Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Aug. 02, 2016 | |
Document Information [Line Items] | ||
Entity Registrant Name | HECLA MINING CO/DE/ | |
Entity Central Index Key | 719,413 | |
Trading Symbol | hl | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Common Stock, Shares Outstanding (in shares) | 386,439,941 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 143,613,000 | $ 155,209,000 |
Investments | 15,070,000 | |
Accounts receivable: | ||
Trade | 25,667,000 | 13,490,000 |
Taxes | 12,142,000 | 11,458,000 |
Other, net | 32,952,000 | 16,401,000 |
Inventories: | ||
Concentrates, doré, and stockpiled ore | 28,336,000 | 22,441,000 |
Materials and supplies | 23,070,000 | 23,101,000 |
Current deferred income taxes | 18,386,000 | 17,980,000 |
Current restricted cash | 3,900,000 | |
Other current assets | 7,999,000 | 9,453,000 |
Total current assets | 311,135,000 | 269,533,000 |
Non-current investments | 4,453,000 | 1,515,000 |
Non-current restricted cash and investments | 999,000 | 999,000 |
Properties, plants, equipment and mineral interests, net | 1,926,158,000 | 1,896,811,000 |
Non-current deferred income taxes | 24,427,000 | 36,589,000 |
Reclamation insurance asset | 13,695,000 | |
Other non-current assets and deferred charges | 3,638,000 | 2,783,000 |
Total assets | 2,270,810,000 | 2,221,925,000 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 57,702,000 | 51,277,000 |
Accrued payroll and related benefits | 23,712,000 | 27,563,000 |
Accrued taxes | 4,344,000 | 8,915,000 |
Current portion of capital leases | 7,761,000 | 8,735,000 |
Current portion of debt | 1,852,000 | 2,721,000 |
Other current liabilities | 10,290,000 | 6,884,000 |
Current portion of accrued reclamation and closure costs | 24,127,000 | 20,989,000 |
Total current liabilities | 129,788,000 | 127,084,000 |
Capital leases | 7,316,000 | 8,841,000 |
Accrued reclamation and closure costs | 73,019,000 | 74,549,000 |
Long-term debt | 500,354,000 | 500,199,000 |
Non-current deferred tax liability | 127,413,000 | 119,623,000 |
Non-current pension liability | 47,880,000 | 46,513,000 |
Other non-current liabilities | 5,362,000 | 6,190,000 |
Total liabilities | 891,132,000 | 882,999,000 |
Commitments and contingencies (Notes 2, 4, 7, 9, and 11) | ||
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 | 39,000 | 39,000 |
Common stock, $0.25 par value, authorized 500,000,000 shares; issued and outstanding 2016 — 385,066,800 shares and 2015 — 378,112,840 shares | 97,207,000 | 95,219,000 |
Capital surplus | 1,538,148,000 | 1,519,598,000 |
Accumulated deficit | (211,258,000) | (232,565,000) |
Accumulated other comprehensive loss | (30,327,000) | (32,631,000) |
Less treasury stock, at cost; 2016 — 3,733,742 shares and 2015 — 2,435,518 shares issued and held in treasury | (14,131,000) | (10,734,000) |
Total shareholders’ equity | 1,379,678,000 | 1,338,926,000 |
Total liabilities and shareholders’ equity | $ 2,270,810,000 | $ 2,221,925,000 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Series B preferred stock, par value (in dollars per share) | $ 0.25 | $ 0.25 |
Series B preferred stock, shares issued (in shares) | 157,816 | 157,816 |
Series B preferred stock, shares outstanding (in shares) | 157,816 | 157,816 |
Series B preferred stock, liquidation preference | $ 7,891 | $ 7,891 |
Common stock, par value (in dollars per share) | $ 0.25 | $ 0.25 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 385,066,800 | 378,112,840 |
Common stock, shares outstanding (in shares) | 385,066,800 | 378,112,840 |
Treasury stock, shares (in shares) | 3,733,742 | 2,435,518 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Sales of products | $ 171,302 | $ 104,197 | $ 302,319 | $ 223,289 |
Cost of sales and other direct production costs | 82,953 | 67,567 | 157,273 | 141,532 |
Depreciation, depletion and amortization | 29,897 | 27,166 | 55,772 | 52,420 |
112,850 | 94,733 | 213,045 | 193,952 | |
Gross profit | 58,452 | 9,464 | 89,274 | 29,337 |
Other operating expenses: | ||||
General and administrative | 10,359 | 8,296 | 20,573 | 17,016 |
Exploration | 3,362 | 4,592 | 6,312 | 9,208 |
Pre-development | 521 | 1,618 | 925 | 2,138 |
Other operating expense | 622 | 766 | 1,262 | 1,394 |
Provision for closed operations and environmental matters | 1,576 | 9,335 | 2,617 | 9,802 |
Acquisition costs | 402 | 2,147 | 402 | 2,147 |
16,842 | 26,754 | 32,091 | 41,705 | |
Income (loss) from operations | 41,610 | (17,290) | 57,183 | (12,368) |
Other income (expense): | ||||
Loss on disposition of investments | (166) | (166) | ||
Unrealized gain (loss) on investments | 1,150 | (117) | 439 | (2,960) |
(Loss) gain on derivative contracts | (6) | (887) | (6) | 4,905 |
Net foreign exchange (loss) gain | (1,885) | (1,833) | (10,088) | 10,441 |
Interest and other income | 113 | 35 | 201 | 73 |
Interest expense, net of amount capitalized | (5,370) | (6,541) | (11,081) | (12,733) |
(5,998) | (9,509) | (20,535) | (440) | |
Income (loss) before income taxes | 35,612 | (26,799) | 36,648 | (12,808) |
Income tax (provision) benefit | (11,496) | 132 | (13,150) | (1,307) |
Net income (loss) | 24,116 | (26,667) | 23,498 | (14,115) |
Preferred stock dividends | (138) | (138) | (276) | (276) |
Income (loss) applicable to common shareholders | 23,978 | (26,805) | 23,222 | (14,391) |
Comprehensive income (loss): | ||||
Net income (loss) | 24,116 | (26,667) | 23,498 | (14,115) |
Change in fair value of derivative contracts designated as hedge transactions | 46 | 46 | ||
Reclassification of loss on disposition or impairment of marketable securities included in net income (loss) | 166 | 1,000 | 2,993 | |
Unrealized holding (losses) gains on investments | 1,193 | (1,321) | 1,258 | (2,212) |
Comprehensive income (loss) | $ 25,355 | $ (27,822) | $ 25,802 | $ (13,334) |
Basic income (loss) per common share after preferred dividends (in dollars per share) | $ 0.06 | $ (0.07) | $ 0.06 | $ (0.04) |
Diluted income (loss) per common share after preferred dividends (in dollars per share) | $ 0.06 | $ (0.07) | $ 0.06 | $ (0.04) |
Weighted average number of common shares outstanding - basic (in shares) | 383,790 | 371,295 | 381,389 | 370,042 |
Weighted average number of common shares outstanding - diluted (in shares) | 387,512 | 371,295 | 384,685 | 370,042 |
Cash dividends declared per common share (in dollars per share) | $ 0.0025 | $ 0.0025 | $ 0.005 | $ 0.005 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Operating activities: | ||
Net income (loss) | $ 23,498 | $ (14,115) |
Non-cash elements included in net income (loss): | ||
Depreciation, depletion and amortization | 56,968 | 52,966 |
(Gain) loss on investments | (439) | 3,043 |
(Gain) loss on disposition of properties, plants, equipment, and mineral interests | (311) | 190 |
Provision for reclamation and closure costs | 2,005 | 10,256 |
Stock compensation | 3,467 | 2,261 |
Deferred income taxes | 10,652 | (705) |
Amortization of loan origination fees | 926 | 910 |
Loss on derivative contracts | 5,419 | 7,812 |
Foreign exchange loss (gain) | 9,721 | (9,672) |
Other non-cash charges, net | 17 | 25 |
Change in assets and liabilities, net of business acquired: | ||
Accounts receivable | (15,910) | 2,469 |
Inventories | (5,802) | (3,417) |
Other current and non-current assets | 268 | (3,904) |
Accounts payable and accrued liabilities | (3,820) | (4,210) |
Accrued payroll and related benefits | 3,135 | 803 |
Accrued taxes | (4,591) | (1,938) |
Accrued reclamation and closure costs and other non-current liabilities | 935 | 9,399 |
Cash provided by operating activities | 86,138 | 52,173 |
Investing activities: | ||
Additions to properties, plants, equipment and mineral interests | (76,960) | (58,272) |
Acquisition of Revett, net of cash acquired | (809) | |
Proceeds from disposition of properties, plants and equipment | 317 | 153 |
Purchases of investments | (16,088) | (947) |
Maturities of investments | 840 | |
Changes in restricted cash and investment balances | (3,900) | |
Net cash used in investing activities | (95,791) | (59,875) |
Financing activities: | ||
Proceeds from sale of common stock, net of offering costs | 8,121 | |
Acquisition of treasury shares | (3,384) | (941) |
Dividends paid to common shareholders | (1,914) | (1,850) |
Dividends paid to preferred shareholders | (276) | (276) |
Credit availability and debt issuance fees paid | (83) | (123) |
Repayments of debt | (1,339) | |
Repayments of capital leases | (4,356) | (4,940) |
Net cash used in financing activities | (3,231) | (8,130) |
Effect of exchange rates on cash | 1,288 | (2,259) |
Net decrease in cash and cash equivalents | (11,596) | (18,091) |
Cash and cash equivalents at beginning of period | 155,209 | 209,665 |
Cash and cash equivalents at end of period | 143,613 | 191,574 |
Significant non-cash investing and financing activities: | ||
Addition of capital lease obligations | 1,631 | 2,369 |
Common stock issued for the acquisition of Revett | 19,133 | |
Payment of accrued compensation in stock | $ 5,511 | $ 3,016 |
Note 1 - Basis of Preparation o
Note 1 - Basis of Preparation of Financial Statements | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block] | Note 1. Basis of Preparation of Financial Statements In the opinion of management, the accompanying unaudited interim condensed consolidated financial statements and notes to the 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 (“we” or “our” or “us”). See Note 4 Note 13 The results of operations for the 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. Certain information and footnote disclosures normally included in audited financial statements prepared in accordance with generally accepted accounting principles 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. The preparation 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, ultimate results could differ materially from those estimates. |
Note 2 - Investments and Restri
Note 2 - Investments and Restricted Cash | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Cash Restricted Cash And Investments [Text Block] | Note 2. Investments and Restricted Cash Investments Our current investments, which are classified as "available for sale" and consist of bonds having maturities of greater than 90 days, had a fair value and cost basis of $15.1 million at June 30, 2016. We held no such investments as of December 31, 2015. At June 30, 2016 and December 31, 2015, the fair value of our non-current investments was $4.5 million and $1.5 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 $3.2 million and $4.0 million at June 30, 2016 and December 31, 2015, respectively. During the first quarters of 2016 and 2015, we recognized impairment charges against current earnings of $1.0 million and $2.8 million, respectively, as we determined the impairments to be other-than-temporary. Restricted Cash and Investments Various laws, permits, and covenants require that funds be in place for certain environmental and reclamation obligations and other potential liabilities. We had a current restricted cash balance of $3.9 million as of June 30, 2016 representing funds deposited in escrow to be applied towards a potential settlement of environmental matters for the South Dakota and Colorado Superfund sites related to CoCa Mines, Inc. (see Note 4 |
Note 3 - Income Taxes
Note 3 - Income Taxes | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | Note 3. Income Taxes Major components of our income tax provision (benefit) for the three and six months ended June 30, 2016 and 2015 are as follows (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Current: Domestic $ 2,506 $ 1,768 $ — $ 1,865 Foreign 1,627 (553 ) 2,642 155 Total current income tax provision (benefit) 4,133 1,215 2,642 2,020 Deferred: Domestic 8,777 1,167 9,365 3,588 Foreign (1,414 ) (2,514 ) 1,143 (4,301 ) Total deferred income tax benefit 7,363 (1,347 ) 10,508 (713 ) Total income tax provision (benefit) $ 11,496 $ (132 ) $ 13,150 $ 1,307 As of June 30, 2016, we have a net deferred tax asset in the U.S. of $33.5 million, a net deferred tax liability in Canada of $128.4 million, and a net deferred tax asset in Mexico of $9.3 million, for a consolidated worldwide net deferred tax liability of $85.6 million. Our ability to utilize our deferred tax assets depends on future taxable income generated from operations. At June 30, 2016 and December 31, 2015, the balances of the valuation allowances on our deferred tax assets were $110 million and $116 million, respectively, primarily for net operating losses and tax credit carryforwards. The amount of the deferred tax asset considered recoverable, however, could be reduced in the near term if estimates of future taxable income are reduced. During the quarter ended June 30, 2016, there was a change in judgment about the realizability of our deferred tax assets in Mexico. Based on revised projections of future taxable income, tax net operating losses are now projected to be fully utilized. The valuation allowance in Mexico decreased to $1.3 million based on this change in judgment. The current income tax provisions for the three months ended June 30, 2016 and 2015 vary from the amounts that would have resulted from applying the statutory income tax rate to pre-tax income due primarily to the effects of percentage depletion for all periods presented and the impact of taxation in foreign jurisdictions. |
Note 4 - Commitments, Contingen
