Hecla sets first quarter records

COEUR d'ALENE - Hecla Mining Co., in Coeur d'Alene, on Monday said it had net income applicable to common shareholders of $43.2 million, or $0.16 per basic share.

First quarter silver production was 2.5 million ounces at a total cash cost of $1.03 per ounce, net of by-products.

"Hecla's first quarter results were records for revenue, gross profit and net income reflecting the strong operating performance and (higher) metals prices," said Hecla's President and Chief Executive Officer Phillips S. Baker Jr.

He said Hecla expects its balance sheet and growing cash flow will meet the company's financial obligations, fund capital projects that expand operations, and advance organic growth projects on Hecla's large land packages in the U.S. and Mexico.

First quarter revenues reached $136.4 million in the first quarter, which was a $56.5 million increase compared with the year-earlier quarter.

Gross profit was $79.6 million, more than double the amount from last year.

The good earnings news follows a tragedy at Lucky Friday Mine last month, when one miner was killed after a tunnel more than a mile underground collapsed on April 15.

Baker said, "Notwithstanding these (first quarter financial and operational) results, we are deeply saddened by the loss of Larry Marek, a family member, friend and colleague. He will be greatly missed."

Hecla's cash position on March 31 was $321.7 million, compared to $116.3 million of cash on hand a year earlier.

Capital expenditures at Hecla's operations totaled $21.8 million for the first quarter, which includes $14.4 million at Lucky Friday and $4.9 million at Greens Creek Mine, located in southeast Alaska.