Hecla Mining pany(HL) - 2025 Q3 - Quarterly Results

Financial Performance - Record quarterly revenue of $409.5 million, a 35% increase over the prior quarter[4] - Net income applicable to common stockholders reached $100.6 million, or $0.15 per share, compared to $57.6 million in the prior quarter[14] - Adjusted EBITDA was $195.7 million, a 48% increase over the prior quarter[16] - Cash flow from operations totaled $148 million, with free cash flow of $90 million[2] - Revenue increased by 35% due to higher payable silver sold and increased precious metals and zinc prices[17] - Sales for the third quarter were $178.1 million, a 46% increase over the prior quarter, driven by higher realized prices and concentrate volumes sold[28] - Free cash flow reached $74.5 million, an 8% increase from the prior quarter, supported by a 53% rise in gross profit[29] - The company reported an increase in income and mining tax provision of $22.3 million, reflecting higher taxable income[17] - The company reported a gross profit margin of approximately 44% for the three months ended September 30, 2025, compared to 39.2% in the previous quarter[99] - Net income for the three months ended September 30, 2025, was $100,726,000, a significant increase from $57,705,000 in the previous quarter[101] Production and Costs - Silver production was 4.6 million ounces, a 2% increase compared to the prior quarter[4] - Total cost of sales for silver was $157.5 million, a 24% increase from the prior quarter[14] - Gold cash costs were $1,582 per ounce, with AISC at $1,746 per ounce[16] - Total production cost per ton at Greens Creek was $246.93, with a gross profit of $96.4 million[25] - Cash costs per silver ounce after by-product credits were $9.33, and AISC was $23.30, both increasing over the prior quarter due to higher production costs[35] - Total cost of sales was $81.7 million, up 39% from the prior quarter, primarily due to a 20% increase in concentrate volumes sold[28] - Total cost of sales for the nine months ended September 30, 2025, was $600,913,000, compared to $550,394,000 for the same period in 2024, showing an increase of 9.1%[99] - Total cost of sales for the three months ended September 30, 2025, was $470,000, compared to $600,000 for the same period in 2024, representing a decrease of approximately 21.67%[116] Cash Flow and Liquidity - Cash and cash equivalents at quarter end were $133.9 million, with no draw on the revolving credit facility[16] - Cash provided by operating activities was $148.0 million, nearly flat over the prior quarter, impacted by unfavorable working capital changes of $37.8 million[18] - Free cash flow decreased to $90.1 million from $103.8 million in the prior quarter, primarily due to lower cash flow from operations[19] - Net cash provided by operating activities for the nine months ended September 30, 2025, was $345,583,000, compared to $150,807,000 for the same period in 2024, reflecting a 129% increase[101] - Cash flow from operations improved by 34% to $22.1 million in Q3 2025, supported by higher silver prices and concentrate sales[42] Capital Expenditures and Investments - Capital investment remained flat at $57.9 million, with significant allocations to Lucky Friday ($16.9 million) and Keno Hill ($14.7 million)[19] - Capital investment guidance for sustaining capital was lowered to $45-$47 million, with growth capital guidance reduced to $2-$5 million[29] - The company invested $8.8 million in exploration activities during Q3 2025, focusing on high-impact discovery drilling and resource expansion[58] - Total capital expenditure guidance remains unchanged at $222 to $242 million for 2025[75] Guidance and Future Outlook - Silver production guidance for 2025 at Greens Creek was tightened to 8.4-8.8 million ounces, and gold production guidance was adjusted to 53.0-55.0 thousand ounces[29] - Silver production guidance for 2025 has been tightened to 2.9-3.1 million ounces, up from the previous guidance of 2.7-3.1 million ounces[43] - Gold production guidance for 2025 has been tightened to 92,000-95,000 ounces, up from the previous guidance of 90,000-95,000 ounces[54] - The company expects to maintain its current production levels and operational plans without significant revisions due to external risks[93] - Future guidance indicates a focus on cost reduction strategies and operational efficiencies to improve overall profitability[114] Exploration and Development - Greens Creek received authorization for future expansion activities, with construction anticipated to begin in Q4 2025[9] - The company is focusing on expanding its drilling program to enhance resource definition and increase production potential[135] - The exploration strategy includes targeting high-grade zones to optimize resource extraction and improve overall project economics[135] - The company plans to continue its drilling efforts in the upcoming quarters to further assess the potential of identified zones[135] Shareholder Returns - The Board of Directors declared a quarterly cash dividend of $0.00375 per share, payable on or about December 8, 2025[66] - The adjusted net income applicable to common stockholders is a key performance indicator, excluding certain impacts not reflective of underlying performance[127] - Basic adjusted net income per common stock for Q3 2025 was 0.12 cents, compared to 0.08 cents in Q2 2025[128] Debt and Leverage - Net leverage ratio improved to 0.3x from 0.7x in the prior quarter, reflecting substantial deleveraging[7] - Adjusted EBITDA for Q3 2025 is $195,695, with a total debt of $277,746 and net debt of $143,836, resulting in a net debt to LTM adjusted EBITDA ratio of 0.3[125] - The company incurred $13,405 in interest expenses for Q3 2025, up from $11,099 in Q2 2025[125]