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Jun 30, 2024
Hecla Q2 2024 Earnings Report
Second quarter results driven by strong silver production and free cash flow, with debt reduction achieved.
Key Takeaways
Hecla Mining Company reported record revenues of $245.7 million in Q2 2024, driven by the second highest silver production in company history and strong performance from Greens Creek and Lucky Friday mines. The company generated positive free cash flow of $28.3 million, which allowed them to reduce net debt by $25.1 million. Net income applicable to common stockholders was $27.7 million, or $0.04 per share.
Production of 4.5 million silver ounces, the second highest in Company history.
Lucky Friday's silver production of 1.3 million ounces was the highest since 2000.
Keno Hill produced a record 0.9 million ounces of silver, a 39% increase over the first quarter of 2024.
Free cash flow generated at all operations, particularly strong at Greens Creek and Lucky Friday.
Hecla
Hecla
Hecla Revenue by Segment
Revenue by Segment
Greens Creek Revenue
CapyFin.comLucky Friday Revenue
CapyFin.comKeno Hill Revenue
CapyFin.comCasa Berardi Revenue
CapyFin.com Forward Guidance
Hecla has updated its annual gold production, cost and capital guidance. There is no change to silver production guidance.
Positive Outlook
- Gold production guidance for Casa Berardi is increased to reflect the extension of underground operations until the end of the year 2024.
- At Greens Creek, guidance for cash costs and AISC per silver ounce, each after by-product credits, has decreased to reflect higher by-product credits (due to strong realized prices), and strong silver production.
- AISC per silver ounce, after by-product credits, is also favorably impacted by lower expected capital investment during the remaining year at Greens Creek.
- For Casa Berardi, cost of sales guidance is increased to include expected underground production costs for the rest of 2024.
- Cash costs and AISC, per gold ounce, each after by-product credits is unchanged as the increased costs are offset by higher expected production at Casa Berardi.
Challenges Ahead
- At Lucky Friday, guidance for cash costs and AISC per silver ounce, each after by-product credits, has increased to reflect higher labor and contractor costs incurred through the first half of 2024, and expected higher profit sharing costs (under the collective bargaining agreement) during the remaining year attributable to higher prices.
- At Keno Hill, expenditures on production costs, excluding depreciation, are expected to be $25-$27 million per quarter for the remaining year to reflect current levels of expenditures associated with the increase in production volumes.
- The Company is increasing capital guidance for the year to reflect higher expected capital investment at Keno Hill
- Capital investment guidance is reduced to reflect lower capital investment through the first half of the year and timing of equipment purchases and capital projects at Greens Creek.
- Increase in capital investment guidance is primarily attributable to increased underground development, water treatment plant upgrades, camp expansion, equipment purchases, and cemented tails batch plant at Keno Hill.
Revenue & Expenses
Visualization of income flow from segment revenue to net income