Hecla Mining Company (HL) Q3 2024 earnings summary

Executive summary

• Leadership transition with Rob Krcmarov appointed as President and CEO, emphasizing organic growth, operational excellence, and stakeholder engagement, especially in Yukon.

• Largest silver producer in the U.S. and Canada, with a diversified portfolio, best-in-class reserve lives, and operations in top mining jurisdictions.

• Q3 2024 marked by record silver segment revenues of $245.1 million, strong free cash flow, deleveraging, and continued investment in key assets, especially Keno Hill.

• Produced 3.6 million oz silver and 32,280 oz gold in Q3; YTD silver output up 8% to 12.3 million oz, gold at 106,196 oz.

• Commitment to responsible mining, ESG practices, and long-term relationships with local communities and First Nations.

Financial highlights

• Q3 2024 revenue reached $245.1M, with silver accounting for 58% of revenues; realized silver price was $29.77/oz.

• Net leverage ratio improved to 1.8x from 2.3x in the prior quarter, a 22% improvement over Q2 2024.

• Q3 gross profit rose to $59.3M; net income to common stockholders was $1.6M; adjusted EBITDA was $88.9M.

• Cash and cash equivalents at quarter-end were $22.3M, with $13M drawn on the revolver.

• Silver-linked dividend payout of $8.7M in Q3; $16.7M in dividends paid YTD.

Outlook and guidance

• 2024 silver production guidance: 16.0–17.0 Moz; gold: 126–138 Koz; Greens Creek: 8.6–9.0 Moz; Lucky Friday: 4.7–5.0 Moz; Keno Hill: 2.7–3.0 Moz.

• Casa Berardi gold production guidance: 80–87 Koz; transitioning to surface-only operation by mid-2025, with a production gap expected from 2027–2032.

• Consolidated AISC guidance for silver: $13.00–$14.50/oz; for gold: $1,750–$1,975/oz.

• Capital and exploration expenditures for 2024 expected at $196–$218M, with $153.7M already spent YTD.

• Keno Hill 2025 production expected to remain at 2024 levels to prioritize stakeholder engagement and permitting.