HL Hecla Mining Company

Strong silver free cash flow generation affirming silver guidance

Hecla Mining Company (NYSE:HL) today announced second quarter 2023 financial and operating results.

SECOND QUARTER HIGHLIGHTS

Operational

• Produced 3.8 million ounces of silver, 7.9 million ounces in the first half of the year; third highest silver production over a six-month period in Company history.
• Restarted the mill at Keno Hill, producing 184,264 ounces of silver, with full production expected by year-end.
• Lucky Friday's silver production of 1.3 million ounces was the highest since the first quarter of 2000.
• Silver production and cost guidance affirmed; gold production guidance adjusted based on reduced underground mining and wildfires-related suspension of operations at Casa Berardi.

Financial

• Sales of $178.1 million, with 45% from silver and 35% from gold.
• Consolidated silver total cost of sales of $96.8 million and cash cost and AISC per silver ounce (each after by-product credits) of $3.32 and $11.63, respectively.3,4
• Consolidated cash flow from operations of $23.8 million for the quarter, and year to date $64.4 million; with silver operations generating $62.2 million in cash flow from operations for the quarter and year to date $151.7 million.
• Silver operations generated $38.8 million in free cash flow for the quarter, and year to date $107.4 million.2 Since 2020, silver operations have generated cash flow from operations of $788 million and free cash flow of $566 million.
• Net loss applicable to common stockholders of $(15.8) million or $(0.03) per share and adjusted net income of $15.1 million or $0.03 per share.5
• Strong balance sheet with $106.8 million in cash and cash equivalents, and available liquidity of $219 million.

Environmental, Social, Governance

• Strong safety performance with an all-injury frequency rate of 1.18, the lowest in Company history.

Strategic

• Acquired ATAC Resources on July 7th for $18.8 million in Hecla stock, adding a massive land package of over 700 square miles comprised of the Rackla and Connaught properties in the Yukon.

"Our silver operations reported another solid quarter of operational and financial performance with strong free cash flow generation and our lowest all-injury frequency rate in our history," said Phillips S. Baker Jr., President and CEO. "Greens Creek continued its strong and consistent performance, Lucky Friday produced the most silver in a quarter since 2000, and with the service hoist now operational, this mine is closer to achieving 425,000 ore tons in annual throughput by year-end, and we restarted the Keno Hill mill during the quarter."

Baker continued, "Our silver mines have generated $107 million in free cash flow in the first half of the year and in excess of $560 million since 2020. With this free cash flow, we are investing to extend the mine lives and increase the production of our mines making Hecla the fastest growing established silver producer with 17 million ounces of production expected this year and about 20 million ounces by 2025, all in the U.S. and Canada."

Baker concluded, “Silver is an essential metal in powering the transition to a green economy, particularly photovoltaics, whose rapid growth is now using 15 to 20% of global annual silver production. Hecla, with our growing, long-lived, low-cost mines, is well positioned to reliably provide the silver the world needs."

FINANCIAL OVERVIEW

In the following table and throughout this release, "total cost of sales" is comprised of cost of sales and other direct production costs and depreciation, depletion and amortization.

In Thousands unless stated otherwise

 

2Q-2023

 

1Q-2023

 

4Q-2022

 

3Q-2022

 

2Q-2022

 

YTD-2023

 

YTD-2022

FINANCIAL AND PRODUCTION SUMMARY

 

Sales

 

$

178,131

 

 

$

199,500

 

 

$

194,825

 

 

$

146,339

 

 

$

191,242

 

 

$

377,631

 

 

$

377,741

 

Total cost of sales

 

$

140,472

 

 

$

164,552

 

 

$

169,807

 

 

$

137,892

 

 

$

153,979

 

 

$

305,024

 

 

$

295,049

 

Gross profit

 

$

37,659

 

 

$

34,948

 

 

$

25,018

 

 

$

8,447

 

 

$

37,263

 

 

$

72,607

 

 

$

82,692

 

Net(loss) applicable to common stockholders

 

$

(15,832

)

 

$

(3,311

)

 

$

(4,590

)

 

$

(23,664

)

 

$

(13,661

)

 

$

(19,143

)

 

$

(9,646

)

Basic (loss) per common share (in dollars)

 

$

(0.03

)

 

$

(0.01

)

 

$

(0.01

)

 

$

(0.04

)

 

$

(0.03

)

 

$

(0.03

)

 

$

(0.02

)

Adjusted EBITDA1

 

$

67,739

 

 

$

61,903

 

 

$

62,261

 

 

$

26,555

 

 

$

70,474

 

 

$

129,642

 

 

$

128,676

 

Net Debt to Adjusted EBITDA1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2.1

 

 

 

1.9

 

Cash provided by operating activities

 

$

23,777

 

 

$

40,603

 

 

$

36,120

 

 

$

(24,322

)

 

$

40,183

 

 

$

64,380

 

 

$

78,092

 

Capital Expenditures

 

$

(51,468

)

 

$

(54,443

)

 

$

(56,140

)

 

$

(37,430

)

 

$

(34,329

)

 

$

(105,911

)

 

$

(55,807

)

Free Cash Flow2

 

$

(27,691

)

 

$

(13,840

)

 

$

(20,020

)

 

$

(61,752

)

 

$

5,854

 

 

$

(41,531

)

 

$

22,285

 

Silver ounces produced

 

 

3,832,559

 

 

 

4,040,969

 

 

 

3,663,433

 

 

 

3,549,392

 

 

 

3,645,454

 

 

 

7,873,528

 

 

 

6,970,162

 

Silver payable ounces sold

 

 

3,360,694

 

 

 

3,604,494

 

 

 

3,756,701

 

 

 

2,479,724

 

 

 

3,387,909

 

 

 

6,965,188

 

 

 

6,075,170

 

Gold ounces produced

 

 

35,251

 

 

 

39,717

 

 

 

43,634

 

 

 

44,747

 

 

 

45,719

 

 

 

74,822

 

 

 

87,361

 

Gold payable ounces sold

 

 

31,961

 

 

 

39,619

 

 

 

40,097

 

 

 

40,443

 

 

 

44,225

 

 

 

71,580

 

 

 

85,278

 

Cash Costs and AISC, each after by-product credits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Silver cash costs per ounce 3

 

$

3.32

 

 

$

2.14

 

 

$

4.79

 

 

$

3.43

 

 

$

(1.14

)

 

$

2.70

 

 

$

(0.07

)

Silver AISC per ounce 4

 

$

11.63

 

 

$

8.96

 

 

$

13.98

 

 

$

12.93

 

 

$

8.08

 

 

$

10.21

 

 

$

7.75

 

Gold cash costs per ounce 3

 

$

1,658

 

 

$

1,775

 

 

$

1,696

 

 

$

1,349

 

 

$

1,371

 

 

$

1,725

 

 

$

1,440

 

Gold AISC per ounce 4

 

$

2,147

 

 

$

2,392

 

 

$

2,075

 

 

$

1,669

 

 

$

1,605

 

 

$

2,286

 

 

$

1,680

 

Realized Prices

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Silver, $/ounce

 

$

23.67

 

 

$

22.62

 

 

$

22.03

 

 

$

18.30

 

 

$

20.68

 

 

$

23.12

 

 

$

22.45

 

Gold, $/ounce

 

$

1,969

 

 

$

1,902

 

 

$

1,757

 

 

$

1,713

 

 

$

1,855

 

 

$

1,928

 

 

$

1,867

 

Lead, $/pound

 

$

0.99

 

 

$

1.02

 

 

$

1.05

 

 

$

0.95

 

 

$

0.97

 

 

$

1.00

 

 

$

1.02

 

Zinc, $/pound

 

$

1.13

 

 

$

1.39

 

 

$

1.24

 

 

$

1.23

 

 

$

1.44

 

 

$

1.26

 

 

$

1.61

 

 

Sales in the second quarter declined by 11% to $178.1 million from the first quarter of 2023 ("prior quarter") due to lower quantities of all metals sold and lower realized lead and zinc prices, partially offset by higher precious metals prices.

Gross profit increased to $37.7 million, an increase of 8% over the prior quarter, as lower total cost of sales attributable to lower quantities of metals sold offset lower sales.

Net loss applicable to common stockholders was $(15.8) million in the second quarter due to:

• Increased ramp-up and suspension costs of $5.0 million, reflecting the impact of the suspension of operations at Casa Berardi in June due to wildfires in Quebec and the start-up of Keno Hill.
• Increased provision for closed operations and environmental matters of $2.1 million reflecting adjustments to the reclamation costs at the legacy Johnny M and Durita properties.
• An unrealized loss on investments of $5.6 million compared to a gain of $2.2 million, reflecting changes in the fair value of our marketable securities portfolio.
• A foreign exchange loss of $3.9 million compared to a gain of $0.1 million, reflecting the impact of the appreciation of the Canadian dollar on our monetary assets and liabilities.
• Increased income and mining tax expense of $1.9 million, reflecting increased taxable income from our U.S. assets.

The above items were partly offset by:

• Lower adjustments of inventory to net realizable value of $1.5 million at our Casa Berardi and Nevada operations.
• Lower depreciation, depletion, and amortization expense of $6.3 million, reflecting the impact of the suspension of operations in June at Casa Berardi and lower silver sales.

Consolidated silver’s total cost of sales in the second quarter decreased by 4% to $96.8 million from the prior quarter, primarily due to lower concentrate tons sold, partially offset by higher production costs at Lucky Friday. Cash costs and AISC per silver ounce, each after by-product credits, were $3.32 and $11.63, respectively.3,4 The increase in cash costs per ounce was due to higher production costs at Lucky Friday, lower consolidated silver production, and lower base metal by-product credits attributable to lower realized prices partially offset by higher Greens Creek gold production and realized price. AISC was further impacted by higher planned sustaining capital spending at the silver operations.3,4

Consolidated total gold cost of sales decreased by 32% to $43.6 million in the second quarter due to lower production costs attributable to the June wildfires-related suspension at Casa Berardi. Cash costs and AISC per gold ounce, each after by-product credits, were $1,658 and $2,147, respectively.3,4 The decrease in cash costs per ounce was attributable to lower production costs partially offset by lower gold production at Casa Berardi, with AISC also impacted by lower sustaining capital spend.

Adjusted EBITDA for the second quarter increased by 9% to $67.7 million compared to the prior quarter due to higher gross profit, lower general and administrative expenses, and monetization of zinc hedges. During the quarter, average zinc prices declined to $1.15/lb., the lowest since April 2020 and a 19% decrease over the prior quarter. The Company monetized its zinc hedge contracts for proceeds of $7.6 million during the quarter.

The ratio of net debt to Adjusted EBITDA increased to 2.1 for the second quarter due primarily to the wildfires-related suspension at the Casa Berardi mine. With Keno Hill's ongoing ramp-up to full production, and Casa Berardi resuming production, the Company expects net debt to Adjusted EBITDA ratio to decline to less than the Company's target of 2.1

Cash and cash equivalents at the end of the second quarter were $106.8 million and included $31 million drawn on the revolving credit facility. Available liquidity was $219 million as of the end of the quarter.

Cash provided by operating activities was $23.8 million and decreased by $16.8 million over the prior quarter primarily due to unfavorable working capital changes partially attributable to the increase in product inventory at the Lucky Friday and Keno Hill as it commenced production during the quarter, and payment of 2022 incentive compensation.

Capital expenditures were $51.5 million (net of finance leases of $15.2 million) in the second quarter, compared to $54.4 million in the prior quarter (net of finance leases of $0.9 million). Capital spend at Casa Berardi was for purchases of open pit equipment for approximately $11.9 million (partially financed by leases of $6.6 million) as the mine begins the transition from underground and open pit production to all production from surface operations. The increase in Greens Creek's capital spend was related to the timing of equipment purchases and seasonal surface projects, with the increase in Lucky Friday's capital spend also impacted by the timing of equipment purchases and the service hoist and coarse ore bunker projects. Keno Hill's capital spend was $3.5 million (net of finance leases of $6.7 million) and declined over the prior quarter as the mine began ramp-up to full production during the quarter.

Free cash flow for the quarter was negative $27.7 million, compared to negative $13.8 million in the prior quarter. The decrease in free cash flow was attributable to lower cash flow from operations attributable to unfavorable working capital changes during the quarter.2

Forward Sales Contracts for Base Metals and Foreign Currency

The Company uses financially settled forward sales contracts to manage exposures to zinc and lead price changes in forecasted concentrate shipments. On June 30, 2023, the Company had contracts covering approximately 39% of the forecasted payable lead production from 2023 - 2025 at an average price of $0.99 per pound.

The Company also manages CAD exposure through forward contracts. At June 30, 2023, the Company had hedged approximately 48% of forecasted Casa Berardi CAD direct production costs through 2026 at an average CAD/USD rate of 1.32. The Company has also hedged approximately 22% of Casa Berardi capital costs through 2026 at 1.35. At Keno Hill, 54% of the total planned spend for 2023 and 2024 is hedged at an average CAD/USD rate of 1.36.

OPERATIONS OVERVIEW

Greens Creek Mine - Alaska

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dollars are in thousands except cost per ton

2Q-2023

1Q-2023

4Q-2022

3Q-2022

2Q-2022

YTD-2023

YTD-2022

GREENS CREEK

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tons of ore processed

 

232,465

 

 

233,167

 

 

230,225

 

 

229,975

 

 

209,558

 

 

465,632

 

 

421,245

 

Total production cost per ton

$

194.94

 

$

198.60

 

$

211.29

 

$

185.34

 

$

197.84

 

$

196.77

 

$

194.98

 

Ore grade milled - Silver (oz./ton)

 

12.8

 

 

14.4

 

 

13.1

 

 

13.6

 

 

14.0

 

 

13.6

 

 

13.9

 

Ore grade milled - Gold (oz./ton)

 

0.10

 

 

0.08

 

 

0.08

 

 

0.07

 

 

0.08

 

 

0.09

 

 

0.08

 

Ore grade milled - Lead (%)

 

2.5

 

 

2.6

 

 

2.6

 

 

2.4

 

 

3.0

 

 

2.6

 

 

2.9

 

Ore grade milled - Zinc (%)

 

6.5

 

 

6.0

 

 

6.7

 

 

6.3

 

 

7.2

 

 

6.2

 

 

6.9

 

Silver produced (oz.)

 

2,355,674

 

 

2,772,859

 

 

2,433,275

 

 

2,468,280

 

 

2,410,598

 

 

5,128,533

 

 

4,840,380

 

Gold produced (oz.)

 

16,351

 

 

14,884

 

 

12,989

 

 

11,412

 

 

12,413

 

 

31,235

 

 

23,815

 

Lead produced (tons)

 

4,726

 

 

5,202

 

 

4,985

 

 

4,428

 

 

5,184

 

 

9,928

 

 

10,067

 

Zinc produced (tons)

 

13,255

 

 

12,482

 

 

13,842

 

 

12,580

 

 

13,396

 

 

25,737

 

 

25,890

 

Sales

$

95,891

 

$

98,611

 

$

95,374

 

$

60,875

 

$

92,723

 

$

194,502

 

$

178,813

 

Total cost of sales

$

(63,054

)

$

(66,288

)

$

(70,075

)

$

(52,502

)

$

(60,506

)

$

(129,342

)

$

(110,143

)

Gross profit

$

32,837

 

$

32,323

 

$

25,299

 

$

8,373

 

$

32,217

 

$

65,160

 

$

68,670

 

Cash flow from operations

$

43,302

 

$

43,346

 

$

44,769

 

$

7,749

 

$

41,808

 

$

86,648

 

$

98,103

 

Exploration

$

1,760

 

$

448

 

$

1,050

 

$

3,776

 

$

929

 

$

2,208

 

$

1,094

 

Capital additions

$

(8,828

)

$

(6,658

)

$

(12,150

)

$

(6,988

)

$

(14,668

)

$

(15,486

)

$

(17,760

)

Free cash flow 2

$

36,234

 

$

37,136

 

$

33,669

 

$

4,537

 

$

28,069

 

$

73,370

 

$

81,437

 

Cash cost per ounce, after by-product credits 3

$

1.33

 

$

1.16

 

$

4.26

 

$

2.65

 

$

(3.29

)

$

1.23

 

$

(2.09

)

AISC per ounce, after by-product credits 4

$

5.34

 

$

3.82

 

$

8.61

 

$

7.07

 

$

3.10

 

$

4.51

 

$

2.47

 

 

Greens Creek produced 2.4 million ounces of silver in the second quarter, a decrease of 15% over the prior quarter due to expected lower mined grades. Gold production increased by 10% to 16,351 ounces due to higher grades; zinc and lead production was consistent with the prior quarter. Throughput for the quarter was 2,555 tons per day ("tpd"), and the mine remains on track to achieve an annual throughput of 2,600 tpd by year-end.

Sales in the second quarter were $95.9 million, a decrease of 3% over the prior quarter due to lower realized prices for base metals, primarily zinc, and lower payable metals sold (except gold), partially offset by higher realized prices for silver and gold. Total cost of sales were $63.1 million, and decreased by 5% over the prior quarter due to lower sales volumes, and lower production costs attributable to lower fuel prices. Cash costs and AISC per silver ounce, each after by-product credits, were $1.33 and $5.34 and increased over the prior quarter as lower production costs were offset by lower base metal by-product credits (primarily zinc, due to lower prices) and lower silver production. Increased AISC per silver ounce was attributable to higher sustaining capital spend of $8.8 million due to timing of equipment purchases and surface projects.3,4

Cash flow from operations was $43.3 million, in line with the prior quarter. Capital spend was $8.8 million (all sustaining) during the quarter, an increase of $2.2 million over the prior quarter due to the timing of equipment purchases and seasonal construction projects. Free cash flow for the quarter was $36.2 million, a slight decrease over the prior quarter due to higher exploration and capital spend. The Greens Creek mine generated $73.4 million in free cash flow during the first half of 2023.2

Lucky Friday Mine - Idaho

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dollars are in thousands except cost per ton

 

2Q-2023

 

1Q-2023

 

4Q-2022

 

3Q-2022

 

2Q-2022

 

YTD-2023

 

YTD-2022

LUCKY FRIDAY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tons of ore processed

 

 

94,043

 

 

 

95,303

 

 

 

90,935

 

 

 

90,749

 

 

 

97,497

 

 

 

189,346

 

 

 

175,222

 

Total production cost per ton

 

$

248.65

 

 

$

210.72

 

 

$

232.73

 

 

$

207.10

 

 

$

211.45

 

 

$

229.56

 

 

$

227.30

 

Ore grade milled - Silver (oz./ton)

 

 

14.3

 

 

 

13.8

 

 

 

14.0

 

 

 

12.5

 

 

 

13.2

 

 

 

14.1

 

 

 

12.7

 

Ore grade milled - Lead (%)

 

 

9.1

 

 

 

8.8

 

 

 

9.1

 

 

 

8.5

 

 

 

8.8

 

 

 

9.0

 

 

 

8.5

 

Ore grade milled - Zinc (%)

 

 

4.2

 

 

 

4.1

 

 

 

4.1

 

 

 

4.2

 

 

 

3.9

 

 

 

4.2

 

 

 

3.8

 

Silver produced (oz.)

