HL Hecla Mining Company

Second highest revenues, silver reserves and production; Expecting silver production growth

For The Period Ended: December 31, 2023

Hecla Mining Company (NYSE:HL) ("Hecla" or the "Company") today announced fourth quarter 2023 financial and operating results.

HIGHLIGHTS

• Silver reserves of 238 million ounces, silver production of 14.3 million ounces, and total sales of $720.2 million, all are the second highest in Company history.
• Lucky Friday restarted production on January 9th, with first insurance proceeds received in February.
• Hecla received a U.S. patent for the Underhand Closed Bench ("UCB") mining method.
• Greens Creek achieved record throughput and generated $157.3 million in cash flow from operations and free cash flow of $121.6 million.2
• Casa Berardi began the transition to surface only mining with results exceeding expectations.
• Keno Hill began silver production in the second half of the year, focusing on improving safety and environmental performance while completing major infrastructure projects.
• Completed Technical Report Summary for Keno Hill and Casa Berardi demonstrating the value of the assets.
• All-Injury Frequency Rate ("AIFR") of 1.45, lower than the national average, Greens Creek and Lucky Friday recorded their lowest AIFR of 0.29 and 0.66, respectively.

"Hecla reported the second largest silver reserves, largest gold resource, and second highest silver production and revenues in our history despite the Lucky Friday losing five months of production due to a fire," said Phillips S. Baker Jr, President and CEO. "Greens Creek delivered another year of strong and consistent performance as we increased throughput. Casa Berardi exceeded our expectations for tons and cost per ton from operating our own surface fleet, and this strong performance is reflected in the updated technical report. At Keno Hill, we slowed the ramp-up of the mine due to the safety and environmental performance; however, with the silver grade over twice the grade of our other mines, it still contributed significantly to our silver production and, as the technical report shows, it will contribute even more in the future."

Baker continued, "Because of the suspension of production at Lucky Friday due to the fire and continued investment in ramp-up at Keno Hill, we have drawn on our revolving credit facility which we expect to pay down in 2024 with all four mines in operation and anticipated receipt of approximately $50 million of insurance proceeds. With Lucky Friday back in production and Keno Hill's continued ramp-up, we expect silver production to increase by 15-20% this year, and 30% by 2026, making Hecla one of the world’s fastest growing silver companies."

Baker concluded, "2023 was also a significant year in the energy transition as 75% of the world’s new renewable electric power generation capacity was solar, requiring 500,000 ounces per gigawatt of new installed capacity, which equates to as much as 190 million ounces of silver in solar demand. China alone installed as much solar as the entire world did in 2022, and significant new solar facilities are now planned for the United States. As the demand for silver in solar continues to rise, Hecla, the largest silver producer in the U.S., and soon Canada, is well positioned to leverage higher expected silver prices driven by increasing demand."

FINANCIAL OVERVIEW

In the following table and throughout this release, "total cost of sales" is comprised of cost of sales and other direct production costs and depreciation, depletion and amortization; "prior year" refers to 2022, and "prior quarter" refers to the third quarter of 2023. In section ‘Operations Overview’, free cash flow for operations excludes hedging adjustments.2

In Thousands unless stated otherwise

 

4Q-2023

 

 

3Q-2023

 

 

2Q-2023

 

 

1Q-2023

 

 

4Q-2022

 

 

FY-2023

 

 

FY-2022

 

FINANCIAL AND PRODUCTION SUMMARY

 

Sales

 

$

160,690

 

 

$

181,906

 

 

$

178,131

 

 

$

199,500

 

 

$

194,825

 

 

$

720,227

 

 

$

718,905

 

Total cost of sales

 

$

153,825

 

 

$

148,429

 

 

$

140,472

 

 

$

164,552

 

 

$

169,807

 

 

$

607,278

 

 

$

602,749

 

Gross profit

 

$

6,865

 

 

$

33,477

 

 

$

37,659

 

 

$

34,948

 

 

$

25,018

 

 

$

112,949

 

 

$

116,156

 

Net loss applicable to common stockholders

 

$

(43,073

)

 

$

(22,553

)

 

$

(15,832

)

 

$

(3,311

)

 

$

(4,590

)

 

$

(84,769

)

 

$

(37,900

)

Basic loss per common share (in dollars)

 

$

(0.07

)

 

$

(0.04

)

 

$

(0.03

)

 

$

(0.01

)

 

$

(0.01

)

 

$

(0.14

)

 

$

(0.07

)

Adjusted EBITDA1

 

$

36,661

 

 

$

46,251

 

 

$

67,740

 

 

$

61,901

 

 

$

62,261

 

 

$

212,553

 

 

$

217,492

 

Total Debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

662,815

 

 

$

551,841

 

Net Debt to Adjusted EBITDA1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2.6

 

 

 

1.9

 

Cash provided by operating activities

 

$

884

 

 

$

10,235

 

 

$

23,777

 

 

$

40,603

 

 

$

36,120

 

 

$

75,499

 

 

$

89,890

 

Capital Expenditures

 

$

(62,622

)

 

$

(55,354

)

 

$

(51,468

)

 

$

(54,443

)

 

$

(56,140

)

 

$

(223,887

)

 

$

(149,378

)

Free Cash Flow2

 

$

(61,738

)

 

$

(45,119

)

 

$

(27,691

)

 

$

(13,840

)

 

$

(20,020

)

 

$

(148,388

)

 

$

(59,488

)

Silver ounces produced

 

 

2,935,631

 

 

 

3,533,704

 

 

 

3,832,559

 

 

 

4,040,969

 

 

 

3,663,433

 

 

 

14,342,863

 

 

 

14,182,987

 

Silver payable ounces sold

 

 

2,847,591

 

 

 

3,142,227

 

 

 

3,360,694

 

 

 

3,604,494

 

 

 

3,756,701

 

 

 

12,955,006

 

 

 

12,311,595

 

Gold ounces produced

 

 

37,168

 

 

 

39,269

 

 

 

35,251

 

 

 

39,571

 

 

 

43,634

 

 

 

151,259

 

 

 

175,807

 

Gold payable ounces sold

 

 

33,230

 

 

 

36,792

 

 

 

31,961

 

 

 

39,619

 

 

 

40,097

 

 

 

141,602

 

 

 

165,818

 

Cash Costs and AISC, each after by-product credits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Silver cash costs per ounce 4

 

$

4.94

 

 

$

3.31

 

 

$

3.32

 

 

$

2.14

 

 

$

4.79

 

 

$

3.23

 

 

$

2.06

 

Silver AISC per ounce 4

 

$

17.48

 

 

$

11.39

 

 

$

11.63

 

 

$

8.96

 

 

$

13.98

 

 

$

11.76

 

 

$

10.66

 

Gold cash costs per ounce 4

 

$

1,702

 

 

$

1,475

 

 

$

1,658

 

 

$

1,775

 

 

$

1,696

 

 

$

1,652

 

 

$

1,478

 

Gold AISC per ounce 4

 

$

1,969

 

 

$

1,695

 

 

$

2,147

 

 

$

2,392

 

 

$

2,075

 

 

$

2,048

 

 

$

1,773

 

Realized Prices

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Silver, $/ounce

 

$

23.47

 

 

$

23.71

 

 

$

23.67

 

 

$

22.62

 

 

$

22.03

 

 

$

23.33

 

 

$

21.53

 

Gold, $/ounce

 

$

1,998

 

 

$

1,908

 

 

$

1,969

 

 

$

1,902

 

 

$

1,757

 

 

$

1,939

 

 

$

1,803

 

Lead, $/pound

 

$

1.09

 

 

$

1.07

 

 

$

0.99

 

 

$

1.02

 

 

$

1.05

 

 

$

1.03

 

 

$

1.01

 

Zinc, $/pound

 

$

1.39

 

 

$

1.52

 

 

$

1.13

 

 

$

1.39

 

 

$

1.24

 

 

$

1.35

 

 

$

1.41

 

Sales in 2023 increased to $720.2 million as higher realized prices for silver and gold offset lower gold and lead sales volumes. Gold production declined due to Casa Berardi reducing underground production as it transitions to a surface only operation by mid-2024. Lead production declined due to the temporary suspension of production at the Lucky Friday.

Gross profit in 2023 was $112.9 million, a decrease of 3% over the prior year. The decrease is attributable to (i) lower gross profit at Casa Berardi due to lower sales volumes and accelerated depreciation, depletion, and amortization based on the shorter underground mine life, and (ii) only seven months of production at Lucky Friday partially offset by higher gross profit realized at Greens Creek.

Net loss applicable to common stockholders for the year was $84.8 million, an increase over the prior year primarily related to:

• Ramp-up and suspension costs increased by $52.1 million, reflecting the impact of the Lucky Friday suspension, and the ramp-up of production at Keno Hill.
• A foreign exchange loss of $3.8 million, compared to a gain of $7.2 million in the prior year, reflecting the impact of the U.S. dollar appreciation on Canadian dollar denominated monetary assets and liabilities.
• An income tax provision of $1.2 million, compared to a benefit of $7.6 million due to an increase in the valuation allowance for losses incurred by Keno Hill during the year.

 

The above items were partly offset by:

• A decrease in exploration and pre-development expense of $13.5 million due to lower spend at Casa Berardi, Mexico, and Nevada sites, partially offset by higher spend at Greens Creek and Keno Hill.
• Fair value adjustments, net, changed from a loss to a gain, increasing by $7.6 million, reflecting unrealized gains on our marketable securities portfolio and de-designated hedging contracts.
• Other operating income of $1.4 million, compared to other operating expense of $6.3 million, reflecting the receipt of $5.9 million from an insurance settlement (unrelated to Lucky Friday).

Consolidated silver total cost of sales in 2023 was $379.6 million and increased by 9% from the prior year, primarily due to the temporary suspension of production at Lucky Friday during the year offset by higher labor and maintenance costs at Greens Creek. Cash costs and AISC per silver ounce, each after by-product credits, were $3.23 and $11.76, respectively, and increased over the prior year primarily due to lower by-product credits (primarily lower lead and zinc production and lower realized prices for zinc) and lower silver production.3,4

Consolidated gold total cost of sales decreased by 10% to $227.7 million primarily due to lower production costs at Casa Berardi as the underground East Mine ceased production given the strategic change announced in August to transition to a surface only operation with underground operations expected to be completed in mid-2024. Cash costs and AISC per gold ounce, each after by-product credits, were $1,652 and $2,048, respectively and increased over the prior year as lower gold production offset lower production costs and sustaining capital investment.3,4

Adjusted EBITDA for the year was $212.6 million, in line with the prior year. The ratio of net debt to adjusted EBITDA increased to 2.6 due to higher net debt attributable to draws on the credit facility and the use of cash reflecting the Company's investment in Keno Hill's development, and the temporary suspension of operations at the Lucky Friday.1 Cash and cash equivalents at the end of the fourth quarter were $106.4 million and included $128 million drawn on the revolving credit facility.

Cash provided by operating activities was $75.5 million and decreased by $14.4 million from the prior year primarily due to higher ramp-up and suspension costs and unfavorable working capital changes.

Capital expenditures, net of finance leases, were $223.9 million in 2023, compared to $149.4 million in 2022. The increase was due to (i) higher capital investment at Casa Berardi, primarily for tailings construction activities and mobile equipment purchases for the open pit operations, (ii) mine development and infrastructure projects at Keno Hill, (iii) restart plans to establish an alternative secondary escapeway as a result of the fire and completion of the service hoist and the coarse ore bunker at Lucky Friday and (iv) other sustaining capital projects at Greens Creek.

Free cash flow for the year was negative $148.4 million, compared to negative $59.5 million in the prior year, with the decrease primarily due to higher capital expenditures.2

Forward Sales Contracts for Base Metals and Foreign Currency

The Company uses financially settled forward sales contracts to manage exposures to zinc and lead price changes in forecasted concentrate shipments. On December 31, 2023, the Company had contracts covering approximately 50% of the forecasted payable lead production from 2024 - 2025 at an average price of $0.98 per pound.

The Company also manages Canadian dollar ("CAD") exposure through forward contracts. At December 31, 2023, the Company had hedged approximately 60% of forecasted Casa Berardi and Keno Hill CAD denominated direct production costs through 2026 at an average CAD/USD rate of 1.32. The Company has also hedged approximately 26% of Casa Berardi and Keno Hill CAD denominated total capital expenditures through 2026 at 1.35.

OPERATIONS OVERVIEW

Greens Creek Mine - Alaska

Dollars are in thousands except cost per ton

 

4Q-2023

 

 

3Q-2023

 

 

2Q-2023

 

 

1Q-2023

 

 

4Q-2022

 

 

FY-2023

 

 

FY-2022

 

GREENS CREEK

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tons of ore processed

 

 

220,186

 

 

 

228,978

 

 

 

232,465

 

 

 

233,167

 

 

 

230,225

 

 

 

914,796

 

 

 

881,445

 

Total production cost per ton

 

$

223.98

 

 

$

200.30

 

 

$

194.94

 

 

$

198.60

 

 

$

211.29

 

 

$

204.20

 

 

$

196.73

 

Ore grade milled - Silver (oz./ton)

 

 

12.9

 

 

 

13.1

 

 

 

12.8

 

 

 

14.4

 

 

 

13.1

 

 

 

13.3

 

 

 

13.6

 

Ore grade milled - Gold (oz./ton)

 

 

0.09

 

 

 

0.09

 

 

 

0.10

 

 

 

0.08

 

 

 

0.08

 

 

 

0.09

 

 

 

0.08

 

Ore grade milled - Lead (%)

 

 

2.8

 

 

 

2.5

 

 

 

2.5

 

 

 

2.6

 

 

 

2.6

 

 

 

2.6

 

 

 

2.7

 

Ore grade milled - Zinc (%)

 

 

6.5

 

 

 

6.5

 

 

 

6.5

 

 

 

6.0

 

 

 

6.7

 

 

 

6.4

 

 

 

6.7

 

Silver produced (oz.)

 

 

2,260,027

 

 

 

2,343,192

 

 

 

2,355,674

 

 

 

2,772,859

 

 

 

2,433,275

 

 

 

9,731,752

 

 

 

9,741,935

 

Gold produced (oz.)

 

 

14,651

 

 

 

15,010

 

 

 

16,351

 

 

 

14,884

 

 

 

12,989

 

 

 

60,896

 

 

 

48,216

 

Lead produced (tons)

 

 

4,910

 

 

 

4,740

 

 

 

4,726

 

 

 

5,202

 

 

 

4,985

 

 

 

19,578

 

 

 

19,480

 

Zinc produced (tons)

 

 

12,535

 

 

 

13,224

 

 

 

13,255

 

 

 

12,482

 

 

 

13,842

 

 

 

51,496

 

 

 

52,312

 

Sales

 

$

93,543

 

 

$

96,459

 

 

$

95,891

 

 

$

98,611

 

 

$

95,374

 

 

$

384,504

 

 

$

335,062

 

Total cost of sales

 

$

(70,231

)

 

$

(60,322

)

 

$

(63,054

)

 

$

(66,288

)

 

$

(70,075

)

 

$

(259,895

)

 

$

(232,718

)

Gross profit

 

$

23,312

 

 

$

36,137

 

 

$

32,837

 

 

$

32,323

 

 

$

25,299

 

 

$

124,609

 

 

$

102,344

 

Cash flow from operations

 

$

34,576

 

 

$

36,101

 

 

$

43,302

 

 

$

43,346

 

 

$

44,769

 

 

$

157,325

 

 

$

150,621

 

Exploration

 

$

1,324

 

 

$

4,283

 

 

$

1,760

 

 

$

448

 

 

$

1,050

 

 

$

7,815

 

 

$

5,920

 

Capital additions

 

$

(15,996

)

 

$

(12,060

)

 

$

(8,828

)

 

$

(6,658

)

 

$

(12,150

)

 

$

(43,542

)

 

$

(36,898

)

Free cash flow 2

 

$

19,904

 

 

$

28,324

 

 

$

36,234

 

 

$

37,136

 

 

$

33,669

 

 

$

121,598

 

 

$

119,643

 

Cash cost per ounce, after by-product credits 3

 

$

4.94

 

 

$

3.04

 

 

$

1.33

 

 

$

1.16

 

 

$

4.26

 

 

$

2.53

 

 

$

0.70

 

AISC per ounce, after by-product credits 4

 

$

12.00

 

 

$

8.18

 

 

$

5.34

 

 

$

3.82

 

 

$

8.61

 

 

$

7.14

 

 

$

5.17

 

 

Greens Creek produced 9.7 million ounces of silver in 2023, in line with the prior year. Gold production increased 26% to 60,896 ounces due to higher throughput and grades. Lead production was consistent with the prior year while zinc production declined 2% due to lower grades. The mine achieved record throughput, which has increased 25% since the Company became the operator in 2008.

Sales in the fourth quarter were $93.5 million, a decrease of 3% over the prior quarter, as higher realized gold prices and higher silver and lead sales volumes were offset by lower gold and zinc sales volumes and lower realized silver prices. Total cost of sales was $70.2 million, an increase of 16% over the prior quarter primarily due to higher production costs attributable to higher labor costs, increased fuel usage following three significant weather events that resulted in twelve days of lost production during the fourth quarter, and higher maintenance costs. Cash costs and AISC per silver ounce, each after by-product credits, were $4.94 and $12.00 and increased over the prior quarter primarily due to lower base metal by-product credits (primarily zinc due to lower production), higher production costs and lower silver production. Increased AISC per silver ounce after by-product credits was attributable to higher sustaining capital investment of $15.2 million ($11.3 million in the prior quarter) due to the timing of equipment purchases and surface projects.3,4 Cash flow from operations was $34.6 million, in line with the prior quarter. Capital investment was $16.0 million during the quarter, an increase of $3.9 million over the prior quarter due to the timing of equipment purchases and planned construction projects. Free cash flow for the quarter was $19.9 million, a decrease over the prior quarter due to higher capital investment.

