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« The Past Decade | Main | Silver Standard Resources Incorporated: Picked Up a few Call Options »
Tuesday
Nov032009

Hecla Reports Quarterly Record Cash Flow of $32.3 Million

hecla logo.JPG


From what we can glean from this news release the fortunes of Hecla Mining Company (HL) appear to be looking up, the highlights are as follows:

For the Period Ended September 30, 2009

COEUR D’ALENE, Idaho--(BUSINESS WIRE)--Nov. 3, 2009-- Hecla Mining Company (NYSE:HL) today reported net income applicable to common shareholders of $22.5 million, or 9 cents per diluted common share, on revenue of $95.2 million in the third quarter of 2009, compared with a loss of $7.2 million on revenue of $68.5 million for the corresponding quarter in 2008. Third quarter silver production was 2.7 million ounces at a cash cost of $0.85 per ounce of silver produced after by-product credits. For the first nine months of 2009, Hecla produced 8.6 million ounces of silver at a cash cost of $3.00 per ounce of silver produced after by-product credits.

Cash flow from operating activities increased 62% to $32.3 million in the third quarter of 2009, compared to $20.0 million for the second quarter of 2009 and $19.0 million in the third quarter of 2008. Excluding dividends to holders of its preferred shares, Hecla reported net income of $25.9 million for the third quarter of 2009, compared to a net loss of $3.8 million for the third quarter of 2008.

Hecla Mining Company President and Chief Executive Officer Phillips S. Baker, Jr., said, “We had one of the best quarters in our hundred-year history generating strong cash flow that increased our current cash balance by $27 million to $85 million. The main driver is the record revenue from acquiring the remainder of the Greens Creek mine which doubled Hecla’s silver production and almost tripled zinc production and increased lead production. In the U.S., Hecla is now the largest silver producer and the second and third largest producer of zinc and lead, respectively. Combined, the Greens Creek and Lucky Friday mines provide Hecla with appreciable scale of production and, with higher metals prices, have increased cash flow to these record levels.”

THIRD QUARTER 2009 HIGHLIGHTS

--Records for revenue, gross profit, income from operations, cash flow from operating activities, lead and zinc production; second highest net income in Hecla’s history
--Silver production of 2.7 million ounces, an 8.5% increase compared to the prior year period
--Cash costs of $0.85 per ounce of silver after by-product credits compared with cash costs of $4.46 per ounce in the third quarter of 2008 and cash costs of $3.38 per ounce in the second quarter of 2009
--Reduced full year guidance for cash costs by 25% to $2.25 per ounce of silver
--Record tonnage throughput at the Lucky Friday mine
--Strong financial liquidity with a cash balance of almost $85 million which has allowed Hecla to fully repay all outstanding debt in the fourth quarter of 2009
--Increased availability of hydropower is expected to reduce Greens Creek costs by approximately $2 million annually compared to costs incurred for power in the first three quarters of 2009

To read the news release in full just click here.

Hecla Mining Company trades on the NYSE under the symbol of HL and has a market capitalization of $971.99 million with 236.49 million shares outstanding and closed yesterday at $4.18.


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Reader Comments (3)

I am on the verge of selling out of HL. How come with such a glowing report their feet are stuck in the mud with a stagnated price?
John

November 3, 2009 | Unregistered CommenterJohn Ell

John,

Yes they have been dragging their feet, however we thought that this peice of good news would help the stock price. It did jump up 18% today which is nice to see, but one swallow does not make a summer as we all know.

November 3, 2009 | Unregistered CommenterSilver Prices

IMO silver HL will move above $6.00 soon.
I've several HLAA options, HL Jan 5 calls.
I plan on holding no longer than end of Dec
due to expiration, will sell at $2.00 if they go there b4
end of Dec.

November 13, 2009 | Unregistered Commenterrich

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