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 excellence at core mines.

• Free cash flow was $28.3 million, with all operations generating positive free cash flow, notably Greens Creek and Lucky Friday; net debt reduced by $25.1 million and net leverage ratio improved to 2.3x.

• Silver production projected to grow to 17 million ounces in 2024 and potentially 20 million ounces by 2026, with all four mines expected to be in operation.

• Ongoing CEO search with strong candidate interest and confidence in future leadership.

• 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; 46% of revenue from silver, 34% from gold, and 20% from byproduct credits.

• Gross profit rose to $51.4 million, adjusted EBITDA reached a record $90.9 million, and cash provided by operating activities was $78.7 million.

• Free cash flow for Q2 2024 was $28.3 million; YTD 2024 cash flow from operations totaled $95.8 million.

• Net leverage ratio improved to 2.3x, with a target of below 2x by year-end.

• Realized silver price in Q2 2024 was $29.77/oz; consolidated silver AISC was $12.54/oz.

Outlook and guidance

• 2024 silver production guidance maintained at 16.5–17.5 million ounces; gold production 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 capital guidance raised to $45–$50 million to support key projects.

• Expectation to pay down revolver and reduce net leverage ratio below 2x by year-end.