Sales in 2023 were $384.5 million, an increase of 15% compared to the prior year as higher realized precious metals prices and higher gold volumes were partially offset by lower silver and zinc sales volumes. Total cost of sales increased 12% to $259.9 million due to higher labor costs, higher consumable volumes to support record throughput in 2023, and related higher mill and equipment maintenance costs. Cash costs and AISC per silver ounce (each after by-product credits) were $2.53 and $7.14, respectively, higher than the prior year due to the abovementioned reasons.3,4 The increase in AISC was also impacted by higher planned sustaining capital investments during the year. Cash flow from operations for the year was $157.3 million and increased 4% over the prior year. Free cash flow generation for the year was $121.6 million and increased 2% over the prior year as higher sales were partially offset by higher costs and capital investment. 2

Lucky Friday Mine - Idaho

Dollars are in thousands except cost per ton

 

4Q-2023

 

 

3Q-2023

 

 

2Q-2023

 

 

1Q-2023

 

 

4Q-2022

 

 

FY-2023

 

 

FY-2022

 

LUCKY FRIDAY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tons of ore processed

 

 

5,164

 

 

 

36,619

 

 

 

94,043

 

 

 

95,303

 

 

 

90,935

 

 

 

231,129

 

 

 

356,907

 

Total production cost per ton

 

$

201.42

 

 

$

191.81

 

 

$

248.65

 

 

$

210.72

 

 

$

232.73

 

 

$

218.45

 

 

$

223.55

 

Ore grade milled - Silver (oz./ton)

 

 

12.7

 

 

 

13.6

 

 

 

14.3

 

 

 

13.8

 

 

 

14.0

 

 

 

14.0

 

 

 

13.0

 

Ore grade milled - Lead (%)

 

 

8.0

 

 

 

8.6

 

 

 

9.1

 

 

 

8.8

 

 

 

9.1

 

 

 

8.9

 

 

 

8.7

 

Ore grade milled - Zinc (%)

 

 

3.5

 

 

 

3.5

 

 

 

4.2

 

 

 

4.1

 

 

 

4.1

 

 

 

4.1

 

 

 

3.9

 

Silver produced (oz.)

 

 

61,575

 

 

 

475,414

 

 

 

1,286,666

 

 

 

1,262,464

 

 

 

1,224,199

 

 

 

3,086,119

 

 

 

4,412,764

 

Lead produced (tons)

 

 

372

 

 

 

2,957

 

 

 

8,180

 

 

 

8,034

 

 

 

7,934

 

 

 

19,543

 

 

 

29,233

 

Zinc produced (tons)

 

 

134

 

 

 

1,159

 

 

 

3,338

 

 

 

3,313

 

 

 

3,335

 

 

 

7,944

 

 

 

12,436

 

Sales

 

$

3,117

 

 

$

21,409

 

 

$

42,648

 

 

$

49,110

 

 

$

45,434

 

 

$

116,284

 

 

$

147,814

 

Total cost of sales

 

$

(3,117

)

 

$

(14,344

)

 

$

(32,190

)

 

$

(34,534

)

 

$

(32,819

)

 

$

(84,185

)

 

$

(116,598

)

Gross profit

 

$

—

 

 

$

7,065

 

 

$

10,458

 

 

$

14,576

 

 

$

12,615

 

 

$

32,099

 

 

$

31,216

 

Cash flow from operations

 

$

(7,982

)

 

$

515

 

 

$

18,893

 

 

$

46,132

 

 

$

(7,437

)

 

$

57,558

 

 

$

37,813

 

Capital additions

 

$

(18,819

)

 

$

(15,494

)

 

$

(16,317

)

 

$

(14,707

)

 

$

(13,714

)

 

$

(65,337

)

 

$

(50,992

)

Free cash flow 2

 

$

(26,801

)

 

$

(14,979

)

 

$

2,576

 

 

$

31,425

 

 

$

(21,151

)

 

$

(7,779

)

 

$

(13,179

)

Cash cost per ounce, after by-product credits 3

 

N/A

 

 

$

4.74

 

 

$

6.96

 

 

$

4.30

 

 

$

5.82

 

 

$

5.51

 

 

$

5.06

 

AISC per ounce, after by-product credits 4

 

N/A

 

 

$

10.63

 

 

$

14.24

 

 

$

10.69

 

 

$

12.88

 

 

$

12.21

 

 

$

12.86

 

Lucky Friday produced 3.1 million ounces of silver for the year, a decrease of 30% over the prior year due to the suspension of production beginning in August through the end of the year due to a fire in the secondary escapeway (#2 shaft).

The mine restarted production on January 9, 2024 and is expected to ramp-up to full production in the first quarter of 2024. The work executed to resume production was completed on schedule and within cost expectations (approximately $12 million). This work involved developing a new secondary egress consisting of a ramp of 1,600 feet and a 290-foot vertical escapeway. The Company has property and business interruption insurance, with an applicable underground sublimit coverage of $50 million, which is expected to cover a majority of the expenses and business interruption (net of the deductibles). The first insurance payment has been received and the Company expects to receive remaining insurance payments through the year.

Sales in 2023 were $116.3 million, a decrease of 21% over the prior year due to lower production and sales volumes. Gross profit in 2023 was $32.1 million, an increase of 3% over 2022, due to higher realized silver and lead prices and higher production prior to the suspension of production. Cash flow from operations for the year was $57.6 million, an increase of 52% over the prior year due to favorable working capital changes, which included a $31 million reduction in accounts receivable. Capital investment, net of leases, for the year was $65.3 million, compared to $50.9 million in the prior year with the increase attributable to production restart work to reestablish the secondary egress, construction of the coarse ore bunker, which allows a stockpile of ore to be stored on surface, and the service hoist project. Free cash flow was negative $7.8 million due to increased capital investment for the year that offset higher cash flow from operations.2

Casa Berardi - Quebec

Dollars are in thousands except cost per ton

 

4Q-2023

 

 

3Q-2023

 

 

2Q-2023

 

 

1Q-2023

 

 

4Q-2022

 

 

FY-2023

 

 

FY-2022

 

CASA BERARDI

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tons of ore processed - underground

 

 

104,002

 

 

 

112,544

 

 

 

94,124

 

 

 

110,245

 

 

 

160,150

 

 

 

420,915

 

 

 

660,550

 

Tons of ore processed - open pit

 

 

251,009

 

 

 

231,075

 

 

 

224,580

 

 

 

318,909

 

 

 

250,883

 

 

 

1,025,573

 

 

 

928,189

 

Tons of ore processed - total

 

 

355,011

 

 

 

343,619

 

 

 

318,704

 

 

 

429,154

 

 

 

411,033

 

 

 

1,446,488

 

 

 

1,588,739

 

Surface tons mined - ore and waste

 

 

4,639,770

 

 

 

3,574,391

 

 

 

2,461,196

 

 

 

2,136,993

 

 

 

2,657,638

 

 

 

12,812,350

 

 

 

9,522,295

 

Total production cost per ton

 

$

108.20

 

 

$

103.75

 

 

$

97.69

 

 

$

107.95

 

 

$

125.75

 

 

$

104.75

 

 

$

117.89

 

Ore grade milled - Gold (oz./ton) - underground

 

 

0.11

 

 

 

0.13

 

 

 

0.14

 

 

 

0.13

 

 

 

0.15

 

 

 

0.11

 

 

 

0.16

 

Ore grade milled - Gold (oz./ton) - open pit

 

 

0.05

 

 

 

0.06

 

 

 

0.04

 

 

 

0.05

 

 

 

0.05

 

 

 

0.04

 

 

 

0.05

 

Ore grade milled - Gold (oz./ton) - combined

 

 

0.07

 

 

 

0.08

 

 

 

0.07

 

 

 

0.07

 

 

 

0.09

 

 

 

0.07

 

 

 

0.09

 

Gold produced (oz.) - underground

 

 

11,206

 

 

 

12,416

 

 

 

10,226

 

 

 

11,788

 

 

 

20,365

 

 

 

45,636

 

 

 

84,786

 

Gold produced (oz.) - open pit

 

 

11,311

 

 

 

11,843

 

 

 

8,675

 

 

 

12,898

 

 

 

10,344

 

 

 

44,727

 

 

 

42,804

 

Gold produced (oz.) - total

 

 

22,517

 

 

 

24,259

 

 

 

18,901

 

 

 

24,686

 

 

 

30,709

 

 

 

90,363

 

 

 

127,590

 

Silver produced (oz.) - total

 

 

5,730

 

 

 

5,084

 

 

 

5,956

 

 

 

5,645

 

 

 

5,960

 

 

 

22,415

 

 

 

28,289

 

Sales

 

$

42,822

 

 

$

46,912

 

 

$

36,946

 

 

$

50,998

 

 

$

53,458

 

 

$

177,678

 

 

$

235,136

 

Total cost of sales

 

$

(58,945

)

 

$

(56,822

)

 

$

(42,576

)

 

$

(62,998

)

 

$

(65,328

)

 

$

(221,341

)

 

$

(248,898

)

Gross (loss) profit

 

$

(16,123

)

 

$

(9,910

)

 

$

(5,630

)

 

$

(12,000

)

 

$

(11,870

)

 

$

(43,663

)

 

$

(13,762

)

Cash flow from (used in) operations

 

$

3,136

 

 

$

7,877

 

 

$

(8,148

)

 

$

(684

)

 

$

10,188

 

 

$

2,181

 

 

$

34,415

 

Exploration

 

$

635

 

 

$

1,482

 

 

$

1,107

 

 

$

1,054

 

 

$

1,637

 

 

$

4,278

 

 

$

8,237

 

Capital additions

 

$

(15,929

)

 

$

(16,225

)

 

$

(20,816

)

 

$

(17,086

)

 

$

(12,995

)

 

$

(70,056

)

 

$

(39,667

)

Free cash flow 2

 

$

(12,158

)

 

$

(6,866

)

 

$

(27,857

)

 

$

(16,716

)

 

$

(1,170

)

 

$

(63,597

)

 

$

2,985

 

Cash cost per ounce, after by-product credits 3

 

$

1,702

 

 

$

1,475

 

 

$

1,658

 

 

$

1,775

 

 

$

1,696

 

 

$

1,652

 

 

$

1,478

 

AISC per ounce, after by-product credits 4

 

$

1,969

 

 

$

1,695

 

 

$

2,147

 

 

$

2,392

 

 

$

2,075

 

 

$

2,048

 

 

$

1,773

 

Casa Berardi produced 90,363 ounces of gold in 2023, a decrease of 29% over the prior year due to wildfire-related closures in June and lower underground tonnage mined, reflecting the decision to halt underground mining in the East Mine as part of the strategic change announced in August to transition to a surface operation by mid-2024. Open pit tons moved during the year set a record as the first phase of the in-house equipment fleet was commissioned.

Sales in the fourth quarter were $42.8 million, a 9% decrease over the prior quarter due to lower gold sales volumes. Total cost of sales was $58.9 million, an increase of 4% over the prior quarter, attributable to higher production costs and an increase in non-cash depreciation, depletion, and amortization expense due to amortizing the underground mine assets over a shorter useful life as the mine transitions to a surface only operation. Cash costs and AISC per gold ounce, each after by-product credits, were $1,702 and $1,969, respectively, and increased over the prior quarter due to higher production costs attributable to higher ore and waste tons mined and milled during the quarter and lower gold production.3,4 Cash flow from operations was $3.1 million and decreased over the prior quarter due to lower sales and higher costs. Capital investment for the quarter was $15.9 million, with $5.8 million and $10.1 million in sustaining and non-sustaining capital investment, respectively. Non-sustaining capital was primarily related to construction costs for tailings facilities. Free cash flow for the quarter was negative $12.2 million and decreased over the prior quarter due to lower cash flow from operations.2

Sales for 2023 were $177.7 million and decreased 24% over the prior year due to lower gold production partially offset by higher gold prices. Full-year total cost of sales was $221.3 million and decreased 11% year over year due to lower production costs attributable to lower underground production. Cash costs and AISC per gold ounce, each after by-product credits, were $1,652 and $2,048, respectively.3,4 The year over year increase in cash costs and AISC per gold ounce was primarily attributable to lower gold production in 2023. Cash flow from operations for the year was $2.2 million. Capital investment increased to $70.1 million primarily due to purchases of new surface fleet equipment as the mine transitions from an underground to an open pit operation and the construction of tailings storage facilities.

The Company expects to file a revised Technical Report Summary for Casa Berardi with its Annual Report on Form 10-K on February 15, 2024. The Technical Report Summary projects (1) a 14-year open pit mine life, (2) life of mine gold production of 1.27 million ounces at an average grade of 0.08 opt (2.75 grams per tonne), and (3) capital of $498 million. The mine's after-tax NPV (5%) is estimated at $347 million at a gold price assumption of $1,950/oz.

Keno Hill - Yukon Territory

Dollars are in thousands except cost per ton

 

4Q-2023

 

 

3Q-2023

 

 

2Q-2023

 

 

1Q-2023

 

 

FY-2023

 

KENO HILL

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tons of ore processed

 

 

19,651

 

 

 

24,616

 

 

 

12,064

 

 

 

—

 

 

 

56,331

 

Total production cost per ton

 

$

145.36

 

 

$

88.97

 

 

$

202.66

 

 

$

—

 

 

$

153.64

 

Ore grade milled - Silver (oz./ton)

 

 

31.7

 

 

 

33.0

 

 

 

20.2

 

 

 

—

 

 

 

27.7

 

Ore grade milled - Lead (%)

 

 

2.6

 

 

 

2.4

 

 

 

2.5

 

 

 

—

 

 

 

2.3

 

Ore grade milled - Zinc (%)

 

 

1.6

 

 

 

2.5

 

 

 

4.1

 

 

 

—

 

 

 

2.5

 

Silver produced (oz.)

 

 

608,301

 

 

 

710,012

 

 

 

184,264

 

 

 

—

 

 

 

1,502,577

 

Lead produced (tons)

 

 

481

 

 

 

327

 

 

 

417

 

 

 

—

 

 

 

1,225

 

Zinc produced (tons)

 

 

396

 

 

 

252

 

 

 

691

 

 

 

—

 

 

 

1,339

 

Sales

 

$

17,936

 

 

$

16,001

 

 

$

1,581

 

 

 

—

 

 

$

35,518

 

Total cost of sales

 

$

(17,936

)

 

$

(16,001

)

 

$

(1,581

)

 

 

—

 

 

$

(35,518

)

Gross profit

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

Cash flow from operations

 

$

1,181

 

 

$

(6,200

)

 

$

(12,900

)

 

$

(6,324

)

 

$

(24,243

)

Exploration

 

$

1,548

 

 

$

1,653

 

 

$

1,039

 

 

$

437

 

 

$

4,677

 

Capital additions

 

$

(12,549

)

 

$

(11,498

)

 

$

(3,505

)

 

$

(17,120

)

 

$

(44,672

)

Free cash flow 2

 

$

(9,820

)

 

$

(16,045

)

 

$

(15,366

)

 

$

(23,007

)

 

$

(64,238

)

 

Keno Hill continued ramping up production and produced 1.5 million ounces of silver in 2023. Tonnage mined was constrained during the year by delays in infrastructure construction which impacted development rates and resulted in a slower ramp-up. Capital investment in 2023 totaled $44.7 million and comprised key infrastructure projects, including the shotcrete plant, cemented rock fill plant, and upgrades to mill infrastructure, including the secondary crushing circuit. The Company has executed a safety action plan, which will be executed over the year and will focus on training, supervision, mining practices, and implementation of safety processes.

The Company expects to file its initial Technical Report Summary for Keno Hill with its Annual Report on Form 10-K on February 15, 2024. The Technical Report Summary projects an 11-year reserve mine life and life of mine silver production of 53 million ounces at an average grade of 26.6 ounces per ton. 5-year average silver production is expected to be 4.4 million ounces as throughput is expected to increase to 600 tpd in 2028. The mine's after-tax NPV (5%) is estimated at $305 million at a silver price assumption of $22/oz.

Keno Hill is expected to produce 2.7-3.0 million ounces of silver in 2024 as the mine ramps up production. Expenditures on production costs, excluding depreciation, are expected to be $15-$17 million per quarter. The Company will provide guidance for cash costs and AISC per silver ounce, each after by-product credits, once the mine reaches commercial production which is expected during the year.

Keno Hill's silver reserves at year-end 2023 were 55 million ounces and have increased by 45% over the reserves identified at the time of acquisition in September 2022. In addition, measured and indicated resources increased by 5%, and inferred resources increased by 25% over the prior year.

EXPLORATION AND PRE-DEVELOPMENT

Exploration and pre-development expenses totaled $7.0 million for the fourth quarter and $32.5 million for the entire year. During the fourth quarter, exploration activities focused on targets at Keno Hill, Greens Creek, and Casa Berardi.

For the year ended 2023, the Company reported silver reserves of 238 million ounces, the second highest in the Company's history and 1% lower than 2022. A breakdown of the Company's reserves and resources is located in Table A at the end of this news release.

For further details on the Company's 2023 exploration and pre-development program and 2024 planned expenditures as well as reserves and resources at year-end 2023, please refer to the news release entitled "Hecla Reports Exploration Results and Reserves" released on February 13, 2024.

