Silver production increased 61% and gold
production increased 37%; Now expect to produce 15 million ounces
of silver in 2016
Hecla Mining Company (NYSE:HL) (Hecla or the Company) today
announced first quarter net loss applicable to common stockholders
of $0.8 million, or $0.00 per basic share, and adjusted net income
applicable to common stockholders of $7.2 million, or $0.02 per
basic share.1
FIRST QUARTER 2016 HIGHLIGHTS AND SIGNIFICANT ITEMS (compared
to Q1 2015)
- Sales of $131.0 million, up 10% on
higher production despite lower prices.
- Operating cash flow of $18.7 million,
down slightly on lower prices and accounts receivable
increase.
- Adjusted EBITDA of $46.5 million, a 33%
increase to highest level in three years.2
- Record silver production of 4.6 million
ounces at a cash cost, after by-product credits, per silver ounce
of $3.16.3
- Total gold production of 55,688 ounces,
of which 30,378 ounces were produced at Casa Berardi at a cash
cost, after by-product credits, per gold ounce of $781.3
- Record silver equivalent production of
12.0 million ounces.4
- Cash and cash equivalents of $134
million despite $20 million increase in working capital from the
San Sebastian startup and accounts receivable increase.
- Increased 2016 silver production
expectation to 15.0 million ounces (from 13.5 to 14.0 million) at a
cash cost, after by-product credits, of $5.00 per ounce (from $6.00
an ounce).
"Consistent with our strategy to grow despite price weakness,
the first quarter production was the highest in our 500 quarter
history," said Phillips S. Baker, Jr., Hecla's President and CEO.
"Our focus on high return growth like we have at San Sebastian
gives Hecla leverage to increasing silver prices. And Casa
Berardi's growing production from the East Mine Crown Pillar pit
should do the same for gold."
(1) Adjusted net income (loss) applicable to common
stockholders represents a non-U.S. Generally Accepted Accounting
Principles (GAAP) measure, a reconciliation of which to net (loss)
income applicable to common stockholders, the most comparable GAAP
measure, can be found at the end of the release. (2) Adjusted
EBITDA is a non-GAAP measure, a reconciliation of which to net
(loss) income, the most comparable GAAP measure, can be found at
the end of the release. (3) Cash cost, after by-product credits,
per silver and gold ounce represents a non-GAAP measure, a
reconciliation of which to cost of sales and other direct
production costs and depreciation, depletion and amortization, the
most comparable GAAP measure, can be found at the end of the
release. (4) Silver equivalent calculations based on the following
prices: $14.84 for Ag, $1,181 for Au, $0.79 for Pb, and $0.76 for
Zn.
FINANCIAL OVERVIEW
(in thousands, except per share amounts)
First
Quarter Ended HIGHLIGHTS March 31,
2016 March 31, 2015
FINANCIAL DATA
Sales
$ 131,017
$ 119,092 Gross profit
$ 30,822 $
19,873 (Loss) income applicable to common stockholders
$
(756 ) $ 12,414 Basic (loss) income per common share
$ — $ 0.03 Diluted (loss) income per common share
$ — $ 0.03 Net (loss) income
$ (618
) $ 12,552 Cash provided by operating activities
$
18,748 $ 21,419 Capital expenditures (excluding capitalized
interest)
$ 34,743 $ 27,907 Cash and cash equivalents
as of quarter end
$ 134,018 $ 196,231
Net (loss) income applicable to common stockholders for the
first quarter decreased $13.2 million to a loss of $0.8
million, or $0.00 per share, from the same period a year ago and
was impacted by the following factors:
- Sales were 10% higher on increased
silver production, partially offset by lower metal prices.
- Net foreign exchange loss of $8.2
million compared to a gain of $12.3 million in the same period of
2015 due primarily to the impact of a strengthening Canadian dollar
(CAD) on deferred tax liabilities.
- Limited metal derivative contract
activity in the first quarter of 2016 compared to a gain of $5.8
million in the first quarter of 2015.
- Impairment loss of $1.0 million in the
first quarter of 2016 compared to a loss of $2.8 million in the
same period of 2015 for investments in exploration companies.
Operating cash flow of $18.7 million declined 12% over the same
period in 2015 principally due to higher working capital, which is
expected to normalize throughout the year. The adjusted EBITDA of
$46.5 million increased 33% over the same period in 2015 due to the
operational improvements, the San Sebastian startup, and the weaker
CAD compared to the USD. The Company expects 2016 capital spending
to total $150 million, unchanged from previous estimates.
Capital expenditures (excluding capitalized interest) totaled
$34.7 million. Expenditures at Greens Creek, Casa Berardi, Lucky
Friday and San Sebastian were $6.4 million, $15.6 million, $12.3
million, and $0.5 million, respectively.
