Hecla Announces Q3 2022 Production and Increases Guidance
Hecla Mining Company (NYSE: HL) announced its third quarter 2022 preliminary production results, revealing a silver output of 3.6 million ounces, set to exceed previous guidance. Gold production remained stable at 44,747 ounces. The Keno Hill project development is on track, with 20% of preproduction completed. The company is increasing its overall production guidance for both silver and gold, establishing itself as the fastest-growing established silver producer in the U.S. and potentially Canada's largest as well.
- Silver production is on track to exceed guidance with 3.6 million ounces.
- Stable gold production at 44,747 ounces, consistent with prior quarter.
- Increased production guidance for silver and gold due to operational performance.
- Gold production declined by 2% compared to the previous quarter.
- Lower grades in base metals resulted in deferred concentrate shipment.
- Lucky Friday mine showed decreased silver production due to lower milled grades.
Alexco acquisition is complete,
HIGHLIGHTS
- Silver production of 3.6 million ounces is on track to exceed production guidance
- Gold production of 44,747 ounces, in line with the second quarter of 2022 (“prior quarter”)
-
Keno Hill third quarter development is on plan; approximately20% of total planned preproduction development is complete -
Increasing 2022 production guidance for both silver and gold for
Greens Creek
“Hecla reported another strong quarter of operational performance from all three mines as
Baker continued, “With strong operational performance over the past nine months at all of our operating mines, we are increasing our 2022 production guidance. Our production growth makes Hecla the fastest growing established silver producer, further increasing our leadership as the largest silver producer in the
OPERATIONS
At the
The Lucky Friday mine produced 1.1 million ounces of silver, slightly less than the 1.2 million ounces in the prior quarter. Decreased production was due to lower milled grades and mined tons as new equipment is commissioned and projects are prioritized for increasing future throughput. The mill operated at an average throughput rate of 986 tpd during the quarter, which puts 2022 on track to become mine’s record year for annual throughput and the mine is expected to achieve its silver production guidance for the year.
(1) | See cautionary statement regarding preliminary statements at the end of this release. |
PRODUCTION SUMMARY
|
Three Months Ended |
|
Nine Months Ended |
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|
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PRODUCTION |
|
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Increase/
|
|
|
Increase/
|
||||||
Silver (ounces) |
3,549,392 |
3,645,454 |
(3)% |
10,519,553 |
9,660,313 |
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Gold* (ounces) |
44,747 |
45,718 |
(2)% |
132,108 |
153,349 |
(14)% |
||||||
Lead (short tons) |
11,601 |
13,331 |
(13)% |
35,794 |
32,148 |
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Zinc (short tons) |
15,859 |
16,766 |
(5)% |
47,571 |
48,863 |
(3)% |
||||||
|
2,468,279 |
2,410,599 |
|
7,308,660 |
6,980,588 |
|
||||||
|
11,412 |
12,413 |
(8)% |
35,227 |
35,860 |
(2)% |
||||||
|
1,074,230 |
1,226,477 |
(12)% |
3,188,565 |
2,608,726 |
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||||||
|
33,335 |
33,306 |
|
96,881 |
97,244 |
|
(*) YTD gold production for the nine months ended
2022 Production Outlook2
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Silver Production
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Gold Production
|
Silver Equivalent
|
Gold Equivalent
|
|
9.3 – 9.6 |
44 – 48 |
21.8 – 22.4 |
282 – 290 |
|
4.3 – 4.5 |
N/A |
8.6 – 8.8 |
112 – 114 |
|
N/A |
125 – 132 |
9.7 – 10.2 |
125 – 132 |
2022 Total |
13.6 - 14.1 |
169 - 180 |
40.1 – 41.4 |
519 – 536 |
*Equivalent ounces include lead and zinc production
ABOUT HECLA
Founded in 1891,
NOTES
(2) Expectations for 2022 include silver, gold, lead and zinc production from
Cautionary Statements Regarding Estimates and Forward-Looking Statements, Including 2022 Outlook
All measures of the Company's third quarter 2022 operating results contained in this release are preliminary and reflect the Company’s expected results as of the date of this release. Actual reported third quarter 2022 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.
Statements made or information provided in this news release that are not historical facts are "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, and "forward-looking information" within the meaning of 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)
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 2021 Form 10-K filed on
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For further information, please contact:
Vice President – Investor Relations and Treasurer
Communications Coordinator
800-HECLA91 (800-432-5291)
Investor Relations
Email: hmc-info@hecla-mining.com
Website: www.hecla-mining.com
Source:
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