Hecla Mining Company
Hecla Mining Company
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Hecla Mining has had a good Sept 2019 YTD 9-months with all commodities up -- silver 21% better on YTD18 to 9.23Moz, gold up 4% to 198,121oz, lead 14% better to 17,526t and zinc up 1% to 42,847t.
A relatively steady June 2019 qtr (Q2 19) has seen Hecla Mining lift silver production to 3Moz from Q1 19’s 2.9Moz, but with gold slipping to 58,390oz from 60,021oz.
Hecla Mining is expecting more from H2 19 after silver up, gold down in a steady Q2 19
Silver/gold miner Hecla Mining is taking the sword to its US, Canada and Mexico operations, particularly its non-performing Nevada, US, operations, cutting company-wide spending by $US25M this year.
The move will see the Hollister mine in Nevada shut down and 25% of the Nevada workforce laid off, following a heavy investment made in the state in the 1st and 2nd 2019 qtrs.
Hecla Mining’s non-performing Nevada, US, assets will bear the brunt of a $25M cost cutting purge across all the company’s operations. By MBM’s North American correspondent
Silver-gold-lead-zinc miner Hecla Mining’s Mar 2019 qtr (Q1 19) net loss has blown out to $US25.7M from Q4 18’s 23.8M loss, hit by $13.8M losses at Nevada, US, and lower production at Casa Berardi in Quebac, Canada.
The bottom line came despite gross profit up to $3.4M from a $1.26M loss, sales to $152.6M from $136.5M and adjusted EBITDA to $33.4M from $28.1M.
A top performance from Hecla Mining’s flagship Greens Creek mine, in Alaska, US, and a big production jump from strike-riven Lucky Friday, in Idaho, US, has helped the company’s total Mar 2019 qtr (Q1 19) silver production up to 2.9Moz from Q4 18’s 2.7Moz, but with gold falling to 60,021oz from 70,987oz.
Completion of Klondex Mines’ takeover in July 2018, bringing 3 high-grade gold mines in Nevada, US, into the Hecla Mining fold, has had little impact on the company’s bottom line other than reduce the company’s Dec 2018 year (FY/CY18) net loss to $US27.1M from FY/CY17’s $29.07M loss.
The loss was on silver-gold-lead-zinc sales easing to $567.13M from $577.77M, gross profit down to $79M from $152.4M, adjusted EBITDA to $211.9M from $231.9M and cash from operating activities falling to $94.2M from $115.8M.
Despite record FY18 gold production following the mid-2018 Klondex takeover, Hecla’s silver production has fallen over 2Moz, albeit cutting its loss $2M to $27M
The recent acquisition of Klondex Mines and its 3 high-grade gold mines in Nevada, US, but still hampered by the long-running Lucky Friday mine strike in Idaho, US, has seen Hecla Mining post record Dec 2018 year (FY/CY18) gold production of 262,103oz, up 13% on 2017.
However, silver production fell 17% to 10.4Moz, with lead output down 12% to 20,091t, but zinc up 2% to 56,023t.