Hecla Mining Company (NYSE:HL) today announced preliminary
silver and gold production results¹ for the fourth quarter and full
year 2017.
2017 HIGHLIGHTS
- Silver production of 12.5 million
ounces, the second highest behind the record achieved in 2016, and
gold production of 232,685 ounces, the third highest in Company
history.
- Silver equivalent production of 40.9
million ounces and gold equivalent production of 554,843
ounces.2
- Lead production of 22,734 tons; zinc
production of 55,109 tons.
- Gold production at Casa Berardi highest
since its acquisition.
- Cash, cash equivalents and short-term
investments of approximately $219 million at December 31, 2017, an
increase of about $20 million over December 31, 2016.
“Our mines finished the year strongly, with Greens Creek
exceeding our estimates again this year and Casa Berardi and San
Sebastian performing at the upper end of our estimates, generating
the second highest annual silver production and third highest gold
production in our 126-year history,” said Phillips S. Baker, Jr.,
Hecla’s President and CEO. “Their performance is a result of the
focus on increasing throughput, with Greens Creek and Casa Berardi
both achieving records. Although annual silver production has
declined from 2016 as a result of the strike at the Lucky Friday,
two things about 2017 stand out. First, silver production was
better than any other year in our history except last year. Second,
our cash position increased $20 million, reflecting what a good
year it was for Hecla. We are well-positioned for 2018.”
(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 year as follows: $17.05 for Ag, $1,257 for Au, $1.05
for Pb, and $1.31 for Zn. Guidance calculation based on the
following prices: $17.25 for Ag, $1,225 for Au, $1.05 for Pb, and
$1.30 for Zn.
Greens Creek
At the Greens Creek mine in 2017, 8.4 million ounces of silver
and 50,855 ounces of gold were produced. For the fourth quarter,
2.1 million ounces of silver and 11,565 ounces of gold were
produced. Lower silver and gold production, when compared to 2016,
was due to the expected lower grades but the silver production
still exceeded our estimates. The mill operated at an average of
2,300 tons per day (tpd) in 2017, a record which is about 15%
greater than the throughput when we became the operator in
2008.
Lucky Friday
At the Lucky Friday mine, 838,657 ounces and 69,578 ounces of
silver were produced for the year and the fourth quarter,
respectively. Production in each timeframe is lower as compared to
2016 due to the ongoing strike by unionized employees. Limited
production and capital improvements, performed by salaried staff,
and limited shipments of concentrate occurred in the fourth
quarter. To access the Lucky Friday Labor Negotiations Q&A on
the Company’s website, click on the following link
http://luckyfriday.hecla-mining.com.
Casa Berardi
At the Casa Berardi mine in 2017, 156,653 ounces of gold were
produced, including 37,922 ounces from the East Mine Crown Pillar
pit. For the fourth quarter, 43,444 ounces of gold were produced
including 12,333 ounces from the East Mine Crown Pillar pit. The
mine produced as expected, with an increase of eleven thousand
ounces compared to 2016. The mill operated at an average of
3,551 tpd in 2017, 825 tpd more than 2016 and about 1,350 tpd
more than at acquisition.
San Sebastian
At the San Sebastian mine in 2017, 3.3 million ounces of silver
and 25,177 ounces of gold were produced. For the fourth quarter,
759,100 ounces of silver and 5,955 ounces of gold were produced.
Although silver and gold production as compared to 2016 were lower,
both still exceeded our estimates for the year. The mill operated
at an average of 395 tpd in 2017.
PRODUCTION SUMMARY
Fourth Quarter Ended Twelve Months Ended
December 31, 2017
December 31, 2016
December
31, 2017 December 31, 2016
PRODUCTION
Increase/(Decrease)
Increase/(Decrease)
Silver 2,984,786 oz. 3,976,552 oz.
(25)% 12,484,843 oz. 17,177,317 oz.