DIVIDENDS

Common Stock

The Board of Directors declared a quarterly cash dividend of $0.00625 per share of common stock, consisting of $0.00375 per share for the minimum dividend component and $0.0025 per share for the silver-linked component. The common stock dividend is payable on or about March 25, 2024, to stockholders of record on March 12, 2024. The fourth quarter realized silver price was $23.47, satisfying the criterion for the Company’s common stock silver-linked dividend policy component.

Preferred Stock

The Board of Directors declared a quarterly cash dividend of $0.875 per share of preferred stock, payable on or about April 1, 2024, to stockholders of record on March 15, 2024.

2024 GUIDANCE 6

The Company is providing a three-year production outlook and 2024 estimates of costs, capital and exploration, and pre-development expenses.

Consolidated silver production is expected to increase to 16.5-17.5 million ounces in 2024 and increase by 30% (compared to 2023) to 18.0-20.0 million ounces by 2026. Greens Creek's silver production is expected to decrease in 2024 due to expected lower silver mined grades attributable to mine sequencing, which is also expected to result in lower gold and higher zinc production. Lucky Friday's silver production guidance is 5.0-5.3 million ounces, with the ramp up to full production expected to be complete in the first quarter. Silver production from Keno Hill is forecasted to be 2.7-3.0 million ounces as the mine ramps up production during the year.

Consolidated gold production is expected to decrease to 121-133 thousand ounces, primarily due to Casa Berardi as the mine transitions to a surface only operation during the year.

2024 and Three Year Production Outlook

 

 

Silver Production (Moz)

 

Gold Production (Koz)

 

Silver Equivalent (Moz)

 

Gold Equivalent (Koz)

2024 Greens Creek *

 

8.8 - 9.2

 

46.0 - 51.0

 

21.0 - 21.5

 

235 - 245

2024 Lucky Friday *

 

5.0 - 5.3

 

N/A

 

9.5 - 10.0

 

110 - 115

2024 Casa Berardi

 

N/A

 

75.0 - 82.0

 

6.5 - 7.2

 

75 - 82

2024 Keno Hill*

 

2.7 - 3.0

 

N/A

 

3.0 - 3.5

 

36 - 40

 

 

 

 

 

 

 

 

 

2024 Total

 

16.5 - 17.5

 

121.0 - 133.0

 

40.0 - 42.2

 

455 - 482

2025 Total

 

17.0 - 18.5

 

110.0 - 125.0

 

39.0 - 42.0

 

445 - 485

2026 Total

 

18.0 - 20.0

 

110.0 - 120.0

 

40.0 - 43.0

 

465 - 495

* Equivalent ounces include Lead and Zinc production

 

 

2024 Cost Guidance

At Greens Creek, guidance for cash costs per silver ounce (after by-product credits) is higher compared to 2023 due to expected lower silver production year over year. The increase in guidance for AISC for the mine per silver ounce (after by-product credits) is attributable to planned higher capital investment. At Lucky Friday, cost guidance reflects a full year of production. At Keno Hill, expenditures on production costs, excluding depreciation, are expected to be $15-$17 million per quarter. The Company will provide guidance for cash costs and AISC per silver ounce, each after by-product credits, once the mine reaches commercial production, which is expected to occur during the year.

At Casa Berardi, guidance for cash costs and AISC per gold ounce, each after by-product credits, reflects the closure of underground operations in mid-2024 and transition to an open-pit only operation.

 

 

Total costs of Sales (million)

 

Cash cost, after by-product credits, per silver/gold ounce3

 

AISC, after by-product credits, per produced silver/gold ounce4

Greens Creek

 

252

 

$3.50 - $4.00

 

$9.50 - $10.25

Lucky Friday

 

130

 

$2.50 - $3.25

 

$10.50 - 12.25

Total Silver

 

382

 

$3.00 - $3.75

 

$13.00 - $14.50

Casa Berardi

 

200

 

$1,500 - $1,700

 

$1,750 - $1,975

2024 Capital and Exploration Guidance

Consolidated capital investment is expected to trend lower in 2024 at all operations except Greens Creek. Greens Creek's increased capital investment is primarily attributable to increased capital development and mobile equipment purchases. Expected capital investment at Keno Hill comprises mine development, mobile equipment, and mine infrastructure projects, including a paste backfill plant. Capital investment at Lucky Friday is expected to decrease as a result of the completion of critical projects (coarse ore bunker to increase stockpile capacity, service hoist to increase mine throughput, and establishment of an alternative secondary escapeway for production restart) in 2023. Casa Berardi's growth capital investment includes capitalization of certain tailings construction costs.

Guidance for 2024 exploration is $25 million with Greens Creek and Keno Hill expected to account for 35% and 25% of the expected spend, respectively.

(millions)

 

Total

Sustaining

Growth

2024 Total Capital expenditures

 

$190 - $210

$122 - $132

$68 - $78

Greens Creek

 

$59 - $63

$56 - $58

$3 - $5

Lucky Friday

 

$45 - $50

$42 - $45

$3 - $5

Casa Berardi

 

$56 - $63

$14 - $17

$42 - $46

Keno Hill

 

$30 - $34

$10 - $12

$20 - $22

2024 Exploration

 

$25

 

 

2024 Pre-Development

 

$6.5

 

 

 

CONFERENCE CALL AND WEBCAST

A conference call and webcast will be held on Thursday, February 15, at 10:00 a.m. Eastern Time to discuss these results. We recommend that you dial in at least 10 minutes before the call commencement. 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 and must be provided when dialing in. Hecla's live and archived webcast can be accessed at https://events.q4inc.com/attendee/758455261 or www.hecla.com under Investors.

VIRTUAL INVESTOR EVENT

Hecla will be holding a Virtual Investor Event on Thursday, February 15, from 12:00 p.m. to 1:30 p.m. Eastern Time.

Hecla invites shareholders, investors, and other interested parties to schedule a personal, 30-minute virtual meeting (video or telephone) with a member of senior management to discuss Financial, Exploration, Operations, ESG 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.com or 208-769-4100.

One-on-One meeting URL: https://calendly.com/2024-feb-vie

ABOUT HECLA

Founded in 1891, Hecla Mining Company (NYSE: HL) is the largest silver producer in the United States. In addition to operating mines in Alaska, Idaho, and Quebec, Canada, the Company is developing a mine in the Yukon, Canada, and owns a number of exploration and pre-development projects in world-class silver and gold mining districts throughout North America.

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 EBITDA is a non-GAAP measurement, a reconciliation of which to net income, 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.

(2) Free cash flow is a non-GAAP measure calculated as cash provided by operating activities less capital expenditures. Cash provided by operating activities for the Greens Creek, Lucky Friday, and Casa Berardi operating segments excludes exploration and pre-development expense, as it is a discretionary expenditure and not a component of the mines’ operating performance. Capital expenditures refers to Additions to properties, plants and equipment from the Consolidated Statements of Cash Flows, net of finance leases.

(3) Cash cost, after by-product credits, per silver and gold ounce is a non-GAAP measurement, a reconciliation of 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.

(4) All-in sustaining cost (AISC), after by-product credits, is a non-GAAP measurement, a reconciliation of which to total cost of sales, the closest GAAP measurement, can be found in the end of the release. AISC, after by-product credits, includes total cost of sales and other direct production costs, expenses for reclamation at the mine sites and all site sustaining capital costs. AISC, after by-product credits, is calculated net of depreciation, depletion, and amortization and by-product credits. Prior year presentation has been adjusted to conform with current year presentation. Management believes this measurement provides an indication of economic performance and efficiency at each location and on a consolidated basis, as well as providing a meaningful basis to compare Company results to those of other mining companies and other operating mining properties.

(5) 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) applicable to common stockholders is a measure used by management to evaluate the Company's operating performance but should not be considered an alternative to net income (loss) applicable to common stockholders 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) applicable to common stockholders per common share provides investors with the ability to better evaluate our underlying operating performance.

Current GAAP measures used in the mining industry, such as total cost of goods sold, do not capture all the expenditures incurred to discover, develop and sustain silver and gold production. Management believes that AISC 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.

Other

(6) Expectations for 2024 include silver, gold, lead and zinc production from Greens Creek, Lucky Friday, Keno Hill, and Casa Berardi converted using Au $1,950/oz, Ag $22.50/oz, Zn $1.20/lb, and Pb 0.95$/lb. Numbers are rounded.

Cautionary Statement Regarding Forward Looking Statements, Including 2024 Outlook

This news release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbor created by such sections and other applicable laws, including Canadian securities laws. Words such as “may”, “will”, “should”, “expects”, “intends”, “projects”, “believes”, “estimates”, “targets”, “anticipates” and similar expressions are used to identify these forward-looking statements. Such forward-looking statements may include, without limitation: (i) the projections contained in the Technical Report Summary for each of Casa Berardi and Keno Hill; (ii) Lucky Friday is expected to ramp-up to full production in the first quarter of 2024; (iii) approximately $50 million in proceeds from the Company's property insurance policy will be collected in 2024; (iv) Keno Hill's production will increase over time; (v) the Company expects to pay down on its revolving credit facility in 2024; (vi) the Company expects all four of its mines to be in operation in 2024; (vii) the Company expects silver production to increase by 15-20% in 2024, and by 30% by 2026; (viii) Casa Berardi will be a full surface operation by mid-2024; (ix) the Company will soon be Canada's largest silver producer; (x) mine-specific and Company-wide 2024 estimates of future production, and 2025 and 2026 estimates of future production Company-wide; (xi)total cost of sales, as well as cash cost and AISC per ounce (in each case after by-product credits) for Greens Creek, Lucky Friday and Casa Berardi; and (xii) Company-wide estimated spending on capital, exploration and pre-development for 2024. The material factors or assumptions used to develop such forward-looking statements or forward-looking information include that the Company’s plans for development and production will proceed as expected and will not require revision as a result of risks or uncertainties, whether known, unknown or unanticipated, to which the Company’s operations are subject.

Estimates or expectations of future events or results are based upon certain assumptions, which may prove to be incorrect, which could cause actual results to differ from forward-looking statements. Such assumptions, include, but are not limited to: (i) there being no significant change to current geotechnical, metallurgical, hydrological and other physical conditions; (ii) permitting, development, operations and expansion of the Company’s projects being consistent with current expectations and mine plans; (iii) political/regulatory developments in any jurisdiction in which the Company operates being consistent with its current expectations; (iv) the exchange rate for the USD/CAD being approximately consistent with current levels; (v) certain price assumptions for gold, silver, lead and zinc; (vi) prices for key supplies being approximately consistent with current levels; (vii) the accuracy of our current mineral reserve and mineral resource estimates; (viii) there being no significant changes to the availability of employees, vendors and equipment; (ix) the Company’s plans for development and production will proceed as expected and will not require revision as a result of risks or uncertainties, whether known, unknown or unanticipated; (x) counterparties performing their obligations under hedging instruments and put option contracts; (xi) sufficient workforce is available and trained to perform assigned tasks; (xii) weather patterns and rain/snowfall within normal seasonal ranges so as not to impact operations; (xiii) relations with interested parties, including First Nations and Native Americans, remain productive; (xiv) maintaining availability of water rights; (xv) factors do not arise that reduce available cash balances; and (xvi) there being no material increases in our current requirements to post or maintain reclamation and performance bonds or collateral related thereto.

In addition, material risks that could cause actual results to differ from forward-looking statements include, but are not limited to: (i) gold, silver and other metals price volatility; (ii) operating risks; (iii) currency fluctuations; (iv) increased production costs and variances in ore grade or recovery rates from those assumed in mining plans; (v) community relations; (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) we take a material impairment charge on any of our assets; and (xi) inflation causes our costs to rise more than we currently expect. For a more detailed discussion of such risks and other factors, see the Company’s 2023 Annual Report on Form 10-K, filed with the Securities and Exchange Commission (“SEC”) on February 15, 2024. 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 presentation, 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.

Cautionary Statements to Investors on Reserves and Resources

This news release uses the terms “mineral resources”, “measured mineral resources”, “indicated mineral resources” and “inferred mineral resources.” Mineral resources that are not mineral reserves do not have demonstrated economic viability. You should not assume that all or any part of measured or indicated mineral resources will ever be converted into mineral reserves. Further, inferred mineral resources have a great amount of uncertainty as to their existence and as to whether they can be mined legally or economically, and an inferred mineral resource may not be considered when assessing the economic viability of a mining project, and may not be converted to a mineral reserve. We report reserves and resources under the SEC’s mining disclosure rules (“S-K 1300”) and Canada’s National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) because we are a “reporting issuer” under Canadian securities laws. Unless otherwise indicated, all resource and reserve estimates contained in this press release have been prepared in accordance with S-K 1300 as well as NI 43-101.

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 for each of the Company’s Greens Creek and Lucky Friday properties are filed as exhibits 96.1 and 96.2 respectively, to the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 and are available at www.sec.gov. A Technical Report Summary for each of the Company’s Casa Berardi and Keno Hill properties will be filed as exhibits 96.3 and 96.4, respectively, to the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 to be filed on February 15, 2024 and will then be 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 Technical Report Summary 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 Technical Report Summary 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 will be contained in its Technical Report Summary titled “Technical Report Summary on the Casa Berardi Mine, Northwestern Quebec, Canada” effective date December 31, 2023 and are contained in its NI 43-101 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, (iv) Keno Hill will be contained in its Technical Report Summary titled “S-K 1300 Technical Report Summary on the Keno Hill Mine, Yukon, Canada” and are contained its NI 43-101 technical report titled “Technical Report on Updated Mineral Resource and Reserve Estimate of the Keno Hill Silver District” effective date April 1, 2021, and (v) 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 or to be included in each 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). 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 ATAC Resources Ltd. for (i) the Osiris Project (technical report dated July 28, 2022) and (ii) the Tiger Project (technical report dated February 27, 2020). Copies of these technical reports are available under the SEDAR profiles of Klondex Mines Unlimited Liability Company and ATAC Resources Ltd., respectively, at www.sedar.com (the Fire Creek technical report is also available under Hecla’s profile on SEDAR). 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

Consolidated Statements of Loss

(dollars and shares in thousands, except per share amounts - unaudited)

 

 

 

Three Months Ended

 

 

Twelve Months Ended

 

 

 

December 31, 2023

 

 

September 30, 2023

 

 

December 31, 2023

 

 

December 31, 2022

 

Sales

 

$

160,690

 

 

$

181,906

 

 

$

720,227

 

 

$

718,905

 

Cost of sales and other direct production costs

 

 

112,988

 

 

 

112,212

 

 

 

458,504

 

 

 

458,811

 

Depreciation, depletion and amortization

 

 

40,837

 

 

 

36,217

 

 

 

148,774

 

 

 

143,938

 

Total cost of sales

 

 

153,825

 

 

 

148,429

 

 

 

607,278

 

 

 

602,749

 

Gross profit

 

 

6,865

 

 

 

33,477

 

 

 

112,949

 

 

 

116,156

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative

 

 

12,273

 

 

 

7,596

 

 

 

42,722

 

 

 

43,384

 

Exploration and pre-development

 

 

6,966

 

 

 

13,686

 

 

 

32,512

 

 

 

46,041

 

Ramp-up and suspension costs

 

 

27,568

 

 

 

21,025

 

 

 

76,252

 

 

 

24,114

 

Provision for closed operations and environmental matters

 

 

1,164

 

 

 

2,256

 

 

 

7,575

 

 

 

8,793

 

Other operating (income) expense

 

 

1,291

 

 

 

1,555

 

 

 

(1,438

)

 

 

6,262

 

 

 

 

49,262

 

 

 

46,118

 

 

 

157,623

 

 

 

128,594

 

Loss from operations

 

 

(42,397

)

 

 

(12,641

)

 

 

(44,674

)

 

 

(12,438

)

Other (expense) income:

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

(12,133

)

 

 

(10,710

)

 

 

(43,319

)

 

 

(42,793

)

Fair value adjustments, net

 

 

8,699

 

 

 

(6,397

)

 

 

2,925

 

 

 

(4,723

)

Foreign exchange (loss) gain

 

 

(4,244

)

 

 

4,176

 

 

 

(3,810

)

 

 

7,211

 

Other income

 

 

1,458

 

 

 

1,657

 

 

 

5,883

 

 

 

7,829

 

 

 

 

(6,220

)

 

 

(11,274

)

 

 

(38,321

)

 

 

(32,476

)

Loss before income and mining taxes

 

 

(48,617

)

 

 

(23,915

)

 

 

(82,995

)

 

 

(44,914

)

Income and mining tax benefit (provision)

 

 

5,682

 

 

 

1,500

 

 

 

(1,222

)

 

 

7,566

 

Net loss

 

 

(42,935

)

 

 

(22,415

)

 

 

(84,217

)

 

 

(37,348

)

Preferred stock dividends

 

 

(138

)

 

 

(138

)

 

 

(552

)

 

 

(552

)

Net loss applicable to common stockholders

 

$

(43,073

)

 

$

(22,553

)

 

$

(84,769

)

 

$

(37,900

)

Basic and diluted loss per common share after preferred dividends

 

$

(0.07

)

 

$

(0.04

)

 

$

(0.14

)

 

$

(0.07

)

Weighted average number of common shares outstanding basic

 

 

610,547

 

 

 

607,896

 

 

 

605,668

 

 

 

557,344

 

Weighted average number of common shares outstanding diluted

 

 

610,547

 

 

 

607,896

 

 

 

605,668

 

 

 

557,344

 

  HECLA MINING COMPANY

Consolidated Statements of Cash Flows

(dollars in thousands - unaudited)

