v3.26.3
Note 9 - Fair Value Measurement
 9 Months Ended
Sep. 30, 2026
Disclosure Text Block [Abstract]  
Fair Value Measurement

Note 9. Fair Value Measurement

 

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

 

 

Three months ended September 30,

 

 

Nine months ended September 30,

 

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Loss on derivative contracts

 

$

(4,225

)

 

$

(7,630

)

 

$

(25,198

)

 

$

(2,895

)

Gain on sale of equity security investments

 

 

13,804

 

 

 

—

 

 

 

37,549

 

 

 

—

 

Unrealized gain (loss) on equity security investments

 

 

17,112

 

 

 

27,458

 

 

 

(851

)

 

 

30,561

 

Total fair value adjustments, net

 

$

26,691

 

 

$

19,828

 

 

$

11,500

 

 

$

27,666

 

 

During the three and nine months ended September 30, 2026, we disposed of 32,878,400 Orezone Gold shares received as part of the Hecla Quebec sale consideration for a realized gain of $12.8 million.

 

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
September 30,
2026

 

 

Balance at
December 31,
2025

 

 

Input
Hierarchy Level

Assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents:

 

 

 

 

 

 

 

 

Money market funds and other bank deposits

 

$

691,569

 

 

$

241,558

 

 

Level 1

Current and non-current investments:

 

 

 

 

 

 

 

 

Equity securities

 

 

121,155

 

 

 

107,486

 

 

Level 1

Trade accounts receivable:

 

 

 

 

 

 

 

 

Receivables from provisional concentrate sales

 

 

134,250

 

 

 

170,230

 

 

Level 2

Restricted cash and cash equivalent balances:

 

 

 

 

 

 

 

 

Certificates of deposit and other deposits

 

 

1,170

 

 

 

1,174

 

 

Level 1

Derivative contracts - current and non-current derivative assets:

 

 

 

 

 

 

 

 

Foreign exchange contracts

 

 

159

 

 

 

1,127

 

 

Level 2

Metal forward contracts

 

 

—

 

 

 

15,840

 

 

Level 2

Gold-price contingent asset

 

 

5,778

 

 

 

—

 

 

Level 2

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

Derivative contracts - current and non-current derivative liabilities:

 

 

 

 

 

 

 

 

Foreign exchange contracts

 

$

1,164

 

 

$

829

 

 

Level 2

Metal forward contracts

 

 

22,399

 

 

 

38,273

 

 

Level 2

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

 

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 the forward price 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 8 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 silver, zinc, and lead contained in our forecasted future sales (see Note 8 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 13). The contingent assets are valued quarterly using an option pricing model with observable inputs.

 

The New Credit Agreement, which we consider to be Level 2 in the fair value hierarchy, has a carrying and fair value of nil.