Increased estimated 2016 silver production to
15.75 million ounces and estimated gold production to 233,000
ounces
Hecla Mining Company (NYSE:HL) today announced preliminary
silver and gold production results1 for the second quarter of
2016.
SECOND QUARTER 2016 HIGHLIGHTS (compared to Q2 2015)
- Silver production of 4,241,338 ounces,
a 71.2% increase.
- Gold production of 62,965 ounces, a
40.9% increase.
- Silver equivalent production of
11,813,131 ounces, a 38.4% increase.2
- Lead production increased 9.1% and zinc
production increased 3.5%.
- Increased silver production estimate
for 2016 to 15.75 million ounces, a 5% increase.
- Increased gold production estimate for
2016 to 233,000 ounces, a 13% increase.
- Increased silver equivalent production
estimate for 2016 to 44 million ounces, a 7% increase.3
- Cash, cash equivalents and short term
investments of approximately $157 million at 06/30/16, an increase
of about $23 million over 03/31/16.
“Our strategy of accelerating growth has silver and gold
production up 71% and 41% over last year just as prices are
starting to rise,” said Phillips S. Baker, Jr., Hecla’s President
and CEO. “With increased production and higher prices we are
generating free cash flow and have more cash than when we started
the year. Our increasing production outlook puts Hecla on track for
another record setting year of silver production.”
(1) See cautionary statement regarding preliminary
statements at the end of this release. (2) Silver equivalent
calculation based on the following prices: $14.83 for Ag, $1,181
for Au, $0.79 for Pb, and $0.76 for Zn. (3) Future expectations of
silver equivalent based on the following prices: Au $1,150/oz, Ag
$15/oz, Zn $0.75/lb, Pb $0.80/lb.
Greens Creek
At the Greens Creek mine, 2,117,024 ounces of silver were
produced in the second quarter of 2016, a 14.1% increase over the
1,856,125 ounces produced in the prior year period, and 11,528
ounces of gold were produced, 16.2% lower than the 13,753 ounces in
the prior year period. Increased silver production resulted from
higher grades, as well as slightly higher production. Silver
production is now estimated to be 8.3 million ounces and gold
production slightly higher at 53,000 ounces for 2016. The mill
operated at an average of 2,235 tons per day (tpd) in the
second quarter.
Lucky Friday
At the Lucky Friday mine, 857,542 ounces of silver were produced
in the second quarter, 39.8% higher than the 613,474 ounces
produced in the prior year period. The increase in silver
production was due to higher grades in the current period and
ventilation repairs made in the prior year period. Estimated silver
production remains at 3.1 million ounces for 2016. The mill
operated at an average of 745 tpd in the second quarter.
The focus of the #4 Shaft Project, having reached its final
depth of 8,600 feet below surface in early May, is on equipping the
shaft with steel sets, guides, skip loading facilities and
electrical infrastructure, with the goal of the shaft being fully
operational in the fourth quarter of this year, and to beginning
the lateral development necessary to provide access to higher-grade
material.
Casa Berardi
At the Casa Berardi mine, 41,954 ounces of gold were produced in
the second quarter, 35.6% higher than the 30,939 ounces produced in
the prior year period. The higher gold production was principally
the result of higher grades. Gold production is now estimated to be
145,000 ounces for 2016 (surface and underground). The mill
operated at an average of 2,398 tpd in the second quarter.
The East Mine Crown Pillar (EMCP) pit excavation has exposed the
vein closer to surface than expected; processing of EMCP ore is
estimated to begin in the third quarter. The EMCP pit is expected
to add 5,000 ounces of gold production in 2016.
San Sebastian
At the San Sebastian mine, 1,258,104 ounces of silver and 9,483
ounces of gold were produced in the second quarter. Production of
both silver and gold was strong in the second quarter due to the
prevalence of high-grade material from the East Francine Pit.