 

 

 

Three Months Ended

 

 

Twelve Months Ended

 

 

 

December 31, 2023

 

 

September 30, 2023

 

 

December 31, 2023

 

 

December 31, 2022

 

OPERATING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(42,935

)

 

$

(22,415

)

 

$

(84,217

)

 

$

(37,348

)

Non-cash elements included in net income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation, depletion and amortization

 

 

51,967

 

 

 

37,095

 

 

 

163,672

 

 

 

145,147

 

Inventory adjustments

 

 

4,487

 

 

 

8,814

 

 

 

20,819

 

 

 

2,646

 

Fair value adjustments, net

 

 

(8,699

)

 

 

6,397

 

 

 

(2,925

)

 

 

24,182

 

Provision for reclamation and closure costs

 

 

1,853

 

 

 

2,477

 

 

 

9,658

 

 

 

9,572

 

Stock-based compensation

 

 

1,476

 

 

 

2,434

 

 

 

6,598

 

 

 

6,012

 

Deferred income taxes

 

 

(6,910

)

 

 

(3,790

)

 

 

(6,115

)

 

 

(25,546

)

Foreign exchange loss (gain)

 

 

4,244

 

 

 

(4,241

)

 

 

3,810

 

 

 

(9,210

)

Other non-cash items, net

 

 

1,470

 

 

 

50

 

 

 

3,094

 

 

 

3,736

 

Change in assets and liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

 

113

 

 

 

(3,544

)

 

 

25,133

 

 

 

8,669

 

Inventories

 

 

304

 

 

 

(6,218

)

 

 

(24,035

)

 

 

(18,230

)

Other current and non-current assets

 

 

(17,411

)

 

 

18

 

 

 

(32,456

)

 

 

(12,388

)

Accounts payable, accrued and other current liabilities

 

 

2,987

 

 

 

(2,532

)

 

 

598

 

 

 

(24,981

)

Accrued payroll and related benefits

 

 

6,262

 

 

 

(1,701

)

 

 

(4,982

)

 

 

13,732

 

Accrued taxes

 

 

437

 

 

 

(923

)

 

 

(571

)

 

 

(7,927

)

Accrued reclamation and closure costs and other non-current liabilities

 

 

1,239

 

 

 

(1,686

)

 

 

(2,582

)

 

 

11,824

 

Cash provided by operating activities

 

 

884

 

 

 

10,235

 

 

 

75,499

 

 

 

89,890

 

INVESTING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

 

Additions to properties, plants, equipment and mineral interests

 

 

(62,622

)

 

 

(55,354

)

 

 

(223,887

)

 

 

(149,378

)

Proceeds from sale or exchange of investments

 

 

—

 

 

 

—

 

 

 

—

 

 

 

9,375

 

Proceeds from disposition of properties, plants, equipment and mineral interests

 

 

1,169

 

 

 

80

 

 

 

1,329

 

 

 

748

 

Purchases of investments

 

 

(7,209

)

 

 

(1,753

)

 

 

(8,962

)

 

 

(31,971

)

Acquisition, net

 

 

228

 

 

 

—

 

 

 

228

 

 

 

8,953

 

Pre-acquisition advance to Alexco

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(25,000

)

Net cash used in investing activities

 

 

(68,434

)

 

 

(57,027

)

 

 

(231,292

)

 

 

(187,273

)

FINANCING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from issuance of stock, net of related costs

 

 

30,796

 

 

 

—

 

 

 

56,684

 

 

 

17,278

 

Acquisition of treasury shares

 

 

—

 

 

 

—

 

 

 

(2,036

)

 

 

(3,677

)

Borrowing of debt

 

 

120,000

 

 

 

63,000

 

 

 

239,000

 

 

 

25,000

 

Repayment of debt

 

 

(72,000

)

 

 

(14,000

)

 

 

(111,000

)

 

 

(25,000

)

Dividends paid to common and preferred stockholders

 

 

(3,958

)

 

 

(3,947

)

 

 

(15,713

)

 

 

(12,932

)

Credit facility feed paid

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(536

)

Repayments of finance leases

 

 

(2,615

)

 

 

(3,225

)

 

 

(10,605

)

 

 

(7,633

)

Net cash provided by (used in) financing activities

 

 

72,223

 

 

 

41,828

 

 

 

156,330

 

 

 

(7,500

)

Effect of exchange rates on cash

 

 

1,018

 

 

 

(1,140

)

 

 

1,095

 

 

 

(273

)

Net increase (decrease) in cash, cash equivalents and restricted cash and cash equivalents

 

 

5,691

 

 

 

(6,104

)

 

 

1,632

 

 

 

(105,156

)

Cash, cash equivalents and restricted cash and cash equivalents at beginning of period

 

 

101,848

 

 

 

107,952

 

 

 

105,907

 

 

 

211,063

 

Cash, cash equivalents and restricted cash and cash equivalents at end of period

 

$

107,539

 

 

$

101,848

 

 

$

107,539

 

 

$

105,907

 

  HECLA MINING COMPANY

Consolidated Balance Sheets

(dollars and shares in thousands - unaudited)

 

 

 

December 31, 2023

 

 

December 31, 2022

 

ASSETS

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

106,374

 

 

$

104,743

 

Accounts receivable

 

 

33,116

 

 

 

55,841

 

Inventories

 

 

93,647

 

 

 

90,672

 

Other current assets

 

 

27,125

 

 

 

16,471

 

Total current assets

 

 

260,262

 

 

 

267,727

 

Investments

 

 

33,724

 

 

 

24,018

 

Restricted cash and cash equivalents

 

 

1,165

 

 

 

1,164

 

Properties, plants, equipment and mineral interests, net

 

 

2,666,250

 

 

 

2,569,790

 

Operating lease right-of-use assets

 

 

8,349

 

 

 

11,064

 

Deferred tax assets

 

 

2,883

 

 

 

21,105

 

Other non-current assets

 

 

38,471

 

 

 

32,304

 

Total assets

 

$

3,011,104

 

 

$

2,927,172

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable and accrued liabilities

 

$

81,737

 

 

$

84,747

 

Accrued payroll and related benefits

 

 

28,240

 

 

 

37,579

 

Accrued taxes

 

 

3,501

 

 

 

4,030

 

Finance leases

 

 

9,752

 

 

 

9,483

 

Accrued reclamation and closure costs

 

 

9,660

 

 

 

8,591

 

Accrued interest

 

 

14,405

 

 

 

14,454

 

Derivative liabilities

 

 

1,144

 

 

 

16,125

 

Other current liabilities

 

 

9,021

 

 

 

3,457

 

Total current liabilities

 

 

157,460

 

 

 

178,466

 

Accrued reclamation and closure costs

 

 

110,797

 

 

 

108,408

 

Long-term debt including finance leases

 

 

653,063

 

 

 

517,742

 

Deferred tax liability

 

 

104,835

 

 

 

125,846

 

Derivatives liabilities

 

 

364

 

 

 

6,066

 

Other non-current liabilities

 

 

16,481

 

 

 

11,677

 

Total liabilities

 

 

1,043,000

 

 

 

948,205

 

 

 

 

 

 

 

 

STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

Preferred stock

 

 

39

 

 

 

39

 

Common stock

 

 

156,076

 

 

 

151,819

 

Capital surplus

 

 

2,343,747

 

 

 

2,260,290

 

Accumulated deficit

 

 

(503,861

)

 

 

(403,931

)

Accumulated other comprehensive income, net

 

 

5,837

 

 

 

2,448

 

Treasury stock

 

 

(33,734

)

 

 

(31,698

)

Total stockholders’ equity

 

 

1,968,104

 

 

 

1,978,967

 

Total liabilities and stockholders’ equity

 

$

3,011,104

 

 

$

2,927,172

 

Common shares outstanding

 

 

624,647

 

 

 

607,620

 

 

 

Non-GAAP Measures (Unaudited)

Reconciliation of Total Cost of Sales 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 total cost of sales to the non-GAAP measures of (i) Cash Cost, Before By-product Credits, (ii) Cash Cost, After By-product Credits, (iii) AISC, Before By-product Credits and (iv) AISC, After By-product Credits for our operations and for the Company for the three and twelve month periods ended December 31, 2023 and 2022, the three month periods ended March 31, 2023, June 30, 2023 and September 30, 2023 and for estimated amounts for the twelve months ended December 31, 2024.

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. We use AISC, After By-product Credits, per Ounce as a measure of our mines' net cash flow after costs for reclamation and sustaining capital. This is similar to the Cash Cost, After By-product Credits, per Ounce non-GAAP measure we report, but also includes reclamation and sustaining capital costs. 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 with 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 reclamation and sustaining capital costs. AISC, Before By-product Credits for our consolidated silver properties also includes corporate costs for general and administrative expense and sustaining capital costs. 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.

In addition to the uses described above, 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 and 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, their 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.

In thousands (except per ounce amounts)

 

Three Months Ended December 31, 2023

 

Three Months Ended September 30, 2023

 

Twelve Months Ended December 31, 2023

 

Twelve Months Ended December 31, 2022 (5)

 

 

Greens Creek

 

Lucky Friday

 

Keno Hill (6)

 

Corporate (2)

 

Total Silver

 

Greens Creek

 

Lucky Friday

 

Keno Hill (6)

 

Corporate (2)

 

Total Silver

 

Greens Creek

 

Lucky Friday

 

Keno Hill (6)

 

Corporate (2)

 

Total Silver

 

Greens Creek

 

Lucky Friday(2)

 

Corporate and other(3)

 

Total Silver

Total cost of sales

 

$70,231

 

$3,117

 

$17,936

 

$—

 

$91,284

 

$60,322

 

$14,344

 

$16,001

 

$—

 

$90,667

 

$259,895

 

$84,185

 

$35,518

 

$—

 

$379,598

 

$232,718

 

$116,598

 

$—

 

$349,316

Depreciation, depletion and amortization

 

(15,438)

 

(584)

 

(2,068)

 

—

 

(18,090)

 

(11,015)

 

(4,306)

 

(1,948)

 

—

 

(17,269)

 

(53,995)

 

(24,325)

 

(4,277)

 

—

 

(82,597)

 

(48,911)

 

(33,704)

 

—

 

(82,615)

Treatment costs

 

9,873

 

149

 

(76)

 

—

 

9,946

 

10,369

 

1,368

 

1,033

 

—

 

12,770

 

40,987

 

10,981

 

1,070

 

—

 

53,038

 

37,836

 

18,605

 

—

 

56,441

Change in product inventory

 

(1,787)

 

(1,851)

 

—

 

—

 

(3,638)

 

377

 

(2,450)

 

—

 

—

 

(2,073)

 

(4,266)

 

(5,164)

 

—

 

—

 

(9,430)

 

5,885

 

2,049

 

—

 

7,934

Reclamation and other costs

 

(534)

 

—

 

—

 

—

 

(534)

 

(348)

 

(168)

 

—

 

—

 

(516)

 

(748)

 

(826)

 

—

 

—

 

(1,574)

 

(1,489)

 

(1,034)

 

—

 

(2,523)

Exclusion of Lucky Friday cash costs (8)

 

—

 

(831)

 

—

 

—

 

(831)

 

—

 

(20)

 

—

 

—

 

(20)

 

—

 

(851)

 

—

 

—

 

(851)

 

—

 

—

 

—

 

—

Exclusion of Keno Hill cash costs (6)

 

—

 

—

 

(15,792)

 

—

 

(15,792)

 

—

 

—

 

(15,086)

 

—

 

(15,086)

 

—

 

—

 

(32,311)

 

—

 

(32,311)

 

—

 

—

 

—

 

—

Cash Cost, Before By-product Credits (1)

 

62,345

 

—

 

—

 

—

 

62,345

 

59,705

 

8,768

 

—

 

—

 

68,473

 

241,873

 

64,000

 

—

 

—

 

305,873

 

226,039

 

102,514

 

—

 

328,553

Reclamation and other costs

 

723

 

—

 

—

 

—

 

723

 

722

 

101

 

—

 

—

 

823

 

2,889

 

671

 

—

 

—

 

3,560

 

2,821

 

1,128

 

—

 

3,949

Sustaining capital

 

15,249

 

14,768

 

—

 

97

 

30,114

 

11,330

 

7,386

 

—

 

237

 

18,953

 

41,935

 

39,019

 

—

 

928

 

81,882

 

40,705

 

33,306

 

334

 

74,345

Exclusion of Lucky Friday sustaining costs (8)

 

—

 

(14,768)

 

—

 

—

 

(14,768)

 

—

 

(4,934)

 

—

 

—

 

(4,934)

 

—

 

(19,702)

 

—

 

—

 

(19,702)

 

—

 

—

 

—

 

—

General and administrative

 

—

 

—

 

—

 

12,273

 

12,273

 

—

 

—

 

—

 

7,596

 

7,596

 

—

 

—

 

—

 

42,722

 

42,722

 

—

 

—

 

43,384

 

43,384

AISC, Before By-product Credits (1)

 

78,317

 

—

 

—

 

12,370

 

90,687

 

71,757

 

11,321

 

—

 

7,833

 

90,911

 

286,697

 

83,988

 

—

 

43,650

 

414,335

 

269,565

 

136,948

 

43,718

 

450,231

By-product credits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Zinc

 

(18,499)

 

(223)

 

—

 

—

 

(18,722)

 

(20,027)

 

(2,019)

 

—

 

—

 

(22,046)

 

(83,454)

 

(14,507)

 

—

 

—

 

(97,961)

 

(113,835)

 

(27,607)

 

—

 

(141,442)

Gold

 

(25,418)

 

—

 

—

 

—

 

(25,418)

 

(25,344)

 

—

 

—

 

—

 

(25,344)

 

(104,507)

 

—

 

—

 

—

 

(104,507)

 

(75,596)

 

—

 

—

 

(75,596)

Lead

 

(7,282)

 

(667)

 

—

 

—

 

(7,949)

 

(7,201)

 

(5,368)

 

—

 

—

 

(12,569)

 

(29,284)

 

(34,620)

 

—

 

—

 

(63,904)

 

(29,800)

 

(52,568)

 

—

 

(82,368)

Exclusion of Lucky Friday byproduct credits (8)

 

—

 

890

 

—

 

—

 

890

 

—

 

676

 

—

 

—

 

676

 

—

 

1,566

 

—

 

—

 

1,566

 

—

 

—

 

—

 

—

Total By-product credits

 

(51,199)

 

—

 

—

 

—

 

(51,199)

 

(52,572)

 

(6,711)

 

—

 

—

 

(59,283)

 

(217,245)

 

(47,561)

 

—

 

—

 

(264,806)

 

(219,231)

 

(80,175)

 

—

 

(299,406)

Cash Cost, After By-product Credits

 

$11,146

 

$—

 

$—

 

$—

 

$11,146

 

$7,133

 

$2,057

 

$—

 

$—

 

$9,190

 

$24,628

 

$16,439

 

$—

 

$—

 

$41,067

 

$6,808

 

$22,339

 

$—

 

$29,147

AISC, After By-product Credits

 

$27,118

 

$—

 

$—

 

$12,370

 

$39,488

 

$19,185

 

$4,610

 

$—

 

$7,833

 

$31,628

 

$69,452

 

$36,427

 

$—

 

$43,650

 

$149,529

 

$50,334

 

$56,773

 

$43,718

 

$150,825

Ounces produced

 

$2,260

 

$62

 

 

 

 

 

2,322

 

2,343

 

475

 

 

 

 

 

2,818

 

$9,732

 

$3,086

 

 

 

 

 

12,818

 

9,742

 

4,413

 

 

 

14,155

Exclusion of Lucky Friday ounces produced (8)

 

—

 

(62)

 

 

 

 

 

(62)

 

—

 

(41)

 

 

 

 

 

(41)

 

—

 

(103)

 

 

 

 

 

(103)

 

—

 

0

 

 

 

—

Divided by ounces produced

 

2,260

 

—

 

 

 

 

 

2,260

 

2,343

 

434

 

 

 

 

 

2,777

 

9,732

 

2,983

 

 

 

 

 

12,715

 

9,742

 

4,413

 

 

 

14,155

Cash Cost, Before By-product Credits, per Silver Ounce

 

$27.59

 

N/A

 

 

 

 

 

$27.59

 

$25.48

 

$20.20

 

 

 

 

 

$24.66

 

$24.85

 

$21.45

 

 

 

 

 

$24.06

 

$23.20

 

$23.23

 

 

 

$23.21

By-product credits per ounce

 

(22.65)

 

N/A

 

 

 

 

 

(22.65)

 

(22.44)

 

(15.46)

 

 

 

 

 

(21.35)

 

(22.32)

 

(15.94)

 

 

 

 

 

(20.83)

 

(22.50)

 

(18.17)

 

 

 

(21.15)

Cash Cost, After By-product Credits, per Silver Ounce

 

$4.94

 

N/A

 

 

 

 

 

$4.94

 

$3.04

 

$4.74

 

 

 

 

 

$3.31

 

$2.53

 

$5.51

 

 

 

 

 

$3.23

 

$0.70

 

$5.06

 

 

 

$2.06

AISC, Before By-product Credits, per Silver Ounce

 

$34.65

 

N/A

 

 

 

 

 

$40.13

 

$30.62

 

$26.09

 

 

 

 

 

$32.74

 

$29.46

 

$28.15

 

 

 

 

 

$32.59

 

$27.67

 

$31.03

 

 

 

$31.81

By-product credits per ounce

 

(22.65)

 

N/A

 

 

 

 

 

(22.65)

 

(22.44)

 

(15.46)

 

 

 

 

 

(21.35)