 

 

1,286,666

 

 

 

1,262,464

 

 

 

1,224,199

 

 

 

1,074,230

 

 

 

1,226,477

 

 

 

2,549,130

 

 

 

2,114,335

 

Lead produced (tons)

 

 

8,180

 

 

 

8,034

 

 

 

7,934

 

 

 

7,172

 

 

 

8,147

 

 

 

16,214

 

 

 

14,127

 

Zinc produced (tons)

 

 

3,338

 

 

 

3,313

 

 

 

3,335

 

 

 

3,279

 

 

 

3,370

 

 

 

6,651

 

 

 

5,822

 

Sales

 

$

42,648

 

 

$

49,110

 

 

$

45,434

 

 

$

28,460

 

 

$

35,880

 

 

$

91,758

 

 

$

73,920

 

Total cost of sales

 

$

(32,190

)

 

$

(34,534

)

 

$

(32,819

)

 

$

(24,166

)

 

$

(30,348

)

 

$

(66,724

)

 

$

(59,613

)

Gross profit

 

$

10,458

 

 

$

14,576

 

 

$

12,615

 

 

$

4,294

 

 

$

5,532

 

 

$

25,034

 

 

$

14,307

 

Cash flow from operations

 

$

18,893

 

 

$

46,132

 

 

$

(7,437

)

 

$

11,624

 

 

$

21,861

 

 

$

65,025

 

 

$

33,626

 

Capital additions

 

$

(16,317

)

 

$

(14,707

)

 

$

(13,714

)

 

$

(16,125

)

 

$

(11,501

)

 

$

(31,024

)

 

$

(21,153

)

Free cash flow 2

 

$

2,576

 

 

$

31,425

 

 

$

(21,151

)

 

$

(4,501

)

 

$

10,360

 

 

$

34,001

 

 

$

12,473

 

Cash cost per ounce, after by-product credits 3

 

$

6.96

 

 

$

4.30

 

 

$

5.82

 

 

$

5.23

 

 

$

3.07

 

 

$

5.64

 

 

$

4.54

 

AISC per ounce, after by-product credits 4

 

$

14.24

 

 

$

10.69

 

 

$

12.88

 

 

$

15.98

 

 

$

9.91

 

 

$

12.48

 

 

$

11.27

 

 

Lucky Friday produced 1.3 million ounces of silver, an increase of 2% over the prior quarter due to higher grades partially offset by lower throughput due to the local utility's unplanned replacement of the main electrical transformer. Second quarter silver production was the highest since the first quarter of 2000, marking the fifth consecutive quarter of silver production exceeding one million ounces. Throughput for the quarter was 1,033 tpd and is expected to increase to an annual rate of 425,000 tons by year end.

Sales in the second quarter were $42.6 million, a decrease of 13% over the prior quarter, attributable to a combination of lower payable metals sold and lower realized base metals prices, partially offset by higher realized silver prices. Lower payable metals sold was due to an increase in silver concentrate inventory (impact of approximately $3 million) as maintenance activities impacted a smelter’s ability to take delivery of certain shipments at quarter end, with the sales deferred to the third quarter. Total cost of sales were $32.2 million, a decrease of 7% over the prior quarter primarily due to lower concentrate volumes sold. Production costs at the mine increased over the prior quarter due to higher labor costs related to the new Collective Bargaining Agreement ("CBA") signed in the first quarter of 2023 (CBA related costs are expected to be $2.5 million for the year), and higher consumables costs partially offset by lower fuel costs. Cash costs and AISC per silver ounce, each after by-product credits, were $6.96 and $14.24 respectively, with the increase primarily attributable to higher production costs, lower zinc by-product credits due to lower realized prices, partially offset by higher silver production.3,4 AISC per silver ounce was further unfavorably impacted by higher sustaining capital spend reflecting accelerated project completion.3,4

Cash flow from operations was $18.9 million, a decrease of $27.2 million over the prior quarter. The decrease was attributable to lower sales, higher production costs, unfavorable working capital changes and the prior quarter's favorable impact of $6.7 million receipt related to payment for a silver concentrate shipment shipped in the fourth quarter of 2022. Capital expenditures for the quarter totaled $16.3 million (net of $2.0 million in finance leases), comprised of approximately $9.2 million each in sustaining and growth capital, which included the coarse ore bunker and the service hoist projects. The service hoist project was completed in early August, and the coarse ore bunker project which will decouple the mill from the mine, is expected to be completed in the fourth quarter. Free cash flow was $2.6 million, a decrease of $28.8 million over the prior quarter primarily due to the decrease in cash flow from operations and higher capital spend during the quarter.2 Lucky Friday generated $34.0 million in free cash flow during the first half of 2023.2

Casa Berardi - Quebec

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dollars are in thousands except cost per ton

 

2Q-2023

 

1Q-2023

 

4Q-2022

 

3Q-2022

 

2Q-2022

 

YTD-2023

 

YTD-2022

CASA BERARDI

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tons of ore processed - underground

 

 

94,124

 

 

 

110,245

 

 

 

160,150

 

 

 

162,215

 

 

 

176,576

 

 

 

204,369

 

 

 

338,185

 

Tons of ore processed - surface pit

 

 

224,580

 

 

 

318,909

 

 

 

250,883

 

 

 

227,726

 

 

 

225,042

 

 

 

543,489

 

 

 

449,586

 

Tons of ore processed - total

 

 

318,704

 

 

 

429,154

 

 

 

411,033

 

 

 

389,941

 

 

 

401,618

 

 

 

747,858

 

 

 

787,771

 

Surface tons mined - ore and waste

 

 

2,461,196

 

 

 

2,136,993

 

 

 

2,657,638

 

 

 

2,822,906

 

 

 

2,149,412

 

 

 

4,598,189

 

 

 

4,041,751

 

Total production cost per ton

 

$

97.69

 

 

$

107.95

 

 

$

125.75

 

 

$

114.52

 

 

$

113.07

 

 

$

103.58

 

 

$

115.46

 

Ore grade milled - Gold (oz./ton) - underground

 

 

0.14

 

 

 

0.13

 

 

 

0.15

 

 

 

0.15

 

 

 

0.19

 

 

 

0.13

 

 

 

0.17

 

Ore grade milled - Gold (oz./ton) - surface pit

 

 

0.04

 

 

 

0.05

 

 

 

0.05

 

 

 

0.06

 

 

 

0.05

 

 

 

0.05

 

 

 

0.05

 

Ore grade milled - Gold (oz./ton) - combined

 

 

0.07

 

 

 

0.07

 

 

 

0.09

 

 

 

0.10

 

 

 

0.10

 

 

 

0.07

 

 

 

0.09

 

Gold produced (oz.) - underground

 

 

10,226

 

 

 

11,788

 

 

 

20,365

 

 

 

22,181

 

 

 

22,866

 

 

 

22,014

 

 

 

42,240

 

Gold produced (oz.) - surface pit

 

 

8,675

 

 

 

12,898

 

 

 

10,344

 

 

 

11,154

 

 

 

10,440

 

 

 

21,573

 

 

 

21,306

 

Gold produced (oz.) - total

 

 

18,901

 

 

 

24,686

 

 

 

30,709

 

 

 

33,335

 

 

 

33,306

 

 

 

43,587

 

 

 

63,546

 

Silver produced (oz.) - total

 

 

5,956

 

 

 

5,645

 

 

 

5,960

 

 

 

6,882

 

 

 

8,379

 

 

 

11,601

 

 

 

15,447

 

Sales

 

$

36,946

 

 

$

50,998

 

 

$

53,458

 

 

$

56,939

 

 

$

62,639

 

 

$

87,944

 

 

$

124,740

 

Total cost of sales

 

$

(42,576

)

 

$

(62,998

)

 

$

(65,328

)

 

$

(59,532

)

 

$

(61,870

)

 

$

(105,574

)

 

$

(124,038

)

Gross (loss) profit

 

$

(5,630

)

 

$

(12,000

)

 

$

(11,870

)

 

$

(2,593

)

 

$

769

 

 

$

(17,630

)

 

$

702

 

Cash flow from operations

 

$

(8,148

)

 

$

(684

)

 

$

10,188

 

 

$

8,721

 

 

$

7,417

 

 

$

(8,832

)

 

$

15,506

 

Exploration

 

$

1,107

 

 

$

1,054

 

 

$

1,637

 

 

$

2,624

 

 

$

1,341

 

 

$

2,161

 

 

$

3,976

 

Capital additions

 

$

(20,816

)

 

$

(17,086

)

 

$

(12,995

)

 

$

(10,771

)

 

$

(8,093

)

 

$

(37,902

)

 

$

(15,901

)

Free cash flow 2

 

$

(27,857

)

 

$

(16,716

)

 

$

(1,170

)

 

$

574

 

 

$

665

 

 

$

(44,573

)

 

$

3,581

 

Cash cost per ounce, after by-product credits 3

 

$

1,658

 

 

$

1,775

 

 

$

1,696

 

 

$

1,349

 

 

$

1,371

 

 

$

1,725

 

 

$

1,440

 

AISC per ounce, after by-product credits 4

 

$

2,147

 

 

$

2,392

 

 

$

2,075

 

 

$

1,669

 

 

$

1,605

 

 

$

2,286

 

 

$

1,680

 

 

Casa Berardi produced 18,901 ounces of gold in the second quarter, a decrease of 23% over the prior quarter, primarily due to lower tons mined and milled because of wildfires-related suspension in June. The mill operated at an average of 4,600 tpd during the first two months of the quarter.

Lower production during the quarter led to lower sales of $36.9 million, a 28% decrease over the prior quarter, and lower total cost of sales of $42.6 million, 32% lower compared to the prior quarter. Cash costs and AISC per gold ounce, each after by-product credits, were $1,658 and $2,147 respectively and decreased over the prior quarter due to lower production costs which offset the decline in gold production. AISC was further favorably impacted by lower sustaining capital spend as capital allocated to growth increased during the quarter.3,4

Cash flow from operations was negative $8.1 million, a decrease of $7.5 million over the prior quarter due to lower sales partially offset by lower costs. Capital spend for the quarter was $20.8 million (net of finance leases of $6.6 million) with $9.0 million and $18.4 million in sustaining and growth capital spend, respectively. Growth capital spend included the increase in equipment fleet of $11.9 million for the open pit operations as the mine is beginning to transition from an underground/open pit operation to an open pit only operation. Free cash flow for the quarter was negative $27.9 million, compared to negative free cash flow in the prior quarter of $16.7 million due to lower cash flow from operations and higher capital spending.2

The Company announced in May 2023 that the Casa Berardi mine is beginning to transition from an underground/open pit operation to an open pit only operation. As part of that transition, the lower margin East Mine underground operations were closed in July. The better margin stopes at the underground West Mine are planned to be mined until mid-2024, at which time most underground activity will stop except exploration. To increase the productivity of the surface operations, the Company has begun insourcing with the purchase of $11.9 million of mobile mining equipment, and another $4 million is expected to be spent in the third quarter.

The Company expects to release an updated technical report in the first quarter of 2024. After closure of the underground operations in 2024, Casa Berardi will mine the 160 open pit until 2027 and is expected to be free cash flow positive. During a period of investment from 2028 to 2030, the Company expects no production while the permitting is being completed, investing in infrastructure and equipment, and exposing the first ore. Significant free cash flow is expected after 2030.

East Mine closure and June’s wildfires have reduced production guidance by about 25,000 ounces in 2023 and have increased AISC per gold ounce (after by-product credits) guidance by approximately $200 per ounce. For further details, see the Guidance section of this release.

Keno Hill - Yukon Territory

At Keno Hill, the mill restarted and began processing lower grade, stockpiled ore in June, producing 184,264 ounces of silver for the quarter The mill operated as expected at 330 tpd, which is 73% of projected year-end throughput, processing stockpiled, lower-grade ore of 17 ounces per ton (“opt”). The mine advanced the primary development sufficiently to initiate ore mining. The mill reconciled well to the model in the quarter with slightly fewer tons and better grades resulting in the expected silver and lead content with more zinc. Silver production is expected to exceed 2.5 million ounces in 2023.

Capital spend during the quarter was $3.4 million (net of $6.7 million in finance leases), and included mine development, surface infrastructure projects, and mill upgrades. Keno Hill will be included in silver operations reporting by the end of the year.

EXPLORATION AND PRE-DEVELOPMENT

Exploration and pre-development expenses totaled $6.9 million for the second quarter and $11.9 million for the first half of the year. Exploration activities during the quarter primarily focused on underground targets at Greens Creek, and Keno Hill. Highlights include:

• Keno Hill: Exploration drilling discovered high-grade mineralization in the Bermingham Townsite vein located within 500 feet of planned mine infrastructure.
• Greens Creek: Exploration and definition drilling continued to define and expand mineralization on strike of current mineralization with strong assay results from four targeted areas.

Keno Hill, Yukon Territory

At Keno Hill, $3.7 million of exploration is expected for the year. This quarter’s focus is on extending mineralization and resource conversion at the high-grade Bear Zone and defining new mineral resources at the Townsite Zone. During the first half, one underground drill completed over 11,000 feet of definition drilling, while two surface core drills completed over 13,000 feet of exploration drilling targeting the Bear and Townsite zones.

Bear Zone: Definition drilling targeted extending the Bear Zone to the North towards the Ruby Fault, which is interpreted to constrain mineralization of both the Bermingham Main and Bear veins. At the Bear vein, drilling results suggest that grade continues and strengthens outside the currently programmed stopes and is open for expansion. Highlights include:

• 44.9 oz/ton silver, 1.7% lead, and 0.8% zinc over 11.1 feet
• 120.9 oz/ton silver, 1.5% lead, and 3.3% zinc over 2.8 feet
• 47.5 oz/ton silver, 0.8% lead, and 0.2% zinc over 7.8 feet
• 79.4 oz/ton silver, 3.0% lead, and 1.3% zinc over 6.1 feet

Townsite Zone: High-grade mineralization was discovered in the Townsite vein approximately 2,000 feet southwest of the historical Townsite Mine stopes, and at a depth of 1,300 feet. This high-grade mineralization is open for expansion and continues to confirm the exploration potential within the district. Assay results to date include:

• 25.5 oz/ton silver, 0.9% lead, and 0.3% zinc over 9.2 feet, including 108.2 oz/ton silver, 4.5% lead, and 1.0% zinc over 1.7 feet

Greens Creek, Alaska

At Greens Creek, $8.0 million of exploration is focused on expanding mineralization both from surface and underground. Four underground core drills completed over 70,000 feet of drilling in 132 holes focused on resource conversion in the 200 South, East, Gallagher, Upper Plate, 9A, and West ore zones and exploration targeting the southern extensions of the 200 South, and Gallagher zones. Additionally, two helicopter supported core drills completed over 4,000 feet of drilling in 12 holes targeting near mine extensions to the Upper Plate and East ore zones. Assay results have been received for drilling in the 200 South, East, Gallagher, Upper Plate, and West areas, and results continue to confirm and expand mineral zones. Highlights include:

200 South Zone:

• 17.0 oz/ton silver, 0.19 oz/ton gold, 3.3% zinc, and 1.9% lead over 8.1 feet

East Zone:

• 12.6 oz/ton silver, 0.05 oz/ton gold, 7.7% zinc, and 3.5% lead over 5.7 feet
• 20.9 oz/ton silver, 0.04 oz/ton gold, 3.4% zinc, and 2.2% lead over 3.6 feet

Gallagher Zone:

• 7.9 oz/ton silver, 0.22 oz/ton gold, 10.5% zinc and 4.8% lead over 45.3 feet
• 15.0 oz/ton silver, 0.28 oz/ton gold, 2.6% zinc, and 1.3% lead over 9.0 feet
• 9.8 oz/ton silver, 0.19 oz/ton gold, 10.8% zinc, and 2.9% lead over 25.7 feet
• 21.6 oz/ton silver, 0.07 oz/ton gold, 0.6% zinc, and 0.4% lead over 41.3 feet

Upper Plate Zone: Underground and surface drilling has expanded resources over 600 and 300 feet of strike length, respectively. Initial surface drillholes completed to date have intercepted significant lengths of base metal rich white ore lithologies. Assay results from these initial surface drillholes are expected in the third quarter. Results to date indicate that drilling is upgrading and expanding mineralization in the Upper Plate Zone. Highlights from this drilling include:

• 23.0 oz/ton silver, 0.05 oz/ton gold, 6.2% zinc and 3.1% lead over 13.2 feet
• 20.7 oz/ton silver, 0.06 oz/ton gold, 1.7% zinc, and 0.7% lead over 18.0 feet

West Zone: Underground drilling expanded the strike length 550 feet with strong, high-grade mineralization over significant widths. Highlights from this drilling include:

• 63.4 oz/ton silver, 0.84 oz/ton gold, 11.9% zinc and 3.8% lead over 15.2 feet
• 13.0 oz/ton silver, 0.11 oz/ton gold, 14.4% zinc, and 3.4% lead over 8.3 feet

Detailed complete drill assay highlights can be found in Table A at the end of the release.

DIVIDENDS

Common Stock

The Board of Directors declared a quarterly cash dividend of $0.00625 per share of common stock, consisting of $0.00375 per share for the minimum dividend component and $0.0025 per share for the silver-linked component. The common stock dividend is payable on or about September 7, 2023, to stockholders of record on August 24, 2023. The second quarter realized silver price was $23.67, satisfying the criterion for the Company’s common stock silver-linked dividend policy component.

