For Period Ended: March 31, 2017
Hecla Mining Company (NYSE:HL) (Hecla or the Company) today
announced first quarter financial and operating results.
FIRST QUARTER 2017 HIGHLIGHTS
- Net income applicable to common
stockholders of $26.7 million, or $0.07 per basic share.
- Adjusted net income applicable to
common stockholders of $16.7 million, or $0.04 per basic
share.1
- Sales of $142.5 million.
- Cash provided by operating activities
of $38.3 million.
- Adjusted EBITDA of $53.9 million and
net debt/adjusted EBITDA (last 12 months) of 1.1x.2,3
- Free cash flow of $16.6 million.4
- Cost of sales and other direct
production costs and depreciation, depletion and amortization
("cost of sales") of $107.6 million.
- Silver cash cost, after by-product
credits, of $0.84 per ounce, the lowest in over five years.5
- All in sustaining cost (AISC), after
by-product credits, of $7.60 per silver ounce.6
- Cash and cash equivalents and
short-term investments of $213.3 million.
"We have started 2017 with strong sales, net income and free
cash flow, and our silver margins remain among the top in the
industry, driving an increase in cash balances and strengthening
our balance sheet," said Phillips S. Baker, Jr., President and CEO.
"While the increase of cost of sales over last year reflected the
higher throughput from the Casa Berardi open pit operations, our
cash cost, after by-product credits, declined 73% to $0.84 per
silver ounce and our AISC, after by-product credits, declined 24%
to $7.60 per silver ounce. For the remainder of 2017, our focus is
on growing reserves and resources, investing in new technologies
that will increase productivity, mine life and margins, and
advancing the underground at San Sebastian as well as optimizing
the open pits at Casa Berardi. In addition, we are focused on
working to end the strike at Lucky Friday. In the meantime, we are
suspending our Lucky Friday and Company-wide estimates for silver
production and cost, until it is resolved."
FINANCIAL OVERVIEW
First
Quarter Ended HIGHLIGHTS March
31, 2017 March 31, 2016
FINANCIAL
DATA
Sales (000)
$ 142,544 $ 131,017
Gross profit (000)
$ 34,916 $ 30,822 Income (loss)
applicable to common stockholders (000)
$ 26,696 $
(756 ) Basic and diluted income per common share
$
0.07 $ — Net income (loss) (000)
$ 26,834 $
(618 ) Cash provided by operating activities (000)
$
38,285 $ 18,748
Net income applicable to common stockholders for the first
quarter of $26.7 million, or $0.07 per share, an increase of $27.5
million from the first quarter of 2016, was impacted by the
following factors:
- Sales were 9% higher despite lower
silver production, mainly due to higher average metals prices.
- Tax benefit of $29.1 million, primarily
related to the impact of receiving IRS approval to accelerate the
timing of deductions for the Lucky Friday #4 Shaft development
costs, compared to an income tax provision of $1.7 million in the
first quarter of 2016.
- Net foreign exchange loss of $2.3
million compared to a loss of $8.2 million in the first quarter of
2016 due primarily to the impact of a stronger Canadian dollar
(CAD) on deferred tax liabilities.
- Interest expense, net of amount
capitalized, of $8.5 million in the first quarter of 2017,
increased over the $5.71 million recognized in first quarter of
2016, due to lower levels of capitalized interest resulting from
completion of the #4 Shaft.
- A derivative loss of $7.8 million,
mostly unrealized, recognized on metal derivative contract activity
in the first quarter of 2017 due to higher base metals prices at
quarter-end, as compared to no gain or loss recognized in the first
quarter of 2016.
- An increase of $2.4 million in
exploration and pre-development expenditures over the first quarter
of 2016.
Operating cash flow of $38.3 million increased 104% over the
first quarter of 2016 principally due to the timing of (i) sales at
Greens Creek and Casa Berardi and (ii) payment of incentive
compensation.
The adjusted EBITDA of $53.9 million increased 16% over the
first quarter of 2016 mainly due to higher metals prices.
Capital expenditures (excluding capitalized interest) totaled
$23.3 million for the first quarter of 2017 compared to $34.7
million in the prior year period, with the decrease due mainly to
completion of the #4 Shaft. Expenditures at Casa Berardi, Greens
Creek, Lucky Friday and San Sebastian were $12.4 million, $5.2
million, $4.0 million, and $1.7 million respectively.
Metals Prices
Average realized silver prices in the first quarter of 2017 were
$17.90 per ounce, 20% higher than the $14.93 price realized in the
first quarter of 2016. Realized gold, lead and zinc prices also
increased 3%, 36%, and 59%, respectively.
Base Metals Forward Sales Contracts
The following table summarizes the quantities of base metals
committed under financially settled forward sales contracts at
March 31, 2017:
Pounds Under Contract
(in thousands)
Average Price per Pound Zinc
Lead Zinc
Lead Contracts on forecasted sales
2017 settlements 17,527 11,133 $ 1.23 $ 1.05
2018 settlements 20,613 9,700 $ 1.23 $ 1.06 2019 settlements 1,102
— $ 1.21 $ —
The contracts represent 15% of the forecasted payable zinc
production for the three-year period 2017-2019 at an average price
of $1.23 per pound and 10% of the forecasted payable lead
production for the three-year period 2017-2019 at an average price
of $1.06 per pound.
OPERATIONS OVERVIEW
The following table provides the production summary on a
consolidated basis for the quarters ended March 31, 2017 and
2016:
First Quarter Ended
March 31, 2017 March 31, 2016
PRODUCTION SUMMARY Silver - Ounces produced
3,369,427
4,642,704 Payable ounces sold
2,869,114
3,795,815 Gold - Ounces produced
56,113 55,688 Payable
ounces sold
51,371 46,260 Lead - Tons produced
8,636
11,038 Payable tons sold
6,426 8,751 Zinc - Tons produced
15,537 17,364 Payable tons sold
11,847 14,342
The following table provides a summary of the final production,
cost of sales, cash cost, after by-product credits, per silver and
gold ounce, and AISC, after by-product credits, per silver and gold
ounce, for the quarters ended March 31, 2017 and 2016.
Quarter
Ended
March 31
Greens Creek
Lucky
Friday
Casa Berardi
San Sebastian
Silver Gold
Silver Gold Silver
Gold Silver
Silver Gold Production (ounces)
2017 3,369,427
56,113
1,929,297 14,022
680,782
35,807 8,545
750,803
6,284 2016
4,642,704
55,688
2,458,276
15,981
977,084 30,378
7,005 1,200,339
9,329
Increase/(decrease)
(27 ) % 1 %
(22 ) % (12
) % (30 ) %
18 % 22 %
(37 ) % (33
) %
Cost of sales and other direct
production costs and depreciation, depletion and amortization
(000)
2017 $ 65,162
$ 42,466
$ 43,996
N/A $
14,543 $ 42,466
N/A
$ 6,623 N/A
2016 $ 71,036
$ 29,159 $
44,854 N/A
$ 18,505 $ 29,159
N/A $ 7,677
N/A
Increase/(decrease)
(8 ) % 46
% (2 ) % N/A
(21 ) % 46
% N/A (14 ) %
N/A
Cash costs, after by-product credits,
per silver or gold ounce5,7
2017 $ 0.84
$ 886
$ 0.65
N/A $ 5.93
$ 886
N/A $ (3.27
) N/A
2016 $ 3.16
$ 781 $ 3.96
N/A $ 9.05
$ 781 N/A
$ (3.26 ) N/A
Increase/(decrease)
(73 ) % 13 %
(84 ) % N/A
(34 ) % 13 % N/A
(0.31 ) % N/A
AISC, after by-product credits per silver or gold
ounce6 2017 $
7.60 $
1,256 $ 3.86
N/A
$ 12.06 $
1,256 N/A
$ 0.43
N/A 2016 $ 10.04
$ 1,322
$ 7.03 N/A
$ 21.78 $ 1,322
N/A $ (2.28 )
N/A
Increase/(decrease)
(24 ) % (5
) % (45 ) % N/A
(45 ) % (5 ) %
N/A 119 %
N/A
Greens Creek Mine - Alaska
At the Greens Creek mine, 1.9 million ounces of silver and
14,022 ounces of gold were produced in the first quarter, compared
to 2.5 million ounces and 15,981 ounces, respectively, in the first
quarter of 2016. Lower silver and gold production was expected and
was principally due to lower grades than the first quarter of 2016.
The mill operated at an average of 2,190 tons per day (tpd) in the
first quarter, in-line with the first quarter of 2016.
The cost of sales for the first quarter was $44.0 million, and
the cash cost, after by-product credits, per silver ounce, was
$0.65, compared to $44.9 million and $3.96, respectively, for the
first quarter of 2016.5 The AISC, after by-product credits, was
$3.86 per silver ounce for the first quarter compared to $7.03 in
the first quarter of 2016.6 The per ounce silver costs were lower
primarily due to higher base metals prices and lower silver
production.
In the first quarter of 2017, as part of an ongoing and
successful effort to increase recoveries from Greens Creek, the
first staged-flotation-reactor was installed in the zinc rougher
circuit. This unit will be commissioned in the second quarter and
is expected to improve recoveries and to increase distribution of
metals to concentrates with higher payable terms.
Lucky Friday Mine - Idaho
Silver production of 680,782 ounces decreased 30% over the prior
year period mainly due to the strike by the union workers since
March 13, 2017.
Cost of sales for the first quarter was $14.5 million and the
cash cost, after by-product credits, per silver ounce was $5.93, as
compared to $18.5 million and $9.05, respectively, for the first
quarter of 2016. The decrease in cash cost, after by-product
credits, per silver ounce is primarily due to higher base metals
prices. The AISC, after by-product credits, was $12.06 per silver
ounce for the first quarter compared to $21.78 in the first quarter
of 2016, with the decline due to the reduction in capital spending
with the completion of the #4 Shaft as well as higher base metals
prices.
During the strike, several necessary infrastructure projects
have been undertaken, including a ventilation change on the new
6500 level and adding a pumping connection between the recently
commissioned #4 Shaft and the Silver Shaft, nearly a mile
apart.
Casa Berardi Mine - Quebec
At the Casa Berardi mine, 35,807 ounces of gold were produced in
the first quarter, including 7,157 ounces from the East Mine Crown
Pillar (EMCP) pit, compared to 30,378 ounces in the prior year
period, primarily due to higher throughput. The mill operated at an
average of 3,263 tpd in the first quarter, an increase of 37% over
the first quarter of 2016.
