Record revenues, Second highest silver
reserves, Second highest silver production, Deleveraging
continues
Hecla Mining Company (NYSE:HL) ("Hecla", "we", "our" or the
"Company") today announced fourth quarter and full year 2024
financial and operating results.
2024 HIGHLIGHTS _____________________________________________________________________________________________________________
Financial Achievements:
- Generated record sales of $929.9 million.
- Reported net income applicable to common stockholders of $35.3
million, or $0.06 per share.
- Generated record Adjusted EBITDA of $337.9 million, continued
deleveraging and reduced net debt, improved net leverage ratio* to
1.6x from 2.7x a year ago.1
- Cash flow from operating activities was $218.3 million, an
increase of $142.8 million over 2023 with strong free cash flow
generation at Greens Creek and Lucky Friday.
- Greens Creek generated $186.5 million in cash flow from
operations and $146.7 million in free cash flow.2
- Lucky Friday generated $131.4 million in cash flow from
operations and $81.8 million in free cash flow (including $50
million in insurance receipts).2
Operational Excellence:
- Reported silver reserves of 240 million ounces, second highest
in the Company's 134-year history.
- Produced 16.2 million ounces of silver, second highest in the
Company's history.
- Produced 142 thousand ounces of gold, exceeding consolidated
guidance.
- Achieved consolidated silver production and cost guidance.
- Set multiple records at Lucky Friday -
- Highest tons of ore mined and milled in the mine's 80-year
history.
- Highest zinc production of 13,513 tons.
- Production of 4.9 million ounces of silver, highest since
2000.
- Keno Hill produced 2.8 million ounces of silver while
increasing silver reserves by 17% to 64.3 million ounces.
- All-Injury Frequency Rate outperformed national average of
mining companies by 6%.
*Net leverage ratio is calculated as current debt, long-term
debt and finance leases less cash divided by trailing twelve-month
adjusted EBITDA.
STRATEGIC PRIORITIES FOR 2025
- Continue to strengthen the balance sheet with a focus on
highest risk-adjusted return projects and free cash flow
generation.
- Advance Keno Hill's permitting and investment in critical
infrastructure to chart the path for sustained profitability.
- Optimize operating portfolio through strategic review of Casa
Berardi.
- Evaluate extensive exploration portfolio for opportunities to
generate shareholder value.
- Drive operational excellence through implementation of
standardized enterprise systems and advanced analytics to optimize
mine planning and cost management, driving sustained profitability
and efficient capital allocation.
"In balancing our proud heritage with our refocused
forward-looking vision, we are implementing a strategic shift that
emphasizes sustainable profitable growth and operational excellence
while continuing to focus on industry leading safety standards,"
said Rob Krcmarov, President and CEO. "Our renewed focus on
optimizing cash flow generation and return on capital investment
will drive shareholder value, supported by four key pillars:
stakeholder relationship management, capital discipline, technical
innovation, and environmental stewardship. As part of this
commitment to disciplined capital allocation, we have streamlined
our dividend policy to eliminate the silver-linked component,
enabling us to pursue significant growth opportunities,
particularly at Keno Hill."
Krcmarov continued, "As we advance into 2025, our key priorities
include driving operational excellence through standardized systems
and processes, improving our safety performance, evaluating
strategic alternatives for Casa Berardi, and advancing Keno Hill's
permitting and infrastructure to achieve sustained profitability.
We are optimizing our exploration portfolio to maximize returns,
focusing on projects that offer the highest risk-adjusted returns
and potential for strong free cash flow generation while upholding
our commitment to responsible mining practices. With silver markets
facing their fifth consecutive deficit year, driven by record
industrial demand and growing safe-haven investment, Hecla's
position as the largest silver producer in the U.S. and Canada
positions us well to capitalize on these favorable
fundamentals."
FINANCIAL AND OPERATIONAL OVERVIEW _____________________________________________________________________________________________________________
In the following table and throughout this release, "total cost
of sales" is comprised of cost of sales and other direct production
costs and depreciation, depletion and amortization; "prior year"
refers to 2023, and "prior quarter" refers to the third quarter of
2024.
In Thousands unless stated otherwise
4Q-2024
3Q-2024
2Q-2024
1Q-2024
4Q-2023
FY-2024
FY-2023
Financial Highlights
Sales
$
249,655
$
245,085
$
245,657
$
189,528
$
160,690
$
929,925
$
720,227
Total cost of sales
$
181,321
$
185,799
$
194,227
$
170,368
$
153,825
$
731,715
$
607,278
Gross profit
$
68,334
$
59,286
$
51,430
$
19,160
$
6,865
$
198,210
$
112,949
Net income (loss) applicable to common
stockholders
$
11,786
$
1,623
$
27,732
$
(5,891
)
$
(43,073
)
$
35,250
$
(84,769
)
Basic income (loss) per common share (in
dollars)
$
0.02
$
0.00
$
0.04
$
(0.01
)
$
(0.07
)
$
0.06
$
(0.14
)
Adjusted EBITDA1
$
86,558
$
88,859
$
90,895
$
71,597
$
32,907
$
337,909
$
208,799
Total Debt
$
550,713
$
662,815
Net Debt to Adjusted EBITDA1
1.6
2.7
Cash provided by operating activities
$
67,470
$
55,009
$
78,718
$
17,080
$
884
$
218,277
$
75,499
Capital Investment
$
(60,784
)
$
(55,699
)
$
(50,420
)
$
(47,589
)
$
(62,622
)
$
(214,492
)
$
(223,887
)
Free Cash Flow2
$
6,686
$
(690
)
$
28,298
$
(30,509
)
$
(61,738
)
$
3,785
$
(148,388
)
Production Summary
Silver ounces produced
3,874,344
3,645,004
4,458,484
4,192,098
2,935,631
16,169,930
14,342,863
Silver payable ounces sold
3,488,207
3,729,782
3,785,285
3,481,884
2,847,591
14,485,158
12,955,006
Gold ounces produced
35,727
32,280
37,324
36,592
37,168
141,923
151,259
Gold payable ounces sold
33,563
31,414
35,276
32,189
33,230
132,442
141,602
Cash Costs and AISC, each after
by-product credits
Silver cash costs per ounce 3
$
(0.27
)
$
4.46
$
2.08
$
4.78
$
4.94
$
2.72
$
3.23
Silver AISC per ounce 4
$
11.51
$
15.29
$
12.54
$
13.10
$
17.48
$
13.06
$
11.76
Gold cash costs per ounce 3
$
1,936
$
1,754
$
1,701
$
1,669
$
1,702
$
1,762
$
1,652
Gold AISC per ounce 4
$
2,203
$
2,059
$
1,825
$
1,899
$
1,969
$
1,990
$
2,048
Realized Prices
Silver, $/ounce
$
30.19
$
29.43
$
29.77
$
24.77
$
23.47
$
28.58
$
23.33
Gold, $/ounce
$
2,656
$
2,522
$
2,338
$
2,094
$
1,998
$
2,403
$
1,939
Lead, $/pound
$
0.94
$
0.93
$
1.06
$
0.97
$
1.09
$
0.97
$
1.03
Zinc, $/pound
$
1.53
$
1.36
$
1.51
$
1.10
$
1.39
$
1.37
$
1.35
Sales increased to $929.9 million for the year through
higher realized prices (silver, gold, and zinc) and higher sales
volumes (silver, lead, and zinc), which were partially offset by
lower gold sales volumes. Silver, lead, and zinc sales volumes
increased primarily due to the resumption of operations at Lucky
Friday on January 9, 2024, following the suspension of operations
in August 2023 due to a fire in the underground secondary
egress.
Gross profit for the year was $198.2 million, an increase
of 75% over 2023. The increase is attributable to (i) Greens Creek
gross profit increasing by $28.8 million due to higher realized
prices for all metals except lead, which was partially offset by
lower sales volumes of all metals except zinc, (ii) Lucky Friday
gross profit increased by $26.6 million due to higher realized
prices and volumes reflecting an almost full year of operation
versus seven months in 2023, and (iii) at Casa Berardi, the gross
loss decreased by $29.7 million reflecting the benefit of higher
realized gold prices which offset lower gold sales volumes.
Net income applicable to common stockholders was $35.3
million compared to a prior year loss of $84.8 million. The
improvement over the prior year was primarily related to:
- Collection of $50 million of Lucky Friday insurance proceeds
included in other operating income.
- Ramp-up and suspension costs decreased by $32.9 million,
reflecting the impact of Lucky Friday returning to full production
in 2024.
- A foreign exchange gain of $7.6 million versus a loss of $3.8
million, reflecting the impact of the U.S. dollar appreciation
compared to the Canadian dollar.
Partly offset by:
- A non-cash write-down of $14.6 million, $13.9 million of which
was related to the remote vein mine ("RVM"). The RVM was determined
to be unnecessary due to the success of the Underhand Closed Bench
mining method at Lucky Friday and the vendor decided to terminate
the program and exit that line of business.
- An increase in income and mining tax provision of $29.2
million, reflecting higher taxable income realized by our US tax
group while unable to recognize losses in Canada.
Consolidated silver total cost of sales in 2024 was
$487.6 million, an increase of 28% from the prior year, primarily
due to the resumption of production at Lucky Friday in January,
higher labor and maintenance costs at Greens Creek, and additional
costs allocated to cost of sales at Keno Hill due to higher
revenues as a result of increased production.
Cash costs and AISC per silver ounce, each after by-product
credits, were $2.72 and $13.06, respectively, and within
guidance. Cash costs decreased primarily due to lower treatment
charges, higher by-product credits (due to increased production and
realized prices) and higher silver production. AISC was higher due
to higher sustaining capital at Greens Creek and Lucky Friday, and
higher corporate general and administrative expenses.3,4
Gold total cost of sales for Casa Berardi was consistent
with the prior year as production costs remained stable year over
year.
Cash costs and AISC per gold ounce, each after by-product
credits, were $1,762 and $1,990 respectively, an increase over
the prior year as lower production costs and sustaining capital
spend was partially offset by lower gold production.3,4
Adjusted EBITDA for the year was $337.9 million, a 62%
increase over the prior year. The ratio of net debt to adjusted
EBITDA (net leverage ratio) improved to 1.6 times from 2.7 times
due to strong EBITDA generation in 2024 and reduction in net debt.1
Cash and cash equivalents at December 31, 2024 were $26.9 million
and included $23 million drawn on the revolving credit
facility.
Cash provided by operating activities was $218.3 million,
an increase of $142.8 million from the prior year primarily due to
higher net income partially offset by unfavorable working capital
changes, including an increase of accounts receivable (Lucky Friday
resumed production and Keno Hill ramped up operations), increase in
inventories, and timing of accounts payable payments.
Capital investment, net of finance leases, was $214.5
million in 2024, compared to $223.9 million in the prior year. The
decrease was due to (i) lower capital investment at Lucky Friday
due to the prior year requiring additional capital to establish an
alternative secondary escapeway as a result of the fire, (ii)
decreased capital investment at Casa Berardi as the mine
transitions to a surface only operation in mid-2025. These
decreases were partially offset by (i) higher capital investment at
Keno Hill for critical infrastructure projects including the dry
stack tailings facility ("DSTF"), mobile equipment purchases, and
mine development and (ii) other sustaining capital projects at
Greens Creek.
Free cash flow for the year was $3.8 million, compared to
negative $148.4 million in the prior year, with the increase
primarily due to higher cash flow from operations.2
Hedging Update: Forward Sales Contracts for Base Metals and
Foreign Currency
The Company uses financially settled forward sales contracts to
manage exposures to zinc and lead price changes in forecasted
concentrate shipments. On December 31, 2024, the Company had
contracts covering approximately 23% and 34% of the forecasted
payable zinc and lead production for 2025 - 2026 at an average
price of $1.39 and $1.01 per pound, respectively.
The Company also manages Canadian dollar ("CAD") exposure
through forward contracts. At December 31, 2024, the Company had
hedged approximately 47% of forecasted Casa Berardi and Keno Hill
CAD denominated direct production costs through 2026 at an average
CAD/USD rate of 1.34. The Company has also hedged approximately 23%
of Casa Berardi and Keno Hill CAD denominated total capital
expenditures through 2026 at 1.38.
OPERATIONS OVERVIEW _____________________________________________________________________________________________________________
Greens Creek Mine - Alaska
Dollars are in thousands except cost per
ton
4Q-2024
3Q-2024
2Q-2024
1Q-2024
4Q-2023
FY-2024
FY-2023
GREENS CREEK
Operating Highlights
Tons of ore processed
224,521
212,863
225,746
232,188
220,186
895,318
914,796
Total production cost per ton
$
211.64
$
222.39
$
218.09
$
212.92
$
223.98
$
216.15
$
204.20
Ore grade milled - Silver (oz./ton)
10.72
11.22
12.60
13.30
12.89
11.99
13.31
Ore grade milled - Gold (oz./ton)
0.09
0.08
0.09
0.09
0.09
0.09
0.09
Ore grade milled - Lead (%)
2.61
2.44
2.50
2.60
2.75
2.52
2.60
Ore grade milled - Zinc (%)
6.59
6.60
6.20
6.30
6.45
6.41
6.35
Ore grade milled - Copper (%)
0.25
0.31
0.27
0.28
0.27
0.27
0.26
Silver produced (oz.)
1,901,418
1,857,314
2,243,551
2,478,594
2,260,027
8,480,877
9,731,752
Gold produced (oz.)
14,804
11,746
14,137
14,588
14,651
55,275
60,896
Lead produced (tons)
4,808
4,165
4,513
4,834
4,910
18,320
19,578
Zinc produced (tons)
13,241
12,585
12,400
13,062
12,535
51,288
51,496
Copper produced (tons)
427
490
462
495
449
1,874
1,823
Financial Highlights
Sales
$
112,037
$
116,568
$
95,659
$
97,310
$
93,543
$
421,574
$
384,504
Total cost of sales
$
(67,887
)
$
(73,597
)
$
(56,786
)
$
(69,857
)
$
(70,231
)
$
(268,127
)
$
(259,895
)
Gross profit
$
44,150
$
42,971
$
38,873
$
27,453
$
23,312
$
153,447
$
124,609
Cash flow from operations
$
60,442
$
54,076
$
43,276
$
28,706
$
34,576
$
186,500
$
157,325
Exploration
$
1,129
$
4,325
$
2,011
$
551
$
1,324
$
8,016
$
7,815
Capital additions
$
(15,798
)
$
(11,466
)
$
(11,704
)
$
(8,827
)
$
(15,996
)
$
(47,795
)
$
(43,542
)
Free cash flow 2
$
45,773
$
46,935
$
33,583
$
20,430
$
19,904
$
146,721
$
121,598
Cash Costs and AISC, each after
by-product credits
Cash costs per ounce, after by-product
credits 3
$
(5.86
)
$
0.93
$
0.19
$
3.45
$
4.94
$
(0.05
)
$
2.53
AISC per ounce, after by-product credits
4
$
2.62
$
7.04
$
5.40
$
7.16
$
12.00
$
5.65
$
7.14
Operational Review
Greens Creek produced 8.5 million ounces of silver and 55,275
ounces of gold in 2024. Zinc production was consistent with the
prior year while lead production declined 6% due to lower
grades.
Silver and gold production in the fourth quarter increased by 2%
and 26% respectively, over the prior quarter, delivering 1.9
million ounces of silver and 14,804 ounces of gold. Fourth quarter
silver production was lower than planned as equipment availability
affected backfill cycles, resulting in a delay in the mining
sequence of higher-grade stopes. Silver grades are expected to
increase through the first quarter of 2025 as backfill cycles
improve.
Fourth Quarter Financial Review
Sales in the fourth quarter were $112.0 million, a decrease of
4% over the prior quarter, as higher realized prices for all metals
were offset by lower sales volumes.
Total cost of sales was $67.9 million, a decrease of 8% over the
prior quarter, primarily due to lower sales volumes, while total
production costs remained stable quarter-over-quarter. Cash costs
and AISC per silver ounce, each after by-product credits, were
negative $5.86 and $2.62 and decreased over the prior quarter due
to lower treatment charges, higher silver production, and higher
by-product credits (higher prices and production).3,4
Cash flow from operations was $60.4 million, an increase of 12%
over the prior quarter due to higher gross margin and favorable
working capital changes. Capital investment was $15.8 million
during the quarter, an increase of $4.3 million over the prior
quarter, primarily due to mobile equipment purchases.
Free cash flow for the quarter of $45.8 million was consistent
with the prior quarter as higher capital investment offset the
increase in cash flow from operation.
