v3.26.1
Note 3 - Business Segments and Sales of Products
 3 Months Ended
Mar. 31, 2026
Disclosure Text Block [Abstract]  
Business Segments and Sales of Products

Note 3. Business Segments and Sales of Products

 

We discover, acquire and develop mines and other mineral interests and produce and market (i) concentrates containing silver, gold, lead, zinc and copper, (ii) carbon material containing silver and gold, and (iii) doré containing silver and gold. We are currently organized and managed in three segments: Greens Creek, Lucky Friday and Keno Hill.

 

We regularly review our segment reporting for alignment with our strategic goals and operational structure as well as for evaluation of business performance and the allocation of resources by our President and Chief Executive Officer, who has been identified as our Chief Operating Decision Maker ("CODM"). The CODM evaluates the performance for all of our reportable segments based on segment gross profit or loss. For all segments, the CODM uses segment gross profit or loss to assess segment performance and allocate resources for each segment predominantly in the annual budget and forecasting process. The CODM considers budget to actual variances on a monthly basis when making decisions about allocating capital and personnel to the segments. Significant segment expenses that are components of total cost of goods sold and drive the financial performance of our reportable segments are (i) salaries, wages and other benefits, (ii) contractors, (iii) materials and consumables (iv) change in product inventory and (v) other direct production costs. In further evaluating the operational performance of each segment, the CODM also considers the amount of metals production versus budget, and the grade of the metal processed.

 

General corporate activities not associated with operating mines and their various exploration activities, as well as idle properties and environmental remediation services in the Yukon, Canada, are presented as “other.” The nature of the items that reconcile gross profit to income before income and mining taxes are not related to our reportable segments.

 

The tables below present information about our reportable segments for the three months ended March 31, 2026 and 2025 (in thousands):

 

Three months ended March 31, 2026

Greens Creek

 

Lucky Friday

 

Keno Hill

 

Total Reportable Segments

 

Other

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Metal sales

$

250,999

 

$

109,356

 

$

46,426

 

$

406,781

 

$

—

 

$

406,781

 

Environmental remediation services

 

—

 

 

—

 

 

—

 

 

—

 

 

4,652

 

 

4,652

 

Intersegment sales

 

—

 

 

—

 

 

1,639

 

 

1,639

 

 

—

 

 

1,639

 

Reconciliation of sales

 

250,999

 

 

109,356

 

 

48,065

 

 

408,420

 

 

4,652

 

 

413,072

 

Elimination of intersegment sales

 

—

 

 

—

 

 

(1,639

)

 

(1,639

)

 

—

 

 

(1,639

)

Total consolidated sales

 

 

 

 

 

 

 

 

 

 

 

411,433

 

Cost of sales and other direct production costs

 

 

 

 

 

 

 

 

 

 

 

 

Salaries, wages and other benefits

 

20,582

 

 

20,523

 

 

8,897

 

 

50,002

 

 

178

 

 

50,180

 

Contractors

 

2,705

 

 

3,956

 

 

2,251

 

 

8,912

 

 

4,640

 

 

13,552

 

Materials and consumables

 

27,595

 

 

10,445

 

 

7,273

 

 

45,313

 

 

94

 

 

45,407

 

Product inventory change

 

5,383

 

 

(293

)

 

(3,218

)

 

1,872

 

 

—

 

 

1,872

 

Other direct production costs

 

10,110

 

 

542

 

 

2,720

 

 

13,372

 

 

27

 

 

13,399

 

Depreciation, depletion and amortization

 

15,983

 

 

13,609

 

 

4,176

 

 

33,768

 

 

—

 

 

33,768

 

Gross profit (loss)

$

168,641

 

$

60,574

 

$

24,327

 

$

253,542

 

$

(287

)

$

253,255

 

Other operating expenses (a)

 

 

 

 

 

 

 

 

 

 

 

30,148

 

Income from operations

 

 

 

 

 

 

 

 

 

 

 

223,107

 

Other Expense:

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

 

 

 

 

 

 

 

 

 

(5,656

)

Fair value adjustments, net

 

 

 

 

 

 

 

 

 

 

 

(5,945

)

Foreign exchange gain, net

 

 

 

 

 

 

 

 

 

 

 

498

 

Other income

 

 

 

 

 

 

 

 

 

 

 

3,549

 

Income before income and mining taxes

 

 

 

 

 

 

 

 

 

 

$

215,553

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital additions

$

6,113

 

$

17,018

 

$

15,025

 

$

38,156

 

$

1,109

 

$

39,265

 

 

(a) Other operating expense items include general and administrative, exploration and pre-development, ramp-up and suspension costs, provision for closed operations and environmental matters, and other operating (income) expense, net.
 