The cost of sales was $42.5 million for the first quarter and
the cash cost, after by-product credits, per gold ounce was $886,
compared to $29.2 million and $781, respectively, in the prior year
period.5,7 The increase in cash cost, after by-product credits, per
gold ounce is partly due to the expensing of stripping costs for
the new EMCP pit, as well as the stronger Canadian dollar. The
AISC, after by-product credits, was $1,256 per gold ounce for the
first quarter compared to $1,322 in the first quarter of 2016,
primarily due to lower capital spending and higher gold
production.6
In addition, automation of the 985 drift, which is under
construction, has been approved and the first truck is expected
this year. This automation should be commissioned by the end of the
year and will ultimately result in a reduction in trucks, and
associated maintenance and personnel costs.
San Sebastian - Mexico
At the San Sebastian mine, 750,803 ounces of silver and 6,284
ounces of gold were produced in the first quarter, compared to
1,200,339 ounces and 9,329 ounces in the prior year period. The
lower silver and gold production was expected as the mine moved
from East Francine to Middle and North vein pits, resulting in
lower grades. The mill operated at an average of 407 tpd in the
first quarter, an increase of 19% over the first quarter of
2016.
The cost of sales was $6.6 million for the first quarter and the
cash cost, after by-product credits, was negative $3.27 per silver
ounce, compared to $7.7 million and negative $3.26, respectively,
in the first quarter of 2016. The strong cash cost, after
by-product credits, performance continues to be due to the silver
grade, which, despite being lower than the prior period is still
strong, as well as significant gold production, which is used as a
by-product credit. The AISC, after by-product credits, was $0.43
per silver ounce for the first quarter compared to negative $2.28
in the first quarter of 2016, principally due to lower gold
production and higher exploration and sustaining capital.
The Company has the mill leased for 2018. The expectation is to
transition from open pit to underground mining by the end of 2017.
A ramp is under construction to connect the new portal to the
existing workings, which are being rehabilitated. Recent definition
drilling on the Middle Vein has shown better continuity of
high-grade within the reserve area and exploration drilling
continues to define new high-grade material near the proposed mine
development along the Middle Vein.
EXPLORATION
Expenditures
Exploration (including Corporate Development) expenses were
$4.5 million in the first quarter of 2017, an increase of $1.6
million compared to the first quarter 2016. Full year exploration
(including Corporate Development) expenses are expected to be
$20-25 million, up from $14.7 million in 2016, in part
reflecting more aggressive exploration programs at San Sebastian,
Casa Berardi and Greens Creek and continued exploration at the
Kinskuch, Little Baldy and Opinaca-Wildcat projects.
San Sebastian
Due to significant drilling success over the past four years,
near-surface, high-grade zones are being open-pit mined and new
reserves in the West Middle Vein are currently being
developed for underground mining. As San Sebastian moves toward
underground mine production by year end, drilling has focused on
refining reserves and defining new underground mineable resources
along the Middle and Francine veins. Three
core drills were active during the quarter, and with recent
drilling success nearly six miles of mineralized strike length has
been defined. A RC (reverse circulation) drill is evaluating
targets north and northwest of the mine area and has identified new
mineralized veins.
In-fill drilling on the West Middle Vein shows improved
grades and continuity, increasing confidence within the current
reserves. It has also closed some lower-grade gaps between
currently defined, high-grade stopes. Assay results from this
program include 3.98 oz/ton gold and 399.3 oz/ton silver over 6.1
feet and 0.82 oz/ton gold and 124.3 oz/ton silver over 6.3 feet.
These results are important as re-modeling of the West Middle Vein
resource solids could improve the mineable grade in this area and
expand the currently designed mine stopes.
Positive exploration results from the western extension of the
Middle Vein at a depth of 400 feet from surface include
recent intersections of 0.76 oz/ton gold and 10.2 oz/ton silver
over 2.0 feet. Significantly, these intercepts are to the west of
the current underground mine plan and could expand the underground
mineable resource in this area. Although these veins are narrow,
they show good continuity and are open to the west and at depth.
Deeper drilling in this area has identified additional base
metal-rich mineralization similar to the Hugh Zone at depth
in the Francine Vein and may have similar metallurgical
characteristics. Drilling at the east end of the Middle Vein
have returned intersections of 0.05 oz/ton gold and 18.4 oz/ton
silver over 2.4 feet and 0.12 oz/ton gold and 12.2 oz/ton silver
over 3.1 feet at a depth of 250 feet from surface. This
mineralization is open along strike to the east, with potential
up-dip to surface, and is parallel to recently discovered
mineralization along the East Francine Vein.
Step-out drilling about 1,000 feet east of the East Francine pit
has intersected a zone of mineralized East Francine Vein
with grades up to 0.77 oz/ton gold and 196.7 oz/ton silver
over 3.6 feet and a recent drill hole returned 0.03 oz/ton
gold and 12.4 oz/ton silver over 7.0 feet. This high-grade zone is
currently identified 300 feet from surface and can be traced for
650 feet along strike and 550 feet down dip. This mineralization is
open to the east and at depth and step-out drilling at about
300-foot centers is continuing.
More complete drill assay highlights from San Sebastian can be
found in Table A at the end of this release.
Casa Berardi - Quebec
During the first quarter, six drills underground were working to
refine current stope designs and expand reserves and resources in
the 118, 123, and 124 zones. Four drills on surface completed both
in-fill and exploration drilling of the 124, 134 and 160 zones. In
addition, there were two surface rigs operating on the West Block
property to the west of the mining lease.
Drilling of the Upper 118 Zone from the 530 level
intersected mineralization at the 490 level confirmed multiple
mineralized lenses extending for over 1,250 feet down-plunge. In
the lower 118 Zone drilling from the 970 and 990 levels
includes intersections of 0.45 oz/ton gold over 23.6 feet and 0.43
oz/ton gold over 29.0 feet and suggests the mineralization to the
west and at depth remains open.
Drilling along the lower and upper extensions of the 121
Zone from the 910 level intersected high-grade intervals,
including 0.31 oz/ton gold over 44.3 feet, that show the lenses are
open both up and down-plunge. In combination with recent drilling
of the 123 Zone from the 870 and 985 levels, stacked
high-grade lenses of the 123 Zone may overlap with lenses of
the 121 Zone to create a semi-continuous mineralized zone of
over 1,500 feet of strike length. Initial drilling from the 810
level into the 123 Zone have validated the current resource
model and suggest sulfide-rich mineralization is open to the east.
Drilling of the lower 123 Zone from the 985 level at the
bottom of the mine confirmed the high-grade resource model and
suggest there is good potential to find more mineralization
down-plunge of the five lenses. Definition and exploration drilling
of the 124 Zone north of the 290 drift intersected
extensions of the zone on the 370 level, returned 0.33 oz/ton gold
over 9.8 feet, and showed the lenses remain open to the east.
Two surface drills concentrated on the west extension of the
124 Zone have identified up to 450 feet of mineralized
strike length along the Casa Berardi Fault and additional
mineralization along a northern mineralized shear splay. Recent
surface drilling to the east of the 124 Zone has identified
mineralized lenses both north and south of the Casa Berardi Fault
at the 134 Zone. Recent assay intervals of the 134
Zone include 0.08 oz/ton gold over 20.3 feet and 0.07 oz/ton
gold over 26.2 feet. Once resource modeling of the 134 Zone
is complete, the Company plans to run a Whittle pit optimization
study to determine the economic viability of the pit, and if
positive, further in-fill drilling may be warranted to upgrade the
resource to indicated category and for open-pit design.
In-fill drilling from surface of the 160 Zone is expected
to upgrade the current inferred resource and result in a new
resource model that will be part of an investigation into the
viability of an open-pit. Drilling has intersected wide zones of
mineralization including 0.11 oz/ton gold over 119.7 feet and 0.08
oz/ton gold over 235.3 feet. Recent assays suggest a gain of
resources to the north, and a new resource estimate and pit
optimization are expected by the fourth quarter.
Two drills operated on three distinct target areas in the
West Block of Casa Berardi where a regional structure
intersects the western extension of the Casa Berardi Fault.
Specific targets are defined by strong gold-in-till anomalies and
the initial focus of the drilling is about two miles west of the
West Shaft at Casa Berardi. The drilling has intersected
mineralization shears with veining, strong alteration and heavy
sulfides, but many assays are pending.
Due to the identification of new resource trends near surface
and underground throughout the West Mine, there was a significant
increase in inferred ounces in 2016. In-fill drilling in 2017 may
convert a large portion of those to indicated category and the
eventual incorporation into the life of mine plan and exploration
drilling continues to expand these mineralized zones.
More complete drill assay highlights from Casa Berardi can be
found in Table A at the end of the release.
Greens Creek - Alaska
At Greens Creek, drilling and assay results in the first quarter
refined resources of the 9A, NWW, Southwest Bench, East Ore and
West zones for possible conversion to reserves. Drilling of the
9A Zone intercepted mineralization comparable to the
existing resource model although mineralization along the upper
contact is more continuous than the model predicted. Intersections
of the 9A Zone include 52.1 oz/ton silver, 0.03 oz/ton gold, 10.5%
zinc and 5.3% lead over 21.7 feet and 60.5 oz/ton silver, 0.02
oz/ton gold, 15.1% zinc and 7.3% lead over 14.0 feet.
Drilling of the southern extension of the NWW Zone
continues to define mineralization along the lower fold, spanning
from the fold nose and along the upper limb. Mineralization is
represented by multiple distinct bands of massive ores and
mineralized argillites and has similar geometry and dimensions to
the current resource model. Recent assay results include 87.1
oz/ton silver, 0.32 oz/ton gold, 15.4% zinc, and 7.5% lead over
27.9 feet and 48.0 oz/ton silver, 0.13 oz/ton gold, 22.2% zinc, and
13.1% lead over 11.7 feet. Drilling of the Upper Southwest
Zone identified mineralization that extends north of previous
mining in the zone and down to the upper limb of the NWW. Assay
results include 35.0 oz/ton silver, 0.02 oz/ton gold, 5.9% zinc,
and 3.2% lead over 15.0 feet.
Drilling of the East Ore Zone shows that north and south
of a weakly mineralized gap in the middle of the model, the
mineralization defines a “pinch and swell” configuration where some
recent intersections match or exceed the resource model.
