Recent accidents and other events at our Lucky Friday mine could have additional adverse consequences to us. Our operations may be adversely affected by risks and hazards associated with the mining industry that may not be fully covered by insurance. Our development of new ore bodies and other capital costs may be higher and provide less return than we estimated. [ HL:10-K ] 7  Our ability to sustain or increase our current level of metals production partly depends on our ability to develop new orebodies and/or expand  existing mining operations. Before we can begin a development project, we must first determine whether it is economically feasible to do so. This  determination is based on estimates of several factors, including: Capitalized development projects may cost more and provide less return than we estimate. If we are unable to realize a return on these investments,  we may incur a related asset write-down that could adversely affect our financial results or condition. We maintain insurance to protect against losses that may result from some of these risks, such as property loss and business interruption, in amounts  we believe to be reasonably consistent with our historical experience, industry practice and circumstances surrounding each identified risk. Such  insurance, however, contains exclusions and limitations on coverage, particularly with respect to environmental liability and political risk. We have  received some payment for business interruption insurance claims related to the temporary suspension of operations at the Lucky Friday mine and  continue to seek further reimbursement (see  Mining accidents or other adverse events at an operation could decrease our anticipated production ).  There can be no assurance that claims would be paid under such insurance policies in connection with a particular event. Insurance specific to  environmental risks is generally either unavailable or, we believe, too expensive for us, and we therefore do not maintain environmental insurance.  Occurrence of events for which we are not insured may have an adverse effect on our business. Such risks could result in: Our business is capital intensive, requiring ongoing capital investment for the replacement, modernization or expansion of equipment and facilities.  Our mining and milling operations are subject to risks of process upsets and equipment malfunctions. Equipment and supplies may from time to time  be unavailable on a timely basis. Our business is subject to a number of other risks and hazards including: Hecla Limited may face additional enforcement actions, as well as additional orders from MSHA, as a result of MSHA’s inspections and investigations  of events at our Lucky Friday mine, including the April 2011 fatal ground fall accident, the rock burst incident in December 2011, and the order closing  the Silver Shaft for the removal of built-up cementitious material. Hecla Limited could also face additional penalties (including monetary penalties)  from MSHA or other governmental agencies relating to these incidents and any other orders or citations received by Hecla Limited. In addition, MSHA  periodically notifies certain mines that a potential pattern of violations (“PPOV”) may exist based upon an initial statistical screening of violation history  and pattern criteria review by MSHA. Receipt of notice of a PPOV typically triggers an undertaking by a mine to implement corrective actions, and if  certain criteria are not met, MSHA could subsequently issue a Notice of Pattern of Violations (“NPOV”). Receipt of a NPOV would, among other  things, impose certain onerous conditions on the mine, including the requirement to pass an inspection in which no significant and substantial  violations of a mandatory health or safety standard are found before termination of the NPOV. In November 2012, the Lucky Friday mine received a  PPOV notice from MSHA. The notice indicated that because the Lucky Friday was non-producing at the time, MSHA will postpone action on the  matter until further notice. Subsequent to receipt of the PPOV notice, MSHA rules changed and effective as of March 25, 2013, the PPOV notice  process will be eliminated and instead MSHA will have the discretion to issue a NPOV immediately. It is unclear if these new rules will apply to the  Lucky Friday mine, but if they do, it could materially impact our operations. Finally, it is possible that Hecla Limited could face litigation relating to the  2011 incidents at the Lucky Friday mine in addition to the purported class action and related derivative lawsuits filed against us in 2012. We may not  resolve these claims favorably, and each one of the foregoing possibilities could have a material adverse impact on our cash flows, results of operations  or financial condition. See  Note 7  of  Notes to Consolidated Financial Statements . y environmental hazards; y unusual or unexpected geologic formations; y rock bursts and ground falls; y seismic activity; y underground fires or floods; y explosive rock failures; y unanticipated hydrologic conditions, including flooding and periodic interruptions due to inclement or hazardous weather conditions;  y political and country risks; y civil unrest or terrorism; y industrial accidents; y labor disputes or strikes; and y our operating mines have tailing ponds which could fail or leak as a result of seismic activity or for other reasons. y personal injury or fatalities; y damage to or destruction of mineral properties or producing facilities; y environmental damage; y delays in exploration, development or mining; y monetary losses; y legal liability; and y temporary or permanent closure of facilities. y ore reserves; y expected recovery rates of metals from the ore; y future metals prices; y facility and equipment costs; y availability of adequate staffing; y availability of affordable sources of power and adequacy of water supply; y exploration and drilling success;