Hecla Mining Company (
) today announced a third quarter net loss applicable to common shareholders of $1.0 million, or $0.00 per basic share, and earnings after adjustments applicable to common shareholders of $3.2 million, or $0.01 per basic share. Third quarter silver production was up 19% from the previous quarter to 1.6 million ounces at a cash cost of $3.52 per ounce, net of by-products. Operating cash flow for the quarter was $35.2 million.
THIRD QUARTER 2012 HIGHLIGHTS
- Silver production of 1.6 million ounces, up 19% from the previous quarter, at a total cash cost (a non-GAAP measure) of $3.52 per ounce, net of by-products.
- Operating cash flow of $35.2 million.
- Net loss applicable to common shareholders of $1.0 million, or $0.00 per basic share, due primarily to non-cash mark-to-market adjustments related to the Company's long-term base metal hedging program.
- Earnings after adjustments applicable to common shareholders (a non-GAAP measure) of $3.2 million, or $0.01 per basic share.
- Lucky Friday rehabilitation work progresses to approximately 5700 level with production expected to resume in Q1/2013. Full-year 2013 silver production expected at more than 2 million ounces.
- Cash and cash equivalents of $232 million at September 30, 2012.
- Declaration of common stock dividend of $0.0225 per share, payable on or about December 5 to shareholders of record on November 27.
- Drilled very high-grade mineralization over exceptional widths at Greens Creek (Alaska).
- At San Sebastian, drilling of the Middle Vein has defined a very high-grade, gold-silver vein which is approximately 800 feet from the Hugh Zone.
"We are pleased to report that shaft rehabilitation at the Lucky Friday mine advanced on schedule during the third quarter, and we anticipate being in production in the first quarter of 2013 and ramping up through the year to more than 2 million ounces by year end," said Hecla's President and Chief Executive Officer Phillips S. Baker, Jr. "Work crews have completed the Silver Shaft rehabilitation work to approximately the 5700 level, which is 400 feet from the shaft bottom. Therefore, we have recalled all employees and begun preparatory work for sinking of the #4 Shaft."