 

(22.32)

 

(15.94)

 

 

 

 

 

(20.83)

 

(22.50)

 

(18.17)

 

 

 

(21.15)

AISC, After By-product Credits, per Silver Ounce

 

$12.00

 

N/A

 

 

 

 

 

$17.48

 

$8.18

 

$10.63

 

 

 

 

 

$11.39

 

$7.14

 

$12.21

 

 

 

 

 

$11.76

 

$5.17

 

$12.86

 

 

 

$10.66

  In thousands (except per ounce amounts)

 

Three Months Ended December 31, 2023

 

Three Months Ended September 30, 2023

 

Twelve Months Ended December 31, 2023

 

Twelve Months Ended December, 2022 (5)

 

 

Casa Berardi

 

Nevada Operations and Other (4)

 

Total Gold

 

Casa Berardi

 

Nevada

Operations and Other (4)

 

Total Gold

 

Casa Berardi

 

Nevada Operations and Other (4)

 

Total Gold

 

Casa Berardi

 

Nevada Operations and Other (4)

 

Total Gold

Total cost of sales

 

$

58,945

 

$

3,596

 

$

62,541

 

$

56,822

 

$

940

 

$

57,762

 

$

221,341

 

$

6,339

 

$

227,680

 

$

248,898

 

$

4,535

 

$

253,433

Depreciation, depletion and amortization

 

 

(22,749)

 

 

2

 

 

(22,747)

 

 

(18,980)

 

 

32

 

 

(18,948)

 

 

(66,037)

 

 

(140)

 

 

(66,177)

 

 

(60,962)

 

 

(361)

 

 

(61,323)

Treatment costs

 

 

37

 

 

—

 

 

37

 

 

254

 

 

—

 

 

254

 

 

1,109

 

 

—

 

 

1,109

 

 

1,866

 

 

—

 

 

1,866

Change in product inventory

 

 

2,432

 

 

—

 

 

2,432

 

 

(1,977)

 

 

—

 

 

(1,977)

 

 

(2,913)

 

 

—

 

 

(2,913)

 

 

186

 

 

—

 

 

186

Reclamation and other costs

 

 

(216)

 

 

—

 

 

(216)

 

 

(219)

 

 

—

 

 

(219)

 

 

(871)

 

 

—

 

 

(871)

 

 

(819)

 

 

—

 

 

(819)

Exclusion of Casa Berardi cash costs (3)

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

(2,851)

 

 

—

 

 

(2,851)

 

 

—

 

 

—

 

 

—

Exclusion of Nevada and Other costs

 

 

—

 

 

(3,598)

 

 

(3,598)

 

 

—

 

 

(972)

 

 

(972)

 

 

—

 

 

(6,199)

 

 

(6,199)

 

 

—

 

 

(4,174)

 

 

(4,174)

Cash Cost, Before By-product Credits (1)

 

 

38,449

 

 

—

 

 

38,449

 

 

35,900

 

 

—

 

 

35,900

 

 

149,778

 

 

—

 

 

149,778

 

 

189,169

 

 

—

 

 

189,169

Reclamation and other costs

 

 

216

 

 

—

 

 

216

 

 

219

 

 

—

 

 

219

 

 

871

 

 

—

 

 

871

 

 

819

 

 

—

 

 

819

Sustaining capital

 

 

5,796

 

 

—

 

 

5,796

 

 

5,133

 

 

—

 

 

5,133

 

 

34,971

 

 

—

 

 

34,971

 

 

36,883

 

 

—

 

 

36,883

AISC, Before By-product Credits (1)

 

 

44,461

 

 

—

 

 

44,461

 

 

41,252

 

 

—

 

 

41,252

 

 

185,620

 

 

—

 

 

185,620

 

 

226,871

 

 

—

 

 

226,871

By-product credits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Silver

 

 

(132)

 

 

—

 

 

(132)

 

 

(119)

 

 

—

 

 

(119)

 

 

(522)

 

 

—

 

 

(522)

 

 

(610)

 

 

—

 

 

(610)

Total By-product credits

 

 

(132)

 

 

—

 

 

(132)

 

 

(119)

 

 

—

 

 

(119)

 

 

(522)

 

 

—

 

 

(522)

 

 

(610)

 

 

—

 

 

(610)

Cash Cost, After By-product Credits

 

$

38,317

 

$

—

 

$

38,317

 

$

35,781

 

$

—

 

$

35,781

 

$

149,256

 

$

—

 

$

149,256

 

$

188,559

 

 

 

$

188,559

AISC, After By-product Credits

 

$

44,329

 

$

—

 

$

44,329

 

$

41,133

 

$

—

 

$

41,133

 

$

185,098

 

$

—

 

$

185,098

 

$

226,261

 

 

 

$

226,261

Divided by gold ounces produced

 

 

23

 

 

—

 

 

23

 

 

24

 

 

—

 

 

24

 

 

90

 

 

—

 

 

90

 

 

128

 

 

—

 

 

128

Cash Cost, Before By-product Credits, per Gold Ounce

 

$

1,708

 

$

—

 

$

1,708

 

$

1,480

 

$

—

 

$

1,480

 

$

1,658

 

$

—

 

$

1,658

 

$

1,483

 

$

—

 

$

1,483

By-product credits per ounce

 

 

(6)

 

 

—

 

 

(6)

 

 

(5)

 

 

—

 

 

(5)

 

 

(6)

 

 

—

 

 

(6)

 

 

(5)

 

 

0

 

 

(5)

Cash Cost, After By-product Credits, per Gold Ounce

 

$

1,702

 

$

—

 

$

1,702

 

$

1,475

 

$

—

 

$

1,475

 

$

1,652

 

$

—

 

$

1,652

 

$

1,478

 

$

—

 

$

1,478

AISC, Before By-product Credits, per Gold Ounce

 

$

1,975

 

$

—

 

$

1,975

 

$

1,700

 

$

—

 

$

1,700

 

$

2,054

 

$

—

 

$

2,054

 

$

1,778

 

$

—

 

$

1,778

By-product credits per ounce

 

 

(6)

 

 

—

 

 

(6)

 

 

(5)

 

 

—

 

 

(5)

 

 

(6)

 

 

—

 

 

(6)

 

 

(5)

 

 

0

 

 

(5)

AISC, After By-product Credits, per Gold Ounce

 

$

1,969

 

$

—

 

$

1,969

 

$

1,695

 

$

—

 

$

1,695

 

$

2,048

 

$

—

 

$

2,048

 

$

1,773

 

$

—

 

$

1,773

  In thousands (except per ounce amounts)

 

Three Months Ended December 31, 2023

 

Three Months Ended September 30, 2023

 

Twelve Months Ended December 31, 2023

 

Twelve Months Ended December 31, 2022 (5)

 

 

Total Silver

 

Total Gold

 

Total

 

Total Silver

 

Total Gold

 

Total

 

Total Silver

 

Total Gold

 

Total

 

Total Silver

 

 

Total Gold

 

Total

Total cost of sales

 

$

91,284

 

$

62,541

 

$

153,825

 

$

90,667

 

$

57,762

 

$

148,429

 

$

379,598

 

$

227,680

 

$

607,278

 

$

349,316

 

 

$

253,433

 

$

602,749

Depreciation, depletion and amortization

 

 

(18,090)

 

 

(22,747)

 

 

(40,837)

 

 

(17,269)

 

 

(18,948)

 

 

(36,217)

 

 

(82,597)

 

 

(66,177)

 

 

(148,774)

 

 

(82,615

)

 

 

(61,323)

 

 

(143,938)

Treatment costs

 

 

9,946

 

 

37

 

 

9,983

 

 

12,770

 

 

254

 

 

13,024

 

 

53,038

 

 

1,109

 

 

54,147

 

 

56,441

 

 

 

1,866

 

 

58,307

Change in product inventory

 

 

(3,638)

 

 

2,432

 

 

(1,206)

 

 

(2,073)

 

 

(1,977)

 

 

(4,050)

 

 

(9,430)

 

 

(2,913)

 

 

(12,343)

 

 

7,934

 

 

 

186

 

 

8,120

Reclamation and other costs

 

 

(534)

 

 

(216)

 

 

(750)

 

 

(516)

 

 

(219)

 

 

(735)

 

 

(1,574)

 

 

(871)

 

 

(2,445)

 

 

(2,523

)

 

 

(819)

 

 

(3,342)

Exclusion of Lucky Friday cash costs (8)

 

 

(831)

 

 

—

 

 

(831)

 

 

(20)

 

 

—

 

 

(20)

 

 

(851)

 

 

—

 

 

(851)

 

 

—

 

 

 

—

 

 

—

Exclusion of Keno Hill cash costs (6)

 

 

(15,792)

 

 

—

 

 

(15,792)

 

 

(15,086)

 

 

—

 

 

(15,086)

 

 

(32,311)

 

 

—

 

 

(32,311)

 

 

—

 

 

 

—

 

 

—

Exclusion of Casa Berardi cash costs (3)

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

(2,851)

 

 

(2,851)

 

 

—

 

 

 

—

 

 

—

Exclusion of Nevada and Other costs

 

 

—

 

 

(3,598)

 

 

(3,598)

 

 

—

 

 

(972)

 

 

(972)

 

 

—

 

 

(6,199)

 

 

(6,199)

 

 

—

 

 

 

(4,174)

 

 

(4,174)

Cash Cost, Before By-product Credits (1)

 

 

62,345

 

 

38,449

 

 

100,794

 

 

68,473

 

 

35,900

 

 

104,373

 

 

305,873

 

 

149,778

 

 

455,651

 

 

328,553

 

 

 

189,169

 

 

517,722

Reclamation and other costs

 

 

723

 

 

216

 

 

939

 

 

823

 

 

219

 

 

1,042

 

 

3,560

 

 

871

 

 

4,431

 

 

3,949

 

 

 

819

 

 

4,768

Sustaining capital

 

 

30,114

 

 

5,796

 

 

35,910

 

 

18,953

 

 

5,133

 

 

24,086

 

 

81,882

 

 

34,971

 

 

116,853

 

 

74,345

 

 

 

36,883

 

 

111,228

Exclusion of Lucky Friday sustaining costs (8)

 

 

(14,768)

 

 

—

 

 

(14,768)

 

 

(4,934)

 

 

—

 

 

(4,934)

 

 

(19,702)

 

 

—

 

 

(19,702)

 

 

—

 

 

 

—

 

 

—

General and administrative

 

 

12,273

 

 

—

 

 

12,273

 

 

7,596

 

 

—

 

 

7,596

 

 

42,722

 

 

—

 

 

42,722

 

 

43,384

 

 

 

—

 

 

43,384

AISC, Before By-product Credits (1)

 

 

90,687

 

 

44,461

 

 

135,148

 

 

90,911

 

 

41,252

 

 

132,163

 

 

414,335

 

 

185,620

 

 

599,955

 

 

450,231

 

 

 

226,871

 

 

677,102

By-product credits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Zinc

 

 

(18,722)

 

 

—

 

 

(18,722)

 

 

(22,046)

 

 

—

 

 

(22,046)

 

 

(97,961)

 

 

—

 

 

(97,961)

 

 

(141,442

)

 

 

—

 

 

(141,442)

Gold

 

 

(25,418)

 

 

—

 

 

(25,418)

 

 

(25,344)

 

 

—

 

 

(25,344)

 

 

(104,507)

 

 

—

 

 

(104,507)

 

 

(75,596

)

 

 

—

 

 

(75,596)

Lead

 

 

(7,949)

 

 

—

 

 

(7,949)

 

 

(12,569)

 

 

—

 

 

(12,569)

 

 

(63,904)

 

 

—

 

 

(63,904)

 

 

(82,368

)

 

 

—

 

 

(82,368)

Silver

 

 

—

 

 

(132)

 

 

(132)

 

 

—

 

 

(119)

 

 

(119)

 

 

—

 

 

(522)

 

 

(522)

 

 

—

 

 

 

(610)

 

 

(610)

Exclusion of Lucky Friday by-product credits (8)

 

 

890

 

 

—

 

 

890

 

 

676

 

 

—

 

 

676

 

 

1,566

 

 

—

 

 

1,566

 

 

—

 

 

 

—

 

 

—

Total By-product credits

 

 

(51,199)

 

 

(132)

 

 

(51,331)

 

 

(59,283)

 

 

(119)

 

 

(59,402)

 

 

(264,806)

 

 

(522)

 

 

(265,328)

 

 

(299,406

)

 

 

(610)

 

 

(300,016)

Cash Cost, After By-product Credits

 

$

11,146

 

$

38,317

 

$

49,463

 

$

9,190

 

$

35,781

 

$

44,971

 

$

41,067

 

$

149,256

 

$

190,323

 

$

29,147

 

 

$

188,559

 

$

217,706

AISC, After By-product Credits

 

$

39,488

 

$

44,329

 

$

83,817

 

$

31,628

 

$

41,133

 

$

72,761

 

$

149,529

 

$

185,098

 

$

334,627

 

$

150,825

 

 

$

226,261

 

$

377,086

Ounces produced

 

 

2,322

 

 

23

 

 

 

 

2,818

 

 

24

 

 

 

 

12,818

 

 

90

 

 

 

 

14,155

 

 

 

128

 

 

Exclusion of Lucky Friday ounces produced (8)

 

 

(62)

 

 

—

 

 

 

 

(41)

 

 

—

 

 

 

 

(103)

 

 

—

 

 

 

 

—

 

 

 

—

 

 

Divided by ounces produced

 

 

2,260

 

 

23

 

 

 

 

2,777

 

 

24

 

 

 

 

12,715

 

 

90

 

 

 

 

14,155

 

 

 

128

 

 

Cash Cost, Before By-product Credits, per Ounce

 

$

27.59

 

$

1,708

 

 

 

$

24.66

 

$

1,480

 

 

 

$

24.06

 

$

1,658

 

 

 

$

23.21

 

 

$

1,483

 

 

By-product credits per ounce

 

 

(22.65)

 

 

(6)

 

 

 

 

(21.35)

 

 

(5)

 

 

 

 

(20.83)

 

 

(6)

 

 

 

 

(21.15

)

 

 

(5)

 

 

Cash Cost, After By-product Credits, per Ounce

 

$

4.94

 

$

1,702

 

 

 

$

3.31

 

$

1,475

 

 

 

$

3.23

 

$

1,652

 

 

 

$

2.06

 

 

$

1,478

 

 

AISC, Before By-product Credits, per Ounce

 

$

40.13

 

$

1,975

 

 

 

$

32.74

 

$

1,700

 

 

 

$

32.59

 

$

2,054

 

 

 

$

31.81

 

 

$

1,778

 

 

By-product credits per ounce

 

 

(22.65)

 

 

(6)

 

 

 

 

(21.35)

 

 

(5)

 

 

 

 

(20.83)

 

 

(6)

 

 

 

 

(21.15

)

 

 

(5)

 

 

AISC, After By-product Credits, per Ounce

 

$

17.48

 

 

1,969

 

 

 

$

11.39

 

 

1,695

 

 

 

$

11.76

 

 

2,048

 

 

 

$

10.66

 

 

 

1,773

 

 

  In thousands (except per ounce amounts)

Three Months Ended June 30, 2023 (5)

Three Months Ended March 31, 2023 (5)

Three Months Ended December 31, 2022 (5)

 

Greens Creek

Lucky Friday

Keno Hill

Corporate (2)

 

Total Silver

Greens Creek

Lucky Friday

Corporate (2)

 

Total Silver

Greens Creek

Lucky Friday

Corporate (2)

 

Total Silver

Total cost of sales

$

63,054

$

32,190

$

1,581

$

—

 

$

96,825

$

66,288

$

34,534

$

—

 

$

100,822

$

70,074

$

32,819

$

—

 

$

102,893

Depreciation, depletion and amortization

 

(13,078)

 

(8,979)

 

(261)

 

—

 

 

(22,318)

 

(14,464)

 

(10,456)

 

—

 

 

(24,920)

 

(13,557)

 

(9,549)

 

—

 

 

(23,106)

Treatment costs

 

10,376

 

4,187

 

113

 

—

 

 

14,676

 

10,369

 

5,276

 

—

 

 

15,645

 

10,467

 

5,334

 

—

 

 

15,801

Change in product inventory

 

(1,242)

 

1,546

 

 

—

 

 

304

 

(1,614)

 

(2,409)

 

—

 

 

(4,023)

 

(4,014)

 

(571)

 

—

 

 

(4,585)

Reclamation and other costs

 

263

 

(250)

 

 

—

 

 

13

 

(129)

 

(408)

 

—

 

 

(537)

 

499

 

(265)

 

—

 

 

234

Exclusion of Keno Hill cash costs

 

—

 

—

 

(1,433)

 

—

 

 

(1,433)

 

 

 

 

 

 

 

 

 

 

Cash Cost, Before By-product Credits (1)

 

59,373

 

28,694

 

—

 

—

 

 

88,067

 

60,450

 

26,537

 

—

 

 

86,987

 

63,469

 

27,768

 

—

 

 

91,237

Reclamation and other costs

 

722

 

285

 

—

 

—

 

 

1,007

 

722

 

285

 

—

 

 

1,007

 

706

 

282

 

—

 

 

988

Sustaining capital

 

8,714

 

9,081

 

—

 

688

 

 

18,483

 

6,641

 

7,784

 

—

 

 

14,425

 

9,862

 

8,369

 

—

 

 

18,231

General and administrative

 

—

 

—

 

—

 

10,783

 

 

10,783

 

—

 

—

 

12,070

 

 

12,070

 

—

 

—

 

14,395

 

 