Intersections include 33.8 oz/ton silver, 0.11 oz/ton gold, 3.2%
zinc 1.0% lead over 11.9 feet. Recent drilling of the West
Zone suggests mineralization is of similar extent and thickness
along the nose and eastern limb. An extension to the resource model
has been identified along the Maki Fault that is open at depth and
along strike beyond the model.
For the surface exploration program, we received the final
"Finding of No Significant Impact" (FONSI) and "Notice to Proceed"
from the U.S. Forest Service in April; however, due to heavy and
late snowfall and required botany surveys, we have pushed the
anticipated drilling startup to late June.
More complete drill assay highlights from Greens Creek, can be
found in Table A at the end of this release.
Lucky Friday
In the first quarter, one drill investigated the west side of
the 12-Stope from the 6350 Level to define mineralization past the
second leg of the Silver Fault, which is the current western
boundary of the resource. This drilling intersected distinct veins
west of the fault but none had economic grades. In contrast,
definition holes east of the Silver Fault returned good 30 Vein
results including 22.9 oz/ton silver, 8.1% zinc, and 20.3% lead
over 9.9 feet and 16.7 oz/ton silver, 3.8% zinc, and 16.6% lead
over 11.7 feet.
More complete drill assay highlights from Lucky Friday, can be
found in Table A at the end of this release.
Other Properties
Modeling of the Montanore Fault and Libby Creek Fault blocks at
the Montanore property are complete. Additionally, the structural
data integration from the Libby Decline has been completed to
facilitate modeling of the fault block for use in geotechnical
studies. Preparations for summer fieldwork on the Opinaca-Wildcat
project near the Eleonore Mine in northern Quebec, as well as plans
for summer drilling at the Little Baldy property in Idaho, and the
Kinskuch property in northern British Columbia, are underway.
PRE-DEVELOPMENT
Pre-development spending was $1.3 million for the quarter,
principally to advance the permitting of Rock Creek and Montanore.
Data exports have been provided for import into Vulcan (mine
planning software) for the generation of a mine plan for Rock
Creek. The mine plan for Montanore will also be updated with the
new 2016 block model.
2017 ESTIMATES8
The Company is suspending Lucky Friday and Company-wide silver
production, cost estimates as well as capital estimates because it
is unable to predict when the ongoing strike by union workers at
the Lucky Friday mine will be resolved.
2017 Production Outlook
Silver Production
(Moz)
Gold Production
(Koz)
Silver Equivalent
(Moz)
Gold Equivalent
(Koz)
Greens Creek 7.4-8.0
54-60 22.8-23.9
322-336
Lucky Friday TBD
TBD TBD
San Sebastian 3.0-3.4
21-25 4.5-5.2
63-73
Casa Berardi
150-165 10.7-11.8
150-165
Total TBD
230-250 TBD TBD
2017 Cost Outlook
Costs of Sales
(million)
Cash cost, after by-
product credits, per
silver/gold ounce5,7
AISC, after by-product
credits, per produced
silver/gold ounce6
Greens Creek $228
$2.50 $9.50
Lucky Friday
TBD TBD TBD
San
Sebastian $36 $0.00
$2.00
Total Silver
TBD TBD TBD
Casa
Berardi $170 $800
$1,150
Total Gold
$170 $800 $1,150
2017 Capital and Exploration Outlook
2017E Capital expenditures (excluding capitalized interest)
TBD
2017E Exploration expenditures
(includes Corporate Development)
$20-25 million
2017E Pre-development expenditures
$5 million
DIVIDENDS
Common
The Board of Directors elected to declare a quarterly cash
dividend of $0.0025 per share of common stock, payable on or about
June 2, 2017, to stockholders of record on May 24, 2017.
The realized silver price was $17.90 in the first quarter and
therefore did not satisfy the criteria for a larger dividend under
the Company's dividend policy.
BOARD UPDATE
Dr. Anthony P. Taylor, who has served as a director since May
2002, will retire effective the Annual Meeting of Shareholders on
May 25, 2017. We would like to thank Dr. Taylor for his leadership
and counsel, and wish him much happiness in his retirement.
CONFERENCE CALL AND WEBCAST
A conference call and webcast will be held Monday, May 8, at
10:00 a.m. Eastern Time to discuss these results. You may join the
conference call by dialing toll-free 1-855-760-8158 or for
international dialing 1-720-634-2922. The participant passcode is
HECLA. Hecla's live and archived webcast can be accessed at
www.hecla-mining.com under Investors or via Thomson StreetEvents
Network.
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 gold producer with an operating mine in
Quebec, Canada. The Company also has exploration and
pre-development properties in seven 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.
NOTES
Non-GAAP Financial Measures
Non-GAAP financial measures are intended to provide additional
information only and do not have any standard meaning prescribed by
generally accepted accounting principles (GAAP). These measures
should not be considered in isolation or as a substitute for
measures of performance prepared in accordance with GAAP.
(1) Adjusted net income (loss) applicable to common stockholders
is a non-GAAP measurement, a reconciliation of which to net income
(loss) applicable to common stockholders, the most comparable GAAP
measure, can be found at the end of the release. Adjusted net
income (loss) is a measure used by management to evaluate the
Company's operating performance but should not be considered an
alternative to net income (loss), or cash provided by operating
activities as those terms are defined by GAAP, and does not
necessarily indicate whether cash flows will be sufficient to fund
cash needs. In addition, the Company may use it when formulating
performance goals and targets under its incentive program.
(2) Adjusted EBITDA is a non-GAAP measurement, a reconciliation
of which to net income (loss), the most comparable GAAP measure,
can be found at the end of the release. Adjusted EBITDA is a
measure used by management to evaluate the Company's operating
performance but should not be considered an alternative to net
income (loss), or cash provided by operating activities as those
terms are defined by GAAP, and does not necessarily indicate
whether cash flows will be sufficient to fund cash needs. In
addition, the Company may use it when formulating performance goals
and targets under its incentive program.
(3) Net debt to adjusted EBITDA is a non-GAAP measurement, a
reconciliation of adjusted EBITDA and net debt to the closest GAAP
measurements of net income (loss) and debt can be found at the end
of the release. It is an important measure for management to
measure relative indebtedness and the ability to service the debt
relative to its peers. It is calculated as total debt outstanding
less total cash on hand divided by adjusted EBITDA.
(4) Free cash flow is a non-GAAP measurement, a reconciliation
of which to cash provided by operating activities, the most
comparable GAAP measure, can be found at the end of the release.
Free cash flow used by management to analyze cash flows generated
from operations. It is calculated as cash provided by operating
activities (GAAP) less additions to properties, plants equipment
and mineral interests (GAAP). The Company believes free cash flow
is also useful as one of the bases for comparing the Company's
performance with its competitors. Although free cash flow and
similar measures are frequently used as measures of cash flows
generated from operations by other companies, the Company's
calculation of free cash flow is not necessarily comparable to such
other similarly titled captions of other companies.
(5) Cash cost, after by-product credits, per silver and gold
ounce is a non-GAAP measurement, a reconciliation of which to cost
of sales and other direct production costs and depreciation,
depletion and amortization (sometimes referred to as "cost of
sales" in this release) can be found at the end of the release. It
is an important operating statistic that management utilizes to
measure each mine's operating performance. It also allows the
benchmarking of performance of each mines versus those of our
competitors. As a primary silver mining company, management also
uses the statistic on an aggregate basis - aggregating the Greens
Creek, Lucky Friday and San Sebastian mines - to compare
performance with that of other primary silver mining companies.
With regard to Casa Berardi, management uses cash cost, after
by-product credits, per gold ounce to compare its performance with
other gold mines. Similarly, the statistic is useful in identifying
acquisition and investment opportunities as it provides a common
tool for measuring the financial performance of other mines with
varying geologic, metallurgical and operating characteristics. In
addition, the Company may use it when formulating performance goals
and targets under its incentive program.
(6) All in sustaining cost (AISC), after by-product credits, is
a non-GAAP measurement, a reconciliation of which to cost of sales
and other direct production costs and depreciation, depletion and
amortization, the closest GAAP measurement, can be found in the end
of the release. AISC, after by-product credits, includes cost of
sales and other direct production costs, expenses for reclamation
and exploration at the mines sites, corporate exploration related
to sustaining operations, and all site sustaining capital costs.
AISC, after by-product credits, is calculated net of depreciation,
depletion, and amortization and by-product credits.
Current GAAP measures used in the mining industry, such as cost
of goods sold, do not capture all the expenditures incurred to
discover, develop and sustain silver and gold production.
Management believes that all in sustaining costs is a non-GAAP
measure that provides additional information to management,
investors and analysts to help in the understanding of the
economics of our operations and performance compared to other
producers and in the investor's visibility by better defining the
total costs associated with production. Similarly, the statistic is
useful in identifying acquisition and investment opportunities as
it provides a common tool for measuring the financial performance
of other mines with varying geologic, metallurgical and operating
characteristics. In addition, the Company may use it when
formulating performance goals and targets under its incentive
program.
(7) Cash cost, after by-product credits, per gold ounce is only
applicable to Casa Berardi production. Gold produced from Greens
Creek and San Sebastian is treated as a by-product credit against
the silver cash cost.
Other
(8) Expectations for 2017 includes silver, gold, lead and zinc
production from Greens Creek, San Sebastian and Casa Berardi
converted using Au $1,225/oz, Ag $17.25/oz, Zn $1.30/lb, and Pb
$1.05/lb. Lucky Friday expectations are currently suspended as
there is currently a strike. Numbers may be rounded.
