Financial Data and Key Metrics Changes - The company achieved record sales of $304 million, net income applicable to common shareholders of nearly $58 million, and record adjusted EBITDA of $133 million, improving the net leverage ratio to 0.7 times [14][18] - Generated cash from operations of over $160 million and record quarterly free cash flow of $104 million [14][18] Business Line Data and Key Metrics Changes - Silver production was 4.5 million ounces and gold production was nearly 46,000 ounces, with cash costs of negative $5.46 per ounce and all-in sustaining costs of $5.19 per ounce [15][21] - Casa Berardi's unit costs dropped by over $600 per ounce compared to the prior quarter, with second-quarter gold production increasing 37% to just over 28,000 ounces [15][25] Market Data and Key Metrics Changes - Silver made up 41% of consolidated revenue, while gold increased to 42% based on performance and price increases [19] - Margins expanded from 65% last quarter to 85% this quarter, with silver all-in sustaining costs at $5.19 per ounce after byproduct credits [19] Company Strategy and Development Direction - The strategic vision focuses on operational excellence, portfolio optimization, disciplined capital allocation, and maintaining silver market leadership [5][6] - The company is prioritizing high-return projects while strengthening its balance sheet, with a focus on free cash flow generation [7][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving production targets at Keno Hill, emphasizing a systematic approach to ramping up production while maintaining ESG commitments [12][13] - The company aims to create long-term value through disciplined capital allocation and strategic reviews of its assets [30][32] Other Important Information - The company is focusing on organic growth and has initiated a partial redemption of $212 million of senior notes to improve its balance sheet [17][20] - The exploration program continues to deliver consistent results, replacing depletion and growing the resource base [13] Q&A Session Summary Question: What was driving the higher grades and outperformance at Greens Creek? - Management indicated that good execution and additional areas with better grades were the main reasons for the performance [38] Question: What has changed regarding the production target at Keno Hill? - The company expanded operational flexibility and focused on reducing overbreak and controlling dilution, which supports the revised production target [41] Question: Why retire a large amount of notes with a significant term left on the debt? - Management stated that funds previously used for the Silverlink dividend and debt service would be better invested in operations and growth opportunities [44] Question: Can you provide color on the expected stripping ratio improvements at Casa Berardi? - The stripping ratio is expected to decrease as the pit nears the end of its mine life, with a projected 10% decrease by year-end [54] Question: What is the anticipated trajectory of throughput at Keno Hill? - The ramp-up to 440 tonnes per day will be gradual, with expectations of reaching approximately 330 tonnes per day by 2027 [84]

Financial Data and Key Metrics Changes - The company achieved record sales of $304 million, net income applicable to common shareholders of nearly $58 million, and record adjusted EBITDA of $133 million, improving the net leverage ratio to 0.7 times [16][20] - Generated cash from operations of over $160 million and record quarterly free cash flow of $104 million [16][20] - Silver production reached 4.5 million ounces and nearly 46,000 ounces of gold, with cash costs of negative $5.46 per ounce and all-in sustaining costs of $5.19 per ounce [16][20] Business Line Data and Key Metrics Changes - Greens Creek produced 2.4 million ounces of silver, a 21% increase over the first quarter, with cash costs of negative $11.91 per ounce [23] - Lucky Friday maintained consistent silver production of 1.3 million ounces, with cash costs of $6.19 per ounce and all-in sustaining costs of $19.07 per ounce [25] - Keno Hill achieved silver production of over 750,000 ounces, marking its first positive free cash flow quarter under current ownership [27] Market Data and Key Metrics Changes - Silver accounted for 41% of consolidated revenue, while gold increased to 42% due to performance improvements at Casa Berardi and Greens Creek [21] - The increase in silver prices led to an expansion in margins, growing from 65% last quarter to 85% this quarter [21] Company Strategy and Development Direction - The company focuses on four key pillars: operational excellence, portfolio optimization, disciplined capital allocation, and maintaining silver market leadership [6][7] - The strategic review of Casa Berardi is progressing well, with updates expected in the coming weeks [7][20] - The company aims to prioritize high-return projects while strengthening its balance sheet, emphasizing free cash flow generation [8][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving production targets at Keno Hill through systematic capital deployment and optimization strategies [11][15] - The company is focused on creating long-term value and reducing debt to enhance cash flow for reinvestment in operations [48][50] - The management highlighted the importance of jurisdictional security and operational stability in the current geopolitical climate [98][100] Other Important Information - The company is committed to ESG leadership and aims to strengthen partnerships with First Nations while maintaining safety excellence [6][9] - The average reserve mine life of 14 years is double the industry peer average, providing stability and long-term value creation potential [35][36] Q&A Session Summary Question: What was driving the higher grades and outperformance at Greens Creek? - Management indicated that good execution and additional areas with better grades were the main reasons for the performance [42] Question: What has changed regarding the production target at Keno Hill? - The company expanded operational flexibility and focused on reducing overbreak and controlling dilution [44] Question: Why retire a large amount of notes with a significant term left on the debt? - Management stated that funds would be better served by reinvesting in operations rather than servicing debt [48] Question: Can you provide guidance on the stripping ratio at Casa Berardi? - The stripping ratio is expected to decrease as the pit nears the end of its mine life, with a projected 10% decrease by year-end [58] Question: What is the current thinking on advancing Montana assets? - The focus remains on completing the Casa review, with potential for partnerships in the future [94]

