Guarantor Subsidiaries [Text Block] | Note 13. Presented below are Hecla’s unaudited interim condensed consolidating financial statements as required by Rule 3 10 X 1934, Note 9 February 19, 2020 first four July 9, 2020. The unaudited interim condensed consolidating financial statements below have been prepared from our financial information on the same basis of accounting as the unaudited interim condensed consolidated financial statements set forth elsewhere in this report. Investments in the subsidiaries are accounted for under the equity method. Accordingly, the entries necessary to consolidate Hecla, the Guarantors, and our non-guarantor subsidiaries are reflected in the intercompany eliminations column. In the course of preparing consolidated financial statements, we eliminate the effects of various transactions conducted between Hecla and its subsidiaries and among the subsidiaries. While valid at an individual subsidiary level, such activities are eliminated in consolidation because, when taken as a whole, they do not third • Investments in subsidiaries • Capital contributions not not • Debt. • Dividends. • Deferred taxes two may not Separate financial statements of the Guarantors are not 1 2 3 4 5 Unaudited Interim Condensed Consolidating Balance Sheets As of June 30, 2020 Parent Guarantors Non-Guarantors Eliminations Consolidated (in thousands) Assets Cash and cash equivalents $ 42,071 $ 24,523 $ 9,329 $ — $ 75,923 Other current assets 12,745 115,587 10,700 (74 ) 138,958 Properties, plants, equipment and mineral interests, net 1,913 2,343,623 9,347 — 2,354,883 Intercompany receivable (payable) (25,989 ) (559,649 ) 221,658 363,980 — Investments in subsidiaries 1,643,530 — — (1,643,530 ) — Other non-current assets 277,344 24,666 (120,211 ) (148,155 ) 33,644 Total assets $ 1,951,614 $ 1,948,750 $ 130,823 $ (1,427,779 ) $ 2,603,408 Liabilities and Stockholders' Equity Current liabilities $ (284,257 ) $ 150,204 $ 3,987 $ 245,702 $ 115,636 Long-term debt 518,252 15,848 288 — 534,388 Non-current portion of accrued reclamation — 93,160 6,289 — 99,449 Non-current deferred tax liability — 158,628 — (29,951 ) 128,677 Other non-current liabilities 58,926 6,673 966 — 66,565 Stockholders' equity 1,658,693 1,524,237 119,293 (1,643,530 ) 1,658,693 Total liabilities and stockholders' equity $ 1,951,614 $ 1,948,750 $ 130,823 $ (1,427,779 ) $ 2,603,408 As of December 31, 2019 Parent Guarantors Non-Guarantors Eliminations Consolidated (in thousands) Assets Cash and cash equivalents $ 33,750 $ 15,357 $ 13,345 $ — $ 62,452 Other current assets 9,725 89,722 17,299 (74 ) 116,672 Properties, plants, equipment and mineral interests - net 1,913 2,410,458 11,327 — 2,423,698 Intercompany receivable (payable) (28,381 ) (579,830 ) 216,632 391,579 — Investments in subsidiaries 1,636,802 — — (1,636,802 ) — Other non-current assets 289,422 24,325 (121,981 ) (157,280 ) 34,486 Total assets $ 1,943,231 $ 1,960,032 $ 136,622 $ (1,402,577 ) $ 2,637,308 Liabilities and Stockholders' Equity Current liabilities $ (309,293 ) $ 155,441 $ 8,334 $ 262,492 $ 116,974 Long-term debt 504,729 17,271 761 — 522,761 Non-current portion of accrued reclamation — 96,389 7,404 — 103,793 Non-current deferred tax liability — 166,549 — (28,267 ) 138,282 Other non-current liabilities 55,372 6,577 1,126 — 63,075 Stockholders' equity 1,692,423 1,517,805 118,997 (1,636,802 ) 1,692,423 Total liabilities and stockholders' equity $ 1,943,231 $ 1,960,032 $ 136,622 $ (1,402,577 ) $ 2,637,308 Unaudited Interim Condensed Consolidating Statements