Hecla: Second-Highest Annual Silver Output Ever Despite Strike
(Kitco News) - Hecla Mining Co. (NYSE: HL) reported Wednesday that outputfell in the fourth quarter and 2017, yet full-year silver output was thesecond-highest in the country’s 126-year history.
In particular, output was down sharply at the company’sLucky Friday Mine in Idaho due to a strike. Limited production is being carriedout by salaried staff.
Company-wide silver output in the fourth quarter was roughly3 million ounces, down 25% year-on-year. Gold output of 60,964 ounces was down4% from the same quarter of 2016. Output of lead and zinc, produced as aby-product, also fell.
For all of 2017, silver production of 12.5 million ounces was down 27% from 2016,yet also was Hecla’s second highest behind the company record 17.2 million achievedin 2016. Full-year gold production of 232,685 ounces was marginally lower than233,929 the year before, but was the third highest in company history. Goldproduction at Casa Berardi highest since its acquisition, Hecla reported.
Leadproduction of 22,734 tons and zinc production of 55,109 tons were down 47% and20% year-on-year, respectively.
“Ourmines finished the year strongly, with Greens Creek exceeding our estimatesagain this year and Casa Berardi and San Sebastian performing at the upper endof our estimates...,” said Phillips S. Baker, Jr., Hecla’s president and chiefexecutive officer. “Their performance is a result of the focus on increasingthroughput, with Greens Creek and Casa Berardi both achieving records.
“Althoughannual silver production has declined from 2016 as a result of the strike atthe Lucky Friday, two things about 2017 stand out. First, silver production wasbetter than any other year in our history except last year. Second, our cashposition increased $20 million, reflecting what a good year it was for Hecla.We are well-positioned for 2018.”
By Allen SykoraFor Kitco News
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