$200 million revolving line of credit is
undrawn at quarter end
Hecla Mining Company (NYSE:HL) today announced certain
preliminary results¹ for the third quarter of 2018.
HIGHLIGHTS
- Silver production of 2.5 million
ounces, and gold production of 72,995 ounces.
- Silver equivalent production of 10.9
million ounces or gold equivalent production of 135,096
ounces.2
- Lead production of 4,239 tons; zinc
production of 12,795 tons.
- Cash, cash equivalents and short-term
investments of approximately $61 million at September 30, 2018 and
the revolving line of credit was undrawn. The cash balance includes
proceeds from closing out the base metals hedgebook for $32.8
million and receiving $9.5 million of cash from the release of
collateral posted by Klondex for reclamation bonds.
“Our gold and silver production met our expectations, with gold
production increasing due to the addition of two months of
production from the Nevada operations and silver production
declining due to lower expected grades at Greens Creek,” said
Phillips S. Baker, Jr., President and CEO. “We are on track to meet
annual production estimates at all operations. At our new Nevada
assets, we are focusing on completing enough underground
development at Fire Creek so by about mid-2019 we should have
consistent production with an expected 50% higher throughput. We
have begun the access drift to the Hatter Graben, which could
provide the next leg of growth in Nevada. With Hecla’s strong
operations and balance sheet management, we don’t anticipate any
significant utilization of the line of credit, which is currently
undrawn.”
(1) See cautionary statement regarding preliminary
statements at the end of this release. (2) Silver and gold
equivalent calculation based on average actual prices for each
metal in the third quarter as follows: $14.99 for Ag, $1,213 for
Au, $0.95 for Pb, and $1.15 for Zn.
Greens Creek
At the Greens Creek mine, 1.9 million ounces of silver and
11,559 ounces of gold were produced in the quarter. The lower
silver and gold production, when compared to the third quarter of
2017, was due to lower ore grades and milled tonnage as a result of
mine sequencing. The mill operated at an average of 2,316 tons
per day (tpd).
Casa Berardi
At the Casa Berardi mine, 43,981 ounces of gold were produced in
the quarter, including 2,767 ounces from the East Mine Crown
Pillar pit. The mine produced as expected, with gold production
similar to the third quarter of 2017. The mill operated at an
average of 3,846 tpd.
San Sebastian
At the San Sebastian mine, 0.5 million ounces of silver and
3,666 ounces of gold were produced in the third quarter. Although
silver and gold production were lower compared to the third quarter
of 2017, both still met our expectations for the quarter. The mill
operated at an average of 432 tpd.
Nevada Operations
At our newly-acquired Nevada operations, 13,789 ounces of gold
and 84,145 ounces of silver were produced since the acquisition on
July 20. During that period, ore was processed at the Nevada
operations at an average of 776 tpd.
Lucky Friday
At the Lucky Friday mine, 31,639 ounces of silver were produced
in the quarter compared to 88,298 ounces in the third quarter of
2017, as limited production performed by salaried staff continued
during the ongoing strike.
PRODUCTION SUMMARY
Third Quarter Ended Nine Months
Ended
September 30,2018
September 30,2017
September 30,2018
September 30,2017
PRODUCTION
Increase/
(Decrease)
Increase/
(Decrease)
Silver (oz) 2,523,690 3,323,157
(24
%) 7,654,208 9,500,058
(19 %)
Gold (oz) 72,995 63,046
16 %
191,115 171,720
11 % Lead (tons)
4,239 5,370
(21 %) 15,388 18,426
(16 %) Zinc (tons) 12,795 14,497
(12 %) 42,305 43,000
(2 %)
Greens Creek – Silver (oz) 1,876,416 2,344,315
(20 %) 5,789,440 6,205,659
(7 %)
Greens Creek – Gold (oz) 11,559 12,563
(8
%) 38,396 39,290
(2 %) Lucky Friday
– Silver (oz) 31,639 88,298
(64 %)
156,105 769,080
(80 %) San Sebastian –
Silver (oz) 521,931 880,885
(41 %)
1,593,770 2,498,638
(36 %) San Sebastian –
Gold (oz) 3,666 6,342
(42 %) 12,051
19,222
(37 %) Casa Berardi – Gold (oz)
43,981 44,141
0 % 126,879 113,209
12 % Nevada Operations – Silver (oz)
84,145 N/A
N/A 84,145 N/A
N/A Nevada
Operations – Gold (oz) 13,789 N/A
N/A
13,789 N/A
N/A
Hecla expects to report third quarter 2018 financial results on
November 8, 2018.
ABOUT HECLA
Founded in 1891, Hecla Mining Company (NYSE:HL) is a leading
low-cost U.S. silver producer with operating mines in Alaska, Idaho
and Mexico, and is a growing gold producer with operating mines in
Quebec, Canada and Nevada. The Company also has exploration and
pre-development properties in eight world-class silver and gold
mining districts in the U.S., Canada, and Mexico.
Cautionary Statements Regarding Preliminary Results
All measures of the Company's third quarter 2018 operating and
financial results contained in this news release, including cash,
cash equivalents and short-term investments, are preliminary and
reflect the Company’s expected results as of the date of this news
release. Actual reported third quarter 2018 results are subject to
management's final review as well as review by the Company's
independent registered public accounting firm and may vary
significantly from those expectations because of a number of
factors, including, without limitation, additional or revised
information and changes in accounting standards or policies or in
how those standards are applied.
Cautionary Statements Regarding Forward Looking
Statements
Statements made or information provided in this news release
that are not historical facts are "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act
of 1995 and "forward-looking information" within the meaning of
Canadian securities laws. Words such as “may”, “will”, “should”,
“expects”, “intends”, “projects”, “believes”, “estimates”,
“targets”, “anticipates” and similar expressions are used to
identify these forward-looking statements. Such forward-looking
statements or forward-looking information include statements or
information regarding estimates of silver production for the third
quarter of 2018 on a consolidated basis and at each of the Greens
Creek, Lucky Friday and San Sebastian mines, third quarter 2018
gold production at Casa Berardi and Nevada operations, and
quarter-end cash position. The material factors or assumptions used
to develop such forward-looking statements or forward-looking
information include that the Company’s plans for development and
production will proceed as expected and will not require revision
as a result of risks or uncertainties, whether known, unknown or
unanticipated, to which the Company’s operations are subject.
Forward-looking statements involve a number of risks and
uncertainties that could cause actual results to differ materially
from those projected, anticipated, expected or implied. These risks
and uncertainties include, but are not limited to, metals price
volatility, volatility of metals production and costs, litigation,
regulatory and environmental risks, operating risks, project
development risks, political risks, labor issues, ability to raise
financing and exploration risks and results. Refer to the Company's
Form 10K and 10-Q reports for a more detailed discussion of
factors that may impact expected future results. The Company
undertakes no obligation and has no intention of updating
forward-looking statements other than as may be required by
law.
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version on businesswire.com: https://www.businesswire.com/news/home/20181023005260/en/
Hecla Mining CompanyMike Westerlund, 800-HECLA91
(800-432-5291)Vice President – Investor
Relationshmc-info@hecla-mining.comwww.hecla-mining.com
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