Hecla Mining pany(HL)2024-05-09 16:00Financial Performance - Sales for Q1 2024 were $189,528,000, a decrease of 4.9% from $199,500,000 in Q1 2023[10] - Gross profit for Q1 2024 was $19,160,000, down 45.0% from $34,948,000 in Q1 2023[10] - Net loss for Q1 2024 was $5,753,000, compared to a net loss of $3,173,000 in Q1 2023, representing an increase in loss of 81.2%[10] - The company reported a comprehensive loss of $11,156,000 for Q1 2024, compared to a comprehensive income of $3,343,000 in Q1 2023[10] - The company reported a net loss applicable to common stockholders of $5.891 million for Q1 2024, compared to a net loss of $3.311 million for the same period in 2023, representing a 77.0% increase in net loss year-over-year[32] - The basic loss per common share for the three months ended March 31, 2024, was $(0.01), consistent with the basic loss per common share of $(0.01) for the same period in 2023[32] Cash Flow and Liquidity - Cash provided by operating activities decreased to $17,080,000 in Q1 2024 from $40,603,000 in Q1 2023, a decline of 58.1%[12] - Cash, cash equivalents, and restricted cash at the end of Q1 2024 were $81,332,000, down from $97,286,000 at the end of Q1 2023[12] - The company has cash and cash equivalents of $80.2 million as of March 31, 2024, down from $106.4 million as of December 31, 2023[59] - Cash and cash equivalents decreased by $26.2 million in Q1 2024, totaling $80.2 million compared to $106.4 million at the end of 2023[153] - Net draws on the revolving credit facility amounted to $12.0 million, resulting in an outstanding balance of $140.0 million at an interest rate of 8.0%[155] Assets and Liabilities - Total current assets as of March 31, 2024, were $255,250,000, a slight decrease from $260,262,000 as of December 31, 2023[14] - Total liabilities decreased to $1,035,628,000 as of March 31, 2024, from $1,043,000,000 as of December 31, 2023[14] - Total assets as of March 31, 2024, were $2.994 billion, a slight decrease from $3.011 billion as of December 31, 2023[26] - The company’s stockholders' equity was reported at $1.959 billion as of March 31, 2024[163] - Total contractual cash obligations as of March 31, 2024, were $871.4 million, with $230.9 million due within one year[156] Production and Sales - Hecla Mining Company produced 4.2 million ounces of silver and 36,592 ounces of gold in Q1 2024, with total sales of $189.5 million[93] - Silver sales increased to $86.233 million in Q1 2024 from $81.532 million in Q1 2023, while gold sales decreased to $67.415 million from $75.087 million[25] - Total metal sales decreased to $185.1 million in Q1 2024 from $199.0 million in Q1 2023, primarily due to lower sales volumes of gold and base metals[94] - The Greens Creek segment produced 2,478,594 ounces of silver in Q1 2024, down from 2,772,860 ounces in Q1 2023, reflecting a decrease of approximately 10.6%[104] - The Lucky Friday segment's sales dropped to $35.3 million in Q1 2024 from $49.1 million in Q1 2023, a decline of about 28.0%[110] Costs and Expenses - Cash costs per ounce for silver were $4.78 in Q1 2024, compared to $2.14 in Q1 2023, indicating significant cost inflation[97] - AISC for silver was $13.10 per ounce in Q1 2024, up from $8.96 in Q1 2023, reflecting increased operational costs[97] - Consolidated gross profit decreased by $15.8 million, primarily driven by lower sales volumes for all metals produced except zinc and increased production costs[103] - The company reported a depreciation, depletion, and amortization expense of $48,907,000 for the quarter[137] - Sustaining capital expenditures amounted to $25,394,000, reflecting ongoing investment in operations[137] Debt and Financing - As of March 31, 2024, the total long-term debt balance was $507.310 million, slightly down from $508.000 million as of December 31, 2023[41] - The company increased its borrowing capacity to $225 million from $150 million under the amended Credit Agreement[175] - The maturity date of the Credit Agreement was extended to July 21, 2028, from July 21, 2026[175] Environmental and Legal Matters - Hecla Limited has accrued a liability of $10.1 million for the CERCLA removal action at the Johnny M Mine, which may increase due to the scope of required remediation[67] - The EPA has incurred approximately $9.6 million in response costs related to the San Mateo Creek Basin site, with potential liability for Hecla Limited and other PRPs[69] - The EPA estimates total remediation costs for the Carpenter Snow Creek site may exceed $100 million, with Hecla Limited potentially liable for cleanup costs[71] - Hecla Limited's Lucky Friday mine faces potential civil penalties of up to $59,973 per day for violations of the Clean Water Act[74] - The Keno Hill mine is charged with violations of the Quartz Mining Act and the Waters Act, with maximum fines of $100,000 per offense[75] Shareholder Returns - The company returned $4.0 million to shareholders through dividend payments in Q1 2024[93] - The total dividend per share declared for the first quarter of 2024 was $0.00625, unchanged from the first quarter of 2023[38] - The company declared dividends of $3.9 million in Q1 2024, compared to $3.8 million in Q1 2023, with a silver-linked component tied to realized silver prices[145] Future Outlook - Estimated capital expenditures for 2024 are projected to be between $190 million and $210 million, with $47.6 million already incurred as of March 31, 2024[151] - Exploration and pre-development expenditures for 2024 are estimated at approximately $32.5 million, with $4.3 million already incurred as of March 31, 2024[151] - The company anticipates continued capital expenditures and operational investments, particularly at Keno Hill and Casa Berardi, to support future growth[154]