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Hecla Announces Second Quarter Production

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Hecla Mining Company (NYSE:HL) has announced its preliminary production results for Q2 2024, highlighting a 10% year-to-date increase in silver production compared to 2023.

The Keno Hill mine achieved 1.5 million ounces of silver, with a throughput of 341 tons per day year-to-date, increasing to 406 tpd in Q2. Lucky Friday mine reported record quarterly throughput of 1,181 tpd, with a 23% increase in silver production over Q1.

Casa Berardi's gold production rose by 4%, while Greens Creek's silver and gold outputs declined by 9% and 3% respectively, due to lower grades and throughput. Hecla produced 4.5 million silver ounces in Q2, a 6% rise from Q1. The company's projected annual silver production is 17 million ounces for 2024, marking a nearly 20% growth from 2023.

The company also collected $17.8 million in insurance proceeds this quarter, totaling $35.2 million of the $50 million policy sub-limit. Despite significant achievements, Hecla continues to focus on improving safety and environmental practices, particularly at Keno Hill.

Positive
  • 10% increase in year-to-date silver production over 2023.
  • Keno Hill produced 1.5 million ounces of silver with increased throughput.
  • Record quarterly throughput at Lucky Friday of 1,181 tpd.
  • Lucky Friday silver production increased by 23% over Q1.
  • Casa Berardi gold production rose by 4%.
  • Hecla's total Q2 silver production was 4.5 million ounces, up 6% from Q1.
  • Projected 17 million ounces of silver production for 2024, a nearly 20% growth from 2023.
  • $17.8 million collected in insurance proceeds, totaling $35.2 million of $50 million policy.
Negative
  • Greens Creek's silver production decreased by 9% and gold by 3% compared to Q1.

Hecla Mining's preliminary production numbers for Q2 2024 indicate a 10% increase in silver production year-to-date compared to the same period in 2023. The rise to 4.5 million ounces of silver produced in the quarter, driven by heightened activity at Keno Hill and Lucky Friday, shows a significant improvement in their operational efficiency.

The 23% increase in production at Lucky Friday and the record throughput of 1,181 tons per day suggests Hecla's strategic investments in infrastructure are paying off. Financially, more ounces produced usually translates to higher revenues, given stable commodity prices.

Additionally, the company received $17.8 million in insurance proceeds during the quarter, bolstering its cash flow. This added financial cushion allows the company to focus on further improving operations without immediate financial stress.

On the downside, a 9% drop in silver production at Greens Creek due to grade reversion could raise concerns about the future consistency of outputs from this site. Investors should watch for future mitigation strategies or corrective measures that the company might take.

Overall, the report indicates solid growth and operational improvements, providing a positive outlook for Hecla's short-term financials and stock performance.

Hecla Mining's Q2 report showcases substantial growth in silver production, particularly with a 39% increase at Keno Hill. This aligns with broader market trends indicating rising demand for silver, often driven by industrial use and investor interest in precious metals. The company's aggressive production ramp-up positions it well within this context.

However, the ongoing attention to environmental and safety protocols at Keno Hill reflects a broader industry shift towards sustainable mining practices. While this is good for long-term operations and community relations, investors should be aware of potential short-term costs associated with these improvements.

The record throughput at Lucky Friday, achieved through infrastructure upgrades, signals that Hecla is effectively scaling operations. These operational efficiencies could make the company more resilient against fluctuating market prices.

From a market perspective, such performance improvements suggest that Hecla is well-positioned to capitalize on the growing demand for silver, likely resulting in favorable stock performance in the near term.

Hecla Mining's focus on improving the safety culture and environmental performance at Keno Hill highlights a critical aspect of contemporary mining practices. The company's proactive engagement with the First Nation of Na-Cho Nyäk Dun and acknowledgment of their positions are steps in the right direction for sustainable and socially responsible mining.

Ongoing investments in safety and environmental processes are essential for long-term operational stability and compliance with increasingly stringent regulatory requirements. These efforts also mitigate risks associated with environmental liabilities and potential legal challenges, fostering a more sustainable growth trajectory.

Despite the operational improvements, the environmental focus might incur additional costs, impacting profit margins in the short term. However, the long-term benefits include enhanced community relations, reduced environmental impact and potentially smoother permitting processes for future projects.

The company's environmental and safety initiatives are a positive step towards sustainable growth, aligning with broader industry trends and improving its long-term viability and reputation.

10% increase in silver production over year-to-date 2023

COEUR D'ALENE, Idaho--(BUSINESS WIRE)-- Hecla Mining Company (NYSE:HL) today announced its preliminary production results for the second quarter of 2024.

HIGHLIGHTS

Year to Date ("YTD") 2024 compared to YTD 2023

  • 10% increase in silver production
  • Keno Hill produced 1.5 million ounces of silver, with milled throughput of 341 tons per day ("tpd") YTD and 406 tpd in the second quarter
  • Record quarterly throughput at Lucky Friday of 1,181 tpd
  • 4% increase in Casa Berardi's gold production

“Hecla produced 4.5 million silver ounces during the quarter, an increase of 6% over the prior quarter, reflecting a full quarter of production at Lucky Friday with record throughput, improved throughput at Keno Hill and another solid performance by Greens Creek," said Cassie Boggs, Interim President and CEO. "At Keno Hill we continue to focus on improving the safety culture and environmental performance, positioning the mine for long term success and while our actions are starting to show positive results, more work is required at this operation. We are also in contact with and continue to monitor the positions of First Nation of Na-Cho Nyäk Dun, on whose Traditional Territory Keno Hill is partly located."

