(e) as of the end of the period covered by this report. Based on that evaluation, our CEO and CFO concluded that our disclosure controls and procedures, including controls and procedures designed to ensure that information required to be disclosed by us is accumulated and communicated to our management (including our CEO and CFO), were effective as of September 30, ~~2017,~~2023, in assuring them in a timely manner that material information required to be disclosed in this report has been properly recorded, processed, summarized and reported. There were no changes in our internal control over financial reporting during the ~~quarter~~three months ended September 30, ~~2017~~2023 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Internal control systems, no matter how well designed and operated, have inherent limitations. Therefore, even a system which is determined to be effective cannot provide absolute assurance that all control issues have been detected or prevented. Our systems of internal controls are designed to provide reasonable assurance with respect to financial statement preparation and presentation.

Part II - Other Information

Hecla Mining Company and Subsidiaries

Item 1. Legal Proceedings

For information concerning legal proceedings, refer to Note 410 of Notes to Condensed Consolidated Financial Statements (Unaudited), which is incorporated by reference into this Item 1.

Item 1A. Risk Factors

~~Part I,~~ Item 1A. – Risk Factors of our ~~annual report filed on~~2022 Form 10-K ~~for the year ended December 31, 2016 sets~~set forth information relating to important risks and uncertainties that could materially adversely affect our business, financial condition or operating results. ~~Those risk factors continue to be relevant to an understanding of our business, financial condition and operating results.~~

Item 4. Mine Safety Disclosures

The information concerning mine safety violations or other regulatory matters required by Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Item 104 of Regulation S-K is included in exhibit 95 to this Quarterly Report.

Item 6. ~~Exhibits~~5. Other Information

~~See~~Item 5(c)During the ~~exhibit index to this Form 10-Q for the list of exhibits.~~

~~Items 2, 3 and 5 of Part II are not applicable and are omitted from this report.~~

~~Table of Contents~~

~~SIGNATURES~~

~~Pursuant to the requirements~~three months ended September 30, 2023, no director or officer of the ~~Securities Exchange Act~~Company adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(a) of ~~1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.~~Regulation S-K.

		~~HECLA MINING COMPANY~~
		~~(Registrant)~~

~~Date:~~	~~November 7, 2017~~	~~By:~~	~~/s/ Phillips S. Baker, Jr.~~
			~~Phillips S. Baker, Jr., President,~~
			~~Chief Executive Officer and Director~~

~~Date:~~	~~November 7, 2017~~	~~By:~~	~~/s/ Lindsay A. Hall~~
			~~Lindsay A. Hall, Senior Vice President and~~
			~~Chief Financial Officer~~

~~Table of Contents~~

Item 6. Exhibits

Hecla Mining Company and Wholly Owned Subsidiaries

Form 10-Q – September 30, ~~2017~~2023

Index to Exhibits

~~3.1~~Exhibit

Number

Description

10.1

~~Restated Certificate~~Form of ~~Incorporation of the Registrant. Filed as exhibit 3.1 to Registrant's Quarterly Report on Form 10-Q for the quarter ended June 30, 2017 (File No. 1-8491), and incorporated herein by reference.~~

~~3.2~~

~~Bylaws of the Registrant as amended to date. Filed as exhibit 3.1 to Registrant's Current Report on Form 8-K filed on August 22, 2014 (File No. 1-8491), and incorporated herein by reference.~~

~~4.1~~

Designations, Preferences and Rights of Series B Cumulative Convertible Preferred Stock of the Registrant. Included as Annex II to Restated Certificate of Incorporation of Registrant filed as exhibit 3.1 to Registrant's Quarterly Report on Form 10-Q for the quarter ended June 30, 2017 (File No. 1-8491), and incorporated herein by reference.

~~4.2(a)~~

Indenture dated as of April 12, 2013 among Hecla Mining Company, as Issuer, certain subsidiaries of Hecla Mining Company, as Guarantors thereto, and The Bank of New York Mellon Trust Company, N.A., as Trustee. Filed as exhibit 10.1 to Registrant’s Current Report on Form 8-K filed on April 15, 2013 (File No. 1-8491), and incorporated herein by reference.

~~4.2(b)~~

Supplemental Indenture, dated as of April 14, 2014, among Hecla Mining Company, as Issuer, certain subsidiaries of Hecla Mining Company, as Guarantors thereto, and The Bank of New York Mellon Trust Company, N.A., as Trustee. Filed as exhibit 4.2 to Registrant’s Registration Statement on Form S-3ASR filed on April 14, 2014 (File No. 1-8491), and incorporated herein by reference.

~~4.2(c)~~

~~Supplemental Indenture,~~Change in Control Agreement dated August ~~5, 2015, among Revett Mining Company, Inc., Revett Silver Company, Troy Mine, Inc., RC Resources, Inc., Revett Exploration, Inc.,~~16, 2023, between Registrant and ~~Revett Holdings, Inc., as Guaranteeing Subsidiaries, and The Bank of New York Mellon Trust Company, N.A., as Trustee. Filed as~~Carlos Aguiar, incorporated by reference to exhibit ~~4.2(d)~~10.2 to ~~Registrant’s~~the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 (File No. 1-8491)~~, and incorporated herein by reference.~~. (1)

~~4.2(d)~~10.2

~~Supplemental Indenture,~~Form of Indemnification Agreement dated ~~October 26, 2016, among Mines Management Inc., Newhi, Inc., Montanore Minerals Corp., as Guaranteeing Subsidiaries,~~August 16, 2023, between Registrant and ~~The Bank of New York Mellon Trust, N.A., as Trustee. Filed as~~Carlos Aguiar, incorporated by reference to exhibit ~~4.2(e)~~10.7 to ~~Registrant’s Annual Report on Form 10-K for~~ the ~~year ended December 31, 2016 (File No. 1-8491), and incorporated herein by reference.~~

~~10.1~~

Fourth Amended and Restated Credit Agreement effective May 20, 2016, by and among Hecla Mining Company, Hecla Limited, Hecla Alaska LLC, Hecla Greens Creek Mining Company, and Hecla Juneau Mining Company, as the Borrowers, The Bank of Nova Scotia, as the Administrative Agent for the Lenders, and various Lenders. Filed as exhibit 10.1 to Registrant’s Current Report on Form 8-K filed on May 25, 2016 (File No. 1-8491), and incorporated herein by reference.

