Hecla Mining Company has added a news release to its Investor Relations website. Title: Hecla Reports Third Quarter 2012 Results and Expected 2013 Production from Lucky Friday Mine
Date(s): 6-Nov-2012 8:01 AM
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For the Period Ended September 30, 2012
COEUR D'ALENE, Idaho--(BUSINESS WIRE)--Nov. 6, 2012-- Hecla Mining Company (NYSE:HL) today announced a third quarter net loss applicable to common shareholders of $1.0 million, or $0.00 per basic share, and earnings after adjustments applicable to common shareholders of $3.2 million, or $0.01 per basic share. Third quarter silver production was up 19% from the previous quarter to 1.6 million ounces at a cash cost of $3.52 per ounce, net of by-products. Operating cash flow for the quarter was $35.2 million.
THIRD QUARTER 2012 HIGHLIGHTS
Silver production of 1.6 million ounces, up 19% from the previous quarter, at a total cash cost (a non-GAAP measure) of $3.52 per ounce, net of by-products.
Operating cash flow of $35.2 million.
Net loss applicable to common shareholders of $1.0 million, or $0.00 per basic share, due primarily to non-cash mark-to-market adjustments related to the Company's long-term base metal hedging program.
Earnings after adjustments applicable to common shareholders (a non-GAAP measure) of $3.2 million, or $0.01 per basic share.
Lucky Friday rehabilitation work progresses to approximately 5700 level with production expected to resume in Q1/2013. Full-year 2013 silver production expected at more than 2 million ounces.
Cash and cash equivalents of $232 million at September 30, 2012.
Declaration of common stock dividend of $0.0225 per share, payable on or about December 5 to shareholders of record on November 27.
Drilled very high-grade mineralization over exceptional widths at Greens Creek (Alaska).
At San Sebastian, drilling of the Middle Vein has defined a very high-grade, gold-silver vein which is approximately 800 feet from the Hugh Zone.
"We are pleased to report that shaft rehabilitation at the Lucky Friday mine advanced on schedule during the third quarter, and we anticipate being in production in the first quarter of 2013 and ramping up through the year to more than 2 million ounces by year end," said Hecla's President and Chief Executive Officer Phillips S. Baker, Jr. "Work crews have completed the Silver Shaft rehabilitation work to approximately the 5700 level, which is 400 feet from the shaft bottom. Therefore, we have recalled all employees and begun preparatory work for sinking of the #4 Shaft."
"Greens Creek delivered 19% higher silver production than the previous quarter, as a result of increases in ore throughput and silver grade. Cash costs increased to $3.52 per ounce due to higher silver grades relative to the by-product metals resulting in lower by-product credit per ounce of silver produced. Meanwhile, our record capital investment program continued at Greens Creek, preparing the mine for many more years of anticipated low-cost production and reserve growth," Mr. Baker said.
"Quarterly operating cash flow was $35.2 million, helped by higher production at Greens Creek and strong silver prices. With our realized silver prices averaging $35.00 per ounce, Hecla will pay the silver-linked dividend in addition to our regular common stock dividend.
"Meanwhile, our expanded pre-development and exploration programs continued to deliver impressive results, including ramp development at the historic Bulldog mine in Colorado, and very high-grade intercepts at all four properties. We are rapidly advancing toward our targeted goal of 15 million ounces of Company-wide silver production by 2017. Underpinning this growth is our very strong balance sheet, with $232 million in cash and no significant debt," Mr. Baker added.
FINANCIAL OVERVIEW
Net loss applicable to common shareholders for the third quarter was $1.0 million, or $0.00 per basic share, compared to net income of $55.8 million, or $0.20 per basic share for the same period a year ago, and was impacted by the following items:
Temporary suspension of mining activities at the Lucky Friday mine, where production has been suspended since January 2012, but which is expected to resume production in the first quarter of 2013. There were $6.1 million in suspension-related costs at the Lucky Friday in the third quarter, including $1.5 million of depreciation.
Lower average silver and base metals prices compared to the same period a year ago.
Exploration and pre-development expense increased to $17.1 million in the third quarter from $11.6 million in the same period in 2011.
A $9.1 million non-cash loss for mark-to-market adjustments on base metal derivative contracts for the third quarter, compared to a $40.4 million gain for the same period in 2011. A summary of the quantities of base metals committed under financially settled forward contracts on September 30, 2012, is included on page 4 of this release.
A $14,000 tax provision, compared to $27.3 million in the same period in 2011, was the result of higher pre-tax income in 2011. The effective income tax rate is approximately 36% in 2012 compared to 35% in the same period in 2011.
Gains of $5.9 million on provisional price adjustments compared to losses of $3.6 million in the same period of 2011.
|
|
Third Quarter Ended
|
|
Nine Months Ended
|
HIGHLIGHTS
|
|
September 30, 2012
|
|
September 30, 2011
|
|
September 30, 2012
|
|
September 30, 2011
|
FINANCIAL DATA
|
|
|
|
|
|
|
|
|
Sales (000)
|
|
$
|
81,871
|
|
|
$
|
120,543
|
|
|
$
|
240,043
|
|
|
$
|
374,767
|
Gross profit (000)
|
|
$
|
37,309
|
|
|
$
|
67,805
|
|
|
$
|
109,479
|
|
|
$
|
215,169
|
Income (loss) applicable to common shareholders (000)
|
|
$
|
(1,023
|
)
|
|
$
|
55,783
|
|
|
$
|
13,797
|
|
|
$
|
132,181
|
Basic income per common share
|
|
$
|
0.00
|
|
|
$
|
0.20
|
|
|
$
|
0.05
|
|
|
$
|
0.47
|
Diluted income per common share
|
|
$
|
0.00
|
|
|
$
|
0.19
|
|
|
$
|
0.05
|
|
|
$
|
0.45
|
Net income (loss) (000)
|
|
$
|
(885
|
)
|
|
$
|
55,921
|
|
|
$
|
14,211
|
|
|
$
|
132,595
|
Cash provided by operating activities (000)
|
|
$
|
35,248
|
|
|
$
|
60,721
|
|
|
$
|
66,488
|
|
|
$
|
187,938
|
Operating cash flow was $35.2 million during the third quarter of 2012.
Capital expenditures (including non-cash capital lease additions) at the operations totaled $14.5 million at Lucky Friday and $14.2 million at Greens Creek. Full-year capital expenditures are expected to be approximately $135.0 million in 2012, primarily due to projects at Greens Creek.
Pre-development expenditures totaled $5.4 million in the third quarter. Pre-development expenditures for the full year 2012 are expected to be approximately $23.0 million.
Exploration expenditures for the third quarter of 2012 were $11.7 million. Exploration expenditures for the full-year 2012 are expected to be approximately $30.0 million.
