Hecla posts net loss in third quarter as silver production slides
(Kitco News) - Hecla Mining Company(NYSE:HL) announced Thursday that in Q3 2021, net loss applicable to commonshareholders was $1.1 million, or 0.2 cent per share, compared to net income of$15.1 million, or 2.9 cents per share, for the same period in 2020.
According to the company'sstatement, the lower third quarter results compared to the previous year weremainly due to the lower gross profit due to lower realized silver and goldprices and Greens Creek's lower grades based on mine sequencing impacted bystaff shortages; increase in exploration and pre-development expense by $12.9million; and an unrealized loss on investments in other mining companies of$2.9 million.
In addition, the company saidit paid $6.5 million in Q3 2021 to settle a lawsuit related to a 1989 agreementfor indemnification of certain environmental costs, and reported that suspensioncosts increased by $5.4 million due to placement of the Fire Creek mine andMidas mill on care-and-maintenance during the second quarter of 2021.
Importantly, Hecla said thatits silver production of 2.7 million ounces in Q3 2021 was 24% lower comparedto Q3 2020 due to lower grades at Greens Creek based on mine sequencing,partially offset by Lucky Friday production.
The company's gold productionof 42,206 ounces was in line with the same period in the prior year, whereaszinc production decreased by 14% to 15,545 tons due to Greens Creek's lowergrades, while lead production increased slightly to 9,904 tons with Lucky Fridaybeing in full production.
Founded in 1891, Hecla MiningCompany is the largest silver producer in the United States. In addition tooperating mines in Alaska, Idaho, and Quebec, Canada, the company owns a numberof exploration and pre-development projects in world-class silver and goldmining districts throughout North America.
By Vladimir BasovFor Kitco News
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