Positive free cash flow generation from all
operations for the first nine months
Hecla Mining Company (NYSE:HL)
today announced third quarter 2022 financial and operating
results.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20221109005426/en/
Figure 1: Plan view showing drilling
locations and areas where assays have been received in relation to
the multiple ore zones at Greens Creek (Graphic: Business Wire)
THIRD QUARTER HIGHLIGHTS
- Record throughput at Greens Creek; Lucky Friday produced 1
million silver ounces for two consecutive quarters
- Consolidated silver production guidance increased, operating
and capital cost guidance maintained
- Deferred approximately $24 million in sales at Greens Creek and
Lucky Friday to the fourth quarter
- Keno Hill has completed 30% of total planned pre-production
development as of October 31, 2022
- Net loss applicable to common stockholders of $(23.7) million
or $(0.04) per share (basic), and adjusted net loss of $(12.0)
million or $(0.02) per share1
- Adjusted EBITDA of $26.6 million, net debt to adjusted EBITDA
ratio of 1.92
- All operations free cash flow positive year to date with total
cost of sales for silver of $246.4 million and all-in sustaining
cost (AISC) per silver ounce of $10.17
- $144.7 million in cash and cash equivalents with approximately
$260 million in available liquidity
- Positive drilling results at Keno Hill and Greens Creek with
intercepts in excess of 100 ounces of silver per ton at Keno Hill
and wide high-grade intercepts at Greens Creek
- Strong safety performance with an all-injury frequency rate of
1.32 for the first nine months, 37% below the U.S. average and an
improvement of 19% over the nine-month period in 2021
“Hecla reported another quarter of solid operational performance
as Greens Creek achieved its best ever throughput and Lucky
Friday's production exceeded 1 million ounces for the second
consecutive quarter,” said Phillips S. Baker Jr., President &
CEO. “Free cash flow generation was lower for the quarter due to
deferral of the sale of about a million ounces of silver and other
metals, increased capital investment in our mines, and Alexco
acquisition costs. All operations are free cash flow positive year
to date and reflect the strong margins at our silver operations
despite lower prices and an inflationary environment.”
Baker continued, “Hecla is the United States’ largest silver
miner, producing about 40% of all the silver mined. With Keno
Hill's pre-production development on plan, we should become
Canada's largest silver miner in the next few years.”
FINANCIAL OVERVIEW
"Total cost of sales" as used in this release is comprised of
cost of sales and other direct production costs and depreciation,
depletion and amortization.
In Thousands unless stated otherwise
Q3-2022
Q2-2022
Q1-2022
Q4-2021
Q3-2021
YTD-2022
YTD-2021
FINANCIAL AND OPERATIONAL
HIGHLIGHTS
Sales
$
146,339
$
191,242
$
186,499
$
185,078
$
193,560
$
524,080
$
622,395
Total cost of sales
$
137,892
$
153,979
$
141,070
$
131,837
$
158,332
$
432,941
$
457,835
Gross profit
$
8,447
$
37,263
$
45,429
$
53,241
$
35,228
$
91,139
$
164,560
(Loss) income applicable to common
stockholders
$
(23,664
)
$
(13,661
)
$
4,015
$
11,737
$
(1,117
)
$
(33,310
)
$
22,806
Basic (loss) income per common share (in
dollars)
$
(0.04
)
$
(0.03
)
$
0.01
$
0.02
$
—
$
(0.06
)
$
0.04
Adjusted EBITDA 2
$
26,554
$
70,474
$
58,202
$
58,249
$
49,414
$
155,230
$
220,531
Net Debt to Adjusted EBITDA2,*
1.9
1.1
Cash (used in) provided by operating
activities
$
(24,322
)
$
40,183
$
37,909
$
53,355
$
42,742
$
53,770
$
166,982
Capital Expenditures
$
(37,430
)
$
(34,329
)
$
(21,478
)
$
(28,838
)
$
(26,899
)
$
(93,237
)
$
(80,210
)
Free Cash Flow 3
$
(61,752
)
$
5,854
$
16,431
$
24,517
$
15,843
$
(39,467
)
$
86,772
Production Highlights
Silver ounces produced
3,549,392
3,645,454
3,324,708
3,226,927
2,676,084
10,525,917
9,660,313
Silver payable ounces sold
2,479,724
3,387,909
2,687,261
2,606,622
2,581,690
8,554,894
9,027,180
Gold ounces produced
44,747
45,719
41,707
47,977
42,207
132,173
153,350
Gold payable ounces sold
40,443
44,225
41,053
44,156
53,000
125,721
157,454
Cash Costs and AISC, each after
by-product credits4,5
Silver cash costs per ounce
$
3.43
$
(1.14
)
$
1.09
$
1.69
$
2.49
$
1.11
$
1.26
Silver AISC per ounce
$
14.20
$
8.55
$
7.64
$
10.08
$
12.82
$
10.17
$
8.88
Gold cash costs per ounce
$
1,349
$
1,371
$
1,516
$
1,143
$
1,163
$
1,409
$
1,127
Gold AISC per ounce
$
1,738
$
1,641
$
1,810
$
1,494
$
1,450
$
1,729
$
1,349
Realized Prices
Silver, $/ounce
$
18.30
$
20.68
$
24.68
$
23.49
$
23.97
$
21.25
$
25.75
Gold, $/ounce
$
1,713
$
1,855
$
1,880
$
1,802
$
1,792
$
1,817
$
1,794
Lead, $/pound
$
0.95
$
0.97
$
1.08
$
1.13
$
1.02
$
0.98
$
1.00
Zinc, $/pound
$
1.23
$
1.44
$
1.79
$
1.74
$
1.35
$
1.47
$
1.34
*Reflects trailing twelve months ending
September 30,2022. Reconciliations are available at the end of the
release.
Sales in the third quarter declined by $44.9 million compared to
the second quarter of 2022 primarily due to lower realized prices
for all metals, and lower revenue from the deferral of silver
concentrate shipments from Greens Creek and Lucky Friday to the
fourth quarter. Compared to the prior quarter, realized silver
prices have declined 12%, gold has declined 8%, lead and zinc
prices are lower by 2% and 15% respectively. In comparison to the
same quarter last year, gold prices are relatively unchanged, while
silver prices have declined by 24% with lead and zinc lower by 7%
and 9% respectively. The deferral of approximately 1 million ounces
of silver, 1,800 ounces of gold, and 1,300 tons of lead in the
silver concentrate shipments at Greens Creek was to ensure adequate
volumes of concentrate for cost-effective shipping. At Lucky Friday
the deferral was due to a planned multi week shutdown of the Trail
smelter for maintenance. This concentrate is being shipped to a new
customer and represents approximately 5% of Lucky Friday's annual
concentrate production.
Total cost of sales for silver were $76.7 million for the third
quarter and were lower by $14.2 million over the prior quarter due
to lower depreciation and higher product inventory. Cash costs and
AISC (each after by-product credits) for silver were $3.43 and
$14.20 per silver ounce respectively. Cash costs increased by $4.57
per ounce over the prior quarter primarily due to lower by-product
credits attributable to lower lead and zinc production as well as
lower prices. AISC increased by $5.65 per silver ounce over the
prior quarter due to the factors affecting cash costs.4,5
Total cost of sales for gold were $59.5 million and declined
marginally over the prior quarter. Gold cash cost per ounce, after
by-product credits, declined by $22 attributable to higher
production. AISC increased by $97 per ounce due to higher
sustaining capital and exploration spend partially offset by higher
production.4,5
Labor and the current inflationary environment are challenging
at all operations. Labor availability remains constrained in the
market with a shortage of skilled miners and maintenance workers.
Inflationary pressures have led to a 10-15% increase in costs since
the beginning of the year. Labor and input costs for steel,
reagents, fuel, and other consumables continue to remain elevated
impacting all the operations.
In the first half of the year, by-product credits helped offset
the inflationary pressures for the silver segment due to strong
by-product production as well as prices. However, lower base metal
production and prices in the third quarter reduced the by-product
credits. The inflationary environment is expected to remain
challenging for the fourth quarter and into 2023.
Loss applicable to common stockholders for the third quarter was
$(23.7) million, or $(0.04) per share, compared to a loss of
$(13.7) million, or $(0.03) per share, in the second quarter of
2022, impacted by the following factors:
- Gross profit decreased by $28.8 million primarily due to lower
revenues and higher per unit costs as described above
- Exploration and pre-development expenses increased by $3.9
million reflecting increased exploration and drilling activity
across Hecla's mines and projects during the exploration
season
- General and administrative expenses increased by $1.3 million
reflecting incremental costs following the Alexco acquisition
Partially offset by:
- A net foreign exchange gain of $5.7 million versus $4.5 million
in the prior quarter reflecting the appreciation of the U.S. dollar
(“USD”) against the Canadian dollar (“CAD”) during the current
quarter
- Lower unrealized losses on our investment portfolio of $10.6
million reflecting a smaller reduction in the fair value of the
portfolio compared to the prior quarter
- An income tax benefit of $9.5 million versus a provision of
$0.3 million in the prior quarter
Cash used in operating activities was $24.3 million, compared to
cash provided by operating activities of $40.2 million in the prior
quarter. However, cash provided before working capital changes
increased over the prior quarter. Working capital changes in the
third quarter were negative $36.7 million compared to $32.6 million
in the prior quarter, and are primarily related to an increase in
ending inventory from the deferral of silver concentrate shipments
at Greens Creek and Lucky Friday to the fourth quarter and
semi-annual interest payment on the outstanding debt.
Capital expenditures totaled $37.4 million, an increase of $3.1
million over the prior quarter as planned. Expenditures were at
Greens Creek of $7.0 million, Lucky Friday of $16.1 million, Casa
Berardi of $10.8 million, and Keno Hill of $3.6 million. Free cash
flow for the quarter was negative $61.8 million, a decline of $67.6
million over the prior quarter due to the increase in working
capital changes and higher capital spend.3
Forward Sales Contracts for Base Metals and Foreign
Currency
The Company uses financially settled forward sales contracts to
manage exposures to changes in prices of zinc and lead. At
September 30, 2022, the Company had contracts covering
approximately 39% of the forecasted payable zinc production
(through 2025) at an average price of $1.32 per pound, and 38% of
the forecasted payable lead production (through 2024) at an average
price of $1.00 per pound. The fair value of the net metal
derivative contracts on our forecasted hedges was an asset of $27.4
million, an increase of $11.3 million over the prior quarter.
The Company also manages CAD exposure through forward contracts.
At September 30, 2022, the Company had hedged approximately 52% of
forecasted CAD direct production costs for Casa Berardi through
2026 at an average CAD/USD rate of 1.31. The Company has also
hedged approximately 32% of capital costs for Casa Berardi for 2022
at 1.33. At the Keno Hill, 66% of planned spend for the fourth
quarter is hedged at an average CAD/USD rate of 1.34. The fair
value of the net currency derivatives contracts is a liability of
$10.8 million, an increase of $12.7 million over the prior
quarter.
OPERATIONS OVERVIEW Greens Creek Mine - Alaska
Dollars are in thousands except cost per
ton
Q3-2022
Q2-2022
Q1-2022
Q4-2021
Q3-2021
YTD-2022
YTD-2021
GREENS CREEK
Tons of ore processed
229,975
209,558
211,687
221,814
211,142
651,220
620,153
Total production cost per ton
$
185.34
$
197.84
$
192.16
$
174.55
$
181.60
$
191.58
$
178.29
Ore grade milled - Silver (oz./ton)
13.6
14.0
13.8
12.6
11.1
13.8
13.8
Ore grade milled - Gold (oz./ton)
0.07
0.08
0.07
0.07
0.07
0.07
0.08
Ore grade milled - Lead (%)
2.4
3.0
2.8
2.6
2.7
2.7
3.0
Ore grade milled - Zinc (%)
6.3
7.2
6.6
6.3
7.1
6.7
7.4
Silver produced (oz.)
2,468,280
2,410,598
2,429,782
2,262,635
1,837,270
7,308,660
6,980,587
Gold produced (oz.)
11,412
12,413
11,402
10,229
9,734
35,227
35,859
Lead produced (tons)
4,428
5,184
4,883
4,731
4,591
14,495
15,142
Zinc produced (tons)
12,580
13,396
12,494
12,457
13,227
38,470
41,191
Sales
$
60,875
$
92,723
$
86,090
$
87,865
$
84,806
$
239,688
$
296,978
Total cost of sales
$
(52,502
)
$
(60,506
)
$
(49,636
)
$
(49,251
)
$
(55,193
)
$
(162,644
)
$
(163,861
)
Gross profit
$
8,373
$
32,217
$
36,453
$
38,614
$
29,613
$
77,044
$
133,117
Cash flow from operations
$
7,749
$
41,808
$
56,295
$
50,632
$
40,626
$
105,852
$
157,387
Exploration
$
3,776
$
929
$
165
$
696
$
2,472
$
4,870
$
3,895
Capital additions
$
(6,988
)
$
(14,668
)
$
(3,092
)
$
(9,544
)
$
(6,228
)
$
(24,748
)
$
(14,339
)
Free cash flow 3
$
4,537
$
28,069
$
53,368
$
41,784
$
36,870
$
85,974
$
146,943
Cash cost per ounce, after by-product
credits4
$
2.65
$
(3.29
)
$
(0.90
)
$
0.50
$
0.74
$
(0.49
)
$
(1.03
)
AISC per ounce, after by-product
credits5
$
8.61
$
3.48
$
1.90
$
5.66
$
5.94
$
4.69
$
2.40
Greens Creek produced 2.5 million ounces of silver and the mill
achieved record mill throughput of 2,500 tons per day. Lead and
zinc production for the quarter declined 15% and 6% respectively
due to lower grades which led to the deferral of a silver
concentrate shipment into the fourth quarter to ensure adequate
volumes for cost effective shipping. Costs associated with the
shipment were included in inventory in the third quarter, and the
approximate revenue and cash flow impact of this deferral in the
fourth quarter is expected to be $18 million.
Cash cost per silver ounce increased by $5.94 over the prior
quarter primarily due to lower by-product credits. AISC per silver
ounce increased by $5.13 compared to the prior quarter due to the
reasons impacting cash costs, and increased exploration which was
partially offset by lower capital spending.4,5
Cash flow from operations for the quarter was $7.7 million, a
decline of $34.1 million over the prior quarter; free cash flow for
the quarter was $4.5 million, a decline of $23.5 million. For the
first nine months of the year, Greens Creek has generated $105.8
million in cash flow from operations and $86.0 million in free cash
flow respectively and remains on track to achieve its production
and cost guidance for the year.
