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Hecla Mining Company (
NYSE:HL) today announced 2012 revenue of $321.1 million and gross profit of $143.5 million with net income applicable to common shareholders of $14.4 million, or $0.05 per basic share, and earnings after adjustments applicable to common shareholders of $34.2 million, or $0.12 per basic share, for the year.
1 Full year silver production in 2012 was 6.4 million ounces at a total cash cost of $2.70 per ounce, net of by-products.
2FULL YEAR 2012 HIGHLIGHTS
Produced 6.4 million ounces of silver.
Total cash cost of $2.70 per ounce, net of by-products. 2
Operating cash flow of $69.0 million.
Cash and cash equivalents of $191.0 million at December 31, 2012.
Year-end silver reserve levels highest in Company history, increasing for the 7th consecutive year, with silver reserves up 2% to 150 million ounces. In addition, mineralized material increased by 7% to 22.4 million tons averaging 5.7 ounces of silver per ton and other resources increased by 37% to 23.4 million tons averaging 7.4 ounces of silver per ton.
Gold mineralized material increased fourfold to 1.7 million tons averaging 0.07 ounces of gold per ton and other resources increased 75% to 13.5 million tons averaging 0.05 ounces of gold per ton.
Exploration programs in 2012 succeeded in identifying new and highly prospective targets in addition to increasing resources at each of Hecla's pre-development and exploration projects.
FOURTH QUARTER 2012 HIGHLIGHTS
Net income applicable to common shareholders of $0.6 million, or $0.00 per basic share, and earnings after adjustments applicable to common shareholders of $10.2 million, or $0.04 per basic share. 1
Silver production of 2.1 million ounces at a total cash cost of $3.45 per ounce, net of by-products. 2
Completed cleaning and upgrading of Lucky Friday Silver Shaft. Production has resumed in Q1 2013.
Declared quarterly common stock dividend of $0.0125 per share of common stock, which includes a regular quarterly common stock dividend of $0.0025 per share and a special dividend of $0.01 per share.
(1) Earnings after adjustments applicable to common shareholders represents a non-U.S. Generally Accepted Accounting Principles (GAAP) measurement. A reconciliation of net income applicable to common shareholders (GAAP) to earnings after adjustments can be found at the end of the release.
(2) Total cash cost per ounce of silver represents a non-GAAP measurement. A reconciliation of total cash cost to cost of sales and other direct production costs and depreciation, depletion and amortization (GAAP) can be found at the end of this release.
Expected full year 2013 silver production of approximately 8 to 9 million ounces.
Consolidated company-wide cash costs (based on current metal prices) are expected to be approximately $5.00 per ounce of silver, net of by-products, consisting of approximately $3.25 per ounce at the Greens Creek mine and $11.00 per ounce at the Lucky Friday mine.
Lucky Friday's costs are expected to be higher in the first half of the year as it proceeds through a restart phase. Per ounce cash costs are expected to be approximately $17.00 in the first half of the year, and are expected to decline to approximately $9.50 per ounce during the second half.
Expected Company-wide capital expenditures of $152.0 million.
Expected $51.5 million for 2013 exploration and pre-development expenses.
"This past year, with the Lucky Friday down, Greens Creek generated strong silver production and cash flow to allow record capital investments that are expected to generate not only higher silver production in 2013, but expected organic growth well into the future. For the full year, the Company produced 6.4 million ounces of silver at a cash cost of $2.70 per ounce, still among the lowest costs and highest margins of the major primary silver producers," said Phillips S. Baker, Jr., President and Chief Executive Officer. "In 2013, we are expecting silver production levels to increase more than 25% to approximately 8 to 9 million ounces."