Hecla Mining pany(HL) - 2024 Q4 - Annual Results

Financial Performance - Generated record sales of $929.9 million for the year, an increase from $720.2 million in 2023[4] - Reported net income applicable to common stockholders of $35.3 million, compared to a loss of $84.8 million in the prior year[11] - Achieved record Adjusted EBITDA of $337.9 million, a 62% increase over the prior year[13] - Cash flow from operating activities was $218.3 million, an increase of $142.8 million over 2023[14] - Free cash flow for the year was $3.8 million, compared to negative $148.4 million in the prior year[16] - Sales for the three months ended December 31, 2024, were $249.655 million, a 1.3% increase from $245.085 million in the previous quarter, and a significant increase from $720.227 million for the twelve months ended December 31, 2023, representing a 29% growth[100] - Gross profit for the three months ended December 31, 2024, was $68.334 million, compared to $59.286 million in the previous quarter, and $198.210 million for the twelve months ended December 31, 2023, up from $112.949 million[100] - Net income applicable to common stockholders for the three months ended December 31, 2024, was $11.786 million, compared to $1.623 million in the previous quarter, and $35.250 million for the twelve months ended December 31, 2023, recovering from a loss of $84.769 million[100] Production and Sales - Produced 16.2 million ounces of silver, the second highest in the company's history, and 142 thousand ounces of gold, exceeding consolidated guidance[4] - Greens Creek produced 8.5 million ounces of silver and 55,275 ounces of gold in 2024, with silver production increasing by 2% and gold by 26% in Q4 compared to the prior quarter[20][21] - Lucky Friday produced 4.9 million ounces of silver in 2024, a 58% increase over the prior year, with Q4 silver production at 1.3 million ounces, up 13% from the prior quarter[31][32] - Keno Hill produced 2.8 million ounces of silver in 2024, an increase of 85% over the prior year, within guidance of 2.7-3.0 million ounces[38] - Casa Berardi produced 86,648 ounces of gold in 2024, a decrease of 4% over the prior year due to lower surface grades[50] Costs and Expenses - Silver cash costs per ounce were $2.72, and AISC per ounce was $13.06, both within guidance[12] - Total cost of sales for 2024 was $223.6 million, consistent with the prior year, while sales increased by 18% to $209.7 million due to higher realized prices[55] - Cash costs and AISC per gold ounce for 2024 were $1,762 and $1,990, respectively, with the year-over-year increase in cash costs primarily due to lower gold production[55] - Total cash costs after by-product credits were $40.5 million in Q4 2024, compared to $36.0 million in Q3 2024, marking an increase of 12%[114] - The average all-in sustaining cost (AISC) after by-product credits for the twelve months ended December 31, 2024, was $36.53 per ounce, compared to $32.59 in the previous year[113] Capital Investment - Capital investment for the year was $214.5 million, a decrease from $223.9 million in the prior year[15] - Capital investment for Greens Creek in Q4 was $15.8 million, an increase of $4.3 million over the prior quarter, primarily for mobile equipment purchases[24] - Capital investment for Lucky Friday in Q4 was $12.6 million, a 13% increase over the prior quarter, reflecting increased development and sustaining capital investments[33] - Capital investment for 2025 is expected to be between $222 million and $242 million, with a focus on increased investment at Greens Creek and Lucky Friday[75] Future Outlook - The company plans to advance Keno Hill's permitting and infrastructure to achieve sustained profitability in 2025[5] - The company projects 2025 silver production to remain comparable to 2024 levels, with growth expected to resume in 2026[44] - Consolidated silver production for 2025 is expected to be 15.5-17.0 million ounces, consistent with 2024 production levels[69] - Consolidated gold production for 2025 is projected to decrease to 120-130 thousand ounces, primarily due to the transition of Casa Berardi to a surface-only operation[71] - The company plans to focus on market expansion and new product development in the upcoming fiscal year[113] Debt and Financial Ratios - Improved net leverage ratio to 1.6x from 2.7x a year ago, reflecting strong EBITDA generation and reduced net debt[13] - The net debt to LTM adjusted EBITDA ratio improved to 1.6 from 2.7[127] Exploration and Resources - Proven and probable reserves as of December 31, 2024, totaled 35,058,000 tons, with silver reserves estimated at 239,825,000 ounces[133] - The company’s exploration expenses for FY 2024 were $26,342,000, significantly higher than $8,016,000 in FY 2023, reflecting increased investment in resource development[131] - Total measured resources include 6,285,000 tons of silver with an average grade of 32,898 oz/ton[138] - The company is focusing on expanding its market presence through strategic acquisitions and new technology development[141]