Hecla Mining reports Q2 net loss of $13.7 million on lower realized silver and gold prices
The company said its sales were $191.2 million in second quarter, a 3% increase over the prior quarter despite lower gold and silver prices.
Importantly, Hecla Mining reported net loss applicable to common shareholders for the second quarter of $13.7 million, or $(0.03) per share, compared to income of $4.0 million, or $0.01 per share, in the first quarter of 2022.
The company explained that this negative result was primarily due to lower realized prices for all metals and higher mining costs at Greens Creek caused by increased use of contractors, as well as a negative fair value adjustment primarily due to unrealized losses on the company's investment portfolio.
The company noted that Q2 2022 adjusted net income was $20.1 million or $0.04 per share.
Hecla said that its Board declared a quarterly cash dividend of $0.00625 per share of common stock, consisting of $0.00375 per share for the minimum dividend component and $0.0025 per share for the silver-linked component, adding that its Board also elected to declare a quarterly cash dividend of $0.875 per share of preferred stock.
In addition, the company said it increased its FY 2022 guidance for annual cost to reflect certain inflationary pressures. There is no change to the production guidance.
Founded in 1891, Hecla is the largest silver producer in the United States. In addition to operating mines in Alaska and Idaho, and Quebec, Canada, the company owns a number of exploration and pre-development properties in world-class silver and gold mining districts throughout North America.
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