Hecla Mining pany(HL) - 2025 Q1 - Quarterly Results

Financial Performance - Generated record sales of $261.3 million, a 5% increase over the prior quarter[5] - Reported net income applicable to common stockholders of $28.7 million, or $0.05 per share, compared to $11.8 million in the prior quarter[12] - Achieved record Adjusted EBITDA of $90.8 million during the quarter, a 5% increase over the prior quarter, with a net leverage ratio improved to 1.5x from 1.6x[16] - Free cash flow was negative $18.4 million, compared to positive $6.7 million in the prior quarter, primarily due to lower cash flow from operations[20] - Sales for the three months ended March 31, 2025, increased to $261,339,000 from $249,655,000 in the previous quarter, representing a growth of approximately 4.3%[97] - Gross profit rose to $74,004,000, compared to $68,334,000 in the prior quarter, reflecting an increase of about 8.9%[97] - Net income applicable to common stockholders for the quarter was $28,734,000, significantly up from $11,786,000 in the previous quarter, marking an increase of approximately 143%[97] - Basic income per common share increased to $0.05 from $0.02, indicating a 150% rise[97] Production and Sales - Produced 4.1 million ounces of silver and 34,232 ounces of gold, with silver production at Keno Hill increasing by 23% over the fourth quarter of 2024[5] - Greens Creek produced 2.0 million ounces of silver, a 5% increase from the prior quarter, due to a 10% increase in silver grade milled[23] - Lucky Friday produced 1.3 million ounces of silver, flat compared to the prior quarter, with lead and zinc production declining by 2% and 3% respectively[32] - Keno Hill produced 772,430 ounces of silver, a 23% increase over the prior quarter, with mill throughput averaging 305 tons per day[39] - Casa Berardi produced 20,473 ounces of gold, a 2% decrease over the prior quarter, due to lower underground grades and total milled tons[48] - Total ounces produced in the three months ended March 31, 2025, was 2.0 million, compared to 1.33 million in the same period of 2024, representing a 50% increase[109] Costs and Expenses - Consolidated silver total cost of sales was $129.6 million, an increase of 5% from the prior quarter, primarily due to higher production costs[13] - Cash costs and AISC per silver ounce were $1.29 and $11.91, respectively, higher than the prior quarter due to increased production costs[14] - Total cost of sales for Greens Creek was $69.6 million, a 3% increase over the prior quarter, primarily due to higher labor and fuel costs[25] - Total cost of sales for Lucky Friday was $44.0 million, up 10% over the prior quarter, driven by higher depreciation and labor costs[34] - Total cost of sales for Casa Berardi was $50.7 million, a 2% decrease over the prior quarter, with cash costs per gold ounce at $2,195 and AISC at $2,303[50] - Total cost of sales for the three months ended March 31, 2025, was $223,610,000 compared to $244,140,000 for the three months ended December 31, 2024, representing a decrease of approximately 8.4%[111] Guidance and Future Outlook - The company plans to strengthen the balance sheet in 2025 by targeting high-risk adjusted return projects and increasing free cash flow generation[8] - Production guidance for 2025 at Greens Creek is maintained at 8.1-8.8 million ounces of silver and 44.0-48.0 thousand ounces of gold[29] - Lucky Friday maintains silver production guidance of 4.7-5.1 million ounces, with cost of sales revised up to $165 million from $135 million[36] - Casa Berardi production guidance for 2025 remains at 76.0-82.0 koz of gold, with cost of sales revised up to $180 million from $165.5 million[52] - Consolidated silver production is expected to be 15.5-17.0 million ounces and gold production is expected to be 120-130 koz in 2025[69] - Future guidance indicates an expected increase in production capacity by 15% in the next fiscal year, driven by new technology implementations[109] Strategic Initiatives - The company plans to expand its market presence through strategic acquisitions and new product developments in the upcoming quarters[109] - The company is considering strategic alternatives for Casa Berardi, including potential disposal or joint venturing[54] - The company is focusing on sustainability initiatives, with a projected increase in reclamation costs to $3.1 million, up from $2.1 million[109] - The company is actively exploring the Gallagher Definition zone, with drillhole GC6604 yielding 56.8 oz/ton of silver over a true width of 4.4 feet[128] - The company remains committed to advancing its exploration strategy to unlock additional value from its assets[128] Exploration and Development - Exploration and pre-development expenses totaled $4.5 million in the first quarter, with increased spending anticipated in the second and third quarters[56] - The Libby Exploration Project has inferred resources of 183.3 million ounces of silver and 759 thousand tons of copper, currently under environmental assessment review[65] - The company is focusing on expanding its exploration activities in the Yukon region, particularly in the Keno Hill area[126] - The drilling results from the Greens Creek project indicate significant silver and gold grades, with a notable sample showing 278.0 oz/ton of silver over a true width of 2.8 feet[128] Cash Flow and Capital Expenditures - Cash flow from operations for Keno Hill was negative $9.7 million, reflecting unfavorable working capital changes[42] - Cash flow from operations decreased by 20% to $9.9 million due to unfavorable working capital changes[51] - The company reported a decrease in accounts payable and other current accrued liabilities to $114,933,000 from $127,988,000, a reduction of about 10%[101] - The company incurred $54,095,000 in additions to properties, plants, and equipment in Q1 2025[123] - Cash provided by operating activities for Q1 2025 was $1,060,150,000, a decrease from $317,861,000 in Q1 2024[124]