Hecla Mining Company (NYSE:HL) today announced preliminary
production results for the third quarter of 2021.¹
HIGHLIGHTS
- Silver production of 2.7 million ounces, decreased due to lower
grades at Greens Creek based on mine sequencing, partially offset
by Lucky Friday production.
- Gold production of 42,206 ounces, in line with the same period
in the prior year.
- Zinc production decreased due to Greens Creek’s lower grades
and lead production increased slightly with Lucky Friday being in
full production.
- Silver equivalent production of 8.4 million ounces or gold
equivalent production of 113,998 ounces.2
- Quarter-end cash position exceeds $190 million.
“Lucky Friday and Casa Berardi both delivered strong operational
quarters, with Casa Berardi increasing gold production by 13% and
Lucky Friday increasing silver production by 31% over last year,”
said Phillips S. Baker, Jr., President and CEO. “Greens Creek had a
good quarter but was down compared to an exceptional 2020 third
quarter. The mine experienced lower grades due to the mine
sequence, which was driven by manpower challenges that are being
addressed through schedule changes and other means.”
Mr. Baker continued, “Hecla is the United States’ largest silver
miner producing 40% of all the silver mined in the U.S. With this
quarter’s performance, we are not only the largest but also
demonstrate the strength of our operations in this lower silver
price environment with approximately $10 million added to our cash
balance, despite the semi-annual interest payment made this quarter
and some one-time cash transactions. Since the beginning of 2019,
we’ve added over $160 million of cash to our balance sheet while
returning approximately $30 million to common shareholders in the
form of dividend payments, in addition to increasing our investment
in operations and exploration.”
Greens Creek
At the Greens Creek Mine, 1.8 million ounces of silver and 9,735
ounces of gold were produced. The decrease in silver production
compared to the third quarter of 2020, the 5th highest quarterly
production in the mine’s history, was primarily due to mining lower
grades in more easily accessible areas. The higher-grade material
which is deeper will be mined in the future. The mill operated at
an average of 2,295 tons per day (tpd).
- See cautionary statement regarding estimated results and
forward-looking statements at the end of this release
- Silver and gold equivalent calculation based on average actual
prices for each metal in the third quarter as follows: $24.36 for
Ag, $1,789 for Au, $1.06 for Pb, and $1.36 for Zn.
Casa Berardi
At the Casa Berardi Mine, 29,722 ounces of gold were produced.
The increase in gold ounces compared to the third quarter of 2020
was due to higher mill throughput and recovery as the mill
optimization investments deliver results, partially offset by lower
grades. The mill operated at an average of 4,328 tpd.
Lucky Friday
At the Lucky Friday Mine, 831,533 ounces of silver were produced
in the quarter, an increase of 31% compared to the third quarter of
2020 when the mine was still not at full production. The mill
operated at an average of 850 tpd.
Nevada Operations
At the Nevada operations, 2,750 ounces of gold were produced
from approximately 12,000 tons of previously stockpiled refractory
material processed at a third-party autoclave facility. Production
from approximately 2,200 tons of previously stockpiled material
processed at the third-party facility remains at quarter end.
Hollister’s exploration drift to drill the Hatter Graben and
surface drilling at Midas are ongoing.
PRODUCTION SUMMARY
Third Quarter Ended
Nine Months Ended
Sept 30, 2021
Sept 30, 2020
Sept 30, 2021
Sept 30, 2020
PRODUCTION
Increase/
(Decrease)
Increase/
(Decrease)
Silver (oz)
2,676,086
3,541,371
(24)%
9,660,313
10,190,621
(5)%
Gold (oz)
42,206
41,174
3%
153,349
159,948
(4)%
Lead (tons)
9,904
9,750
2%
32,148
24,620
31%
Zinc (tons)
15,545
17,997
(14)%
48,863
48,699
- -
Greens Creek – Silver (oz)
1,837,271
2,634,436
(30)%
6,980,588
8,164,062
(14)%
Greens Creek – Gold (oz)
9,735
12,838
(24)%
35,860
38,215
(6)%
Lucky Friday – Silver (oz)
831,533
636,389
31%
2,608,726
1,201,674
117%
San Sebastian – Silver (oz)
-0-
266,691
N/A
-0-
772,158
N/A
San Sebastian – Gold (oz)
-0-
1,931
N/A
-0-
6,064
N/A
Casa Berardi – Gold (oz)
29,722
26,405
13%
97,244
83,913
16%
Nevada Operations – Silver (oz)
1
270
-0-
N/A
45,395
37,443
21%
Nevada Operations – Gold (oz) 1
2,750
-0-
N/A
20,245
31,756
(36)%
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 owns a
number of exploration and pre-development projects in world-class
silver and gold mining districts throughout North America.
Cautionary Statements Regarding Estimated Result and
Forward-Looking Statements
All measures of the Company's third 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 third 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,
that we will be able to address lower grades and mine sequencing
issues at Greens Creek through schedule changes and other means, we
will mine higher-grade material which is deeper at Greens Creek in
the future and approximately 2,200 tons of refractory material from
Nevada remains to be processed at a third-party facility. 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/20211012005332/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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