Preferred Stock

The Board of Directors elected to declare a quarterly cash dividend of $0.875 per share of preferred stock, payable on or about October 2, 2023, to stockholders of record on September 15, 2023.

2023 GUIDANCE 6

The Company has updated its annual gold production, cost, and capital guidance as below. There is no change to silver production guidance.

Gold production guidance for Greens Creek is increased to reflect higher gold production. Wildfires-related suspension of operations in June and the closure of the East Mine underground operations has resulted in lower expected gold production for 2023. Three-year gold production outlook has also decreased to include the closure of underground operations in mid-2024, and transition to full surface operations in 2024.

2023 Production Outlook

 

Silver Production (Moz)

Gold Production (Koz)

Silver Equivalent (Moz)

Gold Equivalent (Koz)

 

 

Previous

Current

Previous

Current

Previous

Current

2023 Greens Creek *

9.0 - 9.5

50.0 - 55.0

55.0 - 65.0

21.0 - 22.0

21.5 - 22.5

255 – 265

255 - 270

2023 Lucky Friday *

4.5 - 5.0

N/A

N/A

8.5 - 9.0

8.5 - 9.0

105 - 110

105 - 110

2023 Casa Berardi

N/A

110.0 - 115.0

85.0 - 95.0

9.0 - 9.5

7.0 - 8.0

110 – 115

85 – 95

2023 Keno Hill*

2.5 - 3.0

N/A

N/A

2.5 - 3.0

2.5 - 3.0

35 - 40

35 - 40

 

 

 

 

 

 

 

 

2023 Total

16.0 - 17.5

160.0 - 170.0

140.0 - 160.0

41.0 - 44.5

40.0 - 43.0

505 – 535

480 – 520

2024 Total

17.5 - 18.5

145.0 - 161.0

105.0 - 125.0

42.5 - 44.5

38.5 - 41.5

510 - 540

465 - 505

2025 Total

18.5 - 20.0

142.0 - 161.5

100.0 - 115.0

41.0 - 44.0

38.0 - 41.0

495 - 535

460 – 495

 

* Equivalent ounces include Lead and Zinc production

2023 Cost Outlook

At Greens Creek, guidance for cash costs, per silver ounce (net of by-products) has increased slightly to reflect lower zinc prices by-product credits due to lower zinc prices. Guidance for AISC, per silver ounce (each after by-product credits) has decreased due to higher expected gold production, and lower planned sustaining capital spend. At Lucky Friday, guidance for cash costs per silver ounce (each after by-product credits) is increased due to higher expected labor costs attributable to the CBA, and lower zinc by-product credits due to lower zinc prices. Lucky Friday guidance for AISC, per silver ounce (each after by-product credits) has been increased to reflect higher expected sustaining capital. Impact of the CBA changes on labor costs is approximately $2.5 million in 2023. Consolidated AISC per silver ounce (after by-product credits) is unchanged.

At Casa Berardi mine, increase in cash costs and AISC, per gold ounce, each after by-product credits, is primarily due to lower gold production due to wildfires-related suspension of operations in June and closure of the East Mine operations.

 

Costs of Sales (million)

Cash cost, after by-product credits, per silver/gold ounce3

AISC, after by-product credits, per produced silver/gold ounce4

 

Previous

Current

Previous

Current

Previous

Current

Greens Creek

245

245

$0.00 - $0.25

$0.00 - $0.50

$6.00 - $6.75

$5.25 - $5.75

Lucky Friday

128

131

$2.00 - $2.50

$4.00 - $4.75

$8.50 - $9.50

$11.50 - $13.00

Keno Hill

40

40

$11.00 - $13.50

$11.00 - $13.50

$12.25 - $14.75

$12.25 - $14.75

Total Silver

413

416

$2.50 - $3.00

$3.00 - $4.00

$10.25 - $11.50

$10.25 - $11.50

Casa Berardi

220

215

$1,450 - $1,550

$1,750 - $1,950

$1,975 - $2,050

$2,000 - $2,250

 

2023 Capital and Exploration Outlook

Consolidated capital guidance is increased for all operations except Greens Creek. At the Lucky Friday, increase in capital guidance is attributable to higher growth capital spend primarily related to the service hoist project, which was commissioned in early August. Increase in sustaining capital spend is attributable to increased development and timing of receipt of mobile equipment. At Keno Hill, increase in capital is attributable to mill upgrades, and increased underground development.

At Casa Berardi, the increase in capital is primarily attributable to growth capital, which comprises the addition of surface equipment fleet (approximately $16 million) and capitalization of 160 pit waste stripping costs. Sustaining capital spend at the mine is guided lower due to the allocation of stripping costs to growth capital.

Guidance for exploration and pre-development expenditures is unchanged at $32.5 million.

(millions)

Previous

Current

Current - Sustaining

Current - Growth

Capital expenditures

$190 - $200

$225 - $235

$114 - $119

$111 - $116

Greens Creek

$49 - $52

$47 - $50

$43 - $45

$4 - $5

Lucky Friday

$48 - $51

$59 - $62

$34 - $36

$25 - $26

Casa Berardi

$51 - $53

$72 - $74

$36 - $37

$36 - $37

Keno Hill

$42 - $44

$47 - $49

$0.5 - $1

$46.5 - $48

Keno Hill Ramp Up Costs

$9

$13

 

 

MANAGEMENT CHANGES

Hecla today announced Lauren Roberts, Senior Vice President, and Chief Operating Officer, is retiring at the end of 2023 after 12 years of service. Lauren’s significant contributions during his tenure at Hecla include managing the challenges of COVID at our operations, implementing the underhand closed bench mining method at Lucky Friday, and acquiring Alexco. He began his career with Hecla in the 1980s and returned as the Chief Operating Officer five years ago; his leadership has been instrumental in Hecla’s production growth and improved safety performance.

Carlos Aguiar will be appointed Vice President, Operations. Carlos has held several positions with the Company in the past 27 years and has been Vice President and General Manager of San Sebastian from 2016 to 2021 and Vice President and General Manager of Lucky Friday mine since 2021. Carlos will have the four operations reporting to him and will report to Lauren.

CONFERENCE CALL AND WEBCAST

A conference call and webcast will be held on Wednesday, August 9, at 10:00 a.m. Eastern Time to discuss these results. We recommend that you dial in at least 10 minutes before the call commencement. You may join the conference call by dialing toll-free 1-888-330-2391 or for international dialing 1-240-789-2702. The Conference ID is 4812168 and must be provided when dialing in. Hecla's live and archived webcast can be accessed at https://events.q4inc.com/attendee/295670289 or www.hecla.com under Investors.

VIRTUAL INVESTOR EVENT

Hecla will be holding a Virtual Investor Event on Wednesday, August 9, from 12:00 p.m. to 2:00 p.m. Eastern Time.

Hecla invites shareholders, investors, and other interested parties to schedule a personal, 30-minute virtual meeting (video or telephone) with a member of senior management to discuss Financial, Exploration, Operations, ESG or general matters. Click on the link below to schedule a call (or copy and paste the link into your web browser). You can select a topic once you have entered the meeting calendar. If you are unable to book a time, either due to high demand or for other reasons, please reach out to Anvita M. Patil, Vice President, Investor Relations and Treasurer at hmc-info@hecla.com or 208-769-4100.

One-on-One meeting URL: https://calendly.com/2023-aug-vie

ABOUT HECLA

Founded in 1891, Hecla Mining Company (NYSE: HL) is the largest silver producer in the United States. In addition to operating mines in Alaska, Idaho, and Quebec, Canada, the Company is developing a mine in the Yukon, Canada, and owns a number of exploration and pre-development projects in world-class silver and gold mining districts throughout North America.

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 United States 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. The non-GAAP financial measures cited in this release and listed below are reconciled to their most comparable GAAP measure at the end of this release.

(1) Adjusted EBITDA is a non-GAAP measurement, a reconciliation of which to net income, 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, 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. Net debt to adjusted EBITDA is a non-GAAP measurement, a reconciliation of which to debt and net income (loss), the most comparable GAAP measurements, 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.

(2) Free cash flow is a non-GAAP measure calculated as cash provided by operating activities less additions to properties, plants and equipment. Cash provided by operating activities for the Greens Creek, Lucky Friday, and Casa Berardi operating segments excludes exploration and pre-development expense, as it is a discretionary expenditure and not a component of the mines’ operating performance.

(3) Cash cost, after by-product credits, per silver and gold ounce is a non-GAAP measurement, a reconciliation of total cost of sales, 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 mine versus those of our competitors. As a primary silver mining company, management also uses the statistic on an aggregate basis - aggregating the Greens Creek and Lucky Friday mines - to compare performance with that of other silver mining companies, and aggregating Casa Berardi and the Nevada operations, to compare its performance with other gold mining companies. 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.

(4) All-in sustaining cost (“AISC”), after by-product credits, is a non-GAAP measurement, a reconciliation of which to total cost of sales, the closest GAAP measurement, can be found at the end of the release. AISC, after by-product credits, includes total cost of sales and other direct production costs, expenses for reclamation at the mine sites and all site sustaining capital costs. AISC, after by-product credits, is calculated net of depreciation, depletion, and amortization and by-product credits. Prior year presentation has been adjusted to conform with current year presentation.

(5) 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) applicable to common stockholders is a measure used by management to evaluate the Company's operating performance but should not be considered an alternative to net income (loss) applicable to common stockholders as defined by GAAP. 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) applicable to common stockholders per common share provides investors with the ability to better evaluate our underlying operating performance.

Current GAAP measures used in the mining industry, such as total cost of goods sold, do not capture all the expenditures incurred to discover, develop and sustain silver and gold production. Management believes that AISC is a non-GAAP measure that provides additional information to management, investors and analysts to help (i) in the understanding of the economics of our operations and performance compared to other producers and (ii) in the transparency 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.

Other

(6) Expectations for 2023 include silver, gold, lead and zinc production from Greens Creek, Lucky Friday, Keno Hill, and Casa Berardi converted using Au $1,800/oz, Ag $22/oz, Zn $1.15/lb, and Pb 0.90$/lb, for equivalent ounce calculations and Au $1,950/oz, Ag $24.50/oz, Zn $1.15/lb, and Pb 1.00$/lb, for by-product credit calculations. Numbers are rounded.

Cautionary Statement Regarding Forward Looking Statements, Including 2023 Outlook

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. 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 may include, without limitation: (i) Lucky Friday will achieve annual production rate of 425,000 ore tons by the end of 2023 and will be able to complete capital projects (coarse ore bunker) on schedule; (ii) Greens Creek will achieve throughput of 2,600 tpd by the fourth quarter; (iii) Keno Hill will achieve full production by year-end, with expected throughput of approximately 440 tpd; (iv) regarding Casa Berardi: (1) it will be a full surface operation by 2024 and be free cash flow positive after the completion of stripping and Cell 7 of the tailings facility, (2) the Company expects to release the updated technical report for Casa Berardi in the first quarter of 2024, (3) after closure of the underground operations in 2024, Casa Berardi is projected to mine the 160 open pit until 2027, (4) permitting of the higher-grade Principal and West Mine Crown Pillar pits is expected over the next four years after which investment in stripping and dewatering is expected to occur, and (5) the Company expects a production gap of approximately two years between 2028 and 2030 and once the higher grade pits are in production, they are expected to generate significant free cash flow starting in 2030; (v) the Company will achieve silver production of 20 million ounces by 2025; (vi) the Company will be able to achieve Net Debt to Adjusted EBITDA ratio of <2.0; (vii) mine-specific and Company-wide estimates of future production, sales and total cost of sales, as well as cash cost and AISC per ounce (in each case after by-product credits); and (viii) Company-wide estimated spending on capital, exploration and pre-development for 2023. 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.

Estimates or expectations of future events or results are based upon certain assumptions, which may prove to be incorrect, which could cause actual results to differ from forward-looking statements. 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, including with respect to the transition of Casa Berardi from an underground/open pit operation to an open pit only operation; (iii) political/regulatory developments in any jurisdiction in which the Company operates being consistent with its current expectations; (iv) the exchange rate for the USD/CAD 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; (viii) there being no significant changes to Company plans for 2023 and beyond due to COVID-19 or any other public health issue, including, but not limited to with respect to availability of employees, vendors and equipment; (ix) 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; (x) counterparties performing their obligations under hedging instruments and put option contracts; (xi) sufficient workforce is available and trained to perform assigned tasks; (xii) weather patterns and rain/snowfall within normal seasonal ranges so as not to impact operations; (xiii) relations with interested parties, including First Nations and Native Americans, remain productive; (xiv) maintaining availability of water rights; (xv) factors do not arise that reduce available cash balances; and (xvi) there being no material increases in our current requirements to post or maintain reclamation and performance bonds or collateral related thereto.

In addition, material risks that could cause actual results to differ from forward-looking statements include, but are not limited to: (i) gold, silver and other metals price volatility; (ii) operating risks; (iii) currency fluctuations; (iv) increased production costs and variances in ore grade or recovery rates from those assumed in mining plans; (v) community relations; (vi) conflict resolution and outcome of projects or oppositions; (vii) litigation, political, regulatory, labor and environmental risks, including with respect to obtaining or renewing permits; (viii) 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; (ix) the failure of counterparties to perform their obligations under hedging instruments; (x) we take a material impairment charge on any of our assets; and (xi) inflation causes our costs to rise more than we currently expect. For a more detailed discussion of such risks and other factors, see the Company’s (i) 2022 Annual Report on Form 10-K, filed with the Securities and Exchange Commission (“SEC”) on February 17, 2023. 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 presentation, 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.

Qualified Person (QP)

Kurt D. Allen, MSc., CPG, VP - Exploration of Hecla Mining Company and Keith Blair, MSc., CPG, Chief Geologist of Hecla Limited, who serve as a Qualified Person under S-K 1300 and NI 43-101, supervised the preparation of the scientific and technical information concerning Hecla’s mineral projects in this news release. Technical Report Summaries (each a “TRS”) for each of the Company’s material properties are filed as exhibits 96.1, 96.2 and 96.3 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 and are available at www.sec.gov. Information regarding data verification, surveys and investigations, quality assurance program and quality control measures and a summary of analytical or testing procedures for (i) the Greens Creek Mine are contained in its TRS and in a NI 43-101 technical report titled “Technical Report for the Greens Creek Mine” effective date December 31, 2018, (ii) the Lucky Friday Mine are contained in its TRS and in its technical report titled “Technical Report for the Lucky Friday Mine Shoshone County, Idaho, USA” effective date April 2, 2014, (iii) Casa Berardi are contained in its TRS and in its technical report titled “Technical Report on the mineral resource and mineral reserve estimate for Casa Berardi Mine, Northwestern Quebec, Canada” effective date December 31, 2018, and (iv) the San Sebastian Mine, Mexico, 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 each TRS and the four 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. Information regarding data verification, surveys and investigations, quality assurance program and quality control measures and a summary of sample, analytical or testing procedures are contained in technical reports prepared for Klondex Mines Ltd. for (i) the Fire Creek Mine (technical report dated March 31, 2018), (ii) the Hollister Mine (technical report dated May 31, 2017, amended August 9, 2017), and (iii) the Midas Mine (technical report dated August 31, 2014, amended April 2, 2015). Copies of these technical reports are available under Hecla’s profile on SEDAR at www.sedar.com. Mr. Allen and Mr. Blair reviewed and verified information regarding drill sampling, data verification of all digitally collected data, drill surveys and specific gravity determinations relating to all the mines. 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 Loss

(dollars and shares in thousands, except per share amounts - unaudited)

 

 

 

 

 

 

Three Months Ended

Six Months Ended

 

June 30, 2023

March 31, 2023

June 30, 2023

June 30, 2022

Sales

$

178,131

 

$

199,500

 

$

377,631

 

$

377,741

 

Cost of sales and other direct production costs

 

107,754

 

 

125,550

 

 

233,304

 

 

221,679

 

Depreciation, depletion and amortization

 

32,718

 

 

39,002

 

 

71,720

 

 

73,370

 

Total cost of sales

 

140,472

 

 

164,552

 

 

305,024

 

 

295,049

 

Gross profit

 

37,659

 

 

34,948

 

 

72,607

 

 

82,692

 

 

 

 

 

 

 

 

 

 

Other operating expenses:

 

 

 

 

 

 

 

 

General and administrative

 

10,783

 

 

12,070

 

 

22,853

 

 

17,986

 

Exploration and pre-development

 

6,893

 

 

4,967

 

 

11,860

 

 

24,008

 

Ramp-up and suspension costs

 

16,323

 

 

11,336

 

 

27,659

 

 

11,447

 

Provision for closed operations and environmental matters

 

3,111

 

 

1,044

 

 

4,155

 

 

2,373

 

Other operating (income) expense

 

(4,262

)

 

(22

)

 

(4,284

)

 

4,408

 

 

 

32,848

 

 

29,395

 

 

62,243

 

 

60,222

 

Income from operations

 

4,811

 

 

5,553

 

 

10,364

 

 

22,470

 

Other (expense) income:

 

 

 

 

 

 

 

 

Interest expense

 

(10,311

)

 

(10,165

)

 

(20,476

)

 

(20,911

)

Fair value adjustments, net

 

(2,558

)

 

3,181

 

 

623

 

 

(10,463

)

Foreign exchange gain (loss)

 

(3,850

)

 

108

 

 

(3,742

)

 

2,444

 

Other income

 

1,376

 

 

1,392

 

 

2,768

 

 

2,975

 

 

 

(15,343

)

 

(5,484

)

 

(20,827

)

 

(25,955

)

Income (loss) before income taxes

 

(10,532

)

 

69

 

 

(10,463

)

 

(3,485

)

Income and mining tax (expense) benefit

 

(5,162

)

 

(3,242

)

 

(8,404

)

 

(5,885

)

Net loss

 

(15,694

)

 

(3,173

)

 

(18,867

)

 

(9,370

)

Preferred stock dividends

 

(138

)

 

(138

)

 

(276

)

 

(276

)

Net loss applicable to common stockholders

$

(15,832

)

$

(3,311

)

$

(19,143

)

$

(9,646

)

Basic and diluted loss per common share after preferred dividends (in cents)

$

(0.03

)

$

(0.01

)

