Hecla Announces Q1 2021 Production
April 08 2021 - 6:30AM
Business Wire
Hecla Mining Company (NYSE:HL) today announced its preliminary
silver and gold production for the first quarter of 2021.1
HIGHLIGHTS
- Silver production of 3.5 million ounces, an increase of 7%, due
to growing Lucky Friday production.
- Gold production of 52,004, a decrease of 12%, because of
reducing less profitable production.
- Zinc and lead production increased 25% and 82%, respectively,
due to Lucky Friday production.
- Silver equivalent production of 9.3 million ounces or gold
equivalent production of 135,946 ounces.2
- Quarter-end cash position exceeds $135 million.
“Greens Creek, Lucky Friday and Casa Berardi all had strong
operating performance which combined with current silver prices
enabled us to close the quarter with more than $135 million in
cash,” said Hecla’s President and CEO, Phillips S. Baker, Jr. “This
is our fourth consecutive quarter of increasing cash balances, all
attributable to free cash flow generation.”
OPERATIONS
Greens Creek
In the first quarter, 2.6 million ounces of silver and 13,266
ounces of gold were produced compared to 2.8 million ounces of
silver and 12,273 ounces of gold in the prior year period. The
decrease in silver production compared to the first quarter of 2020
was primarily due to lower grade, with the increase in gold
production resulting from higher grade, as planned. The mill
operated at an average of 2,156 tons per day (tpd).
Casa Berardi
At the Casa Berardi Mine, 36,190 ounces of gold were produced
compared to 26,752 ounces in the prior year period. This represents
an increase of 9,438 ounces over the first quarter of 2020 due to
higher tonnage, grades and recoveries. The mill operated at an
average of 4,093 tpd.
Lucky Friday
At the Lucky Friday Mine, 0.9 million ounces of silver were
produced in the first quarter. Lucky Friday achieved full
production in the fourth quarter of 2020 with estimated annual
production in excess of 3 million ounces of silver in 2021. The
mill operated at an average of 901 tpd.
Nevada Operations
At the Nevada operations, 2,548 ounces of gold were produced
from 16,459 tons of a stockpiled bulk sample of refractory material
processed at a third-party facility. Fire Creek is expected to be
placed on care and maintenance in the second quarter of 2021.
- See cautionary statement regarding preliminary statements at
the end of this release.
- Silver and gold equivalent calculation based on average actual
prices for each metal in the first quarter as follows: $26.29 for
Ag, $1,798 for Au, $0.92 for Pb, and $1.25 for Zn.
PRODUCTION SUMMARY
First Quarter Ended
March 31, 2021
March 31, 2020
% increase (decrease)
PRODUCTION
Silver (oz)
3,459,446
3,245,469
7%
Gold (oz)
52,004
58,792
(12)%
Lead (tons)
10,703
5,893
82%
Zinc (tons)
16,107
12,847
25%
Greens Creek – Silver (oz)
2,584,870
2,775,707
(7)%
Greens Creek – Gold (oz)
13,266
12,273
8%
Lucky Friday – Silver (oz)
863,901
95,748
802%
Casa Berardi – Gold (oz)
36,190
26,752
35%
Nevada Operations – Silver (oz)
1
- -
21,455
N/A
Nevada Operations – Gold (oz) 1
2,548
16,965
(85)%
- At the Nevada operations, stockpiled ore milled in the first
quarter of 2021.
STRENGTHENING THE BALANCE SHEET
Cash and cash equivalents are expected to exceed $135 million on
March 31, 2021, with the revolving line of credit undrawn.
ABOUT HECLA
Founded in 1891, Hecla Mining Company (NYSE:HL) is the largest
silver producer in the United States with operating mines in Alaska
and Idaho and is a growing gold producer with an operating mine in
Quebec. 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 Estimates and Forward-Looking
Statements
All measures of the Company's first quarter 2021 operating and
financial results and conditions contained in this release are
preliminary and reflect the Company’s expected results as of the
date of this release. Actual reported first quarter 2021 results
are subject to management's final review as well as review by the
Company's independent registered accounting firm and may vary
significantly from current 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.
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. Forward-looking
statements in this news release may include, without limitations,
(i) 2021 results could be similar to 2020 results at current
prices; (ii) Lucky Friday anticipated production in 2021 in excess
of 3 million ounces; (iii) continued exploration in Mexico; and
(iv) at the Nevada Operations (1) stockpiled ore is anticipated to
be processed in 2021, (2) gold production is anticipated to be
realized in early or the first half of 2021, and (3) mining of
refractory ore for the bulk sample is expected to continue in 2021
and is expected to yield production in the range of 5,000 ounces of
gold. 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 10-K 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.
Category: Press Release
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version on businesswire.com: https://www.businesswire.com/news/home/20210408005232/en/
Russell Lawlar Sr. Vice President – CFO and Treasurer
Jeanne DuPont Senior Communications Coordinator
800-HECLA91 (800-432-5291) Investor Relations Email:
hmc-info@hecla-mining.com Website: www.hecla-mining.com
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