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Hecla posts net loss in Q2, reaffirms annual silver guidance

Kitco Media
By Vladimir Basov
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(Kitco News) -Hecla Mining (NYSE: HL) announced on Tuesday that in Q2 2023, the company produced 3.8 million ounces of silver, an increase of 6% over Q2 2022 (3.6 million ounces).

In Q2 2023, the company also produced 35,251 ounces of gold (Q2 2022: 45,718 ounces), 16,939 tonnes of zinc (Q2 2022: 16,766 tonnes), and 13,071 tonnes of lead (Q2 2022: 13,331 tonnes).

In H1 2023, Hecla produced 7.9 million ounces of silver, which is an increase of 13% compared to 7.0 million ounces of silver produced in H1 2022 and third highest silver production over a six-month period in Hecla history.

However, compared to Q1 2023, the company’s silver production of 3.8 million ounces declined by 5% (Q1 2023: 4 million ounces).

Hecla said its Q2 2023 sales declined by 11% to $178.1 million from the first quarter of 2023 due to lower quantities of all metals sold and lower realized lead and zinc prices, partially offset by higher precious metals prices.

The company added that Q2 2023 gross profit increased to $37.7 million, an increase of 8% over the prior quarter, as lower total cost of sales attributable to lower quantities of metals sold offset lower sales.

Hecla also reported Q2 2023 net loss applicable to common stockholders of $(15.8) million or $(0.03) per share, and adjusted net income of $15.1 million or $0.03 per share.

The company noted that its silver operations remain on track to produce about 17 million ounces this year, while gold production guidance was adjusted to 140-160 koz from 160-170 koz based on reduced underground mining and wildfires-related suspension of operations at Casa Berardi.

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.

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Vladimir Basov

Vladimir (PhD, MEng in Mining) is a professional mining engineer, scientist and analyst that has more than 20 years of practical in-field and research experience. He is particularly interested in collecting, processing baseline data and writing insightful data-driven mining industry analytics, articles, statistical and research reports.

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