Production exceeded expectations; Guidance maintained
Company Website:
http://www.hecla-mining.com
COEUR D'ALENE, Idaho -- (Business Wire)
Hecla Mining Company (NYSE:HL)
today announced preliminary silver and gold production results¹ for the
first quarter of 2018.
HIGHLIGHTS
-
Silver production of 2.5 million ounces, and gold production of 57,808
ounces.
-
Silver equivalent production of 10.7 million ounces and gold
equivalent production of 134,903 ounces.2
-
Lead production of 5,627 tons; zinc production of 15,211 tons.
-
Throughput at Casa Berardi continues at a record pace.
-
Entered into agreement to acquire Klondex Mines Ltd, with 3 high-grade
Nevada gold mines, potentially adding 162,000 ounces of annual gold
equivalent production.
-
Received $31.6 million investment (C$40 million) from Ressources
Quebec, a wholly owned subsidiary of Investissement Québec.
-
Cash, cash equivalents and short-term investments of approximately
$245 million at March 31, 2018, an increase of about $32 million over
March 31, 2017.
“Our mines are performing well due to the strength of our operating
teams and consistent and disciplined capital programs that have improved
these longlived mines,” said Phillips S. Baker, Jr., Hecla’s President
and CEO. “Greens Creek continues growing throughput, primarily due to
increased efficiency at shift change as we utilize new technologies like
remote monitoring systems and automated use of the LHD. Casa Berardi is
now fully an underground and open pit mine and continues to set
throughput records. San Sebastian’s production is primarily from
stockpiled open pit material as we transition to the underground. The
cash position is the second highest in the past 6 years, and we expect
to deploy it to acquire Klondex in the second quarter.”
(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: $16.77 for Ag, $1,329
for Au, $1.14 for Pb, and $1.55 for Zn.
|
Greens Creek
At the Greens Creek mine, 1.9 million ounces of silver and 13,118 ounces
of gold were produced. Lower gold production, when compared to the first
quarter of 2017, was due to lower ore grades as a result of mine
sequencing, partially offset by higher mill throughput. The mill
operated at an average of 2,349 tons per day (tpd).
Lucky Friday
At the Lucky Friday mine, 99,780 ounces of silver were produced for the
first quarter. Production is lower as compared to the first quarter of
2017 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 first quarter.
Casa Berardi
At the Casa Berardi mine, 40,177 ounces of gold were produced, including
10,655 ounces from the East Mine Crown Pillar pit, in the first quarter
of 2018. The mine produced as expected, with an increase of 4,370 ounces
compared to the first quarter of 2017. The mill operated at an average
of 3,873 tpd, a quarterly record.
San Sebastian
At the San Sebastian mine, 0.5 million ounces of silver and 4,513 ounces
of gold were produced in the first quarter of 2018. Although silver and
gold production as compared to the first quarter of 2017 were lower,
both still exceeded our estimates for the quarter due to the amount of
higher-grade stockpile material processed. The mill operated at an
average of 382 tpd.
PRODUCTION SUMMARY |
|
|
| First Quarter Ended |
| |
|
| March 31, 2018 |
|
March 31, 2017
|
|
|
PRODUCTION |
|
|
|
|
| Increase/ (Decrease) |
Silver | | 2,534,095 |
|
3,369,426
| | (835,331) |
Gold | | 57,808 | |
56,113
| | 1,695 |
Lead1 | | 5,627 | |
8,636
| | (3,009) |
Zinc | | 15,211 | |
15,538
| | (327) |
Greens Creek - Silver | | 1,913,232 | |
1,929,297
| | (16,065) |
Greens Creek - Gold | | 13,118 | |
14,022
| | (904) |
Lucky Friday - Silver1 | | 99,780 | |
680,782
| | (581,002) |
Casa Berardi - Gold2 | | 40,177 | |
35,807
| | 4,370 |
San Sebastian - Silver | | 512,192 | |
750,803
| | (238,611) |
San Sebastian - Gold | | 4,513 | |
6,284
| | (1,771) |
(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 8,891 ounces of silver in the first
quarter 2018 compared to 8,544 ounces of silver for first quarter of
2017.
|
| |
|
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 first quarter 2018 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
first quarter 2018 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 first quarter of 2018 on a consolidated basis
and at each of the Greens Creek, Lucky Friday and San Sebastian mines,
and first quarter 2018 gold production at Casa Berardi, as well as
quarter-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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20180411005320/en/
Contacts:
Hecla Mining Company
Mike Westerlund, 800-HECLA91 (800-432-5291)
Vice
President – Investor Relations
hmc-info@hecla-mining.com
www.hecla-mining.com
Source: Hecla Mining Company
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