2024 Financial Review
Sales in 2024 were $421.6 million, an increase of 10% compared
to the prior year as higher realized prices for all metals except
lead, and higher zinc volumes were partially offset by lower sales
volumes of other metals.
Total cost of sales increased 3% to $268.1 million due to higher
labor and contractor costs and higher equipment maintenance costs.
Cash costs and AISC per silver ounce (each after by-product
credits) were negative $0.05 and $5.65, respectively, lower than
the prior year due to higher by-product credits (higher by-product
prices offset lower gold and lead production) and lower treatment
charges, which offset lower silver production, higher costs and
capital investment.3,4
Cash flow from operations for the year was $186.5 million and
increased 19% over the prior year due to higher revenues. Capital
investment was $47.8 million during the year, an increase of 10%
over the prior year, primarily due to increased mine development
and mobile equipment purchases.
Free cash flow generation for the year was $146.7 million and
increased 21% over the prior year as higher sales were partially
offset by higher costs and capital spend.2
Please refer to guidance section of the release for production,
cost, and capital guidance for 2025.
Lucky Friday Mine - Idaho
Dollars are in thousands except cost per
ton
4Q-2024
3Q-2024
2Q-2024
1Q-2024
4Q-2023
FY-2024
FY-2023
LUCKY FRIDAY
Operating Highlights
Tons of ore processed
108,585
104,281
107,441
86,234
5,164
406,541
231,129
Total production cost per ton
$
250.71
$
260.99
$
233.99
$
233.10
$
201.42
$
245.19
$
218.45
Ore grade milled - Silver (oz./ton)
13.0
12.1
12.9
12.9
12.7
12.7
14.0
Ore grade milled - Lead (%)
8.5
7.9
8.1
8.2
8.0
8.2
8.9
Ore grade milled - Zinc (%)
4.2
3.9
3.6
3.9
3.5
3.9
4.1
Silver produced (oz.)
1,336,910
1,184,819
1,308,155
1,061,065
61,575
4,890,949
3,086,119
Lead produced (tons)
8,685
7,662
8,229
6,689
372
31,265
19,543
Zinc produced (tons)
3,814
3,528
3,320
2,851
134
13,513
7,944
Financial Highlights
Sales
$
57,671
$
51,072
$
59,071
$
35,340
$
3,117
$
203,154
$
116,284
Total cost of sales
$
(40,157
)
$
(39,286
)
$
(37,523
)
$
(27,519
)
$
(3,117
)
$
(144,485
)
$
(84,185
)
Gross profit
$
17,514
$
11,786
$
21,548
$
7,821
$
—
$
58,669
$
32,099
Cash flow from operations
$
25,329
$
34,374
$
44,546
$
27,112
$
(7,982
)
$
131,361
$
57,558
Capital additions
$
(12,608
)
$
(11,178
)
$
(10,818
)
$
(14,988
)
$
(18,819
)
(49,592
)
$
(65,337
)
Free cash flow 2
$
12,721
$
23,196
$
33,728
$
12,124
$
(26,801
)
$
81,769
$
(7,779
)
Cash Costs and AISC, each after
by-product credits
Cash costs per ounce, after by-product
credits 3
$
7.68
$
9.98
$
5.32
$
8.85
N/A
$
7.80
$
5.51
AISC per ounce, after by-product credits
4
$
17.12
$
19.40
$
12.74
$
17.36
N/A
$
16.50
$
12.21
Operational Review
In 2024, Lucky Friday delivered solid operational performance,
producing 4.9 million ounces of silver, an increase of 58% over the
prior year (2023 production was negatively impacted by the
suspension of operations for five months due to the fire). In 2024,
the mine set multiple production records, including record tons
mined (ore and waste), record throughput, record zinc production
and the highest silver and lead production since 2000.
Fourth quarter silver production was 1.3 million ounces, an
increase of 13% over the prior quarter due to higher silver grades
and mill throughput.
Fourth Quarter Financial Review
Sales in the fourth quarter were $57.7 million, an increase of
13% over the prior quarter due to higher realized prices for all
metals and higher sales volumes.
Cost of sales were $40.2 million, in line with the prior
quarter. Cash costs and AISC per silver ounce, each after
by-product credits, were $7.68 and $17.12, respectively, and
decreased over the prior quarter primarily due to higher by-product
credits (higher prices and production) and higher silver
production.3,4
Cash flow from operations was $25.3 million, a decrease of 26%
over the prior quarter which was favorably impacted by insurance
receipts of $14.8 million. Capital investment increased to $12.6
million, a 13% increase over the prior quarter due to increased
development and other sustaining capital investments. Free cash
flow for the quarter was $12.7 million and decreased over the prior
quarter due to favorable impact of insurance receipts in the prior
quarter.
2024 Financial Review
Sales in 2024 were $203.2 million, an increase of 75% over the
prior year, attributable to higher silver and base metal production
(reflecting almost twelve full months of production versus seven
months in the prior year) and higher realized prices. Gross profit
in 2024 was $58.7 million, an increase of 83% over 2023, due to the
abovementioned reasons.
Cash costs and AISC per silver ounce, each after by-product
credits, were $7.80 and $16.50, respectively, an increase over the
prior year mainly due to higher costs reflecting a full year of
production.3,4
Cash flow from operations for the year was $131.4 million, an
increase of 128% over the prior year, reflecting the receipt of
insurance proceeds throughout the year. Capital investment, net of
leases, for the year was $49.6 million; major capital projects
executed were mine development, equipment purchases, and
pre-production drilling. Free cash flow for the year was $81.8
million and includes $50 million of insurance receipts.2
Please refer to guidance section of the release for production,
cost, and capital guidance for 2025.
Keno Hill - Yukon Territory
Dollars are in thousands except cost per
ton
4Q-2024
3Q-2024
2Q-2024
1Q-2024
4Q-2023
FY-2024
FY-2023
KENO HILL
Operating Highlights
Tons of ore processed
23,123
24,027
36,977
25,165
19,651
109,292
56,331
Ore grade milled - Silver (oz./ton)
29.6
25.7
25.1
26.3
31.7
26.2
27.7
Ore grade milled - Lead (%)
3.9
3.0
2.4
2.4
2.6
2.8
2.3
Ore grade milled - Zinc (%)
1.3
2.4
1.4
1.3
1.6
1.6
2.5
Silver produced (oz.)
629,828
597,293
900,440
646,312
608,301
2,773,873
1,502,577
Lead produced (tons)
839
670
845
576
481
2,930
1,225
Zinc produced (tons)
246
492
471
298
396
1,507
1,339
Financial Highlights
Sales
$
15,356
$
19,809
$
28,950
10,847
17,936
$
74,962
$
35,518
Total cost of sales
$
(15,356
)
$
(19,809
)
$
(28,950
)
(10,847
)
(17,936
)
$
(74,962
)
$
(35,518
)
Gross profit
$
—
$
—
$
—
$
—
—
$
—
$
—
Cash flow from operations
$
(1,752
)
$
(6,811
)
$
(465
)
$
(8,720
)
(1,188
)
$
(17,748
)
$
(24,243
)
Exploration
$
2,605
$
2,664
$
2,019
$
498
1,548
$
7,786
$
4,677
Capital additions
$
(15,584
)
$
(14,406
)
$
(14,533
)
$
(10,346
)
(12,549
)
$
(54,869
)
$
(44,672
)
Free cash flow 2
$
(14,731
)
$
(18,553
)
$
(12,979
)
$
(18,568
)
(12,189
)
$
(64,831
)
$
(64,238
)
Operational Review
Keno Hill produced 2.8 million ounces of silver, an increase of
85% over prior year and within guidance of 2.7-3.0 million ounces.
Mill throughput for the year averaged 299 tons per day ("tpd"),
below the permitted capacity of 440 tpd.
Fourth quarter silver production was nearly 630,000 ounces, an
increase of 5% over the prior quarter, attributable to higher
silver grades. Mill throughput averaged 251 tpd in the fourth
quarter and was impacted by the suspension of milling operations
for 25 days due to delays relating to the DSTF (including
permitting), and an additional 10 days due to the power
curtailments by Yukon Energy Corporation ("YEC"), the utility that
supplies power to the mine. The Company estimates the power
curtailments lowered production by approximately 130,000 ounces in
the fourth quarter.
Fourth Quarter Financial Review
Sales in the fourth quarter were $15.4 million, and decreased
22% over the prior quarter due to lower volumes sold. Total
expenditures on production costs (excluding depreciation) were
$21.4 million.
Cash flow from operations was negative $1.8 million and improved
over the prior quarter due to favorable working capital changes.
Capital investments during the quarter were $15.6 million and
included mine development and construction of the DSTF. Free cash
flow was negative $14.7 million, an improvement of $3.8 million
over the prior quarter due to the improvement in cash flow from
operations.
2024 Financial Review
Sales in 2024 were $75.0 million, an increase of 111% over the
prior year, due to higher volumes sold and higher realized prices.
Total expenditures on production costs (excluding depreciation)
were $91.8 million.
Cash flow from operations was negative $17.7 million, and
improved over the prior year due to higher sales. Capital
investment increased 23% due to higher mine development, equipment,
and investment in critical infrastructure projects like the DSTF.
Free cash flow for the year was negative $64.8 million, in line
with the prior year.
Outlook
Victoria Gold's Eagle Mine heap leach pad incident in June 2024,
although unrelated to Hecla and Keno Hill, caused the First Nation
of Na-Cho Nyäk Dun ("FNNND") to express strong positions on mining
activities within their Traditional Territory, where Keno Hill is
located, including a call to halt all mining. This has slowed the
Company’s permitting efforts as the Yukon Government is required to
consult with the FNNND on permitting matters. Progress continues to
be made on permitting, but significant challenges remain. Further,
power curtailment by YEC at Keno Hill has continued into 2025,
resulting in 8 days of operational stoppage as of this release.
Disruptions are expected to continue through the first half of
2025, due to cold temperatures and YEC’s insufficient generating
capacity relating to an out-of-service hydro-electric turbine that
is not expected to be repaired until summer 2025. However, the
Yukon Premier has committed resources to review and resolve the
power deficit at Keno Hill in the coming months. Considering
electrical reliability challenges, along with ongoing discussions
with the Yukon Government and the FNNND regarding the Eagle Mine
incident, we project 2025 silver production to remain comparable to
2024 levels, with growth expected to resume in 2026.
Despite these issues at Keno Hill, the Company has charted a
path to achieve sustainable profitable production through a phased
approach to throughput optimization. The immediate focus is on
achieving consistent performance at the current permitted capacity
of 440 tpd while investing in infrastructure and advancing critical
permitting for future expansion to approximately 600 tpd. Increased
throughput is critical for generating returns at this remote
operation due to its high fixed costs. The expansion pathway,
supported by the mine's robust resource base and recent increase in
silver reserves to over 64 million ounces, is expected to meet the
Company’s investment threshold criteria at current silver prices.
While permitting timelines in Yukon have been impacted by broader
regional developments, the Company is engaged with stakeholders and
regulatory authorities to advance permits. The goal of a
disciplined approach that focuses on operational and environmental
excellence is to unlock Keno Hill's significant value
potential.
Please refer to guidance section of the release for detailed
production, cost, and capital guidance for 2025.
Casa Berardi - Quebec
Dollars are in thousands except cost per
ton
4Q-2024
3Q-2024
2Q-2024
1Q-2024
4Q-2023
FY-2024
FY-2023
CASA BERARDI
Operating Highlights
Tons of ore processed - underground
113,068
101,308
118,485
123,123
104,002
455,984
420,915
Tons of ore processed - surface pit
292,148
268,291
248,494
258,503
251,009
1,067,436
1,025,573
Tons of ore processed - total
405,216
369,599
366,979
381,626
355,011
1,523,420
1,446,488
Surface tons mined - ore and waste
6,708,708
5,603,101
4,064,091
3,639,297
4,639,770
20,015,197
12,812,350
Total production cost per ton
$
100.34
$
97.82
$
107.84
$
96.53
$
108.20
$
100.58
$
104.75
Ore grade milled - Gold (oz./ton) -
underground
0.12
0.11
0.14
0.14
0.12
0.13
0.11
Ore grade milled - Gold (oz./ton) -
surface pit
0.04
0.05
0.04
0.04
0.06
0.04
0.04
Ore grade milled - Gold (oz./ton) -
combined
0.06
0.06
0.07
0.07
0.07
0.07
0.07
Gold produced (oz.) - underground
11,034
9,913
13,719
13,707
11,206
48,373
45,636
Gold produced (oz.) - surface pit
9,889
10,621
9,468
8,297
11,311
38,275
44,727
Gold produced (oz.) - total
20,923
20,534
23,187
22,004
22,517
86,648
90,363
Silver produced (oz.) - total
6,188
5,578
6,338
6,127
5,730
24,231
22,415
Financial Highlights
Sales
$
59,164
$
50,308
$
58,623
$
41,584
$
42,822
$
209,679
$
177,678
Total cost of sales
$
(51,734
)
$
(46,280
)
$
(67,340
)
$
(58,260
)
$
(58,945
)
$
(223,614
)
$
(221,341
)
Gross profit (loss)
$
7,430
$
4,028
$
(8,717
)
$
(16,676
)
$
(16,123
)
$
(13,935
)
$
(43,663
)
Cash flow from operations
$
12,356
$
15,305
$
17,816
$
3,186
$
3,136
$
48,663
$
2,181
Exploration
$
—
$
—
$
315
$
685
$
635
$
1,000
$
4,278
Capital additions
$
(16,406
)
$
(18,606
)
$
(12,376
)
$
(13,316
)
$
(15,929
)
$
(60,704
)
$
(70,056
)
Free cash flow 2
$
(4,050
)
$
(3,301
)
$
5,755
$
(9,445
)
$
(12,158
)
$
(11,041
)
$
(63,597
)
Cash Costs and AISC, each after
by-product credits
Cash costs per ounce, after by-product
credits 3
$
1,936
$
1,754
$
1,701
$
1,669
$
1,702
$
1,762
$
1,652
AISC per ounce, after by-product credits
4
$
2,203
$
2,059
$
1,825
$
1,899
$
1,969
$
1,990
$
2,048
Operational Review
Casa Berardi produced 86,648 ounces of gold in 2024, a decrease
of 4% over the prior year, due to lower surface grades, which
offset higher throughput from open pit operations. Mined tons (ore
and waste) in the 160 open pit increased 56% over the prior year,
while costs, both operating and capital were consistent with the
prior year. The mine is expected to transition to a surface only
operation by mid-2025, when the stripping ratio for the 160 pit is
expected to decline, and mill throughput is expected to be sourced
completely from the pit.
Fourth quarter production was 20,923 ounces of gold, an increase
of 2% over the prior quarter, due to higher throughput.
Fourth Quarter Financial Review
Sales in the fourth quarter were $59.2 million, an increase of
18% over the prior quarter, primarily due to higher gold
prices.
Total cost of sales was $51.7 million, an increase of 12% over
the prior quarter, due to higher sales volumes, and higher
contractor costs. Cash costs and AISC per gold ounce, each after
by-product credits, were $1,936 and $2,203, respectively, and
increased over the prior quarter due to higher production costs
attributable to higher ore and waste tons mined and milled during
the quarter, and include losses of $38.7 per ounce on foreign
exchange hedges.3,4
Cash flow from operations was $12.4 million, a 19% decrease over
the prior quarter due to unfavorable working capital changes
(timing of accounts payable payments). Capital investment for the
quarter was $16.4 million, net of capital leases of $5.0 million
($5.4 million and $11.0 million in sustaining and non-sustaining
capital investment, respectively). Non-sustaining capital was
primarily related to construction costs of tailings facilities.
Free cash flow for the quarter was negative $4.1 million and
decreased over the prior quarter due to lower cash flow from
operations.2
2024 Financial Review
Sales for 2024 were $209.7 million, an increase of 18% over the
prior year due to higher realized prices partially offset by lower
gold production and related total production costs.
Full-year total cost of sales was $223.6 million, in line with
the prior year. Cash costs and AISC per gold ounce, each after
by-product credits, were $1,762 and $1,990, respectively.3,4 The
year-over-year increase in cash costs per gold ounce was primarily
attributable to lower gold production.
Cash flow from operations for the year was $48.7 million, a
significant increase over the prior year, due to a $29.7 million
reduction in gross loss. Capital investment of $60.7 million (net
of capital leases of $5.0 million) was primarily related to
construction of the Cell 7 tailings facility. Free cash flow was
negative $11.1 million, an improvement of $52.5 million over the
prior year, attributable to the increase in cash flow from
operations.