Cautionary Statements to Investors on Forward-Looking
Statements
This news release contains “forward-looking statements” within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, which are intended to be covered by the safe harbor
created by such sections and other applicable laws, including
Canadian securities laws. Such forward-looking statements may
include, without limitation: (i) estimates of future production and
sales; (ii) estimates of future costs including cash cost, after
by-product credits per ounce of silver/gold and AISC, after
by-product credits, per ounce of silver/gold and the potential
impact of the Lucky Friday strike; (iii) estimates for 2017 for
silver and gold production, silver equivalent production, cash
cost, after by-product credits, AISC, after by-product credits,
capital expenditures and exploration and pre-development
expenditures (which assumes metal prices of gold at $1,225/oz, Ag
$17.25/oz, Zn $1.30/lb, Pb $1.05; USD/CAD assumed to be $0.78,
USD/MXN assumed to be $0.06) and the impact of the Lucky Friday
strike; (iv) expectations regarding the development, growth
potential, financial performance and exploration potential of the
Company’s projects, including the EMCP pits in Quebec and San
Sebastian operations; (v) the Company’s mineral reserves and
resources; (vi) potential increases in recoveries and payable
relating to the installation of a zinc rougher circuit at Greens
Creek; (vii) ability to optimize operations at Casa Berardi;
Estimates or expectations of future events or results are based
upon certain assumptions, which may prove to be incorrect. Such
assumptions, include, but are not limited to: (i) there being no
significant change to current geotechnical, metallurgical,
hydrological and other physical conditions; (ii) permitting,
development, operations and expansion of the Company’s projects
being consistent with current expectations and mine plans; (iii)
political/regulatory developments in any jurisdiction in which the
Company operates being consistent with its current expectations;
(iv) the exchange rate for the Canadian dollar to the U.S. dollar,
being approximately consistent with current levels; (v) certain
price assumptions for gold, silver, lead and zinc; (vi) prices for
key supplies being approximately consistent with current levels;
(vii) the accuracy of our current mineral reserve and mineral
resource estimates; and (viii) 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. Where the Company expresses or implies an
expectation or belief as to future events or results, such
expectation or belief is expressed in good faith and believed to
have a reasonable basis. However, such statements are subject to
risks, uncertainties and other factors, which could cause actual
results to differ materially from future results expressed,
projected or implied by the “forward-looking statements.” Such
risks include, but are not limited to gold, silver and other metals
price volatility, operating risks, currency fluctuations, increased
production costs and variances in ore grade or recovery rates from
those assumed in mining plans, community relations, conflict
resolution and outcome of projects or oppositions, litigation,
political, regulatory, labor and environmental risks, and
exploration risks and results, including that mineral resources are
not mineral reserves, they do not have demonstrated economic
viability and there is no certainty that they can be upgraded to
mineral reserves through continued exploration. For a more detailed
discussion of such risks and other factors, see the Company’s 2016
Form 10-K, filed on February 23, 2017, with the Securities and
Exchange Commission (SEC), as well as the Company’s other SEC
filings. The Company does not undertake any obligation to release
publicly revisions to any “forward-looking statement,” including,
without limitation, outlook, to reflect events or circumstances
after the date of this news release, or to reflect the occurrence
of unanticipated events, except as may be required under applicable
securities laws. Investors should not assume that any lack of
update to a previously issued “forward-looking statement”
constitutes a reaffirmation of that statement. Continued reliance
on “forward-looking statements” is at investors’ own risk.
Cautionary Statements to Investors on Reserves and
Resources
Reporting requirements in the United States for disclosure of
mineral properties are governed by the SEC and included in the
SEC's Securities Act Industry Guide 7, entitled “Description of
Property by Issuers Engaged or to be Engaged in Significant Mining
Operations” (Guide 7). However, the Company is also a “reporting
issuer” under Canadian securities laws, which require estimates of
mineral resources and reserves to be prepared in accordance with
Canadian National Instrument 43-101 (NI 43-101). NI 43-101 requires
all disclosure of estimates of potential mineral resources and
reserves to be disclosed in accordance with its requirements. Such
Canadian information is being included here to satisfy the
Company's “public disclosure” obligations under Regulation FD of
the SEC and to provide U.S. holders with ready access to
information publicly available in Canada.
Reporting requirements in the United States for disclosure of
mineral properties under Guide 7 and the requirements in Canada
under NI 43-101 standards are substantially different. This
document contains a summary of certain estimates of the Company,
not only of proven and probable reserves within the meaning of
Guide 7, which requires the preparation of a “final” or “bankable”
feasibility study demonstrating the economic feasibility of mining
and processing the mineralization using the three-year historical
average price for any reserve or cash flow analysis to designate
reserves and that the primary environmental analysis or report be
filed with the appropriate governmental authority, but also of
mineral resource and mineral reserve estimates estimated in
accordance with the definitional standards of the Canadian
Institute of Mining, Metallurgy and Petroleum referred to in NI
43-101. The terms “measured resources”, “indicated resources,” and
“inferred resources” are Canadian mining terms as defined in
accordance with NI 43-101. These terms are not defined under Guide
7 and are not normally permitted to be used in reports and
registration statements filed with the SEC in the United States,
except where required to be disclosed by foreign law. The term
“resource” does not equate to the term “reserve”. Under Guide 7,
the material described herein as “indicated resources” and
“measured resources” would be characterized as “mineralized
material” and is permitted to be disclosed in tonnage and grade
only, not ounces. The category of “inferred resources” is not
recognized by Guide 7. Investors are cautioned not to assume that
any part or all of the mineral deposits in such categories will
ever be converted into proven or probable reserves. “Resources”
have a great amount of uncertainty as to their existence, and great
uncertainty as to their economic and legal feasibility. It cannot
be assumed that all or any part of such a “resource” will ever be
upgraded to a higher category or will ever be economically
extracted. Investors are cautioned not to assume that all or any
part of a “resource” exists or is economically or legally mineable.
Investors are also especially cautioned that the mere fact that
such resources may be referred to in ounces of silver and/or gold,
rather than in tons of mineralization and grades of silver and/or
gold estimated per ton, is not an indication that such material
will ever result in mined ore which is processed into commercial
silver or gold.
Qualified Person (QP) Pursuant to
Canadian National Instrument 43-101
Dean McDonald, PhD., P.Geo., Senior Vice President - Exploration
of Hecla Mining Company, who serves as a Qualified Person under
National Instrument 43-101, supervised the preparation of the
scientific and technical information concerning Hecla’s mineral
projects in this news release. Information regarding data
verification, surveys and investigations, quality assurance program
and quality control measures and a summary of sample, analytical or
testing procedures for the Greens Creek Mine are contained in a
technical report prepared for Hecla titled “Technical Report for
the Greens Creek Mine, Juneau, Alaska, USA” effective date March
28, 2013, and for the Lucky Friday Mine are contained in a
technical report prepared for Hecla titled “Technical Report on the
Lucky Friday Mine Shoshone County, Idaho, USA” effective date April
2, 2014, for the Casa Berardi Mine are contained in a technical
report prepared for Hecla titled "Technical Report on the Mineral
Resource and Mineral Reserve Estimate for the Casa Berardi Mine,
Northwestern Quebec, Canada" effective date March 31, 2014 (the
"Casa Berardi Technical Report"), and for the San Sebastian Mine
are contained in a technical report prepared for Hecla titled
"Technical Report for the San Sebastian Ag-Au Property, Durango,
Mexico" effective date September 8, 2015. Also included in these
three technical reports is a description of the key assumptions,
parameters and methods used to estimate mineral reserves and
resources and a general discussion of the extent to which the
estimates may be affected by any known environmental, permitting,
legal, title, taxation, socio-political, marketing or other
relevant factors. Copies of these technical reports are available
under Hecla's profile on SEDAR at www.sedar.com.
The current Casa Berardi drill program was performed on core
sawed in half and included the insertion of blanks and standards of
variable grade in every 24 core samples. Standards were generally
provided by Analytical Solutions Ltd and prepared in 30 gram bags.
Samples were sent to the Swastika Laboratories in Swastika,
Ontario, a registered accredited laboratory, where they were dried,
crushed, and split for gold analysis. Analysis for gold was
completed by fire assay with AA finish. Gold over-limits were
analyzed by fire assay with gravimetric finish. Data received from
the lab were subject to validation using in-built program triggers
to identify outside limit blank or standard assays that require
re-analysis. Over 5% of the original pulps and rejects are sent for
re-assay to ALS Chemex in Val d’Or for quality control.
Dr. McDonald reviewed and verified information regarding drill
sampling, data verification of all digitally-collected data, drill
surveys and specific gravity determinations relating to the Casa
Berardi mine. The review encompassed quality assurance programs and
quality control measures including analytical or testing practice,
chain-of-custody procedures, sample storage procedures and included
independent sample collection and analysis. This review found the
information and procedures meet industry standards and are adequate
for Mineral Resource and Mineral Reserve estimation and mine
planning purposes.
