Hecla Mining Company Reports Sales Increase To $189.5 Million In Q1

COEUR D'ALENE, ID - Hecla Mining Company President and CEO, Phillip S. Baker said, "The first quarter reflects an inflection point with the strong performance from Greens Creek, achieving full production at the Lucky Friday, and significant improvements in safety, environment, and production from Keno Hill. With this strong start to the year, we are well-positioned to achieve our production and cost guidance for 2024. Silver demand for solar has been growing at a remarkable 17% annual growth rate over the past five years and is projected to continue. In India, buyers long known as being price sensitive, are importing silver in record quantities despite higher silver prices. Solar and India represent more than 35% of world demand and continues to grow. Hecla is the largest U.S. silver producer and is on track to be Canada's largest this year. With silver production growth expected up to 20 million silver ounces by 2026.”

Sales in the first quarter of 2024 increased by 18% to $189.5 million from the prior quarter due to higher sales volumes of all metals produced except gold and higher realized prices for silver and gold, partially offset by lower realized lead and zinc prices. The higher sales volumes are because of resuming production at Lucky Friday, in Idaho. Gross profit increased to $19.2 million, an increase of 179%, with Lucky Friday back in operation. Lucky Friday produced 1.1 million ounces of silver during the quarter following restart of production in January. The mine ramped-up to full production during the quarter. Sales in the first quarter were $35.3 million, and total cost of sales was $27.5 million.

Greens Creek, in Alaska, produced 2.5 million ounces of silver during the quarter, an increase of 10%, while throughput for the quarter averaged 2,552 tons per day (tpd). Gold and lead production were consistent with the prior quarter, while zinc production increased 4%. Sales in the quarter were $97.3 million, a 4% increase due to higher quantities of metals sold (silver, gold, and zinc), and higher realized prices for silver and gold, partially offset by lower realized lead and zinc prices. Total cost of sales was $69.9 million, consistent with the prior quarter.

In the Yukon Territory, Keno Hill ramp-up to production continued and the mine produced 646,312 ounces of silver in the first quarter. Throughput in the quarter averaged 277 tpd, an increase of 29%, partially offset by lower silver grades, which were 26.3 ounces per ton. The Keno Hill operation continues to ramp-up production by focusing on safety and environmental improvements by standardizing operating procedures, installing infrastructure, upgrading equipment, and executing our safety and environmental action plans. Keno Hill's AIFR, one of several improving measures, declined 41% over 2023. While the Company's safety and environmental programs focus on continuous performance improvement, the current action plans with the exception of some long-term infrastructure, are expected to be substantially completed before the end of the year. Sales during the quarter were $10.8 million and decreased due to lower silver ounces sold due to timing.

At Keno Hill, underground definition drilling in the Bermingham Bear Zone continues to intersect high-grade silver mineralization over significant widths and highlights the potential for high-grade silver mineralization in the district. Intercepts within and in the hanging wall of the Footwall Vein have been particularly good, exceeding model expectations.

Casa Berardi, in Quebec, produced 22,004 ounces of gold in the quarter, in line with the prior quarter as a 7% increase in throughput and recoveries were offset by lower grades from the 160 pit. The mill operated at an average of 4,194 tpd during the quarter. Sales were $41.6 million, a 3% decrease due to fewer ounces sold, largely offset by higher realized prices. Total cost of sales was $58.3 million, a 1% decline, primarily attributable to lower labor costs. At Casa Berardi, ongoing efforts continue to evaluate remaining underground stopes and extensions.