Hecla Mining Company (NYSE:HL) today announced certain
preliminary results1 for the second quarter of 2018.
HIGHLIGHTS
- Silver production of 2.6 million
ounces, and gold production of 60,313 ounces.
- Silver equivalent production of 10.5
million ounces or gold equivalent production of 133,158
ounces.2
- Lead production of 5,522 tons; zinc
production of 14,299 tons.
- Cash, cash equivalents and short-term
investments of approximately $245 million at June 30, 2018, an
increase of about $43 million over June 30, 2017.
“Hecla’s second quarter mine production exceeded expectations
due to continued improvements in the mines,” said Phillips S.
Baker, Jr., Hecla’s President and CEO. “Greens Creek had higher
than expected grades and had about 5% of the tons coming from
automated headings. Casa Berardi exceeded expectations due to
higher grades and the flexibility of having sources of ore from the
underground and the surface. San Sebastian production, while lower
than last year, was higher than we expected due to higher grades.
This outperformance put the cash position at the second highest in
the past six years, which we expect to deploy to acquire Klondex
early in the third quarter.”
(1) See cautionary statement regarding preliminary
statements at the end of this release. (2) Silver and gold
equivalent calculation based on average actual prices for each
metal in the second quarter as follows: $16.53 for Ag, $1,306 for
Au, $1.08 for Pb, and $1.41 for Zn.
Greens Creek
At the Greens Creek mine, 2.0 million ounces of silver and
13,720 ounces of gold were produced in the quarter. The higher
silver and gold production, when compared to the second quarter of
2017, was due to higher ore grades as a result of mine sequencing.
The mill operated at an average of 2,290 tons per day
(tpd).
Lucky Friday
At the Lucky Friday mine, 24,686 ounces of silver were produced
in the quarter. There was no production in the second quarter of
2017, as limited production performed by salaried staff during the
ongoing strike commenced in July 2017.
Casa Berardi
At the Casa Berardi mine, 42,721 ounces of gold were produced in
the quarter, including 8,979 ounces from the East Mine Crown
Pillar pit. The mine produced as expected, with an increase of
9,460 gold ounces compared to the second quarter of 2017. The mill
operated at an average of 3,845 tpd.
San Sebastian
At the San Sebastian mine, 0.6 million ounces of silver and
3,872 ounces of gold were produced in the second quarter. Although
silver and gold production compared to the second quarter of 2017
were lower, both still exceeded our estimates for the quarter due
to the amount of higher-grade stockpile material processed. The
mill operated at an average of 415 tpd.
PRODUCTION SUMMARY
Second Quarter Ended Six Months Ended
June 30, 2018 June 30, 2017
June 30, 2018 June 30,
2017
PRODUCTION
Increase/
(Decrease)
Increase/
(Decrease)
Silver 2,596,424 2,807,474
(211,050) 5,130,518 6,176,901
(1,046,383) Gold 60,313 52,561
7,752
118,120 108,674
9,446 Lead1
5,522 4,420
1,102 11,149 13,056
(1,907)
Zinc 14,299 12,966
1,333 29,510 28,503
1,007
Greens Creek – Silver
1,999,792 1,932,047
67,745 3,913,023 3,861,344
51,679
Greens Creek – Gold
13,720 12,704
1,016 26,837 26,726
111
Lucky Friday – Silver1
24,686 --
24,686 124,466 680,782
(556,316)
Casa Berardi – Gold2
42,721 33,261
9,460 82,898 69,068
13,830
San Sebastian – Silver
559,647 866,950
(307,303) 1,071,839 1,617,753
(545,914)
San Sebastian – Gold
3,872 6,596
(2,724) 8,385 12,880
(4,495) (1) Union workers at Lucky Friday have
been on strike since March 13, 2017. Limited production being
carried out by salaried staff. (2) Casa Berardi also produced
12,299 ounces of silver in the second quarter 2018 compared to
8,477 ounces of silver for second quarter 2017.
UPDATE ON ACQUISITION OF KLONDEX MINES LTD.
Today, after the Klondex Mines Ltd. (“Klondex”) annual and
special meeting of securityholders, Klondex announced that its
shareholders and securityholders approved the previously announced
proposed statutory Plan of Arrangement between Hecla and
Klondex.
Subject to customary closing conditions in accordance with the
Plan of Arrangement, the transaction is expected to close on or
about July 20, 2018.
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 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.
Cautionary Statements Regarding Preliminary Results
All measures of the Company’s second quarter 2018 operating and
financial results contained in this news release, including cash,
cash equivalents and short-term investments, are preliminary and
reflect the Company’s expected results as of the date of this news
release. Actual reported second quarter 2018 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
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 2018 on a consolidated basis and at each of the Greens
Creek, Lucky Friday and San Sebastian mines, and second quarter
2018 gold production at Casa Berardi, quarter-end cash position and
the expected closing of the Klondex acquisition. 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: https://www.businesswire.com/news/home/20180712005841/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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