Hecla Announces Record Silver Production of 10.9 Million Ounces

 

COEUR D’ALENE, ID - Hecla Mining Company reported record silver production of 10.9 million ounces, a 26% increase compared with 2008. Production records were also established for lead and zinc output with approximately 44,000 tons and 80,000 tons of each produced, respectively. Importantly, record production and improved prices for metals in 2009 significantly increased operating cash flow allowing Hecla to have more than $100 million in cash on hand at year end. This is after repaying $38.3 million of debt during the fourth quarter of 2009. Hecla is now debt free.

Hecla is forecasting approximately 10 to 11 million ounces of silver production in 2010. If metal prices remain at their current levels, the company expects cash costs in 2010 to be below $2.00 per ounce of silver produced.

Hecla Mining Company President and Chief Executive Officer Phillips S. Baker, Jr., said, 2009 was an exceptional year for Hecla with the record quantities of metal produced, increased silver production for the third consecutive year and a cash cost of less than $2.00 per ounce. With the cash generated, we were able to repay our debt early and still have more than $100 million of cash. A new revolving credit facility was also put in place. We expect 2010 to be just as strong with similar production and cash costs. So between the cash on hand, our credit facility and the cash flow we will generate in 2010 and beyond, Hecla is well positioned for growth.

The company’s address is 6500 N. Mineral Drive, Suite 200, Coeur d’Alene, ID 83815, 208.769.4100, fax: 208.769.7612, email: [email protected].