of Operations Three Months Ended June 30, 2020 Parent Guarantors Non-Guarantors Eliminations Consolidated (in thousands) Revenues $ (4,998 ) $ 166,420 $ 4,933 $ — $ 166,355 Cost of sales (1,044 ) (88,705 ) (3,104 ) — (92,853 ) Depreciation, depletion, amortization — (38,528 ) (895 ) — (39,423 ) General and administrative (1,641 ) (4,789 ) (549 ) — (6,979 ) Exploration and pre-development (11 ) (1,745 ) (769 ) — (2,525 ) Gain on derivative contracts (14,002 ) — — — (14,002 ) Acquisition costs (6 ) — — — (6 ) Equity in earnings of subsidiaries (4,601 ) — — 4,601 — Other expense 12,312 (31,301 ) 2,325 (7,305 ) (23,969 ) Income (loss) before income taxes (13,991 ) 1,352 1,941 (2,704 ) (13,402 ) (Provision) benefit from income taxes (37 ) (7,657 ) (237 ) 7,305 (626 ) Net income (loss) (14,028 ) (6,305 ) 1,704 4,601 (14,028 ) Preferred stock dividends (138 ) — — — (138 ) Income (loss) applicable to common stockholders (14,166 ) (6,305 ) 1,704 4,601 (14,166 ) Net income (loss) (14,028 ) (6,305 ) 1,704 4,601 (14,028 ) Changes in comprehensive income (loss) 10,384 — — — 10,384 Comprehensive income (loss) $ (3,644 ) $ (6,305 ) $ 1,704 $ 4,601 $ (3,644 ) Six Months Ended June 30, 2020 Parent Guarantors Non-Guarantors Eliminations Consolidated (in thousands) Revenues $ (3,319 ) $ 291,736 $ 14,863 $ — $ 303,280 Cost of sales (1,328 ) (167,456 ) (9,956 ) — (178,740 ) Depreciation, depletion, amortization — (76,721 ) (2,368 ) — (79,089 ) General and administrative (4,804 ) (10,128 ) (986 ) — (15,918 ) Exploration and pre-development (23 ) (3,800 ) (1,767 ) — (5,590 ) Loss on derivative contracts (6,109 ) — — — (6,109 ) Acquisition costs (11 ) — — — (11 ) Equity in earnings of subsidiaries 6,729 — — (6,729 ) — Other expense (22,311 ) (20,597 ) 1,584 (8,148 ) (49,472 ) Income (loss) before income taxes (31,176 ) 13,034 1,370 (14,877 ) (31,649 ) (Provision) benefit from income taxes (37 ) (6,601 ) (1,074 ) 8,148 436 Net income (loss) (31,213 ) 6,433 296 (6,729 ) (31,213 ) Preferred stock dividends (276 ) — — — (276 ) Income (loss) applicable to common stockholders (31,489 ) 6,433 296 (6,729 ) (31,489 ) Net income (loss) (31,213 ) 6,433 296 (6,729 ) (31,213 ) Changes in comprehensive income (loss) (8,951 ) — — — (8,951 ) Comprehensive income (loss) $ (40,164 ) $ 6,433 $ 296 $ (6,729 ) $ (40,164 ) Three Months Ended June 30, 2019 Parent Guarantors Non-Guarantors Eliminations Consolidated (in thousands) Revenues $ 1,292 $ 121,846 $ 11,034 $ — $ 134,172 Cost of sales (257 ) (95,235 ) (9,446 ) — (104,938 ) Depreciation, depletion, amortization — (47,629 ) (1,848 ) — (49,477 ) General and administrative (4,766 ) (3,738 ) (414 ) — (8,918 ) Exploration and pre-development (3 ) (3,268 ) (1,873 ) — (5,144 ) Research and development — (155 ) (3 ) — (158 ) Gain on derivative contracts 3,798 — — — 3,798 Acquisition costs (163 ) (81 ) (153 ) — (397 ) Equity in earnings of subsidiaries (48,370 ) — — 48,370 — Other (expense) income 1,939 (26,675 ) 525 (2,438 ) (26,649 ) Income (loss) before income taxes (46,530 ) (54,935 ) (2,178 ) 45,932 (57,711 ) (Provision) benefit from income taxes (2 ) 2,558 6,184 2,439 11,179 Net income (loss) (46,532 ) (52,377 ) 4,006 48,371 (46,532 ) Preferred stock dividends (138 ) — — — (138 ) Income (loss) applicable to common stockholders (46,670 ) (52,377 ) 4,006 48,371 (46,670 ) Net income (loss) (46,532 ) (52,377 ) 4,006 48,371 (46,532 ) Changes in comprehensive income (loss) 3,540 — — — 3,540 Comprehensive income (loss) $ (42,992 ) $ (52,377 ) $ 4,006 $ 48,371 $ (42,992 ) Six