Hecla Mining Company (HL) Q2 2024 earnings summary

Executive summary

• Achieved record quarterly revenues of $245.7 million in Q2 2024, with the second highest silver production in company history at 4.5 million ounces and strong gold output, driven by operational performance at Greens Creek and Lucky Friday.

• Net income to common stockholders was $27.7 million ($0.04/share), reversing a prior year loss, and adjusted net income was $12.3 million ($0.02/share).

• Free cash flow was $28.3 million, with all operations generating positive free cash flow, notably Greens Creek and Lucky Friday.

• Net leverage ratio improved to 2.3x, with net debt reduced by $25.1 million during the quarter and a target of below 2x by year-end.

• Quarterly cash dividend of $0.01375 per share declared, including a $0.01 silver-linked component.

Financial highlights

• Q2 2024 revenues reached $246 million, up from $220 million in Q1 2024, with 46% from silver and 34% from gold.

• Gross profit rose 168% to $51.4 million compared to the prior quarter, with adjusted EBITDA at a record $90.9 million.

• Free cash flow for Q2 2024 was $28.3 million, and year-to-date operating cash flow was $95.8 million.

• Realized silver price in Q2 2024 was $29.77/oz, with consolidated silver cash cost at $2.08/oz and AISC at $12.54/oz.

• Net leverage ratio improved to 2.3x in Q2 2024, a 15% improvement over Q1 2024.

Outlook and guidance

• 2024 silver production guidance maintained at 16.5–17.5 million ounces, with gold guidance increased for Casa Berardi due to extended underground operations.

• Greens Creek 2024 guidance: 8.8–9.2 million ounces silver, AISC lowered to $8.25–$9.00/oz.

• Lucky Friday 2024 guidance: 5.0–5.3 million ounces silver, AISC increased to $12.75–$14.00/oz.

• Keno Hill 2024 guidance: 2.7–3.0 million ounces silver, with cost guidance increased to $25–$27 million per quarter.

• Casa Berardi 2024 guidance: 80–87 thousand ounces gold, AISC $1,750–$1,975/oz; underground mining to cease by end of 2024.