~~Table of Contents~~

~~10.2~~

First Amendment to Fourth Amended and Restated Credit Agreement effective July 14, 2017, by and among Hecla Mining Company, Hecla Limited, Hecla Alaska LLC, Hecla Greens Creek Mining Company, and Hecla Juneau Mining Company, as the Borrowers, The Bank of Nova Scotia, as the Administrative Agent for the Lenders, and various Lenders. Filed as exhibit 10.2 to Registrant’sCompany’s Quarterly Report on Form 10-Q for the quarter ended ~~June~~September 30, ~~2017~~2006 (File No. 1-8491)~~, and incorporated herein by reference.~~. (1)

~~31.1~~31.1*

Certification ~~pursuant~~of Principal Executive Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. *

~~31.2~~31.2*

Certification ~~pursuant~~of Principal Financial Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. *

~~32.1~~32.1*

Certification ~~pursuant~~of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. *

~~32.2~~32.2*

Certification ~~pursuant~~of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. *

9595*

Mine safety information listed in Section 1503 of the Dodd-Frank Act. *

101.INS

XBRL Instance. **

~~101.SCH~~	Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because XBRL tags are embedded within the Inline XBRL document. **
101.SCH		Inline XBRL Taxonomy Extension Schema.Schema Document

101.CAL

Inline XBRL Taxonomy Extension Calculation.**Calculation Linkbase Document **

101.DEF

Inline XBRL Taxonomy Extension Definition.**Definition Linkbase Document **

101.LAB

Inline XBRL Taxonomy Extension Labels.**Label Linkbase Document **

101.PRE		Inline XBRL Taxonomy Extension Presentation.Presentation Linkbase Document
104		Cover Page Interactive Data File (embedded within the Inline XBRL document) **

~~___________________~~

* Filed ~~herewith.~~herewith

** XBRL information is furnished and not filed or a part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, is deemed not filed for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended, and otherwise is not subject to liability under these sections.

65(1) Indicates a management contract or compensatory plan or arrangement.

Items 2 and 3 of Part II are not applicable and are omitted from this report.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


		HECLA MINING COMPANY
		(Registrant)

Date:	November 7, 2023	By:	/s/ Phillips S. Baker, Jr.
			Phillips S. Baker, Jr., President,
			Chief Executive Officer and Director

Date:	November 7, 2023	By:	/s/ Russell D. Lawlar
			Russell D. Lawlar, Senior Vice President,
			Chief Financial Officer

	~~Delaware~~		~~77-0664171~~
Delaware	77-0664171
(State or other jurisdiction of		~~(I.R.S. Employer~~
	incorporation or organization)		(I.R.S. Employer Identification No.)

	6500 Mineral Drive, Suite 200 Coeur d’Alene, Idaho			83815-9408
	~~Coeur d'Alene, Idaho~~		~~83815-9408~~
	(Address of principal executive offices)		(Zip Code)


~~208-769-4100~~Title of each class	Trading Symbol(s)	Name of each exchange on which registered
~~(Registrant's telephone number, including area code)~~Common Stock, par value $0.25 per share	HL	New York Stock Exchange
Series B Cumulative Convertible Preferred Stock, par value $0.25 per share	HL-PB	New York Stock Exchange


	Three Months Ended						Nine Months Ended
	September 30, 2023			September 30, 2022			September 30, 2023			September 30, 2022
Sales	$	181,906		$	146,339		$	559,537		$	524,080
Cost of sales and other direct production costs		112,212			104,900			345,516			326,579
Depreciation, depletion and amortization		36,217			32,992			107,937			106,362
Total cost of sales		148,429			137,892			453,453			432,941
Gross profit		33,477			8,447			106,084			91,139
Other operating expenses:
General and administrative		7,596			11,003			30,449			28,989
Exploration and pre-development		13,686			15,128			25,546			39,136
Ramp-up and suspension costs		21,025			5,092			48,684			16,539
Provision for closed operations and environmental matters		2,256			1,781			6,411			4,154
Other operating (income) expense, net		1,555			902			(2,729	)		5,310
Total other operating expenses		46,118			33,906			108,361			94,128
Loss from operations		(12,641	)		(25,459	)		(2,277	)		(2,989	)
Other income (expense):
Interest expense		(10,710	)		(10,874	)		(31,186	)		(31,785	)
Fair value adjustments, net		(6,397	)		(4,240	)		(5,774	)		(14,703	)
Net foreign exchange gain		4,176			5,667			434			8,111
Other income		1,657			1,853			4,425			4,828
Total other expense		(11,274	)		(7,594	)		(32,101	)		(33,549	)
Loss before income and mining taxes		(23,915	)		(33,053	)		(34,378	)		(36,538	)
Income and mining tax benefit (expense)		1,500			9,527			(6,904	)		3,642
Net loss		(22,415	)		(23,526	)		(41,282	)		(32,896	)
Preferred stock dividends		(138	)		(138	)		(414	)		(414	)
Net loss applicable to common stockholders	$	(22,553	)	$	(23,664	)	$	(41,696	)	$	(33,310	)
Comprehensive loss:
Net loss	$	(22,415	)	$	(23,526	)	$	(41,282	)	$	(32,896	)
Change in fair value of derivative contracts designated as hedge transactions		(11,384	)		(12,692	)		364			19,491
Comprehensive loss	$	(33,799	)	$	(36,218	)	$	(40,918	)	$	(13,405	)
Basic loss per common share after preferred dividends	$	(0.04	)	$	(0.04	)	$	(0.07	)	$	(0.06	)
Diluted loss per common share after preferred dividends	$	(0.04	)	$	(0.04	)	$	(0.07	)	$	(0.06	)
Weighted average number of common shares outstanding - basic		607,896			554,531			604,028			544,000
Weighted average number of common shares outstanding - diluted		607,896			554,531			604,028			544,000
Cash dividends declared per common share	$	0.00625		$	0.00625		$	0.0125		$	0.0125