HECLA MINING COMPANY
Condensed Consolidated Statements of
Income (Loss)
(dollars and shares in thousands, except
per share amounts - unaudited)
Three Months Ended
March 31, 2017
March 31, 2016 Sales of products
$
142,544 $ 131,017 Cost of sales and other
direct production costs
78,676 74,320 Depreciation,
depletion and amortization
28,952 25,875
107,628 100,195 Gross profit
34,916
30,822 Other operating expenses: General and
administrative
9,206 10,214 Exploration
4,514 2,950
Pre-development
1,252 404 Research and development
683 — Other operating expense
690 640 Provision for
closed operations and environmental matters
1,119 1,041
Lucky Friday suspension-related costs
1,581 —
19,045 15,249 Income from operations
15,871 15,573 Other income (expense):
Loss on derivative contracts
(7,809 ) — Interest and
other income
325 88 Loss on disposal of investments
(167 ) — Unrealized gain (loss) on investments
327 (711 ) Net foreign exchange loss
(2,262 )
(8,203 ) Interest expense, net of amounts capitalized
(8,522
) (5,711 )
(18,108 ) (14,537 ) (Loss) income
before income taxes
(2,237 ) 1,036 Income tax benefit
(provision)
29,071 (1,654 ) Net income (loss)
26,834 (618 ) Preferred stock dividends
(138 )
(138 ) Income (loss) applicable to common stockholders
$ 26,696 $ (756 ) Basic income per
common share after preferred dividends
$ 0.07
$ — Diluted income per common share after preferred
dividends
$ 0.07 $ — Weighted
average number of common shares outstanding - basic
395,370
379,022 Weighted average number of common shares
outstanding - diluted
398,149 379,022
HECLA MINING COMPANY
Condensed Consolidated Balance Sheets
(dollars and shares in thousands -
unaudited)
March 31, 2017 December
31, 2016
ASSETS
Current
assets: Cash and cash equivalents
$ 176,786 $ 169,777
Investments
36,505 29,117 Accounts receivable: Trade
17,210 20,082 Other, net
22,234 9,967 Inventories
54,164 50,023 Other current assets
8,256
12,125 Total current assets
315,155 291,091
Non-current investments
5,104 5,002 Non-current restricted
cash and investments
2,200 2,200 Properties, plants,
equipment and mineral interests, net
2,032,983 2,032,685
Non-current deferred income taxes
48,410 35,815 Other
non-current assets
2,609 4,884
Total
assets $ 2,406,461 $ 2,371,677
LIABILITIES
Current liabilities: Accounts payable
and accrued liabilities
$ 51,739 $ 60,064 Accrued
payroll and related benefits
38,554 36,515 Accrued taxes
11,089 9,061 Current portion of capital leases
5,647
5,653 Current portion of debt
— 470 Current portion of
accrued reclamation and closure costs
7,453 5,653 Other
current liabilities
18,173 8,809 Total current
liabilities
132,655 126,225 Capital leases
6,088
5,838 Long-term debt
501,292 500,979 Non-current deferred
tax liability
121,025 122,855 Accrued reclamation and
closure costs
79,334 79,927 Non-current pension liability
46,443 44,491 Other non-current liabilities
5,321
11,518
Total liabilities 892,158
891,833
STOCKHOLDERS’ EQUITY
Preferred stock
39 39 Common stock
99,973 99,806
Capital surplus
1,603,324 1,597,212 Accumulated deficit
(141,730 ) (167,437 ) Accumulated other comprehensive
loss
(31,398 ) (34,602 ) Treasury stock
(15,905 ) (15,174 )
Total stockholders’ equity
1,514,303 1,479,844
Total liabilities and
stockholders’ equity $ 2,406,461 $
2,371,677 Common shares outstanding
395,825
395,287
HECLA MINING COMPANY
Condensed Consolidated Statements of Cash
Flows
(dollars in thousands - unaudited)
Three Months Ended
March 31, 2017
March 31, 2016
OPERATING ACTIVITIES
Net income (loss)
$ 26,834
$ (618 ) Non-cash elements
included in net income (loss): Depreciation, depletion and
amortization
29,590 26,153 Loss on disposal of investments
167 — Unrealized (gain) loss on investments
(327
) 711 Gain on disposition of properties, plants, equipment
and mineral interests
(32 ) (210 ) Provision for
reclamation and closure costs
1,026 999 Stock compensation
1,349 1,231 Deferred income taxes
(21,234 )
3,320 Amortization of loan origination fees
480 459 Loss
(gain) on derivative contracts
7,343 170 Foreign exchange
loss (gain)
506 7,989 Other non-cash charges, net
2 6
Change in assets and liabilities: Accounts receivable
(8,738
) (20,036 ) Inventories
(3,358 ) (5,922 )
Other current and non-current assets
1,363 (619 ) Accounts
payable and accrued liabilities
(1,510 ) 10,036
Accrued payroll and related benefits
6,881 (2,826 ) Accrued
taxes
1,754 (37 ) Accrued reclamation and closure costs and
other non-current liabilities
(3,811 ) (2,058 )
Cash provided by operating activities 38,285
18,748
INVESTING ACTIVITIES
Additions to properties, plants, equipment and mineral interests
(21,658 ) (34,654 ) Maturities of investments
3,634 — Proceeds from disposition of properties, plants and
equipment
61 215 Purchases of investments
(11,113
) — Changes in restricted cash and investment balances
— (3,900 )
Net cash used in investing
activities (29,076 ) (38,339 )
FINANCING
ACTIVITIES
Proceeds from
issue of stock, net of related costs
— 2,052 Acquisition of
treasury shares
(731 ) (1,256 ) Dividends paid to
common stockholders
(989 ) (952 ) Dividends paid to
preferred stockholders
(138 ) (138 ) Debt origination
fees
(91 ) (59 ) Payments on debt
(470
) (664 ) Repayments of capital leases
(1,595 )
(2,118 )
Net cash used in financing activities (4,014
) (3,135 ) Effect of exchange rates on cash
1,814 1,535 Net increase (decrease) in cash and cash
equivalents
7,009 (21,191 ) Cash and cash equivalents at
beginning of period
169,777 155,209 Cash and
cash equivalents at end of period
$ 176,786 $
134,018
HECLA MINING COMPANY
Production Data
Three Months Ended
March 31, 2017
March 31, 2016
GREENS CREEK UNIT
Tons of ore milled
197,129
204,968 Mining cost per ton of ore
$
71.41 $ 66.96 Milling cost per ton of ore
$
33.72 $ 30.99 Ore grade milled - Silver (oz./ton)
12.71 15.17 Ore grade milled - Gold (oz./ton)
0.10
0.11 Ore grade milled - Lead (%)
3.06 3.05 Ore grade milled
- Zinc (%)
7.82 8.13 Silver produced (oz.)
1,929,297
2,458,276 Gold produced (oz.)
14,022 15,981 Lead produced
(tons)
4,809 5,087 Zinc produced (tons)
13,406 14,611
Cash cost, after by-product credits, per
silver ounce(1)
$ 0.65 $ 3.96
AISC, after by-product credits, per silver
ounce(1)
$ 3.86 $ 7.03 Capital additions (in thousands)
$ 5,234
$ 6,376
LUCKY
FRIDAY UNIT
Tons of ore
processed
57,069 74,021 Mining cost per ton of ore
$
104.72 $ 98.02 Milling cost per ton of ore
$
27.16 $ 23.35 Ore grade milled - Silver (oz./ton)
12.39 13.67 Ore grade milled - Lead (%)
7.05 8.36 Ore
grade milled - Zinc (%)
3.99 3.97 Silver produced (oz.)
680,782 977,084 Lead produced (tons)
3,827 5,951 Zinc
produced (tons)
2,131 2,753
Cash cost, after by-product credits, per
silver ounce(1)
$ 5.93 $ 9.05
AISC, after by-product credits, per silver
ounce(1)
$ 12.06 $ 21.78 Capital additions (in thousands)
$
3,987 $ 12,266
CASA BERARDI UNIT
Tons
of ore milled - underground
204,957 216,962 Tons of ore
milled - surface pit
88,739
— Tons of ore milled - total
293,696
216,962 Surface
tons mined - ore and waste
2,310,235 n/a Mining cost per ton
of ore - underground
$ 98.14 $ 87.54 Mining cost per
ton mined (ore and waste) - surface
$ 2.61 n/a
Milling cost per ton of ore
$ 17.26 $ 18.91 Ore grade
milled - Gold (oz./ton) - underground
0.16 0.16 Ore grade
milled - Gold (oz./ton) - surface
0.09 — Ore grade milled -
Gold (oz./ton) - combined
0.14 0.16 Gold produced (oz.) -
underground
28,650 30,378 Gold produced (oz.) - surface
7,157 —
Gold produced (oz.) - total
35,807
30,378
Cash cost, after by-product credits, per
gold ounce(1)
$ 886 $ 781
AISC, after by-product credits, per gold
ounce(1)
$ 1,256 $ 1,322 Capital additions (in thousands)
$
12,411 $ 15,611
SAN SEBASTIAN UNIT
Tons
of ore milled
36,663 31,158 Mining cost per ton of ore
$ 38.99 $ 103.72 Milling cost per ton of ore
$
64.15 $ 69.62 Ore grade milled - Silver (oz./ton)
21.78 $ 41.26 Ore grade milled - Gold (oz./ton)
0.183
0.322 Silver produced (oz.)
750,803 1,200,339 Gold produced
(oz.)
6,284 9,329
Cash cost, after by-product credits, per
silver ounce(1)
$ (3.27 ) $ (3.26 )
AISC, after by-product credits, per silver
ounce(1)
$ 0.43 $ (2.28 ) Capital additions (in thousands)
$ 1,707 $ 490
(1) Cash cost, after by-product credits, per ounce represents a
non-U.S. Generally Accepted Accounting Principles (GAAP)
measurement. A reconciliation of cash cost, after by-product
credits to cost of sales and other direct production costs and
depreciation, depletion and amortization (GAAP) can be found in the
cash cost per ounce reconciliation section of this news release.
Gold, lead and zinc produced have been treated as by-product
credits in calculating silver costs per ounce. The primary metal
produced at Casa Berardi is gold, with a by-product credit for the
value of silver production.
Reconciliation of Cost of Sales and Other Direct Production
Costs and Depreciation, Depletion and Amortization (GAAP) to Cash
Cost, Before By-product Credits and Cash Cost, After By-product
Credits (non-GAAP) and All-In Sustaining Costs, Before By-product
Credits and All-In Sustaining Costs, After By-product Credits
(non-GAAP)
The tables below present reconciliations between the most
comparable GAAP measure of cost of sales and other direct
production costs and depreciation, depletion and amortization to
the non-GAAP measures of Cash Cost, Before By-product Credits, Cash
Cost, After By-product Credits, AISC, Before By-product Credits and
AISC, After By-product Credits for our operations at the Greens
Creek, Lucky Friday, San Sebastian and Casa Berardi units for the
three-month periods ended March 31, 2017 and 2016.
Cash Cost, After By-product Credits, per Ounce is an important
operating statistic that we utilize to measure each mine's
operating performance. AISC, After By-product Credits, per Ounce is
an important operating statistic that we utilize as a measures of
our mines' net cash flow after costs for exploration,
pre-development, reclamation, and sustaining capital. Current GAAP
measures used in the mining industry, such as cost of goods sold,
do not capture all the expenditures incurred to discover, develop
and sustain silver and gold production. Cash Cost, After By-product
Credits, per Ounce and AISC, After By-product Credits, per Ounce
also allow us to benchmark the performance of each of our mines
versus those of our competitors. As a primary silver mining
company, we also use these statistics on an aggregate basis -
aggregating the Greens Creek, Lucky Friday and San Sebastian mines
- to compare our performance with that of other primary silver
mining companies. With regard to Casa Berardi, we use Cash Cost,
After By-product Credits, per Gold Ounce AISC, After By-product
Credits, per Gold Ounce to compare its performance with other gold
mines. Similarly, these statistics are useful in identifying
acquisition and investment opportunities as they provide a common
tool for measuring the financial performance of other mines with
varying geologic, metallurgical and operating characteristics.
Cash Cost, Before By-product Credits and AISC, Before By-product
Credits include all direct and indirect operating cash costs
related directly to the physical activities of producing metals,
including mining, processing and other plant costs, third-party
refining expense, on-site general and administrative costs,
royalties and mining production taxes. AISC, Before By-product
Credits for each mine also includes on-site exploration,
reclamation, and sustaining capital costs. AISC, Before By-product
Credits for our consolidated silver properties also includes
corporate costs for general and administrative expense,
reclamation, exploration, and pre-development. By-product credits
include revenues earned from all metals other than the primary
metal produced at each unit. As depicted in the tables below,
by-product credits comprise an essential element of our silver unit
cost structure, distinguishing our silver operations due to the
polymetallic nature of their orebodies. Cash Cost, After By-product
Credits, per Ounce and AISC, After By-product Credits, per Ounce
provide management and investors an indication of operating cash
flow, after consideration of the average price, received from
production. We also use these measurements for the comparative
monitoring of performance of our mining operations period-to-period
from a cash flow perspective. Cash Cost, After By-product Credits,
per Ounce is a measure developed by precious metals companies
(including the Silver Institute) in an effort to provide a uniform
standard for comparison purposes. There can be no assurance,
however, that our reporting of these non-GAAP measures are the same
as those reported by other mining companies.