$

(0.03

)

$

(0.02

)

Weighted average number of common shares outstanding basic

 

604,088

 

 

600,075

 

 

602,077

 

 

538,943

 

Weighted average number of common shares outstanding diluted

 

604,088

 

 

600,075

 

 

602,077

 

 

538,943

 

HECLA MINING COMPANY

Condensed Consolidated Statements of Cash Flows

(dollars in thousands - unaudited)

 

 

 

 

 

 

Quarter Ended

Six Months Ended

 

June 30, 2023

March 31, 2023

June 30, 2023

June 30, 2022

OPERATING ACTIVITIES

 

 

 

 

 

 

 

 

Net loss

$

(15,694

)

$

(3,173

)

$

(18,867

)

$

(9,370

)

Non-cash elements included in net income (loss):

 

 

 

 

 

 

 

 

Depreciation, depletion and amortization

 

34,718

 

 

39,892

 

 

74,610

 

 

73,656

 

Adjustment of inventory to net realizable value

 

2,997

 

 

4,521

 

 

7,518

 

 

754

 

Fair value adjustments, net

 

2,558

 

 

(3,181

)

 

(623

)

 

(14,185

)

Provision for reclamation and closure costs

 

3,634

 

 

1,694

 

 

5,328

 

 

3,271

 

Stock compensation

 

1,498

 

 

1,190

 

 

2,688

 

 

2,525

 

Deferred income taxes

 

4,027

 

 

558

 

 

4,585

 

 

(1,290

)

Foreign exchange loss (gain)

 

6,025

 

 

(2,218

)

 

3,807

 

 

(3,442

)

Other non-cash items, net

 

1,388

 

 

186

 

 

1,574

 

 

982

 

Change in assets and liabilities:

 

 

 

 

 

 

 

 

Accounts receivable

 

13,087

 

 

15,477

 

 

28,564

 

 

19,199

 

Inventories

 

(8,882

)

 

(9,239

)

 

(18,121

)

 

(8,352

)

Other current and non-current assets

 

(5,207

)

 

(9,856

)

 

(15,063

)

 

(894

)

Accounts payable, accrued and other current liabilities

 

9,447

 

 

(9,304

)

 

143

 

 

17,119

 

Accrued payroll and related benefits

 

(14,248

)

 

4,705

 

 

(9,543

)

 

278

 

Accrued taxes

 

(2,311

)

 

2,226

 

 

(85

)

 

(5,683

)

Accrued reclamation and closure costs and other non-current liabilities

 

(9,260

)

 

7,125

 

 

(2,135

)

 

3,524

 

Cash provided by operating activities

 

23,777

 

 

40,603

 

 

64,380

 

 

78,092

 

INVESTING ACTIVITIES

 

 

 

 

 

 

 

 

Additions to properties, plants, equipment and mineral interests

 

(51,468

)

 

(54,443

)

 

(105,911

)

 

(55,807

)

Proceeds from sale or exchange of investments

 

—

 

 

—

 

 

—

 

 

2,487

 

Proceeds from disposition of properties, plants, equipment and mineral interests

 

80

 

 

—

 

 

80

 

 

730

 

Purchases of investments

 

—

 

 

—

 

 

—

 

 

(21,899

)

Net cash used in investing activities

 

(51,388

)

 

(54,443

)

 

(105,831

)

 

(74,489

)

FINANCING ACTIVITIES

 

 

 

 

 

 

 

 

Proceeds from issuance of stock, net of related costs

 

14,003

 

 

11,885

 

 

25,888

 

 

—

 

Acquisition of treasury shares

 

(1,554

)

 

(482

)

 

(2,036

)

 

(3,677

)

Borrowing of debt

 

43,000

 

 

13,000

 

 

56,000

 

 

—

 

Repayment of debt

 

(12,000

)

 

(13,000

)

 

(25,000

)

 

—

 

Dividends paid to common and preferred stockholders

 

(3,917

)

 

(3,891

)

 

(7,808

)

 

(7,027

)

Credit facility feed paid

 

—

 

 

0

 

 

—

 

 

(74

)

Repayments of finance leases

 

(2,301

)

 

(2,464

)

 

(4,765

)

 

(3,333

)

Net cash provided by (used in) financing activities

 

37,231

 

 

5,048

 

 

42,279

 

 

(14,111

)

Effect of exchange rates on cash

 

1,046

 

 

171

 

 

1,217

 

 

(1,321

)

Net increase (decrease) in cash, cash equivalents and restricted cash and cash equivalents

 

10,666

 

 

(8,621

)

 

2,045

 

 

(11,829

)

Cash, cash equivalents and restricted cash at beginning of period

 

97,286

 

 

105,907

 

 

105,907

 

 

211,063

 

Cash, cash equivalents and restricted cash at end of period

$

107,952

 

$

97,286

 

$

107,952

 

$

199,234

 

HECLA MINING COMPANY

Condensed Consolidated Balance Sheets

(dollars and shares in thousands - unaudited)

 

 

 

 

 

 

 

 

 

June 30, 2023

 

December 31, 2022

ASSETS

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

$

106,786

 

$

104,743

 

Accounts receivable

 

30,716

 

 

55,841

 

Inventories

 

94,613

 

 

90,672

 

Other current assets

 

27,040

 

 

16,471

 

Total current assets

 

259,155

 

 

267,727

 

Investments

 

20,778

 

 

24,018

 

Restricted cash

 

1,166

 

 

1,164

 

Properties, plants, equipment and mineral interests, net

 

2,615,747

 

 

2,569,790

 

Operating lease right-of-use assets

 

9,901

 

 

11,064

 

Deferred tax assets

 

2,703

 

 

21,105

 

Other non-current assets

 

36,009

 

 

32,304

 

Total assets

$

2,945,459

 

$

2,927,172

 

 

 

 

 

 

LIABILITIES

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable and accrued liabilities

$

81,653

 

$

84,747

 

Accrued payroll and related benefits

 

25,993

 

 

37,579

 

Accrued taxes

 

4,036

 

 

4,030

 

Finance leases

 

11,213

 

 

9,483

 

Accrued reclamation and closure costs

 

9,693

 

 

8,591

 

Accrued interest

 

14,404

 

 

14,454

 

Other current liabilities

 

4,348

 

 

19,582

 

Total current liabilities

 

151,340

 

 

178,466

 

Accrued reclamation and closure costs

 

110,236

 

 

108,408

 

Long-term debt including finance leases

 

559,817

 

 

517,742

 

Deferred tax liability

 

118,611

 

 

125,846

 

Other non-current liabilities

 

12,619

 

 

17,743

 

Total liabilities

 

952,623

 

 

948,205

 

 

 

 

 

 

STOCKHOLDERS’ EQUITY

 

 

 

 

Preferred stock

 

39

 

 

39

 

Common stock

 

153,334

 

 

151,819

 

Capital surplus

 

2,289,607

 

 

2,260,290

 

Accumulated deficit

 

(430,606

)

 

(403,931

)

Accumulated other comprehensive income, net

 

14,196

 

 

2,448

 

Treasury stock

 

(33,734

)

 

(31,698

)

Total stockholders’ equity

 

1,992,836

 

 

1,978,967

 

Total liabilities and stockholders’ equity

$

2,945,459

 

$

2,927,172

 

Common shares outstanding

 

613,682

 

 

607,620

 

 

Non-GAAP Measures (Unaudited)

Reconciliation of Total Cost of Sales to Cash Cost, Before By-product Credits and Cash Cost, After By-product Credits (non-GAAP) and All-In Sustaining Cost, Before By-product Credits and All-In Sustaining Cost, After By-product Credits (non-GAAP)

The tables below present reconciliations between the most comparable GAAP measure of total cost of sales to the non-GAAP measures of (i) Cash Cost, Before By-product Credits, (ii) Cash Cost, After By-product Credits, (iii) AISC, Before By-product Credits and (iv) AISC, After By-product Credits for our operations and for the Company for the three months and six months ended June 30, 2023 and 2022, the three months ended March 31, 2023 December 31, 2022, September 30, 2022 and June 30, 2022.

Cash Cost, After By-product Credits, per Ounce and AISC, After By-product Credits, per Ounce are measures developed by precious metals companies (including the Silver Institute and the World Gold Council) in an effort to provide a uniform standard for comparison purposes. There can be no assurance, however, that these non-GAAP measures as we report them are the same as those reported by other mining companies.

Cash Cost, After By-product Credits, per Ounce is an important operating statistic that we utilize to measure each mine's operating performance. We use AISC, After By-product Credits, per Ounce as a measure of our mines' net cash flow after costs for reclamation and sustaining capital. This is similar to the Cash Cost, After By-product Credits, per Ounce non-GAAP measure we report, but also includes reclamation and sustaining capital costs. 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 silver and gold mining company, we also use these statistics on an aggregate basis - aggregating the Greens Creek and Lucky Friday mines to compare our performance with that of other silver mining companies, and aggregating Casa Berardi and Nevada Operations for comparison with other gold mining companies. 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 reclamation and sustaining capital costs. AISC, Before By-product Credits for our consolidated silver properties also includes corporate costs for general and administrative expense and sustaining capital costs. 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.

In addition to the uses described above, 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.

The Casa Berardi and Nevada Operations and combined gold properties information 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, their primary product, and by-product revenues earned from silver, which is a by-product at Casa Berardi and Nevada Operations. 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 and Nevada Operations units 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 and Lucky Friday, our combined silver properties. Similarly, the silver produced at our other two units is not included as a by-product credit when calculating the gold metrics for Casa Berardi and Nevada Operations.

 

In thousands (except per ounce amounts)

 

Three Months Ended June 30, 2023

 

Three Months Ended March 31, 2023

 

Six Months Ended June 30, 2023

 

Six Months Ended June 30, 2022 (5)

 

 

Greens Creek

 

Lucky Friday

 

Keno Hill (6)

 

Corporate (2)

 

Total Silver

 

Greens Creek

 

Lucky Friday

 

Corporate (2)

 

Total Silver

 

Greens Creek

 

Lucky Friday

 

Keno Hill (6)

 

Corporate (2)

 

Total Silver

 

Greens Creek

 

Lucky Friday(2)

 

Corporate and other(3)

 

Total Silver

Total cost of sales

 

$63,054

 

 

$32,190

 

 

$1,581

 

 

$—

 

$96,825

 

 

$66,288

 

 

$34,534

 

 

$—

 

$100,822

 

 

$129,342

 

 

$66,724

 

 

$1,581

 

 

$—

 

197,647

 

 

$110,143

 

 

$59,613

 

 

$—

 

$169,756

 

Depreciation, depletion and amortization

 

(13,078

)

 

(8,979

)

 

(261

)

 

—

 

(22,318

)

 

(14,464

)

 

(10,456

)

 

—

 

(24,920

)

 

(27,542

)

 

(19,435

)

 

(261

)

 

—

 

(47,238

)

 

(25,049

)

 

(16,894

)

 

—

 

(41,943

)

Treatment costs

 

10,376

 

 

4,187

 

 

113

 

 

—

 

14,676

 

 

10,369

 

 

5,276

 

 

—

 

15,645

 

 

20,745

 

 

9,464

 

 

113

 

 

—

 

30,322

 

 

17,892

 

 

8,480

 

 

—

 

26,372

 

Change in product inventory

 

(1,242

)

 

1,546

 

 

—

 

 

—

 

304

 

 

(1,614

)

 

(2,409

)

 

—

 

(4,023

)

 

(2,856

)

 

(863

)

 

—

 

 

—

 

(3,719

)

 

5,436

 

 

(402

)

 

—

 

5,034

 

Reclamation and other costs

 

263

 

 

(250

)

 

—

 

 

—

 

13

 

 

(129

)

 

(408

)

 

—

 

(537

)

 

134

 

 

(658

)

 

—

 

 

—

 

(524

)

 

 

 

 

 

—

 

 

Exclusion of Keno Hill cash costs

 

—

 

 

—

 

 

(1,433

)

 

—

 

(1,433

)

 

 

 

 

 

—

 

—

 

 

-

 

 

-

 

 

(1,433

)

 

—

 

(1,433

)

 

(1,872

)

 

(619

)

 

—

 

(2,491

)

Cash Cost, Before By-product Credits (1)

 

59,373

 

 

28,694

 

 

—

 

 

—

 

88,067

 

 

60,450

 

 

26,537

 

 

—

 

86,987

 

 

119,823

 

 

55,232

 

 

—

 

 

—

 

175,055

 

 

106,550

 

 

50,178

 

 

—

 

156,728

 

Reclamation and other costs

 

722

 

 

285

 

 

—

 

 

—

 

1,007

 

 

722

 

 

285

 

 

—

 

1,007

 

 

1,444

 

 

570

 

 

—

 

 

—

 

2,014

 

 

1,410

 

 

564

 

 

—

 

1,974

 

Sustaining capital

 

8,714

 

 

9,081

 

 

—

 

 

688

 

18,483

 

 

6,641

 

 

7,784

 

 

—

 

14,425

 

 

15,355

 

 

16,865

 

 

—

 

 

594

 

32,814

 

 

20,624

 

 

13,671

 

 

147

 

34,442

 

General and administrative

 

—

 

 

—

 

 

—

 

 

10,783

 

10,783

 

 

—

 

 

—

 

 

12,070

 

12,070

 

 

—

 

 

—

 

 

—

 

 

22,853

 

22,853

 

 

—

 

 

—

 

 

17,986

 

17,986

 

AISC, Before By-product Credits (1)

 

68,809

 

 

38,060

 

 

—

 

 

11,471

 

118,340

 

 

67,813

 

 

34,606

 

 

12,070

 

114,489

 

 

136,622

 

 

72,667

 

 

—

 

 

23,447

 

232,736

 

 

128,584

 

 

64,413

 

 

18,133

 

211,130

 

By-product credits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Zinc

 

(20,923

)

 

(5,448

)

 

—

 

 

—

 

(26,371

)

 

(24,005

)

 

(6,816

)

 

—

 

(30,821

)

 

(44,928

)

 

(12,264

)

 

—

 

 

—

 

(57,192

)

 

(61,479

)

 

(14,204

)

 

—

 

(75,683

)

Gold

 

(28,458

)

 

—

 

 

—

 

 

—

 

(28,458

)

 

(25,286

)

 

—

 

 

—

 

(25,286

)

 

(53,744

)

 

-

 

 

—

 

 

—

 

(53,744

)

 

(38,947

)

 

—

 

 

—

 

(38,947

)

Lead

 

(6,860

)

 

(14,287

)

 

—

 

 

—

 

(21,147

)

 

(7,942

)

 

(14,299

)

 

—

 

(22,241

)

 

(14,802

)

 

(28,586

)

 

—

 

 

—

 

(43,388

)

 

(16,237

)

 

(26,379

)

 

—

 

(42,616

)

Total By-product credits

 

(56,241

)

 

(19,735

)

 

—

 

 

—

 

(75,976

)

 

(57,233

)

 

(21,115

)

 

—

 

(78,348

)

 

(113,474

)

 

(40,850

)

 

—

 

 

—

 

(154,324

)

 

(116,663

)

 

(40,583

)

 

—

 

(157,246

)

Cash Cost, After By-product Credits

 

$3,132

 

 

$8,959

 

 

$—

 

 

$—

 

$12,091

 

 

$3,217

 

 

$5,422

 

 

$—

 

$8,639

 

 

$6,349

 

 

$14,382

 

 

$—

 

 

$—

 

$20,731

 

 

$(10,113

)

 

$9,595

 

 

$—

 

$(518

)

AISC, After By-product Credits

 

$12,568

 

 

$18,325

 

 

$—

 

 

$11,471

 

$42,364

 

 

$10,580

 

 

$13,491

 

 

$12,070

 

$36,141

 

 

$23,148

 

 

$31,817

 

 

$—

 

 

$23,447

 

$78,412

 

 

$11,921

 

 

$23,830

 

 

$18,133

 

$53,884

 

Divided by ounces produced

 

2,356

 

 

1,287

 

 

 

 

 

 

3,642

 

 

2,773

 

 

1,262

 

 

 

 

4,035

 

 

5,129

 

 

2,549

 

 

 

 

 

 

7,678

 

 

4,840

 

 

2,114

 

 

 

 

6,954

 

Cash Cost, Before By-product Credits, per Silver Ounce

 

$25.20

 

 

$22.30

 

 

 

 

 

 

$24.18

 

 

$21.80

 

 

$21.03

 

 

 

 

$21.56

 

 

$23.36

 

 

$21.67

 

 

 

 

 

 

$22.80

 

 

$22.01

 

 

$23.74

 

 

 

 

$22.54

 

By-product credits per ounce

 

(23.87

)

 

(15.34

)

 

 

 

 

 

(20.86

)

 

(20.64

)

 

(16.73

)

 

 

 

(19.42

)

 

(22.13

)

 

(16.03

)

 

 

 

 

 

(20.10

)

 

(24.10

)

 

(19.20

)

 

 

 

(22.61

)

Cash Cost, After By-product Credits, per Silver Ounce

 

$1.33

 

 

$6.96

 

 

 

 

 

 

$3.32

 

 

$1.16

 

 

$4.30

 

 

 

 

$2.14

 

 

$1.23

 

 

$5.64

 

 

 

 

 

 

$2.70

 

 

$(2.09

)

 

$4.54

 

 

 

 

$(0.07

)

AISC, Before By-product Credits, per Silver Ounce

 

$29.21

 

 

$29.58

 

 

 

 

 

 

$32.49

 

 

$24.46

 

 

$27.42

 

 

 

 

$28.38

 

 

$26.64

 

 

$28.51

 

 

 

 

 

 

$30.31

 

 

$26.57

 

 

$30.47

 

 

 

 

$30.36

 

By-product credits per ounce

 

(23.87

)

 

(15.34

)

 

 

 

 

 

(20.86

)

 

(20.64

)

 

(16.73

)

 

 

 

(19.42

)

 

(22.13

)

 

(16.03

)

 

 

 

 

 

(20.10

)

 

(24.10

)

 

(19.20

)

 

 

 

(22.61

)

AISC, After By-product Credits, per Silver Ounce

 

$5.34

 

 

$14.24

 

 

 

 

 

 

$11.63

 

 

$3.83

 

 

$10.69

 

 

 

 

$8.96

 

 

$4.51

 

