COEUR D’ALENE, Idaho–(BUSINESS WIRE)– Hecla Mining Company (NYSE:HL) today announced second quarter 2017 financial and operating results.
HIGHLIGHTS (Comparisons to Second Quarter of 2016)
- Secured the San Sebastian mill through 2020.
- Capital expenditures of $24.3 million, a 43% decline.
- Significant improvements in treatment and refining charges for lead, zinc and bulk concentrates in 2017.
- Net loss applicable to common stockholders of $24.2 million, or $0.06 per share, which includes an income tax provision of $16.1 million, reflecting that we have non-deductible losses in the U.S.
- Adjusted net loss applicable to common stockholders of $15.5 million, or $0.04 per share.1
- Sales of $134.3 million.
- Adjusted EBITDA of $48.5 million and net debt/adjusted EBITDA (last 12 months) of 1.3x. 2,3
- Cost of sales and other direct production costs and depreciation, depletion and amortization (“cost of sales”) of $103.1 million.
- The ongoing strike at Lucky Friday has lowered metal production but has improved silver cash cost, after by-product credits, 93% to $0.26 per ounce, the lowest in 7 years. 4
- All in sustaining cost (AISC), after by-product credits, of $9.97 per silver ounce, a 22% decrease. 5
- Cash and cash equivalents and short-term investments of $202 million at June 30.
- Extended the $100 million senior secured revolving credit facility to July 2020.
- Credit rating upgrade by S&P Global Ratings to B from B- with a stable outlook.
“We maintained a strong financial position in the second quarter, with 43% lower capital expenditures and solid operating performance from Greens Creek and San Sebastian, with cash costs of $0.26 and under $10 AISC, both after by-product credits per silver ounce, offsetting Lucky Friday which remains idled due to the strike,” said Phillips S. Baker, Jr., President and CEO. “With the significant exploration discoveries at San Sebastian, we are now expecting to extend the life of that project through 2020. Performance of the three mines continues as planned. Higher grade and lower waste tons moved in the second half of 2017 at Casa Berardi should significantly impact production and cost per ounce.”