	September 30, 2017			December 31, 2016
ASSETS
Current assets:
Cash and cash equivalents	$	172,923		$	169,777
Investments		32,973			29,117
Accounts receivable:
Trade		6,982			20,082
Taxes		10,382			187
Other, net		9,031			9,780
Inventories:
Concentrates, doré, and stockpiled ore		38,064			25,944
Materials and supplies		24,663			24,079
Other current assets		16,317			12,125
Total current assets		311,335			291,091
Non-current investments		7,098			5,002
Non-current restricted cash and investments		1,076			2,200
Properties, plants, equipment and mineral interests, net		2,025,607			2,032,685
Non-current deferred income taxes		44,683			35,815
Other non-current assets and deferred charges		6,384			4,884
Total assets	$	2,396,183		$	2,371,677
LIABILITIES
Current liabilities:
Accounts payable and accrued liabilities	$	46,847		$	60,064
Accrued payroll and related benefits		29,085			36,515
Accrued taxes		5,081			9,061
Current portion of capital leases		5,852			5,653
Current portion of debt		—			470
Current portion of accrued reclamation and closure costs		6,514			5,653
Accrued interest		14,450			5,745
Other current liabilities		7,968			3,064
Total current liabilities		115,797			126,225
Capital leases		7,436			5,838
Accrued reclamation and closure costs		80,758			79,927
Long-term debt		501,917			500,979
Non-current deferred tax liability		122,723			122,855
Non-current pension liability		43,451			44,491
Other noncurrent liabilities		11,160			11,518
Total liabilities		883,242			891,833
Commitments and contingencies (Notes 2, 4, 7, 9, and 11)
SHAREHOLDERS’ EQUITY
Preferred stock, 5,000,000 shares authorized:
Series B preferred stock, $0.25 par value, 157,816 shares issued and outstanding, liquidation preference — $7,891		39			39
Common stock, $0.25 par value, authorized 750,000,000 shares; issued and outstanding 2017 — 399,018,708 shares and 2016 — 395,286,875 shares		100,886			99,806
Capital surplus		1,617,669			1,597,212
Accumulated deficit		(166,602	)		(167,437	)
Accumulated other comprehensive loss		(20,884	)		(34,602	)
Less treasury stock, at cost; 2017 — 4,529,450 and 2016 — 3,941,210 shares issued and held in treasury		(18,167	)		(15,174	)
Total shareholders’ equity		1,512,941			1,479,844
Total liabilities and shareholders’ equity	$	2,396,183		$	2,371,677


	Nine Months Ended
	September 30, 2023			September 30, 2022
Operating activities:
Net loss	$	(41,282	)	$	(32,896	)
Non-cash elements included in net loss:
Depreciation, depletion and amortization		111,705			106,743
Inventory adjustments		16,332			2,159
Fair value adjustments, net		5,774			3,486
Provision for reclamation and closure costs		7,805			4,789
Stock-based compensation		5,122			4,298
Deferred income taxes		795			(17,828	)
Foreign exchange gain		(434	)		(8,353	)
Other non-cash items, net		1,624			2,454
Change in assets and liabilities:
Accounts receivable		25,020			34,788
Inventories		(24,339	)		(19,472	)
Other current and non-current assets		(15,045	)		(3,420	)
Accounts payable, accrued and other current liabilities		(2,389	)		(21,708	)
Accrued payroll and related benefits		(11,244	)		1,679
Accrued taxes		(1,008	)		(2,652	)
Accrued reclamation and closure costs and other non-current liabilities		(3,821	)		(297	)
Cash provided by operating activities		74,615			53,770
Investing activities:
Additions to properties, plants, equipment and mineral interests		(161,265	)		(93,237	)
Change in restricted cash		—			2,011
Proceeds from sale of investments		—			9,375
Proceeds from disposition of properties, plants and equipment		160			748
Purchases of investments		(1,753	)		(30,540	)
Acquisitions, net		—			8,952
Pre-acquisition advance to Alexco		—			(25,000	)
Net cash used in investing activities		(162,858	)		(127,691	)
Financing activities:
Proceeds from sale of common stock, net		25,888			4,542
Acquisition of treasury stock		(2,036	)		(3,677	)
Borrowing of debt		119,000			25,000
Repayment of debt		(39,000	)		—
Dividends paid to common and preferred stockholders		(11,755	)		(10,549	)
Credit facility fees paid		—			(517	)
Repayments of finance leases		(7,990	)		(5,222	)
Net cash provided by financing activities		84,107			9,577
Effect of exchange rates on cash		77			(804	)
Net decrease in cash, cash equivalents and restricted cash		(4,059	)		(65,148	)
Cash, cash equivalents and restricted cash at beginning of period		105,907			211,063
Cash, cash equivalents and restricted cash at end of period	$	101,848		$	145,915
Supplemental disclosure of cash flow information:
Cash paid for interest	$	37,514		$	37,179
Cash paid for income and mining taxes, net	$	7,385		$	13,061
Significant non-cash investing and financing activities:
Addition of finance lease obligations and right-of-use assets	$	16,092		$	9,692
Common stock issued to ATAC Resources Ltd. shareholders	$	18,789		$	—
Common stock issued to Alexco Resource Corp. shareholders	$	—		$	68,733
Common stock issued to settle acquired silver stream	$	—		$	135,000
Common stock issued to pension plans	$	—		$	5,570


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


~~Commission file number~~☐		~~1-8491~~TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


Large ~~Accelerated Filer~~ XX.accelerated filer	☑	Accelerated ~~Filer~~ .filer	☐
~~Non-Accelerated Filer~~ ~~. (Do not check if a smaller reporting company)~~Non-accelerated filer	☐	Smaller ~~Reporting Company~~.reporting company	☐
Emerging growth company.	☐


		Page

PART ~~I - Financial Information~~I.	FINANCIAL INFORMATION	3

Item 1.	~~Item 1~~ ~~– Condensed Consolidated~~ Financial Statements (Unaudited)	3

	~~Condensed Consolidated Balance Sheets - September 30, 2017 and December 31, 2016~~	3

	Condensed Consolidated Statements of Operations and Comprehensive Loss - Three Months Ended and Nine Months Ended September 30,~~, 2017~~ 2023 and ~~2016~~2022	4 3