METALS PRICES
Average realized silver prices in the third quarter were $35.00 per ounce, compared with average realized prices in the third quarter of 2011 of $37.02 per ounce.
|
|
|
Third Quarter Ended
|
|
Nine Months Ended
|
|
|
|
September 30, 2012
|
|
September 30, 2011
|
|
September 30, 2012
|
|
September 30, 2011
|
AVERAGE METAL PRICES
|
|
|
|
|
|
|
|
|
Silver -
|
London PM Fix ($/oz)
|
|
$
|
29.91
|
|
|
$
|
38.79
|
|
|
$
|
30.65
|
|
|
$
|
36.21
|
|
Realized price per ounce
|
|
$
|
35.00
|
|
|
$
|
37.02
|
|
|
$
|
33.27
|
|
|
$
|
36.45
|
Gold -
|
London PM Fix ($/oz)
|
|
$
|
1,655
|
|
|
$
|
1,700
|
|
|
$
|
1,652
|
|
|
$
|
1,530
|
|
Realized price per ounce
|
|
$
|
1,754
|
|
|
$
|
1,799
|
|
|
$
|
1,700
|
|
|
$
|
1,578
|
Lead -
|
LME Cash ($/pound)
|
|
$
|
0.90
|
|
|
$
|
1.12
|
|
|
$
|
0.91
|
|
|
$
|
1.15
|
|
Realized price per pound
|
|
$
|
0.94
|
|
|
$
|
1.01
|
|
|
$
|
0.94
|
|
|
$
|
1.11
|
Zinc -
|
LME Cash ($/pound)
|
|
$
|
0.86
|
|
|
$
|
1.01
|
|
|
$
|
0.88
|
|
|
$
|
1.04
|
|
Realized price per pound
|
|
$
|
0.90
|
|
|
$
|
1.04
|
|
|
$
|
0.90
|
|
|
$
|
1.05
|
Base Metals Forward Sales Contracts
The following table summarizes the quantities of base metals committed under financially settled forward sales contracts at September 30, 2012:
|
|
Metric Tonnes Under Contract
|
|
Average Price per Pound
|
|
|
Zinc
|
|
|
Lead
|
|
Zinc
|
|
|
Lead
|
Contracts on provisional sales
|
|
|
|
|
|
|
|
|
|
|
2012 settlements
|
|
8,525
|
|
|
3,400
|
|
|
$
|
0.88
|
|
|
$
|
0.96
|
2013 settlements
|
|
2,200
|
|
|
--
|
|
|
$
|
0.97
|
|
|
N/A
|
Contracts on forecasted sales
|
|
|
|
|
|
|
|
|
|
|
2012 settlements
|
|
--
|
|
|
600
|
|
|
N/A
|
|
|
$
|
1.12
|
2013 settlements
|
|
10,250
|
|
|
16,850
|
|
|
$
|
1.06
|
|
|
$
|
1.12
|
OPERATIONS OVERVIEW
Average third quarter silver cash cost was $3.52 per ounce, net of by-products, compared to $0.67 per ounce in the same period in 2011. The following table provides the production summary on a consolidated basis for the third quarter and nine months ended September 30, 2012 and 2011:
|
|
|
Third Quarter Ended
|
|
Nine Months Ended
|
|
|
|
September 30, 2012
|
|
September 30, 2011
|
|
September 30, 2012
|
|
September 30, 2011
|
PRODUCTION SUMMARY
|
|
|
|
|
|
|
|
|
Silver -
|
Ounces produced
|
|
|
1,619,110
|
|
2,287,262
|
|
4,312,907
|
|
6,992,453
|
|
Payable ounces sold
|
|
|
1,331,139
|
|
1,954,120
|
|
3,892,090
|
|
6,196,269
|
Gold -
|
Ounces produced
|
|
|
14,024
|
|
14,217
|
|
39,933
|
|
43,073
|
|
Payable ounces sold
|
|
|
10,193
|
|
10,558
|
|
32,305
|
|
33,892
|
Lead -
|
Tons produced
|
|
|
5,499
|
|
11,226
|
|
15,226
|
|
30,956
|
|
Payable tons sold
|
|
|
3,990
|
|
9,218
|
|
11,788
|
|
26,004
|
Zinc -
|
Tons produced
|
|
|
16,649
|
|
19,316
|
|
48,665
|
|
55,970
|
|
Payable tons sold
|
|
|
12,342
|
|
11,804
|
|
38,312
|
|
37,987
|
Total cash cost per ounce of silver produced (1)
|
|
$
|
3.52
|
|
$
|
0.67
|
|
$
|
2.34
|
|
$
|
0.75
|
(1) See the attached schedule for a reconciliation to GAAP.
Greens Creek mine - Alaska
Silver production at Greens Creek was 1.6 million ounces in the third quarter of 2012, compared to 1.4 million ounces in the same period in 2011. Third quarter silver cash cost was $3.52 per ounce, net of by-products, compared to a negative $2.98 per ounce in the same period in 2011, due in part to lower average base metals prices. Mining costs per ton were up by 23% and milling costs were 19% lower in the third quarter, as compared to the same period in 2011. The higher mining costs were primarily due to the increased use of contract miners, and the lower milling costs resulted from higher mill throughput and the availability of more hydroelectric power.
During the first nine months of 2012, production totaled 4.3 million ounces of silver at an average cash cost of $2.34 per ounce, net of by-products.
Greens Creek is expected to produce more than 6 million ounces of silver in 2012.
Lucky Friday mine - Idaho
At the Lucky Friday mine, the Silver Shaft rehabilitation is complete to approximately the 5700 level. Concurrent with the rehabilitation, the shaft is being upgraded for potential future capacity increases. Complete rehabilitation to the bottom of the shaft is expected by the end of year with production expected to resume in the first quarter of 2013. Also, at the 5900 level, a bypass is being developed around an area impacted by a rock burst in December 2011.
We have recalled all employees necessary to reach full production. All recalled employees have received safety training, including new techniques in risk assessment and accident prevention designed to improve safe work practices.
In addition, we have begun preparations to resume work in the first quarter on the #4 Shaft project. To date, $90 million has been invested on the estimated $200 million #4 Shaft project, which is planned to access extensions to reserves, resources and additional exploration targets. The project is expected to be completed in early 2016.
Care-and-maintenance costs incurred at the Lucky Friday totaled $6.1 million for the third quarter of 2012, including depreciation of $1.5 million.
Pre-Development
Pre-development expenditures for the third quarter of 2012 were $5.4 million at the Company's three pre-development projects in Colorado, Idaho and Mexico.