Lucky Friday Mine - Idaho
Dollars are in thousands except cost per
ton
Q3-2022
Q2-2022
Q1-2022
Q4-2021
Q3-2021
YTD-2022
YTD-2021
LUCKY FRIDAY
Tons of ore processed
90,749
97,497
77,725
80,097
78,227
265,971
241,740
Total production cost per ton
$
207.10
$
211.45
$
247.17
$
198.83
$
190.66
$
220.41
$
189.06
Ore grade milled - Silver (oz./ton)
12.5
13.2
12.0
12.5
11.2
12.7
11.3
Ore grade milled - Lead (%)
8.5
8.8
8.2
8.1
7.2
8.5
7.4
Ore grade milled - Zinc (%)
4.2
3.9
3.6
3.3
3.3
3.9
3.5
Silver produced (oz.)
1,074,230
1,226,477
887,858
955,401
831,532
3,188,565
2,608,727
Lead produced (tons)
7,172
8,147
5,980
6,131
5,313
21,299
17,006
Zinc produced (tons)
3,279
3,370
2,452
2,296
2,319
9,101
7,673
Sales
$
28,460
$
35,880
$
38,040
$
32,938
$
29,783
102,380
98,550
Total cost of sales
$
(24,166
)
$
(30,348
)
$
(29,265
)
$
(23,252
)
$
(23,591
)
(83,779
)
$
(74,287
)
Gross profit
$
4,294
$
5,532
$
8,775
$
9,686
$
6,192
$
18,601
$
24,263
Cash flow from operations
$
11,624
$
21,861
$
11,765
$
16,953
$
15,017
$
45,250
$
45,641
Capital additions
$
(16,125
)
$
(11,501
)
$
(9,652
)
$
(9,109
)
$
(9,133
)
$
(37,278
)
(20,776
)
Free cash flow 3
$
(4,501
)
$
10,360
$
2,113
$
7,844
$
5,884
$
7,972
$
24,865
Cash cost per silver ounce, after
by-product credits4
$
5.23
$
3.07
$
6.57
$
4.50
$
6.35
$
4.77
$
7.37
AISC per silver ounce, after by-product
credits5
$
15.98
$
9.91
$
13.15
$
12.54
$
16.79
$
12.86
$
15.00
Lucky Friday produced 1.1 million ounces of silver during the
third quarter, a 12% decrease over the prior quarter due to lower
mined tons and feed grades attributable to mine sequencing,
commissioning of new equipment, and prioritization of projects for
increasing future throughput and production. The third quarter also
marked two consecutive quarters of throughput exceeding 90,000 tons
and silver production exceeding 1 million ounces.
At the Lucky Friday, 2,000 dry metric tonnes of silver
concentrate was inventoried to be shipped to a new customer in the
fourth quarter. Costs associated with the deferral of this
concentrate shipment were in inventory in the third quarter, and
impact on revenues and cash flow for the fourth quarter is expected
to be approximately $6.0 million. Total cost of sales was $24.2
million, a decrease of $6.2 million over the prior quarter due to
lower depreciation expense, an increase in concentrate inventory,
and lower ore volume mined and production. Cash cost and AISC per
silver ounce (each after by-product credits) were $5.23 and $15.98,
respectively, and higher compared to the prior quarter due to lower
production, and lower by-product credits because of lower base
metal production and prices.4,5
Casa Berardi Mine - Quebec
Dollars are in thousands except cost per
ton
Q3-2022
Q2-2022
Q1-2022
Q4-2021
Q3-2021
YTD-2022
YTD-2021
CASA BERARDI
Tons of ore processed – underground
162,215
176,576
161,609
161,355
167,435
500,400
533,262
Tons of ore processed – surface pit
227,726
225,042
224,541
225,662
230,708
677,309
607,967
Tons of ore processed – total
389,941
401,618
386,150
387,017
398,143
1,177,709
1,141,229
Surface tons mined – ore and waste
2,822,906
2,149,412
1,892,339
1,507,457
1,483,231
6,864,657
4,996,522
Total production cost per ton
$
114.52
$
113.07
$
117.96
$
108.82
$
86.95
115.15
$
95.13
Ore grade milled – Gold (oz./ton) –
underground
0.15
0.19
0.14
0.17
0.16
0.17
0.16
Ore grade milled – Gold (oz./ton) -
surface pit
0.06
0.05
0.05
0.07
0.04
0.06
0.06
Ore grade milled – Gold (oz./ton) –
combined
0.10
0.10
0.09
0.11
0.09
0.09
0.10
Gold produced (oz.) – underground
22,181
22,866
19,374
22,910
24,170
64,421
75,180
Gold produced (oz.) – surface pit
11,154
10,440
10,866
14,356
5,552
32,460
22,065
Gold produced (oz.) – total
33,335
33,306
30,240
37,266
29,722
96,881
97,245
Silver produced (oz.) – total
6,882
8,379
7,068
7,967
7,012
22,329
25,604
Sales
$
56,939
$
62,639
$
62,101
$
60,054
$
56,065
$
181,679
$
185,098
Total cost of sales
$
(59,532
)
$
(61,870
)
$
(62,168
)
$
(57,069
)
$
(58,164
)
$
(183,570
)
$
(172,760
)
Gross profit/(loss)
$
(2,593
)
$
769
$
(67
)
$
2,985
$
(2,099
)
(1,891
)
$
12,338
Cash flow from operations
$
8,721
$
7,417
$
8,089
$
10,029
$
17,058
$
24,227
$
71,164
Exploration
$
2,624
$
1,341
$
2,635
$
2,124
$
4,382
$
6,600
$
3,551
Capital additions
$
(10,771
)
$
(8,093
)
$
(7,808
)
$
(9,537
)
$
(11,488
)
$
(26,672
)
$
(40,080
)
Free cash flow 3
$
574
$
665
$
2,916
$
2,616
$
9,952
$
4,155
$
34,635
Cash Cost per gold ounce, after by-product
credits4
$
1,349
$
1,371
$
1,516
$
1,137
$
1,175
$
1,409
$
1,127
AISC per gold ounce, after by-product
credits5
$
1,738
$
1,641
$
1,810
$
1,470
$
1,476
$
1,729
$
1,387
Casa Berardi produced 33,335 ounces of gold compared to 33,306
ounces in the prior quarter. The mill continues to perform well and
operated at an average quarterly throughput of 4,239 tons per day
("tpd") with a new record set in September as monthly production
throughput reached 4,856 tpd, beating the last monthly record in
May 2022 of 4,533 tpd.
Total cost of sales for the third quarter 2022 was $59.5
million, a reduction of $2.3 million from the $61.9 million in the
prior quarter. Cash cost per gold ounce decreased by $22 over the
prior quarter to $1,349 primarily due to higher production. AISC
per gold ounce increased by $97 to $1,738 driven by higher
exploration and capital spend partially offset by higher
production.4,5
Keno Hill - Yukon Territory
At the Keno Hill mine, focus is on development and drilling of
the Bermingham and Flame & Moth deposits to bring the mine into
full and consistent production by the end of 2023. As of October
31, 2022, 30% of total planned pre-production development is
complete, and we expect to complete approximately 50% of the
development by the end of the fourth quarter.
Fourth quarter capital spending is forecast at $10-$12 million
for development, infill drilling, and equipment purchases. Since
the acquisition, Keno Hill is seeing its lowest turnover in the
mine's recent history and is expected to achieve the hiring rate
for production. We are implementing Hecla's Health and Safety
Management System and Environmental Management System in the fourth
quarter.
EXPLORATION AND PRE-DEVELOPMENT UPDATE
Exploration and pre-development expenditures were $15.1 million
for the quarter with focus on exploration drilling at Keno Hill,
exploration and definition drilling at Greens Creek, underground
drilling at the West Mine in Casa Berardi, and exploration drilling
at the large land packages at Aurora, Nevada and Republic,
Washington.
Keno Hill, Yukon Territory
Exploration drilling on the underexplored Coral Wigwam target
area has discovered high-grade silver mineralization. Assay results
to date include 101.5 oz/ton silver over 7.3 feet estimated true
width.
Greens Creek, Alaska
At Greens Creek, drilling has focused on resource expansion and
conversion which have yielded positive results. Three underground
core drills are focused on resource conversion in the 200 South and
East ore zones and on exploration in the East, 5250, 200 South, and
Gallagher Fault Block zones. Additionally, two helicopter supported
core drills are focused on drilling extensions to the Upper Plate
Zone near the mine and the Lil’Sore target area approximately 3
miles northwest of the mine. These positive results continue to
confirm and expand mineral zones. Significant assay intercepts for
different zones are:
- Southwest Bench: 74.3 oz/ton silver, 0.52 oz/ton gold, 5.7%
zinc and 2.9% lead over 10.5 feet and 25.7 oz/ton silver, 0.15
oz/ton gold, 6.4% zinc, and 3.1% lead over 20.1 feet
- 200 South: 18.5 oz/ton silver, 0.02 oz/ton gold, 2.6% zinc, and
1.1% lead over 44.7 feet
- East Zone: 51.6 oz/ton silver, 0.05 oz/ton gold, 0.1% zinc, and
0.0% lead over 11.1 feet and 227.8 oz/ton silver, 2.84 oz/ton gold,
4.2% zinc, and 0.4% lead over 2.9 feet
- West Zone: 37.0 oz/ton silver, 0.26 oz/ton gold, 18.3% zinc,
and 9.5% lead over 47.2 feet and 55.2 oz/ton silver, 0.16 oz/ton
gold, 16.5% zinc, and 8.9% lead over 31.2 feet
Detailed complete drill assay highlights can be found in Table A
at the end of the release.
Figure 1: Plan view showing drilling locations and areas where
assays have been received in relation to the multiple ore zones at
Greens Creek
Casa Berardi, Quebec
At Casa Berardi, up to seven underground core drills and one
surface core drill were focused on definition and exploration
drilling in multiple zones and target areas and one surface core
drill was focused on condemnation drilling.
Drilling targeted the 113, 118, 119 and Lower Inter zones. In
the 113 Zone, two drill rigs are testing offsets and depth
extensions of multiple 113 lenses. In the 118 Zone, drilling has
been focused on defining continuity and expanding mineralization in
the 118-14, and 118-15 lenses up and down plunge and to the east.
Most of the 118 drilling has been showing good vertical continuity
of mineralization. The drilling targeting the 119-02 lens show that
the structure remains open at depth while closing to the east.
Highlights include:
- 113: 0.56 oz/ton gold over 9.5 feet, including 1.61 oz/ton gold
over 2.6 feet
- 118: 0.20 oz/ton gold over 8.2 feet
- 119: 0.16 oz/t gold over 14.8 feet.
More complete drill assay highlights can be found in Table A at
the end of the release.
Aurora, Nevada
Exploration drilling has confirmed wide and high-grade vein
mineralization along the Martinez-Juniata-Chesco mineral trend.
This mineralization continues to be open for expansion along strike
and dip. Some significant intercepts are:
- Martinez Zone: 0.40 oz/ton gold and 1.8 oz/t silver over 31.1
feet estimated true width, which includes 1.26 oz/ton gold and 4.4
oz/t silver over 6.7 feet estimated true width.
- Juniata Zone: 0.43 oz/ton gold and 1.9 oz/ton silver over 14.9
feet estimated true width, which includes 0.76 oz/ton gold, 3.5
oz/ton silver over 8.0 feet estimated true width.
- Chesco Zone: 0.73 oz/ton gold and 7.7 oz/ton silver over 12.2
feet estimated true width
Republic, Washington
Exploration drilling identified high-grade vein mineralization
at both the Lone Pine-Blacktail and Tom Thumb target areas. Wide
zones of lower grade, potentially bulk mineable, material surround
some of the high-grade vein intercepts at Lone Pine-Blacktail.
Drilling also discovered an offset segment of the Tom Thumb Vein
850 feet across the Mud Lake Fault into the basin.
DIVIDENDS
Common Stock
The Board of Directors declared a quarterly cash dividend of
$0.00375 per share of common stock for the minimum dividend
component. The common stock dividend is payable on or about
December 7, 2022, to stockholders of record on November 25, 2022.
The realized silver price was $18.30 per ounce in the third quarter
and did not satisfy the criterion for the silver-linked component
under the Company's common stock dividend policy.
Preferred Stock
The Board of Directors elected to declare a quarterly cash
dividend of $0.875 per share of preferred stock, payable on or
about January 3, 2023, to stockholders of record on December 15,
2022.
2022 GUIDANCE
The Company has reaffirmed its guidance for annual production,
cost, and exploration and pre-development. The Company is
maintaining its consolidated capital guidance with lower forecasted
capital spend at the Lucky Friday and Casa Berardi due to timing of
expenditures, offset by the inclusion of Keno Hill.
(millions)
Previous
Current
Capital expenditures
$150 - $160
$150 - $160
Greens Creek
$42 - $45
$42 - $45
Lucky Friday
$60 - $64
$56 - $58
Casa Berardi
$45 - $48
$42 - $45
Keno Hill
NA
$10 - $12
CONFERENCE CALL AND WEBCAST
A conference call and webcast will be held Wednesday, November
9, 2022 at 10:00 a.m. Eastern Standard Time to discuss these
results. You may join the conference call by dialing toll-free
1-888-330-2391 or for international dialing 1-240-789-2702. The
Conference ID is 4812168. Please dial-in and provide the Conference
ID number at least 10 minutes prior to the start time to join the
call and mitigate any hold times. Hecla's live and archived webcast
can be accessed at www.hecla-mining.com under Investors/Events
& Webcasts.
ONE ON ONE CALLS
Hecla will make available members of management for one on one
calls with any interested parties on Wednesday, November 9, from
12:00 p.m. to 2:00 p.m. Eastern Standard Time.
Hecla invites stockholders, investors, and other interested
parties to schedule a personal, 30-minute virtual meeting (video or
telephone) with a member of management to discuss operations,
exploration, or general matters. Click on the link below to
schedule a call (or copy and paste the link into your web browser.)
You can select a topic once you have entered the meeting calendar.
If you are unable to book a time, either due to high demand or for
other reasons, please reach out to Anvita M. Patil, Vice President
- Investor Relations and Treasurer at hmc-info@hecla-mining.com or
208-769-4100.
One-on-One meeting URL:
https://calendly.com/2022-november-vie
ABOUT HECLA
Founded in 1891, Hecla 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
Non-GAAP Financial Measures
Non-GAAP financial measures are intended to provide additional
information only and do not have any standard meaning prescribed by
United States generally accepted accounting principles (GAAP).
These measures should not be considered in isolation or as a
substitute for measures of performance prepared in accordance with
GAAP. The non-GAAP financial measures cited in this release and
listed below are reconciled to their most comparable GAAP measure
at the end of this release.