Silver production is now estimated to be 4.35 million ounces, and
gold production to be 35,000 ounces for 2016. The mill operated at
an average of 411 tpd in the second quarter.
PRODUCTION SUMMARY
Second Quarter Ended June 30,
2016 June 30, 2015
PRODUCTION
Increase/(Decrease)
Silver 4,241,338 oz.
2,477,150 oz.
71.2
% Gold 62,965 oz. 44,692 oz.
40.9
% Lead 10,391 tons 9,525 tons
9.1
% Zinc 18,132 tons 17,515 tons
3.5
% Greens Creek (Silver) 2,117,024 oz.
1,856,125 oz.
14.1 % Greens Creek (Gold)
11,528 oz. 13,753 oz.
(16.2
%)
Lucky Friday 857,542 silver oz. 613,474 silver oz.
39.8 % Casa Berardi 41,954 gold oz.
30,939 gold oz.
35.6 % San Sebastian (Silver)
1,258,104 oz.1 --
-- San Sebastian
(Gold)
9,483 oz.1
--
-- (1) San Sebastian produced its first doré on
December 22, 2015.
Hecla expects to report second quarter 2016 financial results on
August 4, 2016.
ABOUT HECLA
Founded in 1891, Hecla Mining Company (NYSE:HL) is a leading
low-cost U.S. silver producer with operating mines in Alaska, Idaho
and Mexico, and is a growing gold producer with an operating mine
in Quebec, Canada. The Company also has exploration and
pre-development properties in six world-class silver and gold
mining districts in the U.S., Canada and Mexico, and an exploration
office and investments in early-stage silver exploration projects
in Canada.
Cautionary Statements Regarding Preliminary Results
All measures of the Company's second quarter 2016 operating
results contained in this news release, including inventory, are
preliminary and reflect the Company’s expected second quarter 2016
results as of the date of this news release. Actual reported second
quarter results are subject to management's final review as well as
review by the Company's independent registered public accounting
firm and may vary significantly from those expectations because of
a number of factors, including, without limitation, additional or
revised information and changes in accounting standards or policies
or in how those standards are applied.
Cautionary Statements Regarding Forward Looking Statements
including Outlook
Statements made or information provided in this news release
that are not historical facts are "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act
of 1995 and "forward-looking information" within the meaning of
Canadian securities laws. Words such as “may”, “will”, “should”,
“expects”, “intends”, “projects”, “believes”, “estimates”,
“targets”, “anticipates” and similar expressions are used to
identify these forward-looking statements. Such forward-looking
statements or forward-looking information include statements or
information regarding estimates of silver production for the second
quarter of 2016 on a consolidated basis and at each of the Greens
Creek, Lucky Friday and San Sebastian mines, second quarter 2016
gold production at Casa Berardi, as well as cash position and
expectations for 2016 silver and gold production. The material
factors or assumptions used to develop such forward-looking
statements or forward-looking information include that the
Company’s plans for development and production will proceed as
expected and will not require revision as a result of risks or
uncertainties, whether known, unknown or unanticipated, to which
the Company’s operations are subject.
Forward-looking statements involve a number of risks and
uncertainties that could cause actual results to differ materially
from those projected, anticipated, expected or implied. These risks
and uncertainties include, but are not limited to, metals price
volatility, volatility of metals production and costs, litigation,
regulatory and environmental risks, operating risks, project
development risks, political risks, labor issues, ability to raise
financing and exploration risks and results. Refer to the Company's
Form 10K and 10-Q reports for a more detailed discussion of
factors that may impact expected future results. The Company
undertakes no obligation and has no intention of updating
forward-looking statements other than as may be required by
law.
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version on businesswire.com: http://www.businesswire.com/news/home/20160711005422/en/
Hecla Mining CompanyMike WesterlundVice President - Investor
Relations800-HECLA91 (800-432-5291)Email:
hmc-info@hecla-mining.comWebsite: www.hecla-mining.com
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