At the San Juan Silver project, the new 2,800 foot decline at the historic Bulldog mine has begun and has now advanced over 100 feet. This decline will provide access to a resource of 37 million ounces of silver and underground exploration platforms to expand these resources. Support facilities such as the maintenance and shotcrete shops are completed and operational. Prior to the Company acquiring 100% interest in the Bulldog, it had historic production of approximately 25 million ounces of silver before it was closed by the previous owner in 1985 due to then low silver prices.
At the Star project, rehabilitation of the main level and the secondary escape ramp to surface are complete as well as development of a 750-foot exploration drift. The #5 Shaft rehab is complete and installation of the hoist has begun. Exploration drilling has begun from the new drift on the southeast extension of the Noonday and Morning Veins.
At San Sebastian, with the discovery of the Middle Vein mineralization, economic analysis has been delayed until the first quarter of 2013 to determine the Hugh Zone access. Hydrological studies are complete and initial metallurgy and mine design have begun on the Andrea.
Exploration
Exploration expenditures for the third quarter were $11.7 million, focused on all four properties.
At San Sebastian, drilling moved from the Andrea where resources are being updated, to the Hugh Zone and approximately 800 feet further north to the Middle Vein to follow-up on limited drilling from six years ago. Results at the Middle Vein have been very good, with high-grade intersections such as 0.36 opt gold and 39.2 opt silver over 7 feet. Two drills are currently active and have defined mineralization for over 3,000 feet of strike and from surface to at least 1,000 feet in depth. Drilling also continues to expand the Hugh Zone updip and to the northwest in parallel with the Middle Vein. An extensive list of assay intersections is provided in tables at the end of this press release.
At Greens Creek, underground drilling continues to extend ore-grade mineralization along trend of the Southwest Bench, 200 South, Gallagher, 5250 and 9a Zones, with exceptional widths and grades, such as 70 feet of 0.3 opt gold, 13.8 opt silver and 21% combined zinc and lead at the 200 South; and 73 feet of 0.17 opt gold, 17.58 opt silver and 23.7% combined zinc and lead at the Southwest Bench. In 2013, modeling of these intersections could result in significant additions to the resource. Surface drilling has successfully identified mineralization at Killer Creek 1.5 miles west-northwest of the mine that contains copper-rich veins and bands and one mile west of the mine at West Gallagher that contains pyrite mud intervals that have carried anomalous base and precious metal grades in the past. Killer Creek and West Gallagher will be priority targets for the 2013 summer program.
In the Silver Valley at the Star, drilling along strike to the southeast from known mineralization has produced good results with the best grading 29.1 opt silver and 8.9% combined lead and zinc over 5 feet. Drilling from underground and surface have confirmed progressively higher silver grades to the southeast where the mineralization trend is open. For 2013, more drilling is planned from the recently completed exploration drift and also from the surface.
At San Juan Silver in Creede, Colorado, drilling in the Equity ramp continues to have high grades on both the Equity and Amethyst Veins. Final drilling on the Equity structure includes an intersection of 0.17 opt gold and 22.3 opt silver over 10.1 feet. The mineralized zones at the Equity appear to be high grade with strike lengths from 100 to 300 feet but with significant down-plunge potential. Two underground drills are currently focused on the north-south trending Amethyst structure. Initial drilling has defined the upper limits of two distinct, steeply plunging mineralized vein trends along the Amethyst structural zone and include the intersection 0.27 opt gold and 33.4 opt silver over 4.7 feet.
CONFERENCE CALL AND WEBCAST
A conference call and webcast will be held Tuesday, November 6, at 1:00 p.m. Eastern Time to discuss these results. You may join the conference call by dialing toll-free 1-866-510-0705 or 1-617-597-5363 internationally. The participant passcode is HECLA. Hecla's live and archived webcast can be accessed at www.hecla-mining.com under Investors or via Thomson StreetEvents Network.
ABOUT HECLA
Hecla Mining Company is among the largest and lowest cash cost silver producers in the U.S. The company has two operating mines, as well as exploration properties in four world-class silver mining districts in the U.S. and Mexico.
Cautionary Statements
Statements made which are not historical facts, such as anticipated payments, litigation outcome (including settlement negotiations), production, sales of assets, exploration results and plans, costs, and prices or sales performance are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "may," "will," "should," "expects," "intends," "projects," "believes," "estimates," "targets," "anticipates" and similar expressions are used to identify these forward-looking statements. Forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from those projected, anticipated, expected or implied. These risks and uncertainties include, but are not limited to, metals price volatility, volatility of metals production and costs, litigation, regulatory and environmental risks, operating risks, project development risks, political risks, labor issues, ability to raise financing and exploration risks and results. Refer to the company's Form 10-K and 10-Q reports for a more detailed discussion of factors that may impact expected future results. The company undertakes no obligation and has no intention of updating forward-looking statements other than as may be required by law.
Cautionary Statements to Investors on Reserves and Resources
The United States Securities and Exchange Commission permits mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms on this release, such as "resource," "other resources," and "mineralized materials" that the SEC guidelines strictly prohibit us from including in our filings with the SEC. U.S. investors are urged to consider closely the disclosure in our Form 10-K and Form 10-Q. You can review and obtain copies of these filings from the SEC's website at www.sec.gov.
