Hecla Mining Company (NYSE:HL) is a leading, low-cost silver producer with operating silver mines in Alaska (Greens Creek), Idaho (Lucky Friday), and Mexico (San Sebastian) and is a growing gold producer with operating mines in Quebec, Canada (Casa Berardi) and Nevada (Fire Creek). In addition to its diversified silver and gold operating and cash-flow generating base, Hecla has a number of exploration properties and pre-development projects in eight world-class silver and gold mining districts in North America. With an active exploration and development program, the company has consistently grown its reserve base for future production, with 2020 reserves totaling 212 million ounces of silver and 2.7 million ounces of gold reserves, calculated using some of the lowest price assumptions in the industry. Established in 1891, Hecla is headquartered in Coeur d’Alene, Idaho, and has a sister office in Vancouver, B.C. The company’s common stock has been traded on the New York Stock Exchange for over 50 years.
Today Hecla announced Q4 and full year 2020 financial and operating results.
Hecla offered the following highlights:
- Fourth quarter sales of $188.9 million; cash flow from operations of $64.9 million; free cash flow $28.3 million1 net income of $0.8 million; adjusted net income applicable to common shareholders of $13.0 million, or $0.02 per share2; and adjusted EBITDA of $55.8 million.3
- 2020 silver production of 13.5 million ounces, up 7% and gold production of 208,962 ounces, down 23%, from 2019, which was Hecla’s highest annual gold production.
- 2020 sales of $691.9 million (the highest in the Company’s history); cash flow from operations of $180.8 million; free cash flow of $89.8 million1; adjusted net income applicable to common shareholders of $23.1 million, or $0.04 per share2; net loss of $16.8 million; and adjusted EBITDA of $224.3 million.3
- Third highest silver and gold reserves in Company’s 130-year history despite significant interruptions to 2020 exploration program due to COVID-19.
- Exploration discoveries at Midas, Casa Berardi, San Sebastian, Heva Hosco, and Kinskuch expect to be further drilled in 2021.
- Net debt reduction of approximately $81 million, or 17%, from March 31, 2020.
- Year-end cash position of $130 million, an increase of $67 million from 2019 with the credit facility undrawn.
- All-Injury Frequency Rate (AIFR) of 1.22 for 2020, lowest in the Company’s history and a reduction of 24% over 2019.
- Lucky Friday returned to full production levels in the fourth quarter of 2020.
- Production guidance increases projected silver production over 2020 production.