Hecla Mining Company Conference Call Summary Company Overview - Hecla Mining Company (NYSE:HL) has a long history of 134 years, primarily focused on silver mining in North America, specifically the U.S. and Canada [2][3] - The company is undergoing a generational change in management, with new leadership including CEO Rob Krcmarov, who has extensive experience in mining and finance [3][4] Key Assets - Hecla operates four producing mines: - Greens Creek: Located in Alaska, it is the flagship asset, producing silver, gold, lead, zinc, and some copper [3][4] - Lucky Friday: Situated in Idaho, it has been producing for about 80 years with a reserve life of nearly 17 years [4][18] - Keno Hill: A newer silver-focused mine in the Yukon, with a high grade of 950 grams per ton silver equivalent and a 16-year reserve life [21][22] - Casa Berardi: A gold mine in Quebec, combining open-pit and underground operations, generating significant free cash flow [26][27] Financial Performance - In Q2 2024, Hecla produced 13.4 million ounces of silver, making it the largest silver producer in the U.S. and Canada [9] - The average all-in sustaining cost (AISC) for silver production was approximately $13.06, significantly below the peer average [11] - The company reported $69 million in free cash flow from Greens Creek in Q2, contributing to over $100 million in the first half of the year [16] - Hecla's debt was reduced to $268 million by the end of Q2, with plans for further repayment using free cash flow [32][71] Strategic Focus - The management is focused on improving capital allocation and enhancing resource value, aiming to close the valuation gap compared to peers [8][9] - Hecla is committed to maintaining a strong focus on silver, with approximately 40% of Q2 revenue derived from silver sales [6][32] - The company is exploring opportunities in Nevada, with plans for increased exploration spending in the coming year [30][41] Market Outlook - There is a structural deficit in the silver supply, expected to support robust silver prices in the coming years [35] - The management is optimistic about the potential for higher silver prices, which could further enhance cash flow and support debt repayment [61][62] ESG and Safety Initiatives - Hecla emphasizes safety with a program called Safety 365, aiming to improve safety culture across its operations [12][13] - The company is also involved in reclamation work funded by the Canadian government, strengthening relationships with local communities and First Nations [24][50] Additional Insights - The management believes that the Keno Hill mine has significant potential, despite challenges in ramping up production [21][46] - Hecla is not currently pursuing major M&A but is open to low-cost acquisitions that can add value without diluting shareholder equity [69][70] Conclusion - Hecla Mining Company is positioned for growth with a strong focus on silver production, effective debt management, and strategic exploration initiatives. The new management team is committed to enhancing shareholder value through improved capital allocation and operational efficiency.
Hecla Mining Company (NYSE:HL) 2025 Conference Transcript