Outlook
Casa Berardi is transitioning from a combined underground and
surface operation to a surface only operation. By mid-2025, the
Company expects to be mining only the 160 open pit, as the higher
margin stopes of the west underground mine should be exhausted.
With the expected decline in 160 pit's strip ratio, the mine's
economics are expected to improve with free cash flow generation
commencing in the second half of 2025.
Casa Berardi is expected to produce gold from the 160 pit until
2027. At current gold prices, the 160 pit is expected to generate
strong free cash flow from the second half of 2025 (when the pit's
strip ratio is expected to decline) until 2027. Upon completion of
mining at the 160 pit, and milling the remaining stockpiles, Casa
Berardi is expected to have a production gap commencing in 2027 and
continuing until 2032 or later. During this time, the focus is
expected to be on investing in permitting, infrastructure and
equipment, as well as de-watering and stripping two expected new
open pits, the Principal and West Mine Crown Pillar pits. Upon
conclusion of the hiatus and related permitting and construction,
the Company expects the mine to generate significant free cash flow
at current gold prices. Given the expected hiatus in future
production and the uncertainty surrounding permitting and timing of
construction of the new open pits, the Company continues to
consider strategic alternatives for Casa Berardi.
Please refer to guidance section of the release for production,
cost, and capital guidance for 2025.
EXPLORATION AND PRE-DEVELOPMENT _____________________________________________________________________________________________________________
Exploration and pre-development expenses totaled $5.7 million
for the fourth quarter and $27.3 million for the entire year.
During the fourth quarter, exploration activities focused on
targets at Keno Hill and Greens Creek.
For the year ended 2024, the Company reported silver reserves of
239.8 million ounces, the second highest in the Company's history
and only 1 million ounces lower than the record reserves in 2022.
The 2024 exploration program and resulting reinterpretations were
particularly successful at expanding Keno Hill's silver reserves,
which increased by 17%, and nearly replacing silver production at
Greens Creek. A breakdown of the Company's reserves and resources
is located in Table A at the end of this news release.
Selected drill intercepts for the two operations are shown
below. For further details on the Company's 2024 exploration and
pre-development program and 2025 planned expenditures as well as
reserves and resources at year-end 2024, please refer to the news
release entitled "Hecla Reports Exploration Results and Reserves"
released on February 12, 2025.
Keno Hill
Bermingham Vein Zone
- Footwall Vein: 36.6 ounce per ton ("opt") silver, 3.0% lead,
and 0.9% zinc over 11.2 feet
- Includes: 48.4 opt silver, 3.7% lead, and 1.0% zinc over 8.1
feet
- Main Vein: 42.8 oz/ton silver, 9.3% lead, and 9.7% zinc over
6.8 feet
Greens Creek
West Zone
- 34.6 opt silver, 0.44 oz/ton gold, 2.8% lead and 5.9% zinc over
12.1 feet
- 40.1 opt silver, 0.36 oz/ton gold, 4.3% lead and 8.2% zinc over
8.0 feet
DIVIDENDS _____________________________________________________________________________________________________________
Revision to Dividend Policy
The Company has revised its common stock dividend policy,
maintaining the base cash dividend of $0.015 per share ($0.00375
per share quarterly) while eliminating the silver-linked component.
The revised dividend policy supports the Company's capital
allocation priorities of (i) investing in high-return organic
growth opportunities, with a focus on development of Keno Hill,
(ii) strengthening the balance sheet and enhancing financial
flexibility, and (iii) delivering disciplined shareholder
returns.
Pursuant to the revised dividend policy, the Board of Directors
declared a quarterly cash dividend of $0.00375 per share of common
stock payable on or about March 24, 2025, to stockholders of record
on March 10, 2025.
Preferred Stock
The Board of Directors declared a quarterly cash dividend of
$0.875 per share of Series B preferred stock, payable on or about
April 1, 2025, to stockholders of record on March 14, 2025.
2025 GUIDANCE 6 _____________________________________________________________________________________________________________
In the tables below the Company provides production, cost, and
capital guidance on a consolidated basis and by mine, as well as
projected consolidated exploration and pre-development
expenditures.
2025 Production Outlook
Consolidated silver production is expected to be
15.5-17.0 million ounces, in line with 2024 silver production.
- Greens Creek's silver production is expected to be 8.1-8.8
million ounces, consistent with 2024 production. Base metal
production for the mine is also expected to be in line with 2024,
while gold production is expected to decline due to lower
grades.
- Lucky Friday's silver production is expected to be 4.7-5.1
million ounces, consistent with 2024 production.
- Keno Hill silver production is expected to be 2.7-3.1 million
ounces, consistent with 2024 production, as the Company continues
to focus on permitting matters and execution of critical
infrastructure projects. Keno Hill's infrastructure (primarily camp
facilities) is expected to face higher demand than in 2024 from the
Company's environmental remediation services subsidiary, ERDC,
which performs environmental remediation work in Yukon on behalf of
the Canadian government.
Consolidated gold production is expected to decrease to
120-130 thousand ounces, primarily due to less production at Casa
Berardi as the mine transitions to a surface only operation during
the year.
Silver Production
(Moz)
Gold Production (Koz)
Silver Equivalent
(Moz)
Gold Equivalent (Koz)
Greens Creek *
8.1 - 8.8
44.0 - 48.0
18.0 - 19.5
200.0 - 210.0
Lucky Friday *
4.7 - 5.1
N/A
8.0 - 8.5
90.0 - 95.0
Casa Berardi
N/A
76.0 - 82.0
6.5 - 7.5
76.0 - 82.0
Keno Hill *
2.7 - 3.1
N/A
3.0 - 3.5
30.0 - 40.0
2025 Total
15.5 - 17.0
120.0 - 130.0
35.5 - 39.0
396.0 - 427.0
* Equivalent ounces include Lead and Zinc production
2025 Cost Guidance
- At Greens Creek, guidance for cash costs per silver ounce
(after by-product credits) is higher compared to 2024 due to
expected increases in labor and power costs, the latter resulting
from expected maintenance at the hydropower utility that supplies
power to the mine (requiring the mine to generate using more
expensive diesel power), as well as lower price assumptions for
by-products (resulting in lower by-product credits). The increase
in guidance for AISC per silver ounce (after by-product credits) is
attributable to planned higher capital investment.
- At Lucky Friday, guidance for cash costs per silver ounce
(after by-product credits) is lower for 2025 compared to 2024 as
2024 was impacted by higher than expected costs incurred as the
mine ramped-up to full production in the first quarter of the year.
The increase in guidance for AISC per silver ounce (after
by-product credits) is attributable to planned higher capital
spend.
- At Keno Hill, expenditures on production costs, excluding
depreciation, are expected to be $15-$17 million per quarter.
Guidance for cash costs and AISC per silver ounce (after by-product
credits) will be provided when the mine reaches commercial
production.
- At Casa Berardi, guidance for cash costs and AISC per gold
ounce (after by-product credits) is lower than 2024 as costs and
capital are expected to decrease with the mine's transition to an
open-pit only operation in mid-2025.
Total costs of Sales
(million)
Cash costs, after by-product
credits, per silver/gold ounce3
AISC, after by-product
credits, per produced silver/gold ounce4
Greens Creek
289.0
$2.00 - $2.50
$8.75 - $9.50
Lucky Friday
135.0
$4.25 - $4.75
$16.50 - $18.00
Total Silver
424.0
$3.00 - $3.25
$15.75 - $17.00
Casa Berardi
165.5
$1,500 - $1,650
$1,750 - $1,950
2025 Capital and Exploration Guidance
Consolidated capital investment is expected to be $222-$242
million and is expected to increase over 2024 due to increased
investment at Greens Creek and Lucky Friday.
- Greens Creek's planned increase in capital investment is
primarily attributable to engineering and construction related to
the expansion of its DSTF, which is expected to increase tailings
capacity to 2040.
- Lucky Friday's planned increase in capital investment is due to
increased development and a surface cooling project, which is
critical to increase the designed cooling capacity at the mine over
its reserve mine-life of seventeen years.
- Expected capital spend at Keno Hill comprises mine development
and mine infrastructure projects, including a paste backfill plant,
DSTF, and water treatment plant.
- Casa Berardi's expected growth capital investment includes
tailings construction costs.
Exploration and pre-development expenditures are expected to be
$28 million, with the focus at Greens Creek and Keno Hill, with
some planned spend at Nevada and Lucky Friday.
(millions)
Total
Sustaining
Growth
2025 Total Capital expenditures
$222 - $242
$125 - $133
$97 - $109
Greens Creek
$58 - $63
$48 - $51
$10 - $12
Lucky Friday
$63 - $68
$58 - $61
$5 - $7
Casa Berardi
$58 - $63
$19 - $21
$39 - $42
Keno Hill
$43 - $48
N/A
$43 - $48
2025 Exploration &
Pre-Development
$28
CONFERENCE CALL AND WEBCAST _____________________________________________________________________________________________________________
A conference call and webcast will be held on Friday, February
14, at 10:00 a.m. Eastern Time to discuss these results. We
recommend that you dial in at least 10 minutes before the call
commencement. You may join the conference call by dialing toll-free
1-800-715-9871 or for international dialing 1-646-370-1963. The
Conference ID is 4812168 and must be provided when dialing in.
Hecla's live and archived webcast can be accessed at
https://events.q4inc.com/attendee/766866042 or www.hecla.com under
Investors.
VIRTUAL INVESTOR EVENT _____________________________________________________________________________________________________________
Hecla will be holding a Virtual Investor Event on Friday,
February 14, from 12:00 p.m. to 1:30 p.m. Eastern Time.
Hecla invites shareholders, investors, and other interested
parties to schedule a personal, 30-minute virtual meeting (video or
telephone) with a member of senior management to discuss Financial,
Exploration, Operations, ESG or general matters. Click on the link
below to schedule a call (or copy and paste the link into your web
browser). You can select a topic once you have entered the meeting
calendar. If you are unable to book a time, either due to high
demand or for other reasons, please reach out to Anvita M. Patil,
Vice President, Investor Relations and Treasurer at
hmc-info@hecla.com or 208-769-4100.
One-on-One meeting URL: https://calendly.com/2024-feb-vie
ABOUT HECLA
Founded in 1891, Hecla Mining Company (NYSE: HL) is the largest
silver producer in the United States and Canada. 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.
NOTES
Non-GAAP Financial Measures
Non-GAAP financial measures are intended to provide additional
information only and do not have any standard meaning prescribed by
United States generally accepted accounting principles ("GAAP").
These measures should not be considered in isolation or as a
substitute for measures of performance prepared in accordance with
GAAP. The non-GAAP financial measures cited in this release and
listed below are reconciled to their most comparable GAAP measure
at the end of this release.
(1) Adjusted net income (loss) applicable to common stockholders
is a non-GAAP measurement, a reconciliation of which to net income
(loss) applicable to common stockholders, the most comparable GAAP
measure, can be found at the end of the release. Adjusted net
income (loss) applicable to common stockholders is a measure used
by management to evaluate the Company's operating performance but
should not be considered an alternative to net income (loss)
applicable to common stockholders as defined by GAAP. They exclude
certain impacts which are of a nature which we believe are not
reflective of our underlying performance. Management believes that
adjusted net income (loss) applicable to common stockholders per
common share provides investors with the ability to better evaluate
our underlying operating performance.
(2) Free cash flow is a non-GAAP measure calculated as cash
provided by operating activities less capital expenditures. Cash
provided by operating activities for the Greens Creek, Lucky
Friday, Keno Hill, and Casa Berardi operating segments excludes
exploration and pre-development expense, as it is a discretionary
expenditure and not a component of the mines’ operating
performance. Capital expenditures refers to Additions to
properties, plants and equipment from the Consolidated Statements
of Cash Flows, net of finance leases.
(3) Cash costs, after by-product credits, per silver and gold
ounce is a non-GAAP measurement, a reconciliation of total cost of
sales, can be found at the end of the release. It is an important
operating statistic that management utilizes to measure each mine's
operating performance. It also allows the benchmarking of
performance of each mine versus those of our competitors. As a
primary silver mining company, management also uses the statistic
on an aggregate basis - aggregating the Greens Creek and Lucky
Friday mines to compare performance with that of other silver
mining companies. Similarly, the statistic is useful in identifying
acquisition and investment opportunities as it provides a common
tool for measuring the financial performance of other mines with
varying geologic, metallurgical and operating characteristics. In
addition, the Company may use it when formulating performance goals
and targets under its incentive program.
(4) All-in sustaining cost (AISC), after by-product credits, is
a non-GAAP measurement, a reconciliation of which to total cost of
sales, the closest GAAP measurement, can be found in the end of the
release. AISC, after by-product credits, includes total cost of
sales and other direct production costs, expenses for reclamation
at the mine sites and all site sustaining capital costs. AISC,
after by-product credits, is calculated net of depreciation,
depletion, and amortization and by-product credits. Prior year
presentation has been adjusted to conform with current year
presentation.
(5) Adjusted EBITDA is a non-GAAP measurement, a reconciliation
of which to net loss, the most comparable GAAP measure, can be
found at the end of the release. Adjusted EBITDA is a measure used
by management to evaluate the Company's operating performance but
should not be considered an alternative to net loss, or cash
provided by operating activities as those terms are defined by
GAAP, and does not necessarily indicate whether cash flows will be
sufficient to fund cash needs. In addition, the Company may use it
when formulating performance goals and targets under its incentive
program. Net debt to adjusted EBITDA is a non-GAAP measurement, a
reconciliation of which to debt and net income (loss), the most
comparable GAAP measurements, can be found at the end of the
release. It is an important measure for management to measure
relative indebtedness and the ability to service the debt relative
to its peers. It is calculated as total debt outstanding less total
cash on hand divided by adjusted EBITDA.
(6) Expectations for 2025 include silver, gold, lead, and zinc
production from Greens Creek, Lucky Friday, Keno Hill, and Casa
Berardi converted using gold $2,550/oz, silver $28/oz, zinc
$1.25/lb, and lead $0.85/lb. Numbers are rounded.
Current GAAP measures used in the mining industry, such as total
cost of goods sold, do not capture all the expenditures incurred to
discover, develop and sustain silver and gold production.
Management believes that AISC is a non-GAAP measure that provides
additional information to management, investors and analysts to
help (i) in the understanding of the economics of our operations
and performance compared to other producers and (ii) in the
transparency by better defining the total costs associated with
production. Similarly, the statistic is useful in identifying
acquisition and investment opportunities as it provides a common
tool for measuring the financial performance of other mines with
varying geologic, metallurgical and operating characteristics. In
addition, the Company may use it when formulating performance goals
and targets under its incentive program.
Cautionary Statement Regarding Forward
Looking Statements, Including 2025 Outlook
This news release contains “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, including
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 may include, without limitation: (i) Silver grades at
Greens Creek are expected to increase through the first quarter of
2025 as backfill cycles improve; (ii) production is expected to
increase at Keno Hill in 2026; (iii) Yukon Energy Corporation's
out-of-service hydro-electric turbine is expected to be repaired by
summer 2025; (iv) Keno Hill's expected increase in throughput to
600 tons per day and production growth to sustainable profitable
production is expected to meet the Company's investment threshold
criteria at current silver prices; (v) Casa Berardi is expected to
1) continue underground production through mid-2025, 2) produce
gold from the 160 pit until 2027, and 3) have a production gap
commencing in 2027 to 2032 or later. During this time, the focus is
expected to be on investing in infrastructure and equipment,
permitting and de-watering and stripping two expected new open
pits, Principal and West Mine Crown Pillar. Upon conclusion of the
hiatus and related permitting and construction, the Company expects
the mine to generate significant free cash flow, particularly at
current gold prices; (vi) projected total cost of sales, as well as
cash costs and AISC per ounce (in each case after by-product
credits) for Greens Creek, Lucky Friday, and Casa Berardi
individually and for silver overall for 2025; (vii) Lucky Friday's
reserve mine-life is expected to be eighteen years; (viii)
Company-wide and mine-specific estimated spending on capital,
exploration and predevelopment for 2025; and (ix) Company-wide and
mine-specific estimated silver, gold, silver-equivalent and
gold-equivalent ounces of production for 2025. 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. 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) the exchange
rate for the USD/CAD being approximately consistent with current
levels; (v) certain price assumptions for gold, silver, lead and
zinc; (vi) prices for key supplies being approximately consistent
with current levels; (vii) the accuracy of our current mineral
reserve and mineral resource estimates; (viii) there being no
significant changes to the availability of employees, vendors and
equipment; (ix) 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;
(x) counterparties performing their obligations under hedging
instruments and put option contracts; (xi) sufficient workforce is
available and trained to perform assigned tasks; (xii) weather
patterns and rain/snowfall within normal seasonal ranges so as not
to impact operations; (xiii) relations with interested parties,
including First Nations and Native Americans, remain productive;
(xiv) maintaining availability of water rights; (xv) factors do not
arise that reduce available cash balances; and (xvi) there being no
material increases in our current requirements to post or maintain
reclamation and performance bonds or collateral related thereto. 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 2024 Form 10-K filed on February 13, 2025, 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.
