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Hecla
🇺🇸 NYSE:HL
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•
Dec 31, 2023

Hecla Q4 2023 Earnings Report

Reported second largest silver reserves, largest gold resource, and second highest silver production and revenues despite the Lucky Friday losing five months of production due to a fire.

Key Takeaways

Hecla Mining Company reported its fourth quarter and full year 2023 results, with the second highest revenues and silver production in company history. Lucky Friday restarted production, Greens Creek achieved record throughput, Casa Berardi exceeded expectations, and Keno Hill focused on improving safety and environmental performance.

Second highest revenues, silver reserves, and silver production in Company history.

Lucky Friday restarted production on January 9th, with first insurance proceeds received in February.

Greens Creek achieved record throughput and generated $157.3 million in cash flow from operations and free cash flow of $121.6 million.

Casa Berardi began the transition to surface only mining with results exceeding expectations.

Total Revenue
$161M
Previous year: $195M
-17.5%
EPS
-$0.04
Previous year: $0.02
-300.0%
Operating Margin
-26.39%
Previous year: -4.85%
+444.1%
Silver Production
2.94M
Previous year: 3.66M
-19.9%
Gold Production
37.17K
Previous year: 43.63K
-14.8%
Gross Profit
$6.87M
Previous year: $25M
-72.6%
Cash and Equivalents
$106M
Previous year: $105M
+1.6%
Free Cash Flow
-$61.7M
Previous year: -$20M
+208.4%
Total Assets
$3.01B
Previous year: $2.93B
+2.9%

Hecla

Hecla

Hecla Revenue by Segment

Forward Guidance

The Company provided a three-year production outlook and 2024 estimates of costs, capital and exploration, and pre-development expenses.

Positive Outlook

  • Consolidated silver production is expected to increase to 16.5-17.5 million ounces in 2024.
  • Silver production is expected to increase by 30% by 2026.
  • Lucky Friday's silver production guidance is 5.0-5.3 million ounces.
  • Ramp up to full production expected to be complete in the first quarter.
  • Silver production from Keno Hill is forecasted to be 2.7-3.0 million ounces as the mine ramps up production during the year.

Challenges Ahead

  • Greens Creek's silver production is expected to decrease in 2024 due to expected lower silver mined grades.
  • Consolidated gold production is expected to decrease to 121-133 thousand ounces.
  • Casa Berardi's closure of underground operations in mid-2024 and transition to an open-pit only operation.
  • Increased guidance for AISC for the Greens Creek mine per silver ounce is attributable to planned higher capital investment.
  • At Keno Hill, expenditures on production costs, excluding depreciation, are expected to be $15-$17 million per quarter.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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