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Note 3 - Revision of Previously Issued Financial Statements for Immaterial Misstatements | 12 Months Ended
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Dec. 31, 2021
Notes to Financial Statements |
Error Correction [Text Block] | Note 3. Revision of Previously Issued Financial Statements for Immaterial Misstatements Casa Berardi DDA In the third quarter of 2021, we determined accumulated DDA and DDA expense at Casa Berardi, an operation within our Hecla Quebec Inc. subsidiary, were overstated for the periods from June 1, 2013 through June 30, 2021 as a result of errors in calculation from the date of acquisition of Casa Berardi. DDA was overstated by approximately $38.2 million in the aggregate over 8 years as a result of errors in the calculation of straight-line depreciation on machinery, equipment and buildings. We assessed the materiality of the effect of the errors on our prior quarterly and annual financial statements, both quantitatively and qualitatively, in accordance with the SEC’s Staff Accounting Bulletin (“SAB”) No. 99, “Materiality,” and SAB No. 108, “Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements,” and concluded the errors were not material to any of our previously issued financial statements. Consequently, we concluded we would correct these errors prospectively and revise our financial statements when the consolidated balance sheets, statements of operations and comprehensive income and cash flows for such prior periods are included in future filings (the “Revisions”). The Revisions had no net impact on our sales or net cash provided by operating activities for any period presented. The impact of these misstatements on prior periods is more fully disclosed below. Reclassification of State Mining Income Taxes We reclassified certain state mining income taxes from Cost of sales and other direct production costs to Income and mining tax provision effective January 1, 2021. In connection with the revision of our historical financial statements for the correction of the DDA adjustment described above, we revised our previously issued financial statements for this reclassification that required us to recognize previously unrecognized deferred taxes. The following tables present a summary of the impact, by financial statement line item, of the Revisions as of and for the years ended December 31, 2020 and 2019:
|  | As of and for the Year Ended December 31, 2020 |
(in thousands, except per share amounts) |  | As Previously Reported |  |  | Adjustment |  |  | As Revised |
Consolidated Balance Sheet |  |  |  |  |  |  |  |  |  |  |  |
Inventories: Concentrates, doré, and stockpiled ore |  | $ | 57,936 |  |  | $ | (369 | ) |  | $ | 57,567 |
Total current assets |  |  | 284,681 |  |  |  | (369 | ) |  |  | 284,312 |
Properties, plants, equipment and mineral interests, net |  |  | 2,345,219 |  |  |  | 32,855 |  |  |  | 2,378,074 |
Total assets |  |  | 2,667,724 |  |  |  | 32,486 |  |  |  | 2,700,210 |
Accrued taxes |  |  | 8,349 |  |  |  | (2,575 | ) |  |  | 5,774 |
Total current liabilities |  |  | 149,785 |  |  |  | (2,575 | ) |  |  | 147,210 |
Deferred tax liability |  |  | 132,475 |  |  |  | 23,616 |  |  |  | 156,091 |
Total liabilities |  |  | 965,384 |  |  |  | 21,041 |  |  |  | 986,425 |
Accumulated deficit |  |  | (379,519 | ) |  |  | 11,445 |  |  |  | (368,074 | )
Total shareholders' equity |  |  | 1,702,340 |  |  |  | 11,445 |  |  |  | 1,713,785 |
Total liabilities and shareholders' equity |  |  | 2,667,724 |  |  |  | 32,486 |  |  |  | 2,700,210 |
Consolidated Statements of Operations and Comprehensive Income (Loss) |  |  |  |  |  |  |  |  |  |  |  |
Cost of sales and other direct production costs |  |  | 389,040 |  |  |  | (6,377 | ) |  |  | 382,663 |
Depreciation, depletion and amortization |  |  | 157,130 |  |  |  | (9,020 | ) |  |  | 148,110 |