Cautionary Statements to Investors on
Reserves and Resources
This news release uses the terms “mineral resources”, “measured
mineral resources”, “indicated mineral resources” and “inferred
mineral resources.” Mineral resources that are not mineral reserves
do not have demonstrated economic viability. You should not assume
that all or any part of measured or indicated mineral resources
will ever be converted into mineral reserves. Further, inferred
mineral resources have a great amount of uncertainty as to their
existence and as to whether they can be mined legally or
economically, and an inferred mineral resource may not be
considered when assessing the economic viability of a mining
project, and may not be converted to a mineral reserve. We report
reserves and resources under the SEC’s mining disclosure rules
(“S-K 1300”) and Canada’s National Instrument 43-101 – Standards of
Disclosure for Mineral Projects (“NI 43-101”) because we are a
“reporting issuer” under Canadian securities laws. Unless otherwise
indicated, all resource and reserve estimates contained in this
press release have been prepared in accordance with S-K 1300 as
well as NI 43-101.
Qualified Person (QP)
Kurt D. Allen, MSc., CPG, VP -Exploration of Hecla Mining
Company and Keith Blair, MSc., CPG, Chief Geologist of Hecla
Limited, who serve as a Qualified Person under S-K 1300 and NI
43-101, supervised the preparation of the scientific and technical
information concerning Hecla’s mineral projects in this news
release. Technical Report Summaries for the Company’s Greens Creek,
Lucky Friday, Casa Berardi and Keno Hill properties are filed as
exhibits 96.1 - 96.4, respectively, to the Company’s Annual Report
on Form 10-K for the year ended December 31, 2023 and are available
at www.sec.gov. Information regarding
data verification, surveys and investigations, quality assurance
program and quality control measures and a summary of analytical or
testing procedures for (i) the Greens Creek Mine are contained in
its Technical Report Summary and in its NI 43-101 technical report
titled “Technical Report for the Greens Creek Mine” effective date
December 31, 2018, (ii) the Lucky Friday Mine are contained in its
Technical Report Summary and in its NI 43-101 technical report
titled “Technical Report for the Lucky Friday Mine Shoshone County,
Idaho, USA” effective date April 2, 2014, (iii) Casa Berardi are
contained in its Technical Report Summary and in its NI 43-101
technical report titled “Technical Report on the Casa Berardi Mine,
Northwestern Quebec, Canada” effective date December 31, 2023, (iv)
Keno Hill is contained in its Technical Report Summary titled “S-K
1300 Technical Report Summary on the Keno Hill Mine, Yukon, Canada”
and in its NI 43-101 technical report titled “Technical Report on
the Keno Hill Mine, Yukon, Canada” effective date December 31,
2023, and (v) the San Sebastian Mine, Mexico, are contained in a NI
43-101 technical report prepared for Hecla titled “Technical Report
for the San Sebastian Ag-Au Property, Durango, Mexico” effective
date September 8, 2015. Also included in each Technical Report
Summary and technical report listed above is a description of the
key assumptions, parameters and methods used to estimate mineral
reserves and resources and a general discussion of the extent to
which the estimates may be affected by any known environmental,
permitting, legal, title, taxation, socio-political, marketing, or
other relevant factors. Information regarding data verification,
surveys and investigations, quality assurance program and quality
control measures and a summary of sample, analytical or testing
procedures are contained in NI 43-101 technical reports prepared
for Klondex Mines Ltd. for (i) the Fire Creek Mine (technical
report dated March 31, 2018), (ii) the Hollister Mine (technical
report dated May 31, 2017, amended August 9, 2017), and (iii) the
Midas Mine (technical report dated August 31, 2014, amended April
2, 2015). Information regarding data verification, surveys and
investigations, quality assurance program and quality control
measures and a summary of sample, analytical or testing procedures
are contained in a NI 43-101 technical reports prepared for ATAC
Resources Ltd. for (i) the Osiris Project (technical report dated
July 28, 2022) and (ii) the Tiger Project (technical report dated
February 27, 2020). Copies of these technical reports are available
under the SEDAR profiles of Klondex Mines Unlimited Liability
Company and ATAC Resources Ltd., respectively, at www.sedar.com (the Fire Creek technical report is
also available under Hecla’s profile on SEDAR). Mr. Allen and Mr.
Blair reviewed and verified information regarding drill sampling,
data verification of all digitally collected data, drill surveys
and specific gravity determinations relating to all the mines. The
review encompassed quality assurance programs and quality control
measures including analytical or testing practice, chain-of-custody
procedures, sample storage procedures and included independent
sample collection and analysis. This review found the information
and procedures meet industry standards and are adequate for Mineral
Resource and Mineral Reserve estimation and mine planning
purposes.
HECLA MINING COMPANY
Consolidated Statements of
Operations
(dollars and shares in thousands,
except per share amounts - unaudited)
Three Months Ended
Twelve Months Ended
December 31, 2024
September 30, 2024
December 31, 2024
December 31, 2023
Sales
$
249,655
$
245,085
$
929,925
$
720,227
Cost of sales and other direct production
costs
141,465
144,855
548,245
458,504
Depreciation, depletion and
amortization
39,856
40,944
183,470
148,774
Total cost of sales
181,321
185,799
731,715
607,278
Gross profit
68,334
59,286
198,210
112,949
Other operating expenses:
General and administrative
9,048
10,401
45,405
42,722
Exploration and pre-development
5,744
10,553
27,321
32,512
Ramp-up and suspension costs
9,567
13,679
43,307
76,252
Write down of property, plant and
equipment
110
14,464
14,574
—
Provision for closed operations and
environmental matters
3,162
1,542
6,843
7,575
Other operating income
2,566
(13,828
)
(45,516
)
(1,438
)
30,197
36,811
91,934
157,623
Income (loss) from operations
38,137
22,475
106,276
(44,674
)
Other expense:
Interest expense
(13,784
)
(10,901
)
(49,834
)
(43,319
)
Fair value adjustments, net
(9,008
)
3,654
(2,204
)
2,925
Foreign exchange (loss) gain
4,143
(3,246
)
7,552
(3,810
)
Other income
505
1,229
4,426
5,883
(18,144
)
(9,264
)
(40,060
)
(38,321
)
Income (loss) before income and mining
taxes
19,993
13,211
66,216
(82,995
)
Income and mining tax provision
(8,069
)
(11,450
)
(30,414
)
(1,222
)
Net income (loss)
11,924
1,761
35,802
(84,217
)
Preferred stock dividends
(138
)
(138
)
(552
)
(552
)
Net income (loss) applicable to common
stockholders
$
11,786
$
1,623
$
35,250
$
(84,769
)
Basic income (loss) per common share after
preferred dividends
$
0.02
$
0.00
$
0.06
$
(0.14
)
Diluted income (loss) per common share
after preferred dividends
$
0.02
$
0.00
$
0.06
$
(0.14
)
Weighted average number of common shares
outstanding basic
628,025
621,921
620,848
605,668
Weighted average number of common shares
outstanding diluted
631,442
625,739
622,535
605,668
HECLA MINING COMPANY
Consolidated Statements of Cash
Flows
(dollars in thousands -
unaudited)
Three Months Ended
Twelve Months Ended
December 31, 2024
September 30, 2024
December 31, 2024
December 31, 2023
OPERATING ACTIVITIES
Net income (loss)
$
11,924
$
1,761
$
35,802
$
(84,217
)
Non-cash elements included in net income
(loss):
Depreciation, depletion and
amortization
41,206
44,118
190,471
163,672
Inventory adjustments
1,633
178
11,707
20,819
Fair value adjustments, net
9,008
(3,654
)
2,204
(2,925
)
Provision for reclamation and closure
costs
3,942
1,822
9,370
9,658
Stock-based compensation
2,258
2,255
8,659
6,598
Deferred income taxes
5,427
8,573
19,688
(6,115
)
Net foreign exchange (gain) loss
(4,143
)
3,246
(7,552
)
3,810
Write down of property, plant and
equipment
110
14,464
14,574
—
Other non-cash items, net
1,561
341
1,706
3,094
Change in assets and liabilities:
Accounts receivable
7,040
(7,085
)
(17,159
)
25,133
Inventories
(5,460
)
3,498
(32,835
)
(24,035
)
Other current and non-current assets
(12,870
)
(7,989
)
(12,517
)
(32,456
)
Accounts payable, accrued and other
current liabilities
4,165
(4,690
)
(2,826
)
598
Accrued payroll and related benefits
147
2,772
6,739
(4,982
)
Accrued taxes
1,748
2,085
2,817
(571
)
Accrued reclamation and closure costs and
other non-current liabilities
(226
)
(6,686
)
(12,571
)
(2,582
)
Net cash provided by operating
activities
67,470
55,009
218,277
75,499
INVESTING ACTIVITIES
Additions to properties, plants, equipment
and mineral interests
(60,784
)
(55,699
)
(214,492
)
(223,887
)
Proceeds from disposition of assets
221
199
1,694
1,329
Purchases of investments
—
—
(73
)
(8,962
)
Acquisition, net
—
—
—
228
Net cash used in investing
activities
(60,563
)
(55,500
)
(212,871
)
(231,292
)
FINANCING ACTIVITIES
Proceeds from issuance of stock, net of
related costs
—
57,265
58,368
56,684
Acquisition of treasury shares
—
—
(1,197
)
(2,036
)
Borrowings of debt
129,000
83,000
279,000
239,000
Repayments of debt
(119,000
)
(132,000
)
(384,000
)
(111,000
)
Dividends paid to common and preferred
stockholders
(8,640
)
(8,697
)
(25,331
)
(15,713
)
Repayments of finance leases and other
(2,823
)
(2,336
)
(10,664
)
(10,605
)
Net cash (used in) provided by
financing activities
(1,463
)
(2,768
)
(83,824
)
156,330
Effect of exchange rates on cash
(856
)
960
(1,076
)
1,095
Net increase (decrease) in cash, cash
equivalents and restricted cash and cash equivalents
4,588
(2,299
)
(79,494
)
1,632
Cash, cash equivalents and restricted
cash and cash equivalents at beginning of period
23,457
25,756
107,539
105,907
Cash, cash equivalents and restricted
cash and cash equivalents at end of period
$
28,045
$
23,457
$
28,045
$
107,539
HECLA MINING COMPANY
Consolidated Balance Sheets
(dollars and shares in thousands
- unaudited)
December 31, 2024
December 31, 2023
ASSETS
Current assets:
Cash and cash equivalents
$
26,868
$
106,374
Accounts receivable
49,053
33,116
Inventories
104,936
93,647
Other current assets
33,295
27,125
Total current assets
214,152
260,262
Investments
33,897
33,724
Restricted cash and cash equivalents
1,177
1,165
Properties, plants, equipment and mine
development, net
2,694,119
2,666,250
Operating lease right-of-use assets
7,544
8,349
Other non-current assets
30,171
41,354
Total assets
2,981,060
$
3,011,104
LIABILITIES
Current liabilities:
Accounts payable and other current accrued
liabilities
$
127,988
$
123,643
Current debt
33,617
—
Finance leases
8,169
9,752
Accrued reclamation and closure costs
13,748
9,660
Accrued interest
14,316
14,405
Total current liabilities
197,838
157,460
Accrued reclamation and closure costs
111,162
110,797
Long-term debt including finance
leases
508,927
653,063
Deferred tax liability
110,266
104,835
Other non-current liabilities
13,353
16,845
Total liabilities
941,546
1,043,000
STOCKHOLDERS’ EQUITY
Preferred stock
39
39
Common stock
160,052
156,076
Capital surplus
2,418,149
2,343,747
Accumulated deficit
(493,529
)
(503,861
)
Accumulated other comprehensive (loss)
income, net
(10,266
)
5,837
Treasury stock
(34,931
)
(33,734
)
Total stockholders’ equity
2,039,514
1,968,104
Total liabilities and stockholders’
equity
$
2,981,060
$
3,011,104
Common shares outstanding
640,548
624,647
Non-GAAP Measures (Unaudited)
Reconciliation of Total Cost of Sales to Cash Costs, Before
By-product Credits and Cash Costs, After By-product Credits
(non-GAAP) and All-In Sustaining Cost, Before By-product Credits
and All-In Sustaining Cost, After By-product Credits
(non-GAAP)
The tables below present reconciliations between the most
comparable GAAP measure of total cost of sales to the non-GAAP
measures of (i) Cash Costs, Before By-product Credits, (ii) Cash
Costs, After By-product Credits, (iii) AISC, Before By-product
Credits and (iv) AISC, After By-product Credits for our operations
and for the Company for the three and twelve month periods ended
December 31, 2024 and 2023, and for estimated amounts for the
twelve months ended December 31, 2025.
Cash Cost, After By-product Credits, per Ounce and AISC, After
By-product Credits, per Ounce are measures developed by precious
metals companies (including the Silver Institute and the World Gold
Council) in an effort to provide a uniform standard for comparison
purposes. There can be no assurance, however, that these non-GAAP
measures as we report them are the same as those reported by other
mining companies.
Cash Costs, After By-product Credits, per Ounce is an important
operating statistic that we utilize to measure each mine's
operating performance. We use AISC, After By-product Credits, per
Ounce as a measure of our mines' net cash flow after costs for
reclamation and sustaining capital. This is similar to the Cash
Costs, After By-product Credits, per Ounce non-GAAP measure we
report, but also includes reclamation and sustaining capital costs.
Current GAAP measures used in the mining industry, such as cost of
goods sold, do not capture all the expenditures incurred to
discover, develop and sustain silver and gold production. Cash
Costs, After By-product Credits, per Ounce and AISC, After
By-product Credits, per Ounce also allow us to benchmark the
performance of each of our mines versus those of our competitors.
As a silver and gold mining company, we also use these statistics
on an aggregate basis - aggregating the Greens Creek and Lucky
Friday mines to compare our performance with that of other silver
mining companies. Similarly, these statistics are useful in
identifying acquisition and investment opportunities as they
provide a common tool for measuring the financial performance of
other mines with varying geologic, metallurgical and operating
characteristics.
Cash Costs, Before By-product Credits and AISC, Before
By-product Credits include all direct and indirect operating cash
costs related directly to the physical activities of producing
metals, including mining, processing and other plant costs,
third-party refining expense, on-site general and administrative
costs, royalties and mining production taxes. AISC, Before
By-product Credits for each mine also includes reclamation and
sustaining capital costs. AISC, Before By-product Credits for our
consolidated silver properties also includes corporate costs for
general and administrative expense and sustaining capital costs.
By-product credits include revenues earned from all metals other
than the primary metal produced at each unit. As depicted in the
tables below, by-product credits comprise an essential element of
our silver unit cost structure, distinguishing our silver
operations due to the polymetallic nature of their orebodies.
In addition to the uses described above, Cash Costs, After
By-product Credits, per Ounce and AISC, After By-product Credits,
per Ounce provide management and investors an indication of
operating cash flow, after consideration of the average price,
received from production. We also use these measurements for the
comparative monitoring of performance of our mining operations
period-to-period from a cash flow perspective.
The Casa Berardi information below reports Cash Costs, After
By-product Credits, per Gold Ounce and AISC, After By-product
Credits, per Gold Ounce for the production of gold, their primary
product, and by-product revenues earned from silver, which is a
by-product at Casa Berardi. Only costs and ounces produced relating
to units with the same primary product are combined to represent
Cash Costs, After By-product Credits, per Ounce and AISC, After
By-product Credits, per Ounce. Thus, the gold produced at our Casa
Berardi unit is not included as a by-product credit when
calculating Cash Costs, After By-product Credits, per Silver Ounce
and AISC, After By-product Credits, per Silver Ounce for the total
of Greens Creek and Lucky Friday, our combined silver properties.
Similarly, the silver produced at our other two units is not
included as a by-product credit when calculating the gold metrics
for Casa Berardi. We have not disclosed cost per ounce statistics
for the Keno Hill operation as it is in the production ramp-up
phase and has not met our definition of commercial production.
Determination of when those criteria have been met requires the use
of judgment, and our definition of commercial production may differ
from that of other mining companies.