Note 4 - Commitments, Contingencies and Obligations | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | Note 4. Commitments, Contingencies and Obligations General We follow the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") guidance in determining our accruals and disclosures with respect to 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 issuance of the financial statements indicates that it is probable that a liability could be incurred and the amount of the loss can be reasonably estimated. Legal expenses associated with the contingency are expensed as incurred. If a loss contingency is not probable or reasonably estimable, disclosure of the loss contingency is made in the financial statements when it is at least reasonably possible that a material loss could be incurred. Rio Grande Silver Guaranty Our wholly-owned subsidiary, Rio Grande Silver Inc. (“Rio”), is party to a joint venture with Emerald Mining & Leasing, LLC (“EML”) and certain other parties with respect to a land package in the Creede Mining District of Colorado that is adjacent to other land held by Rio. Rio holds a 70% interest in the joint venture. In connection with the joint venture, we are required to guarantee certain environmental remediation-related obligations of EML to a third party up to a maximum liability to us of $2.5 million. As of June 30, 2016, we have not been required to make any payments pursuant to the guaranty. We may be required to make payments in the future, limited to the $2.5 million maximum liability, should EML fail to meet its obligations to the third party. However, to the extent that any payments are made by us under the guaranty, EML, in addition to other parties, has jointly and severally agreed to reimburse and indemnify us for any such payments. We have not recorded a liability relating to the guaranty as of June 30, 2016. Lucky Friday Water Permit Matters Over the last several years, the Lucky Friday unit has experienced several regulatory issues relating to its water discharge permits and water management more generally. In December 2013, the EPA issued to Hecla Limited a notice of violation (“2013 NOV”) alleging certain storm water reporting violations under Lucky Friday’s Clean Water Act Multi-Sector General Stormwater Permit for Industrial Activities. The alleged violations were resolved. The 2013 NOV also contained a request for information under Section 308 of the Clean Water Act directing Hecla Limited to undertake a comprehensive groundwater investigation of Lucky Friday’s tailings pond no. 3 to evaluate whether the pond is causing the discharge of pollutants via seepage to groundwater that is discharging to surface water. We completed the investigation mandated by the EPA and submitted a draft report to the agency in December 2015. We are waiting for the EPA’s response, and until such time as the process is complete, we cannot predict what the impact of the investigation will be. Hecla Limited strives to maintain its water discharges at the Lucky Friday unit in full compliance with its permits and applicable laws, however, we cannot provide assurance that in the future it will be able to fully comply with the permit limits and other regulatory requirements regarding water management. Johnny M Mine Area near San Mateo, McKinley County, New Mexico In May 2011, the EPA made a formal request to Hecla Mining Company for information regarding the Johnny M Mine Area near San Mateo, McKinley County, New Mexico, and asserted that Hecla Mining Company may be responsible under CERCLA for environmental remediation and past costs the EPA has incurred at the site. Mining at the Johnny M was conducted for a limited period of time by a predecessor of our subsidiary, Hecla Limited. In August 2012, Hecla Limited and the EPA entered into a Settlement Agreement and Administrative Order on Consent for Removal Action (“Consent Order”), pursuant to which Hecla Limited agreed to pay (i) $1.1 million to the EPA for its past response costs at the site and (ii) any future response costs at the site under the Consent Order, in exchange for a covenant not to sue by the EPA. Hecla Limited paid the approximately $1.1 million to the EPA for its past response costs and in December 2014, submitted to EPA the Engineering Evaluation and Cost Analysis (“EE/CA”) for the site. The EE/CA evaluates three alternative response actions: 1) no action, 2) off-site disposal, and 3) on-site disposal. The range in estimated costs of these alternatives is $0 to $221 million. In the EE/CA, Hecla Limited recommended that EPA approve on-site disposal, which is currently estimated to cost $5.6 million, on the basis that it is the most appropriate response action under CERCLA. In June 2015, the EPA approved the EE/CA, with a few minor conditions. The EPA still needs to publish the EE/CA for public notice and comment, and the agency will not make a final decision on the appropriate response action until the public comment process is complete. It is anticipated that Hecla Limited will implement the response action selected by the EPA pursuant to an amendment to the Consent Order or a new order. Based on the foregoing, we believe it is probable that Hecla Limited will incur a liability for remediation at the site, and our best estimate of that liability as of the date of this report is $5.6 million, and we have accrued that amount. There can be no assurance that Hecla Limited’s liability will not be more than $5.6 million, or that its ultimate liability will not have a material adverse effect on Hecla Limited’s or our results of operations or financial position. In August 2016, we learned that an individual filed a lawsuit against Hecla Limited and certain affiliates in state court in New Mexico alleging personal injury claims arising from alleged exposure to contaminants as a result of allegedly living on land adjacent to the Johnny M mine site. We do not yet have enough information to conclude if Hecla Limited has any liability or to estimate any loss that it may incur. Carpenter Snow Creek Site, Cascade County, Montana In July 2010, the EPA made a formal request to Hecla Mining Company for information regarding the Carpenter Snow Creek Superfund Site located in Cascade County, Montana. The Carpenter Snow Creek Site is located in a historic mining district, and in the early 1980s Hecla Limited leased 6 mining claims and performed limited exploration activities at the site. Hecla Limited terminated the mining lease in 1988. In June 2011, the EPA informed Hecla Limited that it believes Hecla Limited, among several other viable companies, may be liable for cleanup of the site or for costs incurred by the EPA in cleaning up the site. The EPA stated in the June 2011 letter that it has incurred approximately $4.5 million in response costs and estimated that total remediation costs may exceed $100 million. Hecla Limited cannot with reasonable certainty estimate the amount or range of liability, if any, relating to this matter because of, among other reasons, the lack of information concerning the site. South Dakota and Colorado Superfund Sites Related to CoCa Mines, Inc. In 1991, Hecla Limited acquired all of the outstanding common stock of CoCa Mines, Inc. (“CoCa”). CoCa is alleged to have held prior property interests and undertaken exploration activities at the Gilt Edge Mine Superfund site in Lawrence County, South Dakota, and to have been engaged in exploration and mining activities at or near the Nelson Tunnel/Commodore Waste Rock Pile Superfund site in Creede, Colorado. The United States and the State of South Dakota have alleged that CoCa, along with other parties, is a potentially responsible party (“PRP”) under CERCLA at the Gilt Edge site. In addition, the United States and the State of Colorado have alleged that CoCa is a PRP at the Nelson Tunnel/Commodore site. The United States, South Dakota and Colorado base their claims of liability on allegations of CoCa’s historical relationship to each site, and that CoCa has succeeded to the liabilities of one or more predecessor entities that may have held certain property interests at the sites or undertaken certain activities. The United States alleges that it has, to date, incurred $118 million, plus interest, in response costs at the Gilt Edge site. At the Nelson Tunnel/Commodore site, the EPA alleges that it has, to date, incurred $10 million, plus interest, in response costs. As a result of ongoing settlement discussions, Consent Decrees were lodged with the United States District Court in Colorado on April 14, 2016, that would settle the Nelson Tunnel/Commodore Waste Rock Pile Superfund site matter, and in South Dakota on April 15, 2016, that would settle the Gilt Edge Superfund site matter. The Consent Decrees resolve CoCa’s alleged liabilities for past and future response costs with respect to each site, and include combined net payments in the aggregate of $9.9 million by CoCa. With respect to Gilt Edge, the proposed financial terms require that CoCa pay $3.9 million, as well as up to $700,000 in any proceeds from a lawsuit CoCa has filed against an uncooperative insurer. The remainder of the settlement amount ($6.4 million) would be paid by insurance companies and another PRP. With respect to the Nelson Tunnel site, the proposed financial terms require that CoCa pay $6 million. As a result, in the second quarter of 2015 we accrued $9.9 million by recording a liability for the total amount that would be paid by CoCa and an asset for the estimated amount that would be recovered by CoCa from insurers and the other party to the Gilt Edge settlement. The Consent Decrees were published in the Federal Register on April 26, 2016, which began a 30-day public comment period for each Consent Decree. No comments were received and the United States has sought Court approval and entry of each Consent Decree. The Court entered the Nelson Tunnel/Commodore Waste Rock Pile Consent Decree on June 15, 2016, and CoCa is required to pay $6 million by August 12, 2016. The Court has not yet entered the Gilt Edge Consent Decree. If the Court does enter the Gilt Edge Consent Decree, then CoCa will be obligated to pay $3.9 million within 60 days , and at that point CoCa will have resolved the claims of (i) the United States and the State of South Dakota with respect to the Gilt Edge site, and (ii) the United States and the State of Colorado with respect to the Nelson Tunnel site, in each case under CERCLA and certain relevant state statutes, for all past and future response costs at each site. There can be no assurance that the Gilt Edge Consent Decree will be entered by the Court and become final and binding. Accordingly, in the event that matter is not settled, our accrual could materially change. Senior Notes On April 12, 2013, we completed an offering of $500 million aggregate principal amount of 6.875% Senior Notes due 2021. Note 9 Other Commitments Our contractual obligations as of June 30, 2016 included approximately $1.2 million for various costs. In addition, our open purchase orders at June 30, 2016 included approximately $1.1 million, $1.9 million and $7.2 million, respectively, for various capital items at the Lucky Friday, Casa Berardi and Greens Creek units, and approximately $0.6 million, $1.2 million, and $2.8 million, respectively, for various non-capital costs at the Lucky Friday, Casa Berardi and Greens Creek units. We also have total commitments of approximately $15.4 million relating to scheduled payments on capital leases, including interest, primarily for equipment at our Greens Creek, Lucky Friday and Casa Berardi units (see Note 9 Other Contingencies On April 12, 2013, the family of Larry Marek, an employee of Hecla Limited who was fatally injured in an April 2011 accident, filed a lawsuit against us and certain of our officers and employees seeking damages for, among other claims, wrongful death and infliction of emotional distress. No dollar amount of damages is specified in the complaint, which was filed in state court in Idaho (Kootenai County District Court). On April 21, 2015, the judge hearing the case granted Hecla’s motion for summary judgment and dismissed the case. The plaintiffs have appealed the decision to the Idaho Supreme Court. We cannot predict the outcome of this matter, however, we believe the case is without merit and are vigorously defending this lawsuit. On December 11, 2013, four employees of Hecla Limited who were injured in a December 2011 rock burst filed a lawsuit against us and certain of our employees seeking damages for, among other claims, intentional and willful injury and infliction of emotional distress. The plaintiffs seek damages in excess of $1,000,000, as claimed in the complaint, which was filed in state court in Idaho (Kootenai County District Court). On August 28, 2015, the judge hearing the case granted Hecla’s motion for summary judgment and dismissed the case. The plaintiffs have appealed the decision to the Idaho Supreme Court. We cannot predict the outcome of this matter, however, we believe the case is without merit and intend to vigorously defend this lawsuit. We also have certain other contingencies resulting from litigation, claims, EPA investigations, and other commitments and are subject to a variety of environmental and safety laws and regulations incident to the ordinary course of business. We currently expect that the resolution of such contingencies will not materially affect our financial position, results of operations or cash flows. However, in the future, there may be changes to these contingencies, and additional contingencies may occur as well, any of which might result in an accrual or a change in the estimated accruals recorded by us, and there can be no assurance that their ultimate disposition will not have a material adverse effect on our financial position, results of operations or cash flows. |
Note 5 - Income (Loss) Per Comm
Note 5 - Income (Loss) Per Common Share | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | Note 5. Income (Loss) Per Common Share We are authorized to issue 500,000,000 shares of common stock, $0.25 par value per share. At June 30, 2016, there were 388,800,542 shares of our common stock issued and 3,733,742 shares issued and held in treasury, for a net of 385,066,800 shares outstanding. For the three-month and six-month periods ended June 30, 2015, all outstanding options, restricted share units, and warrants were excluded from the computation of diluted loss per share, as our reported net losses for those periods would cause their conversion and exercise to have no effect on the calculation of loss per share. For the three-month and six-month periods ended June 30, 2016, 3,515,356 restricted stock units that are unvested or vested in the current period are included in the calculation of diluted income per share. There were no options outstanding as of June 30, 2016. |