Financial Data and Key Metrics Changes - The company reported record quarterly revenues of $261 million, with a significant increase in silver margins from 54% in 2024 to 65% in Q1 2025 [17][12] - Adjusted EBITDA exceeded $90 million, driven by higher metal prices and solid contributions from all operating mines [12][17] - The net leverage ratio improved from 2.7 times to 1.5 times, with a cash position of approximately $20 million at the end of the quarter [13][14] Business Line Data and Key Metrics Changes - Greens Creek produced 2 million ounces of silver, with a 10% increase in silver grade compared to the previous quarter [18] - Lucky Friday achieved a quarterly milling record of almost 109,000 tons, producing 1.3 million ounces of silver [20] - Keno Hill produced over 770,000 ounces of silver and delivered its first profitable quarter under Hecla's ownership [23][24] Market Data and Key Metrics Changes - 45% of revenue came from silver, 33% from gold, and 22% from base metals, benefiting from improved gold prices [17] - The company maintained its production and capital investment guidance for the year, with adjustments to individual asset cost projections [12] Company Strategy and Development Direction - The company focuses on operational excellence, optimizing its portfolio for maximum returns, and maintaining financial discipline with a structured capital allocation framework [9][10][12] - Commitment to silver market leadership as the largest producer in the U.S. and Canada, with a focus on ESG practices [9][10] - The company is evaluating strategic alternatives for Casa Berardi, including potential sale or joint venture [16][90] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's promising future, emphasizing the importance of operational improvements and disciplined capital allocation [6][10] - The company is prepared for potential impacts from tariffs but has not yet seen significant disruptions in supply chains [35][39] - Future profitability at Keno Hill will depend on achieving higher throughput rates and successful permitting processes [24][55] Other Important Information - The company is investing over $3.3 million in targeted exploration programs in Nevada, focusing on high-grade properties [27] - The Libbey exploration project in Montana has secured a significant milestone for federal permitting [11] Q&A Session Summary Question: Impact of tariffs on operations - Management acknowledged potential minor impacts on consumables but noted proactive measures to stock parts [35][39] Question: Downtime during turbine repairs - The turbine repair is expected to last six days in August, with an estimated impact of 90,000 ounces of silver [43][44] Question: Keno Hill's production capacity - Management indicated that achieving a sustainable mining rate of 600 tons per day will take time and requires further permitting [50][55] Question: Updates on Casa Berardi sale - The company is exploring all strategic alternatives for Casa Berardi and will provide updates in Q2 [90][91] Question: Labor cost increases at Lucky Friday - Labor costs have risen due to increased contractor use and profit-sharing programs linked to strong performance [81][82]

Financial Data and Key Metrics Changes - The company reported record quarterly revenues of $261 million, with a 45% contribution from silver, 33% from gold, and 22% from base metals [18][19] - Adjusted EBITDA exceeded $90 million, driven by higher metal prices and solid contributions from all operating mines [13][18] - The net leverage ratio improved from 2.7 times to 1.5 times, with a cash position of approximately $20 million at the end of the quarter [14][18] Business Line Data and Key Metrics Changes - Greens Creek produced 2 million ounces of silver, with a 10% increase in silver grade, and cash costs were significantly better than annual guidance [19][20] - Lucky Friday achieved a quarterly milling record of almost 109,000 tons, producing 1.3 million ounces of silver, but faced cost pressures with cash costs at $9.37 per ounce [22][23] - Keno Hill produced over 770,000 ounces of silver and delivered its first profitable quarter under Hecla's ownership, with a gross profit of $1 million [24][25] Market Data and Key Metrics Changes - Silver prices increased, leading to improved silver margins from 54% in 2024 to 65% in the current quarter [18] - The company maintained its production and capital investment guidance for the year, with adjustments to individual asset cost projections [13][18] Company Strategy and Development Direction - The company focuses on operational excellence, optimizing its portfolio for maximum returns, and maintaining financial discipline with a structured capital allocation framework [10][11] - Commitment to silver market leadership as the largest producer in the U.S. and Canada, with long-lived mines in top-tier jurisdictions [10][11] - The company is exploring disciplined acquisition strategies aligned with its core strengths [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's promising future, emphasizing the importance of environmental stewardship and community partnerships [7][11] - The strategic review of Casa Berardi is ongoing, with options including outright disposal or joint ventures [17][88] - Management acknowledged challenges in permitting timelines but remains optimistic about the potential for Keno Hill and Nevada assets [50][91] Other Important Information - The company is investing over $3.3 million in a targeted exploration program at its high-grade properties in Nevada [28] - The Libbey exploration project in Montana secured placement on the FAST 41 permitting dashboard, streamlining federal approvals [12] Q&A Session Summary Question: Impact of tariffs on operations - Management noted that while there may be higher costs for consumables like rebar and steel due to tariffs, they have not experienced significant delays in parts availability [35][36][38] Question: Turbine repair downtime at Yukon Energy Corporation - The turbine repair is expected to last six days in August, with an estimated impact of losing 90,000 ounces of silver during that period [43][44] Question: Keno Hill's production capacity and permitting - Management indicated that reaching a sustainable mining rate of 600 tons per day will take several years, with a focus on ramping up production at existing deposits [50][54] Question: Updates on Casa Berardi sale - The company is exploring all strategic alternatives for Casa Berardi, including potential sale or joint ventures, with an update expected in Q2 [88][89] Question: Confidence in cost guidance revisions - Management expressed confidence in the revised cost guidance, noting that profit-sharing could lead to lower costs if metal prices decline [100][101]

Hecla Mining Company (HL) Q1 2025 Earnings Call May 02, 2025 10:00 AM ET Speaker0 Thank you for standing My name is Bailey, and I will be your conference operator today. At this time, I would like to welcome everyone to the Q1 twenty twenty five Hecla Mining Company Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. I would now like to turn the call over to Mike Parkin, Vice President, Strate ...