Hecla reports net income of $54.2 million in 2009
COEUR d'ALENE - Hecla Mining Company on Wednesday announced it had net income of $54.2 million, the third highest in Hecla's 119-year history, for 2009.
The company also saw record silver production of 10.9 million ounces, a 26 percent increase compared to the prior year period and the third consecutive year of increased silver production.
It also announced the Lucky Friday Mine could be open through 2028.
"Hecla is a different company today than any time in the past," said Hecla Mining Company President and Chief Executive Officer Phillips S. Baker Jr. "We are seeing the effect of owning all of Greens Creek for a full year with record production of silver, lead and zinc."
The higher production combined with metals prices allowed Hecla to generate more operating cash than any time in our history, and Hecla ended the year with almost $105 million in cash and no debt.
"The future looks bright as we replaced mined material and increased silver reserves to 140 million ounces," he said.
Hecla reported net income of $67.8 million, or 24 cents per share in 2009, compared with a net loss of $66 million, or 57 cents per share, in 2008.
Hecla reported net income of $54.2 million in 2009, compared to a loss of $80.2 million in 2008.
Fourth-quarter net income was $32.1 million, compared to a loss of $37.3 million, in the fourth quarter of 2008.
Baker said the increase of silver production came from almost doubling silver reserves at Lucky Friday as the grade increases at depth.
"With our increased production, low-cost structure at long-lived mines, we expect Hecla to generate significant cash flow that can be deployed to continue reserve and production growth," he said.
2009 HIGHLIGHTS
n Gold production increased to 67,278 ounces
n Gross profit increased to $101 million, a record for Hecla
n Revenue of $313 million, the highest in a yearly period
n Repaid $161.7 million of bank debt
n 5 percent increase in proven and probable silver reserves to 140 million ounces, a record high for Hecla
During 2009, average prices for silver, lead and zinc were lower compared with prices in 2008 while gold prices were higher. Metal prices improved throughout the year and were strongest in the fourth quarter of 2009.
The Lucky Friday mine produced 3.5 million ounces of silver in 2009, a 23 percent increase over 2008 production of 2.9 million ounces.
The mine also produced 22,010 tons of lead and 10,616 tons of zinc in 2009, which compares with production of 18,393 tons of lead and 9,386 tons of zinc in 2008.
"The performance at the Lucky Friday mine exceeded all operational benchmarks, with silver production of more than 3.5 million ounces, the most since the year 2000," Baker said. "The mill processed more ore than any other time in its 67-year history, making this the fifth consecutive year of increased throughput.
He said there is a significant opportunity ahead to increase silver production at a low cash cost.
"Importantly, this would bring production growth and extend the mine-life at Lucky Friday to at least year 2028," he said.