Movers and Shakers November 9, 2011
Hecla Mining announces
third quarter net income
Hecla Mining Company on Tuesday announced third quarter net income of $55.8 million, or 20 cents per basic share. Third quarter silver production was 2.3 million ounces at a cash cost of 67 cents per ounce.
Third-quarter highlights include sales of $120.5 million, a four percent increase over the same period in 2010. Earnings after adjustments were $435.4 million, or 13 cents per basic share. Operating cash flow was $60.7 million, a 49 percent increase over the same period in 2010.
"Hecla's financial position and asset base is the strongest it's been in its history after a unique third quarter generating the highest net income and cash position, establishing a dividend, approving the No. 4 Shaft, initiating work to reopen three mines, and settling the Basin litigation," said Hecla's President and Chief Executive Officer, Phillips S. Baker Jr. "From this quarter, we are poised to grow production 50 percent over the next five years."
On Tuesday, Hecla's Board of Directors declared the first quarterly silver price-linked dividend under Hecla's recently announced silver price-linked dividend policy. The declared dividend is 2 cents per share of common stock, for a total amount of about $5.6 million, based on an average realized silver price of $37.02 in the third quarter 2011.
"Our board's action to declare this first silver price-linked dividend reflects Hecla's excellent operating margins and strong financial position," Baker said.
The cash dividend is payable Nov. 29 to stockholders of record on Nov. 18. There are about 279 million shares of common stock outstanding.
Northwest Bancorporation announces third quarter loss
Northwest Bancorporation, Inc., the bank holding company for Inland Northwest Bank, reported a net loss of $490,000 for the third quarter of 2011, compared to a profit of $528,000 reported for the third quarter of 2010.
The net loss applicable to common shares was $659,000 for third quarter 2011 compared to a profit of $358,000 for third quarter 2010. Earnings per diluted share applicable to common shares for third quarter 2011 and third quarter 2010 were 21 cents and 12 cents, respectively.
The company reported a net loss of $139,000 for the nine months ending Sept. 30, 2011, compared to a profit of $1.4 million for the first nine months of 2010.
"We had one large loan take a significant turn for the worse in the third quarter, which necessitated adding $2.5 million to our loan loss reserve," said Randall L. Fewel, president and CEO of both the company and the bank. "This is a major disappointment because we were making good progress on our troubled loans up to this point. But as the recession stubbornly continues in the Inland Northwest, some borrowers who have been struggling to hang on are simply giving up."
Fewel said that, aside from the lingering loan issues, most other aspects of the company's business are improving.
Idaho Independent Bank extends common stock offering
Jack W. Gustavel, chairman and chief executive officer of Idaho Independent Bank, announced that the bank has extended the deadline for participation in its previously announced common stock offering until 5 p.m. Nov. 30.
The offering commenced on Sept. 6. The public portion of the offering was originally scheduled to expire on Nov. 7.
Through Nov. 4, the bank has raised about $5.9 million in additional capital, before offering expenses, through the sale of 1,736,324 shares of common stock representing 84 percent of the total shares offered.
"We are pleased with the positive response we have received from existing and new shareholders and wish to allow additional time for those that have indicated a desire to participate," Gustavel said.
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