(1) Adjusted net income (loss) applicable to common stockholders
is a non-GAAP measurement, a reconciliation of which to net income
(loss) applicable to common stockholders, the most comparable GAAP
measure, can be found at the end of the release. Adjusted net
income (loss) is a measure used by management to evaluate the
Company's operating performance but should not be considered an
alternative to net income (loss) as defined by GAAP. They exclude
certain impacts which are of a nature which we believe are not
reflective of our underlying performance. Management believes that
adjusted net income (loss) per common share provides investors with
the ability to better evaluate our underlying operating
performance.
(2) Adjusted EBITDA is a non-GAAP measurement, a reconciliation
of which to net income(loss), the most comparable GAAP measure, can
be found at the end of the release. Adjusted EBITDA is a measure
used by management to evaluate the Company's operating performance
but should not be considered an alternative to net income, or cash
provided by operating activities as those terms are defined by
GAAP, and does not necessarily indicate whether cash flows will be
sufficient to fund cash needs. In addition, the Company may use it
when formulating performance goals and targets under its incentive
program. Net debt to adjusted EBITDA is a non-GAAP measurement, a
reconciliation of which to debt and net income (loss), the most
comparable GAAP measurements, can be found at the end of the
release. It is an important measure for management to measure
relative indebtedness and the ability to service the debt relative
to its peers. It is calculated as total debt outstanding less total
cash on hand divided by adjusted EBITDA.
(3) Free cash flow is a non-GAAP measure calculated as cash
provided by operating activities less additions to properties,
plants and equipment. Free cash flow for Greens Creek, Lucky Friday
and Casa Berardi adjusts cash provided by operating activities by
excluding exploration and pre-development expense, as it is a
discretionary expenditure and not a component of the mines’
operating performance.
(4) Cash cost, after by-product credits, per silver and gold
ounce is a non-GAAP measurement, a reconciliation of which to total
cost of sales, can be found at the end of the release. It is an
important operating statistic that management utilizes to measure
each mine's operating performance. It also allows the benchmarking
of performance of each mine versus those of our competitors. As a
primary silver mining company, management also uses the statistic
on an aggregate basis - aggregating the Greens Creek and Lucky
Friday mines - to compare performance with that of other silver
mining companies, and aggregating Casa Berardi and the Nevada
operations, to compare its performance with other gold mining
companies. Similarly, the statistic is useful in identifying
acquisition and investment opportunities as it provides a common
tool for measuring the financial performance of other mines with
varying geologic, metallurgical and operating characteristics. In
addition, the Company may use it when formulating performance goals
and targets under its incentive program.
(5) All-in sustaining cost (AISC), after by-product credits, is
a non-GAAP measurement, a reconciliation of which to cost of sales
and other direct production costs and depreciation, depletion and
amortization, the closest GAAP measurement, can be found in the end
of the release. AISC, after by-product credits, includes total cost
of sales, expenses for reclamation and exploration at the mines
sites, corporate exploration related to sustaining operations, and
all site sustaining capital costs. AISC, after by-product credits,
is calculated net of depreciation, depletion, and amortization and
by-product credits.
Current GAAP measures used in the mining industry, such as cost
of goods sold, do not capture all the expenditures incurred to
discover, develop and sustain silver and gold production.
Management believes that all-in sustaining costs is a non-GAAP
measure that provides additional information to management,
investors and analysts to help (i) in the understanding of the
economics of our operations and performance compared to other
producers and (ii) in the transparency by better defining the total
costs associated with production. Similarly, the statistic is
useful in identifying acquisition and investment opportunities as
it provides a common tool for measuring the financial performance
of other mines with varying geologic, metallurgical and operating
characteristics. In addition, the Company may use it when
formulating performance goals and targets under its incentive
program.
Cautionary Statements to Investors on Forward-Looking
Statements
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. 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) the Company could be
the largest silver producer in the U.S. and Canada; (ii) the
Company will be able to bring Keno Hill into full and consistent
production before the end of 2023; (iii) the Company will be able
to increase throughput and increase future production at the Lucky
Friday; (iv) the Company will achieve 50% of planned pre-production
development at Keno Hill by the end of 2022 and will achieve full
and consistent production by year end 2023 with the hiring rate
required for production; and (v) mine-specific and Company-wide
2022 estimates of future production, sales and costs of sales, as
well as cash cost and AISC per ounce (in each case after by-product
credits) and Company-wide estimated spending on capital,
exploration and pre-development for 2022. 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) 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; (ix) counterparties performing their obligations
under hedging instruments and put option contracts; (x) sufficient
workforce is available and trained to perform assigned tasks; (xi)
weather patterns and rain/snowfall within normal seasonal ranges so
as not to impact operations; (xii) relations with interested
parties, including Native Americans, remain productive; (xiii)
maintaining availability of water rights; (xiv) factors do not
arise that reduce available cash balances; and (xv) 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; (vi)
conflict resolution and outcome of projects or oppositions; (vii)
litigation, political, regulatory, labor and environmental risks;
(viii) exploration risks and results, including that mineral
resources are not mineral reserves, they do not have demonstrated
economic viability and there is no certainty that they can be
upgraded to mineral reserves through continued exploration; (ix)
the failure of counterparties to perform their obligations under
hedging instruments; (x) the Company takes a material impairment
charge on its Nevada operations; and (xi) the Company is unable to
remain in compliance with all terms of its credit agreement in
order to maintain continued access to the revolver. For a more
detailed discussion of such risks and other factors, see the
Company’s 2021 Form 10-K, filed with the Securities and Exchange
Commission (SEC) on February 23, 2022 and Form 10-Q filed with the
SEC on August 5, 2022 for a more detailed discussion of factors
that may impact expected future results, as well as the Company’s
other SEC filings. The Company does not undertake any obligation to
release publicly revisions to any “forward-looking statement,”
including, without limitation, outlook, to reflect events or
circumstances after the date of this news release or to reflect the
occurrence of unanticipated events, except as may be required under
applicable securities laws. Investors should not assume that any
lack of update to a previously issued “forward-looking statement”
constitutes a reaffirmation of that statement. Continued reliance
on “forward-looking statements” is at investors’ own risk.
Qualified Person (QP)
Kurt D. Allen, MSc., CPG, VP - Exploration of Hecla Mining
Company and Keith Blair, MSc., CPG, Chief Geologist of Hecla
Limited, who serve as a Qualified Person under S-K 1300 and NI
43-101, supervised the preparation of the scientific and technical
information concerning Hecla’s mineral projects in this news
release. Technical Report Summaries (each a “TRS”) for each of the
Company’s material properties are filed as exhibits 96.1, 96.2 and
96.3 to the Company’s Annual Report on Form 10-K for the year ended
December 31, 2021, and are available at www.sec.gov. Information
regarding data verification, surveys and investigations, quality
assurance program and quality control measures and a summary of
analytical or testing procedures for (i) the Greens Creek Mine are
contained in its TRS and in a NI 43-101 technical report titled
“Technical Report for the Greens Creek Mine” effective date
December 31, 2018, (ii) the Lucky Friday Mine are contained in its
TRS and in its technical report titled “Technical Report for the
Lucky Friday Mine Shoshone County, Idaho, USA” effective date April
2, 2014, (iii) Casa Berardi are contained in its TRS and in its
technical report titled “Technical Report on the mineral resource
and mineral reserve estimate for Casa Berardi Mine, Northwestern
Quebec, Canada” effective date December 31, 2018, and (iv) the San
Sebastian Mine, Mexico, are contained in a technical report
prepared for Hecla titled “Technical Report for the San Sebastian
Ag-Au Property, Durango, Mexico” effective date September 8, 2015.
Also included in each TRS and the four technical reports is a
description of the key assumptions, parameters and methods used to
estimate mineral reserves and resources and a general discussion of
the extent to which the estimates may be affected by any known
environmental, permitting, legal, title, taxation, socio-political,
marketing, or other relevant factors. Information regarding data
verification, surveys and investigations, quality assurance program
and quality control measures and a summary of sample, analytical or
testing procedures are contained in technical reports prepared for
Klondex Mines Ltd. for (i) the Fire Creek Mine (technical report
dated March 31, 2018), (ii) the Hollister Mine (technical report
dated May 31, 2017, amended August 9, 2017), and (iii) the Midas
Mine (technical report dated August 31, 2014, amended April 2,
2015). Copies of these technical reports are available under
Hecla’s profile on SEDAR at www.sedar.com. Mr. Allen and Mr. Blair
reviewed and verified information regarding drill sampling, data
verification of all digitally collected data, drill surveys and
specific gravity determinations relating to all the mines. The
review encompassed quality assurance programs and quality control
measures including analytical or testing practice, chain-of-custody
procedures, sample storage procedures and included independent
sample collection and analysis. This review found the information
and procedures meet industry standards and are adequate for Mineral
Resource and Mineral Reserve estimation and mine planning
purposes.
HECLA MINING COMPANY
Condensed Consolidated Statements
of Operations
(dollars and shares in thousands,
except per share amounts - unaudited)
Three Months Ended
Nine Months Ended
September 30, 2022
September 30, 2021
September 30, 2022
September 30, 2021
Sales
$
146,339
$
193,560
$
524,080
$
622,395
Cost of sales and other direct production
costs
104,900
112,542
326,579
318,917
Depreciation, depletion and
amortization
32,992
45,790
106,362
138,918
Total cost of sales
137,892
158,332
432,941
457,835
Gross profit
8,447
35,228
91,139
164,560
Other operating expenses:
General and administrative
11,003
8,874
28,989
27,985
Exploration and pre-development
15,128
17,108
39,136
35,039
Care and maintenance costs
5,092
6,910
16,539
17,014
Provision for closed operations and
environmental matters
1,781
7,564
4,154
12,297
Other operating expense
902
3,344
5,310
10,626
Total other operating expenses
33,906
43,800
94,128
102,961
(Loss) income from operations
(25,459
)
(8,572
)
(2,989
)
61,599
Other income (expense):
Interest expense
(10,874
)
(10,469
)
(31,785
)
(31,484
)
Fair value adjustments, net
(4,240
)
9,287
(14,703
)
(10,651
)
Net foreign exchange gain (loss)
5,667
3,995
8,111
24
Other income (expense)
1,853
247
4,828
(192
)
Total other (expense) income
(7,594
)
3,060
(33,549
)
(42,303
)
(Loss) income before income and mining
taxes
(33,053
)
(5,512
)
(36,538
)
19,296
Income and mining tax (provision)
benefit
9,527
4,533
3,642
3,924
Net (loss) income
(23,526
)
(979
)
(32,896
)
23,220
Preferred stock dividends
(138
)
(138
)
(414
)
(414
)
(Loss) income applicable to common
stockholders
$
(23,664
)
$
(1,117
)
$
(33,310
)
$
22,806
Basic (loss) income per common share after
preferred dividends
$
(0.04
)
$
—
$
(0.06
)
$
0.04
Weighted average number of common shares
outstanding – basic
554,531
536,966
544,000
535,542
Weighted average number of common shares
outstanding – diluted
554,531
536,966
544,000
541,769
HECLA MINING COMPANY
Condensed Consolidated Statements
of Cash Flows
(dollars in thousands -
unaudited)
Quarter Ended
Nine Months Ended
September 30, 2022
September 30, 2021
September 30, 2022
September 30, 2021
OPERATING ACTIVITIES
Net (loss) income
$
(23,526
)
$
(979
)
$
(32,896
)
$
23,220
Non-cash elements included in net (loss)
income
Depreciation, depletion and
amortization
33,087
46,939
106,743
139,800
Write-down of inventory
1,405
93
2,159
6,524
Fair value adjustments, net
17,671
(13,192
)
3,486
(7,978
)
Provision for reclamation and closure
costs
1,518
1,638
4,789
7,821
Stock compensation
1,773
1,472
4,298
4,774
Deferred income taxes
(16,538
)
(10,141
)
(17,828
)
(17,886
)
Foreign exchange loss (gain)
(4,911
)
(3,842
)
(8,353
)
615
Other non-cash items, net
1,472
98
2,454
1,167
Change in assets and liabilities:
Accounts receivable
15,589
5,634
34,788
(3,798
)
Inventories
(11,120
)
16,653
(19,472
)
22,372
Other current and non-current assets
(2,526
)
(2,475
)
(3,420
)
1,650
Accounts payable, accrued and other
current liabilities
(38,827
)
(8,200
)
(21,708
)
(14,689
)
Accrued payroll and related benefits
1,401
3,522
1,679
(1,829
)
Accrued taxes
3,031
3,729
(2,652
)
2,730
Accrued reclamation and closure costs and
other non-current liabilities
(3,821
)
1,793
(297
)
2,489
Cash provided by operating
activities
(24,322
)
42,742
53,770
166,982
INVESTING ACTIVITIES
Additions to properties, plants, equipment
and mineral interests
(37,430
)
(26,899
)
(93,237
)
(80,210
)
Proceeds from sale of investments
6,888
—
9,375
—
Proceeds from disposition of properties,
plants and equipment
18
431
748
562
Purchases of investments
(8,641
)
—
(30,540
)
—
Proceeds from exchange of investments
—
1,811
—
1,811
Purchase of carbon credits
—
(200
)
—
(200
)
Acquisition, net
8,952
—
8,952
—
Pre-acquisition advance to Alexco
(25,000
)
—
(25,000
)
—
Changes in restricted cash and investment
balances
2,011
—
2,011
—
Net cash used in investing
activities
(53,202
)
(24,857
)
(127,691
)
(78,037
)
FINANCING ACTIVITIES
Draw on revolving credit facility
25,000
—
25,000
—
Proceeds from issuance of stock, net of
related costs
4,542
—
4,542
—
Acquisition of treasury shares
—
—
(3,677
)
(4,525
)
Dividends paid to common and preferred
stockholders
(3,522
)
(6,178
)
(10,549
)
(17,169
)
Credit facility fees paid
(443
)
(26
)
(517
)
(108
)
Repayments of finance leases
(1,889
)
(1,828
)
(5,222
)
(5,598
)
Net cash used in financing
activities
23,688
(8,032
)
9,577
(27,400
)
Effect of exchange rates on cash
517
(443
)
(804
)
(471
)
Net increase (decrease) in cash, cash
equivalents and restricted cash
(53,319
)
9,410
(65,148
)
61,074
Cash, cash equivalents and restricted cash
at beginning of period
199,234
$
182,547
211,063
130,883
Cash, cash equivalents and restricted cash
at end of period
$
145,915
$
191,957
$
145,915
$
191,957
Supplemental disclosure of cash flow
information:
Cash paid for interest
$
18,430
$
18,674
$
37,179
$
37,173
Cash paid for income and mining taxes,
net
$
1,173
$
830
$
13,061
$
10,299
HECLA MINING COMPANY
Condensed Consolidated Balance
Sheets
(dollars and shares in thousands
- unaudited)
September 30, 2022
December 31, 2021
ASSETS
Current assets:
Cash and cash equivalents
$
144,669
$
210,010
Accounts receivable:
Trade
12,477
36,437
Other, net
12,846
8,149
Inventories
92,005
67,765
Derivative assets
7,190
2,709
Other current assets
14,733
16,557
Total current assets
283,920
341,627
Investments
13,299
10,844
Restricted cash
1,246
1,053
Properties, plants, equipment and mineral
interests, net
2,553,974
2,310,810
Operating lease right-of-use asset
11,632
12,435
Deferred income taxes
45,562
45,562
Derivative assets
20,794
2,503
Other non-current assets
4,202
3,974
Total assets
$
2,934,629
$
2,728,808
LIABILITIES
Current liabilities:
Accounts payable and accrued
liabilities
$
87,850
$
68,100
Accrued payroll and related benefits
26,385
28,714
Accrued taxes
7,344
12,306
Finance and operating leases
12,489
8,098
Derivative liabilities
5,774
19,353
Other current liabilities
10,949
14,553
Accrued reclamation and closure costs
10,594
9,259
Total current liabilities
161,385
160,383
Finance and operating leases
20,242
17,726
Accrued reclamation and closure costs
105,717
103,972
Long-term debt
530,745
508,095
Deferred tax liability
154,225
149,706
Derivative liabilities
5,560
18,528
Other non-current liabilities
1,987
9,611
Total liabilities
979,861
968,021
STOCKHOLDERS’ EQUITY
Preferred stock
39
39
Common stock
150,839
136,391
Capital surplus
2,241,649
2,034,485
Accumulated deficit
(397,096
)
(353,651
)
Accumulated other comprehensive income
(loss)
(8,965
)
(28,456
)
Treasury stock
(31,698
)
(28,021
)
Total stockholders’ equity
1,954,768
1,760,787
Total liabilities and stockholders’
equity
$
2,934,629
$
2,728,808
Common shares outstanding
603,702
545,535
Non-GAAP Measures (Unaudited)
Reconciliation of Cost of Sales (GAAP) to Cash Cost, Before
By-product Credits and Cash Cost, After By-product Credits
(non-GAAP) and All-In Sustaining Cost, Before By-product Credits
and All-In Sustaining Cost, After By-product Credits
(non-GAAP)
The tables below present reconciliations between the most
comparable GAAP measure of cost of sales and other direct
production costs and depreciation, depletion and amortization to
the non-GAAP measures of Cash Cost, Before By-product Credits, Cash
Cost, After By-product Credits, AISC, Before By-product Credits and
AISC, After By-product Credits for our operations at the Greens
Creek , Lucky Friday, Casa Berardi and Nevada Operations units for
the nine month periods ended September 30, 2022 and 2021 and the
three month periods ended September 30, June 30 and March 31,
2022.
