Hecla estimates silver production above 3 million ounces in third quarter
(Kitco News) - With mining companies coming to grips with the COVID-19 pandemic, the third-quarter earnings season appears to be shaping up as an historical event.
Sunday, at the start of the virtual Denver Gold Forum, Hecla Mining Company (NYSE:HL) said in a press release that is saw increased silver production that has led to healthy margins and allowed it to pay off its revolving credit facility in full.
In preliminary estimates for the third quarter, the silver miner said it produced between 3.2 million and 3.4 million ounces of silver between July and September. At the same time, the company estimates that it produced between 41,000 and 43,000 ounces of gold.
The company added that it expects its Cash and Cash Equivalent position to exceed $90 million.
“Our strong production for the quarter is expected to translate into robust cash flows in excess of $20 million even after repaying our revolver in full and the interest payments on the bonds. We are close to realizing our financial goal of having in excess of $100 million of cash and cash equivalents on the balance sheet,” said Phillips Baker, Jr., president and CEO of Hecla in a press release. Finally, if our realized silver price is above $25 for September, we expect the silver-linked dividend to be paid pursuant to our enhanced dividend policy.”
Baker added that its strong production growth resulted from a ramp-up at its Lucky Friday mine and higher-than-expected silver grades at Greens Creek mine.