 

$12.48

 

 

 

 

 

 

$10.21

 

 

$2.47

 

 

$11.27

 

 

 

 

$7.75

 

 

In thousands (except per ounce amounts)

 

Three Months Ended June 30, 2023

 

 

Three Months Ended March 31, 2023

 

 

Six Months Ended June 30, 2023

 

 

Six Months Ended June 30, 2022 (5)

 

 

 

Casa Berardi

 

 

Nevada Operations and Other (4)

 

 

Total Gold

 

 

Casa Berardi

 

 

Nevada Operations and Other (4)

 

 

Total Gold

 

 

Casa Berardi

 

 

Nevada Operations and Other (4)

 

 

Total Gold

 

 

Casa Berardi

 

 

Total Gold

 

Total cost of sales

 

$

42,576

 

 

$

1,071

 

 

$

43,647

 

 

$

62,998

 

 

$

732

 

 

$

63,730

 

 

$

105,574

 

 

$

1,803

 

 

$

107,377

 

 

$

124,038

 

 

$

124,038

 

Depreciation, depletion and amortization

 

 

(10,272

)

 

 

(127

)

 

 

(10,399

)

 

 

(14,036

)

 

 

(47

)

 

 

(14,083

)

 

 

(24,308

)

 

 

(174

)

 

 

(24,482

)

 

 

(31,305

)

 

 

(31,305

)

Treatment costs

 

 

351

 

 

 

—

 

 

 

351

 

 

 

467

 

 

 

—

 

 

 

467

 

 

 

818

 

 

 

—

 

 

 

818

 

 

 

915

 

 

 

915

 

Change in product inventory

 

 

(951

)

 

 

—

 

 

 

(951

)

 

 

(2,417

)

 

 

—

 

 

 

(2,417

)

 

 

(3,368

)

 

 

—

 

 

 

(3,368

)

 

 

(1,356

)

 

 

(1,356

)

Reclamation and other costs

 

 

(219

)

 

 

—

 

 

 

(219

)

 

 

(217

)

 

 

—

 

 

 

(217

)

 

 

(436

)

 

 

—

 

 

 

(436

)

 

 

(419

)

 

 

(419

)

Exclusion of Casa Berardi cash costs (3)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(2,851

)

 

 

—

 

 

 

(2,851

)

 

 

(2,851

)

 

 

—

 

 

 

(2,851

)

 

 

—

 

 

 

—

 

Exclusion of Nevada and Other costs

 

 

—

 

 

 

(944

)

 

 

(944

)

 

 

—

 

 

 

(685

)

 

 

(685

)

 

 

—

 

 

 

(1,629

)

 

 

(1,629

)

 

 

—

 

 

 

—

 

Cash Cost, Before By-product Credits (1)

 

 

31,485

 

 

 

—

 

 

 

31,485

 

 

 

43,944

 

 

 

—

 

 

 

43,944

 

 

 

75,429

 

 

 

—

 

 

 

75,429

 

 

 

91,873

 

 

 

91,873

 

Reclamation and other costs

 

 

219

 

 

 

—

 

 

 

219

 

 

 

217

 

 

 

—

 

 

 

217

 

 

 

436

 

 

 

—

 

 

 

436

 

 

 

419

 

 

 

419

 

Sustaining capital

 

 

9,025

 

 

 

—

 

 

 

9,025

 

 

 

15,015

 

 

 

—

 

 

 

15,015

 

 

 

24,041

 

 

 

—

 

 

 

24,041

 

 

 

14,878

 

 

 

14,878

 

AISC, Before By-product Credits (1)

 

 

40,729

 

 

 

—

 

 

 

40,729

 

 

 

59,176

 

 

 

—

 

 

 

59,176

 

 

 

99,906

 

 

 

—

 

 

 

99,906

 

 

 

107,170

 

 

 

107,170

 

By-product credits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Silver

 

 

(144

)

 

 

 

 

 

(144

)

 

 

(127

)

 

 

—

 

 

 

(127

)

 

 

(271

)

 

 

—

 

 

 

(271

)

 

 

(354

)

 

 

(354

)

Total By-product credits

 

 

(144

)

 

 

—

 

 

 

(144

)

 

 

(127

)

 

 

—

 

 

 

(127

)

 

 

(271

)

 

 

—

 

 

 

(271

)

 

 

(354

)

 

 

(354

)

Cash Cost, After By-product Credits

 

$

31,341

 

 

$

—

 

 

$

31,341

 

 

$

43,817

 

 

$

—

 

 

$

43,817

 

 

$

75,158

 

 

$

—

 

 

$

75,158

 

 

$

91,519

 

 

$

91,519

 

AISC, After By-product Credits

 

$

40,585

 

 

$

—

 

 

$

40,585

 

 

$

59,049

 

 

$

—

 

 

$

59,049

 

 

$

99,635

 

 

$

—

 

 

$

99,635

 

 

$

106,816

 

 

$

106,816

 

Divided by gold ounces produced

 

 

19

 

 

 

—

 

 

 

19

 

 

 

25

 

 

 

—

 

 

 

25

 

 

 

44

 

 

 

—

 

 

 

44

 

 

 

64

 

 

 

64

 

Cash Cost, Before By-product Credits, per Gold Ounce

 

$

1,666

 

 

$

—

 

 

$

1,666

 

 

$

1,780

 

 

$

—

 

 

$

1,780

 

 

$

1,731

 

 

$

—

 

 

$

1,731

 

 

$

1,446

 

 

$

1,446

 

By-product credits per ounce

 

 

(8

)

 

 

—

 

 

 

(8

)

 

 

(5

)

 

 

—

 

 

 

(5

)

 

 

(6

)

 

 

—

 

 

 

(6

)

 

 

(6

)

 

 

(6

)

Cash Cost, After By-product Credits, per Gold Ounce

 

$

1,658

 

 

$

—

 

 

$

1,658

 

 

$

1,775

 

 

$

—

 

 

$

1,775

 

 

$

1,725

 

 

$

—

 

 

$

1,725

 

 

$

1,440

 

 

$

1,440

 

AISC, Before By-product Credits, per Gold Ounce

 

$

2,155

 

 

$

—

 

 

$

2,155

 

 

$

2,397

 

 

$

—

 

 

$

2,397

 

 

$

2,292

 

 

$

—

 

 

$

2,292

 

 

$

1,686

 

 

$

1,686

 

By-product credits per ounce

 

 

(8

)

 

 

—

 

 

 

(8

)

 

 

(5

)

 

 

—

 

 

 

(5

)

 

 

(6

)

 

 

—

 

 

 

(6

)

 

 

(6

)

 

 

(6

)

AISC, After By-product Credits, per Gold Ounce

 

$

2,147

 

 

$

—

 

 

$

2,147

 

 

$

2,392

 

 

$

—

 

 

$

2,392

 

 

$

2,286

 

 

$

—

 

 

$

2,286

 

 

$

1,680

 

 

$

1,680

 

 

In thousands (except per ounce amounts)

 

Three Months Ended June 30, 2023

 

 

Three Months Ended March 31, 2023

 

 

Six Months Ended June 30, 2023

 

 

Six Months Ended June 30, 2022 (5)

 

 

 

Total Silver

 

 

Total Gold

 

 

Total

 

 

Total Silver

 

 

Total Gold

 

 

Total

 

 

Total Silver

 

 

Total Gold

 

 

Total

 

 

Total Silver

 

 

Total Gold

 

 

Total

 

Total cost of sales

 

$

96,825

 

 

$

43,647

 

 

$

140,472

 

 

$

100,822

 

 

$

63,730

 

 

$

164,552

 

 

$

197,647

 

 

$

107,377

 

 

$

305,024

 

 

$

169,756

 

 

$

124,038

 

 

$

293,794

 

Depreciation, depletion and amortization

 

 

(22,318

)

 

 

(10,399

)

 

 

(32,717

)

 

 

(24,920

)

 

 

(14,083

)

 

 

(39,003

)

 

 

(47,238

)

 

 

(24,482

)

 

 

(71,720

)

 

 

(41,943

)

 

 

(31,305

)

 

 

(73,248

)

Treatment costs

 

 

14,676

 

 

 

351

 

 

 

15,027

 

 

 

15,645

 

 

 

467

 

 

 

16,112

 

 

 

30,322

 

 

 

818

 

 

 

31,140

 

 

 

26,372

 

 

 

915

 

 

 

27,287

 

Change in product inventory

 

 

304

 

 

 

(951

)

 

 

(647

)

 

 

(4,023

)

 

 

(2,417

)

 

 

(6,440

)

 

 

(3,719

)

 

 

(3,368

)

 

 

(7,087

)

 

 

5,034

 

 

 

(1,356

)

 

 

3,678

 

Reclamation and other costs

 

 

13

 

 

 

(219

)

 

 

(206

)

 

 

(537

)

 

 

(217

)

 

 

(754

)

 

 

(524

)

 

 

(436

)

 

 

(960

)

 

 

(2,491

)

 

 

(419

)

 

 

(2,910

)

Exclusion of Keno Hill cash costs

 

 

(1,433

)

 

 

—

 

 

 

(1,433

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(1,433

)

 

 

—

 

 

 

(1,433

)

 

 

—

 

 

 

—

 

 

 

—

 

Exclusion of Casa Berardi cash costs (3)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(2,851

)

 

 

(2,851

)

 

 

—

 

 

 

(2,851

)

 

 

(2,851

)

 

 

—

 

 

 

—

 

 

 

—

 

Exclusion of Nevada and Other

 

 

—

 

 

 

(944

)

 

 

(944

)

 

 

—

 

 

 

(685

)

 

 

(685

)

 

 

—

 

 

 

(1,629

)

 

 

(1,629

)

 

 

—

 

 

 

—

 

 

 

—

 

Cash Cost, Before By-product Credits (1)

 

 

88,067

 

 

 

31,485

 

 

 

119,552

 

 

 

86,987

 

 

 

43,944

 

 

 

130,931

 

 

 

175,055

 

 

 

75,429

 

 

 

250,484

 

 

 

156,728

 

 

 

91,873

 

 

 

248,601

 

Reclamation and other costs

 

 

1,007

 

 

 

219

 

 

 

1,226

 

 

 

1,007

 

 

 

217

 

 

 

1,224

 

 

 

2,014

 

 

 

436

 

 

 

2,450

 

 

 

1,974

 

 

 

419

 

 

 

2,393

 

Sustaining capital

 

 

18,483

 

 

 

9,025

 

 

 

27,508

 

 

 

14,425

 

 

 

15,015

 

 

 

29,440

 

 

 

32,814

 

 

 

24,041

 

 

 

56,855

 

 

 

34,442

 

 

 

14,878

 

 

 

49,320

 

General and administrative

 

 

10,783

 

 

 

—

 

 

 

10,783

 

 

 

12,070

 

 

 

—

 

 

 

12,070

 

 

 

22,853

 

 

 

—

 

 

 

22,853

 

 

 

17,986

 

 

 

—

 

 

 

17,986

 

AISC, Before By-product Credits (1)

 

 

118,340

 

 

 

40,729

 

 

 

159,069

 

 

 

114,489

 

 

 

59,176

 

 

 

173,665

 

 

 

232,736

 

 

 

99,906

 

 

 

332,642

 

 

 

211,130

 

 

 

107,170

 

 

 

318,300

 

By-product credits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Zinc

 

 

(26,371

)

 

 

—

 

 

 

(26,371

)

 

 

(30,821

)

 

 

—

 

 

 

(30,821

)

 

 

(57,192

)

 

 

—

 

 

 

(57,192

)

 

 

(75,683

)

 

 

—

 

 

 

(75,683

)

Gold

 

 

(28,458

)

 

 

—

 

 

 

(28,458

)

 

 

(25,286

)

 

 

—

 

 

 

(25,286

)

 

 

(53,744

)

 

 

—

 

 

 

(53,744

)

 

 

(38,947

)

 

 

—

 

 

 

(38,947

)

Lead

 

 

(21,147

)

 

 

—

 

 

 

(21,147

)

 

 

(22,241

)

 

 

—

 

 

 

(22,241

)

 

 

(43,388

)

 

 

—

 

 

 

(43,388

)

 

 

(42,616

)

 

 

—

 

 

 

(42,616

)

Silver

 

 

—

 

 

 

(144

)

 

 

(144

)

 

 

—

 

 

 

(127

)

 

 

(127

)

 

 

—

 

 

 

(271

)

 

 

(271

)

 

 

—

 

 

 

(354

)

 

 

(354

)

Total By-product credits

 

 

(75,976

)

 

 

(144

)

 

 

(76,120

)

 

 

(78,348

)

 

 

(127

)

 

 

(78,475

)

 

 

(154,324

)

 

 

(271

)

 

 

(154,595

)

 

 

(157,246

)

 

 

(354

)

 

 

(157,600

)

Cash Cost, After By-product Credits

 

$

12,091

 

 

$

31,341

 

 

$

43,432

 

 

$

8,639

 

 

$

43,817

 

 

$

52,456

 

 

$

20,731

 

 

$

75,158

 

 

$

95,889

 

 

$

(518

)

 

$

91,519

 

 

$

91,001

 

AISC, After By-product Credits

 

$

42,364

 

 

$

40,585

 

 

$

82,949

 

 

$

36,141

 

 

$

59,049

 

 

$

95,190

 

 

$

78,412

 

 

$

99,635

 

 

$

178,047

 

 

$

53,884

 

 

$

106,816

 

 

$

160,700

 

Divided by ounces produced

 

 

3,642

 

 

 

19

 

 

 

 

 

 

4,035

 

 

 

25

 

 

 

 

 

 

7,678

 

 

 

44

 

 

 

 

 

 

6,954

 

 

 

64

 

 

 

 

Cash Cost, Before By-product Credits, per Ounce

 

$

24.18

 

 

$

1,666

 

 

 

 

 

$

21.56

 

 

$

1,780

 

 

 

 

 

$

22.80

 

 

$

1,731

 

 

 

 

 

$

22.54

 

 

$

1,446

 

 

 

 

By-product credits per ounce

 

 

(20.86

)

 

 

(8

)

 

 

 

 

 

(19.42

)

 

 

(5

)

 

 

 

 

 

(20.10

)

 

 

(6

)

 

 

 

 

 

(22.61

)

 

 

(6

)

 

 

 

Cash Cost, After By-product Credits, per Ounce

 

$

3.32

 

 

$

1,658

 

 

 

 

 

$

2.14

 

 

$

1,775

 

 

 

 

 

$

2.70

 

 

$

1,725

 

 

 

 

 

$

(0.07

)

 

$

1,440

 

 

 

 

AISC, Before By-product Credits, per Ounce

 

$

32.49

 

 

$

2,155

 

 

 

 

 

$

28.38

 

 

$

2,397

 

 

 

 

 

$

30.31

 

 

$

2,292

 

 

 

 

 

$

30.36

 

 

$

1,686

 

 

 

 

By-product credits per ounce

 

 

(20.86

)

 

 

(8

)

 

 

 

 

 

(19.42

)

 

 

(5

)

 

 

 

 

 

(20.10

)

 

 

(6

)

 

 

 

 

 

(22.61

)

 

 

(6

)

 

 

 

AISC, After By-product Credits, per Ounce

 

$

11.63

 

 

 

2,147

 

 

 

 

 

$

8.96

 

 

 

2,392

 

 

 

 

 

$

10.21

 

 

 

2,286

 

 

 

 

 

$

7.75

 

 

 

1,680

 

 

 

 

 

In thousands (except per ounce amounts)

Three Months Ended December 31, 2022 (5)

 

 

Three Months Ended September 30, 2022 (5)

 

 

Three Months Ended June 30, 2022 (5)

 

 

Greens Creek

 

 

Lucky Friday

 

 

Corporate (2)

 

Total Silver

 

 

Greens Creek

 

 

Lucky Friday

 

 

Corporate (2)

 

Total Silver

 

 

Greens Creek

 

 

Lucky Friday

 

 

Corporate (2)

 

Total Silver

 

Total cost of sales

$

70,074

 

$

32,819

 

$

—

$

102,893

 

$

52,502

 

$

24,164

 

$

—

$

76,666

 

$

60,506

 

$

30,348

 

$

—

$

90,854

 

Depreciation, depletion and amortization

 

(13,557

)

 

(9,549

)

 

—

 

(23,106

)

 

(10,305

)

 

(7,261

)

 

—

 

(17,566

)

 

(13,629

)

 

(8,862

)

 

—

 

(22,491

)

Treatment costs

 

10,467

 

 

5,334

 

 

—

 

15,801

 

 

9,477

 

 

4,791

 

 

—

 

14,268

 

 

8,778

 

 

4,803

 

 

—

 

13,581

 

Change in product inventory

 

(4,014

)

 

(571

)

 

—

 

(4,585

)

 

4,464

 

 

3,022

 

 

—

 

7,486

 

 

(1,102

)

 

503

 

 

—

 

(599

)

Reclamation and other costs

 

499

 

 

(265

)

 

—

 

234

 

 

(118

)

 

(152

)

 

—

 

(270

)

 

(1,005

)

 

(256

)

 

—

 

(1,261

)

Cash Cost, Before By-product Credits (1)

 

63,469

 

 

27,768

 

 

—

 

91,237

 

 

56,020

 

 

24,564

 

 

—

 

80,584

 

 

53,548

 

 

26,536

 

 

—

 

80,084

 

Reclamation and other costs

 

706

 

 

282

 

 

—

 

988

 

 

705

 

 

282

 

 

—

 

987

 

 

705

 

 

282

 

 

—

 

987

 

Sustaining capital

 

9,862

 

 

8,369

 

 

—

 

18,231

 

 

10,219

 

 

11,264

 

 

187

 

21,670

 

 

14,668

 

 

8,110

 

 

99

 

22,877

 

General and administrative

 

—

 

 

—

 

 

14,395

 

14,395

 

 

—

 

 

—

 

 

11,003

 

11,003

 

 

—

 

 

—

 

 

9,692

 

9,692

 

AISC, Before By-product Credits (1)

 

74,037

 

 

36,419

 

 

14,395

 

124,851

 

 

66,944

 

 

36,110

 

 

11,190

 

114,244

 

 

68,921

 

 

34,928

 

 

9,791

 

113,640

 

By-product credits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Zinc

 