HECLA MINING COMPANY
|
Condensed Consolidated Statements of Income
|
(dollars and shares in thousands, except per share amounts - unaudited)
|
|
|
|
|
|
|
|
Third Quarter Ended
|
|
Nine Months Ended
|
|
|
September 30, 2012
|
|
September 30, 2011
|
|
September 30, 2012
|
|
September 30, 2011
|
Sales of products
|
|
$
|
81,871
|
|
|
$
|
120,543
|
|
|
$
|
240,043
|
|
|
$
|
374,767
|
|
Cost of sales and other direct production costs
|
|
32,961
|
|
|
41,639
|
|
|
99,423
|
|
|
125,033
|
|
Depreciation, depletion and amortization
|
|
11,601
|
|
|
11,099
|
|
|
31,141
|
|
|
34,565
|
|
|
|
44,562
|
|
|
52,738
|
|
|
130,564
|
|
|
159,598
|
|
Gross profit
|
|
37,309
|
|
|
67,805
|
|
|
109,479
|
|
|
215,169
|
|
|
|
|
|
|
|
|
|
|
Other operating expenses:
|
|
|
|
|
|
|
|
|
General and administrative
|
|
5,695
|
|
|
5,559
|
|
|
15,723
|
|
|
14,808
|
|
Exploration
|
|
11,722
|
|
|
9,872
|
|
|
24,479
|
|
|
19,012
|
|
Pre-development
|
|
5,409
|
|
|
1,752
|
|
|
12,246
|
|
|
1,752
|
|
Other operating expense
|
|
736
|
|
|
1,612
|
|
|
3,285
|
|
|
5,699
|
|
Provision (credit) for closed operations and reclamation
|
|
(1,093
|
)
|
|
5,521
|
|
|
3,320
|
|
|
7,883
|
|
Lucky Friday suspension-related costs
|
|
6,114
|
|
|
--
|
|
|
18,745
|
|
|
--
|
|
|
|
28,583
|
|
|
24,316
|
|
|
77,798
|
|
|
49,154
|
|
Income (loss) from operations
|
|
8,726
|
|
|
43,489
|
|
|
31,681
|
|
|
166,015
|
|
Other income (expense):
|
|
|
|
|
|
|
|
|
Gain (loss) on derivative contracts
|
|
(9,053
|
)
|
|
40,382
|
|
|
(8,113
|
)
|
|
38,907
|
|
Interest and other income (loss)
|
|
47
|
|
|
(214
|
)
|
|
228
|
|
|
520
|
|
Interest expense
|
|
(591
|
)
|
|
(411
|
)
|
|
(1,563
|
)
|
|
(2,384
|
)
|
|
|
(9,597
|
)
|
|
39,757
|
|
|
(9,448
|
)
|
|
37,043
|
|
Income (loss) before income taxes
|
|
(871
|
)
|
|
83,246
|
|
|
22,233
|
|
|
203,058
|
|
Income tax provision
|
|
(14
|
)
|
|
(27,325
|
)
|
|
(8,022
|
)
|
|
(70,463
|
)
|
Net income (loss)
|
|
(885
|
)
|
|
55,921
|
|
|
14,211
|
|
|
132,595
|
|
Preferred stock dividends
|
|
(138
|
)
|
|
(138
|
)
|
|
(414
|
)
|
|
(414
|
)
|
Income (loss) applicable to common shareholders
|
|
$
|
(1,023
|
)
|
|
$
|
55,783
|
|
|
$
|
13,797
|
|
|
$
|
132,181
|
|
Basic income (loss) per common share after preferred dividends
|
|
$
|
0.00
|
|
|
$
|
0.20
|
|
|
$
|
0.05
|
|
|
$
|
0.47
|
|
Diluted income (loss) per common share after preferred dividends
|
|
$
|
0.00
|
|
|
$
|
0.19
|
|
|
$
|
0.05
|
|
|
$
|
0.45
|
|
Weighted average number of common shares outstanding - basic
|
|
285,492
|
|
|
279,541
|
|
|
285,400
|
|
|
279,067
|
|
Weighted average number of common shares outstanding - diluted
|
|
285,492
|
|
|
295,000
|
|
|
296,739
|
|
|
295,739
|
|
HECLA MINING COMPANY
|
Condensed Consolidated Balance Sheets
|
(dollars and share in thousands - unaudited)
|
|
|
|
|
|
|
|
September 30, 2012
|
|
December 31, 2011
|
ASSETS
|
|
|
|
|
Current assets:
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
232,194
|
|
|
$
|
266,463
|
|
Accounts receivable:
|
|
|
|
|
Trade
|
|
21,991
|
|
|
10,996
|
|
Other, net
|
|
7,827
|
|
|
9,313
|
|
Inventories
|
|
25,170
|
|
|
26,195
|
|
Current deferred income taxes
|
|
31,537
|
|
|
27,810
|
|
Other current assets
|
|
12,230
|
|
|
21,967
|
|
Total current assets
|
|
330,949
|
|
|
362,744
|
|
Non-current investments
|
|
9,023
|
|
|
3,923
|
|
Non-current restricted cash and investments
|
|
866
|
|
|
866
|
|
Properties, plants, equipment and mineral interests, net
|
|
973,586
|
|
|
923,212
|
|
Non-current deferred income taxes
|
|
86,324
|
|
|
88,028
|
|
Other non-current assets and deferred charges
|
|
2,855
|
|
|
17,317
|
|
Total assets
|
|
$
|
1,403,603
|
|
|
$
|
1,396,090
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
Current liabilities:
|
|
|
|
|
Accounts payable and accrued liabilities
|
|
$
|
39,652
|
|
|
$
|
37,831
|
|
Accrued payroll and related benefits
|
|
10,124
|
|
|
12,878
|
|
Accrued taxes
|
|
9,743
|
|
|
10,354
|
|
Current portion of capital leases
|
|
4,654
|
|
|
4,005
|
|
Current portion of accrued reclamation and closure costs
|
|
34,146
|
|
|
42,248
|
|
Total current liabilities
|
|
98,319
|
|
|
107,316
|
|
Capital leases
|
|
10,163
|
|
|
6,265
|
|
Accrued reclamation and closure costs
|
|
113,928
|
|
|
111,563
|
|
Other noncurrent liabilities
|
|
33,905
|
|
|
30,833
|
|
Total liabilities
|
|
256,315
|
|
|
255,977
|
|
|
|
|
|
|
SHAREHOLDERS' EQUITY
|
|
|
|
|
Preferred stock
|
|
39
|
|
|
39
|
|
Common stock
|
|
71,496
|
|
|
71,420
|
|
Capital surplus
|
|
1,217,461
|
|
|
1,215,229
|
|
Accumulated deficit
|
|
(117,471
|
)
|
|
(120,557
|
)
|
Accumulated other comprehensive loss
|
|
(21,219
|
)
|
|
(23,498
|
)
|
Treasury stock
|
|
(3,018
|
)
|
|
(2,520
|
)
|
Total shareholders' equity
|
|
1,147,288
|
|
|
1,140,113
|
|
Total liabilities and shareholders' equity
|
|
$
|
1,403,603
|
|
|
$
|
1,396,090
|
|
Common shares outstanding
|
|
285,487
|
|
|
285,290
|
|
HECLA MINING COMPANY
|
Condensed Consolidated Statements of Cash Flows
|
(dollars in thousands - unaudited)
|
|
|
|
|
|
Nine Months Ended
|
|
|
September 30, 2012
|
|
September 30, 2011
|
OPERATING ACTIVITIES
|
|
|
|
|
Net income
|
|
$
|
14,211
|
|
|
$
|
132,595
|
|
Non-cash elements included in net income:
|
|
|
|
|
Depreciation, depletion and amortization
|
|
36,042
|
|
|
34,769
|
|
Gain on sale of investments
|
|
--
|
|
|
(611
|
)
|
Loss on disposition of properties, plants, equipment and mineral interests
|
|
359
|
|
|
--
|
|
Provision for reclamation and closure costs
|
|
3,937
|
|
|
832
|
|
Stock compensation
|
|
2,296
|
|
|
1,497
|
|
Deferred income taxes
|
|
(2,023
|
)
|
|
60,790
|
|