In thousands (except per ounce
amounts)
Three Months Ended December
31, 2024
Three Months Ended September
30, 2024
Twelve Months Ended December
31, 2024
Twelve Months Ended December
31, 2023
Greens Creek
Lucky Friday
Keno Hill (6)
Corporate (2)
Total Silver
Greens Creek
Lucky Friday
Keno Hill (6)
Corporate (2)
Total Silver
Greens Creek
Lucky Friday
Keno Hill (6)
Corporate (2)
Total Silver
Greens Creek
Lucky Friday
Keno Hill (6)
Corporate (2)
Total Silver
Total cost of sales
$67,887
$40,157
$15,356
$—
$123,400
$73,597
$39,286
$19,809
$—
$132,692
$268,127
$144,485
$74,962
$—
$487,574
$259,895
$84,185
$35,518
$—
$379,598
Depreciation, depletion and
amortization
(13,743)
(11,749)
(3,587)
—
(29,079)
(13,948)
(10,681)
(4,218)
—
(28,847)
(53,450)
(41,049)
(16,136)
—
(110,635)
(53,995)
(24,325)
(4,277)
—
(82,597)
Treatment costs
4,511
4,837
—
—
9,348
5,962
3,650
-
—
9,612
26,266
14,456
—
—
40,722
40,987
10,981
1,070
—
53,038
Change in product inventory
(2,833)
1,488
—
—
(1,345)
(8,125)
106
—
—
(8,019)
(5,858)
2,090
—
—
(3,768)
(4,266)
(5,164)
—
—
(9,430)
Reclamation and other costs
(1,119)
(2,152)
—
—
(3,271)
(1,825)
(241)
—
—
(2,066)
(4,481)
(2,806)
—
—
(7,287)
(748)
(826)
—
—
(1,574)
Exclusion of Lucky Friday cash costs
(8)
—
—
—
—
—
—
—
—
—
—
—
(3,634)
—
—
(3,634)
—
(851)
—
—
(851)
Exclusion of Keno Hill cash costs (6)
—
—
(11,769)
—
(11,769)
—
—
(15,591)
—
(15,591)
—
—
(58,826)
—
(58,826)
—
—
(32,311)
—
(32,311)
Cash Costs, Before By-product Credits
(1)
54,703
32,581
—
—
87,284
55,661
32,120
—
—
87,781
230,604
113,542
—
—
344,146
241,873
64,000
—
—
305,873
Reclamation and other costs
785
183
—
—
968
786
303
—
—
1,089
3,141
891
—
—
4,032
2,889
671
—
—
3,560
Sustaining capital
15,329
12,434
—
389
28,152
10,558
10,862
—
42
21,462
45,214
44,864
—
1,532
91,610
41,935
39,019
—
928
81,882
Exclusion of Lucky Friday sustaining costs
(8)
—
—
—
—
—
—
—
—
—
—
—
(5,396)
—
—
(5,396)
—
(19,702)
—
—
(19,702)
General and administrative
—
—
—
9,048
9,048
—
—
—
10,401
10,401
—
—
—
45,405
45,405
—
—
—
42,722
42,722
AISC, Before By-product Credits (1)
70,817
45,198
—
9,437
125,452
67,005
43,285
—
10,443
120,733
278,959
153,901
—
46,937
479,797
286,697
83,988
—
43,650
414,335
By-product credits:
Zinc
(24,883)
(7,707)
—
—
(32,590)
(22,126)
(7,046)
—
—
(29,172)
(89,088)
(26,244)
—
—
(115,332)
(83,454)
(14,507)
—
—
(97,961)
Gold
(34,363)
—
—
—
(34,363)
(25,430)
—
—
—
(25,430)
(115,189)
—
—
—
(115,189)
(104,507)
—
—
—
(104,507)
Lead
(6,605)
(14,610)
—
—
(21,215)
(5,970)
(13,245)
—
—
(19,215)
(26,374)
(55,042)
—
—
(81,416)
(29,284)
(34,620)
—
—
(63,904)
Copper
—
—
—
—
—
(409)
—
—
—
(409)
(409)
—
—
—
(409)
—
—
—
—
—
Exclusion of Lucky Friday byproduct
credits (8)
—
—
—
—
—
—
—
—
—
—
—
3,943
—
—
3,943
—
1,566
—
—
1,566
Total By-product credits
(65,851)
(22,317)
—
—
(88,168)
(53,935)
(20,291)
—
—
(74,226)
(231,060)
(77,343)
—
—
(308,403)
(217,245)
(47,561)
—
—
(264,806)
Cash Costs, After By-product Credits
$(11,148)
$10,264
$—
$—
$(884)
$1,726
$11,829
$—
$—
$13,555
$(456)
$36,199
$—
$—
$35,743
$24,628
$16,439
$—
$—
$41,067
AISC, After By-product Credits
$4,966
$22,881
$—
$9,437
$37,284
$13,070
$22,994
$—
$10,443
$46,507
$47,899
$76,558
$—
$46,937
$171,394
$69,452
$36,427
$—
$43,650
$149,529
Ounces produced
1,902
1,337
3,239
1,857
1,185
3,042
8,481
4,891
13,372
9,732
3,086
12,818
Exclusion of Lucky Friday ounces produced
(8)
—
—
—
—
0
—
—
(253)
(253)
—
(103)
(103)
Divided by ounces produced
1,902
1,337
3,239
1,857
1,185
3,042
8,481
4,638
13,119
9,732
2,983
12,715
Cash Costs, Before By-product Credits, per
Silver Ounce
$28.76
$24.37
$26.95
$29.97
$27.11
$28.86
$27.19
$24.48
$26.23
$24.85
$21.45
$24.06
By-product credits per ounce
(34.62)
(16.69)
(27.22)
(29.04)
(17.13)
(24.40)
(27.24)
(16.68)
(23.51)
(22.32)
(15.94)
(20.83)
Cash Costs, After By-product Credits, per
Silver Ounce
$(5.86)
$7.68
$(0.27)
$0.93
$9.98
$4.46
$(0.05)
$7.80
$2.72
$2.53
$5.51
$3.23
AISC, Before By-product Credits, per
Silver Ounce
$37.24
$33.81
$38.73
$36.08
$36.53
$39.69
$32.89
$33.18
$36.57
$29.46
$28.15
$32.59
By-product credits per ounce
(34.62)
(16.69)
(27.22)
(29.04)
(17.13)
(24.40)
(27.24)
(16.68)
(23.51)
(22.32)
(15.94)
(20.83)
AISC, After By-product Credits, per Silver
Ounce
$2.62
$17.12
$11.51
$7.04
$19.40
$15.29
$5.65
$16.50
$13.06
$7.14
$12.21
$11.76
In thousands (except per ounce
amounts)
Three Months Ended December
31, 2024
Three Months Ended September
30, 2024
Twelve Months Ended December
31, 2024
Twelve Months Ended December
31, 2023
Casa Berardi
Other (4)
Total Gold and Other
Casa Berardi
Other (4)
Total Gold and Other
Casa Berardi
Other (4)
Total Gold and Other
Casa Berardi
Other (4)
Total Gold and Other
Total cost of sales
$
51,734
$
6,187
$
57,921
$
46,280
$
6,827
$
53,107
$
223,614
$
20,527
$
244,141
$
221,341
$
6,339
$
227,680
Depreciation, depletion and
amortization
(10,777
)
—
(10,777
)
(12,097
)
—
(12,097
)
(72,835
)
—
(72,835
)
(66,037
)
(140
)
(66,177
)
Treatment costs
41
—
41
36
—
36
153
—
153
1,109
—
1,109
Change in product inventory
(96
)
—
(96
)
2,176
—
2,176
3,269
—
3,269
(2,913
)
—
(2,913
)
Reclamation and other costs
(201
)
—
(201
)
(207
)
—
(207
)
(823
)
—
(823
)
(871
)
—
(871
)
Exclusion of Casa Berardi cash costs
(3)
—
—
—
—
(6,827
)
(6,827
)
—
—
—
(2,851
)
—
(2,851
)
Exclusion of Nevada and Other costs
—
(6,187
)
(6,187
)
—
—
—
(20,527
)
(20,527
)
—
(6,199
)
(6,199
)
Cash Costs, Before By-product Credits
(1)
40,701
—
40,701
36,188
—
36,188
153,378
—
153,378
149,778
—
149,778
Reclamation and other costs
201
—
201
207
—
207
823
—
823
871
—
871
Sustaining capital
5,381
—
5,381
6,054
—
6,054
18,963
—
18,963
34,971
—
34,971
AISC, Before By-product Credits (1)
46,283
—
46,283
42,449
—
42,449
173,164
—
173,164
185,620
—
185,620
By-product credits:
Silver
(194
)
—
(194
)
(163
)
—
(163
)
(683
)
—
(683
)
(522
)
—
(522
)
Total By-product credits
(194
)
—
(194
)
(163
)
—
(163
)
(683
)
—
(683
)
(522
)
—
(522
)
Cash Costs, After By-product Credits
$
40,507
$
—
$
40,507
$
36,025
$
—
$
36,025
$
152,695
$
—
$
152,695
$
149,256
$
—
$
149,256
AISC, After By-product Credits
$
46,089
$
—
$
46,089
$
42,286
$
—
$
42,286
$
172,481
$
—
$
172,481
$
185,098
$
—
$
185,098
Divided by gold ounces produced
21
—
21
21
—
21
87
—
87
90
—
90
Cash Costs, Before By-product Credits, per
Gold Ounce
$
1,945
$
—
$
1,945
$
1,762
$
—
$
1,762
$
1,770
$
—
$
1,770
$
1,658
$
—
$
1,658
By-product credits per ounce
(9
)
—
(9
)
(8
)
—
(8
)
(8
)
—
(8
)
(6
)
—
(6
)
Cash Costs, After By-product Credits, per
Gold Ounce
$
1,936
$
—
$
1,936
$
1,754
$
—
$
1,754
$
1,762
$
—
$
1,762
$
1,652
$
—
$
1,652
AISC, Before By-product Credits, per Gold
Ounce
$
2,212
$
—
$
2,212
$
2,067
$
—
$
2,067
$
1,998
$
—
$
1,998
$
2,054
$
—
$
2,054
By-product credits per ounce
(9
)
—
(9
)
(8
)
—
(8
)
(8
)
—
(8
)
(6
)
—
(6
)
AISC, After By-product Credits, per Gold
Ounce
$
2,203
$
—
$
2,203
$
2,059
$
—
$
2,059
$
1,990
$
—
$
1,990
$
2,048
$
—
$
2,048
In thousands (except per ounce
amounts)
Three Months Ended December
31, 2024
Three Months Ended September
30, 2024
Twelve Months Ended December
31, 2024
Twelve Months Ended December
31, 2023 (5)
Total Silver
Total Gold and Other
Total
Total Silver
Total Gold and Other
Total
Total Silver
Total Gold and Other
Total
Total Silver
Total Gold and Other
Total
Total cost of sales
$
123,400
$
57,921
$
181,321
$
132,692
$
53,107
$
185,799
$
487,574
$
244,141
$
731,715
$
379,598
$
227,680
$
607,278
Depreciation, depletion and
amortization
(29,079
)
(10,777
)
(39,856
)
(28,847
)
(12,097
)
(40,944
)
(110,635
)
(72,835
)
(183,470
)
$
(82,597
)
(66,177
)
(148,774
)
Treatment costs
9,348
41
9,389
9,612
36
9,648
40,722
153
40,875
$
53,038
1,109
54,147
Change in product inventory
(1,345
)
(96
)
(1,441
)
(8,019
)
2,176
(5,843
)
(3,768
)
3,269
(499
)
$
(9,430
)
(2,913
)
(12,343
)
Reclamation and other costs
(3,271
)
(201
)
(3,472
)
(2,066
)
(207
)
(2,273
)
(7,287
)
(823
)
(8,110
)
$
(1,574
)
(871
)
(2,445
)
Exclusion of Lucky Friday cash costs
(8)
—
—
—
—
(6,827
)
(6,827
)
(3,634
)
—
(3,634
)
(851
)
—
(851
)
Exclusion of Keno Hill cash costs (6)
(11,769
)
—
(11,769
)
(15,591
)
—
(15,591
)
(58,826
)
—
(58,826
)
(32,311
)
—
(32,311
)
Exclusion of Casa Berardi cash costs
(3)
—
—
—
—
—
—
—
—
—
—
(2,851
)
(2,851
)
Exclusion of Nevada and Other costs
—
(6,187
)
(6,187
)
—
—
—
—
(20,527
)
(20,527
)
—
(6,199
)
(6,199
)
Cash Costs, Before By-product Credits
(1)
87,284
40,701
127,985
87,781
36,188
123,969
344,146
153,378
497,524
305,873
149,778
455,651
Reclamation and other costs
968
201
1,169
1,089
207
1,296
4,032
823
4,855
3,560
871
4,431
Sustaining capital
28,152
5,381
33,533
21,462
6,054
27,516
91,610
18,963
110,573
81,882
34,971
116,853
Exclusion of Lucky Friday sustaining costs
(8)
—
—
—
—
—
—
(5,396
)
—
(5,396
)
(19,702
)
—
(19,702
)
General and administrative
9,048
—
9,048
10,401
—
10,401
45,405
—
45,405
42,722
—
42,722
AISC, Before By-product Credits (1)
125,452
46,283
171,735
120,733
42,449
163,182
479,797
173,164
652,961
414,335
185,620
599,955
By-product credits:
Zinc
(32,590
)
—
(32,590
)
(29,172
)
—
(29,172
)
(115,332
)
—
(115,332
)
(97,961
)
—
(97,961
)
Gold
(34,363
)
—
(34,363
)
(25,430
)
—
(25,430
)
(115,189
)
—
(115,189
)
(104,507
)
—
(104,507
)
Lead
(21,215
)
—
(21,215
)
(19,215
)
—
(19,215
)
(81,416
)
—
(81,416
)
(63,904
)
—
(63,904
)
Silver
—
(194
)
(194
)
—
(163
)
(163
)
—
(683
)
(683
)
—
(522
)
(522
)
Copper
—
—
—
(409
)
—
(409
)
(409
)
—
(409
)
—
—
—
Exclusion of Lucky Friday by-product
credits (8)
—
—
—
—
—
—
3,943
—
3,943
1,566
—
1,566
Total By-product credits
(88,168
)
(194
)
(88,362
)
(74,226
)
(163
)
(74,389
)
(308,403
)
(683
)
(309,086
)
(264,806
)
(522
)
(265,328
)
Cash Costs, After By-product Credits
$
(884
)
$
40,507
$
39,623
$
13,555
$
36,025
$
49,580
$
35,743
$
152,695
$
188,438
$
41,067
$
149,256
$
190,323
AISC, After By-product Credits
$
37,284
$
46,089
$
83,373
$
46,507
$
42,286
$
88,793
$
171,394
$
172,481
$
343,875
$
149,529
$
185,098
$
334,627
Ounces produced
3,239
21
3,042
21
13,372
87
12,818
90
Exclusion of Lucky Friday ounces produced
(8)
—
—
—
—
(253
)
—
(103
)
—
Divided by ounces produced
3,239
21
3,042
21
13,119
87
12,715
90
Cash Costs, Before By-product Credits, per
Ounce
$
26.95
$
1,945
$
28.86
$
1,762
$
26.23
$
1,770
$
24.06
$
1,658
By-product credits per ounce
(27.22
)
(9
)
(24.40
)
(8
)
(23.51
)
(8
)
(20.83
)
(6
)
Cash Costs, After By-product Credits, per
Ounce
$
(0.27
)
$
1,936
$
4.46
$
1,754
$
2.72
$
1,762
$
3.23
$
1,652
AISC, Before By-product Credits, per
Ounce
$
38.73
$
2,212
$
39.69
$
2,067
$
36.57
$
1,998
$
32.59
$
2,054
By-product credits per ounce
(27.22
)
(9
)
(24.40
)
(8
)
(23.51
)
(8
)
(20.83
)
(6
)
AISC, After By-product Credits, per
Ounce
$
11.51
2,203
$
15.29
2,059
$
13.06
1,990
$
11.76
2,048
In thousands (except per ounce
amounts)
Three Months Ended June 30,
2024 (5)
Three Months Ended March 31,
2024 (5)
Three Months Ended December
31, 2023 (5)
Greens Creek
Lucky Friday
Keno Hill
Corporate (2)
Total Silver
Greens Creek
Lucky Friday
Keno Hill (4)
Corporate (2)
Total Silver
Greens Creek
Lucky Friday
Keno Hill (4)
Corporate (2)
Total Silver
Total cost of sales
$
56,786
$
37,523
$
28,950
$
—
$
123,259
$
69,857
$
27,519
$
10,847
$
—
$
108,223
$
70,231
$
3,117
$
17,936
$
—
$
91,284
Depreciation, depletion and
amortization
(11,316
)
(10,708
)
(4,729
)
—
(26,753
)
(14,443
)
(7,911
)
(3,602
)
—
(25,956
)
(15,438
)
(584
)
(2,068
)
—
(18,090
)
Treatment costs
6,069
2,746
—
—
8,815
9,724
3,223
—
—
12,947
9,873
149
(76
)
—
9,946
Change in product inventory
7,296
(115
)
—
—
7,181
(2,196
)
611
—
—
(1,585
)
(1,787
)
(1,851
)
—
—
(3,638
)
Reclamation and other costs
(882
)
(311
)
—
—
(1,193
)
(655
)
(102
)
—
—
(757
)
(534
)
—
—
—
(534
)
Exclusion of Lucky Friday cash costs
(5)
—
—
—
—
—
—
(3,634
)
—
—
(3,634
)
—
(831
)
—
—
(831
)
Exclusion of Keno Hill cash costs (4)
—
—
(24,221
)
—
(24,221
)
—
—
(7,245
)
—
(7,245
)
—
—
(15,792
)
—
(15,792
)
Cash Costs, Before By-product Credits
(1)
57,953
29,135
—
—
87,088
62,287
19,706
—
—
81,993
62,345
—
—
—
62,345
Reclamation and other costs
785
183
—
—
968
785
222
—
—
1,007
723
—
—
—
723
Sustaining capital
10,911
9,517
—
1,035
21,463
8,416
12,051
—
66
20,533
15,249
14,768
—
97
30,114
Exclusion of Lucky Friday sustaining costs
(5)
—
—
—
—
—
—
(5,396
)
—
—
(5,396
)
—
(14,768
)
—
(14,768
)
