Cash, cash equivalents and short-term
investments increased $33 million this quarter
Hecla Mining Company (NYSE:HL) today announced preliminary
silver and gold production results¹ for the third quarter of
2016.
THIRD QUARTER 2016 HIGHLIGHTS (compared to Q3 2015)
- Silver production of 4,316,664 ounces,
a 67% increase.
- Gold production of 52,126 ounces, a 20%
increase.
- Silver equivalent production of 10.3
million ounces, a 17% increase.2
- Lead production increased 14% and zinc
production decreased 15%.
- Increased silver production estimate
for 2016 to 16.25 million ounces, from 15.75.
- Cash, cash equivalents and short-term
investments of approximately $192 million at 09/30/16, an increase
of about $33 million for the quarter. Includes $16 million of
insurance proceeds for the Troy Mine reclamation.
“We continue to see substantial free cash flow generation, with
higher prices and silver and gold production up 67% and 20%,
respectively, over last year,” said Phillips S. Baker, Jr., Hecla’s
President and CEO. “The strong performance from all our mines
enables us to increase our silver production estimate to 16.25
million ounces for 2016, the highest silver production in our
125-year history.”
(1) See cautionary statement regarding preliminary statements at
the end of this release. (2) Silver equivalent calculation based on
the following prices: $19.62 for Ag, $1,335 for Au, $0.85 for Pb,
and $1.02 for Zn
Greens Creek
At the Greens Creek mine, 2,445,328 ounces of silver were
produced in the third quarter of 2016, a 23% increase over the
1,992,037 ounces produced in the prior year period, and 11,988
ounces of gold were produced, 17% lower than the 14,376 ounces in
the prior year period. Increased silver production resulted from
higher grades and lower gold production from lower grades. The mill
operated at an average of 2,201 tons per day (tpd) in the
third quarter. Estimated silver production is increased from prior
estimates to 8.5 million ounces, and gold production remains
unchanged at 53,000 ounces for 2016.
Lucky Friday
At the Lucky Friday mine, 887,365 ounces of silver were produced
in the third quarter, 50% higher than the 592,243 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. The mill operated at an average of 809
tpd in the third quarter. Estimated silver production is increased
from prior estimates to 3.4 million ounces for 2016.
The focus of the #4 Shaft Project, having reached its final
depth of 9,600 feet below surface in early May, is on equipping the
shaft with steel sets, guides, skip loading facilities and
electrical infrastructure. The work is proceeding as planned, with
the goal of having an operational shaft in the fourth quarter of
this year.
Casa Berardi
At the Casa Berardi mine, 31,949 ounces of gold were produced in
the third quarter, 9% higher than the 29,259 ounces produced in the
prior year period. The higher gold production was principally the
result of higher mill throughput due to the addition of surface
production from the East Mine Crown Pillar (EMCP) pit. The mill
operated at an average of 2,805 tpd in the third quarter. Estimated
gold production remains unchanged from prior estimates at 145,000
ounces for 2016, including 5,000 ounces from the EMCP pit.
San Sebastian
At the San Sebastian mine, 975,610 ounces of silver and 8,189
ounces of gold were produced in the third quarter. Production of
both silver and gold continued to be strong in the third quarter,
in spite of a smaller portion of production coming from the
higher-grade East Francine Pit than in the first half of the year.
The mill operated at an average of 437 tpd in the third quarter.
Estimated production for 2016 remains unchanged from prior
estimates at 4.35 million ounces of silver and 35,000 ounces of
gold.
PRODUCTION SUMMARY
Third Quarter Ended
Nine Months Ended September 30,
September 30,
September 30,
September 30,
2016 2015
2016 2015
PRODUCTION Increase
Increase
(Decrease)
(Decrease) Silver 4,316,664
oz. 2,591,546 oz.
67% 13,200,766 oz. 7,947,293
oz.
66% Gold 52,126 oz. 43,635 oz.
20%
170,780 oz. 128,977 oz.
32% Lead 10,411
tons 9,123 tons
14% 31,840 tons 28,526 tons
12% Zinc 14,824 tons 17,435 tons
(15)%
50,321 tons 51,037 tons
(1)% Greens Creek
(Silver) 2,445,328 oz. 1,992,037 oz.
23%
7,020,688 oz. 5,884,128 oz.
19% Greens Creek
(Gold) 11,988 oz. 14,376 oz.
(17)% 39,497
oz. 43,368 oz.
(9)% Lucky Friday (Silver)
887,365 oz. 592,243 oz.
50% 2,721,991 oz.
2,042,436 oz.
33% Casa Berardi (Gold) 31,949
oz. 29,259 oz.
9% 104,282 oz. 85,609 oz.
22% San Sebastian (Silver) 975,610 oz.1
--
-- 3,434,052 oz. --
-- San Sebastian
(Gold) 8,189 oz. 1 --
-- 27,000 oz.
--
-- (1) San Sebastian produced its first doré on
December 22, 2015.
Hecla expects to report third quarter 2016 financial results on
November 8, 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 third quarter 2016 operating
results contained in this news release, including inventory, are
preliminary and reflect the Company’s expected third quarter 2016
results as of the date of this news release. Actual reported third
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 third
quarter of 2016 on a consolidated basis and at each of the Greens
Creek, Lucky Friday and San Sebastian mines, third 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/20161018005548/en/
Hecla Mining CompanyMike Westerlund, 800-HECLA91
(800-432-5291)Vice President - Investor
Relationshmc-info@hecla-mining.comwww.hecla-mining.com
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