Cash Cost, After By-product Credits, per Ounce and AISC, After
By-product Credits, per Ounce are measures developed by precious
metals companies (including the Silver Institute and the World Gold
Council) in an effort to provide a uniform standard for comparison
purposes. There can be no assurance, however, that these non-GAAP
measures as we report them are the same as those reported by other
mining companies.
Cash Cost, After By-product Credits, per Ounce is an important
operating statistic that we utilize to measure each mine's
operating performance. AISC, After By-product Credits, per Ounce is
an important operating statistic that we utilize as a measures of
our mines' net cash flow after costs for exploration,
pre-development, reclamation, and sustaining capital. Current GAAP
measures used in the mining industry, such as cost of goods sold,
do not capture all the expenditures incurred to discover, develop
and sustain silver and gold production. Cash Cost, After By-product
Credits, per Ounce and AISC, After By-product Credits, per Ounce
also allow us to benchmark the performance of each of our mines
versus those of our competitors. As a silver and gold mining
company, we also use these statistics on an aggregate basis -
aggregating the Greens Creek and Lucky Friday mines - to compare
our performance with that of other silver mining companies, and
aggregating Casa Berardi and Nevada Operations for comparison to
other gold mining companies. Similarly, these statistics are useful
in identifying acquisition and investment opportunities as they
provide a common tool for measuring the financial performance of
other mines with varying geologic, metallurgical and operating
characteristics.
Cash Cost, Before By-product Credits and AISC, Before By-product
Credits include all direct and indirect operating cash costs
related directly to the physical activities of producing metals,
including mining, processing and other plant costs, third-party
refining expense, on-site general and administrative costs,
royalties and mining production taxes. AISC, Before By-product
Credits for each mine also includes on-site exploration,
reclamation, and sustaining capital costs. AISC, Before By-product
Credits for our consolidated silver properties also includes
corporate costs for general and administrative expense,
reclamation, exploration, and pre-development. By-product credits
include revenues earned from all metals other than the primary
metal produced at each unit. As depicted in the tables below,
by-product credits comprise an essential element of our silver unit
cost structure, distinguishing our silver operations due to the
polymetallic nature of their orebodies. Cash Cost, After By-product
Credits, per Ounce and AISC, After By-product Credits, per Ounce
provide management and investors an indication of operating cash
flow, after consideration of the average price, received from
production. We also use these measurements for the comparative
monitoring of performance of our mining operations period-to-period
from a cash flow perspective.
The Casa Berardi, Nevada Operations and combined gold properties
information below reports Cash Cost, After By-product Credits, per
Gold Ounce and AISC, After By-product Credits, per Gold Ounce for
the production of gold, its primary product, and by-product
revenues earned from silver, which is a by-product at Casa Berardi
and Nevada Operations. Only costs and ounces produced relating to
units with the same primary product are combined to represent Cash
Cost, After By-product Credits, per Ounce and AISC, After
By-product Credits, per Ounce. Thus, the gold produced at our Casa
Berardi and Nevada Operations units is not included as a by-product
credit when calculating Cash Cost, After By-product Credits, per
Silver Ounce and AISC, After By-product Credits, per Silver Ounce
for the total of Greens Creek and Lucky Friday, our combined silver
properties. Similarly, the silver produced at our other two units
is not included as a by-product credit when calculating the gold
metrics for Casa Berardi and Nevada Operations.
Reconciliation of Cost of Sales to
Non-GAAP Measures, continued
In thousands (except per ounce
amounts)
Three Months Ended September 30,
2022
Three Months Ended June 30,
2022
Nine Months Ended September 30,
2022
Nine Months Ended September 30,
2021
Greens Creek
Lucky Friday
Other
Total Silver
Greens Creek
Lucky Friday
Other
Total Silver
Greens Creek
Lucky Friday
Other
Total Silver
Greens Creek
Lucky Friday
Other(2)
Total Silver
Total cost of sales
$
52,502
$
24,164
—
$
76,666
$
60,506
$
30,348
—
$
90,854
$
162,644
$
83,779
—
$
246,423
$
163,861
$
74,287
$
95
$
238,243
Depreciation, depletion and
amortization
(10,305
)
(7,261
)
—
(17,566
)
(13,629
)
(8,862
)
—
(22,491
)
(35,354
)
(24,155
)
—
(59,509
)
(42,410
)
(20,328
)
—
(62,738
)
Treatment costs
9,477
4,791
—
14,268
8,778
4,803
—
13,581
27,369
13,271
—
40,640
27,444
13,087
—
40,531
Change in product inventory
4,464
3,022
—
7,486
(1,102
)
503
—
(599
)
9,899
2,620
—
12,519
(156
)
(1,757
)
—
(1,913
)
Reclamation and other costs
(118
)
(152
)
—
(270
)
(1,005
)
(256
)
—
(1,261
)
(1,988
)
(769
)
—
(2,757
)
(1,777
)
(840
)
(95
)
(2,712
)
Cash Cost, Before By-product Credits
(1)
56,020
24,564
—
80,584
53,548
26,536
—
80,084
162,570
74,746
—
237,316
146,962
64,449
—
211,411
Reclamation and other costs
705
282
—
987
705
282
—
987
2,115
846
—
2,961
2,543
792
—
3,335
Exploration
3,776
—
722
4,498
929
—
769
1,698
4,870
—
2,207
7,077
3,895
—
1,359
5,254
Sustaining capital
10,219
11,264
187
21,670
14,668
8,110
99
22,877
30,843
24,937
334
56,114
17,459
19,104
—
36,563
General and administrative
—
—
11,003
11,003
—
—
9,692
9,692
—
—
28,989
28,989
—
—
27,985
27,985
AISC, Before By-product Credits (1)
70,720
36,110
11,912
118,742
69,850
34,928
10,560
115,338
200,398
100,529
31,530
332,457
170,859
84,345
29,344
284,548
By-product credits:
Zinc
(26,244
)
(7,155
)
—
(33,399
)
(32,828
)
(8,227
)
—
(41,055
)
(87,723
)
(21,358
)
—
(109,081
)
(74,571
)
(14,457
)
—
(89,028
)
Gold
(17,019
)
—
—
(17,019
)
(20,364
)
—
—
(20,364
)
(55,966
)
—
—
(55,966
)
(56,299
)
—
—
(56,299
)
Lead
(6,212
)
(11,796
)
—
(18,008
)
(8,271
)
(14,543
)
—
(22,814
)
(22,449
)
(38,175
)
—
(60,624
)
(23,265
)
(30,762
)
—
(54,027
)
Total By-product credits
(49,475
)
(18,951
)
—
(68,426
)
(61,463
)
(22,770
)
—
(84,233
)
(166,138
)
(59,533
)
—
(225,671
)
(154,135
)
(45,219
)
—
(199,354
)
Cash Cost, After By-product Credits
$
6,545
$
5,613
$
—
$
12,158
$
(7,915
)
$
3,766
$
—
$
(4,149
)
$
(3,568
)
$
15,213
$
—
$
11,645
$
(7,173
)
$
19,230
$
—
$
12,057
AISC, After By-product Credits
$
21,245
$
17,159
$
11,912
$
50,316
$
8,387
$
12,158
$
10,560
$
31,105
$
34,260
$
40,996
$
31,530
$
106,786
$
16,724
$
39,126
$
29,344
$
85,194
Divided by ounces produced
2,469
1,075
3,544
2,410
1,226
3,636
7,309
3,189
10,498
6,981
1,777
2,609
9,590
Cash Cost, Before By-product Credits, per
Silver Ounce
$
22.69
$
22.87
$
22.74
$
22.21
$
21.65
$
22.03
$
22.24
$
23.44
$
22.61
$
21.05
$
24.70
$
22.05
By-product credits per ounce
(20.04
)
(17.64
)
(19.31
)
(25.50
)
(18.58
)
(23.17
)
(22.73
)
(18.67
)
(21.50
)
(22.08
)
(17.33
)
(20.79
)
Cash Cost, After By-product Credits, per
Silver Ounce
$
2.65
$
5.23
$
3.43
$
(3.29
)
$
3.07
$
(1.14
)
$
(0.49
)
$
4.77
$
1.11
$
(1.03
)
$
7.37
$
1.26
AISC, Before By-product Credits, per
Silver Ounce
$
28.65
$
33.62
$
33.51
$
28.98
$
28.49
$
31.72
$
27.42
$
31.53
$
31.67
$
24.48
$
32.33
$
29.67
By-product credits per ounce
(20.04
)
(17.64
)
(19.31
)
(25.50
)
(18.58
)
(23.17
)
(22.73
)
(18.67
)
(21.50
)
(22.08
)
(17.33
)
(20.79
)
AISC, After By-product Credits, per Silver
Ounce
$
8.61
$
15.98
$
14.20
$
3.48
$
9.91
$
8.55
$
4.69
$
12.86
$
10.17
$
2.40
$
15.00
$
8.88
Reconciliation of Cost of Sales to
Non-GAAP Measures, continued
In thousands (except per ounce
amounts)
Three Months Ended September 30,
2022
Three Months Ended June 30,
2022
Nine Months Ended September 30,
2022
Nine Months Ended September 30,
2021
Casa Berardi
Total Gold
Casa Berardi
Total Gold
Casa Berardi
Total Gold
Casa Berardi
Nevada Operations(3)
Corporate(3)
Total Gold
Total cost of sales
$
59,532
$
59,532
$
61,870
$
61,870
$
183,570
$
183,570
$
172,760
$
46,832
—
$
219,592
Depreciation, depletion and
amortization
(15,089
)
(15,089
)
(15,459
)
(15,459
)
(46,394
)
(46,394
)
(61,159
)
(15,021
)
—
(76,180
)
Treatment costs
429
429
457
457
1,345
1,345
1,723
1,731
—
3,454
Change in product inventory
420
420
(793
)
(793
)
(936
)
(936
)
(2,401
)
(9,951
)
—
(12,352
)
Reclamation and other costs
(203
)
(203
)
(209
)
(209
)
(623
)
(623
)
(632
)
299
—
(333
)
Exclusion of Nevada Operations costs
—
—
—
—
—
—
—
—
—
Cash Cost, Before By-product Credits
(1)
45,089
45,089
45,866
45,866
136,962
136,962
110,291
23,890
—
134,181
Reclamation and other costs
204
204
209
209
623
623
632
681
—
1,313
Sustaining Exploration
2,314
2,314
1,178
1,178
4,886
4,886
3,551
—
—
3,551
Sustaining capital
10,457
10,457
7,597
7,597
25,587
25,587
21,030
195
—
21,225
AISC, Before By-product Credits (1)
58,064
58,064
54,850
54,850
168,058
168,058
135,504
24,766
—
160,270
By-product credits:
—
Silver
$
(131
)
(131
)
$
(188
)
(188
)
(485
)
(485
)
(656
)
(1,131
)
—
(1,787
)
Total By-product credits
(131
)
(131
)
(188
)
(188
)
(485
)
(485
)
(656
)
(1,131
)
—
(1,787
)
Cash Cost, After By-product Credits
$
44,958
$
44,958
$
45,678
$
45,678
$
136,477
$
136,477
$
109,635
$
22,759
$
—
$
132,394
AISC, After By-product Credits
$
57,933
$
57,933
$
54,662
$
54,662
$
167,573
$
167,573
$
134,848
$
23,635
$
—
$
158,483
Divided by gold ounces produced
33
33
33
33
97
97
97
20
117
Cash Cost, Before By-product Credits, per
Gold Ounce
$
1,353
$
1,353
$
1,377
$
1,377
$
1,415
$
1,415
$
1,134
$
1,180
$
1,142
By-product credits per ounce
(4
)
(4
)
(6
)
(6
)
(6
)
(6
)
(7
)
(56
)
(15
)
Cash Cost, After By-product Credits, per
Gold Ounce
$
1,349
$
1,349
$
1,371
$
1,371
$
1,409
$
1,409
$
1,127
$
1,124
$
1,127
AISC, Before By-product Credits, per Gold
Ounce
$
1,742
$
1,742
$
1,647
$
1,647
$
1,735
$
1,735
$
1,394
$
1,223
$
1,364
By-product credits per ounce
(4
)
(4
)
(6
)
(6
)
(6
)
(6
)
(7
)
(56
)
(15
)
AISC, After By-product Credits, per Gold
Ounce
$
1,738
$
1,738
$
1,641
$
1,641
$
1,729
$
1,729
$
1,387
$
1,167
$
1,349
Reconciliation of Cost of Sales to
Non-GAAP Measures, continued
In thousands (except per ounce
amounts)
Three Months Ended September 30,
2022
Three Months Ended June 30,
2022
Nine Months Ended September 30,
2022
Nine Months Ended September 30,
2021
Total Silver
Total Gold
Total
Total Silver
Total Gold
Total
Total Silver
Total Gold
Total
Total Silver
Total Gold
Total
Total cost of sales
$
76,666
$
59,532
$
136,198
$
90,854
$
61,870
$
152,724
$
246,423