General and administrative
—
—
—
14,740
14,740
—
—
—
11,216
11,216
—
—
—
12,273
12,273
AISC, Before By-product Credits (1)
69,649
38,835
—
15,775
124,259
71,488
26,583
—
11,282
109,353
78,317
—
—
12,370
90,687
By-product credits:
Zinc
(21,873
)
(6,706
)
—
—
(28,579
)
(20,206
)
(4,785
)
—
—
(24,991
)
(18,499
)
(223
)
—
—
(18,722
)
Gold
(28,844
)
—
—
—
(28,844
)
(26,551
)
—
—
—
(26,551
)
(25,418
)
—
—
—
(25,418
)
Lead
(6,818
)
(15,466
)
—
—
(22,284
)
(6,980
)
(11,720
)
—
—
(18,700
)
(7,282
)
(667
)
—
—
(7,949
)
Copper
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
Exclusion of Lucky Friday byproduct
credits (5)
—
—
—
—
—
—
3,943
—
—
3,943
—
890
890
Total By-product credits
(57,535
)
(22,172
)
—
—
(79,707
)
(53,737
)
(12,562
)
—
—
(66,299
)
(51,199
)
—
—
—
(51,199
)
Cash Costs, After By-product Credits
$
418
$
6,963
$
—
$
—
$
7,381
$
8,550
$
7,144
$
—
$
—
$
15,694
$
11,146
$
—
$
—
$
—
$
11,146
AISC, After By-product Credits
$
12,114
$
16,663
$
—
$
15,775
$
44,552
$
17,751
$
14,021
$
—
$
11,282
$
43,054
$
27,118
$
—
$
—
$
12,370
$
39,488
Ounces produced
2,244
1,308
3,552
2,479
1,061
3,540
2,260
62
2,322
Exclusion of Lucky Friday ounces produced
(5)
—
—
—
—
(253
)
(253
)
—
(62
)
(62
)
Divided by ounces produced
2,244
1,308
3,552
2,479
808
3,287
2,260
—
2,260
Cash Costs, Before By-product Credits, per
Silver Ounce
$
25.83
$
22.27
$
24.52
$
25.13
$
24.41
$
24.95
$
27.59
N/A
$
27.59
By-product credits per ounce
(25.64
)
(16.95
)
(22.44
)
(21.68
)
(15.56
)
(20.17
)
(22.65
)
N/A
(22.65
)
Cash Costs, After By-product Credits, per
Silver Ounce
$
0.19
$
5.32
$
2.08
$
3.45
$
8.85
$
4.78
$
4.94
N/A
$
4.94
AISC, Before By-product Credits, per
Silver Ounce
$
31.04
$
29.69
$
34.98
$
28.84
$
32.92
$
33.27
$
34.65
N/A
$
40.13
By-product credits per ounce
(25.64
)
(16.95
)
(22.44
)
(21.68
)
(15.56
)
(20.17
)
(22.65
)
N/A
(22.65
)
AISC, After By-product Credits, per Silver
Ounce
$
5.40
$
12.74
$
12.54
$
7.16
$
17.36
$
13.10
$
12.00
N/A
$
17.48
In thousands (except per ounce
amounts)
Three Months Ended June 30,
2024 (5)
Three Months Ended March 31,
2024 (5)
Three Months Ended December
31, 2023 (5)
Casa Berardi
Other (4)
Total Gold and Other
Casa Berardi
Other (4)
Total Gold and Other
Casa Berardi
Other (4)
Total Gold and Other
Total cost of sales
$
67,340
$
3,628
$
70,968
$
58,260
$
3,885
$
62,145
$
58,945
$
3,596
$
62,541
Depreciation, depletion and
amortization
(27,010
)
—
(27,010
)
(22,951
)
—
(22,951
)
(22,749
)
2
(22,747
)
Treatment costs
52
—
52
24
—
24
37
—
37
Change in product inventory
(550
)
—
(550
)
1,739
—
1,739
2,432
—
2,432
Reclamation and other costs
(206
)
—
(206
)
(209
)
—
(209
)
(216
)
—
(216
)
Exclusion of Casa Berardi cash costs
—
—
—
—
—
—
—
—
—
Exclusion of Nevada and Other costs
—
(3,628
)
(3,628
)
—
(3,885
)
(3,885
)
—
(3,598
)
(3,598
)
Cash Costs, Before By-product Credits
(1)
39,626
—
39,626
36,863
—
36,863
38,449
38,449
Reclamation and other costs
206
206
209
—
209
216
—
216
Sustaining capital
2,667
—
2,667
4,861
—
4,861
5,796
—
5,796
AISC, Before By-product Credits (1)
42,499
—
42,499
41,933
—
41,933
44,461
44,461
By-product credits:
Silver
(183
)
—
(183
)
(143
)
—
(143
)
(132
)
—
(132
)
Total By-product credits
(183
)
—
(183
)
(143
)
—
(143
)
(132
)
—
(132
)
Cash Costs, After By-product Credits
$
39,443
$
—
$
39,443
$
36,720
$
—
$
36,720
$
38,317
$
38,317
AISC, After By-product Credits
$
42,316
$
—
$
42,316
$
41,790
$
—
$
41,790
$
44,329
$
44,329
Divided by gold ounces produced
23
—
23
22
—
22
23
—
23
Cash Costs, Before By-product Credits, per
Gold Ounce
$
1,709
$
—
$
1,709
$
1,675
$
—
$
1,675
$
1,708
$
—
$
1,708
By-product credits per ounce
(8
)
—
(8
)
(6
)
—
(6
)
(6
)
—
(6
)
Cash Costs, After By-product Credits, per
Gold Ounce
$
1,701
$
—
$
1,701
$
1,669
$
—
$
1,669
$
1,702
$
—
$
1,702
AISC, Before By-product Credits, per Gold
Ounce
$
1,833
$
—
$
1,833
$
1,905
$
—
$
1,905
$
1,975
$
—
$
1,975
By-product credits per ounce
(8
)
—
(8
)
(6
)
—
(6
)
(6
)
—
(6
)
AISC, After By-product Credits, per Gold
Ounce
$
1,825
$
—
$
1,825
$
1,899
$
—
$
1,899
$
1,969
$
—
$
1,969
In thousands (except per ounce
amounts)
Three Months Ended June 30,
2024 (5)
Three Months Ended March 31,
2024 (5)
Three Months Ended December
31, 2023 (5)
Total Silver
Total Gold and Other
Total
Total Silver
Total Gold and Other
Total
Total Silver
Total Gold and Other
Total
Total cost of sales
$
123,259
$
70,968
$
194,227
$
108,223
$
62,145
$
170,368
$
91,284
$
62,541
$
153,825
Depreciation, depletion and
amortization
(26,753
)
(27,010
)
(53,763
)
$
(25,956
)
(22,951
)
(48,907
)
(18,090
)
(22,747
)
(40,837
)
Treatment costs
8,815
52
8,867
$
12,947
24
12,971
9,946
37
9,983
Change in product inventory
7,181
(550
)
6,631
$
(1,585
)
1,739
154
(3,638
)
2,432
(1,206
)
Reclamation and other costs
(1,193
)
(206
)
(1,399
)
$
(757
)
(209
)
(966
)
(534
)
(216
)
(750
)
Exclusion of Keno Hill cash costs
(24,221
)
—
(24,221
)
(7,245
)
(7,245
)
(15,792
)
—
(15,792
)
Exclusion of Lucky Friday cash costs
—
—
—
(3,634
)
—
(3,634
)
(831
)
—
(831
)
Exclusion of Casa Berardi cash costs
—
—
—
—
—
—
—
—
—
Exclusion of Nevada and Other costs
—
(3,628
)
(3,628
)
—
(3,885
)
(3,885
)
—
(3,598
)
(3,598
)
Cash Costs, Before By-product Credits
(1)
87,088
39,626
126,714
81,993
36,863
118,856
62,345
38,449
100,794
Reclamation and other costs
968
206
1,174
1,007
209
1,216
723
216
939
Sustaining capital
21,463
2,667
24,130
20,533
4,861
25,394
30,114
5,796
35,910
Exclusion of Lucky Friday sustaining costs
(5)
—
—
—
(5,396
)
(5,396
)
(14,768
)
—
(14,768
)
General and administrative
14,740
—
14,740
11,216
11,216
12,273
—
12,273
AISC, Before By-product Credits (1)
124,259
42,499
166,758
109,353
41,933
151,286
90,687
44,461
135,148
By-product credits:
Zinc
(28,579
)
—
(28,579
)
(24,991
)
—
(24,991
)
(18,722
)
—
(18,722
)
Gold
(28,844
)
—
(28,844
)
(26,551
)
—
(26,551
)
(25,418
)
—
(25,418
)
Lead
(22,284
)
—
(22,284
)
(18,700
)
—
(18,700
)
(7,949
)
—
(7,949
)
Copper
—
—
—
—
—
—
—
—
—
Silver
—
(183
)
(183
)
—
(143
)
(143
)
—
(132
)
(132
)
Exclusion of Lucky Friday byproduct
credits (5)
—
—
—
3,943
—
3,943
890
—
890
Total By-product credits
(79,707
)
(183
)
(79,890
)
(66,299
)
(143
)
(66,442
)
(51,199
)
(132
)
(51,331
)
Cash Costs, After By-product Credits
$
7,381
$
39,443
$
46,824
$
15,694
$
36,720
$
52,414
$
11,146
$
38,317
$
49,463
AISC, After By-product Credits
$
44,552
$
42,316
$
86,868
$
43,054
$
41,790
$
84,844
$
39,488
$
44,329
$
83,817
Divided by ounces produced
3,552
23
3,287
22
2,260
23
Cash Costs, Before By-product Credits, per
Ounce
$
24.52
$
1,709
$
24.95
1,675
$
27.59
$
1,708
By-product credits per ounce
(22.44
)
(8
)
(20.17
)
(6
)
(22.65
)
(6
)
Cash Costs, After By-product Credits, per
Ounce
$
2.08
$
1,701
$
4.78
$
1,669
$
4.94
$
1,702
AISC, Before By-product Credits, per
Ounce
$
34.98
$
1,833
$
33.27
$
1,905
$
40.13
$
1,975
By-product credits per ounce
(22.44
)
(8
)
(20.17
)
(6
)
(22.65
)
(6
)
AISC, After By-product Credits, per
Ounce
$
12.54
$
1,825
$
13.10
$
1,899
$
17.48
$
1,969
(1)
Includes all direct and indirect operating costs related to the
physical activities of producing metals, including mining,
processing and other plant costs, third-party refining and
marketing expense, on-site general and administrative costs and
royalties, before by-product revenues earned from all metals other
than the primary metal produced at each operation. AISC, Before
By-product Credits also includes reclamation and sustaining capital
costs.
(2)
AISC, Before By-product Credits for our consolidated silver
properties includes corporate costs for general and administrative
expense and sustaining capital.
(3)
During the three months ended March 31, 2023, the Company
completed the necessary studies to conclude usage of the F-160 pit
as a tailings storage facility after mining is complete. As a
result, a portion of the mining costs have been excluded from Cash
Costs, Before By-product Credits and AISC, Before By-product
Credits.
(4)
Other includes $20.5 million of sales and total cost of sales
for the year ended December 31, 2024 and $5.3 million of sales and
total cost of sales for the year ended December 31, 2023, related
to the environmental services business acquired as part of the
Alexco acquisition.
(5)
Prior year presentation has been adjusted to conform with
current year presentation to eliminate exploration costs from the
calculation of AISC, Before By-product Credits as exploration is an
activity directed at the Corporate level to find new mineral
reserve and resource deposits, and therefore we believe it is
inappropriate to include exploration costs in the calculation of
AISC, Before By-product Credits for a specific mining
operation.
(6)
Keno Hill is in the ramp-up phase of production and is excluded
from the calculation of total cost of sales, Cash Costs, Before
By-product Credits, Cash Costs, After By-product Credits, AISC,
Before By-product Credits, and AISC, After By-product Credits.
(7)
Casa Berardi operations were suspended in June 2023 in response
to the directive of the Quebec Ministry of Natural Resources and
Forests as a result of fires in the region. Suspension costs
amounted to $2.2 million for the year ended December 31, 2023, and
are excluded from the calculation of total cost of sales, Cash
Costs, Before By-product Credits, Cash Costs, After By-product
Credits, AISC, Before By-product Credits, and AISC, After
By-product Credits.
(8)
Lucky Friday operations were suspended in August 2023 following
the underground fire in the #2 shaft secondary egress. The portion
of cash costs, sustaining costs, by-product credits, and silver
production incurred since the suspension are excluded from the
calculation of total cost of sales, Cash Costs, Before By-product
Credits, Cash Costs, After By-product Credits, AISC, Before
By-product Credits, and AISC, After By-product Credits.
2025 Guidance, Previous and Current Estimates: Reconciliation
of Cost of Sales to Non-GAAP Measures
In thousands (except per ounce
amounts)
Estimate for Twelve Months Ended
December 31, 2025
Greens Creek
Lucky Friday
Corporate(2)
Total Silver
Casa Berardi
Total Gold
Cost of sales and other direct production
costs and depreciation, depletion and amortization
$
289,000
$
135,000
$
—
$
424,000
$
165,500
$
165,500
Depreciation, depletion and
amortization
(59,000
)
(36,400
)
—
(95,400
)
(37,700
)
(37,700
)
Treatment costs
14,000
10,000
—
24,000
—
—
Change in product inventory
—
—
—
—
—
—
Other costs
1,000
300
—
1,300
(1,400
)
(1,400
)
Cash Costs, Before By-product Credits
(1)
245,000
108,900
—
353,900
—
126,400
—
126,400
Reclamation and other costs
3,000
1,000
—
4,000
1,700
1,700
Sustaining capital
54,000
62,000
5,600
121,600
17,500
17,500
General and administrative
—
—
50,000
50,000
—
—
AISC, Before By-product Credits (1)
302,000
171,900
55,600
—
529,500
—
145,600
—
145,600
By-product credits:
Zinc
(96,000
)
(33,000
)
—
(129,000
)
—
—
Gold
(106,000
)
—
—
(106,000
)
—
—
Lead
(23,500
)
(55,000
)
—
(78,500
)
—
—
Silver
—
—
—
—
(500
)
(500
)
Total By-product credits
(225,500
)
(88,000
)
—
(313,500
)
(500
)
(500
)
Cash Costs, After By-product Credits
$
19,500
$
20,900
$
—
$
40,400
$
125,900
$
125,900
AISC, After By-product Credits
$
76,500
$
83,900
$
55,600
$
216,000
$
145,100
$
145,100
Divided by silver ounces produced
8,450
4,900
13,350
79
79
Cash Costs, Before By-product Credits, per
Silver Ounce
$
28.99
$
22.22
$
26.51
$
1,600
$
1,600
By-product credits per silver ounce
(26.69
)
(17.96
)
(23.48
)
(6
)
(6
)
Cash Costs, After By-product Credits, per
Silver Ounce
$
2.30
$
4.26
$
3.03
$
1,594
$
1,594
AISC, Before By-product Credits, per
Silver Ounce
$
35.74
$
35.08
$
39.66
$
1,843
$
1,843
By-product credits per silver ounce
(26.69
)
(17.96
)
(23.48
)
(6
)
(6
)
AISC, After By-product Credits, per Silver
Ounce
$
9.05
$
17.12
$
16.18
$
1,837
$
1,837
(1)
Includes all direct and indirect operating costs related to the
physical activities of producing metals, including mining,
processing and other plant costs, third-party refining and
marketing expense, on-site general and administrative costs and
royalties, before by-product revenues earned from all metals other
than the primary metal produced at each operation. AISC, Before
By-product Credits also includes reclamation and sustaining capital
costs.
