Hecla Reported Increase In Silver And Gold Production
COEUR D'ALENE, ID - Hecla Mining Company reported silver and gold production results for the fourth quarter and full year 2019 as well as a significant reduction of net debt and an increase in cash position. In 2019, Silver production of 12.6 million ounces, an increase of 22% and gold production of 272,873 ounces, an increase of 4%. The gold production in 2019 was the highest in Hecla’s history; Silver equivalent production of 47.2 million ounces and gold equivalent production of 549,172 ounces; Year-end cash and cash equivalents of approximately $62 million; Net debt reduction of approximately $136 million, or 23%, from the net debt high mid-2019; Generated sufficient free cash flow to fully repay the $50 million drawn from the revolving line of credit at the end of the third quarter; Raised approximately $49 million from issuing 21.4 million shares from the At The Market (“ATM”) facility in the fourth quarter; Exchanged $31 million of debt owed to Resources Québec for 10.7 million shares of common stock and their option to be allocated up to $35 million of a new bond offering; & Union workers at Lucky Friday ratified the collective bargaining agreement - many are expected to return to work.
“2019 marked a year of higher metal production and in the second half of the year, strong cash flow generation and an improved balance sheet,” said Phillips S. Baker, Jr., President and CEO. “While gold & silver prices have increased, Greens Creek’s record silver production combined with the most gold production in Hecla’s history were the primary reasons for the cash flow strength.”
We are pleased that the union has ratified the collective bargaining agreement at Lucky Friday and are expected to return to work. While this has been a challenging time for the mine and the local community, we believe the return of the workforce will help it reach full production by year-end 2020 and help the Silver Valley community.”
The Greens Creek mine in 2019, 9.9 million ounces of silver and 56,624 ounces of gold were produced. For the fourth quarter, 2.7 million ounces of silver and 15,356 ounces of gold were produced. Silver production for 2019 was the highest it has been since Hecla acquired 100% ownership of the mine in 2008. The mill operated at an average of 2,318 tons per day (tpd) in 2019, which was a record.
At the Casa Berardi mine in 2019, 134,409 ounces of gold were produced, including 27,588 ounces from the East Mine Crown Pillar pit. For the fourth quarter, 34,793 ounces of gold were produced including 8,287 ounces from the East Mine Crown Pillar pit. As expected, gold production for the year was lower compared to 2018, which was the highest annual gold production at Casa Berardi since Hecla acquired it in mid-2013. Gold production for the fourth quarter was within 3% of the ounces produced in the fourth quarter of 2018. The mill operated at an average of 3,776 tpd in 2019.
The San Sebastian mine in 2019, 1.9 million ounces of silver and 15,673 ounces of gold were produced. For the fourth quarter, 422,434 ounces of silver and 3,897 ounces of gold were produced. If the Hugh Zone metal production is included, silver equivalent production for the year is the same as 2018. The mill operated at an average of 479 tpd in 2019.
At the Nevada operations in 2019, 66,167 ounces of gold and 181,741 ounces of silver were produced. For the fourth quarter, 20,727 ounces of gold and 21,476 ounces of silver were produced. Ore was processed at an average of 576 tpd.
At the Lucky Friday mine, 625,432 ounces and 208,977 ounces of silver were produced for the year and the fourth quarter, respectively. Limited production and capital improvements, performed by salaried staff, and limited shipments of concentrate occurred in the fourth quarter. The Company anticipates re-staffing of the mine to take place in stages, with a ramp-up to full production levels expected by the end of 2020.
The company’s address is 6500 North Mineral Drive, Suite 200, Coeur d’Alene, ID 83815, (208) 769-4100, www.hecla-mining.com.