Hecla Mining Increased Gold And Silver Production

COEUR D'ALENE, ID - Hecla Mining Company is a leading low-cost U.S. silver producer with operating mines in Alaska and Idaho, and is a growing gold producer with an operating mine in Quebec, Canada. The Company also has exploration and pre-development properties in five world-class silver and gold mining districts in the U.S., Canada, and Mexico, and an exploration office and investments in early-stage silver exploration projects in Canada.

Hecla reported preliminary 2013 production results of 8.9 million ounces of silver and 120,000 ounces of gold. This is an increase of 39% and 116%, respectively, over 2012; Expect 9.5 to 10 million ounces of silver and 180,000 ounces of gold production in 2014.

During the fourth quarter Hecla achieved significant milestones with Greens Creek continuing its strong production, Lucky Friday back to normalized operations and Casa Berardi improving production and costs,  said Phillips S. Baker, Jr., Hecla’s President and CEO.  We look forward to strong, low-cost production from our three mines in 2014, remaining focused on reducing risk, increasing consistency of mine production and extending mine life. We have $212 million in cash at the end of 2013, and plan to spend within Adjusted EBITDA in 2014, which should allow us to maintain our strong financial position.

The Greens Creek Silver Mine in Alaska produced silver at a cash cost, after by-product credits, per silver ounce of $5.15 in the fourth quarter of 2013 and $4.42 for the full year 2013, compared to $3.45 and $2.70 per silver ounce in the fourth quarter of 2012 and full year 2012, respectively. The higher costs in 2013 reflected higher silver production relative to by-product metal production. The mill operated at an average of 2,206 tons per day in 2013, which is the highest daily average since the mine began operations in 1989.

The Lucky Friday mine in Idaho, which re-opened in February 2013 after 14 months of rehabilitation and enhancement, produced silver at a cash cost, after by-product credits, per silver ounce of $13.59 in the fourth quarter and $19.21 for the full year 2013. Costs were higher than anticipated due in part to slower production ramp-up and severe winter weather in December preventing 10 days of production. The mill throughput rate averaged 827 tons per day in the fourth quarter.

The Casa Berardi mine in Quebec, acquired June 1, 2013, produced gold in the fourth quarter at a cash cost, after by-product credits, per gold ounce of $824, compared to $1,155 and $1,067, in the second and third quarters of 2013, respectively, and compared to guidance for the fourth quarter of $950 per gold ounce. For the seven-month period under Hecla ownership, the mine produced gold at a cash cost, after by-product credits, per gold ounce of $951.

The increased gold production and lower costs during the year were due in part to the development of new, higher grade stopes in the 118 and 113 Zones. The mill throughput rate averaged 1,974 tons per day in the fourth quarter.