Up 20% for the first nine months
Hecla Mining Company (NYSE:HL) today announced certain
preliminary results1 for the third quarter of 2019.
HIGHLIGHTS
- Silver production of 3.3 million ounces, and gold production of
77,331 ounces.
- Silver equivalent production of 12.6 million ounces or gold
equivalent production of 145,536 ounces.2
- Lead production of 6,226 tons; zinc production of 15,589
tons.
- Cash and cash equivalents of approximately $33 million, a $24
million increase over June 30th, 2019, with outstanding debt
slightly lower.
“As expected, our third quarter operating and financial
performance improved,” said Phillips S. Baker, Jr., President and
CEO. “We knew that dialing back our expenditures while achieving
our expected production and sales targets would increase our cash
flow generation. We expect more of the same in the fourth
quarter.”
Greens Creek
At the Greens Creek mine, 2.5 million ounces of silver and
13,684 ounces of gold were produced in the quarter. The mill
operated at an average of 2,321 tons per day (tpd).
Casa Berardi
At the Casa Berardi mine, 36,547 ounces of gold were produced in
the quarter, including 6,081 ounces from the East Mine Crown Pillar
pit. The mill operated at an average of 3,667 tpd.
San Sebastian
At the San Sebastian mine, 0.6 million ounces of silver and
4,719 ounces of gold were produced in the third quarter. The mill
operated at an average of 586 tpd.
Nevada Operations
At the Nevada operations, 22,381 ounces of gold and 43,377
ounces of silver were produced. Ore was processed at an average of
695 tpd (combined Midas and Aurora mills).
Lucky Friday
At the Lucky Friday mine, 115,682 ounces of silver were produced
in the quarter, with limited production performed by salaried staff
during the quarter.
PRODUCTION SUMMARY
Third Quarter Ended
Nine Months Ended
September 30,
2019
September 30,
2018
September 30,
2019
September 30,
2018
PRODUCTION
Increase/
(Decrease)
Increase/
(Decrease)
Silver (oz)
3,293,372
2,523,691
31
%
9,235,268
7,654,118
21
%
Gold (oz)
77,331
72,995
6
%
198,121
191,116
4
%
Lead (tons)
6,226
4,238
47
%
17,526
15,387
14
%
Zinc (tons)
15,589
12,795
22
%
42,847
42,312
1
%
Greens Creek – Silver (oz)
2,544,018
1,876,417
36
%
7,149,035
5,789,440
24
%
Greens Creek – Gold (oz)
13,684
11,559
18
%
41,269
38,396
8
%
Lucky Friday – Silver (oz)
115,682
31,639
266
%
416,455
156,105
167
%
San Sebastian – Silver (oz)
583,658
521,931
12
%
1,488,472
1,593,770
(7
)%
San Sebastian – Gold (oz)
4,719
3,666
29
%
11,796
12,051
(2
)%
Casa Berardi – Gold (oz)
36,547
43,981
(17
)%
99,616
126,880
(22
)%
Nevada Operations – Silver (oz)
43,377
84,145
(48
)%
160,265
84,145
91
%
Nevada Operations – Gold (oz)
22,381
13,789
62
%
45,440
13,789
230
%
(1)
See cautionary statement regarding
preliminary statements at the end of this release.
(2)
Silver and gold equivalent calculation
based on average actual prices for each metal in the third quarter
as follows: $17.02 for Ag, $1,474 for Au, $0.92 for Pb, and $1.06
for Zn.
ABOUT HECLA
Founded in 1891, Hecla Mining Company (NYSE:HL) is a leading
low-cost U.S. silver producer with operating mines in Alaska,
Idaho, and Mexico, and is a growing gold producer with operating
mines in Quebec, Canada, and Nevada. The Company also has
exploration and pre-development properties in eight world-class
silver and gold mining districts in the U.S., Canada, and
Mexico.