Months Ended June 30, 2019 Parent Guarantors Non-Guarantors Eliminations Consolidated (in thousands) Revenues $ (1,185 ) $ 264,340 $ 23,634 $ — $ 286,789 Cost of sales (718 ) (194,568 ) (20,038 ) — (215,324 ) Depreciation, depletion, amortization — (84,656 ) (3,608 ) — (88,264 ) General and administrative (9,159 ) (8,849 ) (869 ) — (18,877 ) Exploration and pre-development (19 ) (6,330 ) (4,053 ) — (10,402 ) Research and development — (558 ) (3 ) — (561 ) Loss on derivative contracts 1,999 — — — 1,999 Acquisition costs (121 ) (136 ) (153 ) — (410 ) Equity in earnings of subsidiaries (70,803 ) — — 70,803 — Other (expense) income 7,943 (46,453 ) 1,932 (8,832 ) (45,410 ) Income (loss) before income taxes (72,063 ) (77,210 ) (3,158 ) 61,971 (90,460 ) (Provision) benefit from income taxes (2 ) 2,496 7,069 8,832 18,395 Net income (loss) (72,065 ) (74,714 ) 3,911 70,803 (72,065 ) Preferred stock dividends (276 ) — — — (276 ) Income (loss) applicable to common stockholders (72,341 ) (74,714 ) 3,911 70,803 (72,341 ) Net income (loss) (72,065 ) (74,714 ) 3,911 70,803 (72,065 ) Changes in comprehensive income (loss) 7,799 — — — 7,799 Comprehensive income (loss) $ (64,266 ) $ (74,714 ) $ 3,911 $ 70,803 $ (64,266 ) Unaudited Interim Condensed Consolidating Statements of Cash Flows Six Months Ended June 30, 2020 Parent Guarantors Non-Guarantors Eliminations Consolidated (in thousands) Cash flows from operating activities $ (8,252 ) $ 77,161 $ 6,188 $ (32,644 ) $ 42,453 Cash flows from investing activities: Additions to properties, plants, and equipment — (30,385 ) (304 ) — (30,689 ) Other investing activities, net (6,728 ) 156 (593 ) 6,728 (437 ) Cash flows from financing activities: Dividends paid to stockholders (2,898 ) — — — (2,898 ) Issuance of debt 679,500 — — — 679,500 Payments on debt (666,500 ) (2,840 ) — — (669,340 ) Other financing activity 13,199 (34,040 ) (8,371 ) 25,916 (3,296 ) Effect of exchange rate changes on cash — (858 ) (936 ) — (1,794 ) Changes in cash, cash equivalents and restricted cash and cash equivalents 8,321 9,194 (4,016 ) — 13,499 Beginning cash, cash equivalents and restricted cash and cash equivalents 33,750 16,382 13,345 — 63,477 Ending cash, cash equivalents and restricted cash and cash equivalents $ 42,071 $ 25,576 $ 9,329 $ — $ 76,976 Six Months Ended June 30, 2019 Parent Guarantors Non-Guarantors Eliminations Consolidated (in thousands) Cash flows from operating activities $ (168,393 ) $ 13,738 $ 25,818 $ 137,550 $ 8,713 Cash flows from investing activities: Additions to properties, plants, and equipment — (64,800 ) (6,445 ) (71,245 ) Other investing activities, net 71,485 (82 ) — (71,485 ) (82 ) Cash flows from financing activities: Dividends paid to stockholders (2,706 ) — — (2,706 ) Borrowings on debt 170,000 — — 170,000 Payments on debt (118,000 ) 2,858 (6,235 ) (121,377 ) Other financing activity 41,363 37,620 (14,608 ) (66,065 ) (1,690 ) Effect of exchange rate changes on cash — 432 — 432 Changes in cash, cash equivalents and restricted cash and cash equivalents (6,251 ) (10,234 ) (1,470 ) — (17,955 ) Beginning cash, cash equivalents and restricted cash and cash equivalents 6,265 18,259 3,890 — 28,414 Ending cash, cash equivalents and restricted cash and cash equivalents $ 14 $ 8,025 $ 2,420 $ — $ 10,459 Forward-Looking Statements Certain statements contained in this Form 10 27A 1933, 21E 1934, “may,” These risks, uncertainties and other factors include, but are not Part I, Item 1A. 10 December 31, 2019, Part II, Item 1A. 10 March 31, 2020. not not |