Hecla Records Q3 Net Loss of $8.6 Million Despite Increased Silver Production

Hecla Mining Co. (NYSE:HL) announced its results for the third quarter of 2013, commenting that it incurred a net loss applicable to common shareholders of $8.6 million, or $0.03 per basic share. The loss was due mainly to lower average silver and gold prices.

The company’s silver production came in at 2.3 million ounces, a 42-percent increase from the year-ago period.

Other highlights include:

• Silver production of 2.3 million ounces at an average cash cost, after by-product credits, per silver ounce (a non-GAAP measure) of $7.40.² Silver production for 2013 is expected to be near the high end of previous guidance of 8 to 9 million ounces with cash costs, after by-product credits, per silver ounce at approximately $6.50.
• Lucky Friday mine, which re-opened in February, reached planned and historical throughput levels of more than 900 tons per day in September and have averaged above that rate since. Lucky Friday had a 121% increase in silver production and a 49% decrease in average cash costs, after by-product credits, per silver ounce, from the second quarter.
• Operating cash flow of negative $5.2 million, primarily due to a $25.4 million concentrate shipment made late in the quarter that settled early in the fourth quarter, and a $5.0 million production inventory buildup, primarily at Casa Berardi.
• Capital, exploration and pre-development expenditures are projected to be 24%, 29% and 41% less, respectively, than estimated at the beginning of the year, a total savings of approximately $69 million since the start of the year.
• Adjusted EBITDA (a non-GAAP measure) of $30.4 million.³
• Cash and cash equivalents of $238 million at September 30, 2013.
• Subsequent to the end of the third quarter, a quarterly dividend of $0.0025 per share of common stock, payable on or about December 4, 2013, to shareholders of record on November 25, 2013.

Click here to read the full Hecla Mining Co. (NYSE:HL) press release.