looking good
Hecla banks US$100 million on record metal production
Hecla Mining Co. Jan. 14 reported record silver production in 2009 of 10.9 million ounces, up 26 percent from its output in 2008. The owner of the Greens Creek Mine in Southeast Alaska also scored production records for lead and zinc with about 44,000 short tons and 80,000 short tons in output, respectively.
Importantly, record production and improved prices for metals in 2009 significantly increased operating cash flow, allowing the Idaho-based miner to have more than US$100 million in cash on hand at year’s end. This is after repaying a debt of US$38.3 million during the fourth quarter of 2009. Hecla is now debt free.
Hecla is forecasting about 10 million to 11 million ounces of silver production in 2010. If metal prices remain at current levels, the company expects cash costs in 2010 to fall below US$2 per ounce for silver produced.
“2009 was an exceptional year for Hecla with the record quantities of metal produced, increased silver production for the third consecutive year and a cash cost of less than US$2 per ounce,” said Hecla President and CEO Phillips S. Baker, Jr. “With the cash generated, we were able to repay our debt early and still have more than US$100 million of cash.”
Baker said the company also established a new revolving credit facility. “We expect 2010 to be just as strong with similar production and cash costs. So between the cash on hand, our credit facility and the cash flow we will generate in 2010 and beyond, Hecla is well-positioned for growth,” he added.