Amortization of loan origination fees
|
|
324
|
|
|
498
|
|
(Gain) loss on derivative contracts
|
|
24,748
|
|
|
(56,512
|
)
|
Other non-cash charges, net
|
|
901
|
|
|
932
|
|
Change in assets and liabilities:
|
|
|
|
|
Accounts receivable
|
|
(9,508
|
)
|
|
7,745
|
|
Inventories
|
|
1,025
|
|
|
(6,608
|
)
|
Other current and non-current assets
|
|
(417
|
)
|
|
373
|
|
Accounts payable and accrued liabilities
|
|
4,561
|
|
|
17,233
|
|
Accrued payroll and related benefits
|
|
(2,754
|
)
|
|
581
|
|
Accrued taxes
|
|
(611
|
)
|
|
(6,276
|
)
|
Accrued reclamation and closure costs and other non-current liabilities
|
|
(6,603
|
)
|
|
100
|
|
Cash provided by operating activities
|
|
66,488
|
|
|
187,938
|
|
|
|
|
|
|
INVESTING ACTIVITIES
|
|
|
|
|
Additions to properties, plants, equipment and mineral interests
|
|
(81,318
|
)
|
|
(64,381
|
)
|
Proceeds from sale of investments
|
|
--
|
|
|
1,366
|
|
Proceeds from disposition of properties, plants and equipment
|
|
744
|
|
|
113
|
|
Purchases of investments
|
|
(3,261
|
)
|
|
(3,200
|
)
|
Changes in restricted cash and investment balances
|
|
--
|
|
|
9,388
|
|
Net cash used in investing activities
|
|
(83,835
|
)
|
|
(56,714
|
)
|
|
|
|
|
|
FINANCING ACTIVITIES
|
|
|
|
|
Proceeds from exercise of stock options and warrants
|
|
--
|
|
|
5,108
|
|
Acquisition of treasury shares
|
|
(497
|
)
|
|
(469
|
)
|
Dividends paid to common shareholders
|
|
(10,700
|
)
|
|
--
|
|
Dividends paid to preferred shareholders
|
|
(414
|
)
|
|
(3,684
|
)
|
Loan origination fees
|
|
(750
|
)
|
|
--
|
|
Repayments of capital leases
|
|
(4,561
|
)
|
|
(2,042
|
)
|
Net cash used in financing activities
|
|
(16,922
|
)
|
|
(1,087
|
)
|
Net increase (decrease) in cash and cash equivalents
|
|
(34,269
|
)
|
|
130,137
|
|
Cash and cash equivalents at beginning of period
|
|
266,463
|
|
|
283,606
|
|
Cash and cash equivalents at end of period
|
|
$
|
232,194
|
|
|
$
|
413,743
|
|
HECLA MINING COMPANY
|
Production Data
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
September 30, 2012
|
|
September 30, 2011
|
|
September 30, 2012
|
|
September 30, 2011
|
GREENS CREEK UNIT
|
|
|
|
|
|
|
|
|
Tons of ore milled
|
|
210,802
|
|
|
200,961
|
|
|
573,750
|
|
|
580,211
|
|
Mining cost per ton
|
|
$
|
61.33
|
|
|
$
|
49.86
|
|
|
$
|
62.08
|
|
|
$
|
48.80
|
|
Milling cost per ton
|
|
$
|
27.04
|
|
|
$
|
33.58
|
|
|
$
|
29.01
|
|
|
$
|
31.11
|
|
Ore grade milled - Silver (oz./ton)
|
|
10.56
|
|
|
9.64
|
|
|
10.37
|
|
|
10.85
|
|
Ore grade milled - Gold (oz./ton)
|
|
0.11
|
|
|
0.12
|
|
|
0.12
|
|
|
0.12
|
|
Ore grade milled - Lead (%)
|
|
3.40
|
|
|
3.74
|
|
|
3.49
|
|
|
3.58
|
|
Ore grade milled - Zinc (%)
|
|
9.12
|
|
|
9.99
|
|
|
9.74
|
|
|
9.90
|
|
Silver produced (oz.)
|
|
1,619,110
|
|
|
1,350,609
|
|
|
4,312,907
|
|
|
4,507,727
|
|
Gold produced (oz.)
|
|
14,024
|
|
|
14,217
|
|
|
39,933
|
|
|
43,073
|
|
Lead produced (tons)
|
|
5,499
|
|
|
5,799
|
|
|
15,226
|
|
|
16,007
|
|
Zinc produced (tons)
|
|
16,649
|
|
|
17,318
|
|
|
48,665
|
|
|
49,913
|
|
Total cash cost per ounce of silver produced (1)
|
|
$
|
3.52
|
|
|
$
|
(2.98
|
)
|
|
$
|
2.34
|
|
|
$
|
(2.04
|
)
|
Capital additions (in thousands)
|
|
$
|
14,195
|
|
|
$
|
11,921
|
|
|
$
|
44,248
|
|
|
$
|
29,106
|
|
LUCKY FRIDAY UNIT
|
|
|
|
|
|
|
|
|
Tons of ore processed
|
|
--
|
|
|
84,531
|
|
|
--
|
|
|
249,034
|
|
Mining cost per ton
|
|
$
|
--
|
|
|
$
|
58.54
|
|
|
$
|
--
|
|
|
$
|
59.39
|
|
Milling cost per ton
|
|
$
|
--
|
|
|
$
|
16.26
|
|
|
$
|
--
|
|
|
$
|
16.20
|
|
Ore grade milled - Silver (oz./ton)
|
|
--
|
|
|
11.74
|
|
|
--
|
|
|
10.68
|
|
Ore grade milled - Lead (%)
|
|
--
|
|
|
6.84
|
|
|
--
|
|
|
6.46
|
|
Ore grade milled - Zinc (%)
|
|
--
|
|
|
2.74
|
|
|
--
|
|
|
2.81
|
|
Silver produced (oz.)
|
|
--
|
|
|
936,652
|
|
|
--
|
|
|
2,484,725
|
|
Lead produced (tons)
|
|
--
|
|
|
5,427
|
|
|
--
|
|
|
14,949
|
|
Zinc produced (tons)
|
|
--
|
|
|
1,999
|
|
|
--
|
|
|
6,058
|
|
Total cash cost per ounce of silver produced (1)
|
|
$
|
--
|
|
|
$
|
5.94
|
|
|
$
|
--
|
|
|
$
|
5.82
|
|
Capital additions (in thousands)
|
|
$
|
14,548
|
|
|
$
|
16,524
|
|
|
$
|
37,285
|
|
|
$
|
45,026
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Total cash costs per ounce of silver represents a non-U.S. Generally Accepted Accounting Principles (GAAP) measurement. A reconciliation of total cash costs to cost of sales and other direct production costs and depreciation, depletion and amortization (GAAP) can be found in the cash costs per ounce reconciliation section of this news release. Gold, lead and zinc produced have been treated as by-product credits in calculating silver costs per ounce.
|
Non-GAAP Measures
(Unaudited)
This release contains references to a non-GAAP measure of cash costs per ounce. Cash costs per ounce of silver represent non-U.S. Generally Accepted Accounting Principles (GAAP) measurements that the Company believes provide management and investors an indication of net cash flow. Management also uses this measurement for the comparative monitoring of performance of mining operations period-to-period from a cash flow perspective. "Total cash cost per ounce" is a measure developed by gold companies and used by silver companies in an effort to provide a comparable standard; however, there can be no assurance that our reporting of this non-GAAP measure is similar to that reported by other mining companies. Cost of sales and other direct production costs and depreciation, depletion and amortization was the most comparable financial measures calculated in accordance with GAAP to total cash costs.