Cautionary Statements Regarding Preliminary Results
All measures of the Company's third quarter 2019 operating and
financial results contained in this news release, including cash
and cash equivalents, are preliminary and reflect the Company’s
expected results as of the date of this news release. Actual
reported third quarter 2019 results are subject to management's
final review as well as review by the Company's independent
registered public accounting firm and may vary significantly from
those expectations because of a number of factors, including,
without limitation, additional or revised information and changes
in accounting standards or policies or in how those standards are
applied.
Cautionary Statements Regarding Forward-Looking
Statements
This 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. When a forward-looking statement expresses or implies an
expectation or belief as to future events or results, such
expectation or belief is expressed in good faith and believed to
have a reasonable basis. However, such statements are subject to
risks, uncertainties and other factors, which could cause actual
results to differ materially from future results expressed,
projected or implied by the forward-looking statements.
Forward-looking statements often address our expected future
business and financial performance and financial condition; and
often contain words such as “anticipate,” “intend,” “plan,” “will,”
“could,” “would,” “estimate,” “should,” “expect,” “believe,”
“project,” “target,” “indicative,” “preliminary,” “potential” and
similar expressions. Forward-looking statements in this news
release may include, without limitation: (i) estimates of silver
production for the third quarter of 2019 on a consolidated basis
and at each of the Greens Creek, Lucky Friday and San Sebastian
mines; (ii) estimates of third quarter of 2019 gold production at
Casa Berardi and Nevada operations; (iii) estimates of quarter-end
cash position; (iv) estimates of amounts borrowed under the
Company’s revolving credit agreement (“revolver”) at quarter-end;
(v) continued access to borrowings under the revolver; (vi) minimum
expected prices on the Company’s projected silver and gold
production through the first quarter of 2020; (vii) expected gold
production in the second half of the year, including the fourth
quarter, (viii) the effectiveness of steps taken by the Company to
lessen its risks; and (ix) the level of borrowings under the
revolver at the end of 2019. 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 and USD/MXN,
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) 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; (ix) counterparties performing their obligations
under hedging instruments, including put option contracts; (x)
sufficient workforce is available and trained to perform assigned
tasks; (xi) weather patterns and rain/snowfall within normal
seasonal ranges so as not to impact operations; (xii) relations
with interested parties, including Native Americans, remain
productive; (xiii) economic terms can be reached with third-party
mill operators who have capacity to process our ore; (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; (vi)
conflict resolution and outcome of projects or oppositions; (vii)
litigation, political, regulatory, labor and environmental risks;
(viii) exploration risks and results, including that mineral
resources are not mineral reserves, they do not have demonstrated
economic viability and there is no certainty that they can be
upgraded to mineral reserves through continued exploration; (ix)
the failure of counterparties to perform their obligations under
hedging instruments, including put option contracts; (x) our plans
for improvements at our Nevada operations, including at Fire Creek,
are not successful; (xi) our estimates for the second quarter
results are inaccurate; (xii) we take a material impairment charge
on our Nevada operations; and (xiii) we are unable to remain in
compliance with all terms of the credit agreement in order to
maintain continued access to the revolver. For a more detailed
discussion of such risks and other factors, see the Company’s 2018
Form 10-K, filed on February 22, 2019, and Form 10-Qs filed on May
9, 2019 and August 7, 2019 with the Securities and Exchange
Commission (SEC), as well as the Company’s other SEC filings. The
Company does not undertake any obligation to release publicly
revisions to any “forward-looking statement,” including, without
limitation, outlook, to reflect events or circumstances after the
date of this presentation, or to reflect the occurrence of
unanticipated events, except as may be required under applicable
securities laws. Investors should not assume that any lack of
update to a previously issued “forward-looking statement”
constitutes a reaffirmation of that statement. Continued reliance
on “forward-looking statements” is at investors’ own risk.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20191007005225/en/
Mike Westerlund Vice President – Investor Relations 800-HECLA91
(800-432-5291)
Investor Relations Email: hmc-info@hecla-mining.com Website:
www.hecla-mining.com
Hecla Mining (NYSE:HL)
Gráfico Histórico do Ativo
De Fev 2024 até Mar 2024
Hecla Mining (NYSE:HL)
Gráfico Histórico do Ativo
De Mar 2023 até Mar 2024