	Condensed Consolidated Statements of Cash Flows - Nine Months Ended September 30, ~~2017~~2023 and ~~2016~~2022	5 4
	Condensed Consolidated Balance Sheets - September 30, 2023 and December 31, 2022	5
	Condensed Consolidated Statements of Changes in Stockholders' Equity – Three Months Ended and Nine Months Ended September 30, 2023 and 2022	6
	Notes to Condensed Consolidated Financial Statements ~~(Unaudited)~~(unaudited)	6 8

Item 2.	~~Item 2. Management's~~Management’s Discussion and Analysis of Financial Condition and Results of Operations	30 20
	Overview	20
	Consolidated Results of Operations	21
	Reconciliation of Total Cost of Sales to Cash Cost, Before By-product Credits and Cash Cost, After By-product Credits (non-GAAP) and All-In Sustaining Cost, Before By-product Credits and All-In Sustaining Cost, After By-product Credits (non-GAAP)	35
	Financial Liquidity and Capital Resources	46
	Contractual Obligations, Contingent Liabilities and Commitments	48
	Critical Accounting Estimates	48
	Off-Balance Sheet Arrangements	48
	Guarantor Subsidiaries	49
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	59 52

Item 4.	~~Item 4.~~ Controls and Procedures	62 53

PART II.	OTHER INFORMATION	53

Item 1.	Legal Proceedings	53
Item 1A.	Risk Factors	53
Item 4.	Mine Safety Disclosures	53
Item 5.	Other Information	53
Item 6.	Exhibits	54
~~PART II - Other Information~~Signatures

	~~Item 1~~ ~~– Legal Proceedings~~55	62

	~~Item 1A~~ ~~– Risk Factors~~	62

	~~Item 4~~ ~~– Mine Safety Disclosures~~	62

	~~Item 6~~ ~~– Exhibits~~	62

	~~Signatures~~	63

	~~Exhibits~~	64


*Items 2 3 and 53 of Part II are omitted as they are not applicable.

	Three Months Ended						Nine Months Ended
	September 30, 2017			September 30, 2016			September 30, 2017			September 30, 2016
Sales of products	$	140,839		$	179,393		$	417,662		$	481,712
Cost of sales and other direct production costs		68,358			90,529			224,537			249,162
Depreciation, depletion and amortization		28,844			30,179			83,365			84,592
Total cost of sales		97,202			120,708			307,902			333,754
Gross profit		43,637			58,685			109,760			147,958
Other operating expenses:
General and administrative		9,529			11,155			29,044			31,728
Exploration		7,255			3,859			17,622			10,171
Pre-development		1,757			550			4,061			1,475
Research and development		1,130			—			2,125			—
Other operating expense		134			962			1,615			2,535
Gain on disposition of properties, plants, equipment and mineral interests		(4,830	)		(8	)		(4,924	)		(319	)
Provision for closed operations and reclamation		2,940			2,162			5,044			4,779
Lucky Friday suspension-related costs		4,780			—			14,385			—
Acquisition costs		—			1,765			—			2,167
Total other operating expense		22,695			20,445			68,972			52,536
Income from operations		20,942			38,240			40,788			95,422
Other income (expense):
(Loss) gain on derivative contracts		(11,226	)		7			(16,548	)		—
Loss on disposition of investments		—			—			(167	)		—
Unrealized (loss) gain on investments		(124	)		49			(73	)		488
Foreign exchange (loss) gain		(4,764	)		2,375			(10,909	)		(7,713	)
Interest and other income		541			145			1,185			346
Interest expense, net of amount capitalized		(9,358	)		(5,574	)		(28,423	)		(16,655	)
Total other expense		(24,931	)		(2,998	)		(54,935	)		(23,534	)
(Loss) income before income taxes		(3,989	)		35,242			(14,147	)		71,888
Income tax benefit (provision)		5,401			(9,453	)		18,377			(22,603	)
Net income		1,412			25,789			4,230			49,285
Preferred stock dividends		(138	)		(138	)		(414	)		(414	)
Income applicable to common shareholders	$	1,274		$	25,651		$	3,816		$	48,871
Comprehensive income:
Net income	$	1,412		$	25,789		$	4,230		$	49,285
Reclassification of loss on disposition or impairment of marketable securities included in net income		—			—			167			1,000
Unrealized loss and amortization of prior service on pension plans		(16	)		—			—			—
Change in fair value of derivative contracts designated as hedge transactions		6,760			(1,602	)		12,068			(1,556	)
Unrealized holding gains on investments		892			987			1,483			2,245
Comprehensive income	$	9,048		$	25,174		$	17,948		$	50,974
Basic income per common share after preferred dividends	$	0.00		$	0.07		$	0.01		$	0.13
Diluted income per common share after preferred dividends	$	0.00		$	0.07		$	0.01		$	0.13
Weighted average number of common shares outstanding - basic		398,848			387,578			396,809			383,458
Weighted average number of common shares outstanding - diluted		401,258			389,918			400,176			386,318
Cash dividends declared per common share	$	0.0025		$	0.0025		$	0.0075		$	0.0075

