various metals price scenarios. Our estimates of undiscounted cash flows for our long-lived assets also include an estimate of the market value of the  exploration potential beyond the current operating plans. There were no events or changes in circumstances that caused us to evaluate the carrying  values of our long-lived assets as of December 31, 2012. However, if the prices of silver, gold, zinc and lead decline for an extended period of time, if  we fail to control production costs, if regulatory issues increase costs or decrease production, or if we do not realize the mineable ore reserves or  exploration potential at our mining properties, we may be required to evaluate the carrying values of our long-lived assets and recognize asset write- downs in the future. In addition, the perceived market value of the exploration potential of our properties is dependent upon prevailing metals prices  as well as our ability to discover economic ore. A decline in metals prices for an extended period of time or our inability to convert exploration  potential to reserves could significantly reduce our estimations of the value of the exploration potential at our properties and result in asset write- downs. Although we reported net income for the years ended December 31, 2012, 2011, 2010 and 2009 of $15.0 million, $151.2 million, $49.0 million and  $67.8 million, respectively, we reported a net loss for the year ended December 31, 2008 of $66.6 million. A comparison of operating results over the  past three years can be found in  Results of Operations  in  Management’s Discussion and Analysis of Financial Condition and Results of Operations. Many of the factors affecting our operating results are beyond our control, including, but not limited to, the volatility of metals prices; smelter terms;  rock and soil conditions; seismic events; availability of hydroelectric power; diesel fuel prices; interest rates; global or regional political or economic  policies; inflation; availability and cost of labor; economic developments and crises; governmental regulations; continuity of ore bodies; ore grades;  recoveries; and speculation, purchases and sales by central banks and other holders and producers of gold and silver in response to these factors. We  cannot foresee whether our operations will continue to generate sufficient revenue in order for us to generate net cash from operating activities. There  can be no assurance that we will not experience net losses in the future. We periodically enter into risk management activities, such as financially-settled forward sales contracts and commodity put and call option  contracts, to manage the prices received on the metals we produce. Such activities are utilized to attempt to insulate our operating results from  changes in prices for those metals. However, such activities may prevent us from realizing possible revenues in the event that the market price of a  metal exceeds the price stated in a forward sale or call option contract. In addition, we may experience losses if a counterparty fails to purchase under  a contract when the contract price exceeds the spot price of a commodity. We utilize financially settled forward contract programs to manage the exposure to changes in lead and zinc prices contained in our concentrate  shipments between the time of sale and final settlement, and to manage the exposure to changes in the prices of lead and zinc contained in our  forecasted future concentrate shipments. See  Note 10  of  Notes to Consolidated Financial Statements  for more information on these base metals  forward contract programs. We have had losses that could reoccur in the future. Commodity risk management activities could expose us to losses. The financial terms of settlement of the Coeur d’Alene Basin environmental litigation and other claims may materially impact our cash  resources and our access to additional financing. On September 8, 2011, a Consent Decree (the “Consent Decree”) settling environmental litigation and related claims involving Hecla Limited  pertaining to historic releases of mining wastes in the Coeur d’Alene Basin was approved and entered by the U.S. District Court in Idaho. The Consent  Decree resolved all existing claims of the United States, the Coeur d’Alene Indian Tribe, and the State of Idaho (“Plaintiffs”) against Hecla Limited and  its affiliates under the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (CERCLA) and certain other statutes for past  response costs, future environmental remediation costs, and natural resource damages related to historic releases of mining wastes in the Coeur  d’Alene River Basin, as well as all remaining obligations of Hecla Limited with respect to the Bunker Hill Superfund Site. In addition to the  approximately $194 million already paid under the Consent Decree in 2011 and 2012, Hecla Limited remains obligated under the Consent Decree to  make the following payments: If additional warrants are not exercised, the requirement to pay $70.5 million (excluding interest) in cash over the next approximately two years  would cause us to use a significant portion of either our cash currently on hand, or future cash resources. Our cash on hand at December 31, 2012 was  $191.0 million; however, there can be no assurance that we will have the cash on hand to meet these obligations. Financial terms of settlement also require that Hecla Mining Company or Hecla Limited post third party surety in some form to secure the remaining  payments. Obtaining surety causes us to incur costs, and also to utilize credit capacity which could otherwise be used to fund other areas of our  business, including operations and capital expenditures. Moreover, there is no guarantee that we will be able maintain such surety, in which case we  could be in default of the Consent Decree, which could have a material adverse effect on Hecla Limited’s or our results from operations or financial  position. More information about the terms of settlement is set forth in  Note 7  of  Notes to Consolidated Financial Statements . Our business activities are highly dependent on the costs of commodities and services such as fuel, steel, cement and electricity. The recent prices  for such commodities have been volatile and may increase our costs of production and development. A material increase in costs at any of our  operating properties could have a significant effect on our profitability. For additional discussion, see  Results of Operations  in  Management’s  Discussion and Analysis of Financial Condition  and  Results of Operations.  Preparing financial statements requires management to make estimates and assumptions that affect the reported amounts and related disclosure  y $15 million of cash by October 8, 2013; and y approximately $55.5 million by August 2014, as quarterly payments of the proceeds from the exercise of any outstanding Series 1 and Series 3  warrants (which have an exercise price of between $2.41 and $2.52 per share) during the quarter, with the remaining balance, if any, due in  August 2014. Our profitability could be affected by the prices of other commodities and services. Our accounting and other estimates may be imprecise. [ HL:10-K ] 5