Note 6 - Business Segments
Note 6 - Business Segments | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 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. The San Sebastian unit, a historic operating property for Hecla, resumed commercial production in the fourth quarter of 2015 and was added as a new reporting segment in 2015. The following tables present information about reportable segments for the three and six months ended June 30, 2016 and 2015 (in thousands): Three Months Ended Six Months Ended June 30, 2016 2015 2016 2015 Net sales to unaffiliated customers: Greens Creek $ 59,574 $ 54,043 $ 113,456 $ 121,398 Lucky Friday 22,760 14,570 44,012 34,460 Casa Berardi 53,285 35,584 85,483 67,431 San Sebastian 35,683 — 59,368 — $ 171,302 $ 104,197 $ 302,319 $ 223,289 Income (loss) from operations: Greens Creek $ 14,831 $ 9,950 $ 22,909 $ 24,643 Lucky Friday 4,047 (585 ) 6,790 2,961 Casa Berardi 10,622 (3,200 ) 12,556 (3,964 ) San Sebastian 25,583 — 40,495 — Other (13,473 ) (23,455 ) (25,567 ) (36,008 ) $ 41,610 $ (17,290 ) $ 57,183 $ (12,368 ) The following table presents identifiable assets by reportable segment as of June 30, 2016 and December 31, 2015 (in thousands): June 30, 2016 December 31, 2015 Identifiable assets: Greens Creek $ 693,948 $ 698,265 Lucky Friday 427,812 393,338 Casa Berardi 792,267 779,423 San Sebastian 24,483 22,238 Other 332,300 328,661 $ 2,270,810 $ 2,221,925 |
Note 7 - Employee Benefit Plans
Note 7 - Employee Benefit Plans | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | 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 six months ended June 30, 2016 and 2015 (in thousands): Three Months Ended June 30, 2016 2015 Service cost $ 1,077 $ 1,054 Interest cost 1,307 1,206 Expected return on plan assets (1,325 ) (1,345 ) Amortization of prior service cost (84 ) (84 ) Amortization of net (gain) loss 1,093 1,065 Net periodic pension cost $ 2,068 $ 1,896 Six Months Ended June 30, 2016 2015 Service cost $ 2,154 $ 2,108 Interest cost 2,614 2,412 Expected return on plan assets (2,650 ) (2,691 ) Amortization of prior service cost (168 ) (169 ) Amortization of net (gain) loss 2,186 2,130 Net periodic pension cost $ 4,136 $ 3,790 We contributed approximately $2.6 million in shares of our common stock and cash to our defined benefit plans in February 2016, and $6.1 million in shares of our common stock in July 2016, with no additional contributions anticipated in 2016. We expect to contribute approximately $0.4 million to our unfunded supplemental executive retirement plan during 2016. |
Note 8 - Shareholders' Equity
Note 8 - Shareholders' Equity | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | Note 8. Shareholders’ Equity Stock-based Compensation Plans We periodically grant restricted stock unit awards and/or shares of common stock to our employees and directors. We measure compensation cost for restricted stock units and stock grants at the closing price of our stock at the time of grant. Restricted stock unit 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 2016, the Board of Directors granted 2,335,196 shares of common stock to employees for payment of annual and long-term incentive compensation for the period ended December 31, 2015. The shares were distributed in March 2016, and $5.5 million in expense related to the stock awards was recognized in the periods prior to March 31, 2016. In June 2016, the Board of Directors granted the following restricted stock unit awards to employees: • 952,612 restricted stock units, with one third of those vesting in June 2017, one third vesting in June 2018, and one third vesting in June 2019; • 87,493 restricted stock units, with one half of those vesting in June 2017 and one half vesting in June 2018; and • 43,187 restricted stock units that vest in June 2017. The $1.8 million in expense related to the unit awards discussed above vesting in 2017 will be recognized on a straight-line basis over the twelve months following the date of the award. The $1.6 million in expense related to the unit awards discussed above vesting in 2018 will be recognized on a straight-line basis over the twenty-four months following the date of the award. The $1.4 million in expense related to the unit awards discussed above vesting in 2019 will be recognized on a straight-line basis over the thirty-six month period following the date of the award. In the second quarter of 2016, a total of 185,353 shares of common stock were granted to nonemployee directors. We granted a total of 48,246 shares of common stock to nonemployee directors in the second quarter of 2015. Stock-based compensation expense for restricted stock unit grants to employees and shares issued to nonemployee directors recorded in the first six months of 2016 totaled $3.5 million, compared to $2.3 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 six months of 2016 we withheld 997,678 shares valued at approximately $3.4 million, or approximately $3.40 per share. In the first six months of 2015 we withheld 284,243 shares valued at approximately $0.9 million, or approximately $3.31 per share. Common Stock Dividends 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 August 3, 2016, 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 September 2016. Because the average realized silver price for the second quarter of 2016 was $17.26 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. 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 SEC on February 23, 2016. As of June 30, 2016, we had sold 2,780,087 shares under the agreement for total proceeds of approximately $8.1 million, net of commissions and fees of approximately $166 thousand. Of those amounts, 2,042,812 shares were sold in the second quarter of 2016 for total proceeds of approximately $6.1 million, net of commissions and fees of approximately $124 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 June 30, 2016, 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. The closing price of our common stock at August 2, 2016, was $6.55 per share. Warrants At December 31, 2015, we had 2,249,550 warrants outstanding, with each warrant exercisable for 0.1622 of a share of our common stock at an exercise price of $6.17 per share. All of the warrants expired in March 2016, and there were no warrants outstanding as of June 30, 2016. |
Note 9 - Senior Notes, Credit F
Note 9 - Senior Notes, Credit Facilities, Note Payable and Capital Leases | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | Note 9. Senior Notes, Credit Facilities, Note Payable 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 $6.1 million as of June 30, 2016. 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 six months ended June 30, 2016 and 2015, interest expense related to the Senior Notes and amortization of the initial purchaser discount and fees related to the issuance of the Senior Notes, net of $7.9 million and $6.6 million, respectively, in capitalized interest, totaled $10.2 million and $11.6 million, respectively. 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 Facilities In May 2016, we entered into a $100 million senior secured revolving credit facility with a three year term. 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. This credit facility replaced our previous $100 million credit facility which had the same terms of collateral as described above. Below is information on the interest rates, standby fee, and financial covenant terms under our current 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) (1) not more than 5.00:1 Interest coverage ratio (EBITDA/interest expense) not more than 3.00:1 (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. There were $2.6 million in letters of credit outstanding as of June 30, 2016. We believe we were in compliance with all covenants under the credit agreement and no amounts were outstanding as of June 30, 2016. 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 June 30, 2016, the total liability balance associated with capital leases, including certain purchase option amounts, was $15.1 million, with $7.8 million of the liability classified as current and the remaining $7.3 million classified as non-current. At December 31, 2015, the total liability balance associated with capital leases was $17.6 million, with $8.7 million of the liability classified as current and $8.8 million classified as non-current. The total obligation for future minimum lease payments was $15.4 million at June 30, 2016, with $0.7 million attributed to interest. At June 30, 2016, the annual maturities of capital lease commitments, including interest, are (in thousands): Twelve-month period ending June 30, 2017 $ 7,325 2018 4,906 2019 2,482 2020 638 Total 15,351 Less: imputed interest (661 ) Net capital lease obligation $ 14,690 |
Note 10 - Developments in Accou
Note 10 - Developments in Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | Note 10. Developments in Accounting Pronouncements In May 2014, the 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 guidance establishes a new five step principle-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 the guidance in ASU No. 2014-09 to annual and interim reporting periods beginning after December 15, 2017. We are in the process of evaluating this guidance and our method of adoption. In April 2015, the FASB issued ASU No. 2015-03 Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. The update requires debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the carrying amount of the related debt liability instead of being presented as an asset. Debt disclosures will include the face amount of the debt liability and the effective interest rate. The update requires retrospective application and represents a change in accounting principle. The update is effective for fiscal years beginning after December 15, 2015. ASU No. 2015-03 has not had a material impact on our consolidated financial statements. In July 2015, the FASB issued ASU 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 the fiscal years beginning after December 15, 2016. We are currently evaluating the potential impact of implementing this update on our consolidated financial statements. In September 2015, the FASB issued ASU No. 2015-16 Simplifying the Accounting for Measurement-Period Adjustments (Topic 805) which eliminates the requirement for an acquirer to retrospectively adjust the financial statements for measurement-period adjustments that occur in periods after a business combination is consummated. These changes become effective for fiscal years beginning after December 15, 2016, and as such they are not expected to have a material impact on prior periods. 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 statement of financial position. The FASB has proposed 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. ASU No. 2015-17 is not expected to have a material impact on our consolidated financial statements. Our current deferred tax asset balance at June 30, 2016 was $18.4 million. 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 update makes several modifications to Subtopic 825-10, including the elimination of the available-for-sale classification of equity investments, and requires equity investments with readily determinable fair values to be measured at fair value with changes in fair value recognized in net income. The update is effective for fiscal years beginning after December 15, 2017. We are currently evaluating the impact of the guidance on our consolidated financial statements. In February 2016, the FASB issued ASU 2016-02 Leases (Subtopic 842), which will require lessees to recognize assets and liabilities on the balance sheet for the rights and obligations created by most leases. The update is effective for annual and interim reporting periods beginning after December 15, 2018. We are currently evaluating the impact of the guidance on our consolidated financial statements. In March 2016, the FASB issued ASU 2016-09 Compensation - Stock Compensation (Topic 718). The objective of the update is to simplify several aspects of accounting for share-based payment transactions, including the income tax consequences and financial statement classification. The update is effective for annual and interim reporting periods beginning after December 15, 2016. We are currently evaluating the impact of the guidance on our consolidated financial statements. |
Note 11 - Derivative Instrument