$
183,570
$
429,993
$
238,243
$
219,592
$
457,835
Depreciation, depletion and
amortization
(17,566
)
(15,089
)
(32,655
)
(22,491
)
(15,459
)
(37,950
)
(59,509
)
(46,394
)
(105,903
)
(62,738
)
(76,180
)
(138,918
)
Treatment costs
14,268
429
14,697
13,581
457
14,038
40,640
1,345
41,985
40,531
3,454
43,985
Change in product inventory
7,486
420
7,906
(599
)
(793
)
(1,392
)
12,519
(936
)
11,583
(1,913
)
(12,352
)
(14,265
)
Reclamation and other costs
(270
)
(203
)
(473
)
(1,261
)
(209
)
(1,470
)
(2,757
)
(623
)
(3,380
)
(2,712
)
(333
)
(3,045
)
Cash Cost, Before By-product Credits
(1)
80,584
45,089
125,673
80,084
45,866
125,950
237,316
136,962
374,278
211,411
134,181
$
345,592
Reclamation and other costs
987
204
1,191
987
209
1,196
2,961
623
3,584
3,335
1,313
4,648
Exploration
4,498
2,314
6,812
1,698
1,178
2,876
7,077
4,886
11,963
5,254
3,551
8,805
Sustaining capital
21,670
10,457
32,127
22,877
7,597
30,474
56,114
25,587
81,701
36,563
21,225
57,788
General and administrative
11,003
—
11,003
9,692
—
9,692
28,989
—
28,989
27,985
—
27,985
AISC, Before By-product Credits (1)
118,742
58,064
176,806
115,338
54,850
170,188
332,457
168,058
500,515
284,548
160,270
$
444,818
By-product credits:
Zinc
(33,399
)
—
(33,399
)
(41,055
)
—
(41,055
)
(109,081
)
—
(109,081
)
(89,028
)
—
(89,028
)
Gold
(17,019
)
—
(17,019
)
(20,364
)
—
(20,364
)
(55,966
)
—
(55,966
)
(56,299
)
—
(56,299
)
Lead
(18,008
)
—
(18,008
)
(22,814
)
—
(22,814
)
(60,624
)
—
(60,624
)
(54,027
)
—
(54,027
)
Silver
—
(131
)
(131
)
—
(188
)
(188
)
—
(485
)
(485
)
—
(1,787
)
(1,787
)
Total By-product credits
(68,426
)
(131
)
(68,557
)
(84,233
)
(188
)
(84,421
)
(225,671
)
(485
)
(226,156
)
(199,354
)
(1,787
)
(201,141
)
Cash Cost, After By-product Credits
$
12,158
$
44,958
$
57,116
$
(4,149
)
$
45,678
$
41,529
$
11,645
$
136,477
$
148,122
$
12,057
$
132,394
$
144,451
AISC, After By-product Credits
$
50,316
$
57,933
$
108,249
$
31,105
$
54,662
$
85,767
$
106,786
$
167,573
$
274,359
$
85,194
$
158,483
$
243,677
Divided by ounces produced
3,544
33
3,636
33
10,498
97
9,590
117
Cash Cost, Before By-product Credits, per
Ounce
$
22.74
$
1,353
$
22.03
$
1,377
$
22.61
$
1,415
$
22.05
$
1,142
By-product credits per ounce
(19.31
)
(4
)
(23.17
)
(6
)
(21.50
)
(6
)
(20.79
)
(15
)
Cash Cost, After By-product Credits, per
Ounce
$
3.43
$
1,349
$
(1.14
)
$
1,371
$
1.11
$
1,409
$
1.26
$
1,127
AISC, Before By-product Credits, per
Ounce
$
33.51
$
1,742
$
31.72
$
1,647
$
31.67
$
1,735
$
29.67
$
1,364
By-product credits per ounce
(19.31
)
(4
)
(23.17
)
(6
)
(21.50
)
(6
)
(20.79
)
(15
)
AISC, After By-product Credits, per
Ounce
$
14.20
$
1,738
$
8.55
$
1,641
$
10.17
$
1,729
$
8.88
$
1,349
Reconciliation of Cost of Sales to
Non-GAAP Measures, continued
In thousands (except per ounce
amounts)
Three Months Ended March 31,
2022
Three Months Ended December 31,
2021
Three Months Ended September 30,
2021
Greens Creek
Lucky Friday
Other
Total Silver
Greens Creek
Lucky Friday(2)
Other(3)
Total Silver
Greens Creek
Lucky Friday
Other(3)
Total Silver
Total cost of sales
$
49,638
$
29,264
—
$
78,902
$
49,252
$
23,251
$
152
$
72,655
$
55,193
$
23,591
$
—
$
78,784
Depreciation, depletion and
amortization
(11,420
)
(8,032
)
—
(19,452
)
(6,300
)
(6,518
)
(152
)
(12,970
)
(13,097
)
(6,590
)
—
(19,687
)
Treatment costs
9,096
3,677
—
12,773
8,655
3,636
—
12,291
7,979
3,427
—
11,406
Change in product inventory
6,538
(905
)
—
5,633
236
1,351
—
1,587
(122
)
(68
)
—
(190
)
Reclamation and other costs (5)
(850
)
(361
)
—
(1,211
)
(1,689
)
(199
)
—
(1,888
)
(786
)
(281
)
—
(1,067
)
Cash Cost, Before By-product Credits
(1)
53,002
23,643
—
76,645
50,154
21,521
—
71,675
49,167
20,079
—
69,246
Reclamation and other costs
705
282
—
987
847
264
—
1,111
848
264
—
1,112
Exploration
165
—
716
881
696
—
867
1,563
2,472
—
474
2,946
Sustaining capital
5,956
5,562
48
11,566
10,123
7,413
172
17,708
6,228
8,406
—
14,634
General and administrative (5)
—
—
8,294
8,294
—
—
6,585
6,585
—
—
8,874
8,874
AISC, Before By-product Credits (1)
59,828
29,487
9,058
98,373
61,820
29,198
7,624
98,642
58,715
28,749
9,348
96,812
By-product credits:
Zinc
(28,651
)
(5,977
)
—
(34,628
)
(25,643
)
(5,022
)
(30,665
)
(25,295
)
(4,611
)
(29,906
)
Gold
(18,583
)
—
—
(18,583
)
(15,712
)
—
(15,712
)
(14,864
)
—
(14,864
)
Lead
(7,966
)
(11,836
)
—
(19,802
)
(7,657
)
(12,204
)
(19,861
)
(7,640
)
(10,188
)
(17,828
)
Total By-product credits
(55,200
)
(17,813
)
—
(73,013
)
(49,012
)
(17,226
)
—
(66,238
)
(47,799
)
(14,799
)
—
(62,598
)
Cash Cost, After By-product Credits
$
(2,198
)
$
5,830
$
—
$
3,632
$
1,142
$
4,295
$
—
$
5,437
$
1,368
$
5,280
$
—
$
6,648
AISC, After By-product Credits
$
4,628
$
11,674
$
9,058
$
25,360
$
12,808
$
11,972
$
7,624
$
32,404
$
10,916
$
13,950
$
9,348
$
34,214
Divided by ounces produced
2,430
888
3,318
2,262
955
3,217
1,837
832
2,669
Cash Cost, Before By-product Credits, per
Silver Ounce
$
21.82
$
26.63
$
23.10
$
22.18
$
22.54
$
22.28
$
26.76
$
24.14
$
25.93
By-product credits per ounce
(22.72
)
(20.06
)
(22.01
)
(21.68
)
(18.04
)
(20.59
)
(26.02
)
(17.79
)
(23.44
)
Cash Cost, After By-product Credits, per
Silver Ounce
$
(0.90
)
$
6.57
$
1.09
$
0.50
$
4.50
$
1.69
$
0.74
$
6.35
$
2.49
AISC, Before By-product Credits, per
Silver Ounce
$
24.62
$
33.21
$
29.65
$
27.34
$
30.58
$
30.67
$
31.96
$
34.58
$
36.26
By-product credits per ounce
(22.72
)
(20.06
)
(22.01
)
(21.68
)
(18.04
)
(20.59
)
(26.02
)
(17.79
)
(23.44
)
AISC, After By-product Credits, per Silver
Ounce
$
1.90
$
13.15
$
7.64
$
5.66
$
12.54
$
10.08
$
5.94
$
16.79
$
12.82
Reconciliation of Cost of Sales to
Non-GAAP Measures, continued
In thousands (except per ounce
amounts)
Three Months Ended March 31,
2022
Three Months Ended December 31,
2021
Three Months Ended September 30,
2021
Casa Berardi
Total Gold
Casa Berardi
Nevada Operations(4)
Total Gold
Casa Berardi
Nevada Operations(4)
Corporate(3)
Total Gold
Total cost of sales
$
62,168
$
62,168
$
57,069
$
2,113
$
59,182
$
58,164
$
21,384
$
79,548
Depreciation, depletion and
amortization
(15,846
)
(15,846
)
(19,585
)
(320
)
(19,905
)
(19,968
)
(6,135
)
(26,103
)
Treatment costs
458
458
423
—
423
475
1
476
Change in product inventory
(563
)
(563
)
4,839
(956
)
3,883
(3,369
)
(12,389
)
(15,758
)
Reclamation and other costs (5)
(210
)
(210
)
(208
)
1
(207
)
(210
)
—
(210
)
Cash Cost, Before By-product Credits
(1)
46,007
46,007
42,538
838
43,376
35,092
2,861
37,953
Reclamation and other costs
210
210
209
327
536
209
327
536
Exploration
1,394
1,394
1,775
—
1,775
1,541
—
1,541
Sustaining capital
7,281
7,281
10,459
316
10,775
7,208
29
7,237
AISC, Before By-product Credits (1)
54,892
54,892
54,981
1,481
56,462
44,050
3,217
47,267
By-product credits:
Silver
(166
)
(166
)
(183
)
(21
)
(204
)
(169
)
(6
)
(175
)
Total By-product credits
$
(166
)
$
(166
)
(183
)
(21
)
(204
)
(169
)
(6
)
(175
)
Cash Cost, After By-product Credits
$
45,841
$
45,841
$
42,355
$
817
$
43,172
$
34,923
$
2,855
$
37,778
AISC, After By-product Credits
$
54,726
$
54,726
$
54,798
$
1,460
$
56,258
$
43,881
$
3,211
$
47,092
Divided by gold ounces produced
30
30
37
—
37
30
3
33
Cash Cost, Before By-product Credits, per
Gold Ounce
$
1,521
$
1,521
$
1,142
$
1,737
$
1,148
$
1,181
$
1,040
$
1,168
By-product credits per ounce
(5
)
(5
)
(5
)
(44
)
(5
)
(6
)
(2
)
(5
)
Cash Cost, After By-product Credits, per
Gold Ounce
$
1,516
$
1,516
$
1,137
$
1,693
$
1,143
$
1,175
$
1,038
$
1,163
AISC, Before By-product Credits, per Gold
Ounce
$
1,815
$
1,815
$
1,475
$
3,073
$
1,499
$
1,482
$
1,169
$
1,455
By-product credits per ounce
(5
)
(5
)
(5
)
(44
)
(5
)
(6
)
(2
)
(5
)
AISC, After By-product Credits, per Gold
Ounce
$
1,810
$
1,810
$
1,470
$
3,029
$
1,494
$
1,476
$
1,167
$
1,450
Reconciliation of Cost of Sales to
Non-GAAP Measures, continued
In thousands (except per ounce
amounts)
Three Months Ended March 31,
2022
Three Months Ended December 31,
2021
Three Months Ended September 30,
2021
Total Silver
Total Gold
Total
Total Silver
Total Gold
Total
Total Silver
Total Gold
Corporate(3)
Total
Cost of sales and other direct production
costs and depreciation, depletion and amortization
$
78,902
$
62,168
$
141,070
$
72,655
$
59,182
$
131,837
$
78,784
$
79,548
$
158,332
Depreciation, depletion and
amortization
(19,452
)
(15,846
)
(35,298
)
(12,970
)
(19,905
)
(32,875
)
(19,687
)
(26,103
)
(45,790
)
Treatment costs
12,773
458
13,231
12,291
423
12,714
11,406
476
11,882
Change in product inventory
5,633
(563
)
5,070
1,587
3,883
5,470
(190
)
(15,758
)
(15,948
)
Reclamation and other costs
(1,211
)
(210
)
(1,421
)
(1,888
)
(207
)
(2,095
)
(1,067
)
(210
)
(1,277
)
Cash Cost, Before By-product Credits
(1)
76,645
46,007
122,652
71,675
43,376
115,051
69,246
37,953
107,199
Reclamation and other costs
987
210
1,197
1,111
536
1,647
1,112
536
1,648
Exploration
881
1,394
2,275
1,563
1,775
3,338
2,946
1,541
4,487
Sustaining capital
11,566
7,281
18,847
17,708
10,775
28,483
14,634
7,237
21,871
General and administrative
8,294
—
8,294
6,585
—
6,585
8,874
—
8,874
AISC, Before By-product Credits (1)
98,373
54,892
153,265
98,642
56,462
155,104
96,812
47,267
144,079
By-product credits:
Zinc
(34,628
)
—
(34,628
)
(30,665
)
—
(30,665
)
(29,906
)
—
(29,906
)
Gold
(18,583
)
—
(18,583
)
(15,712
)
—
(15,712
)
(14,864
)
—
(14,864
)
Lead
(19,802
)
—
(19,802
)
(19,861
)
—
(19,861
)
(17,828
)
—
(17,828
)
Silver
—
(166
)
(166
)
—
(204
)
(204
)
—
(175
)
(175
)
Total By-product credits
(73,013
)
(166
)
(73,179
)
(66,238
)
(204
)
(66,442
)
(62,598
)
(175
)
(62,773
)
Cash Cost, After By-product Credits
$
3,632
$
45,841
$
49,473
$
5,437
$
43,172
$
48,609
$
6,648
$
37,778
$
44,426
AISC, After By-product Credits
$
25,360
$
54,726
$
80,086
$
32,404
$
56,258
$
88,662
$
34,214
$
47,092
$
81,306
Divided by ounces produced
3,318
30
3,217
37
2,669
33
Cash Cost, Before By-product Credits, per
Ounce
$
23.10
$
1,521
$
22.28
$
1,148
$
25.93
1,168
By-product credits per ounce
(22.01
)
(5
)
(20.59
)
(5
)
(23.44
)
(5
)
Cash Cost, After By-product Credits, per
Ounce
$
1.09
$
1,516
$
1.69
$
1,143
$
2.49
$
1,163
AISC, Before By-product Credits, per
Ounce
$
29.65
$
1,815
$
30.67
$
1,499
$
36.26
$
1,455
By-product credits per ounce
(22.01
)
(5
)
(20.59
)
(5
)
(23.44
)
(5
)
AISC, After By-product Credits, per
Ounce
$
7.64
$
1,810
$
10.08
$
1,494
$
12.82
$
1,450
- Includes all direct and indirect operating costs related to the
physical activities of producing metals, including mining,
processing and other plant costs, third-party refining and
marketing expense, on-site general and administrative costs,
royalties, before by-product revenues earned from all metals other
than the primary metal produced at each unit. AISC, Before
By-product Credits also includes on-site exploration, reclamation,
and sustaining capital costs.
