Hecla Mining Company Gross Profit of $54 Million

Hecla Mining Company (HL) reported today that they have managed to increase cash flow with silver production hitting 2.7 million ounces for a gross profit of $54 million.

Details follow below:


Hecla Mining Company today reported third quarter financial and operational results. The company generated $41.9 million in net cash from operating activities in the third quarter for a total of $115.3 million for the nine months period of 2010, up from $32.3 million and $51.9 million for the same periods in 2009.

THIRD QUARTER HIGHLIGHTS

Silver production of 2.7 million ounces at a total cash cost of negative $1.01 per ounce1
Adjusted net income of $29.6 million, up 31% over the same period in 2009

Income of $0.06 per share after preferred dividends

Record revenues of $115.8 million representing a 21% increase over the same period in 2009

Record gross profit of $54 million; 40% higher than the previous record

Cash and cash equivalents of $217 million on hand at September 30, 2010

Completed the excavation of the hoist room for the proposed internal #4 Shaft Project at Lucky Friday

"Both Greens Creek and Lucky Friday had a good quarter and have generated more net cash from operating activities so far this year, compared to the full year of 2009, which was a record for Hecla," said Phillips S. Baker Jr., President and Chief Executive Officer. "Our cash position, strong operating performance and district size properties in the U.S. and Mexico, position us well to fund development and capital projects, as well as take advantage of other potential opportunities that may arise."

To read the whole article please click here. We do hold this stock however we did reduce our exposure recently in order to increase our exposure to Silver Wheaton (SLW), for better or worse.



Hecla Mining Company trades on the NYSE under the symbol of HL and has a market capitalization of $1.77 billion, a P/E ratio of 21.52 and closed yesterday at $6.90.





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