	Nine Months Ended
	September 30, 2017			September 30, 2016
Operating activities:
Net income	$	4,230		$	49,285
Non-cash elements included in net income:
Depreciation, depletion and amortization		87,634			83,900
Loss on disposition of investments		167			—
Unrealized loss (gain) on investments		73			(488	)
Gain on disposition of properties, plants, equipment, and mineral interests		(4,924	)		(319	)
Provision for reclamation and closure costs		3,379			3,685
Stock compensation		4,943			4,814
Acquisition costs		—			1,048
Deferred income taxes		(24,280	)		10,330
Amortization of loan origination fees		1,415			1,397
Loss on derivative contracts		16,718			337
Foreign exchange loss		11,171			7,555
Other non-cash items, net		(1	)		5
Change in assets and liabilities, net of business acquisitions:
Accounts receivable		4,903			5,776
Inventories		(9,611	)		(44	)
Other current and non-current assets		(2,685	)		(539	)
Accounts payable and accrued liabilities		(7,759	)		2,042
Accrued payroll and related benefits		(913	)		8,621
Accrued taxes		(4,469	)		(2,894	)
Accrued reclamation and closure costs and other non-current liabilities		(5,876	)		(1,397	)
Cash provided by operating activities		74,115			173,114
Investing activities:
Additions to properties, plants, equipment and mineral interests		(70,390	)		(120,236	)
Acquisitions of other companies, net of cash acquired		—			(3,931	)
Proceeds from disposition of properties, plants, equipment and mineral interests		151			348
Insurance proceeds received for damaged property		5,628			—
Purchases of investments		(36,916	)		(32,847	)
Maturities of investments		31,169			7,240
Changes in restricted cash and investment balances		1,124			(3,900	)
Net cash used in investing activities		(69,234	)		(153,326	)
Financing activities:
Proceeds from sale of common stock, net of offering costs		9,610			8,121
Acquisition of treasury shares		(2,993	)		(4,363	)
Dividends paid to common shareholders		(2,978	)		(2,882	)
Dividends paid to preferred shareholders		(414	)		(414	)
Credit availability and debt issuance fees		(476	)		(107	)
Repayments of debt		(470	)		(1,807	)
Repayments of capital leases		(5,065	)		(6,328	)
Net cash used in financing activities		(2,786	)		(7,780	)
Effect of exchange rates on cash		1,051			627
Net increase in cash and cash equivalents		3,146			12,635
Cash and cash equivalents at beginning of period		169,777			155,209
Cash and cash equivalents at end of period	$	172,923		$	167,844
Significant non-cash investing and financing activities:
Addition of capital lease obligations	$	6,439		$	2,297
Common stock issued for the acquisition of other companies	$	—		$	48,109
Payment of accrued compensation in restricted stock units	$	4,240		$	5,511


	Three Months Ended September 30, 2023
	Series B Preferred Stock		Common Stock		Capital Surplus		Accumulated Deficit			Accumulated Other Comprehensive Income (Loss), net			Treasury Stock			Total
Balances, July 1, 2023	$	39	$	153,334	$	2,289,607	$	(430,606	)	$	14,196		$	(33,734	)	$	1,992,836
Net loss		—		—		—		(22,415	)		—			—			(22,415	)
Stock-based compensation expense		—		—		1,758		—			—			—			1,758
Common stock ($0.00625 per share) and Series B Preferred Stock ($0.875 per share) dividends declared		—		—		—		(3,947	)		—			—			(3,947	)
Common stock issued for 401(k) match (283,541 shares)		—		71		1,386		—			—			—			1,457
Common stock issued to ATAC Resources Ltd. shareholders (3,676,904 shares)		—		919		17,870		—			—			—			18,789
Common stock issued to directors (125,063 shares)		—		31		645		—			—			—			676
Other comprehensive (loss)		—		—		—		—			(11,384	)		—			(11,384	)
Balances, September 30, 2023	$	39	$	154,355	$	2,311,266	$	(456,968	)	$	2,812		$	(33,734	)	$	1,977,770

	September 30, 2017							December 31, 2016
	Amortized cost		Unrealized loss			Fair value		Amortized cost		Unrealized loss			Fair value
Corporate bonds	$	32,987	$	(14	)	$	32,973	$	22,100	$	(46	)	$	22,054
Municipal bonds		—		—			—		3,727		(1	)		3,726
Agency bonds		—		—					3,339		(2	)		3,337
Total	$	32,987	$	(14	)	$	32,973	$	29,166	$	(49	)	$	29,117

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2017			2016			2017			2016
Current:
Domestic	$	—		$	4,123		$	(12,797	)	$	4,122
Foreign		(3,959	)		5,773			17,491			8,416
Total current income tax (benefit) provision		(3,959	)		9,896			4,694			12,538

Deferred:
Domestic		1,980			(5,723	)		(13,958	)		3,642
Foreign		(3,422	)		5,280			(9,113	)		6,423
Total deferred income tax (benefit) provision		(1,442	)		(443	)		(23,071	)		10,065
Total income tax (benefit) provision	$	(5,401	)	$	9,453		$	(18,377	)	$	22,603


	September 30, 2023		December 31, 2022
Total assets:
Greens Creek	$	568,881	$	582,687
Lucky Friday		564,746		571,510
Keno Hill		354,149		276,096
Casa Berardi		694,030		681,631
Nevada Operations		461,706		466,722
Other		317,644		348,526
	$	2,961,156	$	2,927,172


Grant date	Award type	Number granted	Grant date fair value per share
June 21, 2023	Restricted stock	1,230,223	$5.05
June 21, 2023	Performance based	314,778	$3.54
August 7, 2023	Restricted stock	51,357	$5.16
August 7, 2023	Performance based	21,318	$3.54


Quarter	Prior Quarter Realized Silver Price	Silver-linked component	Minimum component	Total dividend per share
First	22.03	$0.0025	$0.00375	$0.00625
Second	22.62	$0.0025	$0.00375	$0.00625
Third	23.67	$0.0025	$0.00375	$0.00625


	Changes in fair value of derivative contracts designated as hedge transactions			Adjustments For Pension Plans			Total Accumulated Other Comprehensive Income (Loss), Net
Balance January 1, 2023	$	9,162		$	(6,714	)		2,448
Changes in fair value of derivative contracts		8,665			—			8,665
Gains and deferred gains transferred from accumulated other comprehensive income		(2,149	)		—			(2,149	)
Balance March 31, 2023	$	15,678		$	(6,714	)	$	8,964
Changes in fair value of derivative contracts		7,445			—			7,445
Gains and deferred gains transferred from accumulated other comprehensive income		(2,213	)		—			(2,213	)
Balance June 30, 2023	$	20,910		$	(6,714	)	$	14,196
Changes in fair value of derivative contracts		(5,265	)		—			(5,265	)
Gains and deferred gains transferred from accumulated other comprehensive income		(6,119	)		—			(6,119	)
Balance September 30, 2023	$	9,526		$	(6,714	)	$	2,812


	September 30, 2023
	Senior Notes			IQ Notes		Total
Principal	$	475,000		$	35,677	$	510,677
Unamortized discount/premium and issuance costs		(3,958	)		284		(3,674	)
Long-term debt balance	$	471,042		$	35,961	$	507,003


Twelve-month period ending September 30,	Senior Notes		IQ Notes		Finance Leases			Operating Leases
2024	$	34,438	$	2,324	$	9,313		$	1,802
2025		34,438		37,468		8,888			1,277
2026		34,438		—		6,415			1,273
2027		34,438		—		3,389			1,199
2028		487,912		—		4,156			1,081
Thereafter		—		—		—			5,807
		625,664		39,792		32,161			12,439
Less: effect of discounting		—		—		(2,918	)		(3,069	)
Total	$	625,664	$	39,792	$	29,243		$	9,370