Three months ended March 31, 2025

Greens Creek

Lucky Friday

Keno Hill

Total Reportable Segments

Other

Total

 

 

 

 

 

 

 

Metal sales

$118,143

$63,194

$16,909

$198,246

$—

$198,246

Environmental remediation services

—

—

—

—

7,088

7,088

Intersegment sales

—

—

986

986

—

986

Reconciliation of sales

118,143

63,194

17,895

199,232

7,088

206,320

Elimination of intersegment sales

—

—

(986)

(986)

—

(986)

Total consolidated sales

 

 

 

 

 

205,334

Cost of sales and other direct production costs

 

 

 

 

 

 

Salaries, wages and employee benefits

18,253

14,776

6,472

39,501

58

39,559

Contractors

905

3,863

3,551

8,319

6,931

15,250

Materials and consumables

25,665

11,423

5,994

43,082

106

43,188

Product inventory change

901

1,182

(7,962)

(5,879)

—

(5,879)

Other direct production costs

10,325

(620)

5,014

14,719

—

14,719

Depreciation, depletion and amortization

13,589

13,425

2,802

29,816

—

29,816

Gross profit

$48,505

$19,145

$1,038

$68,688

$(7)

$68,681

Other operating expenses (a)

 

 

 

 

 

21,276

Income from operations

 

 

 

 

 

47,405

 

 

 

 

 

 

 

Other Expense:

 

 

 

 

 

 

Interest expense

 

 

 

 

 

(11,392)

Fair value adjustments, net

 

 

 

 

 

3,388

Foreign exchange loss, net

 

 

 

 

 

(367)

Other income

 

 

 

 

 

942

Income before income and mining taxes

 

 

 

 

 

$39,976

 

 

 

 

 

 

 

Capital additions

$10,759

$15,446

$10,436

$36,641

$1,197

$37,838

(a) Other operating expense items include general and administrative, exploration and pre-development, ramp-up and suspension costs, provision for closed operations and environmental matters, and other operating (income) expense, net.

 

Other sales for the three months ended March 31, 2026 and 2025 is solely comprised of revenue from our environmental remediation services subsidiary in the Yukon. During the three months ended March 31, 2026, Keno Hill sold $1.7 million (2025: $1.0 million) of precious metals concentrate to Greens Creek which is eliminated upon consolidation.

 

Sales by metal for the three months ended March 31, 2026 and 2025 were as follows (in thousands):

 

 

Three Months Ended March 31,

 

 

 

2026

 

 

2025

 

Silver

 

$

295,633

 

 

$

117,977

 

Gold

 

 

56,977

 

 

 

31,359

 

Lead

 

 

22,297

 

 

 

22,106

 

Zinc

 

 

36,873

 

 

 

33,125

 

Copper

 

 

412

 

 

 

391

 

Less: Smelter and refining charges

 

 

(5,411

)

 

 

(6,712

)

Total metal sales

 

 

406,781

 

 

 

198,246

 

Environmental remediation services

 

 

4,652

 

 

 

7,088

 

Total sales

 

$

411,433

 

 

$

205,334

 

 

Sales of metals for the three months ended March 31, 2026 include net losses of $10.2 million (2025: $5.1 million net loss) on derivative contracts for silver, lead and zinc on such contracts. See Note 9 for more information.

 

The following table presents total assets by reportable segment as of March 31, 2026 and December 31, 2025 (in thousands):

 

 

March 31, 2026

 

 

December 31, 2025

 

Total assets:

 

 

 

 

 

 

Greens Creek

 

$

707,216

 

 

$

640,011

 

Lucky Friday

 

 

681,365

 

 

 

688,997

 

Keno Hill

 

 

492,688

 

 

 

505,205

 

Other

 

 

1,495,024

 

 

 

974,703

 

Total assets of reportable segments

 

 

3,376,293

 

 

 

2,808,916

 

Assets of discontinued operations

 

 

—

 

 

 

751,729

 

Total assets

 

 

3,376,293

 

 

 

3,560,645