Note 11 - Derivative Instruments | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | Note 11. Derivative Instruments Foreign Currency Our wholly-owned subsidiary owning the Casa Berardi mine is a U.S. dollar ("USD")-functional entity which routinely incurs expenses denominated in Canadian dollars ("CAD"), and such expenses expose us to exchange rate fluctuations between the USD and CAD. 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. The program utilizes forward contracts to sell CAD, and each contract is designated as a cash flow hedge. As of June 30, 2016, we have 70 forward contracts outstanding to sell CAD$175 million having a notational amount of US$135.9 million. These contracts represent between 20% and 44% of our forecasted cash operating costs at Casa Berardi from 2017 through 2020 and have USD-to-CAD exchange rates ranging between 1.2787 and 1.3031. Our risk management policy provides for up to 75% of our forecasted CAD-denominated operating costs 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 June 30, 2016, we recorded the following balances for the fair value of the contracts: • a non-current asset of $0.5 million, which is included in other non-current assets; • a current liability of $0.1 million, which is included in other current liabilities, and • a non-current liability of $0.4 million, which is included in other non-current liabilities. Net unrealized gains of approximately $46,000 related to the effective portion of the hedges were included in accumulated other comprehensive income as of June 30, 2016. 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 $0.1 million in net unrealized losses included in accumulated other comprehensive income as of June 30, 2016 would be reclassified to current earnings in the next twelve months. Net unrealized losses of approximately $6,000 related to ineffectiveness of the hedges were included in current earnings for the six months ended June 30, 2016. Metals Prices At times, we may use commodity forward sales commitments, commodity swap contracts and commodity put and call option contracts to manage our exposure to fluctuation in the prices of certain metals which 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 event of 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. 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, at times we 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; however, there were no open contracts related to this latter program as of June 30, 2016 or December 31, 2015. These contracts are not designated as hedges and are marked-to-market through earnings each period. At June 30, 2016, we recorded a current liability of $3.4 million on the contracts utilized to manage exposure to prices of metals in our concentrate shipments, which is included in other current liabilities. We recognized a $11.8 million net loss during the first six months of 2016 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. The following tables summarize the quantities of metals committed under forward sales contracts at June 30, 2016 and December 31, 2015: June 30, 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 2016 settlements 1,523 4 19,731 8,818 $ 17.40 $ 1,271 $ 0.88 $ 0.79 December 31, 2015 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 2016 settlements 1,368 5 23,755 8,433 $ 14.12 $ 1,076 $ 0.71 $ 0.77 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 relates to the change in price between sale and settlement, does not qualify for hedge accounting; therefore, it is adjusted to market through earnings each period prior to final settlement. Credit-risk-related Contingent Features We have agreements with certain counterparties that contain a provision whereby we could be declared in default on our derivative obligations if repayment of the underlying indebtedness is accelerated by the lender due to our default on the indebtedness. As of June 30, 2016, 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 $3.9 million as of June 30, 2016. If we had breached any of these provisions at June 30, 2016, we could have been required to settle our obligations under the agreements at their termination value of $3.8 million. |
Note 12 - Fair Value Measuremen
Note 12 - Fair Value Measurement | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | 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 June 30, 2016 Balance at December 31, 2015 Input Hierarchy Level Assets: Cash and cash equivalents: Money market funds and other bank deposits $ 143,613 $ 155,209 Level 1 Available for sale securities: Debt securities - municipal and corporate bonds 15,070 — Level 2 Equity securities – mining industry 4,453 1,515 Level 1 Trade accounts receivable: Receivables from provisional concentrate sales 25,667 13,490 Level 2 Restricted cash balances: Certificates of deposit and other deposits 4,899 999 Level 1 Derivative contracts: Foreign exchange contracts 537 — Level 2 Total assets $ 194,239 $ 171,213 Liabilities: Derivative contracts: Foreign exchange contracts $ 497 $ — Level 2 Metal forward contracts 3,401 283 Level 2 Total Liabilities $ 3,898 $ 283 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. We use financially-settled forward contracts to manage exposure to changes in the exchange rate between the U.S. Dollar and Canadian Dollar, and the impact on Canadian Dollar-denominated operating costs incurred at our Casa Berardi Unit (see Note 11 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 Our Senior Notes issued in April 2013, which were recorded at their carrying value of $500.4 million, net of unamortized initial purchaser discount at June 30, 2016, had a fair value of $492.6 million at June 30, 2016. Quoted market prices, which we consider to be Level 1 inputs, are utilized to estimate fair values of the Senior Notes. See Note 9 |
Note 13 - Acquisitions
Note 13 - Acquisitions | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Business Combination Disclosure [Text Block] | Note 13. Acquisitions Proposed Acquisition of Mines Management, Inc. On May 23, 2016, we and Mines Management, Inc. ("Mines Management") entered into a merger agreement pursuant to which we would acquire all of the issued and outstanding common stock of Mines Management. Mines Management holds 100% ownership of the Montanore project in Northwest Montana, a significant undeveloped silver and copper deposit located approximately ten miles from our Rock Creek project. In the proposed merger, each outstanding common share of Mines Management would be exchanged for 0.2218 of a share of our common stock, which had an estimated value of $0.94 per Mines Management common share based on the closing price of Hecla's common stock of $4.24 per share on May 20, 2016, the last full trading day before the merger agreement was entered into. The actual value of consideration transferred will be based on the market price of Hecla's common stock on the date the merger is consummated. Based on the closing price of Hecla stock of $6.55 per share on August 2, 2016, total consideration would be $59.1 million. A 10% change in the price per share of Hecla stock from its closing price on August 2, 2016 would result in a $5.9 million change in the amount of consideration transferred in the merger. Estimated consideration is based on us issuing approximately 9,030,010 shares of our common stock to Mines Management shareholders in the merger. All consideration given to Mines Management stockholders will be in newly issued Hecla stock. The proposed merger is subject to approval by Mine Management's stockholders. No assurance can be given as to whether the merger will be approved and consummated. In May 2016, we entered into a term loan and security agreement with Mines Management pursuant to which we agreed to provide one or more secured loans to Mines Management in an aggregate amount not to exceed $2.3 million. The loans bear interest at a rate per annum equal to LIBOR plus 5% and will be due and payable the earlier of September 30, 2016, the date the merger is consummated, or the date of other specified events. The loans are secured by substantially all of the assets of Mines Management. The balance of the note as of June 30, 2016 was $1.4 million. Takeover Bid of Dolly Varden Silver Corporation On June 27, 2016, we announced a takeover bid for all of the outstanding shares of Dolly Varden Silver Corporation ("Dolly Varden") not owned by us and our affiliates for cash of CAD$0.69 per share. Dolly Varden owns 100% of the Dolly Varden historic silver property in Northwestern British Columbia, Canada. Our wholly owned subsidiary owns 2,620,291 Dolly Varden shares and warrants to purchase 1,250,000 Dolly Varden shares, representing approximately 19.8% of Dolly Varden's shares outstanding on a partially diluted basis. Based on Dolly Varden's outstanding shares and options and warrants to acquire Dolly Varden shares, and excluding shares and warrants held by us and our affiliates, total consideration would be approximately CAD$13.6 million. In late July 2016, we withdrew the bid due to the failure of a required condition precedent to its consummation. |
Note 14 - Guarantor Subsidiarie
Note 14 - Guarantor Subsidiaries | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Guarantor Subsidiaries [Text Block] | Note 14. 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 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 consolidated financial statements set forth elsewhere in this Form 10-Q. Investments in the subsidiaries are accounted for under the equity method. Accordingly, the entries necessary to consolidate Hecla, the Guarantors, and Non-Guarantors 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 • Capital contributions • Debt. • Dividends. • Deferred taxes 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. Unaudited Interim Condensed Consolidating Balance Sheets As of June 30, 2016 Parent Guarantors Non-Guarantors Eliminations Consolidated (in thousands) Assets Cash and cash equivalents $ 102,488 $ 23,720 $ 17,405 $ — $ 143,613 Other current assets 41,498 95,009 43,534 (12,519 ) 167,522 Properties, plants, and equipment - net 2,266 1,167,053 756,839 — 1,926,158 Intercompany receivable (payable) 553,020 (342,822 ) (329,269 ) 119,071 — Investments in subsidiaries 1,247,747 — — (1,247,747 ) — Other non-current assets 2,518 177,907 5,206 (152,114 ) 33,517 Total assets $ 1,949,537 $ 1,120,867 $ 493,715 $ (1,293,309 ) $ 2,270,810 Liabilities and Stockholders' Equity Current liabilities $ 21,820 $ 82,221 $ 50,845 $ (25,098 ) $ 129,788 Long-term debt 500,354 5,079 2,237 — 507,670 Non-current portion of accrued reclamation — 43,381 29,638 — 73,019 Non-current deferred tax liability — 13,293 134,584 (20,464 ) 127,413 Other non-current liabilities 47,685 5,937 (380 ) — 53,242 Stockholders' equity 1,379,678 970,956 276,791 (1,247,747 ) 1,379,678 Total liabilities and stockholders' equity $ 1,949,537 $ 1,120,867 $ 493,715 $ (1,293,309 ) $ 2,270,810 As of December 31, 2015 Parent Guarantors Non-Guarantors Eliminations Consolidated (in thousands) Assets Cash and cash equivalents $ 94,167 $ 42,692 $ 18,350 $ — $ 155,209 Other current assets 15,972 58,453 32,273 7,626 114,324 Properties, plants, and equipment - net 2,281 1,147,770 746,760 — 1,896,811 Intercompany receivable (payable) 540,665 (301,291 ) (332,553 ) 93,179 — Investments in subsidiaries 1,252,191 — — (1,252,191 ) — Other non-current assets 2,200 165,080 1,781 (113,480 ) 55,581 Total assets $ 1,907,476 $ 1,112,704 $ 466,611 $ (1,264,866 ) $ 2,221,925 Liabilities and Stockholders' Equity Current liabilities $ 21,087 $ 84,559 $ 30,636 $ (9,198 ) $ 127,084 Long-term debt 499,729 6,128 3,183 — 509,040 Non-current portion of accrued reclamation — 45,494 29,055 — 74,549 Non-current deferred tax liability — 3,264 119,836 (3,477 ) 119,623 Other non-current liabilities 47,734 5,834 (865 ) — 52,703 Stockholders' equity 1,338,926 967,425 284,766 (1,252,191 ) 1,338,926 Total liabilities and stockholders' equity $ 1,907,476 $ 1,112,704 $ 466,611 $ (1,264,866 ) $ 2,221,925 Unaudited Interim Condensed Consolidating Statements of Operations Three Months Ended June 30, 2016 Parent Guarantors Non-Guarantors Eliminations Consolidated (in thousands) Revenues $ (5,659 ) $ 87,992 $ 88,969 $ — $ 171,302 Cost of sales — (47,203 ) (35,750 ) — (82,953 ) Depreciation, depletion, amortization — (15,238 ) (14,659 ) — (29,897 ) General and administrative (6,474 ) (3,679 ) (206 ) — (10,359 ) Exploration and pre-development (113 ) (1,360 ) (2,410 ) — (3,883 ) Loss on derivative contracts (6 ) — — — (6 ) Acquisition costs (394 ) (8 ) — — (402 ) Equity in earnings of subsidiaries 37,111 — — (37,111 ) — Other (expense) income (349 ) 2,623 (8,732 ) (1,732 ) (8,190 ) Income (loss) before income taxes 24,116 23,127 27,212 (38,843 ) 35,612 (Provision) benefit from income taxes — (8,386 ) (4,842 ) 1,732 (11,496 ) Net income (loss) 24,116 14,741 22,370 (37,111 ) 24,116 Preferred stock dividends (138 ) — — — (138 ) Income (loss) applicable to common stockholders 23,978 14,741 22,370 (37,111 ) 23,978 Net income (loss) 24,116 14,741 22,370 (37,111 ) 24,116 Changes in comprehensive income (loss) 1,239 — 1,193 (1,193 ) 1,239 Comprehensive income (loss) $ 25,355 $ 14,741 $ 23,563 $ (38,304 ) $ 25,355 Six Months Ended June 30, 2016 Parent Guarantors Non-Guarantors Eliminations Consolidated (in thousands) Revenues $ (11,794 ) $ 169,261 $ 144,852 $ — $ 302,319 Cost of sales — (93,956 ) (63,317 ) — (157,273 ) Depreciation, depletion, amortization — (31,844 ) (23,928 ) — (55,772 ) General and administrative (11,714 ) (8,202 ) (657 ) — (20,573 ) Exploration and pre-development (158 ) (2,647 ) (4,432 ) — (7,237 ) Loss on derivative contracts (6 ) — — — (6 ) Acquisition costs (394 ) (8 ) — — (402 ) Equity in earnings of subsidiaries 16,120 — — (16,120 ) — Other (expense) income 31,444 6,959 (44,250 ) (18,561 ) (24,408 ) Income (loss) before income taxes 23,498 39,563 8,268 (34,681 ) 36,648 (Provision) benefit from income taxes — (13,219 ) (18,492 ) 18,561 (13,150 ) Net income (loss) 23,498 26,344 (10,224 ) (16,120 ) 23,498 Preferred stock dividends (276 ) — — — (276 ) Income (loss) applicable to common stockholders 23,222 26,344 (10,224 ) (16,120 ) 23,222 Net income (loss) 23,498 26,344 (10,224 ) (16,120 ) 23,498 Changes in comprehensive income (loss) 2,304 8 2,253 (2,261 ) 2,304 Comprehensive income (loss) $ 25,802 $ 26,352 $ (7,971 ) $ (18,381 ) $ 25,802 Three Months Ended June 30, 2015 Parent Guarantors Non-Guarantors Eliminations Consolidated (in thousands) Revenues $ 1,081 $ 67,531 $ 35,585 $ — $ 104,197 Cost of sales — (41,512 ) (26,055 ) — (67,567 ) Depreciation, depletion, amortization — (16,452 ) (10,714 ) — (27,166 ) General and administrative (4,373 ) (3,392 ) (531 ) — (8,296 ) Exploration and pre-development (122 ) (1,445 ) (4,643 ) — (6,210 ) Acquisition costs (887 ) — — — (887 ) Loss on derivative contracts (2,055 ) (92 ) — — (2,147 ) Equity in earnings of subsidiaries (738 ) — — 738 — Other (expense) income (19,573 ) 3,499 (22,544 ) 19,895 (18,723 ) Income (loss) before income taxes (26,667 ) 8,137 (28,902 ) 20,633 (26,799 ) (Provision) benefit from income taxes — (1,956 ) 21,983 (19,895 ) 132 Net income (loss) (26,667 ) 6,181 (6,919 ) 738 (26,667 ) Preferred stock dividends (138 ) — — — (138 ) Income (loss) applicable to common stockholders (26,805 ) 6,181 (6,919 ) 738 (26,805 ) Net income (loss) (26,667 ) 6,181 (6,919 ) 738 (26,667 ) Changes in comprehensive income (loss) (1,156 ) 183 (1,264 ) 1,082 (1,155 ) Comprehensive income (loss) $ (27,823 ) $ 6,364 $ (8,183 ) $ 1,820 $ (27,822 ) Six Months Ended June 30, 2015 Parent Guarantors Non-Guarantors Eliminations Consolidated (in thousands) Revenues $ 1,393 $ 154,465 $ 67,431 $ — $ 223,289 Cost of sales — (92,949 ) (48,583 ) — (141,532 ) Depreciation, depletion, amortization — (33,063 ) (19,357 ) — (52,420 ) General and administrative (8,815 ) (7,285 ) (916 ) — (17,016 ) Exploration and pre-development (339 ) (2,579 ) (8,428 ) — (11,346 ) Gain on derivative contracts 4,905 — — — 4,905 Acquisition costs (2,055 ) (92 ) — — (2,147 ) Equity in earnings of subsidiaries 39,304 — — (39,304 ) — Other (expense) income (48,508 ) 7,066 8,462 16,439 (16,541 ) Income (loss) before income taxes (14,115 ) 25,563 (1,391 ) (22,865 ) (12,808 ) (Provision) benefit from income taxes — (6,902 ) 22,034 (16,439 ) (1,307 ) Net income (loss) (14,115 ) 18,661 20,643 (39,304 ) (14,115 ) Preferred stock dividends (276 ) — — — (276 ) Income (loss) applicable to common stockholders (14,391 ) 18,661 20,643 (39,304 ) (14,391 ) Net income (loss) (14,115 ) 18,661 20,643 (39,304 ) (14,115 ) Changes in comprehensive income (loss) 780 (11 ) 787 (775 ) 781 Comprehensive income (loss) $ (13,335 ) $ 18,650 $ 21,430 $ (40,079 ) $ (13,334 ) Unaudited Interim Condensed Consolidating Statements of Cash Flows Six Months Ended June 30, 2016 Parent Guarantors Non-Guarantors Eliminations Consolidated (in thousands) Cash flows from operating activities $ 22,190 $ (8,639 ) $ 40,815 $ 31,772 $ 86,138 Cash flows from investing activities: Additions to properties, plants, and equipment (40 ) (43,677 ) (33,243 ) (76,960 ) Other investing activities, net (15,248 ) 317 (3,900 ) — (18,831 ) Cash flows from financing activities: Dividends paid to stockholders (2,190 ) — — (2,190 ) Payments on debt (1,339 ) (3,836 ) (520 ) (5,695 ) Other financing activity (4,948 ) 36,863 (5,385 ) (31,772 ) 4,654 Effect of exchange rate changes on cash — — 1,288 — 1,288 Changes in cash and cash equivalents 8,321 (18,972 ) (945 ) — (11,596 ) Beginning cash and cash equivalents 94,167 42,692 18,350 — 155,209 Ending cash and cash equivalents $ 102,488 $ 23,720 $ 17,405 $ — $ 143,613 Six Months Ended June 30, 2015 Parent Guarantors Non-Guarantors Eliminations Consolidated (in thousands) Cash flows from operating activities $ 31,482 $ 49,275 $ 7,355 $ (35,939 ) $ 52,173 Cash flows from investing activities: — Additions to properties, plants, and equipment (436 ) (40,963 ) (16,873 ) (58,272 ) Acquisition of Revett, net of cash acquired (809 ) — — — (809 ) Other investing activities, net 61 267 (1,122 ) — (794 ) Cash flows from financing activities: — Dividends paid to stockholders (2,126 ) — — — (2,126 ) Payments on debt — (4,349 ) (591 ) — (4,940 ) Other financing activity (47,645 ) 17,852 (7,210 ) 35,939 (1,064 ) Effect of exchange rate changes on cash — — (2,259 ) — (2,259 ) Changes in cash and cash equivalents (19,473 ) 22,082 (20,700 ) — (18,091 ) Beginning cash and cash equivalents 146,885 33,824 28,956 209,665 Ending cash and cash equivalents $ 127,412 $ 55,906 $ 8,256 $ — $ 191,574 |
Note 3 - Income Taxes (Tables)
Note 3 - Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Notes Tables | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Current: Domestic $ 2,506 $ 1,768 $ — $ 1,865 Foreign 1,627 (553 ) 2,642 155 Total current income tax provision (benefit) 4,133 1,215 2,642 2,020 Deferred: Domestic 8,777 1,167 9,365 3,588 Foreign (1,414 ) (2,514 ) 1,143 (4,301 ) Total deferred income tax benefit 7,363 (1,347 ) 10,508 (713 ) Total income tax provision (benefit) $ 11,496 $ (132 ) $ 13,150 $ 1,307 |
Note 6 - Business Segments (Tab
Note 6 - Business Segments (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Three Months Ended Six Months Ended June 30, 2016 2015 2016 2015 Net sales to unaffiliated customers: Greens Creek $ 59,574 $ 54,043 $ 113,456 $ 121,398 Lucky Friday 22,760 14,570 44,012 34,460 Casa Berardi 53,285 35,584 85,483 67,431 San Sebastian 35,683 — 59,368 — $ 171,302 $ 104,197 $ 302,319 $ 223,289 Income (loss) from operations: Greens Creek $ 14,831 $ 9,950 $ 22,909 $ 24,643 Lucky Friday 4,047 (585 ) 6,790 2,961 Casa Berardi 10,622 (3,200 ) 12,556 (3,964 ) San Sebastian 25,583 — 40,495 — Other (13,473 ) (23,455 ) (25,567 ) (36,008 ) $ 41,610 $ (17,290 ) $ 57,183 $ (12,368 ) |
Reconciliation of Assets from Segment to Consolidated [Table Text Block] | June 30, 2016 December 31, 2015 Identifiable assets: Greens Creek $ 693,948 $ 698,265 Lucky Friday 427,812 393,338 Casa Berardi 792,267 779,423 San Sebastian 24,483 22,238 Other 332,300 328,661 $ 2,270,810 $ 2,221,925 |
Note 7 - Employee Benefit Pla22
Note 7 - Employee Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Notes Tables | |
Schedule of Net Benefit Costs [Table Text Block] | Three Months Ended June 30, 2016 2015 Service cost $ 1,077 $ 1,054 Interest cost 1,307 1,206 Expected return on plan assets (1,325 ) (1,345 ) Amortization of prior service cost (84 ) (84 ) Amortization of net (gain) loss 1,093 1,065 Net periodic pension cost $ 2,068 $ 1,896 Six Months Ended June 30, 2016 2015 Service cost $ 2,154 $ 2,108 Interest cost 2,614 2,412 Expected return on plan assets (2,650 ) (2,691 ) Amortization of prior service cost (168 ) (169 ) Amortization of net (gain) loss 2,186 2,130 Net periodic pension cost $ 4,136 $ 3,790 |
Note 8 - Shareholders' Equity (
Note 8 - Shareholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Notes Tables | |
Schedule of Potential Per Share Dividend Amounts Quarterly Price Levels [Table Text Block] | 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 |
Note 9 - Senior Notes, Credit24
Note 9 - Senior Notes, Credit Facilities, Note Payable and Capital Leases (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Notes Tables | |
Schedule of Line of Credit Facilities [Table Text Block] | 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) (1) not more than 5.00:1 Interest coverage ratio (EBITDA/interest expense) not more than 3.00:1 |
Schedule of Future Minimum Lease Payments for Capital Leases [Table Text Block] | Twelve-month period ending June 30, 2017 $ 7,325 2018 4,906 2019 2,482 2020 638 Total 15,351 Less: imputed interest (661 ) Net capital lease obligation $ 14,690 |
Note 11 - Derivative Instrume25
Note 11 - Derivative Instruments (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Notes Tables | |
Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block] | June 30, 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 2016 settlements 1,523 4 19,731 8,818 $ 17.40 $ 1,271 $ 0.88 $ 0.79 December 31, 2015 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 2016 settlements 1,368 5 23,755 8,433 $ 14.12 $ 1,076 $ 0.71 $ 0.77 |
Note 12 - Fair Value Measurem26
Note 12 - Fair Value Measurement (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Notes Tables | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | Description Balance at June 30, 2016 Balance at December 31, 2015 Input Hierarchy Level Assets: Cash and cash equivalents: Money market funds and other bank deposits $ 143,613 $ 155,209 Level 1 Available for sale securities: Debt securities - municipal and corporate bonds 15,070 — Level 2 Equity securities – mining industry 4,453 1,515 Level 1 Trade accounts receivable: Receivables from provisional concentrate sales 25,667 13,490 Level 2 Restricted cash balances: Certificates of deposit and other deposits 4,899 999 Level 1 Derivative contracts: Foreign exchange contracts 537 — Level 2 Total assets $ 194,239 $ 171,213 Liabilities: Derivative contracts: Foreign exchange contracts $ 497 $ — Level 2 Metal forward contracts 3,401 283 Level 2 Total Liabilities $ 3,898 $ 283 |
Note 14 - Guarantor Subsidiar27
Note 14 - Guarantor Subsidiaries (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Notes Tables | |
Condensed Balance Sheet [Table Text Block] | As of June 30, 2016 Parent Guarantors Non-Guarantors Eliminations Consolidated (in thousands) Assets Cash and cash equivalents $ 102,488 $ 23,720 $ 17,405 $ — $ 143,613 Other current assets 41,498 95,009 43,534 (12,519 ) 167,522 Properties, plants, and equipment - net 2,266 1,167,053 756,839 — 1,926,158 Intercompany receivable (payable) 553,020 (342,822 ) (329,269 ) 119,071 — Investments in subsidiaries 1,247,747 — — (1,247,747 ) — Other non-current assets 2,518 177,907 5,206 (152,114 ) 33,517 Total assets $ 1,949,537 $ 1,120,867 $ 493,715 $ (1,293,309 ) $ 2,270,810 Liabilities and Stockholders' Equity Current liabilities $ 21,820 $ 82,221 $ 50,845 $ (25,098 ) $ 129,788 Long-term debt 500,354 5,079 2,237 — 507,670 Non-current portion of accrued reclamation — 43,381 29,638 — 73,019 Non-current deferred tax liability — 13,293 134,584 (20,464 ) 127,413 Other non-current liabilities 47,685 5,937 (380 ) — 53,242 Stockholders' equity 1,379,678 970,956 276,791 (1,247,747 ) 1,379,678 Total liabilities and stockholders' equity $ 1,949,537 $ 1,120,867 $ 493,715 $ (1,293,309 ) $ 2,270,810 As of December 31, 2015 Parent Guarantors Non-Guarantors Eliminations Consolidated (in thousands) Assets Cash and cash equivalents $ 94,167 $ 42,692 $ 18,350 $ — $ 155,209 Other current assets 15,972 58,453 32,273 7,626 114,324 Properties, plants, and equipment - net 2,281 1,147,770 746,760 — 1,896,811 Intercompany receivable (payable) 540,665 (301,291 ) (332,553 ) 93,179 — Investments in subsidiaries 1,252,191 — — (1,252,191 ) — Other non-current assets 2,200 165,080 1,781 (113,480 ) 55,581 Total assets $ 1,907,476 $ 1,112,704 $ 466,611 $ (1,264,866 ) $ 2,221,925 Liabilities and Stockholders' Equity Current liabilities $ 21,087 $ 84,559 $ 30,636 $ (9,198 ) $ 127,084 Long-term debt 499,729 6,128 3,183 — 509,040 Non-current portion of accrued reclamation — 45,494 29,055 — 74,549 Non-current deferred tax liability — 3,264 119,836 (3,477 ) 119,623 Other non-current liabilities 47,734 5,834 (865 ) — 52,703 Stockholders' equity 1,338,926 967,425 284,766 (1,252,191 ) 1,338,926 Total liabilities and stockholders' equity $ 1,907,476 $ 1,112,704 $ 466,611 $ (1,264,866 ) $ 2,221,925 |
Condensed Income Statement [Table Text Block] | Three Months Ended June 30, 2016 Parent Guarantors Non-Guarantors Eliminations Consolidated (in thousands) Revenues $ (5,659 ) $ 87,992 $ 88,969 $ — $ 171,302 Cost of sales — (47,203 ) (35,750 ) — (82,953 ) Depreciation, depletion, amortization — (15,238 ) (14,659 ) — (29,897 ) General and administrative (6,474 ) (3,679 ) (206 ) — (10,359 ) Exploration and pre-development (113 ) (1,360 ) (2,410 ) — (3,883 ) Loss on derivative contracts (6 ) — — — (6 ) Acquisition costs (394 ) (8 ) — — (402 ) Equity in earnings of subsidiaries 37,111 — — (37,111 ) — Other (expense) income (349 ) 2,623 (8,732 ) (1,732 ) (8,190 ) Income (loss) before income taxes 24,116 23,127 27,212 (38,843 ) 35,612 (Provision) benefit from income taxes — (8,386 ) (4,842 ) 1,732 (11,496 ) Net income (loss) 24,116 14,741 22,370 (37,111 ) 24,116 Preferred stock dividends (138 ) — — — (138 ) Income (loss) applicable to common stockholders 23,978 14,741 22,370 (37,111 ) 23,978 Net income (loss) 24,116 14,741 22,370 (37,111 ) 24,116 Changes in comprehensive income (loss) 1,239 — 1,193 (1,193 ) 1,239 Comprehensive income (loss) $ 25,355 $ 14,741 $ 23,563 $ (38,304 ) $ 25,355 Six Months Ended June 30, 2016 Parent Guarantors Non-Guarantors Eliminations Consolidated (in thousands) Revenues $ (11,794 ) $ 169,261 $ 144,852 $ — $ 302,319 Cost of sales — (93,956 ) (63,317 ) — (157,273 ) Depreciation, depletion, amortization — (31,844 ) (23,928 ) — (55,772 ) General and administrative (11,714 ) (8,202 ) (657 ) — (20,573 ) Exploration and pre-development (158 ) (2,647 ) (4,432 ) — (7,237 ) Loss on derivative contracts (6 ) — — — (6 ) Acquisition costs (394 ) (8 ) — — (402 ) Equity in earnings of subsidiaries 16,120 — — (16,120 ) — Other (expense) income 31,444 6,959 (44,250 ) (18,561 ) (24,408 ) Income (loss) before income taxes 23,498 39,563 8,268 (34,681 ) 36,648 (Provision) benefit from income taxes — (13,219 ) (18,492 ) 18,561 (13,150 ) Net income (loss) 23,498 26,344 (10,224 ) (16,120 ) 23,498 Preferred stock dividends (276 ) — — — (276 ) Income (loss) applicable to common stockholders 23,222 26,344 (10,224 ) (16,120 ) 23,222 Net income (loss) 23,498 26,344 (10,224 ) (16,120 ) 23,498 Changes in comprehensive income (loss) 2,304 8 2,253 (2,261 ) 2,304 Comprehensive income (loss) $ 25,802 $ 26,352 $ (7,971 ) $ (18,381 ) $ 25,802 Three Months Ended June 30, 2015 Parent Guarantors Non-Guarantors Eliminations Consolidated (in thousands) Revenues $ 1,081 $ 67,531 $ 35,585 $ — $ 104,197 Cost of sales — (41,512 ) (26,055 ) — (67,567 ) Depreciation, depletion, amortization — (16,452 ) (10,714 ) — (27,166 ) General and administrative (4,373 ) (3,392 ) (531 ) — (8,296 ) Exploration and pre-development (122 ) (1,445 ) (4,643 ) — (6,210 ) Acquisition costs (887 ) — — — (887 ) Loss on derivative contracts (2,055 ) (92 ) — — (2,147 ) Equity in earnings of subsidiaries (738 ) — — 738 — Other (expense) income (19,573 ) 3,499 (22,544 ) 19,895 (18,723 ) Income (loss) before income taxes (26,667 ) 8,137 (28,902 ) 20,633 (26,799 ) (Provision) benefit from income taxes — (1,956 ) 21,983 (19,895 ) 132 Net income (loss) (26,667 ) 6,181 (6,919 ) 738 (26,667 ) Preferred stock dividends (138 ) — — — (138 ) Income (loss) applicable to common stockholders (26,805 ) 6,181 (6,919 ) 738 (26,805 ) Net income (loss) (26,667 ) 6,181 (6,919 ) 738 (26,667 ) Changes in comprehensive income (loss) (1,156 ) 183 (1,264 ) 1,082 (1,155 ) Comprehensive income (loss) $ (27,823 ) $ 6,364 $ (8,183 ) $ 1,820 $ (27,822 ) Six Months Ended June 30, 2015 Parent Guarantors Non-Guarantors Eliminations Consolidated (in thousands) Revenues $ 1,393 $ 154,465 $ 67,431 $ — $ 223,289 Cost of sales — (92,949 ) (48,583 ) — (141,532 ) Depreciation, depletion, amortization — (33,063 ) (19,357 ) — (52,420 ) General and administrative (8,815 ) (7,285 ) (916 ) — (17,016 ) Exploration and pre-development (339 ) (2,579 ) (8,428 ) — (11,346 ) Gain on derivative contracts 4,905 — — — 4,905 Acquisition costs (2,055 ) (92 ) — — (2,147 ) Equity in earnings of subsidiaries 39,304 — — (39,304 ) — Other (expense) income (48,508 ) 7,066 8,462 16,439 (16,541 ) Income (loss) before income taxes (14,115 ) 25,563 (1,391 ) (22,865 ) (12,808 ) (Provision) benefit from income taxes — (6,902 ) 22,034 (16,439 ) (1,307 ) Net income (loss) (14,115 ) 18,661 20,643 (39,304 ) (14,115 ) Preferred stock dividends (276 ) — — — (276 ) Income (loss) applicable to common stockholders (14,391 ) 18,661 20,643 (39,304 ) (14,391 ) Net income (loss) (14,115 ) 18,661 20,643 (39,304 ) (14,115 ) Changes in comprehensive income (loss) 780 (11 ) 787 (775 ) 781 Comprehensive income (loss) $ (13,335 ) $ 18,650 $ 21,430 $ (40,079 ) $ (13,334 ) |