- Mining at San Sebastian was completed in the third quarter of
2020, and milling was completed in the fourth quarter of 2020. Care
and maintenance costs at San Sebastian totaling $1.5 million and
$2.0 million for the first nine months of 2022 and 2021 are
reported in a separate line item on our consolidated statements of
operations and excluded from the calculations of cost of sales and
other direct production costs and depreciation, depletion and
amortization, Cash Cost, Before By-product Credits, Cash Cost,
After By-product Credits, AISC, Before By-product Credits, and
AISC, After By-product Credits.
- AISC, Before By-product Credits for our consolidated silver
properties includes corporate costs for general and administrative
expense, exploration and sustaining capital.
- Production was suspended at the Hollister and Midas mines and
Aurora mill in the latter part of 2019. Care and maintenance at
Nevada Operations totaling $4.2 million and $6.3 million for the
third quarter of 2022 and 2021, respectively, ($14.6 million and
$15.0 million for the first nine months of 2022 and 2021) are
reported in a separate line item on our consolidated statements of
operations and excluded from the calculations of cost of sales and
other direct production costs and depreciation, depletion and
amortization, Cash Cost, Before By-product Credits, Cash Cost,
After By-product Credits, AISC, Before By-product Credits, and
AISC, After By-product Credits.
Reconciliation of Net (Loss) Income Applicable to Common
Stockholders (GAAP) to Adjusted Net (Loss) Income Applicable to
Common Stockholders (non-GAAP)
This release refers to a non-GAAP measure of adjusted net income
(loss) applicable to common stockholders and adjusted net income
(loss) per share, which are indicators of our performance. They
exclude certain impacts which are of a nature which we believe are
not reflective of our underlying performance. Management believes
that adjusted net income (loss) per common share provides investors
with the ability to better evaluate our underlying operating
performance.
Dollars are in thousands
Q3 -2022
Q2 -2022
Q1-2022
Q4 -2021
Q3 -2021
YTD - 2022
YTD-2021
Net (loss) income applicable to common
stockholders (GAAP)
(23,664
)
(13,661
)
$
4,015
11,737
(1,117
)
$
(33,310
)
22,806
Adjusted for items below:
—
Derivative contracts losses (gains)
(873
)
689
204
25,840
(16,053
)
20
(13,937
)
Provisional pricing losses (gains)
6,625
15,807
(968
)
(5,648
)
(72
)
21,464
(3,701
)
Unrealized losses (gains) on equity
investments
5,110
15,739
(6,100
)
(2,822
)
2,861
14,749
5,959
Environmental accruals
—
14
—
—
14
2,882
Foreign exchange (gain) loss
(5,667
)
(4,482
)
2,038
(393
)
(3,995
)
(8,111
)
(24
)
Care and maintenance costs
5,092
5,242
6,205
5,998
6,910
16,539
17,014
Loss (gain)on disposition of properties,
plants, equipment and mineral interests
19
5
(8
)
326
(390
)
16
(239
)
Adjustments of inventory to net realizable
value
1,405
754
—
—
93
2,159
6,524
Adjusted income (loss) applicable to
common stockholders
$
(11,953
)
$
20,093
$
5,400
$
35,038
$
(11,763
)
$
13,540
$
37,284
Weighted average shares - basic
554,531
539,401
538,490
538,124
536,966
544,000
535,542
Weighted average shares - diluted
554,531
539,401
544,061
543,134
536,966
544,000
541,769
Basic adjusted net income (loss) per
common stock (in cents)
(0.02
)
0.04
0.01
0.07
(0.02
)
0.02
0.07
Diluted adjusted net income (loss) per
common stock (in cents)
(0.02
)
0.04
0.01
0.06
(0.02
)
0.02
0.07
Reconciliation of Net Income (Loss) (GAAP) and Debt (GAAP) to
Adjusted EBITDA (non-GAAP) and Net Debt (non-GAAP)
This release refers to the non-GAAP measures of adjusted
earnings before interest, taxes, depreciation and amortization
("Adjusted EBITDA"), which is a measure of our operating
performance, and net debt to adjusted EBITDA for the last 12 months
(or "LTM adjusted EBITDA"), which is a measure of our ability to
service our debt. Adjusted EBITDA is calculated as net income
(loss) before the following items: interest expense, income tax
provision, depreciation, depletion, and amortization expense,
acquisition costs, foreign exchange gains and losses, gains and
losses on derivative contracts, ramp-up and suspension costs,
provisional price gains and losses, stock-based compensation,
unrealized losses and gains on investments, provisions for closed
operations, and interest and other income (expense). Net debt is
calculated as total debt, which consists of the liability balances
for our Senior Notes, revolving credit facility and finance leases,
less the total of our cash and cash equivalents. Management
believes that, when presented in conjunction with comparable GAAP
measures, Adjusted EBITDA and net debt to LTM adjusted EBITDA are
useful to investors in evaluating our operating performance and
ability to meet our debt obligations. The following table
reconciles net loss and debt to Adjusted EBITDA and net debt:
Dollars are in thousands
Q3 -2022
Q2 -2022
Q1-2022
Q4 -2021
Q3 -2021
LTM 9/30/2022
FY 2021
Net income (loss)
(23,526
)
(13,523
)
$
4,153
11,875
(979
)
(21,021
)
35,095
Interest expense
10,874
10,505
10,406
10,461
10,469
42,246
41,945
Income and mining tax provision
(benefit)
(9,527
)
254
5,631
(25,645
)
(4,533
)
(29,287
)
(29,569
)
Depreciation, depletion and
amortization
32,992
38,072
35,298
32,875
45,790
139,237
171,793
Foreign exchange (gain) loss
(5,667
)
(4,482
)
2,038
(393
)
(3,995
)
(8,504
)
(417
)
Loss/(gain) on undesignated derivative
contracts
(873
)
689
204
25,840
(16,053
)
25,860
11,903
Care and maintenance costs
5,092
5,242
6,205
5,998
6,910
22,537
23,012
Provisional price losses ( gains)
6,625
15,807
(968
)
(5,648
)
(72
)
15,816
(9,349
)
Loss (gain) on disposition of properties,
plants, equipment and mineral interests
18
5
(8
)
326
(390
)
341
87
Stock-based compensation
1,773
1,254
1,271
1,307
1,472
5,605
6,081
Provision for closed operations and
environmental matters
1,781
1,628
1,643
3,693
8,088
8,745
17,964
Unrealized loss (gain) on investments
5,114
15,739
(6,100
)
(2,822
)
2,861
11,931
4,295
Adjustments of inventory to net realizable
value
1,405
754
—
—
93
2,159
6,524
Other
473
(1,470
)
(1,571
)
382
(247
)
(2,186
)
(584
)
Adjusted EBITDA
$
26,554
$
70,474
$
58,202
58,249
49,414
$
213,479
$
278,780
Total debt
551,841
$
521,483
Less: Cash and cash equivalents
$
144,669
$
210,010
Net debt
$
407,172
$
311,473
Net debt/LTM adjusted EBITDA
(non-GAAP)
1.9
1.1
Reconciliation of Cash Provided by Operating Activities
(GAAP) to Free Cash Flow (non-GAAP)
This release refers to a non-GAAP measure of free cash flow,
calculated as cash provided by operating activities, less additions
to properties, plants, equipment and mineral interests. Management
believes that, when presented in conjunction with comparable GAAP
measures, free cash flow is useful to investors in evaluating our
operating performance. The following table reconciles cash provided
by operating activities to free cash flow:
Dollars are in thousands
Three Months Ended September
30,
Nine Months Ended September
30,
2022
2021
2022
2021
Cash provided by operating activities
$
(24,322
)
$
42,742
$
53,770
$
166,982
Less: Additions to properties, plants
equipment and mineral interests
(37,430
)
(26,899
)
(93,237
)
(80,210
)
Free cash flow
$
(61,752
)
$
15,843
$
(39,467
)
$
86,772
Table A - Assay Results - Q3 2022
Keno Hill, Yukon
Zone
Drillhole Number
Drill Hole Azm/Dip
Sample From (feet)
Sample To (feet)
Est. True Width (feet)
Silver (oz/ton)
Gold (oz/ton)
Zinc (%)
Lead (%)
Depth From Surface
(feet)
Coral-Wigwam
K-22-0825
275/-73
1520.4
1533.6
7.3
101.5
0.00
0.1
0.1
-1291
Coral-Wigwam
Including
1525.6
1526.1
0.3
2522.1
0.00
0.7
0.3
-1303
Aurora, Nevada
Zone
Drillhole Number
Drillhole Azm/Incl
Sample From (feet)
Sample To (feet)
Est. True Width (feet)
Gold (oz/ton)
Silver (oz/ton)
Depth From Surface
(feet)
Martinez
MAR-002
173 /-37
331.5
333.0
1.3
0.13
0.3
-184
Martinez
MAR-002
173 /-37
353.1
360.0
6.0
0.22
1.1
-240
Martinez
Including
353.1
356.0
2.5
0.50
1.9
-240
Martinez
MAR-002
173 /-37
396.2
408.8
7.2
0.05
0.2
-308
Martinez
Including
396.2
397.5
0.8
0.19
0.5
-308
Martinez
MAR-002
173 /-37
416.8
454.2
31.1
0.40
1.8
-341
Martinez
Including
416.8
418.0
0.9
0.30
2.8
-341
Martinez
Including
423.1
433.5
6.7
1.26
4.4
-341
Martinez
MAR-002
173 /-37
456.5
465.0
6.0
0.10
0.1
-364
Martinez
Including
463.5
465.0
1.1
0.43
0.4
-364
Martinez
MAR-002
173 /-37
488.9
570.2
70.4
0.05
0.3
-436
Martinez
Including
491.3
498.0
5.8
0.12
0.6
-436
Martinez
Including
508.9
510.3
1.0
0.19
2.0
-436
Martinez
Including
518.7
523.1
3.8
0.17
0.7
-436
Martinez
Including
533.8
535.5
1.6
0.12
0.9
-436
Chesco
CHE-001
350 /-62
14.0
26.4
12.2
0.73
7.7
-25
Chesco
Including
14.0
23.0
8.9
0.95
9.8
-25
Chesco
CHE-001
350 /-62
28.3
29.5
1.2
0.15
2.4
-31
Chesco
CHE-001
350 /-62
258.0
260.3
2.2
0.03
1.2
-231
Chesco
CHE-002
13 /-39
163.5
163.9
0.4
0.13
0.3
-68
Chesco
CHE-002
13 /-39
170.3
171.1
0.6
0.06
0.3
-69
Chesco
CHE-002
13 /-39
176.4
177.5
0.8
0.26
1.4
-72
Chesco
CHE-002
13 /-39
223.8
228.1
3.7
0.25
6.4
-95
Chesco
Including
224.8
226.9
1.8
0.50
12.4
-95
Juniata
JUN-001
000 /-45
246.8
261.9
14.9
0.43
1.9
-180
Juniata