The following table calculates cash cost per ounce (in thousands, except per-ounce amounts):
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
RECONCILIATION TO GAAP, ALL OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total cash costs
|
|
$
|
5,701
|
|
|
$
|
1,533
|
|
|
$
|
10,087
|
|
|
$
|
5,257
|
|
Divided by ounces produced
|
|
|
1,619
|
|
|
|
2,288
|
|
|
|
4,313
|
|
|
|
6,993
|
|
Total cash cost per ounce produced
|
|
$
|
3.52
|
|
|
$
|
0.67
|
|
|
$
|
2.34
|
|
|
$
|
0.75
|
|
Reconciliation to GAAP:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total cash costs
|
|
$
|
5,701
|
|
|
$
|
1,533
|
|
|
$
|
10,087
|
|
|
$
|
5,257
|
|
Depreciation, depletion and amortization
|
|
|
11,601
|
|
|
|
11,099
|
|
|
|
31,141
|
|
|
|
34,565
|
|
Treatment costs
|
|
|
(18,351
|
)
|
|
|
(26,078
|
)
|
|
|
(52,210
|
)
|
|
|
(76,261
|
)
|
By-product credits
|
|
|
47,778
|
|
|
|
69,400
|
|
|
|
139,483
|
|
|
|
200,842
|
|
Change in product inventory
|
|
|
(1,944
|
)
|
|
|
(3,010
|
)
|
|
|
1,962
|
|
|
|
(5,641
|
)
|
Reclamation and other costs
|
|
|
(223
|
)
|
|
|
(206
|
)
|
|
|
101
|
|
|
|
836
|
|
Cost of sales and other direct production costs and depreciation, depletion and amortization (GAAP)
|
|
$
|
44,562
|
|
|
$
|
52,738
|
|
|
$
|
130,564
|
|
|
$
|
159,598
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GREENS CREEK UNIT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total cash costs
|
|
$
|
5,701
|
|
|
$
|
(4,029
|
)
|
|
$
|
10,087
|
|
|
$
|
(9,216
|
)
|
Divided by ounces produced
|
|
|
1,619
|
|
|
|
1,351
|
|
|
|
4,313
|
|
|
|
4,508
|
|
Total cash cost per ounce produced
|
|
$
|
3.52
|
|
|
$
|
(2.98
|
)
|
|
$
|
2.34
|
|
|
$
|
(2.04
|
)
|
Reconciliation to GAAP:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total cash costs
|
|
$
|
5,701
|
|
|
$
|
(4,029
|
)
|
|
$
|
10,087
|
|
|
$
|
(9,216
|
)
|
Depreciation, depletion and amortization
|
|
|
11,601
|
|
|
|
9,592
|
|
|
|
31,141
|
|
|
|
29,981
|
|
Treatment costs
|
|
|
(18,351
|
)
|
|
|
(20,187
|
)
|
|
|
(52,210
|
)
|
|
|
(59,522
|
)
|
By-product credits
|
|
|
47,778
|
|
|
|
55,522
|
|
|
|
139,483
|
|
|
|
159,586
|
|
Change in product inventory
|
|
|
(1,944
|
)
|
|
|
(3,346
|
)
|
|
|
1,962
|
|
|
|
(5,686
|
)
|
Reclamation and other costs
|
|
|
(223
|
)
|
|
|
(463
|
)
|
|
|
101
|
|
|
|
(826
|
)
|
Cost of sales and other direct production costs and depreciation, depletion and amortization (GAAP)
|
|
$
|
44,562
|
|
|
$
|
37,089
|
|
|
$
|
130,564
|
|
|
$
|
114,317
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LUCKY FRIDAY UNIT (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total cash costs
|
|
$
|
--
|
|
|
$
|
5,562
|
|
|
$
|
--
|
|
|
$
|
14,473
|
|
Divided by silver ounces produced
|
|
|
--
|
|
|
|
937
|
|
|
--
|
|
|
|
|
2,485
|
|
Total cash cost per ounce produced
|
|
$
|
--
|
|
|
|
5.94
|
|
|
$
|
--
|
|
|
$
|
5.82
|
|
Reconciliation to GAAP:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total cash costs
|
|
$
|
--
|
|
|
$
|
5,562
|
|
|
$
|
--
|
|
|
$
|
14,473
|
|
Depreciation, depletion and amortization
|
|
|
--
|
|
|
|
1,507
|
|
|
--
|
|
|
|
|
4,584
|
|
Treatment costs
|
|
|
--
|
|
|
|
(5,891
|
)
|
|
$
|
--
|
|
|
|
(16,739
|
)
|
By-product credits
|
|
|
--
|
|
|
|
13,878
|
|
|
--
|
|
|
|
|
41,256
|
|
Change in product inventory
|
|
|
--
|
|
|
|
336
|
|
|
$
|
--
|
|
|
|
45
|
|
Reclamation and other costs
|
|
|
--
|
|
|
|
257
|
|
|
|
|
|
|
|
1,662
|
|
Cost of sales and other direct production costs and depreciation, depletion and amortization (GAAP)
|
|
$
|
--
|
|
|
$
|
15,649
|
|
|
$
|
--
|
|
|
$
|
45,281
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Production has been temporarily suspended at the Lucky Friday Unit as work is performed to rehabilitate the Silver Shaft, the primary access from surface to the underground workings at the Lucky Friday mine. See the Lucky Friday Segment section above for further discussion of the Silver Shaft work and temporary suspension of operations. Care and maintenance costs incurred at the Lucky Friday during the suspension of production are included in a separate line item under Other operating expenses on the Condensed Consolidated Statement of Operations and Comprehensive Income (Unaudited), and have been excluded from the calculation of total cash costs for the three- and nine-month periods ended September 30, 2012.