The Casa Berardi section below reports Cash Cost, After
By-product Credits, per Gold Ounce and AISC, After By-product
Credits, per Gold Ounce for the production of gold, its primary
product, and by-product revenues earned from silver, which is a
by-product at Casa Berardi. Only costs and ounces produced relating
to units with the same primary product are combined to represent
Cash Cost, After By-product Credits, per Ounce and AISC, After
By-product Credits, per Ounce. Thus, the gold produced at our Casa
Berardi unit is not included as a by-product credit when
calculating Cash Cost, After By-product Credits, per Silver Ounce
and AISC, After By-product Credits, per Silver Ounce for the total
of Greens Creek, Lucky Friday and San Sebastian, our combined
silver properties.
In thousands (except per ounce amounts) Three
Months Ended March 31, 2017
Greens
Creek
Lucky
Friday(2)
San
Sebastian
Corporate(3)
Total
Silver
Casa
Berardi
(Gold)
Total Cost of sales and other direct production costs
and depreciation, depletion and amortization $ 43,996 $ 14,543 $
6,623 $ 65,162 $ 42,466 $ 107,628 Depreciation, depletion and
amortization (13,332 ) (2,433 ) (673 ) (16,438 ) (12,514 ) (28,952
) Treatment costs 14,131 3,817 225 18,173 571 18,744 Change in
product inventory 3,265 (149 ) (380 ) 2,736 1,381 4,117 Reclamation
and other costs (386 ) (182 ) (590 ) (1,158 ) (17 ) (1,175 )
Cash Cost, Before By-product
Credits(1)
47,674 15,596 5,205 68,475 31,887 100,362 Reclamation and other
costs 666 179 117 962 17 979 Exploration 278 1 1,532 378 2,189 797
2,986 Sustaining capital 5,234 3,990 1,132 5 10,361 12,411 22,772
General and administrative 9,206 9,206
9,206
AISC, Before By-product Credits(1)
53,852 19,766 7,986 91,193 45,112 136,305 By-product credits: Zinc
(23,779 ) (4,060 ) (27,839 ) (27,839 ) Gold (14,852 ) (7,657 )
(22,509 ) (22,509 ) Lead (7,782 ) (7,496 ) (15,278 ) (15,278 )
Silver (147 ) (147 ) Total By-product
credits (46,413 ) (11,556 ) (7,657 ) (65,626 ) (147 ) (65,773 )
Cash Cost, After By-product Credits $ 1,261 $ 4,040 $
(2,452 ) $ 2,849 $ 31,740 $ 34,589 AISC, After
By-product Credits $ 7,439 $ 8,210 $ 329 $
25,567 $ 44,965 $ 70,532 Divided by ounces
produced 1,929 681 751 3,361 36 Cash Cost, Before By-product
Credits, per Ounce $ 24.71 $ 22.90 $ 6.93 $ 20.37 $ 890.53
By-product credits per ounce (24.06 ) (16.97 ) (10.20 ) (19.53 )
(4.11 ) Cash Cost, After By-product Credits, per Ounce $ 0.65
$ 5.93 $ (3.27 ) $ 0.84 $ 886.42 AISC,
Before By-product Credits, per Ounce $ 27.92 $ 29.03 $ 10.63 $
27.13 $ 1,259.87 By-product credits per ounce (24.06 ) (16.97 )
(10.20 ) (19.53 ) (4.11 ) AISC, After By-product Credits, per Ounce
$ 3.86 $ 12.06 $ 0.43 $ 7.60 $ 1,255.76
In thousands (except per
ounce amounts) Three Months Ended March 31, 2016
Greens
Creek
Lucky
Friday(2)
San
Sebastian
Corporate(3)
Total
Silver
Casa
Berardi
(Gold)
Total Cost of sales and other direct production costs
and depreciation, depletion and amortization $ 44,854 $ 18,505 $
7,677 $ 71,036 $ 29,159 $ 100,195 Depreciation, depletion and
amortization (13,601 ) (3,004 ) (769 ) (17,374 ) (8,501 ) (25,875 )
Treatment costs 15,638 5,334 (9 ) 20,963 171 21,134 Change in
product inventory 1,640 (21 ) 340 1,959 3,118 5,077 Reclamation and
other costs (398 ) (166 ) (41 ) (605 ) (111 ) (716 )
Cash Cost, Before By-product
Credits(1)
48,133 20,648 7,198 75,979 23,836 99,815 Reclamation and other
costs 682 165 42 889 111 1,000 Exploration 488 — 650 473 1,611 717
2,328 Sustaining capital 6,376 12,266 490 37 19,169 15,611 34,780
General and administrative 10,214 10,214
10,214
AISC, Before By-product Credits(1)
55,679 33,079 8,380 107,862 40,275 148,137 By-product credits: Zinc
(15,684 ) (3,133 ) (18,817 ) (18,817 ) Gold (16,340 ) (11,116 )
(27,456 ) (27,456 ) Lead (6,384 ) (8,673 ) (15,057 ) (15,057 )
Silver (103 ) (103 ) Total By-product
credits (38,408 ) (11,806 ) (11,116 ) (61,330 ) (103 ) (61,433 )
Cash Cost, After By-product Credits $ 9,725 $ 8,842 $
(3,918 ) $ 14,649 $ 23,733 $ 38,382 AISC,
After By-product Credits $ 17,271 $ 21,273 $ (2,736 )
$ 46,532 $ 40,172 $ 86,704 Divided by ounces
produced 2,458 977 1,200 4,635 30 Cash Cost, Before By-product
Credits, per Ounce $ 19.58 $ 21.13 $ 6.00 $ 16.39 $ 784.66
By-product credits per ounce (15.62 ) (12.08 ) (9.26 ) (13.23 )
(3.39 ) Cash Cost, After By-product Credits, per Ounce $ 3.96
$ 9.05 $ (3.26 ) $ 3.16 $ 781.27 AISC,
Before By-product Credits, per Ounce $ 22.65 $ 33.86 $ 6.98 $ 23.27
$ 1,325.79 By-product credits per ounce (15.62 ) (12.08 ) (9.26 )
(13.23 ) (3.39 ) AISC, After By-product Credits, per Ounce $ 7.03
$ 21.78 $ (2.28 ) $ 10.04 $ 1,322.40
(1) Includes all direct and indirect operating
costs related directly to the physical activities of producing
metals, including mining, processing and other plant costs,
third-party refining and marketing expense, on-site general and
administrative costs, royalties and mining production taxes, after
by-product revenues earned from all metals other than the primary
metal produced at each unit. AISC, Before By-product Credits also
includes on-site exploration, reclamation, and sustaining capital
cost. (2) The unionized employees at Lucky Friday have been
on strike since March 13, 2017, and production at Lucky Friday has
been suspended since that time. Costs related to the suspension
period totaling approximately $1.6 million in the first quarter of
2017 have been excluded from the calculations of cost of sales and
other direct production costs and depreciation, depletion and
amortization, Cash Cost, Before By-product Credits, Cash Cost,
After By-product Credits, AISC, Before By-product Credits, and
AISC, After By-product Credits. (3) AISC, Before By-product
Credits for our consolidated silver properties includes corporate
costs for general and administrative expense, exploration and
sustaining capital.
Reconciliation of Net Income (Loss) Applicable to Common
Stockholders (GAAP) to Adjusted Net Income (Loss) Applicable to
Common Stockholders (non-GAAP)
This release refers to a non-GAAP measure of adjusted net income
(loss) applicable to common stockholders and adjusted net income
(loss) per share, which are indicators of our performance. They
exclude certain impacts which are of a nature which we believe are
not reflective of our underlying performance. Management believes
that adjusted net income (loss) per common share provides investors
with the ability to better evaluate our underlying operating
performance.
