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Dec 31, 2022
Hecla Q4 2022 Earnings Report
Hecla reported a net loss for Q4 2022, but saw increased sales and silver production.
Key Takeaways
Hecla Mining Company announced fourth quarter and full-year 2022 financial and operating results, including record silver reserves and second highest silver production in history. The company completed the acquisition of Alexco Resource Corp., adding nearly 50 million ounces of silver reserves. Hecla expects to set new production records in 2023 and 2024.
Completed the acquisition of Alexco Resource Corp., adding nearly 50 million ounces of silver reserves.
Reported sales of $194.8 million with a gross profit of $25.0 million.
Produced 3.7 million ounces of silver and 43.6 thousand ounces of gold.
Loss applicable to common stockholders decreased to $4.6 million.
Hecla
Hecla
Hecla Revenue by Segment
Revenue by Segment
Greens Creek Revenue
CapyFin.comLucky Friday Revenue
CapyFin.comCasa Berardi Revenue
CapyFin.com Forward Guidance
Hecla provided a three-year production outlook and 2023 estimates of costs, capital and exploration and pre-development expenses. Consolidated silver production is expected to increase over the three years to reach 18.5-20 million ounces by 2025. 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.
Positive Outlook
- Keno Hill will be in production in the second half of the year with ramp-up to 440 tons per day by the end of 2023
- the Company will set new production records in 2023 and 2024
- Casa Berardi's costs will trend lower in the second half of 2023
- mine-specific and Company-wide 2023 estimates of future production
- mine-specific and Company-wide 2023 estimates of sales and costs of 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