• Silver Production: 4.1 million ounces.
• Gold Production: More than 34,000 ounces.
• Record Revenue: $261 million.
• Adjusted EBITDA: Exceeding $90 million.
• Free Cash Flow: More than $40 million from Green's Creek and Lucky Friday.
• Net Leverage Ratio: Improved to 1.5 times from 2.7 times a year ago.
• Cash Position: Approximately $20 million at the end of the quarter.
• Silver Margins: Improved from 54% in 2024 to 65% this quarter.
• Green's Creek Silver Production: 2 million ounces.
• Green's Creek Cash Costs: Negative $4.08 per ounce.
• Lucky Friday Silver Production: 1.3 million ounces.
• Lucky Friday Cash Costs: $9.37 per ounce.
• Keno Hill Silver Production: Nearly 800,000 ounces.
• Keno Hill Gross Profit: $1 million.
• Casa Berardi Gold Production: About 20,500 ounces.
• Casa Berardi Cash Costs: $2,195 per ounce.

• Warning! GuruFocus has detected 5 Warning Signs with MERC.

Release Date: May 02, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Hecla Mining Co (NYSE:HL) reported record quarterly revenues and adjusted EBITDA exceeding $90 million, driven by higher metal prices and solid contributions from all four operating mines.
• The company achieved a strong quarter with 4.1 million ounces of silver and more than 34,000 ounces of gold produced, positioning well against annual guidance.
• Lucky Friday set a consecutive quarterly milling record, demonstrating exceptional consistency and operational excellence.
• Keno Hill delivered its first profitable quarter under Hecla's ownership, producing nearly 800,000 ounces of silver.
• Hecla Mining Co (NYSE:HL) improved its net leverage ratio from 2.7 times to 1.5 times and increased its cash position to approximately $20 million.

Negative Points

• The company faces cost pressures at Lucky Friday, with cash costs at $9.37 per ounce due to higher labor costs, profit sharing, consumables, and contractor costs.
• Keno Hill's mining rates have lagged behind its mill capacity, requiring permits and infrastructure investments to achieve sustainable production levels.
• Casa Berardi's cash costs and all-in sustaining costs came in above full-year guidance, with improvements expected in the second half of the year.
• The company is experiencing negative working capital adjustments due to inventory build-up and increased accounts receivable.
• Hecla Mining Co (NYSE:HL) faces potential challenges from tariffs impacting costs for items like rebar and steel, although proactive measures have been taken to mitigate these effects.

Q & A Highlights

Q: Have there been any components or inputs delayed due to tariffs, and how have they impacted pricing or availability across your mines? A: Russell Lawlar, CFO, explained that while they anticipate higher costs for items like rebar and steel due to tariffs, they haven't faced significant delays in obtaining parts. They have been proactive in stocking parts and most purchases are sourced within the U.S., Canada, or Mexico, which are generally exempt from tariffs. The company is insulated from direct tariff impacts on exports to China, but they may see cost increases in 2026.

Q: Regarding the Yukon Energy Corporation turbine repair, will the site be down, and what is the expected financial impact? A: Carlos Aguiar, VP of Operations, stated the repair is expected to last six days, and they plan to advance maintenance projects during this period. The estimated economic impact is 90,000 ounces of silver, with associated labor costs.

Q: How much capital and time would it take to get Keno Hill to 600 tons per day, and what metal prices would justify curtailing production? A: Robert Krcmarov, EVP of Exploration and Growth, noted that reaching 600 tons per day will take a few years. They need to sustainably mine at 400 tons per day first. Permits and infrastructure improvements are necessary, and they are working on expanding water treatment and tailing facilities.

Q: Can you provide more details on the growth outlook in Nevada and potential production timelines? A: Kurt Allen, VP of Exploration, mentioned they are focusing on high-grade vein targets at Midas with two drill rigs. They expect to have exploration results in 2-4 years, which could lead to production scenarios in 4-5 years, depending on results and permitting.

Q: What are the strategic alternatives for Casa Berardi, and how do higher gold prices affect this? A: Robert Krcmarov stated they are considering various options, including sale, joint venture, or spin-out. The strategic review is ongoing, and they will provide an update in Q2. Higher gold prices have improved the asset's outlook.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.