Hecla Announces Second Quarter Production
Press Release
July, 13, 2023
Keno Hill begins ramp-up, Lucky Friday reports highest quarterly silver production in more than 20 years
COEUR D’ALENE, Idaho — Hecla Mining Company (NYSE:HL) today announced its preliminary silver and gold production for the second quarter and first half of 2023.
HIGHLIGHTS
Year to Date (“YTD”) 2023 compared to YTD 2022 (“prior YTD”)
- Keno Hill produced 184,264 ounces of silver, June throughput of 330 tons per day (tpd)
- Silver production increased 13%
- Gold production decreased 14%
- Zinc production increased 3%; lead production increased 9%
“Hecla’s growing silver production was driven by Lucky Friday’s 21% increase compared to the first half of 2022 and a 6% increase at Greens Creek. In addition, Keno Hill, while still testing the mill, operated in its first month at 75% of the targeted 440 tpd throughput using “low-grade” ore to generate almost 200,000 ounces of silver,” said Phillips S. Baker, Jr., Hecla’s President, and CEO. “Greens Creek’s quarterly production was in line with the plan, and Lucky Friday’s silver production was the highest since I started at Hecla more than 20 years ago.”
Baker continued, “Our silver operations remain on track to produce about 17 million ounces this year, with Keno Hill expected to produce more than 2.5 million ounces. With expected silver production of about 20 million ounces in 2025, Hecla is the world’s fastest-growing established silver producer and the dominant producer of silver in the U.S. and soon Canada.”
OPERATIONS
Greens Creek
The Greens Creek mine produced 2.4 million ounces of silver and 16,351 ounces of gold in the second quarter. Throughput for the quarter was 2,555 tpd, in line with the first quarter, with the mine expected to achieve 2,600 tpd by the fourth quarter of 2023. Silver production declined compared to the first quarter, due primarily to expected lower grades, with a 10% increase in gold production attributable to higher grades. The mine remains on track to achieve its production guidance of 9.0-9.5 million ounces of silver this year.
Lucky Friday
The Lucky Friday mine produced 1.29 million ounces of silver in the second quarter, an increase of 2% over the first quarter. This quarter’s silver production was the highest since the first quarter of 2000. The increase in silver production was primarily attributable to 3% higher grades, partially offset by lower mill throughput. Mill throughput was 1,033 tpd, 2% lower than in the first quarter, driven by the local utility’s unplanned replacement of the main electrical transformer. The mine remains on track to produce 4.5-5.0 million ounces of silver this year, as throughput is expected to increase to 1,160 tpd (425,000 tons annually) in the fourth quarter.
Keno Hill
The Keno Hill mine began ramping up to full production in the second quarter producing 184,264 ounces of silver. Throughput in June was 330 tpd using lower-grade stockpiled ore of 17 ounces per ton (“opt”). Ore mined in the quarter had silver grades averaging 29 opt. The mill is expected to ramp up to 440 tpd by the end of the year, with annual silver production forecasted at more than 2.5 million ounces.
Casa Berardi
The Casa Berardi mine produced 18,901 ounces of gold in the second quarter, a decline of 23% compared to the first quarter’s production of 24,686 ounces. Gold production declined over the prior quarter primarily due to wildfire-related road closures. The mill operated at an average of 4,600 tpd during the first two months of the quarter. Casa Berardi’s production and cost guidance is suspended and is expected to be updated in the second quarter earnings release.
PRODUCTION SUMMARY(1)
|
|
Three Months Ended |
|
Six Months Ended |
|
||
|
|
June 30, |
March 31, |
|
June 30, |
June 30, |
|
|
|
2023 |
2023 |
|
2023 |
2022 |
|
|
Production |
|
|
Increase/ |
|
|
Increase/ |
|
Silver (oz) |
3,832,560 |
4,040,969 |
(5)% |
7,873,529 |
6,970,163 |
13 % |
|
Gold (oz) |
35,251 |
39,571 |
(11)% |
74,822 |
87,360 |
(14)% |
|
Lead (tons) |
13,071 |
13,236 |
(1)% |
26,307 |
24,194 |
9 % |
|
Zinc (tons) |
16,939 |
15,795 |
7 % |
32,734 |
31,713 |
3 % |
|
Greens Creek – Silver (oz) |
2,355,674 |
2,772,860 |
(15)% |
5,128,533 |
4,840,381 |
6 % |
|
Greens Creek – Gold (oz) |
16,351 |
14,885 |
10 % |
31,235 |
23,815 |
31 % |
|
Lucky Friday – Silver (oz) |
1,286,666 |
1,262,464 |
2 % |
2,549,130 |
2,114,335 |
21 % |
|
Keno Hill – Silver (oz) |
184,264 |
– |
NA |
184,264 |
– |
NA |
|
Casa Berardi – Gold (oz) |
18,901 |
24,686 |
(23)% |
43,587 |
63,546 |
(31)% |
Anvita M. Patil
Vice President – Investor Relations and Treasurer
Cheryl Turner
Communications Coordinator
800-HECLA91 (800-432-5291)
Investor Relations
Email: hmc-info@hecla.com
Website: www.hecla.com
IBF4