Total cost of sales |  |  | 546,170 |  |  |  | (15,397 | ) |  |  | 530,773 |
Gross profit |  |  | 145,703 |  |  |  | 15,397 |  |  |  | 161,100 |
Income from operations |  |  | 51,581 |  |  |  | 15,397 |  |  |  | 66,978 |
Loss before income and mining taxes |  |  | (16,655 | ) |  |  | 15,397 |  |  |  | (1,258 | )
Income and mining tax provision |  |  | (135 | ) |  |  | (8,064 | ) |  |  | (8,199 | )
Net loss |  |  | (16,790 | ) |  |  | 7,333 |  |  |  | (9,457 | )
Loss applicable to common shareholders |  |  | (17,342 | ) |  |  | 7,333 |  |  |  | (10,009 | )
Comprehensive loss |  |  | (12,369 | ) |  |  | 7,333 |  |  |  | (5,036 | )
Basic loss per common share after preferred dividends |  |  | (0.03 | ) |  |  | 0.01 |  |  |  | (0.02 | )
Diluted loss per common share after preferred dividends |  |  | (0.03 | ) |  |  | 0.01 |  |  |  | (0.02 | )
Consolidated Statements of Cash Flows |  |  |  |  |  |  |  |  |  |  |  |
Net loss |  |  | (16,790 | ) |  |  | 7,333 |  |  |  | (9,457 | )
Depreciation, depletion and amortization |  |  | 164,026 |  |  |  | (9,020 | ) |  |  | 155,006 |
Deferred income taxes |  |  | (5,505 | ) |  |  | 1,687 |  |  |  | (3,818 | )
Cash provided by operating activities |  |  | 180,793 |  |  |  | — |  |  |  | 180,793 |
|  | As of and for the Year Ended December 31, 2019 |
(in thousands, except per share amounts) |  | As Previously Reported |  |  | Adjustment |  |  | As Revised |
Consolidated Balance Sheet |  |  |  |  |  |  |  |  |  |  |  |
Inventories: Concentrates, doré, and stockpiled ore |  | $ | 30,364 |  |  | $ | (286 | ) |  | $ | 30,078 |
Total current assets |  |  | 179,124 |  |  |  | (286 | ) |  |  | 178,838 |
Properties, plants, equipment and mineral interests, net |  |  | 2,423,698 |  |  |  | 23,752 |  |  |  | 2,447,450 |
Total assets |  |  | 2,637,308 |  |  |  | 23,466 |  |  |  | 2,660,774 |
Deferred tax liability |  |  | 138,282 |  |  |  | 19,355 |  |  |  | 157,637 |
Total liabilities |  |  | 944,885 |  |  |  | 19,355 |  |  |  | 964,240 |
Accumulated deficit |  |  | (353,331 | ) |  |  | 4,111 |  |  |  | (349,220 | )
Total shareholders' equity |  |  | 1,692,423 |  |  |  | 4,111 |  |  |  | 1,696,534 |
Total liabilities and shareholders' equity |  |  | 2,637,308 |  |  |  | 23,466 |  |  |  | 2,660,774 |
Consolidated Statements of Operations and Comprehensive Income (Loss) |  |  |  |  |  |  |  |  |  |  |  |
Cost of sales and other direct production costs |  | $ | 450,349 |  |  | $ | (2,364 | ) |  | $ | 447,985 |
Depreciation, depletion and amortization |  |  | 199,518 |  |  |  | (8,067 | ) |  |  | 191,451 |
Total cost of sales |  |  | 649,867 |  |  |  | (10,431 | ) |  |  | 639,436 |
Gross profit |  |  | 23,399 |  |  |  | 10,431 |  |  |  | 33,830 |
Loss from operations |  |  | (57,109 | ) |  |  | 10,431 |  |  |  | (46,678 | )
Loss before income and mining taxes |  |  | (123,658 | ) |  |  | 10,431 |  |  |  | (113,227 | )
Income and mining tax benefit |  |  | 24,101 |  |  |  | (5,783 | ) |  |  | 18,318 |
Net loss |  |  | (99,557 | ) |  |  | 4,648 |  |  |  | (94,909 | )
Loss applicable to common shareholders |  |  | (100,109 | ) |  |  | 4,648 |  |  |  | (95,461 | )
Comprehensive loss |  |  | (94,398 | ) |  |  | 4,648 |  |  |  | (89,750 | )
Basic loss per common share after preferred dividends |  |  | (0.20 | ) |  |  | 0.01 |  |  |  | (0.19 | )
Diluted loss per common share after preferred dividends |  |  | (0.20 | ) |  |  | 0.01 |  |  |  | (0.19 | )
Consolidated Statements of Cash Flows |  |  |  |  |  |  |  |  |  |  |  |
Net loss |  |  | (99,557 | ) |  |  | 4,648 |  |  |  | (94,909 | )
Depreciation, depletion and amortization |  |  | 204,475 |  |  |  | (8,067 | ) |  |  | 196,408 |
Deferred income taxes |  |  | (33,387 | ) |  |  | 3,419 |  |  |  | (29,968 | )
Cash provided by operating activities |  |  | 120,866 |  |  |  | — |  |  |  | 120,866 |

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