v3.26.1
Note 10 - Fair Value Measurement
 3 Months Ended
Mar. 31, 2026
Disclosure Text Block [Abstract]  
Fair Value Measurement

Note 10. Fair Value Measurement

 

Fair value adjustments, net is comprised of the following (in thousands):

 

 

Three Months Ended March 31,

 

 

 

2026

 

 

2025

 

Loss on derivative contracts

 

$

(10,335

)

 

$

(253

)

Gain on sale of equity securities investments

 

 

23,675

 

 

 

—

 

Unrealized (loss) gain on equity securities investments

 

 

(19,285

)

 

 

3,641

 

Total fair value adjustments, net

 

$

(5,945

)

 

$

3,388

 

 

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

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

Level 2: significant other observable inputs; and

Level 3: significant unobservable inputs.

 

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

Description

 

Balance at
March 31,
2026

 

 

Balance at
December 31,
2025

 

 

Input
Hierarchy Level

Assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents:

 

 

 

 

 

 

 

 

Money market funds and other bank deposits

 

$

587,550

 

 

$

241,558

 

 

Level 1

Current and non-current investments:

 

 

 

 

 

 

 

 

Equity securities

 

 

178,049

 

 

 

107,486

 

 

Level 1

Trade accounts receivable:

 

 

 

 

 

 

 

 

Receivables from provisional concentrate sales

 

 

215,534

 

 

 

170,230

 

 

Level 2

Restricted cash and cash equivalent balances:

 

 

 

 

 

 

 

 

Certificates of deposit and other deposits

 

 

1,172

 

 

 

1,174

 

 

Level 1

Derivative contracts - current and non-current derivative assets:

 

 

 

 

 

 

 

 

Foreign exchange contracts

 

 

384

 

 

 

1,127

 

 

Level 2

Metal forward contracts

 

 

16,363

 

 

 

15,840

 

 

Level 2

Gold-price contingent asset

 

 

3,254

 

 

 

—

 

 

Level 2

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

Derivative contracts - current and non-current derivative liabilities:

 

 

 

 

 

 

 

 

Foreign exchange contracts

 

$

1,318

 

 

$

829

 

 

Level 2

Metal forward contracts

 

 

15,230

 

 

 

38,273

 

 

Level 2

Cash and cash equivalents consist primarily of money market funds which are carried at fair value.

 

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

 

Our current and non-current investments consist of marketable equity securities of mining companies and mutual funds held by our SERP which are valued using quoted market prices for each security.

 

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

 

We use financially-settled forward contracts to manage exposure to changes in the exchange rate between USD and CAD, and the impact on CAD-denominated operating and capital costs incurred at our Keno Hill operation (see Note 9 for more information). The fair value of each contract represents the present value of the difference between the forward exchange rate for the contract settlement period as of the measurement date and the contract settlement exchange rate.

 

We use derivative contracts to (i) manage the exposure to changes in prices of silver, gold, zinc and lead contained in our concentrate shipments that have not reached final settlement and (ii) manage the exposure to changes in prices of gold, zinc and lead contained in our forecasted future sales (see Note 9 for more information). The fair value of each forward contract represents the present value of the difference between the forward metal price for the contract settlement period as of the measurement date and the contract settlement metal price.

 

The gold-price linked contingent assets were part of the consideration for the sale of Hecla Quebec to Orezone (see Note 2). The contingent assets are valued quarterly using an option pricing model with observable inputs.

 

At March 31, 2026, our Senior Notes were recorded at their carrying value of $262.1 million net of unamortized initial purchaser discount and issuance costs. The estimated fair value of our Senior Notes was $263.2 million at March 31, 2026. Quoted market prices, which are considered to be Level 1 inputs, are utilized to estimate fair values of the Senior Notes. The Credit Agreement, which we consider to be Level 1 in the fair value hierarchy, has a carrying and fair value of nil.