(2)
AISC, Before By-product Credits for our consolidated silver
properties includes corporate costs for general and administrative
expense, and sustaining capital.
Reconciliation of Net Income (Loss ) (GAAP) and Debt (GAAP)
to Adjusted EBITDA (non-GAAP) and Net Debt (non-GAAP)
This release refers to the non-GAAP measures of adjusted
earnings before interest, taxes, depreciation and amortization
("Adjusted EBITDA"), which is a measure of our operating
performance, and net debt to adjusted EBITDA for the last 12 months
(or "LTM adjusted EBITDA"), which is a measure of our ability to
service our debt. Adjusted EBITDA is calculated as net income
(loss) before the following items: interest expense, income and
mining taxes, depreciation, depletion, and amortization expense,
ramp-up and suspension costs, gains and losses on disposition of
assets, foreign exchange gains and losses, write down of property,
plant and equipment, fair value adjustments, net, interest and
other income, provisions for environmental matters, stock-based
compensation, provisional price gains and losses, monetization of
zinc and lead hedges and inventory adjustments. Net debt is
calculated as total debt, which consists of the liability balances
for our Senior Notes, capital leases, and other notes payable, less
the total of our cash and cash equivalents and short-term
investments. Management believes that, when presented in
conjunction with comparable GAAP measures, adjusted EBITDA and net
debt to LTM adjusted EBITDA are useful to investors in evaluating
our operating performance and ability to meet our debt obligations.
The following table reconciles net income (loss) and debt to
adjusted EBITDA and net debt:
Dollars are in thousands
4Q-2024
3Q-2024
2Q-2024
1Q-2024
4Q-2023
FY 2024
FY 2023
Net income (loss)
$
11,924
$
1,761
$
27,870
$
(5,753
)
$
(42,935
)
$
35,802
$
(84,217
)
Interest expense
13,784
10,901
12,505
12,644
12,133
49,834
43,319
Income and mining tax provision
(benefit)
8,069
11,450
9,080
1,815
(5,682
)
30,414
1,222
Depreciation, depletion and
amortization
41,206
44,118
53,921
51,226
51,967
190,471
163,672
Ramp-up and suspension costs
7,492
11,295
4,272
10,926
23,814
33,985
72,498
(Gain) loss on disposition of properties,
plants, equipment, and mineral interests
(86
)
(31
)
(1,196
)
69
1,043
(1,244
)
849
Foreign exchange (gain) loss
(4,143
)
3,246
(2,673
)
(3,982
)
4,244
(7,552
)
3,810
Write down of property, plant and
equipment
110
14,464
—
—
—
14,574
—
Fair value adjustments, net
9,008
(3,654
)
(5,002
)
1,852
(8,699
)
2,204
(2,925
)
Provisional price (gains) losses
(3,330
)
(5,080
)
(10,937
)
(3,533
)
(5,930
)
(22,880
)
(18,230
)
Provision for closed operations and
environmental matters
3,162
1,542
1,153
986
1,164
6,843
7,575
Stock-based compensation
2,258
2,255
2,982
1,164
1,476
8,659
6,598
Inventory adjustments
1,633
178
2,225
7,671
4,487
11,707
20,819
Monetization of zinc and lead hedges
(4,025
)
(2,356
)
(2,125
)
(1,977
)
(3,753
)
(10,483
)
(4,447
)
Other
(504
)
(1,230
)
(1,180
)
(1,511
)
(422
)
(4,425
)
(1,744
)
Adjusted EBITDA
$
86,558
$
88,859
$
90,895
$
71,597
$
32,907
$
337,909
$
208,799
Total debt
$
550,713
$
662,815
Less: Cash and cash equivalents
26,868
106,374
Net debt
$
523,845
$
556,441
Net debt/LTM adjusted EBITDA
(non-GAAP)
1.6
2.7
Reconciliation of Net Income (Loss) Applicable to Common
Stockholders (GAAP) to Adjusted Net income (Loss) Applicable to
Common Shareholders (non-GAAP)
This release refers to a non-GAAP measure of adjusted net income
(loss) applicable to common stockholders and adjusted net income
(loss) per share, which are indicators of our performance. They
exclude certain impacts which are of a nature which we believe are
not reflective of our underlying performance. Management believes
that adjusted net income (loss) per common share provides investors
with the ability to better evaluate our underlying operating
performance.
Dollars are in thousands
4Q-2024
3Q-2024
2Q-2024
1Q-2024
4Q-2023
FY-2024
FY-2023
Net loss applicable to common
stockholders
$
11,786
$
1,623
$
27,732
$
(5,891
)
$
(43,073
)
$
35,250
$
(84,769
)
Adjusted for items below:
Fair value adjustments, net
9,008
(3,654
)
(5,002
)
1,852
(8,699
)
2,204
(2,925
)
Provisional pricing (gains) losses
(3,330
)
(5,080
)
(10,937
)
(3,533
)
(5,930
)
(22,880
)
(18,230
)
Environmental accruals
1,881
—
—
—
200
1,881
2,952
Write down of property, plant and
equipment
110
14,464
—
—
—
14,574
—
Foreign exchange loss (gain)
(4,143
)
3,246
(2,673
)
(3,982
)
4,244
(7,552
)
3,810
Ramp-up and suspension costs
9,567
13,679
5,538
14,523
27,568
43,307
76,252
(Gain) loss on disposition of properties,
plants, equipment and mineral interests
(86
)
(31
)
(1,196
)
69
1,043
(1,244
)
849
Inventory adjustments
1,633
178
2,225
7,671
4,487
11,707
20,819
Monetization of zinc hedges
(4,025
)
(2,356
)
(2,125
)
(1,977
)
(3,753
)
(10,483
)
(4,447
)
Other
664
—
—
—
—
664
—
Adjusted (loss) income applicable to
common stockholders
$
23,065
$
22,069
$
13,562
$
8,732
$
(23,913
)
$
67,428
$
(5,689
)
Weighted average shares - basic
628,025
621,921
617,106
616,199
610,547
620,848
605,668
Weighted average shares - diluted
631,442
625,739
622,206
616,199
610,547
622,535
605,668
Basic adjusted net (loss) income per
common stock (in cents)
0.04
0.03
0.02
0.01
(0.04
)
0.11
(0.01
)
Diluted adjusted net (loss) income per
common stock (in cents)
0.04
0.03
0.02
0.01
(0.04
)
0.11
(0.01
)
Reconciliation of Cash Provided by Operating Activities
(GAAP) to Free Cash Flow (non-GAAP)
This release refers to a non-GAAP measure of free cash flow,
calculated as cash provided by operating activities, less additions
to properties, plants, equipment and mineral interests. Management
believes that, when presented in conjunction with comparable GAAP
measures, free cash flow is useful to investors in evaluating our
operating performance. The following table reconciles cash provided
by operating activities to free cash flow:
Dollars are in thousands
Three Months Ended December
31,
Twelve Months Ended December
31,
2024
2023
2024
2023
Cash provided by operating activities
$
67,470
$
884
$
218,277
$
75,499
Less: Additions to properties, plants
equipment and mineral interests
$
(60,784
)
$
(62,622
)
$
(214,492
)
$
(223,887
)
Free cash flow
$
6,686
$
(61,738
)
$
3,785
$
(148,388
)
Free cash flow is a non-GAAP measure calculated as cash provided
by operating activities less additions to properties, plants and
equipment. Cash provided by operating activities for our silver
operations, the Greens Creek and Lucky Friday operating segments,
excludes exploration and pre-development expense, as it is a
discretionary expenditure and not a component of the mines’
operating performance.
Dollars are in thousands
Total Silver
Operations
Years Ended December 31,
2024
2023
2022
2021
Cash provided by operating activities
$
992,487
$
317,861
$
214,883
$
188,434
$
271,309
Exploration
$
26,342
$
8,016
$
7,815
$
5,920
$
4,591
Less: Additions to properties, plants
equipment and mineral interests
$
(347,924
)
$
(97,387
)
$
(108,879
)
$
(87,890
)
$
(53,768
)
Free cash flow
$
670,905
$
228,490
$
113,819
$
106,464
$
222,132
Table A
Hecla Mining Company -
Reserves and Resources – 12/31/2024 (1)
Proven Reserves (1)
Silver
Gold
Lead
Zinc
Silver
Gold
Lead
Zinc
Asset
Location
Ownership
Tons (000)
(oz/ton)
(oz/ton)
%
%
(000 oz)
(000 oz)
Tons
Tons
Greens Creek (2,3)
United States
100.0%
9
7.6
0.07
2.4
6.5
70
1
220
600
Lucky Friday (2,4)
United States
100.0%
5,285
11.9
-
7.6
3.6
62,825
-
400,400
189,860
Casa Berardi Underground (2,5)
Canada
100.0%
87
-
0.15
-
-
-
13
-
-
Casa Berardi Open Pit (2,5)
Canada
100.0%
4,958
-
0.08
-
-
-
415
-
-
Keno Hill (2,6)
Canada
100.0%
13
28.1
-
3.0
1.6
364
-
380
200
Total
10,352
63,259
429
401,000
190,660
Probable Reserves (7)
Silver
Gold
Lead
Zinc
Silver
Gold
Lead
Zinc
Asset
Location
Ownership
Tons (000)
(oz/ton)
(oz/ton)
%
%
(000 oz)
(000 oz)
(Tons)
(Tons)
Greens Creek (2,3)
United States
100.0%
10,438
9.9
0.08
2.3
6.2
103,641
864
240,450
645,410
Lucky Friday (2,4)
United States
100.0%
790
11.4
-
7.6
3.1
9,011
-
60,210
24,620
Casa Berardi Underground (2,5)
Canada
100.0%
391
-
0.15
-
-
-
59
-
-
Casa Berardi Open Pit (2,5)
Canada
100.0%
10,457
-
0.08
-
-
-
804
-
-
Keno Hill (2,6)
Canada
100.0%
2,630
24.3
0.01
2.4
2.4
63,914
17
63,440
62,790
Total
24,706
176,566
1,744
364,100
732,820
Proven and Probable Reserves
(1,7)
Silver
Gold
Lead
Zinc
Silver
Gold
Lead
Zinc
Asset
Location
Ownership
Tons (000)
(oz/ton)
(oz/ton)
%
%
(000 oz)
(000 oz)
(Tons)
(Tons)
Greens Creek (2,3)
United States
100.0%
10,447
9.9
0.08
2.3
6.2
103,711
865
240,670
646,010
Lucky Friday (2,4)
United States
100.0%
6,075
11.8
-
7.6
3.5
71,836
-
460,610
214,480
Casa Berardi Underground (2,5)
Canada
100.0%
478
-
0.15
-
-
-
72
-
-
Casa Berardi Open Pit (2,5)
Canada
100.0%
15,415
-
0.08
-
-
-
1,219
-
-
Keno Hill (2,6)
Canada
100.0%
2,643
24.3
0.01
2.4
2.4
64,278
17
63,820
62,990
Total
35,058
239,825
2,173
765,100
923,480
(1)
The term “reserve” means an estimate of
tonnage and grade or quality of indicated and measured mineral
resources that, in the opinion of the qualified person, can be the
basis of an economically viable project.
More specifically, it is the economically
mineable part of a measured or indicated mineral resource, which
includes diluting materials and allowances for losses that may
occur when the material is mined or extracted.
The term “proven reserves” means the
economically mineable part of a measured mineral resource and can
only result from conversion of a measured mineral resource. See
footnotes 8 and 9 below.
(2)
Mineral reserves are based on $22/oz
silver, $1,900/oz gold, $0.90/lb lead, $1.15/lb zinc, unless
otherwise stated. All Mineral Reserves are reported in-situ with
estimates of mining dilution and mining loss.
(3)
The reserve NSR cut-off values for Greens
Creek is $230/ton for all zones; metallurgical recoveries (actual
2024): 79% for silver, 72% for gold, 81% for lead, and 89% for
zinc.
(4)
The reserve NSR cut-off values for Lucky
Friday are $225/ton for the 30 Vein and $236/ton for the
Intermediate Veins; metallurgical recoveries (actual 2024): 94% for
silver, 94% for lead, and 86% for zinc
(5)
The average reserve cut-off grades at Casa
Berardi are 0.12 oz/ton gold (4.1 g/tonne) underground and 0.03
oz/ton gold (1.1 g/tonne) for open pit. Metallurgical recovery
(actual 2024): 85% for gold; US$/CAD$ exchange rate: 1:1.35.
(6)
The reserve NSR cut-off value at Keno Hill
is $235.20/ton (CAD$350/tonne), Metallurgical recovery (actual
2024): 97% for silver, 95% for lead, 87% for zinc; US$/CAD$
exchange rate: 1:1.35
(7)
The term “probable reserves” means the
economically mineable part of an indicated and, in some cases, a
measured mineral resource. See footnotes 9 and 10 below.
