Hecla Reports Second Quarter Production Results

COEUR D'ALENE, ID - Hecla Mining Company reported preliminary production results for the second quarter 2015 and updated annual production estimations.

HIGHLIGHTS (quarterly comparisons to Q2 2014): Estimated company-wide silver production for 2015 increased to 10.5-11.0 million ounces from 10.5 million ounces; Silver production of 2.48 million ounces, a 2% decrease; Gold production of 44,692 ounces, a 3% increase; Silver equivalent production of 8.7 million ounces, the same as Q2 2014.2; Lead production decreased 7% to 9,525 tons and zinc production increased 1% to 17,516 tons; Cash and cash equivalents of approximately $190 million as of June 30, 2015; Hecla has secured the third party-owned Velardeûa mill to process ore from its high-grade San Sebastian project in Mexico.

Higher grades and recoveries at Greens Creek during the quarter continued to improve the mines already strong performance, said Phillips S. Baker, Jr., Hecla’s President and CEO. For a mine producing over 7 million ounces of silver a year, an 8% increase in silver recovery is a significant value driver, especially when coupled with the higher grades. We expect these recoveries and grades to continue at Greens Creek through the remainder of the year.

Greens Creek

Greens Creek’s second quarter production of 1,856,125 million ounces of silver exceeded the second quarter of 2014 by 10%, while gold production of 13,753 ounces was 8% lower. The higher silver production was a result of higher recoveries and grade, partially offset by slightly lower tonnage. Silver recoveries increased 8%, or 5.6 percentage points, to 75.4% over the prior year period due to changes in the fourth quarter modifying the flotation circuit to more efficiently scalp additional lead concentrate directly to final concentrate, and by introducing CO2 for pH control in the lead flotation circuit in April 2015. The reduction in gold production was the result of lower tonnage and grade partially offset by recoveries that increased due to the previously described plant improvements. The mill operated at an average of 2,194 tons per day (tpd) in the second quarter.