Alexco acquisition is complete, Keno Hill
development advancing
Hecla Mining Company (NYSE: HL) today announced its preliminary
production results for the third quarter of 2022 and increased
silver and gold production guidance.1
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; approximately
20% 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 Greens Creek achieved record
throughput for the quarter, Lucky Friday’s quarterly production
continued to exceed 1 million ounces and the mine has already
produced around 90% of last year’s annual production, and Casa
Berardi delivered consistent production with the mill continuing
the record throughput rates,” said Phillips S. Baker, Jr.,
President, and CEO. “We also completed the acquisition of Alexco
and are advancing Keno Hill development for consistent mill
production in 2023.”
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 U.S. with the
potential to be Canada’s largest silver producer as well.”
OPERATIONS
Greens Creek
At the Greens Creek mine, the mill operated at an average of
2,500 tons per day (tpd), a throughput record, and an increase of
10% over the prior quarter. Silver production was 2.5 million
ounces, an increase of 2% over the prior quarter. Gold production
was 11,412 ounces, 8% lower than the second quarter of 2022 due to
lower grades. Zinc and lead grades declined 13% and 19%
respectively due to mine sequencing and heading availability. These
lower base metal feed grades resulted in the decision to defer a
silver concentrate shipment to October to ensure adequate
concentrate volumes for cost-effective shipping.
Lucky Friday
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.
Casa Berardi
Casa Berardi produced 33,335 ounces of gold, consistent with the
production in the prior quarter. The mill operated at an average
quarterly throughput of 4,239 tpd with a new record set in
September as monthly production throughput reached 4,856 tpd,
beating the last monthly record in May of 4,533 tpd.
(1)
See cautionary statement regarding preliminary statements at the
end of this release.
PRODUCTION SUMMARY
Three Months Ended
Nine Months Ended
September 30, 2022
June 30, 2022
September 30, 2022
September 30, 2021
PRODUCTION
Increase/
(Decrease)
Increase/
(Decrease)
Silver (ounces)
3,549,392
3,645,454
(3)%
10,519,553
9,660,313
9%
Gold* (ounces)
44,747
45,718
(2)%
132,108
153,349
(14)%
Lead (short tons)
11,601
13,331
(13)%
35,794
32,148
11%
Zinc (short tons)
15,859
16,766
(5)%
47,571
48,863
(3)%
Greens Creek – Silver (ounces)
2,468,279
2,410,599
2%
7,308,660
6,980,588
5%
Greens Creek – Gold (ounces)
11,412
12,413
(8)%
35,227
35,860
(2)%
Lucky Friday – Silver (ounces)
1,074,230
1,226,477
(12)%
3,188,565
2,608,726
22%
Casa Berardi – Gold (ounces)
33,335
33,306
0%
96,881
97,244
0%
(*) YTD gold production for the nine months ended September 30,
2021, includes production of 20,245 ounces from the Nevada
operations, which in 2022 are under care and maintenance.
2022 Production Outlook2
Silver Production
(Moz)
Gold Production (Koz)
Silver Equivalent
(Moz)
Gold Equivalent (Koz)
Greens Creek *
9.3 – 9.6
44 – 48
21.8 – 22.4
282 – 290
Lucky Friday *
4.3 – 4.5
N/A
8.6 – 8.8
112 – 114
Casa Berardi
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, Hecla Mining Company (NYSE: HL) is the largest
silver producer in the United States. In addition to operating
mines in Alaska, Idaho, 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.
NOTES
(2) Expectations for 2022 include silver, gold, lead and zinc
production from Greens Creek, Lucky Friday and Casa Berardi
converted using Au $1,700/oz, Ag $22/oz, Zn $1.50/lb., and Pb
$1.00/lb. Numbers may be rounded.
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) Keno Hill will be in
consistent production in 2023; (ii) the Company has the potential
to be the largest silver producer in the U.S. and Canada; (iii) the
Company will be able to achieve mine-specific and Company-wide 2022
estimates of future production and (iii) Lucky Friday throughput
expected to increase in the future. 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) certain price
assumptions for gold, silver, lead and zinc; (v) prices for key
supplies being approximately consistent with current levels; (vi)
the accuracy of our current mineral reserve and mineral resource
estimates; (vii) 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;
(viii) sufficient workforce is available and trained to perform
assigned tasks; (ix) weather patterns and rain/snowfall within
normal seasonal ranges so as not to impact operations; (x)
relations with interested parties, including Native Americans,
remain productive; and (xi) factors do not arise that reduce
available cash balances.
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 February 22, 2022, and Form
10-Q filed on August 5, 2022 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: https://www.businesswire.com/news/home/20221011005582/en/
For further information, please contact:
Anvita M. Patil Vice President – Investor Relations and
Treasurer
Cheryl Turner Communications Coordinator
800-HECLA91 (800-432-5291) Investor Relations Email:
hmc-info@hecla-mining.com Website: www.hecla-mining.com
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