Hecla Mining Reports Robust Production Growth

By Bobby Samwell • Tuesday, April 09 15:15 • Permanent Link

Hecla Mining Company (NYSE:HL) has just released its preliminary production results for the first quarter of 2024, and the numbers are in. Compared to the fourth quarter of 2023, the company has seen significant increases in silver and lead production, as well as improvements in various aspects of its operations.

In terms of silver production, Hecla reported a substantial 43% increase, with 4.2 million ounces produced in the first quarter of 2024. This surge was primarily driven by the strong performance of the Greens Creek mine, which saw a 10% increase in silver production, and the successful ramp-up to full production at the Lucky Friday mine, which yielded 1.1 million ounces of silver.

Notably, lead production skyrocketed by 129% and zinc production increased by 28%, attributed to the ramp-up at the Lucky Friday mine. Additionally, Keno Hill reported a 29% increase in throughput, contributing to a 6% rise in silver production over the prior quarter.

Gold production remained relatively stable, with 36,592 ounces produced in the first quarter, in line with the prior quarter. The Casa Berardi mine produced 22,004 ounces of gold, consistent with the prior quarter, despite a 5% increase in throughput being offset by lower grades.

Hecla's President and CEO, Phillips S. Baker, Jr., expressed optimism about the company's trajectory, stating that Hecla is on track to produce about 17 million ounces of silver in 2024, with expectations to increase to about 20 million ounces by 2026.

The positive production results are seen as positioning Hecla's shareholders to benefit from the continuing deficit in silver supply. These improvements come as the company continues to execute its plans, particularly at the Casa Berardi mine, which is transitioning to a fully surface operation.

Hecla Mining Company, founded in 1891, is the largest silver producer in the United States, operating mines in Alaska, Idaho, and Quebec, Canada. The company is also developing a mine in the Yukon, Canada, and owns various exploration and pre-development projects in North America's prime silver and gold mining districts. Following these announcements, the company's shares moved 2.8%, and are now trading at a price of $5.59. For more information, read the company's full 8-K submission here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.