Boggs continued, “With Keno Hill's expected silver production to exceed 2.7 million ounces this year, Hecla is on track to produce about 17 million ounces in 2024, a nearly 20% growth rate from 2023, making Hecla the fastest growing established silver producer with production growth in the best geographical regions."

OPERATIONS

Greens Creek

Greens Creek produced 2.2 million ounces of silver and 14,137 ounces of gold in the second quarter, a decrease of 9% and 3%, respectively, compared to the first quarter, while processing 2,481 tpd. Silver production declined primarily due to grades reverting to plan resulting in a decrease of 6% compared to the first quarter, as well as slightly lower throughput.

Lucky Friday

Lucky Friday produced 1.3 million ounces of silver in the quarter, an increase of 23% over the first quarter, reflecting a full quarter of production compared to the first quarter when production resumed on January 9. Mill throughput was a quarterly record at 1,181 tpd, as the mine continues to see the benefit of investment in infrastructure and the UCB mining method. The Company collected $17.8 million in insurance proceeds during the quarter with total proceeds to date at $35.2 million of the $50 million policy sub-limit.

Casa Berardi

Casa Berardi produced 23,187 ounces of gold in the second quarter, an increase of 5% compared to the first quarter. Increased production during the quarter resulted from improved grades and recoveries, partly offset by lower throughput. The mill operated at an average of 4,033 tpd during the quarter.

Keno Hill

Keno Hill produced 900,440 ounces of silver, an increase of 39% compared with the 646,312 ounces produced in the first quarter. The increased production was due to higher and more consistent mill throughput that averaged 406 tpd, a 47% improvement over the first quarter. Silver grade was strong for the quarter averaging 25.1 ounces per ton.

While the Company’s focus on improving safety and environmental processes has delivered increased operational consistency, additional investment in infrastructure and continued focus on safety, environmental, permitting and mining practices, as well as relations with First Nation of Na-Cho Nyäk Dun remain key to delivering long term value at this operation.

PRODUCTION SUMMARY

 

Three Months Ended

 

Six Months Ended

 

 

June 30,

March 31,

 

June 30,

June 30,

 

 

2024

2024

 

2024

2023

 

Production

 

 

Increase/
(Decrease)

 

 

Increase/
(Decrease)

Silver (oz)

4,458,484

4,192,098

6 %

8,650,582

7,873,529

10 %

Gold (oz)

37,324

36,592

2 %

73,916

74,822

(1)%

Lead (tons)

13,586

12,100

12 %

25,686

26,307

(2)%

Zinc (tons)

16,191

16,211

(0)%

32,402

32,734

(1)%

Greens Creek - Silver (oz)

2,243,551

2,478,594

(9)%

4,722,145

5,128,533

(8)%

Greens Creek - Gold (oz)

14,137

14,588

(3)%

28,725

31,235

(8)%

Lucky Friday - Silver (oz)

1,308,155

1,061,065

23 %

2,369,220

2,549,130

(7)%

Keno Hill - Silver (oz)

900,440

646,312

39 %

1,546,752

184,264

739 %

Casa Berardi - Gold (oz)

23,187

22,004

5 %

45,191

43,587

4 %

(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 the United States. In addition to operating mines in Alaska, Idaho, and Quebec, Canada, the Company is developing a mine in the Yukon, Canada, and owns a number of exploration and pre-development projects in world-class silver and gold mining districts throughout North America.

Cautionary Statements Regarding Estimates and Forward-Looking Statements

All measures of the Company's second quarter 2024 operating results contained in this release are preliminary and reflect the Company’s expected results as of the date of this release. Actual reported second quarter 2024 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, that Keno Hill’s 2024 production is expected to exceed 2.7 million ounces. 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.

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.

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

What was Hecla Mining's (HL) silver production increase in Q2 2024?

Hecla Mining reported a 10% increase in year-to-date silver production compared to 2023.

How much silver did Keno Hill produce in Q2 2024?

Keno Hill produced 1.5 million ounces of silver in Q2 2024.

What was the throughput for Lucky Friday mine in Q2 2024?

Lucky Friday mine reported a record quarterly throughput of 1,181 tons per day in Q2 2024.

How did Casa Berardi's gold production change in Q2 2024?

Casa Berardi's gold production increased by 4% in Q2 2024 compared to Q1.

What is Hecla Mining's (HL) projected annual silver production for 2024?

Hecla Mining projects an annual silver production of 17 million ounces for 2024.

What amount of insurance proceeds did Hecla Mining (HL) collect in Q2 2024?

Hecla Mining collected $17.8 million in insurance proceeds in Q2 2024, totaling $35.2 million of the $50 million policy sub-limit.

How did Greens Creek's production change in Q2 2024?

Greens Creek's silver production decreased by 9% and gold by 3% in Q2 2024 compared to Q1.

Hecla Mining Company

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COEUR D'ALENE