Hecla Q1 2022 Earnings Report
Key Takeaways
Hecla Mining Company reported sales of $186.5 million with silver production of 3.3 million ounces. The company generated $16.4 million in free cash flow after semi-annual interest payments, and income applicable to common shareholders was $4.0 million, or $0.01 per share.
Silver production increased by 3% over the previous quarter, reaching 3.3 million ounces.
Sales slightly increased to $186.5 million compared to the fourth quarter of 2021.
The company generated $16.4 million in quarterly free cash flow.
Credit ratings were upgraded to B1 and B+ by Moody’s and S&P, respectively.
Hecla
Hecla
Hecla Revenue by Segment
Forward Guidance
The Lucky Friday mine may exceed 1 million ounces of quarterly silver production for the remainder of 2022, and Hecla's role will grow in a clean energy future. The Company believes it will meet previously disclosed guidance on future production, sales, total cost of sales, cash costs, after by-product credits, AISC, after by-product credits and cash flows as well as estimated spending on capital, exploration and pre-development.
Positive Outlook
- Lucky Friday mine may exceed 1 million ounces of quarterly silver production for the remainder of 2022
- Demand for silver is expected to grow in the transition to a green economy
- Hecla's role will grow in a clean energy future
- Company believes it will meet previously disclosed guidance on future production
- Company believes it will meet previously disclosed guidance on future sales
Challenges Ahead
- Gold, silver and other metals price volatility
- Operating risks
- Currency fluctuations
- Increased production costs and variances in ore grade or recovery rates from those assumed in mining plans
- Community relations
Revenue & Expenses
Visualization of income flow from segment revenue to net income