|
This release also refers to a non-GAAP measure of earnings after adjustments. Earnings After Adjustments and Earnings After Adjustments per share are non-GAAP measures which are indicators of our performance. They exclude certain impacts which are of a nature which we believe are not reflective of our underlying performance. Management believes that earnings after adjustments per common share provides investors with the ability to better evaluate our underlying operating performance. The following table reconciles income (loss) applicable to common shareholders to earnings after adjustments applicable to common shareholders (in thousands):
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
Income (loss) applicable to common shareholders (GAAP)
|
|
$
|
(1,023
|
)
|
|
$
|
55,783
|
|
|
$
|
13,797
|
|
|
$
|
132,181
|
|
Adjusting items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Gains)/losses on derivatives contracts
|
|
|
9,053
|
|
|
|
(40,382
|
)
|
|
|
8,113
|
|
|
|
(38,907
|
)
|
Environmental accruals
|
|
|
(2,750
|
)
|
|
|
4,851
|
|
|
|
(1,436
|
)
|
|
|
4,851
|
|
Provisional price gains
|
|
|
(5,861
|
)
|
|
|
3,621
|
|
|
|
(9,487
|
)
|
|
|
3,340
|
|
Lucky Friday suspension-related costs
|
|
|
6,114
|
|
|
|
--
|
|
|
|
18,745
|
|
|
|
--
|
|
Income tax effect of above adjustments
|
|
|
(2,360
|
)
|
|
|
11,488
|
|
|
|
(5,737
|
)
|
|
|
11,058
|
|
Earnings after adjustments applicable to common shareholders
|
|
$
|
3,173
|
|
|
$
|
35,361
|
|
|
$
|
23,995
|
|
|
$
|
112,523
|
|
Weighted average shares - basic
|
|
|
285,492
|
|
|
|
279,541
|
|
|
|
285,400
|
|
|
|
279,067
|
|
Weighted average shares - diluted
|
|
|
297,498
|
|
|
|
295,000
|
|
|
|
296,739
|
|
|
|
295,739
|
|
Basic earnings after adjustments per common share
|
|
$
|
0.01
|
|
|
$
|
0.13
|
|
|
$
|
0.08
|
|
|
$
|
0.40
|
|
Diluted earnings after adjustments per common share
|
|
$
|
0.01
|
|
|
$
|
0.12
|
|
|
$
|
0.08
|
|
|
$
|
0.38
|
|
Assay Results - Q3 2012
MINE / PROJECT
|
|
Zone
|
|
Drill Hole No.
|
|
Width (Feet)
|
|
Silver (oz/ton)
|
|
Gold (oz/ton)
|
|
Zinc (%)
|
|
Lead (%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GREENS CREEK
|
|
200 South
|
|
GC3458
|
|
70.9
|
|
13.8
|
|
0.30
|
|
5.4
|
|
16.0
|
|
|
200 South
|
|
GC3477
|
|
51.0
|
|
21.1
|
|
0.37
|
|
4.3
|
|
12.2
|
|
|
200 South
|
|
GC3482
|
|
37.0
|
|
23.0
|
|
0.22
|
|
11.5
|
|
4.5
|
|
|
200 South
|
|
GC3506
|
|
40.0
|
|
16.5
|
|
0.24
|
|
14.0
|
|
4.2
|
|
|
200 South
|
|
GC3501
|
|
27.5
|
|
28.1
|
|
0.13
|
|
8.0
|
|
14.8
|
|
|
200 South
|
|
GC3498
|
|
15.5
|
|
55.9
|
|
0.37
|
|
3.3
|
|
6.8
|
|
|
200 South
|
|
GC3500
|
|
16.5
|
|
24.1
|
|
0.37
|
|
4.0
|
|
10.7
|
|
|
200 South
|
|
GC3490
|
|
14.0
|
|
22.7
|
|
0.46
|
|
2.3
|
|
4.2
|
|
|
200 South
|
|
GC3497
|
|
12.9
|
|
24.4
|
|
0.40
|
|
3.9
|
|
6.9
|
|
|
200 South
|
|
GC3498
|
|
19.0
|
|
65.8
|
|
0.49
|
|
7.0
|
|
3.5
|
|
|
200 South
|
|
GC3382
|
|
12.0
|
|
49.6
|
|
0.04
|
|
2.6
|
|
6.0
|
|
|
Gallagher
|
|
GC3365
|
|
23.5
|
|
19.0
|
|
0.41
|
|
4.0
|
|
9.6
|
|
|
Gallagher
|
|
GC3350
|
|
18.0
|
|
39.30
|
|
0.16
|
|
11.3
|
|
21.6
|
|
|
Gallagher
|
|
GC3364
|
|
14.5
|
|
7.80
|
|
0.20
|
|
5.0
|
|
11.8
|
|
|
Gallagher
|
|
GC3419
|
|
10.7
|
|
20.50
|
|
0.41
|
|
2.1
|
|
4.1
|
|
|
Gallagher
|
|
GC3368
|
|
9.8
|
|
6.54
|
|
0.15
|
|
3.2
|
|
7.0
|
|
|
Southwest Bench
|
|
GC3364
|
|
73.0
|
|
17.58
|
|
0.17
|
|
5.3
|
|
18.4
|
|
|
Southwest Bench
|
|
GC3451
|
|
55.0
|
|
18.74
|
|
0.23
|
|
10.7
|
|
26.8
|
|
|
Southwest Bench
|
|
GC3365
|
|
38.8
|
|
15.3
|
|
0.21
|
|
3.9
|
|
21.9
|
|
|
Southwest Bench
|
|
GC3366
|
|
36.0
|
|
6.3
|
|
0.15
|
|
4.0
|
|
25.1
|
|
|
Southwest Bench
|
|
GC3445
|
|
19.7
|
|
54.9
|
|
0.10
|
|
8.9
|
|
20.5
|
|
|
5250 Zone
|
|
GC3401
|
|
33.5
|
|
18.7
|
|
0.08
|
|
2.2
|
|
3.2
|
|
|
5250 Zone
|
|
GC3493
|
|
13.2
|
|
17.2
|
|
0.14
|
|
5.6
|
|
22.8
|
|
|
5250 Zone
|
|
GC3468
|
|
8.8
|
|
30.9
|
|
0.10
|
|
4.4
|
|
7.4
|
|
|
9a Zone
|
|
GC3425
|
|
16.3
|
|
23.2
|
|
0.14
|
|
6.5
|
|
13.2
|
|
|
9a Zone
|
|
GC3369
|
|
19.8
|
|
10.7
|
|
0.03
|
|
16.2
|
|
28.4
|
|
|
9a Zone
|
|
GC3425
|
|
6.6
|
|
25.0
|
|
0.59
|
|
13.2
|
|
6.8
|
MINE / PROJECT
|
|
Vein Area
|
|
Drill Hole No.