(26,112

)

 

(6,249

)

 

—

 

(32,361

)

 

(26,244

)

 

(7,155

)

 

—

 

(33,399

)

 

(32,828

)

 

(8,227

)

 

—

 

(41,055

)

Gold

 

(19,630

)

 

—

 

 

—

 

(19,630

)

 

(17,019

)

 

—

 

 

—

 

(17,019

)

 

(20,364

)

 

—

 

 

—

 

(20,364

)

Lead

 

(7,351

)

 

(14,392

)

 

—

 

(21,743

)

 

(6,212

)

 

(11,796

)

 

—

 

(18,008

)

 

(8,271

)

 

(14,543

)

 

—

 

(22,814

)

Total By-product credits

 

(53,093

)

 

(20,641

)

 

—

 

(73,734

)

 

(49,475

)

 

(18,951

)

 

—

 

(68,426

)

 

(61,463

)

 

(22,770

)

 

—

 

(84,233

)

Cash Cost, After By-product Credits

$

10,376

 

$

7,127

 

$

—

$

17,503

 

$

6,545

 

$

5,613

 

$

—

$

12,158

 

$

(7,915

)

$

3,766

 

$

—

$

(4,149

)

AISC, After By-product Credits

$

20,944

 

$

15,778

 

$

14,395

$

51,117

 

$

17,469

 

$

17,159

 

$

11,190

$

45,818

 

$

7,458

 

$

12,158

 

$

9,791

$

29,407

 

Divided by ounces produced

 

2,433

 

 

1,224

 

 

 

3,657

 

 

2,469

 

 

1,075

 

 

 

3,544

 

 

2,410

 

 

1,226

 

 

 

3,636

 

Cash Cost, Before By-product Credits, per Silver Ounce

$

26.08

 

$

22.68

 

 

$

24.95

 

$

22.69

 

$

22.87

 

 

$

22.74

 

$

22.21

 

$

21.65

 

 

$

22.03

 

By-product credits per ounce

 

(21.82

)

 

(16.86

)

 

 

(20.16

)

 

(20.04

)

 

(17.64

)

 

 

(19.31

)

 

(25.50

)

 

(18.58

)

 

 

(23.17

)

Cash Cost, After By-product Credits, per Silver Ounce

$

4.26

 

$

5.82

 

 

$

4.79

 

$

2.65

 

$

5.23

 

 

$

3.43

 

$

(3.29

)

$

3.07

 

 

$

(1.14

)

AISC, Before By-product Credits, per Silver Ounce

$

30.43

 

$

29.74

 

 

$

34.14

 

$

27.11

 

$

33.62

 

 

$

32.24

 

$

28.60

 

$

28.49

 

 

$

31.25

 

By-product credits per ounce

 

(21.82

)

 

(16.86

)

 

 

(20.16

)

 

(20.04

)

 

(17.64

)

 

 

(19.31

)

 

(25.50

)

 

(18.58

)

 

 

(23.17

)

AISC, After By-product Credits, per Silver Ounce

$

8.61

 

$

12.88

 

 

$

13.98

 

$

7.07

 

$

15.98

 

 

$

12.93

 

$

3.10

 

$

9.91

 

 

$

8.08

 

In thousands (except per ounce amounts)

Three Months Ended December 31, 2022 (5)

 

 

Three Months Ended September 30, 2022 (5)

 

 

Three Months Ended June 30, 2022 (5)

 

 

Casa Berardi

 

 

Total Gold

 

 

Casa Berardi

 

 

Total Gold

 

 

Casa Berardi

 

Total Gold

 

Total cost of sales

$

65,328

 

$

65,328

 

$

59,532

 

$

59,532

 

$

61,870

 

$

61,870

 

Depreciation, depletion and amortization

 

(14,568

)

 

(14,568

)

 

(15,089

)

 

(15,089

)

 

(15,459

)

 

(15,459

)

Treatment costs

 

521

 

 

521

 

 

429

 

 

429

 

 

457

 

 

457

 

Change in product inventory

 

1,122

 

 

1,122

 

 

420

 

 

420

 

 

(793

)

 

(793

)

Reclamation and other costs

 

(196

)

 

(196

)

 

(203

)

 

(203

)

 

(209

)

 

(209

)

Cash Cost, Before By-product Credits (1)

 

52,207

 

 

52,207

 

 

45,089

 

 

45,089

 

 

45,866

 

 

45,866

 

Reclamation and other costs

 

196

 

 

196

 

 

204

 

 

204

 

 

209

 

 

209

 

Sustaining capital

 

11,438

 

 

11,438

 

 

10,457

 

 

10,457

 

 

7,597

 

 

7,597

 

AISC, Before By-product Credits (1)

 

63,841

 

 

63,841

 

 

55,750

 

 

55,750

 

 

53,672

 

 

53,672

 

By-product credits:

 

 

 

 

 

 

 

 

 

 

 

 

Silver

 

(124

)

 

(124

)

 

(131

)

 

(131

)

 

(188

)

 

(188

)

Total By-product credits

 

(124

)

 

(124

)

 

(131

)

 

(131

)

 

(188

)

 

(188

)

Cash Cost, After By-product Credits

$

52,083

 

$

52,083

 

$

44,958

 

$

44,958

 

$

45,678

 

$

45,678

 

AISC, After By-product Credits

$

63,717

 

$

63,717

 

$

55,619

 

$

55,619

 

$

53,484

 

$

53,484

 

Divided by gold ounces produced

 

31

 

 

31

 

 

33

 

 

33

 

 

33

 

 

33

 

Cash Cost, Before By-product Credits, per Gold Ounce

$

1,700

 

$

1,700

 

$

1,353

 

$

1,353

 

$

1,377

 

$

1,377

 

By-product credits per ounce

 

(4

)

 

(4

)

 

(4

)

 

(4

)

 

(6

)

 

(6

)

Cash Cost, After By-product Credits, per Gold Ounce

$

1,696

 

$

1,696

 

$

1,349

 

$

1,349

 

$

1,371

 

$

1,371

 

AISC, Before By-product Credits, per Gold Ounce

$

2,079

 

$

2,079

 

$

1,673

 

$

1,673

 

$

1,611

 

$

1,611

 

By-product credits per ounce

 

(4

)

 

(4

)

 

(4

)

 

(4

)

 

(6

)

 

(6

)

AISC, After By-product Credits, per Gold Ounce

$

2,075

 

$

2,075

 

$

1,669

 

$

1,669

 

$

1,605

 

$

1,605

 

 

In thousands (except per ounce amounts)

 

Three Months Ended December 31, 2022 (5)

 

 

Three Months Ended September 30, 2022 (5)

 

 

Three Months Ended June 30, 2022 (5)

 

 

 

Total Silver

 

 

Total Gold

 

 

Total

 

 

Total Silver

 

 

Total Gold

 

 

Total

 

 

Total Silver

 

 

Total Gold

 

 

Total

 

Total cost of sales

 

$

102,893

 

 

$

65,328

 

 

$

168,221

 

 

$

76,666

 

 

$

59,532

 

 

$

136,198

 

 

$

90,854

 

 

$

61,870

 

 

$

152,724

 

Depreciation, depletion and amortization

 

 

(23,106

)

 

 

(14,568

)

 

 

(37,674

)

 

 

(17,566

)

 

 

(15,089

)

 

 

(32,655

)

 

 

(22,491

)

 

 

(15,459

)

 

 

(37,950

)

Treatment costs

 

 

15,801

 

 

 

521

 

 

 

16,322

 

 

 

14,268

 

 

 

429

 

 

 

14,697

 

 

 

13,581

 

 

 

457

 

 

 

14,038

 

Change in product inventory

 

 

(4,585

)

 

 

1,122

 

 

 

(3,463

)

 

 

7,486

 

 

 

420

 

 

 

7,906

 

 

 

(599

)

 

 

(793

)

 

 

(1,392

)

Reclamation and other costs

 

 

234

 

 

 

(196

)

 

 

38

 

 

 

(270

)

 

 

(203

)

 

 

(473

)

 

 

(1,261

)

 

 

(209

)

 

 

(1,470

)

Cash Cost, Before By-product Credits (1)

 

 

91,237

 

 

 

52,207

 

 

 

143,444

 

 

 

80,584

 

 

 

45,089

 

 

 

125,673

 

 

 

80,084

 

 

 

45,866

 

 

 

125,950

 

Reclamation and other costs

 

 

988

 

 

 

196

 

 

 

1,184

 

 

 

987

 

 

 

204

 

 

 

1,191

 

 

 

987

 

 

 

209

 

 

 

1,196

 

Sustaining capital

 

 

18,231

 

 

 

11,438

 

 

 

29,669

 

 

 

21,670

 

 

 

10,457

 

 

 

32,127

 

 

 

22,877

 

 

 

7,597

 

 

 

30,474

 

General and administrative

 

 

14,395

 

 

 

—

 

 

 

14,395

 

 

 

11,003

 

 

 

 

 

 

11,003

 

 

 

9,692

 

 

 

—

 

 

 

9,692

 

AISC, Before By-product Credits (1)

 

 

124,851

 

 

 

63,841

 

 

 

188,692

 

 

 

114,244

 

 

 

55,750

 

 

 

169,994

 

 

 

113,640

 

 

 

53,672

 

 

 

167,312

 

By-product credits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Zinc

 

 

(32,361

)

 

 

—

 

 

 

(32,361

)

 

 

(33,399

)

 

 

—

 

 

 

(33,399

)

 

 

(41,055

)

 

 

—

 

 

 

(41,055

)

Gold

 

 

(19,630

)

 

 

—

 

 

 

(19,630

)

 

 

(17,019

)

 

 

—

 

 

 

(17,019

)

 

 

(20,364

)

 

 

—

 

 

 

(20,364

)

Lead

 

 

(21,743

)

 

 

—

 

 

 

(21,743

)

 

 

(18,008

)

 

 

—

 

 

 

(18,008

)

 

 

(22,814

)

 

 

—

 

 

 

(22,814

)

Silver

 

 

—

 

 

 

(124

)

 

 

(124

)

 

 

 

 

 

(131

)

 

 

(131

)

 

 

 

 

 

(188

)

 

 

(188

)

Total By-product credits

 

 

(73,734

)

 

 

(124

)

 

 

(73,858

)

 

 

(68,426

)

 

 

(131

)

 

 

(68,557

)

 

 

(84,233

)

 

 

(188

)

 

 

(84,421

)

Cash Cost, After By-product Credits

 

$

17,503

 

 

$

52,083

 

 

$

69,586

 

 

$

12,158

 

 

$

44,958

 

 

$

57,116

 

 

$

(4,149

)

 

$

45,678

 

 

$

41,529

 

AISC, After By-product Credits

 

$

51,117

 

 

$

63,717

 

 

$

114,834

 

 

$

45,818

 

 

$

55,619

 

 

$

101,437

 

 

$

29,407

 

 

$

53,484

 

 

$

82,891

 

Divided by ounces produced

 

 

3,657

 

 

 

31

 

 

 

 

 

 

3,544

 

 

 

33

 

 

 

 

 

 

3,636

 

 

 

33

 

 

 

 

Cash Cost, Before By-product Credits, per Ounce

 

$

24.95

 

 

$

1,700

 

 

 

 

 

$

22.74

 

 

 

1,353

 

 

 

 

 

$

22.03

 

 

$

1,377

 

 

 

 

By-product credits per ounce

 

 

(20.16

)

 

 

(4

)

 

 

 

 

 

(19.31

)

 

 

(4

)

 

 

 

 

 

(23.17

)

 

 

(6

)

 

 

 

Cash Cost, After By-product Credits, per Ounce

 

$

4.79

 

 

$

1,696

 

 

 

 

 

$

3.43

 

 

$

1,349

 

 

 

 

 

$

(1.14

)

 

$

1,371

 

 

 

 

AISC, Before By-product Credits, per Ounce

 

$

34.14

 

 

$

2,079

 

 

 

 

 

$

32.24

 

 

$

1,673

 

 

 

 

 

$

31.25

 

 

$

1,611

 

 

 

 

By-product credits per ounce

 

 

(20.16

)

 

 

(4

)

 

 

 

 

 

(19.31

)

 

 

(4

)

 

 

 

 

 

(23.17

)

 

 

(6

)

 

 

 

AISC, After By-product Credits, per Ounce

 

$

13.98

 

 

$

2,075

 

 

 

 

 

$

12.93

 

 

$

1,669

 

 

 

 

 

$

8.08

 

 

$

1,605

 

 

 

 

(1)

Includes all direct and indirect operating costs related 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 and royalties, before by-product revenues earned from all metals other than the primary metal produced at each operation. AISC, Before By-product Credits also includes reclamation and sustaining capital costs.

 

 

(2)

AISC, Before By-product Credits for our consolidated silver properties includes corporate costs for general and administrative expense, and sustaining capital.

 

 

(3)

During the three months ended March 31, 2023, the Company completed the necessary studies to conclude usage of the F-160 pit as a tailings storage facility after mining is complete. As a result, a portion of the mining costs have been excluded from Cash Cost, Before By-product Credits and AISC, Before By-product Credits.

 

 

(4)

Other includes $354,000 and $786,000 of total cost of sales for the three and six months ended June 30, 2023, respectively, related to the environmental services business acquired as part of the Alexco acquisition.

 

 

(5)

Prior year presentation has been adjusted to conform with current year presentation to eliminate exploration costs from the calculation of AISC, Before By-product Credits as exploration is an activity directed at the Corporate level to find new mineral reserve and resource deposits, and therefore we believe it is inappropriate to include exploration costs in the calculation of AISC, Before By-product Credits for a specific mining operation.

 

 

(6)

Keno Hill is in the ramp-up phase of production and as such costs associated with ramp up at this operation which amounted to $9.4 million and $15.3 million for the three and six months ended June 30, 2023 are excluded from the calculation of total cost of sales, Cash Cost, Before By-product Credits, Cash Cost, After By-product Credits, AISC, Before By-product Credits, and AISC, After By-product Credits.

 

 

(7)

Casa Berardi operations were suspended in June 2023 in response to the directive of the Quebec Ministry of Natural Resources and Forests. Suspension costs amounted to $2.2 million for the three and six month periods ended June 30, 2023 and are excluded from the calculation of total cost of sales, Cash Cost, Before By-product Credits, Cash Cost, After By-product Credits, AISC, Before By-product Credits, and AISC, After By-product Credits.

 

2023 Guidance, Previous and Current Estimates: Reconciliation of Cost of Sales to Non-GAAP Measures

In thousands (except per ounce amounts)

Previous Estimate for Twelve Months Ended December 31, 2023

 

Greens Creek

Lucky Friday

Keno Hill

Corporate(3)

Total Silver

Casa Berardi

Total Gold

Total cost of sales

$

245,000

 

$

128,000

 

$

40,000

 

$

—

$

413,000

 

$

220,000

 

$

220,000

 

Depreciation, depletion and amortization

 

(46,000

)

 

(37,900

)

 

(6,800

)

 

—

 

(90,700

)

 

(52,800

)

 

(52,800

)

Treatment costs

 

43,700

 

 

15,375

 

 

5,150

 

 

—

 

64,225

 

 

300

 

 

300

 

Change in product inventory

 

(5,100

)

 

(750

)

 

1,000

 

 

—

 

(4,850

)

 

(1,300

)

 

(1,300

)

Reclamation and other costs

 

1,000

 

 

1,000

 

 

750

 

 

—

 

2,750

 

 

500

 

 

500

 

Cash Cost, Before By-product Credits (1)

 

238,600

 

 

105,725

 

 

40,100

 

 

—

 

384,425

 

 

166,700

 

 

166,700

 

Reclamation and other costs

 

2,800

 

 

1,100

 

 

—

 

 

—

 

3,900

 

 

800

 

 

800

 

Exploration

 

5,900

 

 

—

 

 

2,600

 

 

2,250

 

10,750

 

 

5,400

 

 

5,400

 

Sustaining capital

 

48,500

 

 

30,200

 

 

550

 

 

—

 

79,250

 

 

52,200

 

 

52,200

 

General and administrative

 

—

 

 

—

 

 

—

 

 

44,000

 

44,000

 

 

—

 

 

—

 

AISC, Before By-product Credits (1)

 

295,800

 

 

137,025

 

 

43,250

 

 

46,250

 

522,325

 

 

225,100

 

 

225,100

 

By-product credits:

 

 

 

 

 

 

 

 

 

 

 

 

 

Zinc

 

(113,500

)

 

(29,900

)

 

(2,400

)

 

—

 

(145,800

)

 

—

 

 

—

 

Gold

 

(90,100

)

 

—

 

 

—

 

 

—

 

(90,100

)

 

—

 

 

—

 

Lead

 

(34,800

)

 

(64,700

)

 

(4,500

)

 

—

 

(104,000

)

 

—

 

 

—

 

Silver

 

—

 

 

—

 

 

—

 

 

—

 

—

 

 

(600

)

 

(600

)

Total By-product credits

 

(238,400

)

 

(94,600

)

 

(6,900

)

 

—

 

(339,900

)

 

(600

)

 

(600

)

Cash Cost, After By-product Credits

$

200

 

$

11,125

 

$

33,200

 

$

—

$

44,525

 

$

166,100

 

$

166,100

 

AISC, After By-product Credits

$

57,400

 

$

42,425

 

$

36,350

 

$

46,250

$

182,425

 

$

224,500

 

$

224,500

 

Divided by silver ounces produced

 

9,250

 

 

4,750

 

 

2,750

 

 

 

16,750

 

 

112.5

 

 

112.5

 

Cash Cost, Before By-product Credits, per Silver Ounce

$

25.79

 

$

22.26

 

$

14.58

 

 

$

22.95

 

$

1,482

 

$

1,482

 

By-product credits per silver ounce

 

(25.77

)

 

(19.92

)

 

(2.51

)

 

 

(20.29

)

 

(5

)

 

(5

)

Cash Cost, After By-product Credits, per Silver Ounce

$

0.02

 

$

2.34

 

$

12.07

 

 

$

2.66

 

$

1,477

 

$

1,477

 

AISC, Before By-product Credits, per Silver Ounce

$

31.98

 

$

28.85

 

$

15.73

 

 

$

31.18

 

$

2,001

 

$

2,001

 

By-product credits per silver ounce

 