Condensed Cash Flow Statement [Table Text Block] | Six Months Ended June 30, 2016 Parent Guarantors Non-Guarantors Eliminations Consolidated (in thousands) Cash flows from operating activities $ 22,190 $ (8,639 ) $ 40,815 $ 31,772 $ 86,138 Cash flows from investing activities: Additions to properties, plants, and equipment (40 ) (43,677 ) (33,243 ) (76,960 ) Other investing activities, net (15,248 ) 317 (3,900 ) — (18,831 ) Cash flows from financing activities: Dividends paid to stockholders (2,190 ) — — (2,190 ) Payments on debt (1,339 ) (3,836 ) (520 ) (5,695 ) Other financing activity (4,948 ) 36,863 (5,385 ) (31,772 ) 4,654 Effect of exchange rate changes on cash — — 1,288 — 1,288 Changes in cash and cash equivalents 8,321 (18,972 ) (945 ) — (11,596 ) Beginning cash and cash equivalents 94,167 42,692 18,350 — 155,209 Ending cash and cash equivalents $ 102,488 $ 23,720 $ 17,405 $ — $ 143,613 Six Months Ended June 30, 2015 Parent Guarantors Non-Guarantors Eliminations Consolidated (in thousands) Cash flows from operating activities $ 31,482 $ 49,275 $ 7,355 $ (35,939 ) $ 52,173 Cash flows from investing activities: — Additions to properties, plants, and equipment (436 ) (40,963 ) (16,873 ) (58,272 ) Acquisition of Revett, net of cash acquired (809 ) — — — (809 ) Other investing activities, net 61 267 (1,122 ) — (794 ) Cash flows from financing activities: — Dividends paid to stockholders (2,126 ) — — — (2,126 ) Payments on debt — (4,349 ) (591 ) — (4,940 ) Other financing activity (47,645 ) 17,852 (7,210 ) 35,939 (1,064 ) Effect of exchange rate changes on cash — — (2,259 ) — (2,259 ) Changes in cash and cash equivalents (19,473 ) 22,082 (20,700 ) — (18,091 ) Beginning cash and cash equivalents 146,885 33,824 28,956 209,665 Ending cash and cash equivalents $ 127,412 $ 55,906 $ 8,256 $ — $ 191,574 |
Note 2 - Investments and Rest28
Note 2 - Investments and Restricted Cash (Details Textual) - USD ($) | 3 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Jun. 30, 2016 | Dec. 31, 2015 | |
Available-for-sale Securities, Current | $ 15,100,000 | $ 0 | ||
Long-term Investments | 4,453,000 | 1,515,000 | ||
Available-for-sale Securities, Amortized Cost Basis | 3,200,000 | 4,000,000 | ||
Other than Temporary Impairment Losses, Investments | $ 1,000,000 | $ 2,800,000 | ||
Restricted Cash and Investments, Current | 3,900,000 | |||
Restricted Investments | $ 1,000,000 | $ 1,000,000 |
Note 3 - Income Taxes (Details
Note 3 - Income Taxes (Details Textual) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Internal Revenue Service (IRS) [Member] | ||
Deferred Tax Assets, Net | $ 33.5 | |
Canada Revenue Agency [Member] | ||
Deferred Tax Liabilities, Net | 128.4 | |
Mexican Tax Authority [Member] | Foreign Tax Authority [Member] | ||
Deferred Tax Assets, Valuation Allowance | 1.3 | |
Mexican Tax Authority [Member] | ||
Deferred Tax Assets, Net | 9.3 | |
Deferred Tax Liabilities, Net | 85.6 | |
Deferred Tax Assets, Valuation Allowance | $ 110 | $ 116 |
Note 3 - Major Components of In
Note 3 - Major Components of Income Tax Provision (Benefit) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Current: | ||||
Domestic | $ 2,506 | $ 1,768 | $ 1,865 | |
Foreign | 1,627 | (553) | 2,642 | 155 |
Total current income tax provision (benefit) | 4,133 | 1,215 | 2,642 | 2,020 |
Deferred: | ||||
Domestic | 8,777 | 1,167 | 9,365 | 3,588 |
Foreign | (1,414) | (2,514) | 1,143 | (4,301) |
Total deferred income tax benefit | 7,363 | (1,347) | 10,508 | (713) |
Total income tax provision (benefit) | $ 11,496 | $ (132) | $ 13,150 | $ 1,307 |
Note 4 - Commitments, Conting31
Note 4 - Commitments, Contingencies and Obligations (Details Textual) | Jun. 30, 2016USD ($) | Apr. 26, 2016 | Apr. 15, 2016USD ($) | Dec. 11, 2013USD ($) | Apr. 12, 2013USD ($) | Aug. 31, 2012USD ($) | Jun. 30, 2011USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 1980 |
Joint Venture [Member] | Rio Grande Silver Inc and Emerald Mining and Leasing LLC [Member] | ||||||||||||
Liability for Remediation | $ 0 | |||||||||||
Equity Method Investment, Ownership Percentage | 70.00% | 70.00% | ||||||||||
Maximum Environmental Remediation Obligation | $ 2,500,000 | |||||||||||
Carpenter Snow Creek Superfund Site, Cascade County, Montana [Member] | ||||||||||||
Number of Mining Claims | 6 | |||||||||||
Estimated Response Costs | $ 4,500,000 | |||||||||||
Estimated Future Response Cost | $ 100,000,000 | |||||||||||
Johnny M Mine Area near San Mateo, New Mexico [Member] | Minimum [Member] | ||||||||||||
Estimated Alternative Response Costs | 0 | |||||||||||
Johnny M Mine Area near San Mateo, New Mexico [Member] | Maximum [Member] | ||||||||||||
Estimated Alternative Response Costs | 221,000,000 | |||||||||||
Johnny M Mine Area near San Mateo, New Mexico [Member] | ||||||||||||
Liability for Remediation | $ 5,600,000 | |||||||||||
Payment Of Response Costs | $ 1,100,000 | $ 1,100,000 | ||||||||||
Estimated Response Costs | 5,600,000 | |||||||||||
Gilt Edge Mine Superfund Site [Member] | Costs Incurred by the EPA [Member] | ||||||||||||
Incurred Response Costs | 118,000,000 | |||||||||||
Gilt Edge Mine Superfund Site [Member] | ||||||||||||
Liability for Remediation | 3,900,000 | |||||||||||
Nelson Tunnel/Commodore Site [Member] | Costs Incurred by the EPA [Member] | ||||||||||||
Incurred Response Costs | 10,000,000 | |||||||||||
Nelson Tunnel/Commodore Site [Member] | ||||||||||||
Liability for Remediation | 6,000,000 | |||||||||||
Gilt Edge Site and Nelson Tunnel/Commodore Site [Member] | ||||||||||||
Liability for Remediation | $ 9,900,000 | $ 9,900,000 | ||||||||||
Loss Contingency, Estimate of Possible Loss | 3,900,000 | $ 3,900,000 | ||||||||||
Number of Days for Obligation to Pay | 60 days | |||||||||||
Uncooperative Insurer [Member] | ||||||||||||
Proceeds from Lawsuit Against Uncooperative Insurer | $ 700,000 | |||||||||||
Insurance Companies and Another PRP [Member] | ||||||||||||
Remaining Liability For Redemption | 6,400,000 | |||||||||||
Senior Notes [Member] | ||||||||||||
Proceeds from Issuance of Debt | $ 500,000,000 | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.875% | |||||||||||
Debt Instrument, Increase (Decrease), Net | $ 6,500,000 | |||||||||||
Lucky Friday [Member] | ||||||||||||
Open Purchase Orders | 1,100,000 | 1,100,000 | ||||||||||
Noncapital Costs | 600,000 | |||||||||||
Casa Berardi [Member] | ||||||||||||
Open Purchase Orders | 1,900,000 | 1,900,000 | ||||||||||
Noncapital Costs | 1,200,000 | |||||||||||
Greens Creek [Member] | ||||||||||||
Open Purchase Orders | 7,200,000 | 7,200,000 | ||||||||||
Noncapital Costs | 2,800,000 | |||||||||||
Revett Mining Company, Inc. [Member] | ||||||||||||
Business Combination, Consideration Held for Reclamation | 6,500,000 | 6,500,000 | ||||||||||
Number of Days for Public Comment | 30 days | |||||||||||
Loss Contingency, Estimate of Possible Loss | $ 1,000,000 | |||||||||||
Contractual Obligations | 1,200,000 | 1,200,000 | ||||||||||
Commitments For Capital Lease Payments | 15,400,000 | 15,400,000 | ||||||||||
Surety Bonds | $ 111,200,000 | $ 111,200,000 | ||||||||||
Loss Contingency, Number of Plaintiffs | 4 |
Note 5 - Income (Loss) Per Co32
Note 5 - Income (Loss) Per Common Share (Details Textual) - $ / shares | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | |
Common Stock [Member] | |||
Shares, Issued | 388,800,542 | 388,800,542 | |
Common Stock, Shares Authorized | 500,000,000 | 500,000,000 | 500,000,000 |
Common Stock, Par or Stated Value Per Share | $ 0.25 | $ 0.25 | $ 0.25 |
Treasury Stock, Shares | 3,733,742 | 3,733,742 | 2,435,518 |
Common Stock, Shares, Outstanding | 385,066,800 | 385,066,800 | 378,112,840 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 3,515,356 | 3,515,356 |
Note 6 - Business Segments (Det
Note 6 - Business Segments (Details Textual) | 9 Months Ended |
Sep. 30, 2015 | |
Number of Reportable Segments | 4 |
Note 6 - Information about Repo
Note 6 - Information about Reportable Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Greens Creek [Member] | ||||
Net sales to unaffiliated customers | $ 59,574 | $ 54,043 | $ 113,456 | $ 121,398 |
Income (loss) from operations | 14,831 | 9,950 | 22,909 | 24,643 |
Lucky Friday [Member] | ||||
Net sales to unaffiliated customers | 22,760 | 14,570 | 44,012 | 34,460 |
Income (loss) from operations | 4,047 | (585) | 6,790 | 2,961 |
Casa Berardi [Member] | ||||
Net sales to unaffiliated customers | 53,285 | 35,584 | 85,483 | 67,431 |
Income (loss) from operations | 10,622 | (3,200) | 12,556 | (3,964) |
San Sebastian [Member] | ||||
Net sales to unaffiliated customers | 35,683 | 59,368 | ||
Income (loss) from operations | 25,583 | 40,495 | ||
Other Segments [Member] | ||||
Income (loss) from operations | (13,473) | (23,455) | (25,567) | (36,008) |
Net sales to unaffiliated customers | 171,302 | 104,197 | 302,319 | 223,289 |
Income (loss) from operations | $ 41,610 | $ (17,290) | $ 57,183 | $ (12,368) |
Note 6 - Identifiable Assets by
Note 6 - Identifiable Assets by Reporting Segments (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Greens Creek [Member] | ||
Identifiable assets | $ 693,948 | $ 698,265 |
Lucky Friday [Member] | ||
Identifiable assets | 427,812 | 393,338 |
Casa Berardi [Member] | ||
Identifiable assets | 792,267 | 779,423 |
San Sebastian [Member] | ||
Identifiable assets | 24,483 | 22,238 |
Other Segments [Member] | ||
Identifiable assets | 332,300 | 328,661 |
Identifiable assets | $ 2,270,810 | $ 2,221,925 |
Note 7 - Employee Benefit Pla36
Note 7 - Employee Benefit Plans (Details Textual) - USD ($) | 1 Months Ended | 11 Months Ended | |
Jul. 31, 2016 | Feb. 29, 2016 | Dec. 31, 2016 | |
Pension Plan [Member] | Common Stock [Member] | Subsequent Event [Member] | |||
Defined Benefit Plan, Contributions by Employer | $ 6,100,000 | ||
Pension Plan [Member] | Common Stock [Member] | Scenario, Forecast [Member] | |||
Defined Benefit Plan, Contributions by Employer | $ 0 | ||
Pension Plan [Member] | |||
Defined Benefit Plan, Contributions by Employer | $ 2,600,000 | ||
Unfunded Supplemental Executive Retirement Plan [Member] | Scenario, Forecast [Member] | |||
Defined Benefit Plans, Estimated Future Employer Contributions in Current Fiscal Year | $ 400,000 |
Note 7 - Net Periodic Pension C
Note 7 - Net Periodic Pension Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Service cost | $ 1,077 | $ 1,054 | $ 2,154 | $ 2,108 |
Interest cost | 1,307 | 1,206 | 2,614 | 2,412 |
Expected return on plan assets | (1,325) | (1,345) | (2,650) | (2,691) |
Amortization of prior service cost | (84) | (84) | (168) | (169) |
Amortization of net (gain) loss | 1,093 | 1,065 | 2,186 | 2,130 |
Net periodic pension cost | $ 2,068 | $ 1,896 | $ 4,136 | $ 3,790 |
Note 8 - Shareholders' Equity38
Note 8 - Shareholders' Equity (Details Textual) | Aug. 03, 2016USD ($)$ / shares | Jun. 30, 2016USD ($)$ / ozshares | Mar. 31, 2016USD ($)shares | Jun. 30, 2016USD ($)$ / shares$ / ozshares | Jun. 30, 2015$ / sharesshares | Jun. 30, 2016USD ($)$ / ozshares | Jun. 30, 2016USD ($)$ / shares$ / ozshares | Jun. 30, 2015USD ($)$ / sharesshares | Aug. 02, 2016$ / shares | May 20, 2016$ / shares | Feb. 23, 2016USD ($) | Dec. 31, 2015$ / sharesshares | May 08, 2012shares |
Stock Awards [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | 2,335,196 | ||||||||||||
Allocated Share-based Compensation Expense | $ | $ 5,500,000 | ||||||||||||
RSUs Vesting in 2019 [Member] | Share-based Compensation Award, Tranche One [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 33.33% | ||||||||||||
RSUs Vesting in 2019 [Member] | Share-based Compensation Award, Tranche Two [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 33.33% | ||||||||||||
RSUs Vesting in 2019 [Member] | Share-based Compensation Award, Tranche Three [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 33.33% | ||||||||||||
RSUs Vesting in 2019 [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 952,612 | ||||||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ | $ 1,400,000 | $ 1,400,000 | $ 1,400,000 | $ 1,400,000 | |||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 3 years | ||||||||||||
RSUs Vesting in 2018 [Member] | Share-based Compensation Award, Tranche One [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 50.00% | ||||||||||||
RSUs Vesting in 2018 [Member] | Share-based Compensation Award, Tranche Two [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 50.00% | ||||||||||||
RSUs Vesting in 2018 [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 87,493 | ||||||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ | $ 1,600,000 | 1,600,000 | 1,600,000 | 1,600,000 | |||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years | ||||||||||||
RSUs Vesting in 2017 [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 43,187 | ||||||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ | $ 1,800,000 | $ 1,800,000 | $ 1,800,000 | 1,800,000 | |||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year | ||||||||||||
Non-Employee Directors [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | 185,353 | 48,246 | |||||||||||
Employees and Non-employee Directors [Member] | |||||||||||||
Allocated Share-based Compensation Expense | $ | $ 3,500,000 | $ 2,300,000 | |||||||||||
Satisfy Withholding Obligations [Member] | |||||||||||||
Shares Paid for Tax Withholding for Share Based Compensation | 997,678 | 284,243 | |||||||||||
Payments Related to Tax Withholding for Share-based Compensation | $ | $ 3,400,000 | $ 900,000 | |||||||||||
Treasury Stock Acquired, Average Cost Per Share | $ / shares | $ 3.40 | $ 3.31 | |||||||||||
Minimum [Member] | |||||||||||||
Common Stock, Dividends, Per Share, Declared | $ / shares | 0.01 | ||||||||||||
Maximum [Member] | |||||||||||||