Totals may not represent the sum of parts
due to rounding
Mineral Resources - 12/31/2024
(8)
Measured Resources (9)
Silver
Gold
Lead
Zinc
Copper
Silver
Gold
Lead
Zinc
Copper
Asset
Location
Ownership
Tons (000)
(oz/ton)
(oz/ton)
%
%
%
(000 oz)
(000 oz)
(Tons)
(Tons)
(Tons)
Greens Creek (12,13)
United States
100.0%
-
-
-
-
-
-
-
-
-
-
-
Lucky Friday (12,14)
United States
100.0%
3,781
8.7
-
5.8
2.6
-
32,795
-
217,490
99,840
-
Casa Berardi Underground (12,15)
Canada
100.0%
1,486
-
0.20
-
-
-
-
300
-
-
-
Casa Berardi Open Pit (12,15)
Canada
100.0%
84
-
0.03
-
-
-
-
3
-
-
-
Keno Hill (12,16)
Canada
100.0%
-
-
-
-
-
-
-
-
-
-
-
San Sebastian - Oxide(17)
Mexico
100.0%
-
-
-
-
-
-
-
-
-
-
-
San Sebastian - Sulfide (17)
Mexico
100.0%
-
-
-
-
-
-
-
-
-
-
-
Fire Creek (18,19)
United States
100.0%
-
-
-
-
-
-
-
-
-
-
-
Hollister (18,20)
United States
100.0%
19
4.7
0.57
-
-
-
88
11
-
-
-
Midas (18,21)
United States
100.0%
2
7.1
0.62
-
-
-
15
1
-
-
-
Heva (22)
Canada
100.0%
-
-
-
-
-
-
-
-
-
-
-
Hosco (22)
Canada
100.0%
-
-
-
-
-
-
-
-
-
-
-
Star (12,23)
United States
100.0%
-
-
-
-
-
-
-
-
-
-
-
Rackla - Tiger Open Pit (29)
Canada
100.0%
881
-
0.09
-
-
-
-
75
-
-
-
Rackla - Tiger Underground (29)
Canada
100.0%
32
-
0.06
-
-
-
-
2
-
-
-
Rackla - Osiris Open Pit (30)
Canada
100.0%
-
-
-
-
-
-
-
-
-
-
-
Rackla - Osiris Underground (30)
Canada
100.0%
-
-
-
-
-
-
-
-
-
-
-
Total
6,285
32,898
392
217,490
99,840
-
Indicated Resources
(10)
Silver
Gold
Lead
Zinc
Copper
Silver
Gold
Lead
Zinc
Copper
Asset
Location
Ownership
Tons (000)
(oz/ton)
(oz/ton)
%
%
%
(000 oz)
(000 oz)
(Tons)
(Tons)
(Tons)
Greens Creek (12,13)
United States
100.0%
7,619
14.1
0.10
3.0
8.0
-
107,226
760
227,360
607,600
-
Lucky Friday (12,14)
United States
100.0%
845
8.7
-
6.6
2.3
-
7,350
-
55,890
19,700
-
Casa Berardi Underground (12,15)
Canada
100.0%
3,522
-
0.17
-
-
-
-
594
-
-
-
Casa Berardi Open Pit (12,15)
Canada
100.0%
126
-
0.03
-
-
-
-
4
-
-
-
Keno Hill (12,16)
Canada
100.0%
1,050
13.7
0.01
1.1
2.1
-
14,431
12
11,610
22,460
-
San Sebastian - Oxide (17)
Mexico
100.0%
1,233
6.6
0.10
-
-
-
8,146
121
-
-
-
San Sebastian - Sulfide (17)
Mexico
100.0%
1,164
5.3
0.01
2.0
3.1
1.3
6,211
15
23,500
35,900
15,240
Fire Creek (18,19)
United States
100.0%
197
0.8
0.37
-
-
-
162
73
-
-
-
Hollister (18,20)
United States
100.0%
74
1.8
0.56
-
-
-
134
41
-
-
-
Midas (18,21)
United States
100.0%
95
5.4
0.40
-
-
-
514
38
-
-
-
Heva (22)
Canada
100.0%
1,208
-
0.05
-
-
-
-
62
-
-
-
Hosco (22)
Canada
100.0%
32,152
-
0.03
-
-
-
-
1,097
-
-
-
Star (12,23)
United States
100.0%
834
3.4
-
7.2
8.5
-
2,820
-
60,120
70,450
-
Rackla - Tiger Open Pit (29)
Canada
100.0%
3,116
-
0.10
-
-
-
-
311
-
-
-
Rackla - Tiger Underground (29)
Canada
100.0%
960
-
0.08
-
-
-
-
76
-
-
-
Rackla - Osiris Open Pit (30)
Canada
100.0%
4,843
-
0.12
-
-
-
-
577
-
-
-
Rackla - Osiris Underground (30)
Canada
100.0%
927
-
0.13
-
-
-
-
123
-
-
-
Total
59,965
146,994
3,904
378,480
756,110
15,240
Measured & Indicated
Resources
Silver
Gold
Lead
Zinc
Copper
Silver
Gold
Lead
Zinc
Copper
Asset
Location
Ownership
Tons (000)
(oz/ton)
(oz/ton)
%
%
%
(000 oz)
(000 oz)
(Tons)
(Tons)
(Tons)
Greens Creek (12,13)
United States
100.0%
7,619
14.1
0.10
3.0
8.0
-
107,226
760
227,360
607,600
-
Lucky Friday(12,14)
United States
100.0%
4,627
8.7
-
6.2
2.5
-
40,145
-
273,380
119,540
-
Casa Berardi Underground(12,15)
Canada
100.0%
5,007
-
0.18
-
-
-
-
895
-
-
-
Casa Berardi Open Pit (12,15)
Canada
100.0%
210
-
0.03
-
-
-
-
6
-
-
-
Keno Hill (12,16)
Canada
100.0%
1,050
13.7
0.01
1.1
2.1
-
14,431
12
11,610
22,460
-
San Sebastian - Oxide (17)
Mexico
100.0%
1,233
6.6
0.10
-
-
-
8,146
121
-
-
-
San Sebastian - Sulfide (17)
Mexico
100.0%
1,164
5.3
0.01
2.0
3.1
1.3
6,211
15
23,500
35,900
15,240
Fire Creek (18,19)
United States
100.0%
197
0.8
0.37
-
-
-
162
73
-
-
-
Hollister(18,20)
United States
100.0%
93
2.4
0.56
-
-
-
223
52
-
-
-
Midas(18,21)
United States
100.0%
97
5.5
0.40
-
-
-
529
39
-
-
-
Heva (22)
Canada
100.0%
1,208
-
0.05
-
-
-
-
62
-
-
-
Hosco(22)
Canada
100.0%
32,152
-
0.03
-
-
-
-
1,097
-
-
-
Star(12,23)
United States
100.0%
834
3.4
-
7.2
8.5
-
2,820
-
60,120
70,450
-
Rackla - Tiger Open Pit (29)
Canada
100.0%
3,997
-
0.10
-
-
-
-
386
-
-
-
Rackla - Tiger Underground(29)
Canada
100.0%
991
-
0.08
-
-
-
-
78
-
-
-
Rackla - Osiris Open Pit (30)
Canada
100.0%
4,843
-
0.12
-
-
-
-
577
-
-
-
Rackla - Osiris Underground(30)
Canada
100.0%
927
-
0.13
-
-
-
-
123
-
-
-
Total
66,249
179,893
4,296
595,970
855,950
15,240
Inferred Resources
(11)
Silver
Gold
Lead
Zinc
Copper
Silver
Gold
Lead
Zinc
Copper
Asset
Location
Ownership
Tons (000)
(oz/ton)
(oz/ton)
%
%
%
(000 oz)
(000 oz)
(Tons)
(Tons)
(Tons)
Greens Creek (12,13)
United States
100.0%
1,878
13.4
0.08
2.9
6.9
-
25,106
151
54,010
130,120
-
Lucky Friday(12,14)
United States
100.0%
3,811
10.3
-
7.7
3.2
-
39,183
-
293,010
121,710
-
Casa Berardi Underground(12,15)
Canada
100.0%
2,076
-
0.20
-
-
-
-
408
-
-
-
Casa Berardi Open Pit (12,15)
Canada
100.0%
577
-
0.10
-
-
-
-
57
-
-
-
Keno Hill (12,16)
Canada
100.0%
1,300
14.8
0.005
1.3
2.7
-
19,270
6
16,450
34,940
-
San Sebastian - Oxide (17)
Mexico
100.0%
2,163
7.1
0.06
-
-
-
15,364
134
-
-
-
San Sebastian - Sulfide (17)
Mexico
100.0%
326
4.3
0.01
1.7
2.6
0.9
1,388
4
5,680
8,420
3,090
Fire Creek (18,19)
United States
100.0%
1,197
0.4
0.42
-
-
-
524
500
-
-
-
Fire Creek - Open Pit (24)
United States
100.0%
74,584
0.1
0.03
-
-
-
5,232
2,178
-
-
-
Hollister(18,20)
United States
100.0%
742
2.7
0.40
-
-
-
2,037
294
-
-
-
Midas(18,21)
United States
100.0%
1,480
5.3
0.44
-
-
-
7,918
657
-
-
-
Heva (22)
Canada
100.0%
1,615
-
0.08
-
-
-
-
136
-
-
-
Hosco(22)
Canada
100.0%
14,460
-
0.03
-
-
-
-
461
-
-
-
Star(12,23)
United States
100.0%
2,044
3.5
-
6.7
6.7
-
7,129
-
137,040
137,570
-
San Juan Silver (12,25)
United States
100.0%
2,351
15.8
0.01
1.4
1.1
-
37,026
27
47,430
38,020
-
Monte Cristo(26)
United States
100.0%
523
0.2
0.24
-
-
-
126
101
-
-
-
Rock Creek(12,27)
United States
100.0%
99,997
1.5
-
-
-
0.7
148,688
-
-
-
658,410
Libby Exploration(12,28)
United States
100.0%
112,185
1.6
-
-
-
0.7
183,346
-
-
-
759,420
Rackla - Tiger Open Pit (29)
Canada
100.0%
30
-
0.05
-
-
-
-
2
-
-
-
Rackla - Tiger Underground(29)
Canada
100.0%
153
-
0.07
-
-
-
-
11
-
-
-
Rackla - Osiris Open Pit (30)
Canada
100.0%
5,919
-
0.09
-
-
-
-
529
-
-
-
Rackla - Osiris Underground(30)
Canada
100.0%
4,398
-
0.12
-
-
-
-
515
-
-
-
Total
333,809
492,337
6,171
553,620
470,780
1,420,920
Note: All estimates are in-situ except for the proven reserves
at Greens Creek and Keno Hill which are in surface stockpiles.
Stockpile materials make up 26.5 k tons of the total proven
reserves at Casa Berardi.
Mineral resources are exclusive of reserves.
(8)
The term "mineral resources" means a
concentration or occurrence of material of economic interest in or
on the Earth's crust in such form, grade or quality, and quantity
that there are reasonable prospects for economic extraction.
A mineral resource is a reasonable
estimate of mineralization, taking into account relevant factors
such as cut-off grade, likely mining dimensions, location or
continuity, that, with the assumed and justifiable technical and
economic conditions, is likely to, in whole or in part, become
economically extractable. It is not merely an inventory of all
mineralization drilled or sampled.
(9)
The term "measured resources" means that
part of a mineral resource for which quantity and grade or quality
are estimated on the basis of conclusive geological evidence and
sampling. The level of geological certainty associated with a
measured mineral resource is sufficient to allow a qualified person
to apply modifying factors in sufficient detail to support detailed
mine planning and final evaluation of the economic viability of the
deposit.
Because a measured mineral resource has a
higher level of confidence than the level of confidence of either
an indicated mineral resource or an inferred mineral resource, a
measured mineral resource may be converted to a proven mineral
reserve or to a probable mineral reserve.
(10)
The term "indicated resources" means that
part of a mineral resource for which quantity and grade or quality
are estimated on the basis of adequate geological evidence and
sampling. The level of geological certainty associated with an
indicated mineral resource is sufficient to allow a qualified
person to apply modifying factors in sufficient detail to support
mine planning and evaluation of the economic viability of the
deposit. Because an indicated mineral resource has a lower
confidence level than a measured mineral resource, an indicated
mineral resource may only be converted to a probable mineral
reserve.
(11)
The term "inferred resources" means that
part of a mineral resource for which quantity and grade or quality
are estimated on the basis of limited geological evidence and
sampling. The level of geological uncertainty associated with an
inferred mineral resource is too high to apply relevant technical
and economic factors likely to influence the prospects of economic
extraction in a manner useful for evaluation of economic viability.
Because an inferred mineral resource has the lowest level of
geological confidence of all mineral resources, which prevents the
application of the modifying factors in a manner useful for
evaluation of economic viability, an inferred mineral resource may
not be considered when assessing the economic viability of a mining
project and may not be converted to a mineral reserve.
(12)
Mineral resources are based on $2,000/oz
gold, $24/oz silver, $1.15/lb lead, $1.35/lb zinc and $4/lb copper,
unless otherwise stated.
(13)
The resource NSR cut-off values for Greens
Creek is $230/ton for all zones; metallurgical recoveries (actual
2024): 79% for silver, 72% for gold, 81% for lead, and 89% for
zinc.
(14)
The resource NSR cut-off value for Lucky
Friday is $236/ton; metallurgical recoveries (actual 2024): 94% for
silver, 94% for lead, and 86% for zinc
(15)
The average resource cut-off grades at
Casa Berardi are 0.11 oz/ton gold (3.7 g/tonne) for underground and
0.03 oz/ton gold (1.05 g/tonne) for open pit; metallurgical
recovery (actual 2024): 85% for gold; US$/CAD$ exchange rate:
1:1.35.
(16)
The resource NSR cut-off value at Keno
Hill is $134.40/ton (CAD$200/tonne); using minimum width of 4.9
feet (1.5m); metallurgical recovery (actual 2024): 97% for silver,
95% for lead, 87% for zinc; US$/CAD$ exchange rate: 1:1.35
(17)
Mineral resources for underground zones at
San Sebastian reported at a cut-off grade of $158.8/ton
($175/tonne), open pit resources reported at a cut-off grade of
$72.6/ton ($80/tonne);
Metallurgical recoveries based on grade
dependent recovery curves: recoveries at the mean resource grade
average 89% for silver and 84% for gold for oxide material and 85%
for silver, 83% for gold, 81% for lead, 86% for zinc, and 83% for
copper for sulfide material.
Resources reported at a minimum mining
width of 8.2 feet (2.5m) for Middle Vein, North Vein, and East
Francine, 6.5ft (1.98m) for El Toro, El Bronco, and El Tigre, and
4.9 feet (1.5 m) for Hugh Zone and Andrea.
(18)
Mineral resources for Fire Creek,
Hollister and Midas are reported using a minimum mining width of
four feet or the vein true thickness plus two feet, whichever is
greater.
(19)
Fire Creek underground mineral resources
are reported at a gold equivalent cut-off grade of 0.22 oz/ton.
Metallurgical recoveries: 90% for gold and 70% for silver.
(20)
Hollister mineral resources, including the
Hatter Graben are reported at a gold equivalent cut-off grade of
0.21 oz/ton. Metallurgical recoveries: 88% for gold and 66% for
silver
(21)
Midas mineral resources are reported at a
gold equivalent cut-off grade of 0.20 oz/ton. Metallurgical
recoveries: 90% for gold and 70% for silver. Inferred resources for
the Sinter Zone are reported undiluted.
(22)
Mineral resources at Heva and Hosco are
based on a gold cut-off grade of 0.011 oz/ton (0.37 g/tonnes) for
open pit and 0.117 oz/ton (4 g/tonne) for underground and
metallurgical recoveries of 95% for gold at Heva and 81.5% and
87.7% for gold at Hosco depending on zone.
Heva and Hosco resources are diluted 20%
and reported using a 7% mining loss.
(23)
(23) Indicated and Inferred resources at
the Star property are reported using a minimum mining width of 4.3
feet and an NSR cut-off value of $200/ton; Metallurgical recovery:
93% for silver, 93% for lead, and 87% for zinc.
(24)
(24) Inferred open-pit resources for Fire
Creek calculated November 30, 2017, using gold and silver
recoveries of 65% and 30% for oxide material and 60% and 25% for
mixed oxide-sulfide material. Indicated Resources reclassified as
Inferred in 2019.
Open pit resources are calculated at
$1,400 gold and $19.83 silver and cut-off grade of 0.01 Au
Equivalent oz/ton and is inclusive of 10% mining dilution and 5%
ore loss. Open pit mineral resources exclusive of underground
mineral resources.
NI43-101 Technical Report for the Fire
Creek Project, Lander County, Nevada; Effective Date March 31,
2018; prepared by Practical Mining LLC, Mark Odell, P.E. for Hecla
Mining Company, June 28, 2018.
(25)
Inferred resources reported at a minimum
mining width of 6.0 feet for Bulldog and an NSR cut-off value of
$200/ton and 5.0 feet for Equity and North Amethyst veins at an NSR
cut-off value of $175/ton; Metallurgical recoveries based on grade
dependent recovery curves;
metal recoveries at the mean resource
grade average 89% silver, 74% lead, and 81% zinc for the Bulldog
and a constant 85% gold and 85% silver for North Amethyst and
Equity.
(26)
Inferred resource at Monte Cristo reported
at a minimum mining width of 5.0 feet and a 0.10 oz/ton gold
cut-off grade. Metallurgical recovery: 90% for gold and 90%
silver.
(27)
Inferred resource at Rock Creek reported
at a minimum thickness of 15 feet and an NSR cut-off value of
$31.50/ton; Metallurgical recoveries: 88% for silver and 92% for
copper.
Resources adjusted based on mining
restrictions as defined by U.S. Forest Service, Kootenai National
Forest in the June 2003 'Record of Decision, Rock Creek
Project'.
(28)
Inferred resource at Libby reported at a
minimum thickness of 15 feet and an NSR cut-off value of $31.50/ton
NSR; Metallurgical recoveries: 88% for silver and 92% copper.
Resources adjusted based on mining
restrictions as defined by U.S. Forest Service, Kootenai National
Forest, Montana DEQ in December 2015 'Joint Final EIS, Montanore
Project' and the February 2016 U.S Forest Service - Kootenai
National Forest 'Record of Decision, Montanore Project'.
(29)
Mineral resources at the Rackla-Tiger
Project are based on a gold price of $1,650/oz, metallurgical
recovery of 95% for gold, and cut-off grades of 0.02 oz/ton gold
for the open pit portion of the resources and 0.04 oz/ton gold for
the underground portions of the resources; US$/CAD$ exchange rate:
1:1.3.
(30)
Mineral resources at the Rackla-Osiris
Project are based on a gold price of $1,850/oz, metallurgical
recovery of 83% for gold, and cut-off grades of 0.03 oz/ton gold
for the open pit portion of the resources and 0.06 oz/ton gold for
the underground portions of the resources; US$/CAD$ exchange rate:
1:1.3.
Totals may not represent the sum of parts
due to rounding
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250213584110/en/
For further information, please contact: Anvita M. Patil Vice
President - Investor Relations and Treasurer
Cheryl Turner Communications Coordinator
Investor Relations Email: hmc-info@hecla.com Website:
http://www.hecla.com
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