Hecla Mining Company (NYSE:HL) today announced preliminary
silver and gold production results1 for the fourth quarter and full
year 2018.
2018 HIGHLIGHTS
- Silver production of 10.4 million
ounces, and a company-record gold production of 262,103
ounces.
- Silver equivalent production of 43.6
million ounces and gold equivalent production of 540,174
ounces.2
- Lead production of 20,091 tons; zinc
production of 56,023 tons.
- Cash, cash equivalents and short-term
investments of approximately $27 million at December 31, 2018, and
the revolving line of credit was undrawn.
“The economic engine and two largest mines of the Company,
Greens Creek and Casa Berardi, continue to perform strongly and
generate significant cash flow,” said Phillips S. Baker, Jr.,
Hecla’s President and CEO. “Their performance is a direct result of
our investments which have enabled record-setting throughput. San
Sebastian’s lower production is as planned, and the mining of the
sulfide bulk sample has begun. We continue to focus on increasing
the development rate in Nevada rather than production, with the
goal of setting Fire Creek up for more consistent and higher
production in the future.”
Greens Creek
At the Greens Creek mine in 2018, 8.0 million ounces of silver
and 51,493 ounces of gold were produced. For the fourth quarter,
2.2 million ounces of silver and 13,097 ounces of gold were
produced. Lower silver production, when compared to 2017, was due
to the expected lower grades but the silver production was still on
the high end of the Company’s estimates. The mill operated at an
average of 2,316 tons per day (tpd) in 2018, a record for the
mine.
Casa Berardi
At the Casa Berardi mine in 2018, 162,743 ounces of gold were
produced, including 32,096 ounces from the East Mine Crown Pillar
pit. For the fourth quarter, 35,864 ounces of gold were produced
including 4,848 ounces from the East Mine Crown Pillar pit. The
mine produced as expected, with an increase of 6,090 ounces
compared to 2017. The mill operated at a record of 3,791 tpd
in 2018 compared to 3,551 tpd in 2017 and about 1,800 tpd more
than at acquisition.
San Sebastian
At the San Sebastian mine in 2018, 2.0 million ounces of silver
and 14,979 ounces of gold were produced. For the fourth quarter,
443,302 ounces of silver and 2,928 ounces of gold were produced.
The mill operated at an average of 429 tpd in 2018.
Nevada Operations
At the newly-acquired Nevada operations, 32,888 ounces of gold
and 172,301 ounces of silver were produced since the acquisition on
July 20 as the Company focused on reorganizing the assets and
increasing the rate of development, rather than focusing on
production. For the fourth quarter, 19,099 ounces of gold and
88,156 ounces of silver were produced. During that period, ore was
processed at an average of 710 tpd.
Lucky Friday
At the Lucky Friday mine, 169,040 ounces and 13,026 ounces of
silver were produced for the year and the fourth quarter,
respectively. Production in each timeframe is lower as compared to
2017 due to the ongoing strike by unionized employees. Limited
production and capital improvements, performed by salaried staff,
and limited shipments of concentrate occurred in the fourth
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 year as follows: $15.71 for Ag,
$1,269 for Au, $1.02 for Pb, and $1.33 for Zn.
PRODUCTION SUMMARY
Fourth Quarter Ended Twelve Months
Ended
December 31,2018
December 31,2017
December 31,2018
December 31,2017
PRODUCTION
Increase/
(Decrease)
Increase/
(Decrease)
Silver (oz) 2,715,385 2,984,786
(9
)% 10,369,502 12,484,843
(17 )%
Gold (oz) 70,988 60,964
16 %
262,103 232,685
13 % Lead
(tons)1 4,703 4,308
9 %
20,091 22,734
(12 )% Zinc (tons)
13,711 12,108
13 % 56,023 55,109
2 % Greens Creek – Silver (oz)
2,163,563 2,146,223
1 % 7,953,003
8,351,883
(5 )% Greens Creek – Gold (oz)
13,097 11,565
13 % 51,493 50,855
1 % Lucky Friday – Silver (oz) 1
13,026 69,578
(81 )% 169,040 838,657
(80 )% San Sebastian – Silver (oz)
443,302 759,100
(42 )% 2,037,072
3,257,738
(37 )% San Sebastian – Gold (oz)
2,928 5,955
(51 )% 14,979 25,177
(41 )% Casa Berardi – Gold (oz) 2
35,864 43,444
(17 )% 162,743 156,653
4 % Nevada Operations – Silver (oz)3
88,156 - -
N/A 172,301 - -
N/A
Nevada Operations – Gold (oz)3 19,099 - -
N/A 32,888 - -
N/A (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 7,338 ounces of silver in the fourth quarter 2018 and
37,087 ounces of silver in 2018. It also produced 9,885 ounces of
silver for fourth quarter 2017 and 36,565 ounces of silver for
2017. (3) The Nevada operations were acquired on 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 operating mines in
Quebec, Canada and Nevada. The Company also has exploration and
pre-development properties in eight world-class silver and gold
mining districts in the U.S., Canada, and Mexico.
Cautionary Statements Regarding Preliminary Results
All measures of the Company's fourth quarter and year-end 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 fourth quarter and
year-end 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 fourth
quarter and year-end 2018 on a consolidated basis and at each of
the Greens Creek, Lucky Friday and San Sebastian mines, and fourth
quarter and year-end 2018 gold production at Casa Berardi and
Nevada operations, as well as year-end cash position. 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/20190115005243/en/
Mike WesterlundVice President – Investor Relations800-HECLA91
(800-432-5291)Investor RelationsEmail:
hmc-info@hecla-mining.comWebsite: www.hecla-mining.com
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