Hecla Mining pany(HL)2025-05-01 21:19Financial Performance - Hecla Mining Company reported sales of $261,339,000 for the three months ended March 31, 2025, a 38% increase from $189,528,000 in the same period of 2024[10]. - Gross profit for the quarter was $74,004,000, compared to $19,160,000 in the prior year, reflecting a significant improvement in profitability[10]. - Net income applicable to common stockholders was $28,734,000, a turnaround from a net loss of $5,891,000 in the same quarter of 2024[10]. - The company reported a comprehensive income of $31,306,000 for the quarter, compared to a comprehensive loss of $11,156,000 in the same period last year[10]. - For the three months ended March 31, 2025, total metal sales reached $254.251 million, a significant increase from $185.081 million in the same period of 2024, representing a growth of approximately 37.4%[28]. - The company reported a net income of $28.872 million for Q1 2025, compared to a net loss of $5.753 million in Q1 2024, indicating a turnaround in financial performance[17]. - Total consolidated sales for Q1 2025 were $261.339 million, compared to $189.528 million in Q1 2024, representing an increase of about 37.9%[28]. - The company’s operating income for Q1 2025 was $52.355 million, a significant increase from an operating income of $5.064 million in Q1 2024, highlighting improved operational efficiency[23][24]. - Basic earnings per common share improved to $0.05 for the three months ended March 31, 2025, compared to a loss of $0.01 per share in the prior year[38]. Cash Flow and Liquidity - The company generated $35,738,000 in net cash from operating activities, up from $17,080,000 in the previous year[12]. - Cash and cash equivalents decreased to $23,668,000 from $80,169,000 year-over-year, indicating a tighter liquidity position[12]. - The company declared a quarterly dividend of $0.00375 per common share during the three months ended March 31, 2025[43]. - The company had net borrowings of $20.0 million on its revolving credit facility, resulting in $43.0 million outstanding at an interest rate of 6.7% as of March 31, 2025[175]. - As of March 31, 2025, the company had $23.7 million in cash and cash equivalents, with $43.0 million drawn on its $225 million credit facility[162]. Capital Expenditures and Investments - Hecla Mining Company incurred $54,095,000 in capital expenditures for property, plant, and mine development during the quarter[12]. - Capital additions for the three months ended March 31, 2025, totaled $54.095 million, compared to $47.589 million in the same period of 2024, indicating ongoing investment in operations[23][24]. - The company estimates exploration and pre-development expenditures will total approximately $28.0 million in 2025, with $4.5 million already incurred as of March 31, 2025[168]. - Capital expenditures for 2025 are estimated to be between $222 million and $242 million, with $54.1 million already incurred as of March 31, 2025[168]. Debt and Obligations - Long-term debt as of March 31, 2025, was $515,412 thousand, compared to $495,184 thousand as of December 31, 2024, reflecting an increase of approximately 4.1%[45]. - The total debt as of March 31, 2025, was $549,024 thousand, an increase from $528,801 thousand as of December 31, 2024[46]. - Total contractual cash obligations amount to $730.7 million as of March 31, 2025, with significant obligations due in the next 1-3 years[176]. - The company anticipates incurring future expenditures related to mine closure and environmental obligations totaling $126.1 million over the next 30 years[177]. Production and Sales - Hecla Mining Company produced 4.1 million ounces of silver, with increased production at Lucky Friday and Keno Hill offsetting decreases at Greens Creek[100]. - Silver sales for Q1 2025 amounted to $118.153 million, up from $86.233 million in Q1 2024, marking a year-over-year increase of approximately 37%[28]. - Sales for the Greens Creek segment rose to $118.1 million in Q1 2025, up from $97.3 million in Q1 2024[112]. - Keno Hill recorded sales of $16.9 million for the three months ended March 31, 2025, compared to $10.8 million in the same period of 2024, representing a 56.5% increase attributed to higher realized sales prices and volumes[130]. - Casa Berardi's sales increased to $56.0 million in Q1 2025 from $41.6 million in Q1 2024, with a gross profit of $5.3 million compared to a gross loss of $16.7 million in the prior year[138][140]. Cost Structure and Efficiency - The cost of sales and other direct production costs for Q1 2025 was $187.335 million, compared to $170.368 million in Q1 2024, reflecting increased operational costs associated with higher sales[23][24]. - Cash Cost per ounce of silver was reported at $1.29, while All-In Sustaining Cost (AISC) was $11.91 for the three months ended March 31, 2025[104]. - Cash Cost, After By-product Credits, per Silver Ounce decreased to $(4.08) in Q1 2025 from $3.45 in Q1 2024, primarily due to increased by-product credits[117]. - AISC, After By-product Credits, per Silver Ounce improved to $(0.03) in Q1 2025 compared to $7.16 in Q1 2024, benefiting from lower sustaining capital expenditures[117]. - By-product credits for the total silver properties amount to $86.164 million, significantly impacting the overall cost structure[157]. Market and Economic Factors - The company’s financial results are influenced by fluctuations in market prices for silver, gold, zinc, lead, and copper, with potential impacts from tariffs and trade restraints[96]. - The company faces potential adverse impacts from tariffs, particularly a 10% baseline tariff and 125% tariffs on products sold to China, which could materially affect its financial condition and results of operations[200]. - The company has significant sales of products shipped to Asia, indicating reliance on maritime transport operators[201]. Internal Controls and Compliance - The company evaluated the effectiveness of its disclosure controls and procedures as of March 31, 2025, concluding they were effective[194]. - The company’s internal control systems are designed to provide reasonable assurance regarding financial statement preparation, despite inherent limitations[195]. - No changes in internal control over financial reporting materially affected the company during the three months ended March 31, 2025[194].