(Kitco News) - Hecla Mining (NYSE:HL), the largest silver producer in the United States, today reported net loss applicable to common stockholders of $37.9 million in 2022 (2021: net income of $34.5 million), and adjusted net income of $27.8 million.
The company said that the decrease in profitability attributable to lower sales of $88.6 million due to lower gold production and lower metal prices; lower gross profit due to lower sales and higher production costs; higher general and administrative expenses of $8.8 million due to higher incentive compensation accruals, compensation increases effective July 1, and additional staffing as a result of the Alexco acquisition; and a decrease in income tax benefit of $22.0 million.
Adjusted EBITDA for the year was $217.5 million and decreased by $61.3 million over the prior year primarily due to lower revenues and higher production costs amidst inflationary pressures, it added.
Previously, the company reported record silver reserves of 241 million ounces in 2022, as well as annual production of 14.2 million ounces of silver, Hecla's second highest.
Hecla also said it achieved silver cost guidance with total silver cost of sales of $349.3 million and all-in sustaining cost after by-product credits of $11.25 per silver ounce.
The company's consolidated silver production is expected to increase over the three years to reach 18.5-20 million ounces by 2025, while consolidated gold production is expected to decrease to 160-170 thousand ounces in 2023 primarily due to Casa Berardi as an increase in the underground cut-off grade will lower gold production and reduce lower margin material and lower contractor costs.
Hecla also announced that its Board of Directors declared a quarterly cash dividend of $0.00625 per share of common stock.
Importantly, the company said it believes its shareholders are well-positioned for higher silver prices, "as the transition to renewables increases the need for silver as an energy metal."
Founded in 1891, Hecla Mining is the largest silver producer in the United States. In addition to operating mines in Alaska, Idaho, and Quebec, Canada, the company is developing a mine in the Yukon, Canada, and owns a number of exploration and pre-development projects in world-class silver and gold mining districts throughout North America.
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