Hecla Mining pany(HL) - 2024 Q4 - Annual Report

Financial Performance - Total revenues for the year ended December 31, 2024, were $929.9 million, with a net income of$35.8 million [399]. - The cost of sales amounted to $548.2 million, resulting in a gross profit margin of approximately 41$19.7 million for the year, reflecting a significant recovery from previous losses [399]. - Cash and cash equivalents totaled $26.9 million as of December 31, 2024, indicating a stable liquidity position [398]. - Long-term debt stood at$508.9 million, with current liabilities totaling $197.8 million [398]. - The company’s total assets were valued at$2.98 billion, with significant investments in subsidiaries amounting to $2.45 billion [398]. - Deferred tax liabilities were recorded at$110.3 million, highlighting the company's tax position [398]. - The company declared preferred stock dividends of $552,000, impacting the income applicable to common stockholders [399]. - Exploration and pre-development expenses totaled$27.3 million, reflecting ongoing investment in future projects [399]. - The company utilized inter-company advances to support subsidiaries that do not generate sufficient cash flow, indicating a strategic approach to capital management [395]. Risks and Challenges - A substantial or extended decline in metals prices could materially adversely affect the company's financial results [16]. - The company has a significant amount of debt, which may impair financial health and hinder the ability to meet obligations [16]. - The company recorded net operating losses, which could recur in the future, impacting the recognition of deferred tax assets [16]. - The company derives a significant portion of revenue from a small number of customers, increasing revenue concentration risk [16]. - The company is involved in ongoing legal disputes that could hinder project development in Montana [20]. - The company faces complex and evolving environmental regulations that could impose significant costs and affect operations [20]. - The company has estimated its environmental and asset retirement obligations, which may exceed recognized liabilities [20]. Accounting and Valuation - The company assesses mineral reserves and resources annually, which are critical for property valuation and future cash flow forecasts [380]. - The company is evaluating the impact of new accounting standards on its consolidated financial statements and disclosures [388]. Price Management - The company utilizes forward contracts to manage exposure to price changes for silver, gold, zinc, and lead, impacting financial results [378].