Cash balance
increased by $80 million during 2021
Hecla Mining Company (NYSE:HL) today announced its preliminary
silver and gold production for the fourth quarter and full year
2021 and year-end cash position.1
HIGHLIGHTS
Annual
- Silver and gold production of 12.9 million ounces and 201,326
ounces, respectively.
- Zinc and lead production increased 1% and 26%,
respectively.
- Silver equivalent production of 37.6 million ounces and gold
equivalent production of 525,531 ounces.2
- Lucky Friday silver production increased 75%.
- Casa Berardi increased gold production 11%.
- Year-end cash position of approximately $210 million with the
credit facility undrawn.
Quarterly (compared to 3rd Quarter
2021)
- 21% and 14% increase in silver and gold production,
respectively.
- Greens Creek increased silver production 23%.
- Lucky Friday silver production increased 15%.
- Casa Berardi increased gold production 25%.
“All three mines reported strong production with significant
production growth at Lucky Friday and Casa Berardi,” said Hecla’s
President and CEO Phillips S. Baker, Jr. “Lucky Friday increased
production by 75% over the prior year primarily because in 2021 the
mine was in full production for the entire year. In the fourth
quarter, the expected higher silver grades and benefits of the new
mining method delivered a 15% increase over the third quarter. The
2020 and 2021 investments helped Casa Berardi produce 11% more gold
ounces than in 2020 and 25% more than in the third quarter. At
Greens Creek, silver grades improved after resolving the third
quarter mine sequencing issues, as a result fourth quarter
production was 2.3 million ounces of silver and over 9 million
ounces for the year.”
Baker continued, “Even with doubling our exploration
expenditures from 2020 and further enhancing our silver-linked
dividend, our strong operational performance in 2021 delivered an
increase of $80 million to our cash balance. With a strong
operational and financial year behind us, we expect to continue to
build on these achievements in 2022.”
Greens Creek
At the Greens Creek Mine in 2021, 9.2 million ounces of silver
and 46,089 ounces of gold were produced. For the fourth quarter,
2.3 million ounces of silver and 10,229 ounces of gold were
produced. Silver and gold production were lower for the year by 12%
and 5%, respectively, primarily due to lower grades and mine
sequencing, partially offset by higher mill throughput. However,
silver and gold production increased in the fourth quarter compared
to the third quarter of 2021 by 23% and 5%, respectively, with the
increase in silver due mainly to higher grades. The mill operated
at an average of 2,307 tons per day (tpd) in 2021.
Casa Berardi
At the Casa Berardi Mine, 134,510 and 37,266 ounces of gold were
produced in 2021 and the fourth quarter, respectively, increases of
11% and 25% over 2020 and the third quarter of 2021, respectively.
The mill operated at an average of 4,187 tpd in 2021, which was a
record, with ore production commencing from the new 160 pit in the
fourth quarter of 2021.
Lucky Friday
At the Lucky Friday Mine, 3.6 million and almost 1.0 million
ounces of silver were produced in 2021 and the fourth quarter,
respectively. Silver production increased compared to 2020 and the
third quarter of 2021 by 75% and 15%, respectively. The increase
for the year reflected a full year of production, following the
return to full production in the fourth quarter of 2020. The
increase for the fourth quarter compared to the third quarter is
due to higher grades and increase in milled tonnage. The mill
operated at an average of 882 tpd, and approximately 86% of mine
production for the year came from the newly developed Underhand
Closed Bench mining method.
Nevada Operations
At the Nevada operations in 2021, production totaled 20,727 gold
ounces and 46,319 silver ounces from remaining stockpiled
non-refractory material, a bulk sample of refractory material
processed at a third-party roaster, and additional refractory
material processed at a third-party autoclave. The mine and mill
facilities have been placed on care-and-maintenance while
exploration at multiple targets and development of a decline to the
Hatter Graben area at the Hollister mine continues. Underground
exploration drilling from platforms available at Hollister
commenced in the fourth quarter of 2021.
PRODUCTION SUMMARY
Fourth Quarter December
31,
Third Quarter September
30,
Twelve Months December
31,
2021
2021
2021
2020
Production
Increase/(Decrease)
Increase/(Decrease)
Silver (oz)
3,226,927
2,676,084
21%
12,887,239
13,542,957
(5)%
Gold (oz)
47,977
42,207
14%
201,326
208,962
(4)%
Lead (tons)
10,863
9,904
10%
43,011
34,127
26%
Zinc (tons)
14,754
15,546
(5)%
63,617
63,112
1%
Greens Creek – Silver (oz)
2,262,635
1,837,270
23%
9,243,222
10,494,726
(12)%
Greens Creek – Gold (oz)
10,229
9,735
5%
46,089
48,491
(5)%
Lucky Friday – Silver (oz)
955,401
831,532
15%
3,564,127
2,031,874
75%
San Sebastian – Silver (oz)
--
--
N/A
--
954,772
N/A
San Sebastian – Gold (oz)
--
--
N/A
--
7,223
N/A
Casa Berardi – Gold (oz)
37,266
29,722
25%
134,510
121,492
11%
Nevada Operations – Silver (oz)
924
270
242%
46,319
37,443
24%
Nevada Operations – Gold (oz)
482
2,751
(82)%
20,727
31,756
(35)%
(1)
See cautionary statement regarding
preliminary statements at the end of this release.
(2)
Silver and gold equivalent calculation
based on the respective average annual LME metal prices as follows:
$25.17 for Ag, $1,799.58 for Au, $1.00 for Pb, and $1.36 for
Zn.
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 Estimates and Forward-Looking
Statements
All measures of the Company's full year and fourth 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 full year and
fourth 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,
2022 results could be similar to or better than 2021 results. 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/20220113005348/en/
For further information, please contact:
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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