14,395

AISC, Before By-product Credits (1)

 

68,809

 

38,060

 

—

 

11,471

 

 

118,340

 

67,813

 

34,606

 

12,070

 

 

114,489

 

74,037

 

36,419

 

14,395

 

 

124,851

By-product credits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Zinc

 

(20,923)

 

(5,448)

 

—

 

—

 

 

(26,371)

 

(24,005)

 

(6,816)

 

—

 

 

(30,821)

 

(26,112)

 

(6,249)

 

—

 

 

(32,361)

Gold

 

(28,458)

 

—

 

—

 

—

 

 

(28,458)

 

(25,286)

 

—

 

—

 

 

(25,286)

 

(19,630)

 

—

 

—

 

 

(19,630)

Lead

 

(6,860)

 

(14,287)

 

—

 

—

 

 

(21,147)

 

(7,942)

 

(14,299)

 

—

 

 

(22,241)

 

(7,351)

 

(14,392)

 

—

 

 

(21,743)

Total By-product credits

 

(56,241)

 

(19,735)

 

—

 

—

 

 

(75,976)

 

(57,233)

 

(21,115)

 

—

 

 

(78,348)

 

(53,093)

 

(20,641)

 

—

 

 

(73,734)

Cash Cost, After By-product Credits

$

3,132

$

8,959

$

—

$

—

 

$

12,091

$

3,217

$

5,422

$

—

 

$

8,639

$

10,376

$

7,127

$

—

 

$

17,503

AISC, After By-product Credits

$

12,568

$

18,325

$

—

$

11,471

 

$

42,364

$

10,580

$

13,491

$

12,070

 

$

36,141

$

20,944

$

15,778

$

14,395

 

$

51,117

Divided by ounces produced

 

2,356

 

1,287

 

 

 

 

3,642

 

2,773

 

1,262

 

 

 

4,035

 

2,433

 

1,224

 

 

 

3,657

Cash Cost, Before By-product Credits, per Silver Ounce

$

25.20

$

22.30

 

 

 

$

24.18

$

21.80

$

21.03

 

 

$

21.56

$

26.08

$

22.68

 

 

$

24.95

By-product credits per ounce

 

(23.87)

 

(15.34)

 

 

 

 

(20.86)

 

(20.64)

 

(16.73)

 

 

 

(19.42)

 

(21.82)

 

(16.86)

 

 

 

(20.16)

Cash Cost, After By-product Credits, per Silver Ounce

$

1.33

$

6.96

 

 

 

$

3.32

$

1.16

$

4.30

 

 

$

2.14

$

4.26

$

5.82

 

 

$

4.79

AISC, Before By-product Credits, per Silver Ounce

$

29.21

$

29.58

 

 

 

$

32.49

$

24.46

$

27.42

 

 

$

28.38

$

30.43

$

29.74

 

 

$

34.14

By-product credits per ounce

 

(23.87)

 

(15.34)

 

 

 

 

(20.86)

 

(20.64)

 

(16.73)

 

 

 

(19.42)

 

(21.82)

 

(16.86)

 

 

 

(20.16)

AISC, After By-product Credits, per Silver Ounce

$

5.34

$

14.24

 

 

 

$

11.63

$

3.83

$

10.69

 

 

$

8.96

$

8.61

$

12.88

 

 

$

13.98

  In thousands (except per ounce amounts)

 

Three Months Ended June 30, 2023 (5)

 

Three Months Ended March 31, 2023 (5)

 

Three Months Ended December 31, 2022 (5)

 

 

Casa Berardi

 

Nevada Operations and Other (4)

 

Total Gold

 

Casa Berardi

 

Nevada Operations and Other (4)

 

Total Gold

 

Casa Berardi

 

Total Gold

Total cost of sales

 

$

42,576

 

$

1,071

 

$

43,647

 

$

62,998

 

$

732

 

$

63,730

 

$

65,328

 

$

65,328

Depreciation, depletion and amortization

 

 

(10,272)

 

 

(127)

 

 

(10,399)

 

 

(14,036)

 

 

(47)

 

 

(14,083)

 

 

(14,568)

 

 

(14,568)

Treatment costs

 

 

351

 

 

—

 

 

351

 

 

467

 

 

—

 

 

467

 

 

521

 

 

521

Change in product inventory

 

 

(951)

 

 

—

 

 

(951)

 

 

(2,417)

 

 

—

 

 

(2,417)

 

 

1,122

 

 

1,122

Reclamation and other costs

 

 

(219)

 

 

—

 

 

(219)

 

 

(217)

 

 

—

 

 

(217)

 

 

(196)

 

 

(196)

Exclusion of Casa Berardi cash costs

 

 

—

 

 

—

 

 

—

 

 

(2,851)

 

 

—

 

 

(2,851)

 

 

—

 

 

—

Exclusion of Nevada and Other costs

 

 

—

 

 

(944)

 

 

(944)

 

 

—

 

 

(685)

 

 

(685)

 

 

—

 

 

—

Cash Cost, Before By-product Credits (1)

 

 

31,485

 

 

—

 

 

31,485

 

 

43,944

 

 

—

 

 

43,944

 

 

52,207

 

 

52,207

Reclamation and other costs

 

 

219

 

 

—

 

 

219

 

 

217

 

 

—

 

 

217

 

 

196

 

 

196

Sustaining capital

 

 

9,025

 

 

—

 

 

9,025

 

 

15,015

 

 

—

 

 

15,015

 

 

11,438

 

 

11,438

AISC, Before By-product Credits (1)

 

 

40,729

 

 

—

 

 

40,729

 

 

59,176

 

 

—

 

 

59,176

 

 

63,841

 

 

63,841

By-product credits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Silver

 

 

(144)

 

 

—

 

 

(144)

 

 

(127)

 

 

—

 

 

(127)

 

 

(124)

 

 

(124)

Total By-product credits

 

 

(144)

 

 

—

 

 

(144)

 

 

(127)

 

 

—

 

 

(127)

 

 

(124)

 

 

(124)

Cash Cost, After By-product Credits

 

$

31,341

 

$

—

 

$

31,341

 

$

43,817

 

$

—

 

$

43,817

 

$

52,083

 

$

52,083

AISC, After By-product Credits

 

$

40,585

 

$

—

 

$

40,585

 

$

59,049

 

$

—

 

$

59,049

 

$

63,717

 

$

63,717

Divided by gold ounces produced

 

 

19

 

 

—

 

 

19

 

 

25

 

 

—

 

 

25

 

 

31

 

 

31

Cash Cost, Before By-product Credits, per Gold Ounce

 

$

1,666

 

$

—

 

$

1,666

 

$

1,780

 

$

—

 

$

1,780

 

$

1,700

 

$

1,700

By-product credits per ounce

 

 

(8)

 

 

—

 

 

(8)

 

 

(5)

 

 

—

 

 

(5)

 

 

(4)

 

 

(4)

Cash Cost, After By-product Credits, per Gold Ounce

 

$

1,658

 

$

—

 

$

1,658

 

$

1,775

 

$

—

 

$

1,775

 

$

1,696

 

$

1,696

AISC, Before By-product Credits, per Gold Ounce

 

$

2,155

 

$

—

 

$

2,155

 

$

2,397

 

$

—

 

$

2,397

 

$

2,079

 

$

2,079

By-product credits per ounce

 

 

(8)

 

 

—

 

 

(8)

 

 

(5)

 

 

—

 

 

(5)

 

 

(4)

 

 

(4)

AISC, After By-product Credits, per Gold Ounce

 

$

2,147

 

$

—

 

$

2,147

 

$

2,392

 

$

—

 

$

2,392

 

$

2,075

 

$

2,075

  In thousands (except per ounce amounts)

 

Three Months Ended June 30, 2023 (5)

 

Three Months Ended March 31, 2023 (5)

 

Three Months Ended December 31, 2022 (5)

 

 

Total Silver

 

Total Gold

 

Total

 

Total Silver

 

Total Gold

 

Total

 

Total Silver

 

Total Gold

 

Total

Total cost of sales

 

$

96,825

 

$

43,647

 

$

140,472

 

$

100,822

 

$

63,730

 

$

164,552

 

$

102,893

 

$

65,328

 

$

168,221

Depreciation, depletion and amortization

 

 

(22,318)

 

 

(10,399)

 

 

(32,717)

 

 

(24,920)

 

 

(14,083)

 

 

(39,003)

 

 

(23,106)

 

 

(14,568)

 

 

(37,674)

Treatment costs

 

 

14,676

 

 

351

 

 

15,027

 

 

15,645

 

 

467

 

 

16,112

 

 

15,801

 

 

521

 

 

16,322

Change in product inventory

 

 

304

 

 

(951)

 

 

(647)

 

 

(4,023)

 

 

(2,417)

 

 

(6,440)

 

 

(4,585)

 

 

1,122

 

 

(3,463)

Reclamation and other costs

 

 

13

 

 

(219)

 

 

(206)

 

 

(537)

 

 

(217)

 

 

(754)

 

 

234

 

 

(196)

 

 

38

Exclusion of Keno Hill cash cost

 

 

(1,433)

 

 

 

 

(1,433)

 

 

 

 

 

 

 

 

 

 

 

 

Exclusion of Casa Berardi cash costs

 

 

—

 

 

—

 

 

—

 

 

—

 

 

(2,851)

 

 

(2,851)

 

 

—

 

 

—

 

 

—

Exclusion of Nevada and Other costs

 

 

—

 

 

(944)

 

 

(944)

 

 

—

 

 

(685)

 

 

(685)

 

 

—

 

 

—

 

 

—

Cash Cost, Before By-product Credits (1)

 

 

88,067

 

 

31,485

 

 

119,552

 

 

86,987

 

 

43,944

 

 

130,931

 

 

91,237

 

 

52,207

 

 

143,444

Reclamation and other costs

 

 

1,007

 

 

219

 

 

1,226

 

 

1,007

 

 

217

 

 

1,224

 

 

988

 

 

196

 

 

1,184

Sustaining capital

 

 

18,483

 

 

9,025

 

 

27,508

 

 

14,425

 

 

15,015

 

 

29,440

 

 

18,231

 

 

11,438

 

 

29,669

General and administrative

 

 

10,783

 

 

—

 

 

10,783

 

 

12,070

 

 

 

 

12,070

 

 

14,395

 

 

—

 

 

14,395

AISC, Before By-product Credits (1)

 

 

118,340

 

 

40,729

 

 

159,069

 

 

114,489

 

 

59,176

 

 

173,665

 

 

124,851

 

 

63,841

 

 

188,692

By-product credits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Zinc

 

 

(26,371)

 

 

—

 

 

(26,371)

 

 

(30,821)

 

 

—

 

 

(30,821)

 

 

(32,361)

 

 

—

 

 

(32,361)

Gold

 

 

(28,458)

 

 

—

 

 

(28,458)

 

 

(25,286)

 

 

—

 

 

(25,286)

 

 

(19,630)

 

 

—

 

 

(19,630)

Lead

 

 

(21,147)

 

 

—

 

 

(21,147)

 

 

(22,241)

 

 

—

 

 

(22,241)

 

 

(21,743)

 

 

—

 

 

(21,743)

Silver

 

 

—

 

 

(144)

 

 

(144)

 

 

 

 

(127)

 

 

(127)

 

 

 

 

(124)

 

 

(124)

Total By-product credits

 

 

(75,976)

 

 

(144)

 

 

(76,120)

 

 

(78,348)

 

 

(127)

 

 

(78,475)

 

 

(73,734)

 

 

(124)

 

 

(73,858)

Cash Cost, After By-product Credits

 

$

12,091

 

$

31,341

 

$

43,432

 

$

8,639

 

$

43,817

 

$

52,456

 

$

17,503

 

$

52,083

 

$

69,586

AISC, After By-product Credits

 

$

42,364

 

$

40,585

 

$

82,949

 

$

36,141

 

$

59,049

 

$

95,190

 

$

51,117

 

$

63,717

 

$

114,834

Divided by ounces produced

 

 

3,642

 

 

19

 

 

 

 

4,035

 

 

25

 

 

 

 

3,657

 

 

31

 

 

Cash Cost, Before By-product Credits, per Ounce

 

$

24.18

 

$

1,666

 

 

 

$

21.56

 

 

1,780

 

 

 

$

24.95

 

$

1,700

 

 

By-product credits per ounce

 

 

(20.86)

 

 

(8)

 

 

 

 

(19.42)

 

 

(5)

 

 

 

 

(20.16)

 

 

(4)

 

 

Cash Cost, After By-product Credits, per Ounce

 

$

3.32

 

$

1,658

 

 

 

$

2.14

 

$

1,775

 

 

 

$

4.79

 

$

1,696

 

 

AISC, Before By-product Credits, per Ounce

 

$

32.49

 

$

2,155

 

 

 

$

28.38

 

$

2,397

 

 

 

$

34.14

 

$

2,079

 

 

By-product credits per ounce

 

 

(20.86)

 

 

(8)

 

 

 

 

(19.42)

 

 

(5)

 

 

 

 

(20.16)

 

 

(4)

 

 

AISC, After By-product Credits, per Ounce

 

$

11.63

 

$

2,147

 

 

 

$

8.96

 

$

2,392

 

 

 

$

13.98

 

$

2,075

 

 

(1)

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 and royalties, before by-product revenues earned from all metals other than the primary metal produced at each operation. AISC, Before By-product Credits also includes reclamation and sustaining capital costs.

(2)

AISC, Before By-product Credits for our consolidated silver properties includes corporate costs for general and administrative expense and sustaining capital.

(3)

During the three months ended March 31, 2023, the Company completed the necessary studies to conclude usage of the F-160 pit as a tailings storage facility after mining is complete. As a result, a portion of the mining costs have been excluded from Cash Cost, Before By-product Credits and AISC, Before By-product Credits.

(4)

Other includes $5.3 million of sales and total cost of sales for the year ended December 31, 2023 and $0.5 million of sales and total cost of sales for the year ended December 31, 2022, related to the environmental services business acquired as part of the Alexco acquisition.

(5)

Prior year presentation has been adjusted to conform with current year presentation to eliminate exploration costs from the calculation of AISC, Before By-product Credits as exploration is an activity directed at the Corporate level to find new mineral reserve and resource deposits, and therefore we believe it is inappropriate to include exploration costs in the calculation of AISC, Before By-product Credits for a specific mining operation.

(6)

Keno Hill is in the ramp-up phase of production and is excluded from the calculation of total cost of sales, Cash Cost, Before By-product Credits, Cash Cost, After By-product Credits, AISC, Before By-product Credits, and AISC, After By-product Credits.

(7)

Casa Berardi operations were suspended in June 2023 in response to the directive of the Quebec Ministry of Natural Resources and Forests as a result of fires in the region. Suspension costs amounted to $2.2 million for the year ended December 31, 2023, and are excluded from the calculation of total cost of sales, Cash Cost, Before By-product Credits, Cash Cost, After By-product Credits, AISC, Before By-product Credits, and AISC, After By-product Credits.

(8)

Lucky Friday operations were suspended in August 2023 following the underground fire in the #2 shaft secondary egress. The portion of cash costs, sustaining costs, by-product credits, and silver production incurred since the suspension are excluded from the calculation of total cost of sales, Cash Cost, Before By-product Credits, Cash Cost, After By-product Credits, AISC, Before By-product Credits, and AISC, After By-product Credits.

 

 

2024 Guidance, Previous and Current Estimates: Reconciliation of Cost of Sales to Non-GAAP Measures

In thousands (except per ounce amounts)

 

Estimate for Twelve Months Ended December 31, 2024

 

 

Greens Creek

 

Lucky Friday

 

Corporate(2)

 

Total Silver

 

Casa Berardi

 

Total Gold

Cost of sales and other direct production costs and depreciation, depletion and amortization

 

$

252,000

 

$

129,400

 

$

—

 

$

381,400

 

$

205,000

 

$

205,000

Depreciation, depletion and amortization

 

 

(53,000)

 

 

(36,400)

 

 

—

 

 

(89,400)

 

 

(79,800)

 

 

(79,800)

Treatment costs

 

 

38,000

 

 

15,700

 

 

—

 

 

53,700

 

 

200

 

 

200

Change in product inventory

 

 

2,500

 

 

—

 

 

—

 

 

2,500

 

 

(900)

 

 

(900)

Reclamation and other costs

 

 

400

 

 

—

 

 

—

 

 

400

 

 

—

 

 

—

Cash Cost, Before By-product Credits (1)

 

 

239,900

 

 

108,700

 

 

—

 

 

348,600

 

 

124,500

 

 

124,500

Reclamation and other costs

 

 

1,500

 

 

1,100

 

 

—

 

 

2,600

 

 

900

 

 

900

Sustaining capital

 

 

56,000

 

 

43,400

 

 

—

 

 

99,400

 

 

13,500

 

 

13,500

General and administrative

 

 

—

 

 

 

 

48,600

 

 

48,600

 

 

—

 

 

—

AISC, Before By-product Credits (1)

 

 

297,400

 

 

153,200

 

 

48,600

 

 

499,200

 

 

138,900

 

 

138,900

By-product credits:

 

 

 

 

 

 

 

 

 

 

 

 

Zinc

 

 

(90,000)

 

 

(27,300)

 

 

 

 

(117,300)

 

 

—

 

 

—

Gold

 

 

(86,000)

 

 

—

 

 

 

 

(86,000)

 

 

—

 

 

—

Lead

 

 

(32,000)

 

 

(67,400)

 

 

 

 

(99,400)

 

 

—

 

 

—

Silver

 

 

0

 

 

0

 

 

 

 

—

 

 

(400)

 

 

(400)

Total By-product credits

 

 

(208,000)

 

 

(94,700)

 

 

—

 

 

(302,700)

 

 

(400)

 

 

(400)

Cash Cost, After By-product Credits

 

$

31,900

 

$

14,000

 

$

—

 

$

45,900

 

$

124,100

 

$

124,100

AISC, After By-product Credits

 

$

89,400

 

$

58,500

 

$

48,600

 

$

196,500

 

$

138,500

 

$

138,500

Divided by silver ounces produced

 

 

9,000

 

 

5,100

 

 

 

 

14,100

 

 

78.5

 

 

78.5

Cash Cost, Before By-product Credits, per Silver Ounce

 

$

26.66

 

$

21.31

 

 

 

$

24.72

 

$

1,586

 

$

1,586

By-product credits per silver ounce

 

 

(23.11)

 

 

(18.57)

 

 

 

 

(21.47)

 

 

(5)

 

 

(5)

Cash Cost, After By-product Credits, per Silver Ounce

 

$

3.54

 

$

2.75

 

 

 

$

3.26

 

$

1,581

 

$

1,581

AISC, Before By-product Credits, per Silver Ounce

 

$

33.04

 

$

30.04

 

 

 

$

35.40

 

$

1,769

 

$

1,769

By-product credits per silver ounce

 

 

(23.11)

 

 

(18.57)

 

 

 

 

(21.47)

 

 

(5)

 

 

(5)

AISC, After By-product Credits, per Silver Ounce

 

$

9.93

 

$

11.47

 

 

 

$

13.94

 

$

1,764

 

$

1,764

(1)

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 and royalties, before by-product revenues earned from all metals other than the primary metal produced at each operation. AISC, Before By-product Credits also includes reclamation and sustaining capital costs.

