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 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]