Hecla Mining Company (NYSE:HL) today announced preliminary
production results¹ for the second quarter 2015 and updated annual
production estimations.
HIGHLIGHTS (quarterly comparisons to Q2 2014)
- Estimated company-wide silver
production for 2015 increased to 10.5-11.0 million ounces from 10.5
million ounces.
- Silver production of 2.48 million
ounces, a 2% decrease.
- Gold production of 44,692 ounces, a 3%
increase.
- Silver equivalent production of 8.7
million ounces, the same as Q2 2014.2
- Lead production decreased 7% to 9,525
tons and zinc production increased 1% to 17,516 tons.
- Cash and cash equivalents of
approximately $190 million as of June 30, 2015.
- Hecla has secured the third party-owned
Velardeña mill to process ore from its high-grade San Sebastian
project in Mexico.
“Higher grades and recoveries at Greens Creek during the quarter
continued to improve the mine’s already strong performance,” said
Phillips S. Baker, Jr., Hecla’s President and CEO. “For a mine
producing over 7 million ounces of silver a year, an 8% increase in
silver recovery is a significant value driver, especially when
coupled with the higher grades. We expect these recoveries and
grades to continue at Greens Creek through the remainder of the
year.”
Greens Creek
Greens Creek’s second quarter production of 1,856,125 million
ounces of silver exceeded the second quarter of 2014 by 10%, while
gold production of 13,753 ounces was 8% lower. The higher silver
production was a result of higher recoveries and grade, partially
offset by slightly lower tonnage. Silver recoveries increased 8%,
or 5.6 percentage points, to 75.4% over the prior year period due
to changes in the fourth quarter modifying the flotation circuit to
more efficiently scalp additional lead concentrate directly to
final concentrate, and by introducing CO2 for pH control in the
lead flotation circuit in April 2015. The reduction in gold
production was the result of lower tonnage and grade partially
offset by recoveries that increased due to the previously described
plant improvements. The mill operated at an average of 2,194 tons
per day (tpd) in the second quarter.
(1) See cautionary statement regarding preliminary statements at
the end of this release.
(2) Silver equivalent calculations based on the following
prices: $17.25 for Ag, $1,225 for Au, $0.90 for Pb, and $1.00 for
Zn.
As a result of higher grades and recoveries, the Company now
expects Greens Creek to produce 7.7 to 8.0 million ounces of
silver, an increase over the previous expectation of 7.3 million
ounces.
Second Quarter Ended June 30,
2015 June 30, 2014
Greens Creek Recovery
Silver 75.4% 69.8%
Gold 64.7% 62.9%
Lead 80.4% 77.1%
Zinc 86.7% 88.7%
Lucky Friday
Lucky Friday’s second quarter silver production of 613,474
ounces was 25% lower than the second quarter of 2014 due to lower
tonnage and grade. A failure of the underground booster fan reduced
the ventilation capacity of the mine, leading to the temporary
closure of a higher-grade production stope. Lucky Friday has
returned to normal production rates by extending the work schedule
to seven days per week from six, but is mining lower grade material
until the fan is replaced, expected in the fourth quarter. In
addition, there are 10 days of scheduled downtime in the third
quarter for hoist mechanical maintenance. The mill operated at an
average of 792 tpd in the second quarter.
The mine is now expected to produce 2.8 to 3.0 million ounces of
silver in 2015, a reduction over the previous estimate of 3.2
million ounces.
Casa Berardi
Casa Berardi’s second quarter gold production of 30,939 ounces
was 8% higher than the second quarter of 2014 because of higher
grades, partially offset by lower tonnage and recovery. The mine
experienced higher grades as a result of mine sequencing. While
recoveries relative to a year ago decreased to 86% from 90% due to
the presence of arsenopyrite in some of the 118 Zone ore,
adjustments made to the plant in 2015 are expected to contribute to
recoveries increasing to 87% during the second half of the year.
The mill operated at an average of 2,407 tpd in the second
quarter.
With expectations for additional recovery improvements, and the
planned addition of a high-grade stope in Zone 123 in the fourth
quarter, the mine is expected to meet its 130,000 gold ounce target
for the year.
San Sebastian
Minera Hecla, S.A. de C.V., a wholly owned subsidiary of Hecla
Mining Company has entered into a lease agreement with Minera
William S.A. de C.V., a wholly owned subsidiary of Golden Minerals
Company and owner of the Velardeña oxide mill in Durango State,
Mexico. Under the terms of the agreement, Hecla has exclusive use
of the mill for 18 months, with the potential to increase for up to
another 12 months. Located within 100 miles of San Sebastian, the
mill was previously used by Hecla to process ore when it mined on
the property from 2001 to 2005.
Second Quarter Ended June 30,
2015 June 30, 2014
PRODUCTION
Increase (Decrease)
Silver 2,477,149 oz. 2,515,835 oz.
(2)%
Gold 44,692 oz. 43,554 oz.
3% Lead
9,525 tons 10,229 tons
(7)% Zinc 17,516
tons 17,383 tons
1% Greens Creek (Silver)
1,856,125 oz. 1,689,183 oz.
10% Greens Creek
(Gold)
13,753 oz. 14,931 oz.
(8)% Lucky Friday
(Silver)
613,474 oz. 820,786 oz.
(25)% Casa Berardi
(Gold)
30,939 oz. 28,623 oz.
8%
Hecla expects to report second quarter financial results on
August 6, 2015.
About Hecla
Hecla Mining Company (NYSE:HL) is a leading low-cost U.S. silver
producer with operating mines in Alaska and Idaho, and is a gold
producer with an operating mine in Quebec, Canada. The Company also
has exploration and pre-development properties in six 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 second quarter 2015 operational
results and the Company’s cash on hand, are preliminary and reflect
the Company’s expected second quarter 2015 results as of the date
of this news release. Actual reported second quarter 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 annual and second quarter of
2015 silver production on a consolidated basis and at each of the
Greens Creek and Lucky Friday mines, annual and second quarter of
2015 gold production at Casa Berardi, and cash on hand. 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 10-K 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/20150716005333/en/
Hecla Mining CompanyMike WesterlundVice President - Investor
Relations800-HECLA91 (800-432-5291)Email:
hmc-info@hecla-mining.comWebsite: www.hecla-mining.com
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