10% increase in silver production over 2021;
Keno Hill expected to produce more than 2.5 million ounces in
2023
Hecla Mining Company (NYSE:HL) today announced its preliminary
silver and gold production for the fourth quarter and full year
2022 and certain estimates for the Keno Hill mine for 2023.1
HIGHLIGHTS Annual
- Silver production of 14.2 million ounces, Hecla’s second
highest, was an increase of 10% over last year driven by a 24%
increase at Lucky Friday and a 5% increase at Greens Creek
- As expected, gold production decreased 13% to 175,807 ounces as
Nevada production ended
- 12% increase in lead production; zinc production unchanged from
2021
- Keno Hill development on schedule with production planned to
start in the third quarter of 2023, ramping-up to an expected 440
tons per day (tpd) by year end
Quarter (compared to 3rd Quarter
2022)
- 3% increase in silver and 2% decrease in gold production
- Lucky Friday silver production increased 14%
- Casa Berardi gold production decreased 8%
- Lead production increased 7%; zinc production unchanged
“Hecla is the fastest growing silver producer with a 40%
increase in production since 2018. This sustainable growth is due
to the continued strong performance of Greens Creek and
dramatically higher production from Lucky Friday,” said Phillips S.
Baker, Jr., President and CEO. “Greens Creek had record throughput
in the fourth quarter and Lucky Friday’s production was driven by
higher grades and the innovative Underhand Closed Bench mining
method.”
Baker continued, “In 2023, with Keno Hill expected to produce
more than 2.5 million ounces of silver, Hecla could achieve as much
as 17 million ounces of silver production, which reaches our
production goal a year earlier than planned and would make Hecla
the largest silver producer not only in the United States but also
in Canada. With silver’s growing use in the solar industry and the
focus on clean and green energy, this is an exciting time to be the
leading silver producer in the world’s best jurisdictions.”
OPERATIONS
Greens Creek
The Greens Creek mine produced 9.7 million ounces of silver and
48,217 ounces of gold in 2022. Fourth quarter production was 2.4
million ounces of silver and 12,990 ounces of gold. The mill
achieved a new throughput record of 2,502 tpd in the fourth
quarter. Annual silver and gold production increased by
approximately 5% over 2021 due to increased mill throughput. Fourth
quarter silver production was in line with the third quarter of
2022 while gold production increased by 14% due to higher milled
grades. For the year, the mill operated at an average of 2,415 tpd
in 2022.
Lucky Friday
At the Lucky Friday Mine, 4.4 million and 1.2 million ounces of
silver were produced in 2022 and the fourth quarter, respectively.
Silver production increase of 24% year over year was attributable
to an 11% increase in mill throughput and 12% higher grades. Silver
production increased 14% in the fourth quarter compared to the
third quarter of 2022 due to higher grades. The mine achieved
multiple milestones in 2022 with record mined tons, and record mill
throughput of 978 tpd in the mine’s 80-year history.
Casa Berardi
The Casa Berardi mine produced 127,590 and 30,709 ounces of gold
in 2022 and the fourth quarter, respectively. Gold production
declined by 5% over the prior year due to lower grades as ore
sourced from the pits accounted for a higher percentage of the mill
feed, partially offset by higher throughput and recoveries. Fourth
quarter gold production was 8% lower compared to the third quarter
of 2022 due to lower milled grades. The mill operated at an average
of 4,353 tpd in 2022, an increase of 4% over the prior year, and
achieved yet another throughput record of 4,468 tpd in the fourth
quarter of 2022.
Keno Hill
At the Keno Hill mine, development remains on schedule and the
mine is expected to commence production in the third quarter of
2023 with a phased ramp up projected to reach 440 tpd by the end of
the year. Ramp-up and development costs from January 2023 until
full production is achieved are forecast at $35 - $40 million. 2023
silver production is forecast to be more than 2.5 million ounces
and is expected to come from the Bermingham and Flame & Moth
deposits.
PRODUCTION SUMMARY
Fourth Quarter December
31,
Third Quarter September
30,
Twelve Months Ended December
31,
2022
2022
2022
2021(3)
Production
Increase/
(Decrease)
Increase/
(Decrease)
Silver (oz)
3,663,434
3,549,392
3%
14,182,987
12,887,239
10%
Gold (oz)
43,699
44,747
(2)%
175,807
201,326
(13)%
Lead (tons)
12,456
11,601
7%
48,250
43,011
12%
Zinc (tons)
15,892
15,859
-
63,463
63,617
-
Greens Creek – Silver (oz)
2,433,275
2,468,279
(1)%
9,741,935
9,243,222
5%
Greens Creek – Gold (oz)
12,990
11,412
14%
48,217
46,089
5%
Lucky Friday – Silver (oz)
1,224,199
1,074,230
14%
4,412,763
3,564,127
24%
Casa Berardi – Gold (oz)
30,709
33,335
(8)%
127,590
134,510
(5)%
(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 metal prices as follows:
$21.75 for Ag, $1,800.80 for Au, $0.98 for Pb, and $1.58 for
Zn.
(3)
2021 gold production doesn’t foot because
Nevada operations are not listed in the table; Nevada operations
were placed on care & maintenance in 2022.
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.
Cautionary Statements Regarding Estimates and Forward-Looking
Statements
All measures of the Company's fourth quarter and full year 2022
operating results contained in this release are preliminary and
reflect the Company’s expected results as of the date of this
release. Actual reported fourth quarter and full year 2022 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 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, and
"forward-looking information" within the meaning of Canadian
securities laws. When a forward-looking statement expresses or
implies an expectation or belief as to future events or results,
such expectation or belief is expressed in good faith and believed
to have a reasonable basis. However, such statements are subject to
risks, uncertainties and other factors, which could cause actual
results to differ materially from future results expressed,
projected or implied by the forward-looking statements.
Forward-looking statements often address our expected future
business and financial performance and financial condition and
often contain words such as “anticipate,” “intend,” “plan,” “will,”
“could,” “would,” “estimate,” “should,” “expect,” “believe,”
“project,” “target,” “indicative,” “preliminary,” “potential” and
similar expressions. Forward-looking statements in this news
release may include, without limitation: (i) Keno Hill will achieve
complete ramp-up in 2023 and production will exceed 2.5 million
ounces and (ii) the Company has the potential to be the largest
silver producer in the U.S. and Canada. 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; (iii) political/regulatory
developments in any jurisdiction in which the Company operates
being consistent with its current expectations; (iv) certain price
assumptions for gold, silver, lead and zinc; (v) prices for key
supplies being approximately consistent with current levels; (vi)
the accuracy of our current mineral reserve and mineral resource
estimates; (vii) 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;
(viii) sufficient workforce is available and trained to perform
assigned tasks; (ix) weather patterns and rain/snowfall within
normal seasonal ranges so as not to impact operations; (x)
relations with interested parties, including Native Americans,
remain productive; and (xi) factors do not arise that reduce
available cash balances.
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; and (vi)
litigation, political, regulatory, labor and environmental risks.
For a more detailed discussion of such risks and other factors, see
the Company's 2021 Form 10-K filed on February 22, 2022, and Form
10-Q filed on August 5, 2022 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/20230111006000/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-mining.com Website: www.hecla-mining.com
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