	September 30,		December 31,
Balance sheet line item:	2023		2022
Other current assets	$	0.9	$	1.1
Other non-current assets	$	0.4	$	0.4
Other current liabilities	$	3.3	$	4.0
Other non-current liabilities	$	2.2	$	3.6


September 30, 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		931		—		—		11,188	$	23.30	N/A	N/A		$	1.00
Contracts on forecasted sales
2023 settlements		—		—		441		7,992	N/A		N/A	$	1.51	$	0.99
2024 settlements		—		—		—		74,902	N/A		N/A	N/A		$	0.97
2025 settlements		—		—		—		44,754	N/A		N/A	N/A		$	0.97


Description	Balance at September 30, 2023		Balance at December 31, 2022		Input Hierarchy Level
Assets:
Cash and cash equivalents:
Money market funds and other bank deposits	$	100,685	$	104,743	Level 1
Current and non-current investments:
Equity securities - mining industry		16,594		24,018	Level 1
Trade accounts receivable:
Receivables from provisional concentrate sales		16,685		45,146	Level 2
Restricted cash balances:
Certificates of deposit and other deposits		1,163		1,164	Level 1
Derivative contracts - current and non-current derivatives assets:
Foreign exchange contracts		1,343		1,518	Level 2
Metal forward contracts		1,241		1,309	Level 2
Total assets	$	137,711	$	177,898

Liabilities:
Derivative contracts - current derivatives liabilities and other non-current liabilities:
Foreign exchange contracts	$	5,549	$	7,548	Level 2
Metal forward contracts		1,128		14,643	Level 2
Total liabilities	$	6,677	$	22,191

	September 30, 2017		December 31, 2016
Identifiable assets:
Greens Creek	$	666,463	$	681,303
Lucky Friday		432,752		442,829
Casa Berardi		814,053		806,044
San Sebastian		55,395		33,608
Other		427,520		407,893
	$	2,396,183	$	2,371,677

Quarterly average realized silver price per ounce		Quarterly dividend per share		Annualized dividend per share
$	30	$	0.01	$	0.04
$	35	$	0.02	$	0.08
$	40	$	0.03	$	0.12
$	45	$	0.04	$	0.16
$	50	$	0.05	$	0.20

Interest rates:
Spread over the London Interbank Offer Rate	2.25	-	3.25%
Spread over alternative base rate	1.25	-	2.25%
Standby fee per annum on undrawn amounts		0.50%
Covenant financial ratios:
Senior leverage ratio (debt secured by liens/EBITDA)	not more than 2.50:1
Leverage ratio (total debt less unencumbered cash/EBITDA)	not more than 4.00:1
Interest coverage ratio (EBITDA/interest expense)	not more than 3.00:1

Twelve-month period ending September 30,
2018	$	6,293
2019		4,179
2020		2,369
2021		1,260
Total		14,101
Less: imputed interest		(813	)
Net capital lease obligation	$	13,288

September 30, 2017	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
2017 settlements		1,399		5		19,070		2,535	$	17.18	$	1,298	$	1.33	$	1.07
2018 settlements		—		—		2,370		—		N/A		N/A	$	1.38		N/A
Contracts on forecasted sales
2017 settlements		—		—		441		2,866		N/A		N/A	$	1.23	$	1.05
2018 settlements		—		—		39,463		17,968		N/A		N/A	$	1.27	$	1.05
2019 settlements		—		—		14,330		8,267		N/A		N/A	$	1.30	$	1.07
2020 settlements		—		—		3,307		2,205		N/A		N/A	$	1.27	$	1.07

Description	Balance at September 30, 2017		Balance at December 31, 2016		Input Hierarchy Level
Assets:
Cash and cash equivalents:
Money market funds and other bank deposits	$	172,923	$	169,777	Level 1
Available for sale securities:
Debt securities - municipal and corporate bonds		32,973		29,117	Level 2
Equity securities – mining industry		7,098		5,002	Level 1
Trade accounts receivable:
Receivables from provisional concentrate sales		6,982		20,082	Level 2
Restricted cash balances:
Certificates of deposit and other bank deposits		1,076		2,200	Level 1
Derivative contracts:
Foreign exchange contracts		6,533		27	Level 2
Metal forward contracts		394		5,403	Level 2
Total assets	$	227,979	$	231,608

Liabilities:
Derivative contracts:
Foreign exchange contracts	$	—	$	5,288	Level 2
Metal forward contracts		11,902		192	Level 2
Total liabilities	$	11,902	$	5,480

	As of September 30, 2017
	Parent		Guarantors			Non-Guarantors			Eliminations			Consolidated
	(in thousands)
Assets
Cash and cash equivalents	$	101,061	$	18,124		$	53,738		$	—		$	172,923
Other current assets		47,514		51,190			40,283			(575	)		138,412
Properties, plants, and equipment - net		1,964		1,248,762			774,881			—			2,025,607
Intercompany receivable (payable)		461,542		(222,677	)		(351,019	)		112,154			—
Investments in subsidiaries		1,491,449		—			—			(1,491,449	)		—
Other non-current assets		6,321		199,794			6,906			(153,780	)		59,241
Total assets	$	2,109,851	$	1,295,193		$	524,789		$	(1,533,650	)	$	2,396,183
Liabilities and Stockholders' Equity
Current liabilities	$	46,720	$	56,189		$	38,183		$	(25,295	)	$	115,797
Long-term debt		501,917		3,115			4,321			—			509,353
Non-current portion of accrued reclamation		—		61,964			18,794			—			80,758
Non-current deferred tax liability		—		13,349			126,280			(16,906	)		122,723
Other non-current liabilities		48,273		5,363			975			—			54,611
Shareholders' equity		1,512,941		1,155,213			336,236			(1,491,449	)		1,512,941
Total liabilities and stockholders' equity	$	2,109,851	$	1,295,193		$	524,789		$	(1,533,650	)	$	2,396,183