(25.77

)

 

(19.92

)

 

(2.51

)

 

 

(20.29

)

 

(5

)

 

(5

)

AISC, After By-product Credits, per Silver Ounce

$

6.21

 

$

8.93

 

$

13.22

 

 

$

10.89

 

$

1,996

 

$

1,996

 

 

In thousands (except per ounce amounts)

Current Estimate for Twelve Months Ended December 31, 2023

 

Greens Creek

Lucky Friday

Keno Hill

Corporate(2)

Total Silver

Casa Berardi

Total Gold

Total cost of sales

$

245,000

 

$

130,600

 

$

40,000

 

$

—

$

415,600

 

$

215,000

 

$

215,000

 

Depreciation, depletion and amortization

 

(46,000

)

 

(38,500

)

 

(6,800

)

 

—

 

(91,300

)

 

(52,800

)

 

(52,800

)

Treatment costs

 

43,700

 

 

18,900

 

 

5,150

 

 

—

 

67,750

 

 

300

 

 

300

 

Change in product inventory

 

(5,100

)

 

(2,500

)

 

1,000

 

 

—

 

(6,600

)

 

(1,300

)

 

(1,300

)

Reclamation and other costs

 

1,000

 

 

500

 

 

750

 

 

—

 

2,250

 

 

500

 

 

500

 

Cash Cost, Before By-product Credits (1)

 

238,600

 

 

109,000

 

 

40,100

 

 

—

 

387,700

 

 

161,700

 

 

161,700

 

Reclamation and other costs

 

2,800

 

 

1,100

 

 

—

 

 

—

 

3,900

 

 

800

 

 

800

 

Sustaining capital

 

44,350

 

 

35,600

 

 

550

 

 

—

 

80,500

 

 

37,900

 

 

37,900

 

General and administrative

 

—

 

 

—

 

 

—

 

 

44,000

 

44,000

 

 

—

 

 

—

 

AISC, Before By-product Credits (1)

 

285,750

 

 

145,700

 

 

40,650

 

 

44,000

 

516,100

 

 

200,400

 

 

200,400

 

By-product credits:

 

 

 

 

 

 

 

 

 

 

 

 

 

Zinc

 

(92,700

)

 

(26,300

)

 

(1,800

)

 

—

 

(120,800

)

 

—

 

 

—

 

Gold

 

(110,000

)

 

—

 

 

—

 

 

—

 

(110,000

)

 

—

 

 

—

 

Lead

 

(32,800

)

 

(62,100

)

 

(3,200

)

 

—

 

(98,100

)

 

—

 

 

—

 

Silver

 

—

 

 

—

 

 

—

 

 

—

 

—

 

 

(600

)

 

(600

)

Total By-product credits

 

(235,500

)

 

(88,400

)

 

(5,000

)

 

—

 

(328,900

)

 

(600

)

 

(600

)

Cash Cost, After By-product Credits

$

3,100

 

$

20,600

 

$

35,100

 

$

—

$

58,800

 

$

161,100

 

$

161,100

 

AISC, After By-product Credits

$

50,250

 

$

57,300

 

$

35,650

 

$

44,000

$

187,200

 

$

199,800

 

$

199,800

 

Divided by silver ounces produced

 

9,250

 

 

4,750

 

 

2,750

 

 

 

16,750

 

 

90.0

 

 

90.0

 

Cash Cost, Before By-product Credits, per Silver Ounce

$

25.79

 

$

22.95

 

$

14.58

 

 

$

23.15

 

$

1,797

 

$

1,797

 

By-product credits per silver ounce

 

(25.46

)

 

(18.61

)

 

(1.82

)

 

 

(19.64

)

 

(7

)

 

(7

)

Cash Cost, After By-product Credits, per Silver Ounce

$

0.34

 

$

4.34

 

$

12.76

 

 

$

3.51

 

$

1,790

 

$

1,790

 

AISC, Before By-product Credits, per Silver Ounce

$

30.89

 

$

30.67

 

$

14.78

 

 

$

30.81

 

$

2,227

 

$

2,227

 

By-product credits per silver ounce

 

(25.46

)

 

(18.61

)

 

(1.82

)

 

 

(19.64

)

 

(7

)

 

(7

)

AISC, After By-product Credits, per Silver Ounce

$

5.43

 

$

12.06

 

$

12.96

 

 

$

11.18

 

$

2,220

 

$

2,220

 

(1)

Includes all direct and indirect operating costs related 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 and royalties, before by-product revenues earned from all metals other than the primary metal produced at each operation. AISC, Before By-product Credits also includes reclamation and sustaining capital costs.

 

(2)

AISC, Before By-product Credits for our consolidated silver properties includes corporate costs for general and administrative expense, and sustaining capital.

 

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 and mining taxes, depreciation, depletion, and amortization expense, ramp-up and suspension costs, gains and losses on disposition of properties, plants, equipment and mineral interests, foreign exchange gains and losses, fair value adjustments, net, interest and other income, provisions for environmental matters, stock-based compensation, provisional price gains and losses, monetization of zinc hedges and adjustments of inventory to net realizable value. 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 loss and debt to adjusted EBITDA and net debt:

Dollars are in thousands

2Q-2023

 

1Q-2023

 

4Q-2022

 

3Q-2022

 

2Q-2022

 

LTM June 30, 2023

 

FY 2022

Net loss

$

(15,694

)

$

(3,171

)

$

(4,452

)

$

(23,526

)

$

(13,523

)

$

(46,843

)

$

(37,348

)

Interest expense

 

10,311

 

 

10,165

 

 

11,008

 

 

10,874

 

 

10,505

 

 

42,358

 

 

42,793

 

Income and mining taxes

 

5,162

 

 

3,242

 

 

(3,924

)

 

(9,527

)

 

254

 

 

(5,047

)

 

(7,566

)

Depreciation, depletion and amortization

 

34,718

 

 

39,892

 

 

37,576

 

 

32,992

 

 

38,072

 

 

145,178

 

 

143,938

 

Ramp-up and suspension costs

 

16,323

 

 

11,336

 

 

7,575

 

 

5,092

 

 

5,242

 

 

40,326

 

 

24,114

 

(Gain) loss on disposition of properties, plants, equipment, and mineral interests

 

(75

)

 

—

 

 

—

 

 

19

 

 

5

 

 

(56

)

 

16

 

Foreign exchange loss (gain)

 

3,850

 

 

(108

)

 

900

 

 

(5,667

)

 

(4,482

)

 

(1,025

)

 

(7,211

)

Fair value adjustments, net

 

2,558

 

 

(3,181

)

 

(9,985

)

 

4,241

 

 

16,428

 

 

(6,368

)

 

4,788

 

Provisional price (gains) losses

 

(2,143

)

 

(2,093

)

 

(625

)

 

6,625

 

 

15,807

 

 

1,764

 

 

20,839

 

Provision for closed operations and environmental matters

 

3,111

 

 

1,044

 

 

3,741

 

 

1,781

 

 

1,628

 

 

9,677

 

 

8,793

 

Stock-based compensation

 

1,498

 

 

1,190

 

 

1,714

 

 

1,773

 

 

1,254

 

 

6,175

 

 

6,012

 

Adjustments of inventory to net realizable value

 

2,997

 

 

4,521

 

 

487

 

 

1,405

 

 

754

 

 

9,410

 

 

2,646

 

Monetization of zinc hedges

 

5,467

 

 

(579

)

 

16,664

 

 

—

 

 

—

 

 

21,552

 

 

16,664

 

Other

 

(343

)

 

(355

)

 

1,582

 

 

473

 

 

(1,470

)

 

1,357

 

 

(986

)

Adjusted EBITDA

$

67,739

 

$

61,903

 

$

62,261

 

$

26,555

 

$

70,474

 

$

218,458

 

$

217,492

 

Total debt

 

 

 

 

 

 

 

 

 

 

$

571,030

 

$

527,225

 

Less: Cash and cash equivalents

 

 

 

 

 

 

 

 

 

 

 

106,786

 

 

104,743

 

Net debt

 

 

 

 

 

 

 

 

 

 

$

464,244

 

$

422,482

 

Net debt/LTM adjusted EBITDA (non-GAAP)

 

 

 

 

 

 

 

 

 

 

 

2.1

 

 

1.9

 

 

Reconciliation of Net (Loss) Income Applicable to Common Stockholders (GAAP) to Adjusted Net (Loss) Income Applicable to Common Shareholders (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

2Q-2023

 

1Q-2023

 

4Q-2022

 

3Q-2022

 

2Q-2022

 

YTD-2023

 

YTD-2022

Net loss applicable to common stockholders

$

(15,832

)

$

(3,309

)

$

(4,590

)

$

(23,664

)

$

(13,661

)

$

(19,143

)

$

(9,646

)

Adjusted for items below:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair value adjustments, net

 

2,558

 

 

(3,181

)

 

(9,985

)

 

4,241

 

 

16,428

 

$

(624

)

 

10,532

 

Provisional pricing (gains) losses

 

(2,143

)

 

(2,093

)

 

(625

)

 

6,625

 

 

15,807

 

$

(4,236

)

 

14,839

 

Environmental accruals

 

1,989

 

 

—

 

 

2,860

 

 

—

 

 

—

 

$

1,989

 

 

14

 

Foreign exchange loss (gain)

 

3,850

 

 

(108

)

 

900

 

 

(5,667

)

 

(4,482

)

$

3,742

 

 

(2,444

)

Ramp-up and suspension costs

 

16,323

 

 

11,336

 

 

7,575

 

 

5,092

 

 

5,242

 

$

27,659

 

 

11,447

 

(Gain) loss on disposition of properties, plants, equipment and mineral interests

 

(75

)

 

—

 

 

—

 

 

19

 

 

5

 

$

(75

)

 

(3

)

Adjustments of inventory to net realizable value

 

2,997

 

 

4,521

 

 

487

 

 

1,405

 

 

754

 

$

7,518

 

 

754

 

Monetization of zinc hedges

 

5,467

 

 

(579

)

 

16,664

 

 

—

 

 

—

 

$

4,888

 

 

—

 

Other

 

—

 

 

—

 

 

939

 

 

—

 

 

—

 

$

—

 

 

—

 

Adjusted income (loss) applicable to common stockholders

$

15,133

 

$

6,587

 

$

14,225

 

$

(11,949

)

$

20,093

 

$

21,720

 

$

25,493

 

Weighted average shares - basic

 

604,088

 

 

600,075

 

 

596,959

 

 

554,531

 

 

539,401

 

 

602,077

 

 

538,943

 

Weighted average shares - diluted

 

604,088

 

 

600,075

 

 

596,959

 

 

554,531

 

 

539,401

 

 

602,077

 

 

539,401

 

Basic adjusted net income (loss) per common stock (in cents)

 

0.03

 

 

0.01

 

 

0.02

 

 

(0.02

)

 

0.04

 

 

0.04

 

 

0.05

 

Diluted adjusted net income (loss) per common stock (in cents)

 

0.03

 

 

0.01

 

 

0.02

 

 

(0.02

)

 

0.04

 

 

0.04

 

 

0.05

 

 

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 June 30,

 

Six Months Ended June 30,

 

 

2023

 

2022

 

2023

 

2022

Cash provided by operating activities

 

$

23,777

 

 

$

40,183

 

 

$

64,380

 

 

$

78,092

 

Less: Additions to properties, plants equipment and mineral interests

 

$

(51,468

)

 

$

(34,329

)

 

$

(105,911

)

 

$

(55,807

)

Free cash flow

 

$

(27,691

)

 

$

5,854

 

 

$

(41,531

)

 

$

22,285

 

 

Free cash flow is a non-GAAP measure calculated as cash provided by operating activities less additions to properties, plants and equipment. Cash provided by operating activities for the Greens Creek, Lucky Friday, and Casa Berardi operating segments excludes exploration and pre-development expense, as it is a discretionary expenditure and not a component of the mines’ operating performance.

Dollars are in thousands

Total Silver Operations

Six Months Ended June 30,

Years Ended December 31,

 

 

2023

2022

2021

2020

Cash provided by operating activities

$

787,521

 

$

151,673

 

$

188,434

 

$

271,309

 

$

176,105

 

Exploration

$

12,719

 

$

2,208

 

$

5,920

 

$

4,591

 

$

-

 

Less: Additions to properties, plants equipment and mineral interests

$

(233,629

)

$

(46,510

)

$

(87,890

)

$

(53,768

)

$

(45,461

)

Free cash flow

$

566,611

 

$

107,371

 

$

106,464

 

$

222,132

 

$

130,644

 

 

TABLE A Assay Results – Q2 2023

Greens Creek (Alaska)

Zone

Drillhole Number

Drillhole Azm/Dip

Sample From (feet)

Sample To (feet)

Est. True Width (feet)

Silver (oz/ton)

Gold (oz/ton)

Zinc (%)

Lead (%)

Depth From Mine Portal (feet)

