Hecla Mining pany(US:HL)2025-05-02 15:02Financial 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]