Common Stock, Aggregate Offering Price | $ | $ 75,000,000 | ||||||||||||
Subsequent Event [Member] | |||||||||||||
Common Stock, Dividends, Per Share, Declared | $ / shares | $ 0.0025 | ||||||||||||
Dividends, Common Stock | $ | $ 1,000,000 | ||||||||||||
Share Price | $ / shares | $ 6.55 | ||||||||||||
Common Stock Repurchase Program [Member] | |||||||||||||
Treasury Stock Acquired, Average Cost Per Share | $ / shares | $ 3.99 | ||||||||||||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 20,000,000 | ||||||||||||
Cumulative Stock Repurchased | 934,100 | 934,100 | 934,100 | 934,100 | |||||||||
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased | 19,100,000 | 19,100,000 | 19,100,000 | 19,100,000 | |||||||||
Common Stock, Dividends, Per Share, Declared | $ / shares | $ 0.0025 | $ 0.0025 | $ 0.005 | $ 0.005 | |||||||||
Average Realized Silver Price | $ | $ 17.26 | ||||||||||||
Average Realized Silver Price Minimum Dividend Threshold | $ / oz | 30 | 30 | 30 | 30 | |||||||||
Stock Issued During Period, Shares, New Issues | 2,042,812 | 2,780,087 | |||||||||||
Stock Issued During Period, Value, New Issues | $ | $ 6,100,000 | $ 8,100,000 | |||||||||||
Payments for Brokerage Fees | $ | $ 124,000 | $ 166,000 | |||||||||||
Share Price | $ / shares | $ 0 | $ 4.24 | |||||||||||
Class of Warrant or Right, Outstanding | 0 | 0 | 0 | 0 | 2,249,550 | ||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 0.1622 | ||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares | $ 6.17 |
Note 8 - Common Stock Dividend
Note 8 - Common Stock Dividend Policy (Details) | 6 Months Ended |
Jun. 30, 2016$ / shares$ / item | |
Thirty Dollar [Member] | |
Quarterly average realized silver price per ounce | $ / item | 30 |
Quarterly dividend per share (in dollars per share) | $ 0.01 |
Annualized dividend per share (in dollars per share) | $ 0.04 |
$35 [Member] | |
Quarterly average realized silver price per ounce | $ / item | 35 |
Quarterly dividend per share (in dollars per share) | $ 0.02 |
Annualized dividend per share (in dollars per share) | $ 0.08 |
$40 [Member] | |
Quarterly average realized silver price per ounce | $ / item | 40 |
Quarterly dividend per share (in dollars per share) | $ 0.03 |
Annualized dividend per share (in dollars per share) | $ 0.12 |
$45 [Member] | |
Quarterly average realized silver price per ounce | $ / item | 45 |
Quarterly dividend per share (in dollars per share) | $ 0.04 |
Annualized dividend per share (in dollars per share) | $ 0.16 |
$50 [Member] | |
Quarterly average realized silver price per ounce | $ / item | 50 |
Quarterly dividend per share (in dollars per share) | $ 0.05 |
Annualized dividend per share (in dollars per share) | $ 0.20 |
Note 9 - Senior Notes, Credit40
Note 9 - Senior Notes, Credit Facilities, Note Payable and Capital Leases (Details Textual) | Apr. 12, 2013USD ($) | May 30, 2016USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Sep. 30, 2015 | Dec. 31, 2014USD ($) | Dec. 31, 2017 | Dec. 31, 2015USD ($) | Apr. 30, 2013USD ($) | |
Revolving Credit Facility [Member] | ||||||||||
Long-term Line of Credit | $ 0 | |||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 100,000,000 | |||||||||
Debt Instrument, Term | 3 years | |||||||||
Letter of Credit [Member] | Minimum [Member] | ||||||||||
Letter of Credit, Participation Fee, Percent | 2.25% | |||||||||
Letter of Credit [Member] | Maximum [Member] | ||||||||||
Letter of Credit, Participation Fee, Percent | 3.25% | |||||||||
Letter of Credit [Member] | ||||||||||
Letter of Credit Outstanding, Fronting Fee | 0.20% | |||||||||
Senior Notes [Member] | ||||||||||
Debt Instrument, Face Amount | $ 500,000,000 | |||||||||
Pension Contributions | $ 6,500,000 | |||||||||
Debt Instrument, Unamortized Discount | $ 6,100,000 | $ 10,000,000 | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.875% | |||||||||
Interest Expense, Debt | 7,900,000 | $ 6,600,000 | ||||||||
Interest Costs Capitalized | $ 10,200,000 | $ 11,600,000 | ||||||||
Debt Instrument, Redemption Price, Percentage | 101.00% | |||||||||
Subsequent Event [Member] | ||||||||||
Leverage Ratio | 4 | |||||||||
Maximum [Member] | ||||||||||
Leverage Ratio | [1] | 5 | ||||||||
Proceeds from Issuance of Senior Long-term Debt | $ 490,000,000 | |||||||||
Underwriting Discount On Senior Notes | 2.00% | |||||||||
Letters of Credit Outstanding, Amount | $ 2,600,000 | |||||||||
Capital Lease Obligations | 14,690,000 | $ 17,600,000 | ||||||||
Capital Lease Obligations, Current | 7,761,000 | 8,735,000 | ||||||||
Capital Lease Obligations, Noncurrent | 7,316,000 | $ 8,841,000 | ||||||||
Capital Leases, Future Minimum Payments Due | 15,351,000 | |||||||||
Capital Leases, Future Minimum Payments, Interest Included in Payments | $ 661,000 | |||||||||
[1] | The leverage ratio will decrease to 4.00:1 in 2017. |
Note 9 - Credit Facilities (Det
Note 9 - Credit Facilities (Details) | 6 Months Ended | |
Jun. 30, 2016 | ||
New Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | ||
Variable rate | 2.25% | |
New Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | ||
Variable rate | 3.25% | |
New Facility [Member] | Base Rate [Member] | Minimum [Member] | ||
Variable rate | 1.25% | |
New Facility [Member] | Base Rate [Member] | Maximum [Member] | ||
Variable rate | 2.25% | |
New Facility [Member] | ||
Standby fee per annum on undrawn amounts | 0.50% | |
Maximum [Member] | ||
Senior leverage ratio (debt secured by liens/EBITDA) | 2.5 | |
Leverage Ratio | 5 | [1] |
Interest coverage ratio (EBITDA/interest expense) | 3 | |
[1] | The leverage ratio will decrease to 4.00:1 in 2017. |
Note 9 - Annual Maturities of C
Note 9 - Annual Maturities of Capital Lease Commitments, Including Interest (Details) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
2,017 | $ 7,325,000 | |
2,018 | 4,906,000 | |
2,019 | 2,482,000 | |
2,020 | 638,000 | |
Total | 15,351,000 | |
Less: imputed interest | (661,000) | |
Net capital lease obligation | $ 14,690,000 | $ 17,600,000 |
Note 10 - Developments in Acc43
Note 10 - Developments in Accounting Pronouncements (Details Textual) $ in Millions | Jun. 30, 2016USD ($) |
Deferred Tax Assets, Gross, Current | $ 18.4 |
Note 11 - Derivative Instrume44
Note 11 - Derivative Instruments (Details Textual) - 6 months ended Jun. 30, 2016 CAD in Millions | USD ($) | CAD | USD ($) |
Foreign Exchange Forward [Member] | Designated as Hedging Instrument [Member] | |||
Derivative, Number of Instruments Held | 70 | 70 | |
Foreign Exchange Contract [Member] | Minimum [Member] | Casa Berardi [Member] | |||
Derivative, Forward Exchange Rate | 1.2787 | 1.2787 | |
Foreign Exchange Contract [Member] | Maximum [Member] | Casa Berardi [Member] | |||
Derivative, Forward Exchange Rate | 1.3031 | 1.3031 | |
Foreign Exchange Contract [Member] | Other Noncurrent Assets [Member] | |||
Derivative Asset, Noncurrent | $ 500,000 | ||
Foreign Exchange Contract [Member] | Other Current Liabilities [Member] | |||
Derivative Liability, Current | 100,000 | ||
Foreign Exchange Contract [Member] | Other Noncurrent Liabilities [Member] | |||
Derivative Liability, Noncurrent | $ 400,000 | ||
Unsettled Concentrate Sales Contracts [Member] | |||
Derivative, Loss on Derivative | $ 11,800,000 | ||
Minimum [Member] | Casa Berardi [Member] | |||
Derivative, Forward Contracts, Forecasted Cash Operating Costs, Percent | 20.00% | 20.00% | |
Maximum [Member] | Casa Berardi [Member] | |||
Derivative, Forward Contracts, Forecasted Cash Operating Costs, Percent | 44.00% | 44.00% | |
Other Current Liabilities [Member] | |||
Derivative Liability, Current | $ 3,400,000 | ||
Other Comprehensive Income (Loss) [Member] | |||
Foreign Currency Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months | (100,000) | ||
Derivative, Notional Amount | CAD 175 | $ 135,900,000 | |
Maximum Allocation of Forecasted CAD-demonimated Operating Costs | 75.00% | 75.00% | |
Forecasted CAD-denominated Operating Costs to be Hedged, Term | 5 years | ||
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Effect Net of Tax | $ 46,000 | ||
Gain (Loss) on Components Excluded from Assessment of Foreign Currency Cash Flow Hedge Effectiveness | $ (6,000) | ||
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | 3,900,000 | ||
Derivative, Fair Value, Obligations Under the Agreements | $ 3,800,000 |
Note 11 - Summary of Forward Sa
Note 11 - Summary of Forward Sales Contracts (Details) - 2016 Settlements [Member] oz in Thousands, lb in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016lboz$ / lb$ / oz | Dec. 31, 2015lboz$ / lb$ / oz | |
Silver [Member] | ||
Pounds Under Contract | oz | 1,523 | 1,368 |
Average Price | $ / oz | 17.4 | 14.12 |
Gold [Member] | ||
Pounds Under Contract | oz | 4 | 5 |
Average Price | $ / oz | 1,271 | 1,076 |
Zinc [Member] | ||
Pounds Under Contract | lb | 19,731 | 23,755 |
Average Price | $ / lb | 0.88 | 0.71 |
Lead [Member] | ||
Pounds Under Contract | lb | 8,818 | 8,433 |
Average Price | $ / lb | 0.79 | 0.77 |
Note 12 - Fair Value Measurem46
Note 12 - Fair Value Measurement (Details Textual) - USD ($) $ in Millions | Jun. 30, 2016 | Apr. 30, 2013 |
Senior Notes [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Notes Payable, Fair Value Disclosure | $ 492.6 | |
Notes Payable | $ 500.4 |
Note 12 - Assets and Liabilitie
Note 12 - Assets and Liabilities Accounted for at Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Money market funds and other bank deposits | $ 143,613 | $ 155,209 |
Equity securities – mining industry | 4,453 | 1,515 |
Certificates of deposit and other deposits | 4,899 | 999 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Debt securities - municipal and corporate bonds | 15,070 | |
Receivables from provisional concentrate sales | 25,667 | 13,490 |
Foreign exchange contracts | 537 | |
Foreign exchange contracts | 497 | |
Metal forward contracts | 3,401 | 283 |
Fair Value, Measurements, Recurring [Member] | ||
Total assets | 194,239 | 171,213 |
Total liabilities | 3,898 | 283 |
Receivables from provisional concentrate sales | $ 32,952 | $ 16,401 |
Note 13 - Acquisitions (Details
Note 13 - Acquisitions (Details Textual) CAD / shares in Units, $ / shares in Units, CAD in Millions | Aug. 02, 2016USD ($)$ / shares | Jun. 27, 2016CADCAD / sharesshares | May 31, 2016USD ($) | Jun. 30, 2016USD ($) | May 23, 2016$ / sharesshares | May 20, 2016$ / shares |
Mines Management [Member] | Montanore Project [Member] | ||||||
Ownership Percentage | 100.00% | |||||
Dolly Varden [Member] | Dolly Varden Historic Silver Property [Member] | ||||||
Ownership Percentage | 100.00% | |||||
Mines Management [Member] | Subsequent Event [Member] | ||||||
Business Combination, Consideration Transferred | $ 59,100,000 | |||||
Business Combination, Consideration Transferred, Impact of Ten Percent Change in Acquirer's Share Price | 5,900,000 | |||||
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable | $ 9,030,010 | |||||
Mines Management [Member] | ||||||
Business Acquistion, Number of Common Stock Shares Exchanged for Each Share of Acquiree Common Stock | shares | 0.2218 | |||||
Business Acquisition, Estimated Value | $ / shares | $ 0.94 | |||||
Dolly Varden [Member] | ||||||
Business Combination, Consideration Transferred | CAD | CAD 13.6 | |||||
Business Acquisition, Share Price | CAD / shares | CAD 0.69 | |||||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Shares | shares | 2,620,291 | |||||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Warrants | shares | 1,250,000 | |||||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Percentage | 19.80% | |||||
Subsequent Event [Member] | ||||||
Share Price | $ / shares | $ 6.55 | |||||
Mines Management [Member] | Maximum [Member] | ||||||
Payments to Acquire Notes Receivable | $ 2,300,000 | |||||
Mines Management [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||
Notes Receivable, Basis Spread on Variable Rate | 5.00% | |||||
Mines Management [Member] | ||||||
Number of Secured Loans, Minimum | 1 | |||||
Financing Receivable, Net | $ 1,400,000 | |||||
Share Price | $ / shares | $ 0 | $ 4.24 |
Note 14 - Guarantor Subsidiar49
Note 14 - Guarantor Subsidiaries (Details Textual) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Hecla Limited [Member] | ||
Sale of Stock, Percentage of Ownership before Transaction | 100.00% | |
Proceeds from Divestiture of Businesses | $ 240.8 | |
Capital Requirements Limited Funding Period | 5 years | |
Hecla Alaska LLC [Member] | Greens Creek [Member] | ||
Subsidiary or Equity Method Investee, Cumulative Percentage Ownership after All Transactions | 29.7331% | |
Subsidiary or Equity Method Investee, Cumulative Percentage Ownership after All Transactions | 100.00% |
Note 14 - Unaudited Interim Con
Note 14 - Unaudited Interim Condensed Consolidating Balance Sheets (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2014 |
Parent Company [Member] | ||||
Assets | ||||
Cash and cash equivalents | $ 102,488 | $ 94,167 | $ 127,412 | $ 146,885 |
Other current assets | 41,498 | 15,972 | ||
Properties, plants, and equipment - net | 2,266 | 2,281 | ||
Intercompany receivable (payable) | 553,020 | 540,665 | ||
Investments in subsidiaries | 1,247,747 | 1,252,191 | ||
Other non-current assets | 2,518 | 2,200 | ||
Total assets | 1,949,537 | 1,907,476 | ||
Liabilities and Stockholders' Equity | ||||
Current liabilities | 21,820 | 21,087 | ||
Long-term debt | 500,354 | 499,729 | ||
Non-current portion of accrued reclamation | ||||
Non-current deferred tax liability | ||||
Other non-current liabilities | 47,685 | 47,734 | ||
Stockholders' equity | 1,379,678 | 1,338,926 | ||
Total liabilities and stockholders' equity | 1,949,537 | 1,907,476 | ||
Guarantor Subsidiaries [Member] | ||||
Assets | ||||
Cash and cash equivalents | 23,720 | 42,692 | 55,906 | 33,824 |
Other current assets | 95,009 | 58,453 | ||
Properties, plants, and equipment - net | 1,167,053 | 1,147,770 | ||
Intercompany receivable (payable) | (342,822) | (301,291) | ||
Investments in subsidiaries | ||||
Other non-current assets | 177,907 | 165,080 | ||
Total assets | 1,120,867 | 1,112,704 | ||
Liabilities and Stockholders' Equity | ||||
Current liabilities | 82,221 | 84,559 | ||
