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Hecla posts loss of $23.7 million in third quarter, notes lower metal prices and inflationary pressures

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(Kitco News) - Hecla Mining (NYSE: HL) reported today that in Q3 2022, the company produced 3.6 million ounces of silver, up 33% over Q3 2021, adding it is on track to exceed its silver production guidance.

The company’s Q3 2022 gold production of 44,747 ounces was in line with Q2 2022 and up 6% compared to Q3 2021. Hecla also produced 11,601 short tons of lead and 15,859 short tons of zinc in Q3 2022.

The company said that its sales in the third quarter of $146.3 million declined by $44.9 million compared to the second quarter of 2022 primarily due to lower realized prices for all metals, and lower revenue from the deferral of silver concentrate shipments from Greens Creek and Lucky Friday to the fourth quarter.

Hecla also reported loss applicable to common stockholders for the third quarter of $(23.7) million, or $(0.04) per share, compared to a loss of $(13.7) million, or $(0.03) per share, in the second quarter of 2022.

Hecla noted that net income in Q3 2022 was impacted by a decrease in gross profit primarily due to lower revenues and higher per unit costs, higher exploration and pre-development expenses, as well as higher general and administrative expenses reflecting incremental costs following the Alexco acquisition.

“Hecla reported another quarter of solid operational performance as Greens Creek achieved its best ever throughput and Lucky Friday's production exceeded 1 million ounces for the second consecutive quarter,” stated Phillips S. Baker Jr., President & CEO. “Free cash flow generation was lower for the quarter due to deferral of the sale of about a million ounces of silver and other metals, increased capital investment in our mines, and Alexco acquisition costs. All operations are free cash flow positive year to date and reflect the strong margins at our silver operations despite lower prices and an inflationary environment.”

Founded in 1891, Hecla Mining is the largest silver producer in the United States. In addition to operating mines in Alaska, Idaho, Quebec, Canada, the company is developing a mine in the Yukon, Canada, and owns a number of exploration and pre-development projects in North America.

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