9A

GC6023

207/21

239.8

250.2

10.1

10.7

0.04

8.8

6.5

-19

200 South

GC5854

243/-31

110.0

112.0

0.7

0.9

0.00

11.1

4.5

-1357

200 South

GC5872

239/-89

1173.0

1188.0

15.0

10.6

0.09

0.2

0.1

-2477

200 South

GC5891

157/-64

103.4

106.8

3.3

15.2

0.02

19.5

7.5

-1399

200 South

GC5891

157/-64

715.0

725.0

8.1

17.0

0.19

3.3

1.9

-1950

200 South

GC5891

157/-64

753.5

755.0

1.2

4.1

0.01

14.7

8.9

-1950

200 South

GC5913

305/49

418.0

422.0

2.2

0.9

0.24

4.9

1.7

-1449

East Zone

GC5926

74/21

573.5

577.0

2.4

8.1

0.08

1.0

0.5

860

East Zone

GC5926

74/21

585.2

590.0

3.2

14.8

0.14

4.5

2.0

860

East Zone

GC5937

63/-28

322.0

328.0

5.7

12.6

0.05

7.7

3.5

402

East Zone

GC6027

49/47

145.0

151.8

3.6

20.9

0.04

3.4

2.2

10

East Zone

GC6027

49/47

158.0

163.0

2.7

13.9

0.02

2.7

1.7

10

Gallagher Zone

GC5931

63/-60

200.0

202.0

1.8

6.9

0.24

2.0

1.0

-926

Gallagher Zone

GC5931

63/-60

211.0

260.5

45.3

7.9

0.22

10.5

4.8

-976

Gallagher Zone

GC5931

63/-60

377.0

389.5

12.5

3.7

0.12

8.8

3.8

-1089

Gallagher Zone

GC5931

63/-60

463.0

464.0

0.9

2.8

0.02

9.1

5.9

-1154

Gallagher Zone

GC5931

63/-60

480.5

486.0

4.9

6.4

0.06

4.4

2.0

-1173

Gallagher Zone

GC5945

75/-59

208.0

213.5

5.2

10.6

0.15

1.9

1.2

-992

Gallagher Zone

GC5945

75/-59

235.0

237.0

1.9

27.0

0.19

5.4

3.4

-992

Gallagher Zone

GC5945

75/-59

244.0

266.0

13.7

7.8

0.17

7.1

4.2

-1067

Gallagher Zone

GC5957

67/-81

210.3

212.3

2.0

7.4

0.04

3.9

2.1

-957

Gallagher Zone

GC5971

74/-51

427.0

432.0

4.4

9.5

0.21

7.0

3.3

-1088

Gallagher Zone

GC5971

74/-51

469.3

484.2

14.9

9.0

0.07

2.6

1.3

-1127

Gallagher Zone

GC5974

76/-39

268.8

298.0

22.4

3.6

0.07

6.0

2.6

-920

Gallagher Zone

GC5985

63/-21

78.5

92.0

9.0

15.0

0.28

2.6

1.3

-752

Gallagher Zone

GC5985

63/-21

212.0

242.0

24.9

3.9

0.09

8.4

3.5

-804

Gallagher Zone

GC5985

63/-21

306.5

322.0

15.3

3.9

0.03

6.8

3.8

-835

Gallagher Zone

GC5988

63/-36

75.0

80.3

5.0

26.1

0.08

4.7

2.4

-769

Gallagher Zone

GC5988

63/-36

89.5

115.7

25.7

9.8

0.19

10.8

2.9

-786

Gallagher Zone

GC5988

63/-36

202.0

222.7

20.6

4.8

0.11

5.5

2.6

-847

Gallagher Zone

GC5988

63/-36

289.0

291.0

2.0

9.7

0.03

8.3

5.3

-897

Gallagher Zone

GC5989

63/-59

57.0

61.5

4.3

7.3

0.10

7.7

4.0

-776

Gallagher Zone

GC5989

63/-59

86.5

119.0

32.4

3.4

0.10

7.4

3.4

-812

Gallagher Zone

GC5990

63/-87

53.0

62.0

9.0

4.1

0.06

9.7

3.9

-784

Gallagher Zone

GC5993

73/-23

70.0

75.0

3.5

7.5

0.11

17.6

9.3

-758

Gallagher Zone

GC5993

73/-23

150.5

250.5

74.0

4.7

0.13

6.9

2.6

-819

Gallagher Zone

GC5993

73/-23

320.0

329.0

8.6

4.7

0.04

11.3

9.1

-876

Gallagher Zone

GC5999

63/-49

57.5

67.0

9.5

2.8

0.06

8.1

4.2

-771

Gallagher Zone

GC5999

63/-49

100.5

113.5

13.0

3.0

0.13

9.5

3.0

-806

Gallagher Zone

GC6001

60/-29

95.7

233.0

111.1

4.2

0.13

9.2

3.9

-802

Gallagher Zone

GC6003

63/-11

111.0

115.0

2.9

14.2

0.18

3.5

1.6

-832

Gallagher Zone

GC6003

63/-11

450.0

452.0

1.9

20.0

0.08

0.5

0.3

-1197

Gallagher Zone

GC6003

63/-11

455.0

458.0

2.4

14.5

0.03

0.7

0.3

-1177

Gallagher Zone

GC6007

243/25

86.5

94.0

5.1

16.9

0.57

5.9

2.7

-668

Gallagher Zone

GC6007

243/25

141.0

158.2

12.2

5.2

0.07

4.4

2.0

-649

Gallagher Zone

GC6008

244/52

35.0

45.5

7.9

3.5

0.06

4.9

2.3

-669

Gallagher Zone

GC6014

257/-84

43.0

51.4

8.3

5.0

0.06

4.7

2.6

-741

Gallagher Zone

GC6014

257/-84

496.5

543.5

41.3

21.6

0.07

0.6

0.4

-1239

Gallagher Zone

GC6014

257/-84

556.5

559.0

2.2

20.5

0.13

3.0

1.6

-1239

Gallagher Zone

GC6021

57/-45

13.3

18.5

5.2

2.4

0.04

10.7

5.1

-735

Gallagher Zone

GC6021

57/-45

124.0

132.0

4.6

7.2

0.08

3.6

1.8

-812

Gallagher Zone

GC6021

57/-45

192.0

195.0

2.8

0.3

0.39

0.0

0.0

-859

Gallagher Zone

GC6022

63/-11

17.8

33.4

12.4

12.5

0.21

9.5

4.6

-722

Gallagher Zone

GC6022

63/-11

60.8

73.0

10.0

7.5

0.08

5.5

2.2

-730

Gallagher Zone

GC6022

63/-11

160.0

190.0

26.9

4.1

0.10

3.9

1.8

-750

Upper Plate

GC6004

313/77

500.5

502.2

1.7

24.3

0.00

1.1

0.6

306

Upper Plate

GC6020

282/63

590.5

597.5

7.0

10.8

0.06

14.1

6.0

344

Upper Plate

GC6025

27/47

750.4

752.6

2.1

26.1

0.26

16.6

6.6

372

Upper Plate

GC6036

40/73

490.0

503.5

13.5

17.0

0.07

6.4

3.2

304

Upper Plate

GC6036

40/73

526.5

529.0

2.5

13.6

0.03

13.4

4.1

336

Upper Plate

GC6039

47/68

485.5

500.5

13.4

15.2

0.04

1.1

0.5

328

Upper Plate

GC6039

47/68

534.0

537.5

3.4

21.2

0.02

18.0

6.5

288

Upper Plate

GC6041

61/67

476.2

491.0

13.2

23.0

0.05

6.2

3.1

278

Upper Plate

GC6041

61/67

512.5

515.3

2.8

13.6

0.02

23.4

6.9

302

Upper Plate

GC6044

59/73

467.0

468.5

1.5

4.2

0.00

14.8

8.0

275

Upper Plate

GC6044

59/73

478.8

489.0

10.1

12.2

0.06

5.2

2.7

295

Upper Plate

GC6044

59/73

508.5

509.5

1.0

19.5

0.02

7.7

2.6

315

Upper Plate

GC6048

75/67

461.0

462.0

1.0

25.7

0.02

14.8

2.1

251

Upper Plate

GC6050

88/64

432.0

434.5

2.3

16.3

0.01

13.0

7.3

219

Upper Plate

GC6054

100/71

499.0

502.0

2.9

0.3

2.35

0.2

0.2

295

Upper Plate

GC5979

14/74

492.0

510.0

18.0

20.7

0.06

1.7

0.7

319

Upper Plate

GC5979

14/74

545.0

549.5

4.3

33.3

0.03

13.8

5.4

263

Upper Plate

GC6004

313/77

500.5

502.2

1.7

24.3

0.00

1.1

0.6

306

Upper Plate

GC6025

27/47

750.4

752.6

2.1

26.1

0.26

16.6

6.6

372

West Definition

GC5933

73/-19

169.0

194.0

23.3

4.5

0.21

5.9

0.9

-534

West Definition

GC5933

73/-19

283.5

289.0

4.8

2.1

0.05

17.3

1.7

-570

West Definition

GC5933

73/-19

500.3

502.0

1.6

9.5

0.01

3.2

1.4

-651

West Definition

GC5933

73/-19

538.3

539.3

1.0

10.3

0.05

15.2

3.9

-669

West Definition

GC5934

63/-43

321.5

322.5

1.0

14.5

0.03

3.7

1.7

332

West Definition

GC5934

63/-43

327.5

328.5

1.0

8.3

0.04

2.6

1.2

332

West Definition

GC5939

72/-14

176.5

202.5

21.9

4.7

0.23

10.2

1.9

-528

West Definition

GC5939

72/-14

296.5

297.5

0.9

5.2

0.04

12.6

1.9

-565

West Definition

GC5939

72/-14

527.0

530.5

3.3

7.9

0.03

6.4

2.9

-621

West Definition

GC5940

45/-58

314.0

318.0

3.8

41.2

0.46

5.2

2.5

305

West Definition

GC5944

49/-49

320.5

332.5

12.0

10.1

0.05

1.9

0.9

308

West Definition

GC5947

34/-49

314.0

316.0

2.0

9.9

0.03

1.5

0.6

311

West Definition

GC5948

72/-10

581.9

593.0

10.2

5.8

0.04

12.7

3.2

-590

West Definition

GC5950

75/-47

327.5

340.0

12.2

8.8

0.05

3.5

1.9

304

West Definition

GC5952

73/-40

309.0

312.0

3.0

5.4

0.02

5.4

2.6

345

West Definition

GC5952

73/-40

334.7

355.0

17.6

5.9

0.01

3.4

2.1

318

West Definition

GC5954

92/-56

342.0

344.0

1.9

38.2

0.20

4.3

0.8

-746

West Definition

GC5954

92/-56

358.5

361.0

2.4

62.8

0.34

1.0

0.4

-741

West Definition

GC5956

67/-11

558.0

563.0

4.8

10.5

0.04

11.5

3.6

-582

West Definition

GC5956

67/-11

578.5

580.0

1.4

20.2

0.09

19.2

7.4

-587

West Definition

GC5958

84/-42

343.0

355.0

11.4

6.6

0.09

2.4

1.4

285

West Definition

GC5958

84/-42

360.0

372.0

11.4

14.0

0.08

7.6

5.1

267

West Definition

GC5964

67/-20

168.0

182.0

11.2

6.3

0.15

8.9

1.5

-536

West Definition

GC5964

67/-20

271.8

275.1

3.2

2.4

0.07

19.8

1.0

-571

West Definition

GC5973

62/-15

537.0

542.0

4.2

4.4

0.09

17.7

4.9

-609

West Definition

GC5973

62/-15

554.5

558.5

3.4

7.8

0.03

14.4

5.6

-613

West Definition

GC5976

61/-22

162.0

179.0

15.8

4.4

0.22

6.7

0.8

-531

West Definition

GC5976

61/-22

496.6

505.2

8.3

13.0

0.11

14.4

3.4

-635

West Definition

GC5980

61/-27

477.5

486.0

8.1

7.7

0.04

8.0

3.3

-670

West Definition

GC5982

56/-14

546.0

557.5

9.4

9.2

0.06

31.6

10.8

-579

West Definition

GC5986

54/-28

455.9

461.8

5.7

10.3

0.05

16.4

2.5

-676

West Definition

GC5987

57/-10

558.5

559.5

0.7

9.5

0.02

9.0

3.2

-544

West Definition

GC5992

53/-34

443.2

449.4

6.2

2.9

0.03

14.3

2.3

-718

West Definition

GC6000

50/-21

536.0

554.0

15.2

63.4

0.84

11.9

3.8

-641

West Definition

GC6005

71/-7

606.5

620.0

11.6

7.4

0.04

12.3

2.6

-530

West Definition

GC6009

47/-30

478.2

489.0

10.0

4.6

0.13

6.9

1.6

-704

West Definition

GC6013

71/-2

613.2

621.6

7.4

23.9

0.04

8.9

3.6

-519

West Definition

GC6019

54/-7

541.0

544.0

2.7

7.0

0.06

14.7

4.0

-543

West Definition

GC6019

54/-7

548.5

549.5

0.9

12.2

0.06

5.6

2.8

-543

West Definition

GC6019

54/-7

554.0

555.0

0.9

7.6

0.08

3.3

1.3

-543

West Definition

GC6028

54/-11

515.8

519.0

3.1

22.3

0.29

8.8

3.3

-585

West Definition

GC6032

55/-2

545.9

551.9

5.5

16.7

0.20

7.3

2.5

-517

West Definition

GC6040

60/-5

545.0

546.5

1.3

18.6

0.04

10.1

5.4

-528

West Definition

GC6042

65/-23

468.4

470.5

2.1

5.6

0.03

18.7

4.5

-678

West Definition

GC6049

85/-12

563.0

571.1

6.0

2.2

0.02

19.0

2.8

-565

West Definition

GC6055

65/-18

501.5

506.0

3.3

3.0

0.04

26.7

4.6

-603

West Definition

GC6056

52/2

322.0

324.5

1.8

3.6

0.13

11.3

0.1

-451

West Definition

GC6058

52/6

658.1

665.3

5.4

7.5

0.07

7.7

1.4

-391

West Definition

GC6062

51/-13

495.5

501.0

5.1

4.6

0.05

20.6

4.6

-606

 

Keno Hill (Yukon)

Zone

Drillhole Number

Drillhole Azm/Dip

Sample From (feet)

Sample To (feet)

True Width (feet)

Silver (oz/ton)

Gold (oz/ton)

Lead (%)

Zinc (%)

Depth From Surface (feet)

Flame and Moth

FMUG22-030

276/-10

164.7

167.6

2.6

4.9

0.01

1.5

0.3

368

Flame and Moth

FMUG22-030

276/-10

193.4

197.1

3.4

16.5

0.00

2.5

0.5

372

Flame and Moth

FMUG22-030

276/-10

209.3

220.1

10.4

9.7

0.01

2.6

1.7

374

Flame and Moth

FMUG22-030

276/-10

227.4

228.1

0.8

34.4

0.00

2.0

3.3

377

Flame and Moth

FMUG22-031

268/-16

200.0

207.8

5.9

16.0

0.00

0.9

0.2

398

Flame and Moth

FMUG22-031

268/-16

216.2

222.3

5.2

4.1

0.00

1.6

0.4

400

Flame and Moth

FMUG22-031

268/-16

230.6

231.7

0.9

7.4

0.00

1.6

0.6

404

Flame and Moth

FMUG22-032

262/12

271.8

286.3

8.2

1.8

0.01

0.7

0.2

277

Flame and Moth

FMUG22-032

262/12

293.8

305.1

8.8

9.6

0.00

1.1

1.3

270

Flame and Moth

FMUG22-034

262/-6

191.9

193.2

0.7

1.2

0.00

1.9

0.1

360

Flame and Moth

FMUG22-034

262/-6

206.0

207.2

0.6

6.3

0.01

0.1

0.2

361

Flame and Moth

FMUG22-034

262/-6

230.9

253.3

16.5

1.7

0.00

0.5

0.3

365

Flame and Moth

FMUG22-036

262/-25

202.9

207.0

2.6

8.4

0.00

0.9

0.2

429

Flame and Moth

FMUG22-036

262/-25

215.9

241.6

21.3

5.9

0.00

2.5

0.5

440

Flame and Moth

FMUG22-037

256/-2

255.1

257.7

1.1

2.7

0.00

0.6

0.2

346

Flame and Moth

FMUG22-039

252/-6

276.2

276.9

0.4

4.1

0.00

0.9

0.8

366

Flame and Moth

FMUG22-039

252/-6

292.7

295.3

1.5

15.3

0.00

0.7

2.6

367

Flame and Moth

FMUG22-039

252/-6

301.8

303.3

0.8

11.9

0.00

0.1

0.3

368

Bermingham

BMUG23-037

140/4

227.0

239.9

12.2

3.1

0.00

0.6

0.6

359

Bermingham

BMUG23-037

140/4

259.6

262.5

2.8

2.2

0.00

0.1

1.1

357

Bermingham

BMUG23-037

140/4

285.1

289.3

4.0

2.0

0.00

0.0

0.3

353

Bermingham

BMUG23-037

140/4

425.2

426.2

0.5

10.6

0.00

0.1

0.3

339

Bermingham

BMUG23-037

140/4

435.9

443.7

5.2

12.3

0.01

1.7

0.6

337

Bermingham

BMUG23-038

140/-8

240.5

241.1

0.6

7.7

0.00

0.6

0.2

408

Bermingham

BMUG23-038

140/-8

362.2

362.9

0.4

3.8

0.00

1.5

0.8

419

Bermingham

BMUG23-038

140/-8

478.8

480.8

1.2

16.1

0.00

0.5

2.5

397

Bermingham

BMUG23-038

140/-8

520.0

521.2

0.7

3.1

0.00

0.5

0.5

433

Bermingham

BMUG23-039

137/-1

227.6

230.6

2.7

19.7

0.00

0.1

2.0

378

Bermingham

BMUG23-039

137/-1

447.8

452.8

3.5

4.9

0.00

0.5

0.2

373

Bermingham

BMUG23-040

134/-4

236.9

238.2

1.2

1.4

0.00

1.3

0.0

358

Bermingham

BMUG23-040

134/-4

246.1

248.3

2.0

8.6

0.00

0.1

1.0

357

Bermingham

BMUG23-040

134/-4

295.3

295.7

0.4

30.0

0.00

4.6

0.3

352

Bermingham

BMUG23-040

134 / -4

406.1

414.8

4.2

1.6

0.00

0.5

1.0

326

Bermingham

BMUG23-041

131 / 7

215.1

226.6

11.2

3.5

0.00

0.4

0.4

342

Bermingham

BMUG23-041

131 / 7

245.2

246.1

0.8

23.6

0.00

1.9

0.2

339

Bermingham

BMUG23-041

131 / 7

354.3

354.7

0.2

5.4

0.00

0.7

2.0

319

Bermingham

BMUG23-042

131 / 1

226.4

233.4

6.6

1.2

0.00

0.5

0.2

373

Bermingham

BMUG23-042

131 / 1

423.6

425.0

0.7

2.9

0.00

0.8

3.5

363

Bermingham

BMUG23-043

128/4

220.7

221.8

1.1

4.6

0.00

1.6

0.2

359

Bermingham

BMUG23-043

128/4

236.2

239.3

2.9

1.5

0.00

0.1

0.5

358

Bermingham

BMUG23-043

128/4

319.9

320.8

0.8

18.2

0.00

16.3

0.1

350

Bermingham

BMUG23-043

128/4

403.0

406.0

1.7

0.1

0.00

0.1

0.0

340

Bermingham

BMUG23-044

120/7

219.1

226.6

7.1

1.8

0.00

0.1

0.1

349

Bermingham

BMUG23-044

120/7

232.7

235.7

2.8

120.9

0.01

1.5

3.3

346

Bermingham

BMUG23-045

116/1

246.1

255.9

8.9

6.3

0.00

0.6

0.2

379

Bermingham

BMUG23-046

105/12

243.6

244.1

0.4

86.2

0.01

4.4

4.4

322

Bermingham

BMUG23-046

105/12

357.9

359.4

1.0

1.6

0.00

0.6

0.5

295

Bermingham

BMUG23-047

97/13

169.7

173.3

2.2

2.1

0.00

0.1

0.4

337

Bermingham

BMUG23-047

97/13

291.3

300.6

5.7

18.4

0.00

0.9

1.1

312

Bermingham

BMUG23-047

97/13

310.5

311.2

0.5

2.0

0.00

0.7

0.5

307

Bermingham

BMUG23-047

97/13

367.2

370.5

1.7

1.9

0.00

0.8

1.2

292

Bermingham

BMUG23-048

134/-18

268.2

278.3

7.5

4.2

0.00

0.3

2.1

463

Bermingham

BMUG23-049

128/-7

228.4

232.9

4.1

41.7

0.00

1.9

2.9

402

Bermingham

BMUG23-050

119/-6

224.4

233.6

8.3

21.3

0.00

1.7

2.5

400

Bermingham

BMUG23-050

119/-6

225.1

226.4

1.2

87.9

0.01

7.9

8.7

400

Bermingham

BMUG23-050

119/-6

276.0

278.1

1.5

18.2

0.00

0.7

1.1

403

Bermingham

BMUG23-050

119/-6

290.4

295.1

3.5

13.3

0.00

3.2

3.6

404

Bermingham

BMUG23-051

119/-9

228.0

243.8

14.1

9.7

0.00

0.7

0.8

419

Bermingham

BMUG23-051

119/-9

228.0

233.4

4.8

22.1

0.00

1.6

1.4

419

Bermingham

BMUG23-051

119/-9

343.7

345.0

1.2

48.5

0.00

2.1

3.5

433

Bermingham

BMUG23-051

119/-9

458.2

470.6

11.2

2.8

0.00

0.8

0.5

447

Bermingham

BMUG23-051

119/-9

482.1

490.0

7.1

1.0

0.00

0.2

0.4

450

Bermingham

BMUG23-052

120/-19

244.5

255.0

7.8

47.5

0.00

0.8

0.2

457

Bermingham

BMUG23-052

120/-19

244.5

245.0

0.4

40.3

0.00

2.1

0.1

457

Bermingham

BMUG23-052

120/-19

254.1

255.0

0.7

531.9

0.02

8.0

0.2

461

Bermingham

BMUG23-052

120/-19

266.2

267.7

1.1

6.3

0.00

3.6

0.0

465

Bermingham

BMUG23-052

120/-19

276.6

283.9

5.5

22.6

0.00

0.5

1.8

470

Bermingham

BMUG23-052

120/-19

536.0

565.0

21.8

2.5

0.01

0.4

0.2

555

Bermingham

BMUG23-052

120/-19

538.5

544.9

4.8

5.0

0.02

0.9

0.1

555

Bermingham

BMUG23-052

120/-19

573.4

590.6

11.1

44.9

0.01

1.7

0.8

569

Bermingham

BMUG23-052

120/-19

576.9

586.5

6.1

79.4

0.02

3.0

1.3

569

Bermingham Main Vein

K-23-0838

270/-55

1071.0

1080.9

9.2

0.5

0.00

0.1

0.3

780

Bermingham Townsite Vein

K-23-0839

281/-66

1299.9

1312.1

9.2

25.5

0.00

0.9

0.3

1139

Bermingham Townsite Vein

Including

1309.8

1312.1

1.7

108.2

0.01

4.5

1.0

1142

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20230808153211/en/

Anvita M. Patil Vice President - Investor Relations and Treasurer Cheryl Turner Communications Coordinator 800-HECLA91 (800-432-5291) Investor Relations Email: hmc-info@hecla.com Website: http://www.hecla.com