Long-term debt | 5,079 | 6,128 | ||
Non-current portion of accrued reclamation | 43,381 | 45,494 | ||
Non-current deferred tax liability | 13,293 | 3,264 | ||
Other non-current liabilities | 5,937 | 5,834 | ||
Stockholders' equity | 970,956 | 967,425 | ||
Total liabilities and stockholders' equity | 1,120,867 | 1,112,704 | ||
Non-Guarantor Subsidiaries [Member] | ||||
Assets | ||||
Cash and cash equivalents | 17,405 | 18,350 | 8,256 | 28,956 |
Other current assets | 43,534 | 32,273 | ||
Properties, plants, and equipment - net | 756,839 | 746,760 | ||
Intercompany receivable (payable) | (329,269) | (332,553) | ||
Investments in subsidiaries | ||||
Other non-current assets | 5,206 | 1,781 | ||
Total assets | 493,715 | 466,611 | ||
Liabilities and Stockholders' Equity | ||||
Current liabilities | 50,845 | 30,636 | ||
Long-term debt | 2,237 | 3,183 | ||
Non-current portion of accrued reclamation | 29,638 | 29,055 | ||
Non-current deferred tax liability | 134,584 | 119,836 | ||
Other non-current liabilities | (380) | (865) | ||
Stockholders' equity | 276,791 | 284,766 | ||
Total liabilities and stockholders' equity | 493,715 | 466,611 | ||
Consolidation, Eliminations [Member] | ||||
Assets | ||||
Cash and cash equivalents | ||||
Other current assets | (12,519) | 7,626 | ||
Properties, plants, and equipment - net | ||||
Intercompany receivable (payable) | 119,071 | 93,179 | ||
Investments in subsidiaries | (1,247,747) | (1,252,191) | ||
Other non-current assets | (152,114) | (113,480) | ||
Total assets | (1,293,309) | (1,264,866) | ||
Liabilities and Stockholders' Equity | ||||
Current liabilities | (25,098) | (9,198) | ||
Long-term debt | ||||
Non-current portion of accrued reclamation | ||||
Non-current deferred tax liability | (20,464) | (3,477) | ||
Other non-current liabilities | ||||
Stockholders' equity | (1,247,747) | (1,252,191) | ||
Total liabilities and stockholders' equity | (1,293,309) | (1,264,866) | ||
Consolidated [Member] | ||||
Assets | ||||
Cash and cash equivalents | 143,613 | 155,209 | 191,574 | 209,665 |
Other current assets | 167,522 | 114,324 | ||
Properties, plants, and equipment - net | 1,926,158 | 1,896,811 | ||
Intercompany receivable (payable) | ||||
Investments in subsidiaries | ||||
Other non-current assets | 33,517 | 55,581 | ||
Total assets | 2,270,810 | 2,221,925 | ||
Liabilities and Stockholders' Equity | ||||
Current liabilities | 129,788 | 127,084 | ||
Long-term debt | 507,670 | 509,040 | ||
Non-current portion of accrued reclamation | 73,019 | 74,549 | ||
Non-current deferred tax liability | 127,413 | 119,623 | ||
Other non-current liabilities | 53,242 | 52,703 | ||
Stockholders' equity | 1,379,678 | 1,338,926 | ||
Total liabilities and stockholders' equity | 2,270,810 | 2,221,925 | ||
Cash and cash equivalents | 143,613 | 155,209 | $ 191,574 | $ 209,665 |
Other current assets | 7,999 | 9,453 | ||
Properties, plants, and equipment - net | 1,926,158 | 1,896,811 | ||
Other non-current assets | 3,638 | 2,783 | ||
Total assets | 2,270,810 | 2,221,925 | ||
Current liabilities | 129,788 | 127,084 | ||
Long-term debt | 500,354 | 500,199 | ||
Non-current deferred tax liability | 127,413 | 119,623 | ||
Other non-current liabilities | 5,362 | 6,190 | ||
Stockholders' equity | 1,379,678 | 1,338,926 | ||
Total liabilities and stockholders' equity | $ 2,270,810 | $ 2,221,925 |
Note 14 - Condensed Consolidati
Note 14 - Condensed Consolidating Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Parent Company [Member] | ||||
Revenues | $ (5,659) | $ 1,081 | $ (11,794) | $ 1,393 |
Cost of sales | ||||
Depreciation, depletion, amortization | ||||
General and administrative | (6,474) | (4,373) | (11,714) | (8,815) |
Exploration and pre-development | (113) | (122) | (158) | (339) |
Loss on derivative contracts | (6) | (2,055) | (6) | 4,905 |
Acquisition costs | (394) | (887) | (394) | (2,055) |
Equity in earnings of subsidiaries | 37,111 | (738) | 16,120 | 39,304 |
Other (expense) income | (349) | (19,573) | 31,444 | (48,508) |
Income (loss) before income taxes | 24,116 | (26,667) | 23,498 | (14,115) |
(Provision) benefit from income taxes | ||||
Net income (loss) | 24,116 | (26,667) | 23,498 | (14,115) |
Preferred stock dividends | (138) | (138) | (276) | (276) |
Income (loss) applicable to common stockholders | 23,978 | (26,805) | 23,222 | (14,391) |
Changes in comprehensive income (loss) | 1,239 | (1,156) | 2,304 | 780 |
Comprehensive income (loss) | 25,355 | (27,823) | 25,802 | (13,335) |
Guarantor Subsidiaries [Member] | ||||
Revenues | 87,992 | 67,531 | 169,261 | 154,465 |
Cost of sales | (47,203) | (41,512) | (93,956) | (92,949) |
Depreciation, depletion, amortization | (15,238) | (16,452) | (31,844) | (33,063) |
General and administrative | (3,679) | (3,392) | (8,202) | (7,285) |
Exploration and pre-development | (1,360) | (1,445) | (2,647) | (2,579) |
Loss on derivative contracts | (92) | |||
Acquisition costs | (8) | (8) | (92) | |
Equity in earnings of subsidiaries | ||||
Other (expense) income | 2,623 | 3,499 | 6,959 | 7,066 |
Income (loss) before income taxes | 23,127 | 8,137 | 39,563 | 25,563 |
(Provision) benefit from income taxes | (8,386) | (1,956) | (13,219) | (6,902) |
Net income (loss) | 14,741 | 6,181 | 26,344 | 18,661 |
Preferred stock dividends | ||||
Income (loss) applicable to common stockholders | 14,741 | 6,181 | 26,344 | 18,661 |
Changes in comprehensive income (loss) | 183 | 8 | (11) | |
Comprehensive income (loss) | 14,741 | 6,364 | 26,352 | 18,650 |
Non-Guarantor Subsidiaries [Member] | ||||
Revenues | 88,969 | 35,585 | 144,852 | 67,431 |
Cost of sales | (35,750) | (26,055) | (63,317) | (48,583) |
Depreciation, depletion, amortization | (14,659) | (10,714) | (23,928) | (19,357) |
General and administrative | (206) | (531) | (657) | (916) |
Exploration and pre-development | (2,410) | (4,643) | (4,432) | (8,428) |
Loss on derivative contracts | ||||
Acquisition costs | ||||
Equity in earnings of subsidiaries | ||||
Other (expense) income | (8,732) | (22,544) | (44,250) | 8,462 |
Income (loss) before income taxes | 27,212 | (28,902) | 8,268 | (1,391) |
(Provision) benefit from income taxes | (4,842) | 21,983 | (18,492) | 22,034 |
Net income (loss) | 22,370 | (6,919) | (10,224) | 20,643 |
Preferred stock dividends | ||||
Income (loss) applicable to common stockholders | 22,370 | (6,919) | (10,224) | 20,643 |
Changes in comprehensive income (loss) | 1,193 | (1,264) | 2,253 | 787 |
Comprehensive income (loss) | 23,563 | (8,183) | (7,971) | 21,430 |
Consolidation, Eliminations [Member] | ||||
Revenues | ||||
Cost of sales | ||||
Depreciation, depletion, amortization | ||||
General and administrative | ||||
Exploration and pre-development | ||||
Loss on derivative contracts | ||||
Acquisition costs | ||||
Equity in earnings of subsidiaries | (37,111) | 738 | (16,120) | (39,304) |
Other (expense) income | (1,732) | 19,895 | (18,561) | 16,439 |
Income (loss) before income taxes | (38,843) | 20,633 | (34,681) | (22,865) |
(Provision) benefit from income taxes | 1,732 | (19,895) | 18,561 | (16,439) |
Net income (loss) | (37,111) | 738 | (16,120) | (39,304) |
Preferred stock dividends | ||||
Income (loss) applicable to common stockholders | (37,111) | 738 | (16,120) | (39,304) |
Changes in comprehensive income (loss) | (1,193) | 1,082 | (2,261) | (775) |
Comprehensive income (loss) | (38,304) | 1,820 | (18,381) | (40,079) |
Consolidated [Member] | ||||
Revenues | 171,302 | 104,197 | 302,319 | 223,289 |
Cost of sales | (82,953) | (67,567) | (157,273) | (141,532) |
Depreciation, depletion, amortization | (29,897) | (27,166) | (55,772) | (52,420) |
General and administrative | (10,359) | (8,296) | (20,573) | (17,016) |
Exploration and pre-development | (3,883) | (6,210) | (7,237) | (11,346) |
Loss on derivative contracts | (6) | (2,147) | (6) | 4,905 |
Acquisition costs | (402) | (887) | (402) | (2,147) |
Equity in earnings of subsidiaries | ||||
Other (expense) income | (8,190) | (18,723) | (24,408) | (16,541) |
Income (loss) before income taxes | 35,612 | (26,799) | 36,648 | (12,808) |
(Provision) benefit from income taxes | (11,496) | 132 | (13,150) | (1,307) |
Net income (loss) | 24,116 | (26,667) | 23,498 | (14,115) |
Preferred stock dividends | (138) | (138) | (276) | (276) |
Income (loss) applicable to common stockholders | 23,978 | (26,805) | 23,222 | (14,391) |
Changes in comprehensive income (loss) | 1,239 | (1,155) | 2,304 | 781 |
Comprehensive income (loss) | 25,355 | (27,822) | 25,802 | (13,334) |
Revenues | 171,302 | 104,197 | 302,319 | 223,289 |
Cost of sales | 82,953 | 67,567 | 157,273 | 141,532 |
Depreciation, depletion, amortization | 29,897 | 27,166 | 55,772 | 52,420 |
General and administrative | 10,359 | 8,296 | 20,573 | 17,016 |
Loss on derivative contracts | (6) | (887) | (6) | 4,905 |
Acquisition costs | 402 | 2,147 | 402 | 2,147 |
Income (loss) before income taxes | 35,612 | (26,799) | 36,648 | (12,808) |
(Provision) benefit from income taxes | 11,496 | (132) | 13,150 | 1,307 |
Net income (loss) | 24,116 | (26,667) | 23,498 | (14,115) |
Preferred stock dividends | 138 | 138 | 276 | 276 |
Income (loss) applicable to common stockholders | 23,978 | (26,805) | 23,222 | (14,391) |
Comprehensive income (loss) | $ 25,355 | $ (27,822) | $ 25,802 | $ (13,334) |
Note 14 - Condensed Consolida52
Note 14 - Condensed Consolidating Statements of Cash Flows (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Parent Company [Member] | ||
Cash flows from operating activities | $ 22,190 | $ 31,482 |
Investing activities: | ||
Additions to properties, plants, and equipment | (40) | (436) |
Other investing activities, net | (15,248) | 61 |
Financing activities: | ||
Dividends paid to stockholders | (2,190) | (2,126) |
Payments on debt | (1,339) | |
Other financing activity | (4,948) | (47,645) |
Effect of exchange rate changes on cash | ||
Changes in cash and cash equivalents | 8,321 | (19,473) |
Cash and cash equivalents at beginning of period | 94,167 | 146,885 |
Cash and cash equivalents at end of period | 102,488 | 127,412 |
Cash flows from operating activities | 22,190 | 31,482 |
Additions to properties, plants, and equipment | (40) | (436) |
Acquisition of Revett, net of cash acquired | (809) | |
Other investing activities, net | (15,248) | 61 |
Guarantor Subsidiaries [Member] | ||
Cash flows from operating activities | (8,639) | 49,275 |
Investing activities: | ||
Additions to properties, plants, and equipment | (43,677) | (40,963) |
Other investing activities, net | 317 | 267 |
Financing activities: | ||
Dividends paid to stockholders | ||
Payments on debt | (3,836) | (4,349) |
Other financing activity | 36,863 | 17,852 |
Effect of exchange rate changes on cash | ||
Changes in cash and cash equivalents | (18,972) | 22,082 |
Cash and cash equivalents at beginning of period | 42,692 | 33,824 |
Cash and cash equivalents at end of period | 23,720 | 55,906 |
Cash flows from operating activities | (8,639) | 49,275 |
Additions to properties, plants, and equipment | (43,677) | (40,963) |
Acquisition of Revett, net of cash acquired | ||
Other investing activities, net | 317 | 267 |
Non-Guarantor Subsidiaries [Member] | ||
Cash flows from operating activities | 40,815 | 7,355 |
Investing activities: | ||
Additions to properties, plants, and equipment | (33,243) | (16,873) |
Other investing activities, net | (3,900) | (1,122) |
Financing activities: | ||
Dividends paid to stockholders | ||
Payments on debt | (520) | (591) |
Other financing activity | (5,385) | (7,210) |
Effect of exchange rate changes on cash | 1,288 | (2,259) |
Changes in cash and cash equivalents | (945) | (20,700) |
Cash and cash equivalents at beginning of period | 18,350 | 28,956 |
Cash and cash equivalents at end of period | 17,405 | 8,256 |
Cash flows from operating activities | 40,815 | 7,355 |
Additions to properties, plants, and equipment | (33,243) | (16,873) |
Acquisition of Revett, net of cash acquired | ||
Other investing activities, net | (3,900) | (1,122) |
Consolidation, Eliminations [Member] | ||
Cash flows from operating activities | 31,772 | (35,939) |
Investing activities: | ||
Additions to properties, plants, and equipment | ||
Other investing activities, net | ||
Financing activities: | ||
Dividends paid to stockholders | ||
Payments on debt | ||
Other financing activity | (31,772) | 35,939 |
Effect of exchange rate changes on cash | ||
Changes in cash and cash equivalents | ||
Cash and cash equivalents at beginning of period | ||
Cash and cash equivalents at end of period | ||
Cash flows from operating activities | 31,772 | (35,939) |
Additions to properties, plants, and equipment | ||
Acquisition of Revett, net of cash acquired | ||
Other investing activities, net | ||
Consolidated [Member] | ||
Cash flows from operating activities | 86,138 | 52,173 |
Investing activities: | ||
Additions to properties, plants, and equipment | (76,960) | (58,272) |
Other investing activities, net | (18,831) | (794) |
Financing activities: | ||
Dividends paid to stockholders | (2,190) | (2,126) |
Payments on debt | (5,695) | (4,940) |
Other financing activity | 4,654 | (1,064) |
Effect of exchange rate changes on cash | 1,288 | (2,259) |
Changes in cash and cash equivalents | (11,596) | (18,091) |
Cash and cash equivalents at beginning of period | 155,209 | 209,665 |
Cash and cash equivalents at end of period | 143,613 | 191,574 |
Cash flows from operating activities | 86,138 | 52,173 |
Additions to properties, plants, and equipment | (76,960) | (58,272) |
Acquisition of Revett, net of cash acquired | (809) | |
Other investing activities, net | (18,831) | (794) |
Cash flows from operating activities | 86,138 | 52,173 |
Additions to properties, plants, and equipment | (76,960) | (58,272) |
Effect of exchange rate changes on cash | 1,288 | (2,259) |
Changes in cash and cash equivalents | (11,596) | (18,091) |
Cash and cash equivalents at beginning of period | 155,209 | 209,665 |
Cash and cash equivalents at end of period | 143,613 | 191,574 |
Cash flows from operating activities | 86,138 | 52,173 |
Additions to properties, plants, and equipment | (76,960) | (58,272) |
Acquisition of Revett, net of cash acquired | $ 809 |