Hecla misses earnings forecast in third quarter
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(Kitco News) - Hecla Mining is on its way to reducing its debt burdens but missed expectations in its third quarter earnings report.
The silver producer reported net loss applicable to shareholders of $19.7 million, or $0.04 per share; consensus estimates called for a net loss of one cent per share. The company said that adjusted net loss applicable to common shareholders of $11.8 million, or $0.02 per share.
Looking at production for the third quarter, the company said that it produced 3.3 million ounces of silver and 77,311 ounces of gold.
The company reported sale of of $161.5 million due to higher production and metals prices. Hecla said that its production generated free cash flow of $28.8 million in the third quarter.
"The third quarter performance, including our increased adjusted EBITDA results, demonstrates significant progress toward our twin financial goals of having no net revolver indebtedness at year end and refinancing our senior notes," said Phillips Baker Jr., president and CEO of Hecla in a press release. "Our net revolver debt decreased by about $26 million, all from free cash flow, and our adjusted EBITDA of $70 million is about 50% more than the first and second quarter combined. We expect the fourth quarter adjusted EBITDA to be similar to the third quarter."
The company also announced a tentative deal with the union at its Lucky Friday mine. Baker said that it could take a year for the mine to ramp up to full production.