Metals Prices
Average realized silver prices in the first quarter of 2016 were
$14.93 per ounce, 13% lower than the $17.18 price realized in the
first quarter of 2015. Realized gold, lead and zinc prices also
declined 3%, 8%, and 16%, respectively.
First Quarter Ended
March 31, 2016 March 31,
2015
AVERAGE METAL PRICES
Silver - London PM Fix ($/oz)
$ 14.84
$ 16.72 Realized price per ounce
$ 14.93 $
17.18 Gold - London PM Fix ($/oz)
$ 1,181 $ 1,219
Realized price per ounce
$ 1,187 $ 1,222 Lead - LME
Cash ($/pound)
$ 0.79 $ 0.82 Realized price per pound
$ 0.78 $ 0.85 Zinc - LME Cash ($/pound)
$
0.76 $ 0.94 Realized price per pound
$ 0.79 $
0.94
Base Metals Forward Sales Contracts
The following table summarizes the quantities of base metals
committed under financially settled forward sales contracts at
March 31, 2016:
Pounds Under Contract (in
thousands) Average Price per Pound Zinc
Lead Zinc Lead Contracts
on provisional sales 2016 settlements
15,818 9,700 $ 0.80 $ 0.77
The contracts represent minimal amounts of forecasted lead and
zinc production as most contracts were successfully liquidated in
2015.
OPERATIONS OVERVIEW
The following table provides the production and cash cost, after
by-product credits, per silver and gold ounce summary for the
quarters ended March 31, 2016 and 2015:
First Quarter Ended First
Quarter Ended
March 31, 2016
March 31, 2015
Production(ounces)
Increase/(decrease)over Q1 2015
Cash costs, afterby-productcredits, per
goldor silver ounce1
Production(ounces)
Cash costs, afterby-productcredits, per
goldor silver ounce2
Silver
4,642,704 61%
$3.16 2,878,597 $4.93 Gold
55,688 37% $781
40,650 $974 Greens Creek Silver
2,458,276 21% $3.96 2,035,966 $3.23 Gold
15,981 5% N/A 15,239 N/A Lucky Friday
977,084 17% $9.05 836,719 $9.05 Casa Berardi
Gold
30,378 20% $781 25,411 $974 Silver
7,005 18% N/A 5,912 N/A San Sebastian Silver
1,200,339 N/A ($3.26) N/A N/A Gold
9,329 N/A N/A N/A N/A (1)
Cash cost, after by-product credits, per silver or gold ounce
represent a non-GAAP measure, a reconciliation of which to cost of
sales and other direct production costs and depreciation, depletion
and amortization, the most comparable GAAP measure, can be found at
the end of the release. (2) Cash cost, after by-product credits,
per gold ounce is only applicable to Casa Berardi production. Gold
produced from Greens Creek and San Sebastian is used as a
by-product credit against the silver cash cost.
The following table provides the production summary on a
consolidated basis for the quarters ended March 31, 2016 and
2015:
First Quarter Ended
March 31, 2016 March 31,
2015
PRODUCTION SUMMARY
Silver - Ounces produced
4,642,704
2,878,597 Payable ounces sold
3,795,815 2,926,535 Gold -
Ounces produced
55,688 40,650 Payable ounces sold
46,260 39,795 Lead - Tons produced
11,038 9,878
Payable tons sold
8,750 8,625 Zinc - Tons produced
17,364 16,087 Payable tons sold
14,342 11,143
Greens Creek Mine - Alaska
Silver production increased 21% and gold production increased 5%
over the prior year period. Higher throughput and recoveries
contributed to increased silver and gold production, with silver
additionally benefiting from grades that were about 1.4 oz/ton
higher than expected and which are likely to moderate as the year
progresses. The mill operated at 2,252 tons per day (tpd) during
the first quarter of 2016.
The cash cost, after by-product credits, per silver ounce
increased to $3.96 from $3.23 in the first quarter 2015 due to a
$4.29 per ounce decline in by-product revenues as a result of lower
gold, zinc and lead prices, partially offset by the impact of
higher silver production.
Lucky Friday Mine - Idaho
Silver production increased 17% over the prior year period due
to higher silver grades and recoveries. The mill operated at 813
tpd during the first quarter of 2016.
The cash cost, after by-product credits, per silver ounce of
$9.05 was unchanged over the prior year period despite a $0.55 per
ounce decrease in by-product revenues.
#4 Shaft, a key growth project, has been excavated to its final
depth of 8,600 feet and is expected to be operational in the fourth
quarter. The total estimated completion cost of the #4 Shaft is
approximately $225 million, with $214.7 million spent through
the first quarter. Remaining work includes equipping the shaft with
steel sets, guides, skip loading facilities and electrical
infrastructure. Once operational, work will begin on the lateral
development necessary to provide access to higher-grade
material.
As of March 31, 2016, the #4 Shaft team has worked 1,596
days without a lost-time accident.
