Hecla Mining pany(US:HL)2025-05-02 14:00Financial Data and Key Metrics Changes - The company reported record quarterly revenues of $261 million, with adjusted EBITDA exceeding $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, and the cash position improved to approximately $20 million [13][14] - Silver margins increased from 54% in 2024 to 65% in the current quarter [17] 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 [18] - 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 [20] - Keno Hill produced over 770,000 ounces of silver and delivered its first profitable quarter under Hecla's ownership [22] 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 remains committed to silver market leadership as the largest producer in the U.S. and Canada [9] Company Strategy and Development Direction - The company’s strategy is built on four pillars: operational excellence, portfolio optimization, financial discipline, and silver market leadership [6][8] - A disciplined acquisition strategy is being developed, focusing on maintaining a strong silver revenue mix while considering gold opportunities [11][12] - The company is committed to environmental stewardship and community partnerships, ensuring leadership in ESG practices [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's promising future, emphasizing the importance of operational excellence and cost control [6][10] - The company is focused on generating strong free cash flow while deleveraging and enhancing financial flexibility [29] - There are ongoing strategic reviews for Casa Berardi, with potential options including outright disposal or joint ventures [15][90] Other Important Information - The company is investing over $3.3 million in a targeted exploration program in Nevada, focusing on high-grade properties [27] - The Libbey exploration project has secured a significant milestone for federal permitting, which can streamline approvals [11] Q&A Session Summary Question: Impact of tariffs on operations - Management noted that while there may be higher costs for materials like rebar and steel due to tariffs, they have not experienced significant delays in parts availability [34][39] 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 [44][45] Question: Keno Hill's production capacity and permitting - Management indicated that achieving a sustainable mining rate of 600 tons per day will take time and is contingent on obtaining necessary permits [49][102] Question: Updates on Casa Berardi's strategic review - The company is exploring various strategic alternatives for Casa Berardi, including potential sales or joint ventures, with an update expected in Q2 [90][95] Question: Labor cost increases at Lucky Friday - Labor costs have risen due to increased use of contractors and profit-sharing programs linked to strong performance [80][82]