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

Financial Performance - Sales for Q3 2025 reached $409,542,000, a 67% increase from $245,085,000 in Q3 2024[10] - Gross profit for the nine months ended September 30, 2025, was $373,995,000, compared to $129,876,000 for the same period in 2024, representing a 188% increase[10] - Net income for the nine months ended September 30, 2025, was $187,303,000, significantly up from $23,878,000 in 2024, marking a 684% increase[10] - The company reported a comprehensive income of $96,329,000 for Q3 2025, compared to $4,932,000 in Q3 2024[10] - Hecla Mining Company reported a net income of $100.726 million for the three months ended September 30, 2025, compared to $1.761 million for the same period in 2024, indicating a significant increase in profitability[16] - For the nine months ended September 30, 2025, Hecla Mining reported a net income of $187.303 million, compared to a net income of $23.878 million for the same period in 2024, indicating strong year-over-year growth[19] - For the three months ended September 30, 2025, net income was $100.726 million, compared to $1.761 million for the same period in 2024, representing a significant increase[44] - Net income applicable to common stockholders reached $100.6 million in Q3 2025, a significant increase from $1.6 million in Q3 2024[106] - Net income applicable to common stockholders for the nine months ended September 30, 2025, was $186.9 million, significantly up from $23.5 million in the comparable 2024 period[123] Cash Flow and Liquidity - Cash provided by operating activities for the nine months ended September 30, 2025, was $345,583,000, compared to $150,807,000 in 2024, an increase of 129%[12] - Cash and cash equivalents at the end of Q3 2025 were $135,082,000, compared to $23,457,000 at the end of Q3 2024, indicating a significant increase[12] - As of September 30, 2025, the company had $133.9 million in cash and cash equivalents, with $117.1 million held in U.S. dollars and $16.8 million in foreign currency[206] - The company aims to maintain an acceptable level of debt and sufficient liquidity to fund operations, capital expenditures, and return cash to stockholders[196] Assets and Liabilities - Total assets as of September 30, 2025, amounted to $3,221,842,000, up from $2,981,060,000 at the end of 2024, reflecting an 8% increase[14] - Total liabilities decreased to $772,198,000 as of September 30, 2025, from $941,546,000 at the end of 2024, a reduction of 18%[14] - The company reported total stockholders' equity of $2.449 billion as of September 30, 2025, an increase from $2.310 billion as of July 1, 2025[16] - As of September 30, 2025, the long-term debt stood at $261.8 million, down from $495.2 million as of December 31, 2024[54] Production and Sales - The company’s total metal sales for the three months ended September 30, 2025, were $393.351 million, with significant contributions from its Greens Creek and Lucky Friday segments[24] - Metal sales for the nine months ended September 30, 2025, amounted to $945.033 million, compared to $665.141 million in 2024, reflecting a year-over-year increase of 42%[33] - Hecla Mining Company produced 4.6 million ounces of silver in Q3 2025, a 28% increase from 3.6 million ounces in Q3 2024, and 40,654 ounces of gold, up from 32,280 ounces in the same period[106] - Total metals production for silver increased to 4,590,276 ounces in Q3 2025 from 3,645,004 ounces in Q3 2024, representing a 26% increase[1] - Payable ounces of silver sold increased to 4,463,356 in Q3 2025 from 3,729,782 in Q3 2024, a rise of 20%[1] Capital Expenditures - Capital additions for the three months ended September 30, 2025, totaled $57.905 million, which supports ongoing operational improvements and expansions[24] - The company estimates capital expenditures for 2025 to be between $222 million and $242 million, with $170 million already incurred as of September 30, 2025[203] - Capital expenditures for 2025 amounted to approximately $170.0 million, with significant investments at Greens Creek ($31.3 million), Lucky Friday ($48.3 million), Casa Berardi ($45.1 million), and Keno Hill ($42.2 million)[110] Cost Structure - Cash Cost per ounce of silver for the three months ended September 30, 2025, was $(2.03), compared to $4.46 in the same period of 2024[114] - AISC after by-product credits per silver ounce decreased to $(2.55) for the three months ended September 30, 2025, from $7.04 in the comparable 2024 period[134] - Total cost of sales for the nine months ended September 30, 2025, was $414.1 million, up from $364.2 million in the same period of 2024[114] - Total cost of sales for silver operations was $157,470,000 for the three months ended September 30, 2025[185] - Total cost of sales for gold operations was $71,605,000 for the same period[186] Shareholder Returns - The company declared and paid a quarterly dividend of $0.00375 per common share during each of the first three quarters of 2025[51] - The company declared and paid dividends totaling $2.7 million for the three months ended September 30, 2025, compared to $8.7 million in the same period of 2024[198] - The company has a stock repurchase program authorized for up to 20 million shares, with 934,100 shares purchased at an average price of $3.99 per share as of September 30, 2025[200] Exploration and Development - The Greens Creek operation received a Clean Water Act Section 404 permit for a dry stack tailings expansion project, with work expected to commence in Q4 2025[106] - The Libby Exploration Project in Montana advanced with the U.S. Forest Service issuing a final decision notice, facilitating further exploration efforts[110] - The company is assessing strategic alternatives for Casa Berardi, including potential sale, joint ventures, or extending underground mining operations[162] Environmental and Regulatory - The company has surety bonds totaling $218.8 million in place for future reclamation and closure costs as of September 30, 2025[95] - The company anticipates falling within the scope of Pillar Two rules beginning January 1, 2026, but does not expect a material impact on its financial statements[39]