Including
249.7
257.8
8.0
0.76
3.5
-180
Republic, NW USA
Zone
Drillhole Number
Drillhole Azm/Incl
Sample From (feet)
Sample To (feet)
Est. True Width (feet)
Gold (oz/ton)
Silver (oz/ton)
Depth From Surface
(feet)
Bellicose
BT2209
330/-45
518.6
523.3
3.3
0.07
0.3
-330
Blacktail
BT2209
330/-45
627.0
650.0
13.2
0.06
0.5
-420
Apex
BT2210
330/-45
36.4
53.7
12.0
0.08
0.4
-32
Anchor
BT2210
330/-45
125.3
132.0
2.3
0.29
0.7
-70
1470
BT2216
330/-45
321.6
332.0
9.3
0.57
1.8
-250
1470
Including
326.6
332.0
4.9
0.79
2.6
-253
1470 Splay
BT2216
330/-45
350.0
353.0
2.1
1.18
4.3
-263
Tom Thumb
TT2213
293/-45
610.1
619.6
8.6
0.37
2.3
-255
Tom Thumb
Including
610.1
614.6
4.1
0.72
4.3
-255
Tom Thumb
TT2214
150/-75
1848.3
1852.5
3.6
0.34
2.7
-1800
Greens Creek, Alaska
Zone
Drillhole Number
Drill Hole Azm/Dip
Sample From (feet)
Sample To (feet)
Est. True Width (feet)
Silver (oz/ton)
Gold (oz/ton)
Zinc (%)
Lead (%)
Depth From Mine Portal
(feet)
Southwest Bench
GC5758
63 / -46
221.0
224.0
2.7
35.2
0.14
10.2
6.4
-916
Southwest Bench
GC5758
63 / -46
231.0
241.0
9.7
15.7
0.06
6.1
4.4
-932
Southwest Bench
GC5762
73 / -11
144.0
159.0
14.9
40.9
0.35
7.0
2.9
-779
Southwest Bench
GC5762
73 / -11
190.3
193.6
2.8
59.8
0.19
3.2
2.2
-785
Southwest Bench
GC5762
73 / -11
308.5
310.5
1.9
27.3
0.07
9.0
6.0
-803
Southwest Bench
GC5767
100 / 41
170.0
185.0
14.9
20.0
0.20
4.5
1.7
-628
Southwest Bench
GC5771
91 / 20
199.0
201.5
2.4
12.8
0.04
2.3
1.3
-685
Southwest Bench
GC5771
91 / 20
209.0
210.0
0.8
19.1
0.02
7.9
4.6
-681
Southwest Bench
GC5787
112 / -38
103.6
124.7
10.5
74.3
0.52
5.7
2.9
-871
Southwest Bench
GC5792
213 / -74
52.0
53.0
0.5
29.3
0.11
15.5
8.8
-815
Southwest Bench
GC5793
63 / -71
94.5
96.0
1.4
11.5
0.04
6.2
2.6
-851
Southwest Bench
GC5793
63 / -71
98.0
100.0
1.9
51.7
0.05
4.6
3.1
-856
Southwest Bench
GC5793
63 / -71
107.0
113.0
5.4
16.3
0.09
10.3
7.4
-868
Southwest Bench
GC5793
63 / -71
119.0
137.5
17.7
22.3
0.09
9.1
6.0
-891
Southwest Bench
GC5797
63 / -51
125.4
131.5
4.8
18.1
0.06
5.1
3.0
-883
Southwest Bench
GC5799
63 / -37
174.6
182.7
5.2
10.1
0.07
1.9
1.0
-872
Southwest Bench
GC5801
63 / -26
218.5
219.5
1.0
11.7
0.03
12.4
7.2
-858
Southwest Bench
GC5803
63 / -5
219.0
241.0
20.1
25.7
0.15
6.4
3.1
-785
Southwest Bench
GC5806
63 / 25
128.6
138.9
8.8
6.3
0.08
2.2
1.1
-697
Southwest Bench
GC5806
63 / 25
165.1
170.5
4.9
11.1
0.05
6.4
3.0
-684
Southwest Bench
GC5806
63 / 25
189.6
198.0
8.0
11.9
0.06
1.8
1.1
-674
Southwest Bench
GC5808
63 / 44
122.1
129.9
5.6
1.2
0.01
10.7
4.9
-660
Southwest Bench
GC5808
63 / 44
168.0
186.0
13.3
23.4
0.14
7.5
3.4
-624
Southwest Bench
GC5810
85 / 43
180.5
194.0
13.4
7.5
0.06
3.5
1.7
-620
Southwest Bench
GC5813
83 / 27
166.5
175.0
8.5
23.4
0.11
2.1
1.0
-616
Southwest Bench
GC5816
101 / 25
202.5
205.5
3.0
12.3
0.14
2.0
0.9
-670
Southwest Bench
GC5817
22 / 36
245.0
250.0
4.9
11.7
0.02
0.8
0.4
-603
Southwest Bench
GC5827
24 / -18
319.0
337.0
17.3
4.9
0.06
9.7
2.3
-857
Southwest Bench
GC5827
24 / -18
346.0
351.7
5.6
43.0
0.08
1.7
0.8
-863
Southwest Bench
GC5827
24 / -18
355.0
360.5
5.4
18.6
0.13
8.3
4.9
-864
Southwest Bench
GC5827
24 / -18
413.0
414.0
1.0
12.8
0.03
6.8
2.8
-879
Southwest Bench
GC5833
10 / -68
86.0
104.0
8.0
25.7
0.09
6.2
3.4
-855
Southwest Bench
GC5833
10 / -68
152.5
165.5
9.5
21.9
0.11
6.2
3.2
-912
Southwest Bench
GC5838
63 / -4
137.0
143.5
4.8
85.9
1.34
3.0
2.1
-737
Southwest Bench
GC5841
85 / -22
129.0
140.0
10.6
15.4
0.05
7.7
4.9
-783
200 South
GC5672
210 / -71
201.0
203.3
0.6
5.6
0.01
14.9
6.6
-1489
200 South
GC5672
210 / -71
235.5
241.5
1.6
14.4
0.00
0.7
0.2
-1523
200 South
GC5672
210 / -71
278.5
279.5
0.4
6.6
0.01
6.0
2.4
-1557
200 South
GC5672
210 / -71
296.5
298.0
0.7
15.1
0.01
6.9
3.2
-1572
200 South
GC5672
210 / -71
301.0
306.7
3.4
10.5
0.01
3.7
1.7
-1580
200 South
GC5672
210 / -71
318.0
319.0
0.8
16.1
0.01
0.4
0.2
-1591
200 South
GC5672
210 / -71
502.0
505.0
2.9
20.0
0.01
0.3
0.2
-1761
200 South
GC5672
210 / -71
699.5
700.7
1.0
31.4
0.01
0.4
0.2
-1941
200 South
GC5672
210 / -71
716.0
722.7
5.3
21.3
0.02
0.5
0.3
-1963
200 South
GC5672
210 / -71
728.5
731.0
2.0
11.3
0.07
0.5
0.3
-1971
200 South
GC5672
210 / -71
756.0
760.0
3.8
3.0
0.31
0.2
0.1
-1995
200 South
GC5681
184 / -80
168.9
180.7
11.8
33.1
0.02
4.1
1.9
-1481
200 South
GC5681
184 / -80
193.0
196.4
3.4
13.0
0.01
0.3
0.1
-1515
200 South
GC5681
184 / -80
206.0
265.3
44.7
18.5
0.02
2.6
1.1
-1551
200 South
GC5681
184 / -80
276.0
279.9
0.9
10.3
0.02
4.5
2.0
-1563
200 South
GC5681
184 / -80
472.2
486.9
13.6
14.2
0.02
1.3
0.7
-1767
200 South
GC5681
184 / -80
492.6
506.9
13.6
23.8
0.02
0.8
0.3
-1777
200 South
GC5681
184 / -80
513.5
516.9
3.2
11.7
0.01
1.0
0.4
-1785
200 South
GC5681
184 / -80
649.2
651.2
2.0
0.8
0.22
0.0
0.0
-1926
200 South
GC5681
184 / -80
664.3
678.0
13.7
43.0
0.17
2.8
1.7
-1950
200 South
GC5681
184 / -80
684.0
687.0
3.0
14.8
0.14
0.6
0.2
-1960
200 South
GC5708
237 / -70
64.4
67.5
3.0
23.9
0.02
14.0
8.0
-1350
200 South
GC5708
237 / -70
317.5
343.5
25.6
7.8
0.03
3.8
1.7
-1595
200 South
GC5708
237 / -70
369.0
377.5
7.5
24.9
0.01
10.8
5.9
-1611
200 South
GC5708
237 / -70
406.2
407.2
1.0
1.2
0.01
10.2
4.5
-1642
200 South
GC5708
237 / -70
413.5
415.1
1.1
1.3
0.01
8.2
4.7
-1669
200 South
GC5708
237 / -70
429.1
430.5
1.2
5.6
0.02
13.8
6.5
-1678
200 South
GC5708
237 / -70
472.2
503.5
30.7
7.8
0.06
7.3
4.0
-1759
200 South
GC5708
237 / -70
642.3
648.5
6.1
29.3
0.01
1.1
0.6
-1896
200 South
GC5708
237 / -70
726.1
727.5
0.7
18.9
0.03
7.1
2.3
-1972
200 South
GC5708
237 / -70
736.5
737.8
0.6
7.3
0.25
0.7
0.4
-1981
200 South
GC5717
212 / -30
76.5
78.0
1.4
8.2
0.01
3.7
1.9
-1323
200 South
GC5718
243 / -27
79.5
84.0
4.4
13.8
0.01
13.3
6.3
-1325
200 South
GC5728
243 / -13
145.0
146.5
1.1
17.9
0.01
3.6
1.9
-1317
200 South
GC5728
243 / -13
153.5
154.8
0.7
11.4
0.01
2.2
1.0
-1319
200 South
GC5728
243 / -13
158.5
159.5
0.5
56.4
0.02
15.3
7.3
-1319
200 South
GC5728
243 / -13
162.0
164.0
0.8
7.6
0.01
12.3
6.4
-1320
200 South
GC5728
243 / -13
176.0
178.0
0.9
1.1
0.01
7.9
3.6
-1325
200 South
GC5728
243 / -13
190.5
191.5
1.0
1.2
0.02
7.6
3.8
-1319
200 South
GC5728
243 / -13
265.0
267.5
1.1
1.8
0.08
5.1
1.9
-1321
200 South
GC5728
243 / -13
316.7
319.6
1.4
13.5
0.01
0.7
0.3
-1322
200 South
GC5728
243 / -13
727.8
732.0
3.8
4.3
0.06
5.2
2.9
-1448
200 South
GC5728
243 / -13
758.4
771.7
13.3
4.5
0.09
8.1
4.9
-1456
200 South
GC5734
236 / -72
69.4
78.0
8.3
26.4
0.01
12.1
6.7
-1361
200 South
GC5734
236 / -72
134.2
136.4
2.1
23.8
0.01
9.3
4.3
-1417
200 South
GC5734
236 / -72
746.9
768.0
14.7
17.4
0.07
0.7
0.3
-2008
200 South
GC5734
236 / -72
778.0
781.0
2.5
6.9
0.13
0.5
0.2
-2017
200 South
GC5734
236 / -72
792.0
801.4
9.4
12.3
0.20
0.5
0.2
-2029
200 South
GC5738
239 / -79
76.2
80.5
3.9
33.7
0.02
19.2
9.4
-1365
200 South
GC5738
239 / -79
116.0
117.0
1.0
34.0
0.01
0.3
0.2
-1403
200 South
GC5738
239 / -79
124.0
132.0
7.9
12.4
0.01
1.6
0.7
-1417
200 South
GC5738
239 / -79
137.0
154.0
11.1
35.2
0.07
2.1
1.1
-1443
200 South
GC5738
239 / -79
751.0
787.0
31.9
10.8
0.19
0.3
0.1
-2058
200 South
GC5743
227 / -69
74.0
79.6
5.6
24.9
0.02
11.3
5.9
-1364
200 South
GC5743
227 / -69
84.5
88.0
3.3
25.0
0.01
0.4
0.1
-1371
200 South
GC5743
227 / -69
747.0
765.0
9.9
32.9
0.05
1.1
0.5
-1988
200 South
GC5743
227 / -69
783.7
796.5
5.9
8.6
0.05
0.4
0.2
-2002
200 South
GC5748
230 / -54
73.0
74.0
0.8
15.1
0.02
6.6
3.3
-1350
200 South
GC5748
230 / -54
277.0
278.0
1.0
12.4
0.02
1.9
1.3
-1514
200 South
GC5748
230 / -54
375.5
376.6
0.7
13.9
0.02
1.2
0.3
-1597
200 South
GC5748
230 / -54
397.0
409.0
7.5
32.8
0.01
2.6
1.2
-1625
200 South
GC5750
230 / -9
211.0
212.1
0.4
16.3
0.01
4.2
2.1
-1310
200 South
GC5750
230 / -9
220.0
221.9
0.7
5.5
0.01
6.8
3.3
-1312
200 South
GC5754
250 / -80
744.0
749.0
4.8
6.4
0.28
0.4
0.2
-2024
200 South
GC5759
248 / -73
797.0
808.0
8.2
40.8
0.11
0.5
0.3
-2061
200 South
GC5759
248 / -73
813.0
817.0
2.2
10.0
0.13
0.1
0.0
-2068
200 South
GC5759
248 / -73
820.0
835.0
14.5
25.9
0.22
0.6
0.3
-2080
200 South
GC5764
247 / -67
742.9
749.5
3.0
30.0
0.00
1.0
0.5
-1981
200 South
GC5764
247 / -67
765.1
769.1
2.1
20.3
0.02
0.6
0.3
-1998
200 South
GC5764
247 / -67
785.4
788.4
1.6
12.0
0.09
0.4
0.2
-2015
200 South
GC5764
247 / -67
791.4
794.2
1.5
7.2
0.25
0.3
0.1
-2020
200 South
GC5774
210 / -79
794.0
798.5
4.4
18.7
0.26
1.3
0.8
-2075
200 South
GC5775
228 / -67
818.0
823.0
4.8
10.7
0.12
0.2
0.1
-2069
200 South
GC5775
228 / -67
833.0
838.9
5.7
14.8
0.08
0.5
0.3
-2084
200 South
GC5779
229 / -48
372.0
413.0
24.4
14.8
0.01
2.8
1.6
-1612
200 South
GC5783
238 / -67
773.0
775.1
1.6
40.6
0.02
0.5
0.2
-2018
200 South
GC5783
238 / -67
785.7
797.0
9.1
10.6
0.06
0.6
0.3
-2037
200 South
GC5783
238 / -67
817.0
829.0
9.5
67.4
0.47
1.2
0.5
-2068
200 South
GC5786
243 / -40
303.1
306.7
3.1
23.3
0.04
1.5
0.9
-1487
200 South
GC5802
230 / -75
846.0
851.0
5.0
8.6
0.09
1.1
0.6
-2116
200 South
GC5809
241 / -54
629.0
630.0
0.9
7.0
0.01
3.8
1.9
-1804
200 South
GC5812
243 / -37
233.5
236.5
3.0
12.0
0.01
0.7
0.4
-1491
200 South
GC5812
243 / -37
242.9
246.5
3.5
13.6
0.01
1.0
0.5
-1495
200 South
GC5812
243 / -37
319.0
343.8
24.1
21.4
0.01
3.6
2.0
-1503
200 South
GC5815
243 / -25
90.1
91.1
0.6
10.9
0.01
7.4
4.4
-1330
200 South
GC5818
243 / 11
60.6
63.5
2.8
17.9
