Business
Hecla Mining Reports 24% Higher Revenues on Higher Production and Prices in Second Quarter 2020
Hecla Mining Company (NYSE:HL) today announced second quarter 2020 financial and operating results. HIGHLIGHTS All mines in operation (non-U.S. mines had govern
About this update from Hecla Mining Company
[{"type":"text","content":"Hecla Mining Company (NYSE:HL) today announced second quarter 2020 financial and operating results. HIGHLIGHTS All mines in operation (non-U.S. mines had government-mandated shutdowns of less than a month). Sales of $166.4 million, an increase of 24% over prior year period. Gross profit of $34.1 million, an increase of $54.3 million over prior year period. Cash provided by operating activities was $37.5 million while there were $10.8 million additions to properties, plant, equipment and mineral interests, resulting in $26.7 million of quarterly free cash flow. Silver production of 3.4 million ounces and gold production of 59,982 ounces. Net loss applicable to common shareholders of $14.2 million, or $0.03 per share. Adjusted net income applicable to common shareholders of $7.3 million, or $0.01 per share.1 Adjusted EBITDA of $61.3 million and net debt/adjusted EBITDA (last 12 months) of 2.0x. 2,3 Strong balance sheet with cash and cash equivalents of $76 million, repaid $160 million of revolving line of credit, leaving $50 million outstanding; expect full repayment by year end. In the third quarter, agreed with Investissement Quebec to issue C$50 million (US$36.8 million) of senior unsecured notes yielding 5.74%; expected use of proceeds for purchases of existing 7.25% coupon bonds, and Casa Berardi capital expenditures. Annual silver and gold production and cost guidance is unchanged. \"Despite the pandemic, Hecla had its second highest quarterly silver production since 2016 which, combined with higher prices, resulted in almost 25% more revenue than a year ago and generated about $27 million of free cash flow,\" said Phillips S. Baker, Jr., Hecla's President and CEO. \"I am extremely proud of our workforce's adaptability and commitment in this challenging time which positions Hecla well to improve our cash flow generation in this higher silver and gold price environment.\" Mr. Baker continued, \"Hecla currently produces about a third of all the silver mined in the U.S., almost three times larger than the next primary producer. That number is expected to grow as Lucky Friday ramps up. As the United States' largest and oldest silver producer with America's largest silver reserve and resource, Hecla gives investors unique exposure to higher silver prices.\" FINANCIAL OVERVIEW Second Quarter Ended Six Months E...