Hecla Mining pany(US:HL)2021-08-05 18:08Financial Performance - Sales of products for Q2 2021 reached $217,983,000, a 31% increase from $166,355,000 in Q2 2020[12] - Gross profit for the first half of 2021 was $124,072,000, compared to $45,451,000 in the same period of 2020, representing a 173% increase[12] - Net income for the six months ended June 30, 2021, was $19,756,000, a significant recovery from a net loss of $31,213,000 in the same period of 2020[14] - For the three months ended June 30, 2021, Hecla Mining Company reported a net income of $785,000 compared to a net loss of $14,028,000 for the same period in 2020, indicating a significant turnaround in performance[18] - For the six months ended June 30, 2021, Hecla reported a net income of $19,756,000, a recovery from a net loss of $31,213,000 in the same period of 2020[19] - Income from operations for the three months ended June 30, 2021, was $26.462 million, compared to $10.551 million in the same period of 2020, reflecting a significant improvement[26] - The company reported a comprehensive income of $2.405 million for the three months ended June 30, 2021, and $23.208 million for the six months ended June 30, 2021[203][205] Cash Flow and Liquidity - Cash provided by operating activities for the first half of 2021 was $124,240,000, compared to $42,453,000 in the first half of 2020[14] - Cash and cash equivalents increased by $51.7 million in the first half of 2021, totaling $181.5 million compared to $129.8 million in the same period of 2020[178] - Cash flows from operating activities for the six months ended June 30, 2021, totaled $124.240 million, while cash flows from investing activities were $(53.311) million[207] - The company has a $250 million revolving credit facility, with no amounts outstanding as of June 30, 2021, except for $19.9 million utilized for letters of credit[179] Assets and Liabilities - Total assets as of June 30, 2021, were $2,671,238,000, slightly up from $2,667,724,000 at the end of 2020[16] - Total liabilities decreased to $950,556,000 as of June 30, 2021, from $977,239,000 at the end of 2020[16] - As of June 30, 2021, the company had long-term debt of $508,611,000, consisting of $475,000,000 in Senior Notes and $39,618,000 in IQ Notes[45] - The company reported a carrying value of $469.0 million for its Senior Notes, with a fair value of $520.1 million as of June 30, 2021[69] Production and Sales - Silver sales for the three months ended June 30, 2021, amounted to $92.765 million, up from $61.756 million in the same period of 2020, representing a 50.2% increase[28] - Total silver production for the first half of 2021 was 6,984,229 ounces, a 5% increase from 6,649,250 ounces in the first half of 2020[102] - Lead production increased significantly to 22,244 tons in the first half of 2021, compared to 14,087 tons in the same period of 2020, marking a 58% rise[102] - Sales for the Greens Creek Segment reached $113.8 million in Q2 2021, up from $84.9 million in Q2 2020, representing a 34% increase[113] - The Lucky Friday Segment reported sales of $39.6 million in Q2 2021, a significant increase from $11.5 million in Q2 2020[121] Dividends and Shareholder Returns - The company declared cash dividends of $1.125 per common share in Q2 2021, compared to $0.250 in Q2 2020[12] - The company declared quarterly cash dividends of 1.125 cents per share, resulting in a total dividend payment of $6.0 million in June 2021[42] - The company paid dividends of $10.991 million to stockholders during the six months ended June 30, 2021[207] Exploration and Development - Exploration expenses increased to $14,318,000 in the first half of 2021, compared to $4,492,000 in the same period of 2020[12] - The company is advancing permitting for the Rock Creek and Montanore projects while maintaining investments in exploration projects across eleven mining districts[96] - The company estimates exploration and pre-development expenditures will total approximately $48.5 million in 2021, including $17.9 million already incurred as of June 30, 2021[187] Environmental and Legal Matters - Hecla Limited faces a lawsuit seeking over $5 million in damages related to indemnification claims from CoCa Mines, Inc. concerning environmental liabilities[79] - The company has surety bonds totaling $180.2 million and letters of credit totaling $19.9 million in place for future reclamation and closure costs[82] - The EPA has incurred approximately $9.6 million in response costs related to the San Mateo Creek Basin site, where Hecla Limited may be liable for cleanup costs[74] Cost Management - Cash Cost per silver ounce for the three months ended June 30, 2021, was $0.18, a decrease from $4.97 in the same period of 2020[104] - AISC per gold ounce for the three months ended June 30, 2021, was $1,419, compared to $977 for the same period in 2020, indicating increased operational efficiency[104] - The company aims to reduce net debt while maintaining sufficient liquidity for operations and capital development[174] Market and Price Exposure - The company utilizes financially-settled forward and put option contracts to manage exposure to changes in prices for silver, gold, zinc, and lead[209] - A 10% change in metal prices could result in an approximate $12.3 million change in the total value of concentrates sold[210] - The company recorded net unrealized gains of approximately $11.1 million related to hedges included in accumulated other comprehensive loss as of June 30, 2021[53]