0.02
15.5
9.5
-1274
200 South
GC5818
243 / 11
67.5
73.0
5.1
26.0
0.03
20.5
12.5
-1272
200 South
GC5820
243 / 59
45.5
50.0
3.9
4.8
0.07
3.3
1.7
-1237
200 South
GC5823
243 / 90
99.0
103.0
4.0
2.4
0.06
4.7
2.6
-1174
200 South
GC5823
243 / 90
129.0
131.0
2.0
2.6
0.01
7.6
3.4
-1146
200 South
GC5824
63 / 79
101.8
104.0
2.2
4.9
0.09
3.6
2.0
-1175
200 South
GC5824
63 / 79
116.7
128.0
11.3
5.2
0.14
5.0
2.6
-1153
200 South
GC5828
63 / 59
104.5
105.5
1.0
5.4
0.06
4.1
2.3
-1190
200 South
GC5828
63 / 59
141.5
142.5
0.9
17.5
0.02
5.7
5.4
-1159
200 South
GC5828
63 / 59
232.0
234.5
0.4
59.2
0.04
2.3
1.3
-1080
200 South
GC5834
63 / -56
63.5
68.0
4.2
6.3
0.02
6.8
3.6
-1354
200 South
GC5837
63 / -788
50.0
55.0
4.0
14.9
0.15
1.3
0.9
-1351
200 South
GC5839
63 / -40
43.5
45.0
1.4
2.0
0.01
12.6
5.5
-1329
200 South
GC5839
63 / -40
81.0
82.5
1.5
9.2
0.02
5.9
7.7
-1354
200 South
GC5842
63 / -4
51.0
53.0
1.8
0.7
0.01
9.0
6.8
-1300
200 South
GC5842
63 / -4
81.0
82.0
0.9
14.6
0.01
8.2
3.8
-1301
200 South
GC5842
63 / -4
87.5
90.0
2.3
2.7
0.01
7.0
3.5
-1302
200 South
GC5855
243 / -82
47.0
48.0
0.5
7.4
0.01
4.2
2.3
-1348
200 South
GC5855
243 / -82
161.0
163.0
1.4
4.0
0.01
6.0
5.1
-1461
East
GC5722
63 / -32
313.5
315.0
1.5
5.9
0.05
4.2
3.0
470
East
GC5722
63 / -32
325.0
329.0
4.0
15.5
0.15
12.4
3.9
464
East
GC5727
71 / -7
394.0
398.5
4.3
17.7
0.10
1.8
0.6
591
East
GC5730
72 / -21
322.5
323.5
0.9
8.5
0.04
11.3
3.5
519
East
GC5730
72 / -21
356.3
359.6
2.9
7.9
0.14
17.3
3.0
506
East
GC5732
78 / -38
323.1
333.0
9.6
9.8
0.06
11.9
3.0
431
East
GC5741
48 / -54
302.0
303.0
1.0
3.3
0.07
14.9
5.4
396
East
GC5741
48 / -54
304.0
305.7
1.6
3.6
0.04
11.8
3.0
394
East
GC5741
48 / -54
307.8
311.0
3.2
4.1
0.03
13.5
4.0
390
East
GC5741
48 / -54
321.0
324.0
3.0
22.8
0.38
4.6
1.1
379
East
GC5744
46 / -25
342.7
346.1
3.2
7.3
0.06
13.0
3.8
494
East
GC5744
46 / -25
362.8
364.0
1.1
14.5
0.22
24.9
8.8
487
East
GC5747
52 / -37
329.2
330.2
1.0
19.6
0.25
23.2
4.8
447
East
GC5751
75 / -37
298.0
299.0
1.0
14.7
0.00
16.9
5.4
464
East
GC5751
75 / -37
329.0
337.0
7.9
20.4
0.12
10.4
2.5
442
East
GC5753
79 / -55
311.0
333.5
22.0
6.4
0.17
18.7
4.3
369
East
GC5755
92 / -72
356.5
357.5
0.9
28.9
0.16
18.1
5.8
302
East
GC5763
46 / -62
351.0
355.5
4.2
9.2
0.09
12.1
3.8
337
East
GC5765
51 / -46
331.0
333.0
2.0
13.9
0.10
16.2
6.6
412
East
GC5765
51 / -46
341.0
342.5
1.5
8.8
0.08
30.3
8.0
405
East
GC5766
54 / -29
331.0
332.0
1.0
10.2
0.06
15.9
8.3
492
East
GC5766
54 / -29
344.4
347.1
2.7
16.2
0.24
17.7
5.2
484
East
GC5769
56 / -14
364.4
371.0
5.6
26.7
0.35
14.9
4.7
558
East
GC5772
63 / -74
391.7
398.0
5.8
72.3
0.34
4.6
1.4
268
East
GC5778
80 / -62
367.5
380.0
11.1
51.6
0.05
0.1
0.0
312
East
GC5782
119 / -77
415.5
421.3
4.2
13.7
0.11
30.9
8.7
239
East
GC5785
243 / -62
410.0
412.0
1.9
10.1
0.03
21.5
5.3
291
East
GC5785
243 / -62
445.0
448.0
2.9
227.8
2.84
4.2
0.4
261
East
GC5785
243 / -62
474.0
476.0
1.9
32.3
0.55
3.0
0.9
236
East
GC5800
289 / -83
468.0
472.5
4.5
11.5
0.11
20.9
7.5
188
East
GC5804
243 / -90
478.0
482.0
4.0
16.1
0.52
30.6
9.6
175
East
GC5807
135 / -79
505.5
509.5
3.9
7.7
0.07
21.7
7.3
158
East
GC5807
135 / -79
521.0
522.0
1.0
6.2
0.03
22.9
10.4
144
East
GC5814
55 / -82
498.5
501.5
2.9
10.5
0.07
32.3
10.1
160
East
GC5819
46 / -75
498.0
517.0
14.6
27.6
0.27
18.3
6.8
157
East
GC5822
99 / -58
69.0
73.5
3.9
23.5
0.05
17.7
3.7
470
East
GC5822
99 / -58
80.0
82.0
1.6
6.7
0.06
8.2
2.1
462
East
GC5826
223 / -77
383.5
388.8
5.2
7.8
0.18
10.4
3.1
155
East
GC5829
234 / -66
418.5
422.5
3.6
6.1
0.17
23.8
6.1
150
East
GC5836
123 / -74
137.5
140.0
2.5
46.4
0.06
10.9
2.4
397
East
GC5851
14 / -77
123.6
125.0
0.6
6.5
0.04
12.0
3.3
409
East
GC5851
14 / -77
129.0
130.0
0.5
8.7
0.05
7.5
1.7
400
East
GC5851
14 / -77
133.0
140.0
3.2
33.9
0.18
25.7
5.4
394
East
GC5863
123 / 28
338.5
355.5
11.1
12.4
0.07
5.6
2.9
66
East
GC5867
36 / -22
306.0
308.0
1.5
15.2
0.07
6.6
4.3
515
East
GC5869
59 / -53
305.8
309.6
3.6
10.6
0.21
5.4
2.1
390
West
GC5715
80 / 7
99.0
104.0
4.1
7.5
0.03
10.7
5.0
-176
West
GC5715
80 / 7
117.0
118.0
0.8
13.5
0.05
6.5
2.9
-178
West
GC5719
105 / 10
120.2
121.2
1.0
17.6
0.02
22.2
10.2
-167
West
GC5719
105 / 10
130.0
133.5
3.1
26.1
0.00
0.0
0.0
-171
West
GC5724
76 / 25
97.0
104.0
1.6
8.6
0.18
16.0
8.6
-136
West
GC5725
128 / -61
0.0
1.0
1.0
7.5
0.01
22.4
14.4
-170
West
GC5725
128 / -61
28.1
33.2
4.3
3.0
0.01
12.8
6.3
-211
West
GC5725
128 / -61
36.7
41.4
4.2
45.9
0.26
7.9
3.3
-220
West
GC5725
128 / -61
74.5
81.3
6.4
30.8
0.30
13.9
6.8
-271
West
GC5726
210 / -39
19.0
22.7
3.6
10.5
0.02
22.3
12.5
-189
West
GC5726
210 / -39
56.0
71.5
13.9
19.4
0.21
3.1
1.7
-230
West
GC5729
235 / -22
95.4
106.0
4.5
13.4
0.19
13.0
5.9
-217
West
GC5729
235 / -22
172.0
182.7
9.9
36.5
0.15
10.5
4.4
-255
West
GC5729
235 / -22
232.7
254.0
19.0
7.4
0.14
10.1
1.5
-288
West
GC5731
229 / 1
124.0
125.2
1.2
6.4
0.06
30.8
12.0
-148
West
GC5731
229 / 1
144.7
176.0
31.2
55.2
0.16
16.5
8.9
-162
West
GC5731
229 / 1
189.0
195.1
6.1
16.8
0.23
16.0
11.7
-165
West
GC5731
229 / 1
213.8
244.9
31.0
7.6
0.17
23.3
7.2
-167
West
GC5731
229 / 1
259.7
268.3
8.6
15.2
0.05
14.7
7.0
-173
West
GC5731
229 / 1
273.0
285.9
12.9
8.1
0.01
18.5
7.7
-178
West
GC5731
229 / 1
300.0
305.0
5.0
22.7
0.13
1.1
0.6
-176
West
GC5733
63 / -63
1.0
5.6
4.3
19.0
0.05
22.9
11.7
-183
West
GC5733
63 / -63
10.3
21.5
2.8
12.1
0.19
12.5
4.6
-197
West
GC5733
63 / -63
75.0
82.3
5.5
11.7
0.20
3.6
1.4
-251
West
GC5737
91 / -21
6.0
13.0
6.7
12.5
0.27
11.2
5.6
-146
West
GC5737
91 / -21
24.3
25.3
0.7
15.5
0.08
17.1
5.6
-155
West
GC5737
91 / -21
129.6
130.9
1.3
10.9
0.05
18.0
6.0
-235
West
GC5739
108 / -41
13.5
16.1
2.4
11.4
0.12
12.4
3.7
-151
West
GC5739
108 / -41
19.5
20.5
0.9
3.4
0.08
7.4
1.5
-156
West
GC5739
108 / -41
89.2
92.2
2.5
0.9
0.01
15.1
5.2
-236
West
GC5739
108 / -41
117.3
118.5
1.0
10.1
0.13
29.4
10.4
-266
West
GC5740
154 / -52
0.0
3.5
3.3
5.9
0.05
9.2
5.7
-137
West
GC5740
154 / -52
7.8
11.3
3.4
32.1
0.03
23.7
12.8
-147
West
GC5740
154 / -52
16.1
20.0
3.5
13.0
0.13
18.2
5.4
-159
West
GC5740
154 / -52
65.2
67.1
1.9
4.8
0.06
11.7
5.2
-221
West
GC5740
154 / -52
82.0
83.0
1.0
32.6
0.45
6.3
2.4
-241
West
GC5742
199 / -38
32.0
82.5
47.2
37.0
0.26
18.3
9.5
-198
West
GC5742
199 / -38
101.5
113.5
11.0
6.3
0.06
8.1
3.5
-222
West
GC5742
199 / -38
163.0
164.0
0.9
12.5
0.07
26.6
10.3
-254
West
GC5746
82 / -2
19.0
22.2
3.1
60.5
0.09
10.0
4.7
-139
West
GC5746
82 / -2
113.0
126.3
12.6
6.4
0.06
10.3
3.1
-172
9A
GC5622
63 / 78
246.0
247.0
1.0
11.9
0.07
0.1
0.0
10
Gallagher Fault Block
GC-5728
243 / -13
727.8
732.0
3.8
4.3
0.06
5.2
2.9
-1448
Gallagher Fault Block
GC-5728
243 / -13
758.4
771.7
13.3
4.5
0.09
8.1
4.9
-1456
Casa Berardi, Quebec
Zone
Drillhole Number
Drill Hole Azm/Dip
Sample From (feet)
Sample To (feet)
Est. True Width (feet)
Gold (oz/ton)
Depth From Mine Surface
(feet)
113 Zone
CBW-1182
334 / 20
793.8
806.9
12.5
0.02
-2976
113 Zone
CBW-1183
334 /-2
624.8
634.7
9.5
0.56
-3284
113 Zone
Including
631.7
634.7
2.6
1.61
-3284
113 Zone
CBW-1183
334 /-2
733.1
747.8
14.1
0.06
-3313
113 Zone
Including
742.9
745.5
2.6
0.18
-3314
113 Zone
CBW-1183
334 /-2
799.7
802.9
3.0
0.08
-3330
113 Zone
CBW-1183
334 /-2
815.4
820.0
4.3
0.03
-3334
113 Zone
CBW-1186
336 / 10
728.2
742.9
14.8
0.02
-3122
118 Zone
CBP-1175
350 /-4
312.3
321.8
8.2
0.19
-3632
118 Zone
Including
312.3
315.5
2.6
0.41
-3632
118 Zone
CBP-1176
330/-13
317.5
324.7
5.9
0.10
-3677
118 Zone
Including
317.5
321.1
3.0
0.21
-3676
118 Zone
CBP-1179
309 / 4
909.2
922.7
8.2
0.20
-3585
118 Zone
Including
909.2
912.8
1.3
0.67
-3585
118 Zone
CBP-1180
354 /-55
280.8
290.6
6.2
0.02
-3829
118 Zone
CBP-1182
354 / 4
272.9
282.7
7.9
0.03
-3062
118 Zone
CBP-1186
56 /-50
323.1
335.5
8.2
0.05
-3325
118 Zone
Including
327.3
329.3
1.3
0.31
-3325
118 Zone
CBP-1187
46 /-20
275.5
286.7
10.5
0.06
-3169
118 Zone
Including
278.8
283.7
4.6
0.13
-3169
119 Zone
CBP-1162
179 /-11
788.2
801.3
12.1
0.00
-1080
119 Zone
CBP-1163
180 /-1
704.2
713.4
4.9
0.02
-944
119 Zone
CBP-1164
186 /-19
775.7
791.5
13.8
0.05
-1153
119 Zone
Including
784.9
786.9
1.3
0.29
-1153
119 Zone
CBP-1165
188 /28
694.4
709.1
12.8
0.00
-626
119 Zone
CBP-1169
169 /-35
629.1
645.5
14.8
0.16
-1286
119 Zone
Including
642.9
645.5
2.0
0.61
-1289
119 Zone
CBP-1169
169 /-35
662.6
682.2
18.7
0.08
-1305
119 Zone
CBP-1169
169 /-35
688.8
701.9
12.5
0.08
-1317
119 Zone
Including
700.6
701.9
1.3
0.31
-1320
123 Zone
CBP-1213
28 /-76
1538.6
1547.8
5.9
0.11
-4954
123 Zone
Including
1543.2
1547.8
3.0
0.22
-4956
123 Zone
CBP-1215
40 /-57
995.8
1018.4
21.0
0.17
-4268
123 Zone
Including
995.8
999.1
2.6
0.26
-4261
123 Zone
CBP-1216
74 /-83
2481.0
2495.8
8.2
0.02
-5891
148 Zone
CBE-0248
341 /-29
1279.5
1299.2
16.7
0.05
-2180
148 Zone
CBE-0249
351 /-28
1288.7
1306.8
16.1
0.05
-2147
148 Zone
CBE-0250
351 /-39
1351.4
1363.8
9.8
0.03
-2326
148 Zone
CBE-0251
351 /-55
1520.9
1550.5
19.7
0.04
-2713
148 Zone
CBE-0251
351 /-55
2307.8
2316.3
6.2
0.06
-3273
148 Zone
CBE-0253
7 /-40
1570.5
1581.3
8.2
0.04
-2490
148 Zone
CBS-22-063
329 /-69
1599.0
1603.9
3.0
0.14
-1425
View source
version on businesswire.com: https://www.businesswire.com/news/home/20221109005426/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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