	As of December 31, 2016
	Parent		Guarantors			Non-Guarantors			Eliminations			Consolidated
	(in thousands)
Assets
Cash and cash equivalents	$	113,275	$	24,388		$	32,114		$	—		$	169,777
Other current assets		33,950		52,400			35,537			(573	)		121,314
Properties, plants, and equipment - net		2,103		1,258,890			771,692			—			2,032,685
Intercompany receivable (payable)		404,121		(222,072	)		(307,018	)		124,969			—
Investments in subsidiaries		1,496,787		—			—			(1,496,787	)		—
Other non-current assets		4,186		199,957			5,337			(161,579	)		47,901
Total assets	$	2,054,422	$	1,313,563		$	537,662		$	(1,533,970	)	$	2,371,677
Liabilities and Stockholders' Equity
Current liabilities	$	22,401	$	86,730		$	40,093		$	(22,999	)	$	126,225
Long-term debt		500,979		3,065			2,773			—			506,817
Non-current portion of accrued reclamation		—		63,025			16,902			—			79,927
Non-current deferred tax liability		—		14,212			122,855			(14,212	)		122,855
Other non-current liabilities		51,198		5,108			(325	)		28			56,009
Stockholders' equity		1,479,844		1,141,423			355,364			(1,496,787	)		1,479,844
Total liabilities and stockholders' equity	$	2,054,422	$	1,313,563		$	537,662		$	(1,533,970	)	$	2,371,677

In thousands (except per ounce amounts)	Three Months Ended September 30, 2017
	Greens Creek			Lucky Friday⁽²⁾			San Sebastian			Corporate⁽³⁾		Total Silver			Casa Berardi (Gold)			Total
Cost of sales and other direct production costs and depreciation, depletion and amortization	$	41,927			—		$	6,680				$	48,607		$	48,595		$	97,202
Depreciation, depletion and amortization		(12,607	)		—			(641	)				(13,248	)		(15,596	)		(28,844	)
Treatment costs		12,067			440			422					12,929			682			13,611
Change in product inventory		7,675			1,960			(627	)				9,008			(288	)		8,720
Reclamation and other costs		(394	)		18			(494	)				(870	)		(124	)		(994	)
Cash Cost, Before By-product Credits ⁽¹⁾		48,668			2,418			5,340					56,426			33,269			89,695
Reclamation and other costs		666			38			117					821			123			944
Exploration		1,944			(2	)		1,495			477		3,914			1,161			5,075
Sustaining capital		8,210			119			402			1,105		9,836			13,775			23,611
General and administrative											9,529		9,529						9,529
AISC, Before By-product Credits ⁽¹⁾		59,488			2,573			7,354					80,526			48,328			128,854
By-product credits:
Zinc		(27,046	)		(293	)							(27,339	)					(27,339	)
Gold		(13,907	)					(8,088	)				(21,995	)					(21,995	)
Lead		(8,067	)		(1,102	)							(9,169	)					(9,169	)
Silver																(161	)		(161	)
Total By-product credits		(49,020	)		(1,395	)		(8,088	)				(58,503	)		(161	)		(58,664	)
Cash Cost, After By-product Credits	$	(352	)	$	1,023		$	(2,748	)			$	(2,077	)	$	33,108		$	31,031
AISC, After By-product Credits	$	10,468		$	1,178		$	(734	)			$	22,023		$	48,167		$	70,190
Divided by ounces produced		2,344			88			880					3,312			44
Cash Cost, Before By-product Credits, per Ounce	$	20.75		$	27.44		$	6.07				$	17.03		$	753.70
By-product credits per ounce		(20.90	)		(15.84	)		(9.19	)				(17.66	)		(3.65	)
Cash Cost, After By-product Credits, per Ounce	$	(0.15	)	$	11.60		$	(3.12	)			$	(0.63	)	$	750.05
AISC, Before By-product Credits, per Ounce	$	25.37		$	29.21		$	8.36				$	24.31		$	1,094.86
By-product credits per ounce		(20.90	)		(15.84	)		(9.19	)				(17.66	)		(3.65	)
AISC, After By-product Credits, per Ounce	$	4.47		$	13.37		$	(0.83	)			$	6.65		$	1,091.21

In thousands (except per ounce amounts)	Three Months Ended September 30, 2016
	Greens Creek			Lucky Friday⁽²⁾			San Sebastian			Corporate⁽³⁾		Total Silver			Casa Berardi (Gold)			Total
Cost of sales and other direct production costs and depreciation, depletion and amortization	$	58,397		$	19,484		$	6,532				$	84,413		$	36,295		$	120,708
Depreciation, depletion and amortization		(16,091	)		(2,946	)		(677	)				(19,714	)		(10,465	)		(30,179	)
Treatment costs		15,114			5,211			348					20,673			218			20,891
Change in product inventory		(10,407	)		(46	)		930					(9,523	)		3,460			(6,063	)
Reclamation and other costs		2,273			(171	)		(140	)				1,962			(115	)		1,847
Cash Cost, Before By-product Credits ⁽¹⁾		49,286			21,532			6,993					77,811			29,393			107,204
Reclamation and other costs		682			165			42					889			117			1,006
Exploration		349			—			1,051			421		1,821			655			2,476
Sustaining capital		14,162			9,725			506			76		24,469			16,078			40,547
General and administrative											11,155		11,155						11,155
AISC, Before By-product Credits ⁽¹⁾		64,479			31,422			8,592					116,145			46,243			162,388
By-product credits:
Zinc		(17,152	)		(4,201	)							(21,353	)					(21,353	)
Gold		(13,807	)					(10,922	)				(24,729	)					(24,729	)
Lead		(6,577	)		(9,284	)							(15,861	)					(15,861	)
Silver																(162	)		(162	)
Total By-product credits		(37,536	)		(13,485	)		(10,922	)				(61,943	)		(162	)		(62,105	)
Cash Cost, After By-product Credits	$	11,750		$	8,047		$	(3,929	)			$	15,868		$	29,231		$	45,099
AISC, After By-product Credits	$	26,943		$	17,937		$	(2,330	)			$	54,202		$	46,081		$	100,283
Divided by ounces produced		2,445			887			976					4,308			32
Cash Cost, Before By-product Credits, per Ounce	$	20.15		$	24.26		$	7.16				$	18.06		$	920.00
By-product credits per ounce		(15.35	)		(15.19	)		(11.19	)				(14.38	)		(5.07	)
Cash Cost, After By-product Credits, per Ounce	$	4.80		$	9.07		$	(4.03	)			$	3.68		$	914.93
AISC, Before By-product Credits, per Ounce	$	26.37		$	35.41		$	8.80				$	26.96		$	1,447.40
By-product credits per ounce		(15.35	)		(15.19	)		(11.19	)				(14.38	)		(5.07	)
AISC, After By-product Credits, per Ounce	$	11.02		$	20.22		$	(2.39	)			$	12.58		$	1,442.33