Dollars are in thousands (except
per share amounts) Three
Months Ended March 31,
2017
2016 Net income (loss) applicable to common stockholders
(GAAP)
$ 26,696 $ (756 ) Adjusting items: Loss on
derivatives contracts
7,809 — Lucky Friday suspension costs
1,581 — Provisional price gains
(627 ) (506 )
Net foreign exchange loss
2,262 8,203 Nonrecurring deferred
income tax adjustments
(17,486 ) — Income tax effect
of above adjustments
(3,505 ) 202 Adjusted net
income applicable to common stockholders
$ 16,730
$ 7,143 Weighted average shares
- basic
395,370 379,022 Weighted average shares - diluted
398,149 379,022 Basic and diluted adjusted net income per
common share
$ 0.04 $ 0.02
Reconciliation of Net Income (Loss) (GAAP) and Debt (GAAP) to
Adjusted EBITDA (non-GAAP) and Net Debt (non-GAAP)
This release refers to the non-GAAP measures of adjusted
earnings before interest, taxes, depreciation and amortization
("Adjusted EBITDA"), which is a measure of our operating
performance, and net debt to adjusted EBITDA for the last 12 months
(or "LTM adjusted EBITDA"), which is a measure of our ability to
service our debt. Adjusted EBITDA is calculated as net income
(loss) before the following items: interest expense, income tax
provision, depreciation, depletion, and amortization expense,
exploration expense, pre-development expense, acquisition costs,
foreign exchange gains and losses, gains and losses on derivative
contracts, Lucky Friday suspension-related costs, provisional price
gains and losses, stock-based compensation, unrealized gains on
investments, provisions for closed operations, and interest and
other income (expense). Net debt is calculated as total debt, which
consists of the liability balances for our Senior Notes, capital
leases, and other notes payable, less the total of our cash and
cash equivalents and short-term investments. Management believes
that, when presented in conjunction with comparable GAAP measures,
Adjusted EBITDA and net debt to LTM adjusted EBITDA are useful to
investors in evaluating our operating performance and ability to
meet our debt obligations. The following table reconciles net
income (loss) and debt to Adjusted EBITDA and net debt:
Dollars are in thousands
Three Months Ended
March 31,
Twelve Months Ended
March 31,
2017 2016
2017
2016 Net income (loss)
$ 26,834 $ (618
)
$ 96,999 $ (100,138 ) Plus: Interest expense
8,522 5,711
24,607 24,908 Plus: Income taxes
(29,071 ) 1,654
(3,297 ) 56,525 Plus:
Depreciation, depletion and amortization
28,952 25,875
118,545 112,110 Plus: Exploration expense
4,514 2,950
16,284 16,080 Plus: Pre-development expense
1,252 404
3,985 4,096 Plus: Acquisition costs
— —
2,695
2,162 Less: Foreign exchange loss
2,262 8,203
(3,015
) (4,074 ) Less: Loss on derivative contracts
7,809 —
3,386 (2,460 ) Plus: Lucky Friday suspension costs
1,581 —
1,581 — Plus/(Less): Provisional price
(gains)/losses
(627 ) (506 )
797 985 Plus:
Stock-based compensation
1,349 1,172
6,109 5,537
Plus: Provision for closed operations
— —
— 12,036
Plus/(Less): Unrealized (gains)/loss on investments
(327
) 711
(861 ) 1,201 Plus/(Less): Other
895 911
(523 ) (711 ) Adjusted
EBITDA
$ 53,945 $ 46,467
$
272,105 $ 128,257 Total debt
$
513,027 $ 518,231 Less: Cash, cash equivalents and
short-term investments
$ (213,291 ) $ (134,018
) Net debt
$ 299,736 $ 384,213 Net
debt/LTM adjusted EBITDA (non-GAAP)
1.1 3.0
Reconciliation of Cash Provided by Operating Activities
(GAAP) to Free Cash Flow (non-GAAP)
This release refers to a non-GAAP measure of free cash flow,
calculated as cash provided by operating activities, less additions
to properties, plants, equipment and mineral interests. Management
believes that, when presented in conjunction with comparable GAAP
measures, free cash flow is useful to investors in evaluating our
operating performance. The following table reconciles cash provided
by operating activities to free cash flow:
Dollars are in thousands
Three Months Ended March
31,
2017 2016 Cash
provided by operating activities
$ 38,285 $ 18,748
Less: Additions to properties, plants equipment and mineral
interests
(21,658 ) (34,654 ) Free cash flow
$
16,627 $ (15,906 )
Table A - Assay Results - Q1 2017
San Sebastian (Mexico)
Zone
Drill Hole
Number
Sample
From (ft)
Sample
To (ft)
Width
(feet)
True
Width
(feet)
Gold
(oz/ton)
Silver
(oz/ton)
Zinc
(%)
Lead
(%)
Copper
(%)
West Middle Vein SS-1233 382.3
386.4 4.0 3.7
0.03 10.1 0.0 0.06
0.02 SS-1234
491.4 499.3 7.9
6.9 0.04 12.9 0.1
0.20 0.05 SS-1239
328.0 330.2 2.2
2.1 0.03 16.7 0.0
0.01 0.01
SS-1240 479.9 495.2 15.3
14.2 0.03 9.6
0.1 0.06 0.02
SS-1244 501.2 508.7
7.5 6.8 0.13
35.1 0.0 0.06 0.02
SS-1246 600.4
607.5 7.1 6.1 3.98
399.3 0.3 0.62
0.13 SS-1249 683.7
691.7 7.9 6.3
0.82 124.3 2.2
1.04 0.37 SS-1250
649.7 656.9 7.2
5.7 0.24 26.1 0.1
0.09 0.08 SS-1255
338.3 357.1 18.9
16.0 0.10 19.5 0.1
0.07 0.04
SS-1257 369.4 372.4 3.1
3.0 0.36 37.6
0.0 0.16 0.02
SS-1259 347.9 353.1
5.2 5.0 0.03
10.5 0.1 0.04 0.02
SS-1261 369.8
373.5 3.7 3.6 0.10
17.4 0.0 0.04
0.02 SS-1262 624.8
629.8 5.0 4.2
0.23 58.1 0.5 0.23
0.05 SS-1263
724.0 734.3 10.3
8.0 0.30 53.8 0.9
0.49 0.21 SS-1268
646.4 649.6 3.2
3.0 0.04 26.9 0.1
0.11 0.05
SS-1274 521.7 526.0 4.4
4.0 0.10 60.0
0.1 0.11 0.04
SS-1278 603.8 607.9
4.0 3.9 0.03
25.0 0.1 0.08 0.03
East Middle Vein SS-1231 1102.4
1104.7 2.4 2.4
0.05 18.4 0.0 0.03
0.01 West Middle Vein SS-1258
737.1 739.2 2.1
2.0 0.76 10.2 1.9
1.01 0.23 East Middle Vein
SS-1277 979.4 982.6
3.2 3.1 0.12
12.2 0.0 0.02 0.01
East Francine SS-1260 717.4
720.9 3.5 3.5
0.03 9.2 0.0 0.01
0.01 SS-1272
734.6 741.6 7.0
7.0 0.03 12.4 0.0
0.02 0.01 RC -San Judas
SSRC-166 767.7 771.0 3.3
3.1 0.01 4.3
SSRC-166 456.0
459.3 3.3 3.1 0.00
1.9
SSRC-167 574.1
577.4 3.3 3.1
0.01 4.3
SSRC-168
853.0 856.3 3.3
3.1 0.02 6.1
SSRC-178 849.7 853.0
3.3 3.1 0.00
2.3
Casa Berardi (Quebec)
Zone
Drill Hole
Number
Drill Hole
Section
Drill Hole
Azm/Dip
Sample
From
Sample
To
True
Width
(feet)
Gold
(oz/ton)
Depth From
Mine Surface
(feet)
Upper 118 Zone -530 Area CBP-0530-377
12297 180/-23 256.0
274.0 15.6 0.25
-1813.0
CBP-0530-377 12296
180/-23 291.0 316.0
21.5 0.24 -1824.0
CBP-0530-368 12263 180/23
283.0 292.0 8.7
0.35 -1609.0
CBP-0530-377 12295 180/-23
327.0 341.0 13.3
0.14 -1833.0 Lower 118 Zone -970-990 L
CBP-0970-013 12012 195/8
151.0 167.0 15.5
0.45 -3152.0 CBP-0990-030
11982 219/24 132.0
148.0 12.8 0.30
-3189.0 CBP-0970-012
12012 196/-7 131.0 167.0
32.1 0.29 -3193.0
CBP-0950-008 11925
180/-11 117.0 138.0 19.7
0.23 -3136.0
CBP-0950-002 11911 198/-29
88.0 102.0 10.9
0.21 -3157.0
CBP-0990-017 11999 201/-40
272.0 308.0 23.6
0.45 -3431.0 CBP-0990-015
12060 180/-3 82.0
112.0 29.0 0.43
-3252.0 CBP-0990-009
12091 179/-2 114.0 131.0
17.2 0.39 -3247.0
CBP-0990-012 12075
180/-1 70.0 128.0 58.0
0.37 -3246.0
CBP-0990-011 12075 179/-17
85.0 121.0 35.1
0.35 -3276.0
CBP-0990-010 12076 180/-30
110.0 154.0 39.3
0.29 -3282.0 CBP-0990-014
12061 179/-17 89.0
132.0 44.9 0.27
-3281.0 CBP-0990-007
12091 179/-36 131.0 145.0
11.8 0.25 -3327.0
CBP-0990-008 12092
178/-21 130.0 144.0 11.9
0.22 -3293.0 UG Principale 121 Zone
CBP-0790-162 12134
141/36 66.0 86.0 19.4
0.27 -2477.0
CBP-0910-079 12240 165/-21
217.0 220.0 2.6
0.40 -3028.0
CBP-0910-083 12247 159/-23
198.0 203.0 4.6
0.33 -3031.0 CBP-0910-082
12235 172/-6 346.0
352.0 5.8 0.31
-2988.0 CBP-0910-080
12237 165/-28 146.0 197.0
44.3 0.31 -3039.0 Upper
123-870/910 Area CBP-0870-096
12410 164/-41 174.0 187.0
7.1 0.25 -2962.0
CBP-0910-081 12235
172/-14 405.0 418.0 11.4
0.20 -3053.0 UG Principale 124 Zone
CBP-0290-316 12846
130/-29 367.0 384.0 9.8
