Make Kitco Your Homepage

Hecla exceeds pre-COVID silver production guidance, increases gross profit by 523%

Kitco News

Editor's Note: With so much market volatility, stay on top of daily news! Get caught up in minutes with our speedy summary of today's must-read news and expert opinions. Sign up here!

(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.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.