In thousands (except per ounce amounts)	Nine Months Ended September 30, 2017
	Greens Creek			Lucky Friday⁽²⁾			San Sebastian			Corporate⁽³⁾		Total Silver			Casa Berardi (Gold)			Total
Cost of sales and other direct production costs and depreciation, depletion and amortization	$	140,241		$	14,542		$	18,377				$	173,160		$	134,742		$	307,902
Depreciation, depletion and amortization		(39,442	)		(2,433	)		(2,036	)				(43,911	)		(39,454	)		(83,365	)
Treatment costs		37,621			4,257			906					42,784			1,774			44,558
Change in product inventory		5,398			1,811			(192	)				7,017			881			7,898
Reclamation and other costs		(1,474	)		(163	)		(1,089	)				(2,726	)		(354	)		(3,080	)
Cash Cost, Before By-product Credits ⁽¹⁾		142,344			18,014			15,966					176,324			97,589			273,913
Reclamation and other costs		1,999			217			351					2,567			353			2,920
Exploration		3,339			(1	)		4,984			1,307		9,629			3,029			12,658
Sustaining capital		24,895			4,109			2,379			2,275		33,658			38,245			71,903
General and administrative											29,044		29,044						29,044
AISC, Before By-product Credits ⁽¹⁾		172,577			22,339			23,680					251,222			139,216			390,438
By-product credits:
Zinc		(72,472	)		(4,353	)							(76,825	)					(76,825	)
Gold		(42,675	)					(24,032	)				(66,707	)					(66,707	)
Lead		(22,696	)		(8,599	)							(31,295	)					(31,295	)
Silver																(450	)		(450	)
Total By-product credits		(137,843	)		(12,952	)		(24,032	)				(174,827	)		(450	)		(175,277	)
Cash Cost, After By-product Credits	$	4,501		$	5,062		$	(8,066	)			$	1,497		$	97,139		$	98,636
AISC, After By-product Credits	$	34,734		$	9,387		$	(352	)			$	76,395		$	138,766		$	215,161
Divided by ounces produced		6,206			769			2,498					9,473			113
Cash Cost, Before By-product Credits, per Ounce	$	22.94		$	23.42		$	6.39				$	18.62		$	862.02
By-product credits per ounce		(22.21	)		(16.84	)		(9.62	)				(18.46	)		(3.97	)
Cash Cost, After By-product Credits, per Ounce	$	0.73		$	6.58		$	(3.23	)			$	0.16		$	858.05
AISC, Before By-product Credits, per Ounce	$	27.81		$	29.05		$	9.48				$	26.52		$	1,229.72
By-product credits per ounce		(22.21	)		(16.84	)		(9.62	)				(18.46	)		(3.97	)
AISC, After By-product Credits, per Ounce	$	5.60		$	12.21		$	(0.14	)			$	8.06		$	1,225.75

In thousands (except per ounce amounts)	Nine Months Ended September 30, 2016
	Greens Creek			Lucky Friday⁽²⁾			San Sebastian			Corporate⁽³⁾		Total Silver			Casa Berardi (Gold)			Total
Cost of sales and other direct production costs and depreciation, depletion and amortization	$	146,984		$	56,696		$	23,435				$	227,115		$	106,639		$	333,754
Depreciation, depletion and amortization		(40,746	)		(8,775	)		(2,508	)				(52,029	)		(32,563	)		(84,592	)
Treatment costs		46,069			15,323			1,193					62,585			627			63,212
Change in product inventory		(6,083	)		(1,102	)		1,743					(5,442	)		4,212			(1,230	)
Reclamation and other costs		348			(556	)		(1,583	)				(1,791	)		(344	)		(2,135	)
Cash Cost, Before By-product Credits ⁽¹⁾		146,572			61,586			22,280					230,438			78,571			309,009
Reclamation and other costs		2,045			495			126					2,666			345			3,011
Exploration		1,368			—			2,349			1,286		5,003			2,280			7,283
Sustaining capital		35,199			32,203			1,494			486		69,382			48,860			118,242
General and administrative											31,728		31,728						31,728
AISC, Before By-product Credits ⁽¹⁾		185,184			94,284			26,249					339,217			130,056			469,273
By-product credits:
Zinc		(52,104	)		(10,685	)							(62,789	)					(62,789	)
Gold		(42,017	)					(33,961	)				(75,978	)					(75,978	)
Lead		(19,598	)		(25,485	)							(45,083	)					(45,083	)
Silver																(409	)		(409	)
Total By-product credits		(113,719	)		(36,170	)		(33,961	)				(183,850	)		(409	)		(184,259	)
Cash Cost, After By-product Credits	$	32,853		$	25,416		$	(11,681	)			$	46,588		$	78,162		$	124,750
AISC, After By-product Credits	$	71,465		$	58,114		$	(7,712	)			$	155,367		$	129,647		$	285,014
Divided by ounces produced		7,021			2,722			3,434					13,177			104
Cash Cost, Before By-product Credits, per Ounce	$	20.88		$	22.63		$	6.49				$	17.49		$	753.45
By-product credits per ounce		(16.20	)		(13.29	)		(9.89	)				(13.95	)		(3.92	)
Cash Cost, After By-product Credits, per Ounce	$	4.68		$	9.34		$	(3.40	)			$	3.54		$	749.53
AISC, Before By-product Credits, per Ounce	$	26.38		$	34.64		$	7.64				$	25.74		$	1,247.15
By-product credits per ounce		(16.20	)		(13.29	)		(9.89	)				(13.95	)		(3.92	)
AISC, After By-product Credits, per Ounce	$	10.18		$	21.35		$	(2.25	)			$	11.79		$	1,243.23