Declining silver price weighs on Hecla's quarter
Hecla Mining said its average realized silver price in the second quarter was $16.32 per ounce, 17% lower than the $19.62 price realized in the second quarter of 2014.
The company, which reported its financial results today, reported a net loss of $26.8 million, or $0.07 per share compared to a net loss of $14.5 million last year.
Hecla's CEO Phillips S. Baker, Jr. says the company can weather declining precious metal prices and more cash flow is on the way.
"Our assets, particularly Greens Creek with its recent improvements in recovery, have allowed us to weather the metals price weakness, and we retain the ability to reduce costs and programs if prices remain weak or go lower," said Baker in a news release.
"With expected mining at San Sebastian early in 2016, and, combined with the deeper Lucky Friday in three years, we anticipate the addition of significant additional cash flow, further strengthening us going forward."
The precious metal miner highlighted the following second quarter items:
- Sales of $104.2 million.
- Adjusted EBITDA of $29.5 million.2
- Operating cash flow of $30.8 million.
- Total silver production of 2.5 million ounces at a cash cost, after by-product credits, per silver ounce, of $5.61.3
- Gold production of 44,692 ounces, of which Casa Berardi produced 30,939 ounces at a cash cost, after by-product credits, per gold ounce of $832.3
- Completed acquisition of Revett Mining Company, owner of the Rock Creek project.
- Cash and cash equivalents of $192 million at June 30, 2015.
- Secured the third-party-owned Velardeña mill to process high-grade material from San Sebastian.
- Strong exploration success at San Sebastian and Casa Berardi.
- Increased estimated 2015 silver production to 10.5 – 11.0 million ounces.
- Accrual of $8.7 million for possible settlement of environmental claims at two legacy sites.
Photo of silver bars by Brian Shamblen