|
|
Width (Feet)
|
|
Silver (oz/ton)
|
|
Gold (oz/ton)
|
|
|
|
|
|
|
|
|
|
|
|
SAN JUAN SILVER (CREEDE)
|
|
Equity
|
|
NAU12121
|
|
5.6
|
|
14.2
|
|
0.23
|
|
|
Equity
|
|
NAU12123
|
|
10.1
|
|
22.3
|
|
0.17
|
|
|
Equity
|
|
NAU12128
|
|
7.2
|
|
8.3
|
|
0.06
|
|
|
Equity
|
|
NAU12129
|
|
4.1
|
|
7.4
|
|
0.03
|
|
|
Amethyst
|
|
NAU12150
|
|
4.7
|
|
33.4
|
|
0.27
|
|
|
Amethyst
|
|
NAU12158
|
|
11.0
|
|
15.3
|
|
0.10
|
|
|
Amethyst
|
|
NAU12159
|
|
5.1
|
|
15.4
|
|
0.14
|
|
|
Amethyst
|
|
NAU12133
|
|
5.6
|
|
17.2
|
|
0.06
|
|
|
Amethyst
|
|
NAU12143
|
|
4.5
|
|
12.4
|
|
0.01
|
|
|
Amethyst
|
|
NAU12144
|
|
2.5
|
|
17.6
|
|
0.23
|
|
|
Amethyst
|
|
NAU12139
|
|
3.1
|
|
11.0
|
|
0.01
|
|
|
Amethyst
|
|
NAU12157
|
|
3.0
|
|
6.5
|
|
0.13
|
MINE / PROJECT
|
|
Vein Number / Area
|
|
Drill Hole No.
|
|
Width (Feet)
|
|
Silver (oz/ton)
|
|
Zinc (%)
|
|
Lead (%)
|
SILVER VALLEY DRILLING
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STAR COMPLEX
|
|
Noonday
|
|
ND-46
|
|
4.2
|
|
18.0
|
|
0.1
|
|
15.7
|
|
|
Noonday
|
|
ND-61
|
|
2.6
|
|
21.8
|
|
0.4
|
|
28.1
|
|
|
Noonday
|
|
ND-62
|
|
4.3
|
|
5.1
|
|
0.1
|
|
2.1
|
|
|
Noonday
|
|
ND-63
|
|
4.7
|
|
6.9
|
|
0.1
|
|
5.6
|
|
|
Noonday
|
|
ND-64
|
|
4.5
|
|
14.3
|
|
0.1
|
|
21.5
|
|
|
Noonday Split
|
|
ND-64
|
|
5.1
|
|
29.1
|
|
1.3
|
|
7.6
|
|
|
Noonday Split
|
|
ND-59
|
|
9.8
|
|
14.4
|
|
5.5
|
|
6.0
|
|
|
Noonday Split
|
|
ND-48
|
|
4.3
|
|
10.8
|
|
17.4
|
|
0.7
|
|
|
Noonday Split
|
|
ND-59
|
|
4.3
|
|
27.8
|
|
4.5
|
|
7.8
|
|
|
Morning/Noonday
|
|
ND-61
|
|
5.3
|
|
14.4
|
|
0.1
|
|
1.5
|
|
|
Morning/Noonday
|
|
ND-64
|
|
5.1
|
|
29.1
|
|
1.3
|
|
7.6
|
|
|
Morning
|
|
ND-57
|
|
3.2
|
|
31.7
|
|
0.2
|
|
2.3
|
|
|
Moffitt
|
|
STR200-1014
|
|
4.3
|
|
5.4
|
|
7.6
|
|
16.4
|
|
|
Moffitt
|
|
STR200-1018
|
|
2.4
|
|
8.9
|
|
10.2
|
|
34.4
|
|
|
Moffitt
|
|
STR200-1013
|
|
2.5
|
|
2.9
|
|
8.2
|
|
18.1
|
|
|
Moffitt
|
|
STR200-1017
|
|
4.3
|
|
2.1
|
|
6.1
|
|
10.3
|
|
|
North Star
|
|
STR200-1014
|
|
0.8
|
|
7.2
|
|
1.8
|
|
22.2
|
|
|
North Star
|
|
STR200-1022
|
|
4.3
|
|
0.7
|
|
10.9
|
|
2.6
|
|
|
North Star
|
|
STR200-1013
|
|
4.3
|
|
2.9
|
|
2.4
|
|
7.6
|
MINE / PROJECT
|
|
Area
|
|
Drill Hole No.
|
|
Width (Meters)
|
|
Silver (g/tonne)
|
|
Gold (g/tonne)
|
|
Width (Feet)
|
|
Silver (oz/ton)
|
|
Gold (oz/ton)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MEXICO - SAN SEBASTIAN
|
|
Middle Vein
|
|
SS-380
|
|
2.36
|
|
1,345.2
|
|
12.42
|
|
7.74
|
|
39.2
|
|
0.36
|
|
|
Middle Vein
|
|
SS-381
|
|
1.10
|
|
619.4
|
|
4.30
|
|
3.61
|
|
18.1
|
|
0.13
|
|
|
Middle Vein
|
|
SS-382
|
|
0.51
|
|
4,173.8
|
|
17.69
|
|
1.67
|
|
121.7
|
|
0.52
|
|
|
Middle Vein
|
|
SS-374
|
|
3.62
|
|
296.8
|
|
0.74
|
|
11.87
|
|
8.7
|
|
0.02
|
|
|
Middle Vein
|
|
SS-375
|
|
0.81
|
|
218.0
|
|
0.42
|
|
2.66
|
|
6.4
|
|
0.01
|
|
|
Middle Vein
|
|
SS-376
|
|
0.88
|
|
234.0
|
|
0.47
|
|
2.89
|
|
6.8
|
|
0.01
|
|
|
Middle Vein
|
|
SS-377
|
|
0.54
|
|
787.6
|
|
2.61
|
|
1.77
|
|
23.0
|
|
0.08
|
|
|
Middle Vein
|
|
SS-378
|
|
1.47
|
|
462.2
|
|
1.59
|
|
4.82
|
|
13.5
|
|
0.05
|
|
|
Middle Vein
|
|
SS-361
|
|
0.82
|
|
238.6
|
|
1.09
|
|
2.69
|
|
7.0
|
|
0.03
|
|
|
Middle Vein
|
|
SS-284
|
|
0.55
|
|
386.5
|
|
0.39
|
|
1.80
|
|
11.3
|
|
0.01
|
|
|
Middle Vein
|
|
SS-383
|
|
2.21
|
|
332.8
|
|
1.23
|
|
7.25
|
|
9.7
|
|
0.04
|
|
|
Francine/Hugh
|
|
SS-364
|
|
1.57
|
|
253.3
|
|
1.15
|
|
5.15
|
|
7.4
|
|
0.03
|
Source: Hecla Mining Company
Hecla Mining Company Jim Sabala, 208-209-1255 Sr. Vice President - CFO 800-HECLA91 (800-432-5291) Investor Relations Email: hmc-info@hecla-mining.com Website: www.hecla-mining.com
|