TEN-YEAR FINANCIAL REvIEW (1) Total cash cost per ounce of silver represents a non-U.S. Generally Accepted Accounting Principles (GAAP) measurement. A reconciliation of total cash cost to cost of sales and other  direct production costs and depreciation, depletion and amortization (GAAP) for the years ended 2012, 2011 and 2010 can be found in the cash cost per ounce reconciliation section in the  Company’s Form 10-K, on pages 27 and 28. Various accidents and other events resulted in temporary suspensions of production at the Lucky Friday unit during 2011 and throughout 2012.  Care-and-maintenance, mine rehabilitation, investigation, and other costs incurred during the suspension periods not related to production have been excluded from total cash costs.   Amounts for the Year Ended December 31 Operating results (dollars in thousands, except per share and per ounce amounts)  2012 2011 Sales of products $ 321,143 $ 477,634 Gross profit  143,516 264,995 Provisions for closed operations and asset write-downs  4,652  9,747 Net income (loss) 14,954 151,164 Common Stock Dividends $ 17,121 $ 5,592 Mandatory Convertible Preferred stock dividends – – Series B Preferred stock dividends  (552)  (552) Total preferred stock dividends (552) (552) Net income (loss) applicable to common shareholders 14,402  150,612 Basic income (loss) per common share  0.05 0.54  Exploration and pre-development expenses 49,738 31,405 Balance sheet  Current assets $ 282,898  $ 362,744 Total assets  1,378,290  1,396,090 Working capital (deficit) 187,911  255,428 Long-term debt and capital leases 11,935 6,265  Common stock 71,499  71,420 Preferred stock 39  39 Total shareholders’ equity 1,137,951  1,140,113 cash & cash FlOw  Net cash provided by (used in) operating activities  $  69,016 $  69,891  Net cash provided by (used in) investing and financing activities  (144,495)  (87,034) Cash and cash equivalents at end of year 190,984 266,463  Short-term investments at end of year  –  –  cOmmOn share Data  Number of shares outstanding at end of year  285,210  285,290 Weighted average number of shares outstanding for the year – basic  285,375  280,956 High per-share price during the year (closing)  $  6.94  $  11.24 Low per-share price during the year (closing)  $  3.70  $  5.03 OperatiOnal Data  Silver production (oz.)  6,394,235 9,483,676 Gold production (oz.) 55,496 56,818 Lead production (tons) 21,074 39,150 Zinc production (tons) 64,249 73,355 Total cash cost per ounce – silver  (1) $ 2.70  $ 1.15 Average London PM Fix gold price per ounce  $  1,669.00  $  1,569.00 Average London PM Fix silver price per ounce  $  31.15 $  35.11 Other Data  Market capitalization 1,662,773  1,492,066 Financial Ratios:  Current ratio 2.98:1 3.38:1 Total liabilities to equity 0.2:1 0.2:1 Book value per common share $ 3.96 $ 3.97