Hecla exceeds pre-COVID silver production guidance, increases gross profit by 523%
(Kitco News) - Hecla Mining (NYSE:HL) today announced full-year 2020 sales of $691.9 million (the highest in the company's history); cash flow from operations of $180.8 million; free cash flow of $89.8 million; adjusted net income applicable to common shareholders of $23.1 million, or $0.04 per share; net loss of $16.8 million; and adjusted EBITDA of $224.3 million.
The company said that its 2020 silver production of 13.5 million ounces was up 7% and gold production of 208,962 ounces was down 23% from 2019.
Hecla’s full-year 2020 gross profit of $145.7 million was $122.3 million or 523% higher than a year before ($23.4 million), principally due to lower costs and depreciation at Nevada, higher quantities of silver, lead and zinc sold and higher realized silver and gold prices.
Net debt reduction was approximately $81 million, or 17%, from March 31, 2020.
Year-end cash position was $130 million, an increase of $67 million from 2019 with the credit facility undrawn.
"The COVID pandemic provided significant challenges to Hecla and the mining industry; however, due to our people and the jurisdictions we operate in, Hecla exceeded the high end of our pre-COVID silver guidance by 1.4 million ounces. During the year we refinanced our long-term debt now due in 2028, and through solid free cash flow generation, added cash to the balance sheet, reduced our net debt, and increased dividends," said President and CEO Phillips S. Baker, Jr.
Founded in 1891, Hecla Mining is a leading low-cost U.S. silver producer with operating mines in Alaska and Idaho and is a growing gold producer with an operating mine in Quebec.