HECLA MINING COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands)  Year Ended December 31,  2012 2011 2010 Operating activities:  Net income $ 14,954 $ 151,164 $ 48,983 Non-cash elements included in net income: Depreciation, depletion and amortization  50,113  47,348  60,235  Net gain on sale of investments  —  (611)  (588) Loss on impairment of investments  1,171  140  739  Loss on disposition of properties, plants, equipment and mineral interests  275  —  80  Provision for reclamation and closure costs 1,106  7,004  196,262 Deferred income taxes  546 76,944 (141,707) Stock compensation 3,101 2,073 3,446 Amortization of loan origination fees  460  598  621 Amortization of intangible asset — — 1,380 (Gain) loss on derivative contracts  29,627  (53,545)  20,795 Other non-cash items 1,765 1,209 (495) Change in assets and liabilities:  Accounts receivable (4,713) 16,531 (9,404) Inventories (2,442) (7,064) 2,335 Other current and non-current assets  610  2,164  3,279 Accounts payable and accrued liabilities 4,927  1,466  10,896 Accrued payroll and related benefits  (2,118)  2,090  (3,376) Accrued taxes 1,967 (5,688) 9,802 Accrued reclamation and closure costs and other non-current liabilities  (32,333)  (171,932)  (5,474) Net cash provided by operating activities  69,016  69,891  197,809 Investing activities:  Additions to properties, plants, equipment and mineral interests (113,096)  (87,546)  (67,414) Proceeds from sale of investments  —  1,366  1,138 Proceeds from disposition of properties, plants and equipment  886  113  29 Redemptions of restricted cash and investment balances  —  9,448  1,459 Increases in restricted cash and investment balances  (5)  (3,200)  — Purchases of investments  (5,823)  —  — Net cash used by investing activities  (118,038)  (79,819)  (64,788) Financing activities:  Proceeds from exercise of warrants and stock options  —  5,786  53,093 Dividends paid to common shareholders  (17,121)  (5,592)  — Dividend paid to preferred shareholders  (552)  (3,822)  (4,513) Loan origination fees paid (750)  (180)  (200) Acquisition of treasury shares  (2,144)  (469)  (693) Repayments of capital leases (5,890)  (2,938)  (1,780) Net cash provided by (used in) financing activities  (26,457)  (7,215)  45,907 Net increase (decrease) in cash and cash equivalents  (75,479)  (17,143)  178,928 Cash and cash equivalents at beginning of year 266,463  283,606  104,678 Cash and cash equivalents at end of year $ 190,984  $ 266,463  $ 283,606 Supplemental disclosure of cash flow information: Cash paid during year for: Interest $ 1,968 $ 1,683 $ 584 Income tax payments $ 3 $ 17,874 $ 11,075 Significant non-cash investing and financing activities:  Stock issued for acquisition of assets  $  —  $  33,831  $  — Capital leases acquired  $ 13,119 $ 6,935 $ 3,212 Accounts payable change relating to capital additions  $  3,727  $  8,687  $  3,488 Preferred stock dividends paid in common stock  $  —  $  —  $  22,891 See Notes 2 and 9 for additional non-cash investing and financing activities. The accompanying notes are an integral part of the consolidated financial statements. [ HL:10-K ] F-5