In addition, in our filings with the SEC, we are only allowed to disclose mineral deposits that we can economically and legally extract or produce. Investors are cautioned about our use of such terms as measured indicated and inferred resources, and we urge you to consider the disclosures that we make in our SEC filings.With that, I will pass the line over to Phil Baker, Hecla’s President and CEO. Phil? Phil Baker Thanks, Mélanie. Hello, everyone. I’m glad you could all join us today. Jim and Larry, and I are here at the Zinc Conference, and so we’re speaking from a conference room, and there is a little bit of an echo and we apologize for that. I’m going to provide a brief overview and then Larry will provide additional details on the work plan at Lucky Friday, and also will talk about Greens Creek’s capital program. Jim’s going to then speak about the financial results and Dean will provide an update on reserves, resources, exploration in the predevelopment initiative. I’m going to close out the call with our 2012 guidance and then we’ll take questions. Now for the year end fourth quarter results please see slide four. First financially, it was an excellent year and the fourth quarter had very solid financial results. We had record 2011 sales and gross profits with $478 million and $265 million, respectively. While silver production was less than 2010, the 9.5 million ounces was in line with guidance, despite the challenges faced at the Lucky Friday mine over the last year. Costs were $1.15 per ounce which remains among the lowest in the world and realized silver prices average $35 per ounce almost all of the margin. Cash from operating activities were $70 million or $238 million on a pro forma basis prior to paying the $168 million for the Basin environmental settlement. Our cash position at the end of the year was $266 million.
Now moving to slide five, we provide some additional 2011 highlights. Hecla had significant challenges but despite this, we have not only achieved excellent financial results but have number of other accomplishments.Noteworthy, are the silver reserves and resources have increased for the six year in a row by 4% and 13% respectively to 148 million and 281 million ounces, also the largest in Hecla’s history. We executed a $102 million capital expenditure program at our operations in 2011 and significantly advanced our predevelopment initiatives far more than what we had anticipated at the beginning of the year. We finalized and settled the long standing Coeur d’Alene Basin litigation. We acquired the minority interest in the San Juan Silver property which is now a 100% own for the Amethyst, Equity and Bulldog veins, and we introduced a new common stock dividend returning capital to shareholders. And then of course, subsequent to the at the end of the year we had this the incident with the Lucky Friday where we had the shaft shutdown for this clean down, but we have now received approval from MSHA to remove the loose material from the shaft which brings me to slide six. And I wanted to have us cover upfront the Lucky Friday given the all of the announcements that we had on that over the course for the last month. MSHA, you’ll recall, began a special impact inspection back in December and an order was issued to remove the loose material from the silver shaft and we are working with MSHA in order to progress as safely and quickly as possible to bring the Lucky Friday mine back into production. Read the rest of this transcript for free on seekingalpha.com