(27)% Gold 60,964 oz. 63,150 oz.
(4)%
232,685 oz. 233,929 oz.
0% Lead1
4,308 tons 10,632 tons
(60)% 22,734 tons
42,472 tons
(47)% Zinc 12,108 tons 18,195 tons
(34)% 55,109 tons 68,516 tons
(20)% Greens
Creek 2,146,223 silver oz. 2,232,855 silver oz.
(4)% 8,351,883 silver oz. 9,253,543 silver oz.
(10)% Greens Creek 11,565 gold oz. 14,415 gold
oz.
(20)% 50,855 gold oz. 53,912 gold oz.
(6)%
Lucky Friday1 69,578 silver oz. 874,019 silver
oz.
(92)% 838,657 silver oz. 3,596,010 silver oz.
(77)% Casa Berardi2 43,444 gold oz.
41,693 gold oz.
4% 156,653 gold oz. 145,975 gold oz.
7% San Sebastian 759,100 silver oz. 860,071
silver oz.
(12)% 3,257,738 silver oz. 4,294,123
silver oz.
(24)% San Sebastian 5,955 gold oz.
7,042 gold oz.
(15)% 25,177 gold oz. 34,042 gold oz.
(26)% (1) Union workers at Lucky
Friday have been on strike since March 13, 2017. Limited production
being carried out by salaried staff. (2) Casa Berardi also produced
9,885 ounces of silver in the fourth quarter 2017 and 36,565 ounces
of silver in 2017. It also produced 9,607 ounces of silver for
fourth quarter 2016 and 33,641 ounces of silver for 2016.
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 an operating mine
in Quebec, Canada. The Company also has exploration and
pre-development properties in seven world-class silver and gold
mining districts in the U.S., Canada, and Mexico, and an
exploration office and investments in early-stage silver
exploration projects in Canada.
Cautionary Statements Regarding Preliminary Results
All measures of the Company’s fourth quarter and year-end 2017
operating and financial results contained in this news release,
including cash, cash equivalents and short-term investments, are
preliminary and reflect the Company’s expected results as of the
date of this news release. Actual reported fourth quarter and
year-end 2017 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
Statements made or information provided in this news release
that are not historical facts are "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act
of 1995 and “forward-looking information” within the meaning of
Canadian securities laws. Words such as “may,” “will,” “should,”
“expects,” “intends,” “projects,” “believes,” “estimates,”
“targets,” “anticipates” and similar expressions are used to
identify these forward-looking statements. Such forward-looking
statements or forward-looking information include statements or
information regarding estimates of silver production for the fourth
quarter and year-end 2017 on a consolidated basis and at each of
the Greens Creek, Lucky Friday and San Sebastian mines, and fourth
quarter and year-end 2017 gold production at Casa Berardi, as well
as year-end cash position. The material factors or assumptions used
to develop such forward-looking statements or forward-looking
information include that the Company’s plans for development and
production will proceed as expected and will not require revision
as a result of risks or uncertainties, whether known, unknown or
unanticipated, to which the Company’s operations are subject.
Forward-looking statements involve a number of risks and
uncertainties that could cause actual results to differ materially
from those projected, anticipated, expected or implied. These risks
and uncertainties include, but are not limited to, metals price
volatility, volatility of metals production and costs, litigation,
regulatory and environmental risks, operating risks, project
development risks, political risks, labor issues, ability to raise
financing and exploration risks and results. Refer to the Company’s
Form 10K and 10-Q reports for a more detailed discussion of
factors that may impact expected future results. The Company
undertakes no obligation and has no intention of updating
forward-looking statements other than as may be required by
law.
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version on businesswire.com: http://www.businesswire.com/news/home/20180110005388/en/
Hecla Mining CompanyMike Westerlund, 800-HECLA91
(800-432-5291)Vice President – Investor
Relationshmc-info@hecla-mining.comwww.hecla-mining.com
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