0.33 -1106.0
CBP-0290-314 12824 139/-39
349.0 374.0 16.1
0.28 -1150.0
CBP-0598 12541 0/30
1010.0 1015.0 4.8 0.38
-1211.0 Surface 160 Zone Pit
CBF-160-039 15913 360/-45
827.0 945.0 115.6 0.08
-621.0 CBF-160-036
15931 360/-55 712.0
851.0 121.8 0.07
-648.0 CBF-160-053 15866
15/-55 291.0 325.0
33.5 0.13 -264.0
CBF-160-025 15885 360/-45
363.0 463.0 80.9
0.13 -302.0
CBF-160-001 15967 9/-45
121.0 272.0 119.7 0.11
-145.0 CBF-160-003
15990 360/-45 98.0
215.0 116.5 0.11 -118.0
CBF-160-040 15991
360/-45 219.0 290.0
71.1 0.11 -192.0
CBF-160-009 15990 360/-45
105.0 207.0 101.4
0.10 -125.0
CBF-160-051 15855 360/-45
420.0 479.0 54.8 0.10
-321.0 CBF-160-039
15907 360/-45 595.0
738.0 105.3 0.10
-474.0 CBF-160-052 15838
353/-48 482.0 541.0
54.5 0.10 -383.0
CBF-160-002 15959
360/-45 108.0 243.0 108.2
0.10 -129.0
CBP-160-042 15956 360/-45
202.0 344.0 130.8 0.08
-207.0 CBF-160-024
15893 7/-45 212.0
512.0 235.3 0.08 -265.0
CBF-160-035 15929
360/-45 497.0 571.0
90.8 0.07 -376.0
CBF-160-026 15884 360/-62
258.0 329.0 43.2
0.05 -265.0
CBF-160-052 15845 353/-48
236.0 349.0 78.1 0.07
-229.0 Surface 134 Area
CBS-17-727 12090 357/-53
1043.0 1076.0 26.2 0.07
-787.0 CBS-17-728
13320 359/-47 493.0
591.0 91.2 0.04
-394.0 including 493.0
521.0 21.0 0.04
-361.0 563.0
591.0 20.3 0.08
-410.0 CBS-17-737
13004 358/-47 566.0 615.0
27.9 0.02 -377.0
Greens Creek (Alaska)
Zone
Drill Hole
Number
Drill Hole
Azm/Dip
Sample
From
Sample
To
True
Width
(feet)
Silver
(oz/ton)
Gold
(oz/tn)
Zinc
(%)
Lead
(%)
Depth From
Mine Portal
(feet)
9A Definition GC4471 230/2
0.00 25.00 19.4
28.39 0.01 15.71
7.66 -182
58.00 81.50
22.8 23.05 0.04 8.49
3.84 -180
106.00
110.50 4.5 14.93 0.01
0.50 0.11 -179
174.00 178.00 4.0 18.54
0.01 4.64 2.95
-177
185.00 191.00 6.0
68.58 0.46 6.35
3.26 -177
245.80 250.50
4.3 15.71 0.03
10.65 4.57 -175
GC4474 233/8 0.00
18.00 14.0 60.52 0.02
15.13 7.26 -181
59.60 109.70 37.2 40.31
0.16 7.11 3.75
-173
175.70 189.90 10.6
32.07 0.05 8.53
4.07 -157
208.50 217.20
8.6 17.61 0.01
7.00 3.91 -153
375.20
392.00 16.1 12.38
0.05 11.25 1.71 -132
GC4478 227/12
7.90 14.40 5.1
38.58 0.02 12.89 6.40
-180
35.90 54.30 17.2
19.69 0.01 16.59
7.91 -172
65.70 89.40
21.7 52.06 0.03
10.47 5.26 -167
108.70
116.30 6.9 18.88
0.01 6.98 2.28 -158
129.50 140.00 9.6
32.67 0.04 22.69 10.58
-154
194.60 199.60 3.7
17.58 0.02 8.11
1.96 -142
221.00 229.20
6.1 29.49 0.03
23.63 4.92 -137
372.60
389.10 16.1 16.93
0.03 22.73 9.88
-108 GC4484 224/7
11.00 23.00 9.3
22.93 0.01 19.43 10.24
-178
61.00 70.40 7.4
20.55 0.12 2.28
1.14 -172
75.40 121.00
42.3 25.63 0.04
8.49 3.62 -171
GC4486 243/31 118.00
125.00 5.9 13.60
0.04 15.59 2.43
-112 GC4487 243/20
146.00 151.00 3.5
12.90 0.04 13.32 3.10
-130
201.00 206.00 4.5
15.80 0.03 5.81
0.92 -112 NWW Definition
GC4434 243/-46 373.00
376.50 2.7 15.21 0.19
7.18 3.99 -679
534.50 587.80 48.3 16.63
0.28 19.48 9.30
-797
596.00 601.00 4.8
14.09 0.22 0.50
0.54 -840 GC4447
241/-16 547.00 553.40
6.1 34.15 0.00
1.98 0.96 -544
GC4448 241/-63 219.80
233.00 11.7 47.99
0.13 22.19 13.06 -625
GC4450 241/-49
294.20 303.90 6.6
48.76 0.21 13.77 9.01
-646 GC4460
243/-40 397.40 430.00
27.9 87.12 0.32 15.41
7.52 -648
654.00
656.70 2.6 22.02 0.04
12.80 7.60 -803
728.00 731.30 2.2 33.87
0.11 9.70 5.50
-847 GC4462
243/-35 587.20 592.20 4.9
31.50 0.00 1.08
0.43 -726
784.40 790.60
3.8 19.94 0.13
6.93 3.52 -829
802.70
812.10 5.8 28.94
0.19 22.06 13.48
-838
826.60 834.90 6.1
40.07 0.35 15.86 9.26
-850 GC4466
243/-44 407.70 414.90 5.8
19.94 0.08 2.11
0.91 -680
695.00 712.50
12.6 26.19 0.22
22.91 14.12 -871
739.00
743.80 3.1 23.31
0.04 11.20 7.60
-900 GC4467 231/-43
512.00 517.70 5.2
54.55 0.35 7.77
4.19 -737
684.00 704.00
20.0 34.85 0.01
1.76 0.88 -847
GC4469 295/-76 304.50
309.30 4.6 38.35
0.30 5.29 2.59 -918
GC4463 243/-44
379.00 382.00 2.7
17.84 0.00 0.01 0.00
-662 GC4464
241/-38 447.50 455.20 5.6
18.41 0.12 11.27
4.88 -669
628.40 641.50
11.3 17.17 0.05
1.03 0.49 -774
643.50
648.00 4.4 14.41
0.05 1.35 0.59
-782
656.00 658.40 2.4
12.42 0.11 1.35 0.47
-789
808.70 810.90 1.6
154.04 2.00 1.50
0.71 -872
827.00 829.50
1.8 38.16 0.19
3.87 2.05 -882
836.20
838.20 1.5 69.66
0.20 8.17 3.66
-887
842.00 847.80 3.1
55.78 0.26 8.13 3.83
-890 GC4475
213/-75 372.80 386.70
12.5 50.70 0.07 4.09
1.71 -474 SW Definition
GC4445 241/20 502.60
504.70 1.3 37.05
0.03 16.58 9.00 -233
508.90 512.70 2.3
29.99 0.03 10.71 8.87
-231
526.60 530.80 2.5
47.53 0.03 21.50
11.20 -224
535.00 560.00
15.0 35.03 0.02
5.89 3.24 -221
GC4433 241/17 488.90
496.00 6.1 18.15
0.02 10.86 5.62
-269 SWB Definition GC4488 321/0
351.00 364.00 10.2
34.06 0.29 23.44
11.36 -337
371.00 375.00
3.2 10.46 0.37
0.04 0.02 -339
GC4489 309/-13 243.80
309.00 55.9 9.68
0.12 33.00 10.01 -382
GC4491 323/-14
262.00 281.50 15.8
13.66 0.10 21.94 4.18
-389
296.00 299.00 2.7
64.08 0.17 4.00
1.82 -396 GC4492
333/0 334.00 336.50
1.5 88.26 0.15
16.51 9.90 -336
359.40
361.00 1.2 55.23
0.43 8.25 6.20
-337 GC4494 333/-14
274.50 286.00 10.1
43.08 0.19 2.26
1.10 -397
353.30 361.20
5.5 60.32 0.05
5.43 3.00 -341 East Ore Definition
GC4477 63/5 431.00
440.80 8.3 16.67
0.04 9.58 4.31 717
GC4495 63/14
470.30 472.90 2.0
11.29 0.05 10.86 6.20
774 GC4506
63/1 311.70 314.50 2.7
12.90 0.10 5.17
1.77 653
370.70 374.60
3.7 28.97 0.13
3.84 1.93 648
GC4512 63/-89 501.30
513.50 11.9 33.85
0.11 3.25 0.97 162
GC4519 63/-78
533.50 537.00 3.2
27.65 0.05 10.86 2.72
139 GC4523
243/-78 709.00 712.00 3.0
14.50 0.04 21.80
6.60 -28 West Definition
GC4520 243/-80 16.00
18.00 1.3 17.18 0.03
3.78 1.94 -218
30.30 38.80 8.3 30.65
0.11 15.35 6.54
-232 GC4524
243/-60 100.00 103.50 2.6
13.77 0.00 1.30
0.60 -288
Lucky Friday (Idaho)
Vein
Drill Hole
Number
Drill Hole
Azm/Dip
Sample
From
Sample
To
True
Width
(feet)
Ag
(oz/ton)
Zinc
(%)
Lead
(%)
Mine
Level
Elevation
(feet)
5 GH66-20 195.1/-39.8
564.60 569.40 4.2
2.0 0.1 1.0 6578
-3198 GH65-26
156.7/-19.0 565.00 569.20
3.4 2.5 6.6 2.0
6499 -3119 GH64-41
176.5/-14.3 412.40 421.60
8.9 7.0 3.1
6.8 6396 -3016 6
GH65-26 156.7/-19.0 534.80
536.50 1.4 3.2 0.1
3.5 6490 -3110
GH64-41 176.5/-14.3
398.60 404.30 5.5
8.6 1.6 3.5 6394
-3014 20 GH65-26
156.7/-19.0 529.50 530.60
0.9 2.7 0.1 3.2
6488 -3108 GH64-41
176.5/-14.3 385.90 392.10
6.0 3.8 10.6
3.2 6391 -3011 21
GH65-26 156.7/-19.0 485.00
491.20 5.3 3.2
2.0 3.0 6475 -3095
GH64-41 176.5/-14.3
378.60 380.80 2.1
14.8 7.3 4.7 6390
-3010 30 GH66-20
195.1/-39.8 547.00 552.80
5.1 1.6 0.1 1.0
6573 -3193 GH65-26
156.7/-19.0 473.30 485.00
9.9 22.9 8.1
20.3 6472 -3092
GH64-41 176.5/-14.3
352.70 364.80 11.7 16.7
3.8 16.6 6386
-3006 40 GH64-41
176.5/-14.3 349.30 352.70
3.3 13.6 7.4 10.9
6385 -3005 41 GH64-41
176.5/-14.3 345.00 349.30
4.2 6.1 8.4
4.0 6384 -3004 50
GH64-41 176.5/-14.3 341.30
345.00 3.5 3.7 1.8
3.4 6383 -3003 60
GH64-41 176.5/-14.3
337.60 341.30 3.5 3.2
3.4 3.7 6383
-3003 GH65-27
164.0/+2.2 275.40 276.10
0.6 11.4 11.7 6.8
6443 -3063 70 GH64-41
176.5/-14.3 332.50 337.60
4.9 15.2 2.2
16.4 6382 -3002
GH65-27 164.0/+2.2 197.50
201.10 2.9 5.9
6.2 8.0 6446 -3066
80 GH65-26 156.7/-19.0
406.50 407.00 0.4
20.4 0.1 0.1 6449
-3069 GH65-27
164.0/+2.2 173.30 180.00
5.3 9.4 1.9 11.6
6447 -3067 90 GH65-27
164.0/+2.2 126.00 133.10
5.6 3.6 3.3
5.6 6449 -3069 100
GH65-27 164.0/+2.2 90.70
95.00 3.4 9.5 0.7
11.8 6451 -3071
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170508005438/en/
Hecla Mining CompanyMike WesterlundVice President - Investor
Relations800-HECLA91 (800-432-5291)Email:
hmc-info@hecla-mining.comWebsite: www.hecla-mining.com
Hecla Mining (NYSE:HL)
Historical Stock Chart
From Mar 2024 to Apr 2024
Hecla Mining (NYSE:HL)
Historical Stock Chart
From Apr 2023 to Apr 2024