Hecla Mining's 3rd quarter results
Lucky Friday Mine in Shoshone County.
COEUR d'ALENE — Hecla Mining Company (NYSE:HL) announced on Nov. 6 the company's third quarter 2023 operating and financial results — for the period ended Sept. 30.
THIRD QUARTER HIGHLIGHTS
Operational
Produced 3.5 million ounces of silver and 11.4 million ounces year to date ("YTD").
Continued ramping up Keno Hill, producing 0.7 million ounces of silver.
Casa Berardi began to transition to an open pit only operation, producing 24,259 ounces of gold, with total cost of sales of $56.8 million and an All-in Sustaining Cost ("AISC") per gold ounce of $1,695.4
Lucky Friday on track to resume operations at the beginning of 2024.
Gold production guidance reiterated, with gold cash cost guidance lowered.
Greens Creek silver production guidance increased, offset by lower anticipated production at Keno Hill; consolidated silver cost guidance affirmed.
Financial
Sales of $181.9 million, with 38% from silver and 36% from gold.
Consolidated silver total cost of sales of $90.7 million and cash cost and AISC per silver ounce (each after by-product credits) of $3.31 and $11.39, respectively.
Cash flow from operations of $10.2 million; $74.6 million YTD; with Greens Creek generating $36.1 million in cash flow from operations for the quarter and $122.7 million YTD.
Greens Creek generated $28.3 million in free cash flow for the quarter, $101.7 million YTD.2
Net loss applicable to common stockholders of ($22.6) million or ($0.04) per share and adjusted net loss applicable to common stockholders of ($3.5) million or ($0.01) per share.5
Strategic
Recognition of Hecla's innovation with the U.S. patent for the Underhand Closed Bench (UCB) mining method and the 2023 NIOSH Mine Safety and Health Technology Metals Sector Innovation Award.
Completed the acquisition of ATAC Resources, adding a massive land package of over 700 square miles comprised of the Rackla and Connaught properties in the Yukon.
All-Injury Frequency Rate of 1.34, 28% lower than the national average.
"Greens Creek reported another strong quarter and has generated over $100 million in free cash flow for the first nine months, our plans for returning Lucky Friday to production in early 2024 are well underway, and we are pleased with the start of the transition to an open pit only operation at Casa Berardi," said Phillips S. Baker Jr., President and CEO. "While exploration drilling at Keno Hill has yielded encouraging results and we expect to increase our reserves and resources, the production ramp-up has been slowed due to key mine infrastructure projects that are just now being completed. However, more importantly, safety performance at Keno Hill has been below Hecla’s standards, and we are assessing our safety processes and mining practices to set the mine up for long term success."
Baker continued, "Hecla is already the largest silver producer in the U.S. and will be Canada's largest when Keno Hill achieves full production. Hecla is the fastest-growing established silver producer, and we expect to produce up to 20 million ounces of silver by 2025. Because silver is a key component in solar power generation, which is the fastest growing source of renewable energy, Hecla will be a direct contributor to the energy transition."