(2)

AISC, Before By-product Credits for our consolidated silver properties includes corporate costs for general and administrative expense and sustaining capital.

 

 

Reconciliation of Net 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 and mining taxes, depreciation, depletion, and amortization expense, ramp-up and suspension costs, gains and losses on disposition of properties, plants, equipment and mineral interests, foreign exchange gains and losses, fair value adjustments, net, interest and other income, provisions for environmental matters, stock-based compensation, provisional price gains and losses, monetization of zinc and lead hedges and inventory adjustments. Net debt is calculated as total debt, which consists of the liability balances for our Senior Notes, capital leases, and other notes payable, less the total of our cash and cash equivalents and short-term investments. 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

 

4Q-2023

 

3Q-2023

 

2Q-2023

 

1Q-2023

 

4Q-2022

 

FY 2023

 

FY 2022

Net loss

 

$

(42,935

)

 

$

(22,415

)

 

$

(15,694

)

 

$

(3,173

)

 

$

(4,452

)

 

$

(84,217

)

 

$

(37,348

)

Interest expense

 

 

12,133

 

 

 

10,710

 

 

 

10,311

 

 

 

10,165

 

 

 

11,008

 

 

 

43,319

 

 

 

42,793

 

Income and mining tax provision (benefit)

 

 

(5,682

)

 

 

(1,500

)

 

 

5,162

 

 

 

3,242

 

 

 

(3,924

)

 

 

1,222

 

 

 

(7,566

)

Depreciation, depletion and amortization

 

 

51,967

 

 

 

37,095

 

 

 

34,718

 

 

 

39,892

 

 

 

37,576

 

 

 

163,672

 

 

 

143,938

 

Ramp-up and suspension costs

 

 

27,568

 

 

 

21,025

 

 

 

16,323

 

 

 

11,336

 

 

 

7,575

 

 

 

76,252

 

 

 

24,114

 

Loss (gain) on disposition of properties, plants, equipment, and mineral interests

 

 

1,043

 

 

 

(119

)

 

 

(75

)

 

 

—

 

 

 

—

 

 

 

849

 

 

 

16

 

Foreign exchange loss (gain)

 

 

4,244

 

 

 

(4,176

)

 

 

3,850

 

 

 

(108

)

 

 

900

 

 

 

3,810

 

 

 

(7,211

)

Fair value adjustments, net

 

 

(8,699

)

 

 

6,397

 

 

 

2,558

 

 

 

(3,181

)

 

 

(9,985

)

 

 

(2,925

)

 

 

4,788

 

Provisional price (gains) losses

 

 

(5,930

)

 

 

(8,064

)

 

 

(2,143

)

 

 

(2,093

)

 

 

(625

)

 

 

(18,230

)

 

 

20,839

 

Provision for closed operations and environmental matters

 

 

1,164

 

 

 

2,256

 

 

 

3,111

 

 

 

1,044

 

 

 

3,741

 

 

 

7,575

 

 

 

8,793

 

Stock-based compensation

 

 

1,476

 

 

 

2,434

 

 

 

1,498

 

 

 

1,190

 

 

 

1,714

 

 

 

6,598

 

 

 

6,012

 

Inventory adjustments

 

 

4,487

 

 

 

8,814

 

 

 

2,997

 

 

 

4,521

 

 

 

487

 

 

 

20,819

 

 

 

2,646

 

Monetization of zinc and lead hedges

 

 

(3,753

)

 

 

(5,582

)

 

 

5,467

 

 

 

(579

)

 

 

16,664

 

 

 

(4,447

)

 

 

16,664

 

Other

 

 

(422

)

 

 

(624

)

 

 

(343

)

 

 

(355

)

 

 

1,582

 

 

 

(1,744

)

 

 

(986

)

Adjusted EBITDA

 

$

36,661

 

 

$

46,251

 

 

$

67,740

 

 

$

61,901

 

 

$

62,261

 

 

$

212,553

 

 

$

217,492

 

Total debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

662,815

 

 

$

517,742

 

Less: Cash and cash equivalents

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

106,374

 

 

 

104,743

 

Net debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

556,441

 

 

$

412,999

 

Net debt/LTM adjusted EBITDA (non-GAAP)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2.6

 

 

 

1.9

 

 

 

Reconciliation of Net Loss Applicable to Common Stockholders (GAAP) to Adjusted Net (Loss) Income Applicable to Common Shareholders (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

 

4Q-2023

 

3Q-2023

 

2Q-2023

 

1Q-2023

 

4Q-2022

 

FY-2023

 

FY-2022

Net loss applicable to common stockholders

 

$

(43,073

)

 

$

(22,553

)

 

$

(15,832

)

 

$

(3,311

)

 

$

(4,590

)

 

$

(84,769

)

 

$

(37,900

)

Adjusted for items below:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair value adjustments, net

 

 

(8,699

)

 

 

6,397

 

 

 

2,558

 

 

 

(3,181

)

 

 

(9,985

)

 

 

(2,925

)

 

 

—

 

Provisional pricing (gains) losses

 

 

(5,930

)

 

 

(8,064

)

 

 

(2,143

)

 

 

(2,093

)

 

 

(625

)

 

 

(18,230

)

 

 

20,839

 

Environmental accruals

 

 

200

 

 

 

763

 

 

 

1,989

 

 

 

—

 

 

 

2,860

 

 

 

2,952

 

 

 

2,874

 

Foreign exchange loss (gain)

 

 

4,244

 

 

 

(4,176

)

 

 

3,850

 

 

 

(108

)

 

 

900

 

 

 

3,810

 

 

 

(7,211

)

Ramp-up and suspension costs

 

 

27,568

 

 

 

21,025

 

 

 

16,323

 

 

 

11,336

 

 

 

7,575

 

 

 

76,252

 

 

 

24,114

 

Loss (gain) on disposition of properties, plants, equipment and mineral interests

 

 

1,043

 

 

 

(119

)

 

 

(75

)

 

 

0

 

 

 

—

 

 

 

849

 

 

 

16

 

Inventory adjustments

 

 

4,487

 

 

 

8,814

 

 

 

2,997

 

 

 

4,521

 

 

 

487

 

 

 

20,819

 

 

 

2,646

 

Monetization of zinc hedges

 

 

(3,753

)

 

 

(5,582

)

 

 

5,467

 

 

 

(579

)

 

 

16,664

 

 

 

(4,447

)

 

 

16,664

 

Other

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

939

 

 

 

—

 

 

 

5,727

 

Adjusted (loss) income applicable to common stockholders

 

$

(23,913

)

 

$

(3,495

)

 

$

15,134

 

 

$

6,585

 

 

$

14,225

 

 

$

(5,689

)

 

$

27,769

 

Weighted average shares - basic

 

 

610,547

 

 

 

607,896

 

 

 

604,088

 

 

 

600,075

 

 

 

596,959

 

 

 

605,668

 

 

 

557,344

 

Weighted average shares - diluted

 

 

610,547

 

 

 

607,896

 

 

 

604,088

 

 

 

600,075

 

 

 

596,959

 

 

 

605,668

 

 

 

557,344

 

Basic adjusted net (loss) income per common stock (in cents)

 

 

(0.04

)

 

 

(0.01

)

 

 

0.03

 

 

 

0.01

 

 

 

0.02

 

 

 

(0.01

)

 

 

0.05

 

Diluted adjusted net (loss) income per common stock (in cents)

 

 

(0.04

)

 

 

(0.01

)

 

 

0.03

 

 

 

0.01

 

 

 

0.02

 

 

 

(0.01

)

 

 

0.05

 

 

 

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 December 31,

 

Twelve Months Ended December 31,

 

 

2023

 

2022

 

2023

 

2022

Cash provided by operating activities

 

$

884

 

 

$

36,120

 

 

$

75,499

 

 

$

89,890

 

Less: Additions to properties, plants equipment and mineral interests

 

$

(62,622

)

 

$

(56,140

)

 

$

(223,887

)

 

$

(149,378

)

Free cash flow

 

$

(61,738

)

 

$

(20,020

)

 

$

(148,388

)

 

$

(59,488

)

 

Free cash flow is a non-GAAP measure calculated as cash provided by operating activities less additions to properties, plants and equipment. Cash provided by operating activities for our silver operations, the Greens Creek and Lucky Friday operating segments, excludes exploration and pre-development expense, as it is a discretionary expenditure and not a component of the mines’ operating performance.

Dollars are in thousands

 

Total Silver Operations

 

Years Ended December 31,

 

 

 

 

2023

 

2022

 

2021

 

2020

Cash provided by operating activities

 

$

850,731

 

 

$

214,883

 

 

$

188,434

 

 

$

271,309

 

 

$

176,105

 

Exploration

 

$

18,326

 

 

$

7,815

 

 

$

5,920

 

 

$

4,591

 

 

$

-

 

Less: Additions to properties, plants equipment and mineral interests

 

$

(295,998

)

 

$

(108,879

)

 

$

(87,890

)

 

$

(53,768

)

 

$

(45,461

)

Free cash flow

 

$

573,059

 

 

$

113,819

 

 

$

106,464

 

 

$

222,132

 

 

$

130,644

 

  Table A

Hecla Mining Company - Reserves and Resources – 12/31/2023 (1)

Proven Reserves (1)

Asset

Location

Ownership

Tons (000)

Silver (oz/ton)

Gold (oz/ton)

Lead %

Zinc %

Silver (000 oz)

Gold (000 oz)

Lead Tons

Zinc Tons

Greens Creek (2,3)

United States

100.0%

9

11.3

0.08

3.5

8.4

100

1

310

740

Lucky Friday (2,4)

United States

100.0%

5,299

12.8

-

8.0

3.8

67,595

-

424,080

201,280

Casa Berardi Underground (2,5)

Canada

100.0%

55

-

0.12

-

-

-

7

-

-

Casa Berardi Open Pit (2,5)

Canada

100.0%

4,240

-

0.09

-

-

-

379

-

-

Keno Hill (2,6)

Canada

100.0%

-

-

-

-

-

-

-

-

-

Total

 

 

9,603

 

 

 

 

67,695

387

424,390

202,020

Probable Reserves (7)

Asset

Location

Ownership

Tons (000)

Silver (oz/ton)

Gold (oz/ton)

Lead %

Zinc %

Silver (000 oz)

Gold (000 oz)

Lead (Tons)

Zinc (Tons)

Greens Creek (2,3)

United States

100.0%

10,009

10.5

0.09

2.5

6.6

105,122

880

250,270

657,990

Lucky Friday (2,4)

United States

100.0%

966

10.8

-

7.1

2.9

10,411

-

68,320

28,100

Casa Berardi Underground (2,5)

Canada

100.0%

175

-

0.15

-

-

-

26

-

-

Casa Berardi Open Pit (2,5)

Canada

100.0%

11,384

-

0.08

-

-

-

859

-

-

Keno Hill (2,6)

Canada

100.0%

2,069

26.6

0.01

2.8

2.5

55,068

13

58,170

52,380

Total

 

 

24,603

 

 

 

 

170,601

1,778

376,760

738,470

Proven and Probable Reserves

Asset

Location

Ownership

Tons (000)

Silver (oz/ton)

Gold (oz/ton)

Lead %

Zinc %

Silver (000 oz)

Gold (000 oz)

Lead (Tons)

Zinc (Tons)

Greens Creek (2,3)

United States

100.0%

10,018

10.5

0.09

2.5

6.6

105,222

881

250,580

658,730

Lucky Friday (2,4)

United States

100.0%

6,265

12.5

-

7.9

3.7

78,006

-

492,400

229,380

Casa Berardi Underground (2,5)

Canada

100.0%

230

-

0.14

-

-

-

33

-

-

Casa Berardi Open Pit (2,5)

Canada

100.0%

15,624

-

0.08

-

-

-

1,238

-

-

Keno Hill (2,6)

Canada

100.0%

2,069

26.6

0.01

2.8

2.5

55,068

13

58,170

52,380

Total

 

 

34,206

 

 

 

 

238,296

2,165

801,150

940,490

(1)

The term “reserve” means an estimate of tonnage and grade or quality of indicated and measured mineral resources that, in the opinion of the qualified person, can be the basis of an economically viable project. More specifically, it is the economically mineable part of a measured or indicated mineral resource, which includes diluting materials and allowances for losses that may occur when the material is mined or extracted. The term “proven reserves” means the economically mineable part of a measured mineral resource and can only result from conversion of a measured mineral resource. See footnotes 8 and 9 below.

(2)

Mineral reserves are based on $17/oz silver, $1,650/oz gold, $0.90/lb lead, $1.15/lb zinc, unless otherwise stated. All Mineral Reserves are reported in-situ with estimates of mining dilution and mining loss.

(3)

The reserve NSR cut-off values for Greens Creek are $230/ton for all zones except the Gallagher Zone at $235/ton; metallurgical recoveries (actual 2023): 80% for silver, 74% for gold, 82% for lead, and 89% for zinc.

(4)

The reserve NSR cut-off values for Lucky Friday are $241.34/ton for the 30 Vein and $268.67/ton for the Intermediate Veins; metallurgical recoveries (actual 2023): 96% for silver, 95% for lead, and 85% for zinc

(5)

The average reserve cut-off grades at Casa Berardi are 0.11 oz/ton gold underground and 0.03 oz/ton gold for open pit. Metallurgical recovery (actual 2023): 85% for gold; US$/CAN$ exchange rate: 1:1.3. Underground mineral reserves at Casa Berardi were based on a gold price of $1,850/oz.

(6)

The reserve NSR cut-off value at Keno Hill is $244.24/ton (CAN$350/tonne), Metallurgical recovery (actual 2023): 96% for silver, 93% for lead, 81% for zinc; US$/CAN$ exchange rate: 1:1.3

(7)

The term “probable reserves” means the economically mineable part of an indicated and, in some cases, a measured mineral resource. See footnotes 9 and 10 below.

