Hecla Announces First Quarter Production
- Significant 43% increase in silver production for Hecla Mining Company in Q1 2024 compared to Q4 2023.
- Gold production remained consistent with 36,592 ounces produced in the first quarter.
- Greens Creek saw a 10% increase in silver production and steady gold production.
- Lucky Friday mine achieved full production with 1.1 million ounces of silver produced.
- Keno Hill experienced a 29% increase in throughput as ramp-up continues.
- Lead production surged by 129% and zinc production increased by 28% due to Lucky Friday's ramp-up.
- Positive remarks from President and CEO Phillips S. Baker, Jr. on the strong performance of the mines and overall production growth.
- Casa Berardi mine transitioning to a fully surface operation as planned for continued efficiency.
- Hecla Mining Company is on track to meet production targets for the year.
- None.
Insights
The reported 43% increase in silver production represents a significant operational milestone for Hecla Mining Company, which could have a positive effect on the company's financial performance. This surge in production volume, particularly from the Lucky Friday mine reaching full production and the ramp-up at Keno Hill, indicates improved operational efficiency and resource management. The increase in lead and zinc production by 129% and 28% respectively, due to the ramp-up at Lucky Friday, further diversifies the company's mineral portfolio, potentially mitigating risks associated with price volatility in the commodities market.
Investors may interpret these developments as a signal of robust growth potential, which could lead to increased investor confidence and a potential uptick in stock value. However, it is essential to monitor commodity prices, as an increase in output might not translate into proportional revenue growth if prices are unfavorable. Additionally, the transition of Casa Berardi to a fully surface operation suggests a strategic pivot that could reduce operational costs and improve safety, although it may entail significant upfront capital expenditures.
The substantial increase in production volume for Hecla Mining could lead to an improved gross margin, assuming sales prices remain constant or increase. It's essential to consider the cost implications of the increased production; if the ramp-up led to a significant increase in costs, the net impact on profitability might be less pronounced. Investors should look for the upcoming detailed financial results to assess the cost-per-ounce metrics and the impact on the company's earnings before interest, taxes, depreciation and amortization (EBITDA).
Furthermore, the company's ability to maintain gold production levels consistent with the previous quarter, despite the increased throughput, suggests operational stability. This consistency is vital for forecasting future performance and maintaining market expectations. The operational updates could serve as a precursor to a positive earnings surprise, which would be a bullish indicator for the stock. However, the market will also be keen on understanding the sustainability of these production levels and any guidance revisions for future quarters.
The mining sector is highly capital-intensive and Hecla's announcement indicates a successful completion of a significant phase of capital investment, particularly in the Lucky Friday and Keno Hill mines. The transition of Casa Berardi to a fully surface operation could signal a shift towards more cost-effective and environmentally sustainable mining practices, which is increasingly important to investors who are mindful of environmental, social and governance (ESG) factors.
It is also worth noting that the increase in lead and zinc production positions Hecla to take advantage of market dynamics where these base metals are in demand, particularly with the growth in renewable energy technologies requiring such materials. However, the mining industry is subject to strict regulatory environments and any changes in mining policies or environmental regulations could impact Hecla's operations and, consequently, its stock performance.
HIGHLIGHTS
1st Quarter 2024 compared to 4th Quarter 2023 (“prior quarter”)
-
Silver production of 4.2 million ounces, a
43% increase. - Gold production of 36,592 ounces, in line with prior quarter.
-
Greens Creek silver production increased
10% and gold production in line with prior quarter. - Lucky Friday completed ramp-up to full production with 1.1 million ounces of silver produced.
-
Keno Hill throughput increased
29% as the ramp-up continues. -
Lead production increased
129% ; zinc production increased28% due to ramp-up at Lucky Friday.
“The
Baker continued, “Hecla is on track to produce about 17 million ounces in 2024, expected to increase to about 20 million ounces by 2026. Silver is necessary for the energy transition - in 2023, silver used in solar increased about
OPERATIONS
Greens Creek
The Greens Creek mine produced 2.5 million ounces of silver, an increase of
Lucky Friday
The Lucky Friday mine produced 1.1 million ounces of silver as the mine completed ramp-up to full production in March. Mill throughput was 948 tpd during the quarter. The Company continues to work with the property insurer and has collected
Casa Berardi
The Casa Berardi mine produced 22,004 ounces of gold in the quarter, in line with the prior quarter, as a
Keno Hill
Keno Hill produced 646,312 ounces of silver, an increase of
The mine continues to advance ramp-up to full production, which is expected during the year. The Company continues to work through safety and environmental standards at the mine; with these standards driving the pace of production.
PRODUCTION SUMMARY
|
Three Months Ended |
|
|
|
March 31, 2024 |
Dec 31, 2023 |
|
Production |
|
|
Increase/
|
Silver (oz) |
4,192,098 |
2,935,632 |
43 % |
Gold (oz) |
36,592 |
37,168 |
(2)% |
Lead (tons) |
12,100 |
5,282 |
129 % |
Zinc (tons) |
16,211 |
12,669 |
28 % |
Greens Creek - Silver (oz) |
2,478,594 |
2,260,027 |
10 % |
Greens Creek - Gold (oz) |
14,588 |
14,651 |
(0)% |
Lucky Friday - Silver (oz) |
1,061,065 |
61,574 |
1,623 % |
Keno Hill - Silver (oz) |
646,312 |
608,301 |
6 % |
Casa Berardi - Gold (oz) |
22,004 |
22,517 |
(2)% |
(1) See cautionary statement regarding preliminary statements at the end of this release.
ABOUT HECLA
Founded in 1891, Hecla Mining Company (NYSE: HL) is the largest silver producer in
Cautionary Statements Regarding Estimates and Forward-Looking Statements
All measures of the Company's first quarter 2023 operating results contained in this release are preliminary and reflect the Company’s expected results as of the date of this release. Actual reported first quarter 2023 results are subject to management's final review as well as review by the Company's independent registered accounting firm and may vary significantly from current expectations because of a number of factors, including, without limitation, additional or revised information and changes in accounting standards or policies or in how those standards are applied.
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) the Company will produce 17 million ounces of silver in 2024 and increase production to up to 20 million ounces by 2026; (ii) approximately
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 2023 Form 10-K filed on February 15, 2024 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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240408870096/en/
Anvita M. Patil
Vice President – Investor Relations and Treasurer
Cheryl Turner
Communications Coordinator
800-HECLA91 (800-432-5291)
Investor Relations
Email: hmc-info@hecla.com
Website: www.hecla.com
Source: Hecla Mining Company
FAQ
How much did silver production increase in Q1 2024 for Hecla Mining Company (HL)?
What was the gold production like for Hecla Mining Company in Q1 2024?
Which mine saw a 10% increase in silver production in Q1 2024 for Hecla Mining Company?
How much silver did Lucky Friday mine produce in Q1 2024 for Hecla Mining Company?
What was the throughput increase like for Keno Hill mine in Q1 2024 for Hecla Mining Company?
Who commented on the strong performance and production growth of Hecla Mining Company in Q1 2024?
What is Casa Berardi mine transitioning to in Q1 2024 for Hecla Mining Company?
Is Hecla Mining Company on track to meet its production targets for the year?