  Totals may not represent the sum of parts due to rounding Mineral Resources - 12/31/2023 (8)

Measured Resources (9)

Asset

Location

Ownership

Tons (000)

Silver (oz/ton)

Gold (oz/ton)

Lead %

Zinc %

Copper %

Silver (000 oz)

Gold (000 oz)

Lead (Tons)

Zinc (Tons)

Copper (Tons)

Greens Creek (12,13)

United States

100.0%

-

-

-

-

-

-

-

-

-

-

-

Lucky Friday (12,14)

United States

100.0%

5,326

8.6

-

5.6

2.7

-

45,785

-

299,360

146,420

-

Casa Berardi Underground(12,15)

Canada

100.0%

1,099

-

0.21

-

-

-

-

234

-

-

-

Casa Berardi Open Pit (12,15)

Canada

100.0%

67

-

0.03

-

-

-

-

2

-

-

-

Keno Hill (12,16)

Canada

100.0%

-

-

-

-

-

-

-

-

-

-

-

San Sebastian - Oxide (17)

Mexico

100.0%

-

-

-

-

-

-

-

-

-

-

-

San Sebastian - Sulfide (17)

Mexico

100.0%

-

-

-

-

-

-

-

-

-

-

-

Fire Creek (18,19)

United States

100.0%

-

-

-

-

-

-

-

-

-

-

-

Hollister (18,20)

United States

100.0%

18

4.9

0.59

-

-

-

87

10

-

-

-

Midas (18,21)

United States

100.0%

2

7.6

0.68

-

-

-

14

1

-

-

-

Heva (22)

Canada

100.0%

-

-

-

-

-

-

-

-

-

-

-

Hosco (22)

Canada

100.0%

-

-

-

-

-

-

-

-

-

-

-

Star (12,23)

United States

100.0%

-

-

-

-

-

-

-

-

-

-

-

Rackla - Tiger Underground (29)

Canada

100.0%

881

-

0.09

-

-

-

-

75

-

-

-

Rackla - Tiger Open Pit (29)

Canada

100.0%

32

-

0.06

-

-

-

-

2

-

-

-

Rackla - Osiris Underground (30)

Canada

100.0%

-

-

-

-

-

-

-

-

-

-

-

Rackla - Osiris Open Pit (30)

Canada

100.0%

-

-

-

-

-

-

-

-

-

-

-

Total

 

 

7,425

 

 

 

 

 

45,886

324

299,360

146,420

-

Indicated Resources (10)

Asset

Location

Ownership

Tons (000)

Silver (oz/ton)

Gold (oz/ton)

Lead %

Zinc %

Copper %

Silver (000 oz)

Gold (000 oz)

Lead (Tons)

Zinc (Tons)

Copper (Tons)

Greens Creek (12,13)

United States

100.0%

8,040

13.9

0.10

3.0

8.0

-

111,526

800

239,250

643,950

-

Lucky Friday (12,14)

United States

100.0%

1,011

8.0

-

6.0

2.7

-

8,136

-

60,200

26,910

-

Casa Berardi Underground (12,15)

Canada

100.0%

3,154

-

0.19

-

-

-

-

603

-

-

-

Casa Berardi Open Pit (12,15)

Canada

100.0%

205

-

0.03

-

-

-

-

5

-

-

-

Keno Hill (12,16)

Canada

100.0%

4,504

7.5

0.006

0.9

3.5

-

33,926

26

41,120

157,350

-

San Sebastian - Oxide (17)

Mexico

100.0%

1,453

6.5

0.09

-

-

-

9,430

135

-

-

-

San Sebastian - Sulfide (17)

Mexico

100.0%

1,187

5.5

0.01

1.9

2.9

1.2

6,579

16

22,420

34,100

14,650

Fire Creek (18,19)

United States

100.0%

114

1.0

0.46

-

-

-

113

53

-

-

-

Hollister (18,20)

United States

100.0%

70

1.9

0.58

-

-

-

130

40

-

-

-

Midas (18,21)

United States

100.0%

76

5.7

0.42

-

-

-

430

32

-

-

-

Heva (22)

Canada

100.0%

1,266

-

0.06

-

-

-

-

76

-

-

-

Hosco (22)

Canada

100.0%

29,287

-

0.04

-

-

-

-

1,202

-

-

-

Star (12,23)

United States

100.0%

1,068

3.0

-

6.4

7.7

-

3,177

-

67,970

82,040

-

Rackla - Tiger Underground (29)

Canada

100.0%

3,116

-

0.10

-

-

-

-

311

-

-

-

Rackla - Tiger Open Pit (29)

Canada

100.0%

960

-

0.08

-

-

-

-

76

-

-

-

Rackla - Osiris Underground (30)

Canada

100.0%

5,135

-

0.12

-

-

-

-

604

-

-

-

Rackla - Osiris Open Pit (30)

Canada

100.0%

960

-

0.13

-

-

-

-

128

-

-

-

Total

 

 

61,606

 

 

 

 

 

173,447

4,107

430,960

944,350

14,650

Measured & Indicated Resources

Asset

Location

Ownership

Tons (000)

Silver (oz/ton)

Gold (oz/ton)

Lead %

Zinc %

Copper %

Silver (000 oz)

Gold (000 oz)

Lead (Tons)

Zinc (Tons)

Copper (Tons)

Greens Creek (12,13)

United States

100.0%

8,040

13.9

0.10

3.0

8.0

-

111,526

800

239,250

643,950

-

Lucky Friday (12,14)

United States

100.0%

6,337

8.3

-

5.8

2.7

-

53,921

-

359,560

173,330

-

Casa Berardi Underground (12,15)

Canada

100.0%

4,253

-

0.20

-

-

-

-

837

-

-

-

Casa Berardi Open Pit (12,15)

Canada

100.0%

272

-

0.03

-

-

-

-

7

-

-

-

Keno Hill (12,16)

Canada

100.0%

4,504

7.5

0.006

0.9

3.5

-

33,926

26

41,120

157,350

-

San Sebastian - Oxide (17)

Mexico

100.0%

1,453

6.5

0.09

-

-

-

9,430

135

-

-

-

San Sebastian - Sulfide (17)

Mexico

100.0%

1,187

5.5

0.01

1.9

2.9

1.2

6,579

16

22,420

34,100

14,650

Fire Creek (18,19)

United States

100.0%

114

1.0

0.46

-

-

-

113

53

-

-

-

Hollister (18,20)

United States

100.0%

88

2.5

0.58

-

-

-

217

50

-

-

-

Midas (18,21)

United States

100.0%

78

5.7

0.43

-

-

-

444

33

-

-

-

Heva (22)

Canada

100.0%

1,266

-

0.06

-

-

-

-

76

-

-

-

Hosco (22)

Canada

100.0%

29,287

-

0.04

-

-

-

-

1,202

-

-

-

Star (12,23)

United States

100.0%

1,068

3.0

-

6.4

7.7

-

3,177

-

67,970

82,040

-

Rackla - Tiger Underground (29)

Canada

100.0%

3,997

-

0.10

-

-

-

-

386

-

-

-

Rackla - Tiger Open Pit (29)

Canada

100.0%

992

-

0.08

-

-

-

-

78

-

-

-

Rackla - Osiris Underground (30)

Canada

100.0%

5,135

-

0.12

-

-

-

-

604

-

-

-

Rackla - Osiris Open Pit (30)

Canada

100.0%

960

-

0.13

-

-

-

-

128

-

-

-

Total

 

 

69,031

 

 

 

 

 

219,333

4,431

730,320

1,090,770

14,650

Inferred Resources (11)

Asset

Location

Ownership

Tons (000)

Silver (oz/ton)

Gold (oz/ton)

Lead %

Zinc %

Copper %

Silver (000 oz)

Gold (000 oz)

Lead (Tons)

Zinc (Tons)

Copper (Tons)

Greens Creek (12,13)

United States

100.0%

1,930

13.4

0.08

2.9

6.9

-

25,891

154

55,890

133,260

-

Lucky Friday (12,14)

United States

100.0%

3,600

7.8

-

5.9

2.8

-

27,934

-

211,340

100,630

-

Casa Berardi Underground (12,15)

Canada

100.0%

1,475

-

0.22

-

-

-

-

332

-

-

-

Casa Berardi Open Pit (12,15)

Canada

100.0%

828

-

0.08

-

-

-

-

64

-

-

-

Keno Hill (12,16)

Canada

100.0%

2,836

11.2

0.003

1.1

1.8

-

31,791

9

32,040

51,870

-

San Sebastian - Oxide (17)

Mexico

100.0%

3,490

6.4

0.05

-

-

-

22,353

182

-

-

-

San Sebastian - Sulfide (17)

Mexico

100.0%

385

4.2

0.01

1.6

2.3

0.9

1,606

5

6,070

8,830

3,330

Fire Creek (18,19)

United States

100.0%

764

0.5

0.51

-

-

-

393

392

-

-

-

Fire Creek - Open Pit (24)

United States

100.0%

74,584

0.1

0.03

-

-

-

5,232

2,178

-

-

-

Hollister (18,20)

United States

100.0%

642

3.0

0.42

-

-

-

1,916

273

-

-

-

Midas (18,21)

United States

100.0%

1,232

6.3

0.50

-

-

-

7,723

615

-

-

-

Heva (22)

Canada

100.0%

2,787

-

0.08

-

-

-

-

216

-

-

-

Hosco (22)

Canada

100.0%

17,726

-

0.04

-

-

-

-

663

-

-

-

Star (12,23)

United States

100.0%

2,851

3.1

-

5.9

5.9

-

8,795

-

168,180

166,930

-

San Juan Silver (12,25)

United States

100.0%

2,570

14.9

0.01

1.4

1.1

-

38,203

34

49,400

39,850

-

Monte Cristo (26)

United States

100.0%

913

0.3

0.14

-

-

-

271

131

-

-

-

Rock Creek (12,27)

United States

100.0%

100,086

1.5

-

-

-

0.7

148,736

-

-

-

658,680

Libby Exploration Project (12,28)

United States

100.0%

112,185

1.6

-

-

-

0.7

183,346

-

-

-

759,420

Rackla - Tiger Underground (29)

Canada

100.0%

30

-

0.05

-

-

-

-

2

-

-

-

Rackla - Tiger Open Pit (29)

Canada

100.0%

152

-

0.07

-

-

-

-

10

-

-

-

Rackla - Osiris Underground (30)

Canada

100.0%

5,919

-

0.09

-

-

-

-

530

-

-

-

Rackla - Osiris Open Pit (30)

Canada

100.0%

4,398

-

0.12

-

-

-

-

514

-

-

-

Total

 

 

341,383

 

 

 

 

 

504,190

6,304

522,920

501,370

1,421,430

Note: All estimates are in-situ except for the proven reserves at Greens Creek which are in surface stockpiles. Mineral resources are exclusive of reserves.  

(8)

The term "mineral resources" means a concentration or occurrence of material of economic interest in or on the Earth's crust in such form, grade or quality, and quantity that there are reasonable prospects for economic extraction. A mineral resource is a reasonable estimate of mineralization, taking into account relevant factors such as cut-off grade, likely mining dimensions, location or continuity, that, with the assumed and justifiable technical and economic conditions, is likely to, in whole or in part, become economically extractable. It is not merely an inventory of all mineralization drilled or sampled.

(9)

The term "measured resources" means that part of a mineral resource for which quantity and grade or quality are estimated on the basis of conclusive geological evidence and sampling. The level of geological certainty associated with a measured mineral resource is sufficient to allow a qualified person to apply modifying factors in sufficient detail to support detailed mine planning and final evaluation of the economic viability of the deposit. Because a measured mineral resource has a higher level of confidence than the level of confidence of either an indicated mineral resource or an inferred mineral resource, a measured mineral resource may be converted to a proven mineral reserve or to a probable mineral reserve.

(10)

The term "indicated resources" means that part of a mineral resource for which quantity and grade or quality are estimated on the basis of adequate geological evidence and sampling. The level of geological certainty associated with an indicated mineral resource is sufficient to allow a qualified person to apply modifying factors in sufficient detail to support mine planning and evaluation of the economic viability of the deposit. Because an indicated mineral resource has a lower level of confidence than the level of confidence of a measured mineral resource, an indicated mineral resource may only be converted to a probable mineral reserve.

(11)

The term "inferred resources" means that part of a mineral resource for which quantity and grade or quality are estimated on the basis of limited geological evidence and sampling. The level of geological uncertainty associated with an inferred mineral resource is too high to apply relevant technical and economic factors likely to influence the prospects of economic extraction in a manner useful for evaluation of economic viability. Because an inferred mineral resource has the lowest level of geological confidence of all mineral resources, which prevents the application of the modifying factors in a manner useful for evaluation of economic viability, an inferred mineral resource may not be considered when assessing the economic viability of a mining project, and may not be converted to a mineral reserve.

(12)

Mineral resources for operating properties are based on $1,750/oz gold, $21/oz silver, $1.15/lb lead, $1.35/lb zinc and $3.00/lb copper, unless otherwise stated. Mineral resources for non-operating resource projects are based on $1,700/oz for gold, $21.00/oz for silver, $1.15/lb for lead, $1.35/lb for zinc and $3.00/lb for copper, unless otherwise stated.

(13)

The resource NSR cut-off values for Greens Creek are $230/ton for all zones except the Gallagher Zone at $235/ton; metallurgical recoveries (actual 2023): 80% for silver, 74% for gold, 82% for lead, and 89% for zinc.

(14)

The resource NSR cut-off values for Lucky Friday are $200.57/ton for the 30 Vein, $227.90/ton for the Intermediate Veins and $198.48/ton for the Lucky Friday Veins; metallurgical recoveries (actual 2023): 96% for silver, 95% for lead, and 85% for zinc

(15)

The average resource cut-off grades at Casa Berardi are 0.12 oz/ton gold for underground and 0.03 oz/ton gold for open pit; metallurgical recovery (actual 2023): 85% for gold; US$/CAN$ exchange rate: 1:1.3.

(16)

The resource NSR cut-off value at Keno Hill is $129.10/ton (CAN$185/tonne); using minimum width of 4.9 feet (1.5m); metallurgical recovery (actual 2023): 96% for silver, 93% for lead, 81% for zinc; US$/CAN$ exchange rate: 1:1.3

(17)

Indicated resources for most zones at San Sebastian based on $1,500/oz gold, $21/oz silver, $1.15/lb lead, $1.35/lb zinc and $3.00/lb copper using a cut-off grade of $90.72/ton ($100/tonne); $1700/oz gold used for Toro, Bronco, and Tigre zones. Metallurgical recoveries based on grade dependent recovery curves: recoveries at the mean resource grade average 89% for silver and 84% for gold for oxide material and 85% for silver, 83% for gold, 81% for lead, 86% for zinc, and 83% for copper for sulfide material. Resources reported at a minimum mining width of 8.2 feet (2.5m) for Middle Vein, North Vein, and East Francine, 6.5ft (1.98m) for El Toro, El Bronco, and El Tigre, and 4.9 feet (1.5 m) for Hugh Zone and Andrea.

(18)

Mineral resources for Fire Creek, Hollister and Midas are reported using $1,500/oz gold and $21/oz silver prices, unless otherwise noted. A minimum mining width is defined as four feet or the vein true thickness plus two feet, whichever is greater.

(19)

Fire Creek mineral resources are reported at a gold equivalent cut-off grade of 0.283 oz/ton. Metallurgical recoveries: 90% for gold and 70% for silver.

(20)

Hollister mineral resources, including the Hatter Graben are reported at a gold equivalent cut-off grade of 0.238 oz/ton. Metallurgical recoveries: 88% for gold and 66% for silver

(21)

Midas mineral resources are reported at a gold equivalent cut-off grade of 0.237 oz/ton. Metallurgical recoveries: 90% for gold and 70% for silver. A gold-equivalent cut-off grade of 0.1 oz/ton and a gold price of $1,700/oz used for Sinter Zone with resources undiluted.

(22)

Measured, indicated and inferred resources at Heva and Hosco are based on $1,500/oz gold. Resources are without dilution or material loss at a gold cut-off grade of 0.01 oz/ton for open pit and 0.088 oz/ton for underground. Metallurgical recovery: Heva: 95% for gold, Hosco: 88% for gold.

(23)

Indicated and Inferred resources at the Star property are reported using a minimum mining width of 4.3 feet and an NSR cut-off value of $150/ton; Metallurgical recovery: 93% for silver, 93% for lead, and 87% for zinc.

(24)

Inferred open-pit resources for Fire Creek calculated November 30, 2017 using gold and silver recoveries of 65% and 30% for oxide material and 60% and 25% for mixed oxide-sulfide material. Indicated Resources reclassified as Inferred in 2019. Open pit resources are calculated at $1,400 gold and $19.83 silver and cut-off grade of 0.01 Au Equivalent oz/ton and is inclusive of 10% mining dilution and 5% ore loss. Open pit mineral resources exclusive of underground mineral resources. NI43-101 Technical Report for the Fire Creek Project, Lander County, Nevada; Effective Date March 31, 2018; prepared by Practical Mining LLC, Mark Odell, P.E. for Hecla Mining Company, June 28, 2018.

(25)

Inferred resources reported at a minimum mining width of 6.0 feet for Bulldog and an NSR cut-off value of $175/ton and 5.0 feet for Equity and North Amethyst veins at an NSR cut-off value of $100/ton; Metallurgical recoveries based on grade dependent recovery curves; metal recoveries at the mean resource grade average 89% silver, 74% lead, and 81% zinc for the Bulldog and a constant 85% gold and 85% silver for North Amethyst and Equity.

(26)

Inferred resource at Monte Cristo reported at a minimum mining width of 5.0 feet; resources based on $1,400 Au, $26.50 Ag using a 0.06 oz/ton gold cut-off grade. Metallurgical recovery: 90% for gold and 90% silver.

(27)

Inferred resource at Rock Creek reported at a minimum thickness of 15 feet and an NSR cut-off value of $24.50/ton; Metallurgical recoveries: 88% for silver and 92% for copper. Resources adjusted based on mining restrictions as defined by U.S. Forest Service, Kootenai National Forest in the June 2003 'Record of Decision, Rock Creek Project'.

(28)

Inferred resource at the Libby Exploration Project reported at a minimum thickness of 15 feet and an NSR cut-off value of $24.50/ton NSR; Metallurgical recoveries: 88% for silver and 92% copper. Resources adjusted based on mining restrictions as defined by U.S. Forest Service, Kootenai National Forest, Montana DEQ in December 2015 'Joint Final EIS, Montanore Project' and the February 2016 U.S Forest Service - Kootenai National Forest 'Record of Decision, Montanore Project'.

(29)

Mineral resources at the Rackla-Tiger Project are based on a gold price of $1650/oz, metallurgical recovery of 95% for gold, and cut-off grades of 0.02 oz/ton gold for the open pit portion of the resources and 0.04 oz/ton gold for the underground portions of the resources; US$/CAN$ exchange rate: 1:1.3.

(30)

Mineral resources at the Rackla-Osiris Project are based on a gold price of $1,850/oz, metallurgical recovery of 83% for gold, and cut-off grades of 0.03 oz/ton gold for the open pit portion of the resources and 0.06 oz/ton gold for the underground portions of the resources; US$/CAN$ exchange rate: 1:1.3.

Totals may not represent the sum of parts due to rounding

 

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Anvita M. Patil Vice President - Investor Relations and Treasurer

Cheryl Turner Communications Coordinator

800-HECLA91 (800-432-5291) Investor Relations Email: hmc-info@hecla.com Website: http://www.hecla.com