Casa Berardi Mine - Quebec
Gold production increased 20% over the prior year period due to
higher throughput. The mill operated at an average of 2,384 tpd
during the first quarter of 2016.
The cash cost, after by-product credits, per gold ounce of $781
decreased from $974 in the prior year period due to higher gold
production and a weaker CAD. The mining cost per ton was the lowest
since the mine was acquired in 2013.
Stripping is well underway on the East Mine Crown Pillar project
and the pits are expected to contribute 5,000 ounces of gold in
2016 and 30,000 ounces of gold for each of the remaining years of
the project.
San Sebastian - Mexico
Silver production at San Sebastian was 1,200,339 ounces at a
cash cost, after by-product credits, of negative $3.26 per silver
ounce in what was the first full quarter of production since
reopening. The strong cash cost performance was due to the
production of 9,329 ounces of gold, which is used as a by-product
credit. Production of silver and gold was strong in the first
quarter, particularly in March, due to the prevalence of high-grade
material from the East Francine pit. At quarter end, there were
approximately 320,000 silver ounces in inventory. The inventory
included metal in the mine refinery and metal in-transit to
third-party refiners. The Company intends to sell principally doré
and occasionally precipitate, when metal loading is high, over the
remainder of the year. The mill operated at an average of 342 tpd
in the first quarter of 2016.
EXPLORATION AND PRE-DEVELOPMENT REVIEW
Expenditures
Exploration and pre-development expenses were $3.0 million and
$0.4 million, respectively, a decrease of about $1.7 million and
$0.1 million, respectively, versus the first quarter of 2015 as a
result of reduced discretionary spending. Full year exploration and
pre-development expenses (including corporate development) are
expected to be about $15.0 million combined.
The Company’s exploration efforts are focused on the continued
discovery of high-grade deposits near its existing operations. As a
result, the level of reserves have shown a remarkable resilience
over the last ten years despite changes in commodity prices;
production has been replaced and reserves have grown steadily. A
summary of this activity in the quarter is provided below.
San Sebastian - Mexico
Exploration activities at San Sebastian are focused on defining
new resources that could prolong high-margin precious metals
production. Near-pit drilling is defining extensions to the vein
mineralization currently being mined including 69.8 oz/ton silver
and 0.21 oz/ton gold over 4.3 feet directly east of the Middle Vein
pit. Exploration drilling in the past quarter has been successful
in defining two new, near-surface mineralized areas and trenching
has identified a number of drill-ready targets.
Assay results from recent shallow drill holes along the western
extension of the Middle Vein returned multiple intersections
including 19.2 oz/ton silver and 0.01 oz/ton gold over 6.6 feet in
a vein-breccia zone. These intersections are approximately 1,600
feet west of the current Middle Vein pit and show continuity over a
400-foot strike length and are potentially located at open pit
mining depths. Drilling continues on a new target area referred to
as the West Francine Vein that is about 3,000 feet west of the
previous mining at the Francine Vein and has defined a continuous
vein over 900 feet of strike length that varies in thickness from 2
to 16 feet wide and the vein is open in all directions. Recent
drill holes intersected mineralized zones at a depth of 50 to 250
feet from surface and include 13.4 oz/ton silver and 0.05 oz/ton
gold over 2.5 feet and 2.2 oz/ton silver and 0.70 oz/ton gold over
5.5 feet. Step-out drilling continues to the east and at depth
where mineralization appears to be improving.
Recent trenching has confirmed new veins associated with both
geochemical anomalies and results from the RAB (rotary air blast)
drilling program from last year. To the southeast of the East
Francine pit a series of trenches have cut a 6 to 12-foot wide
vein/breccia zone that can be traced for 800 feet along strike.
Other trenches to the west have identified veins that could
represent extensions to known mineralized veins. Additional
exploration trenching is in progress in the area and these targets
will be tested with shallow RC (reverse circulation) and core
drilling later in 2016.
Casa Berardi - Quebec
At Casa Berardi, up to six drills have been operating
underground in an effort to refine current stope designs and expand
reserves and resources from near-surface in the 124 Zone and
down-plunge underground along the 118 and 123 zones. Up to two
drills on surface concentrated on shallow targets in the 124, 134,
140 and Northwest zones during the quarter.
Definition and step-out drilling of the upper 118 Zone from the
530 level down to the 790 level defines a 15 to 55-foot wide
shear zone that extends for over 1,000 feet down-plunge and
includes a continuous mineralized interval of 0.5 oz/ton gold with
good mining widths. Mineralization at the 730 level appears to
merge with the Casa Berardi Fault to the east but is open and
continues to plunge to the west at depth. Drilling of the 123 Zone
continues to intercept high-grade mineralization, including 0.96
oz/ton gold over 22.6 feet along eastern vein extensions and at
depth. The stacked lenses of the 123 Zone define an almost constant
down-plunge mineralization for over 5,500 vertical feet and many of
the lenses have strike lengths up to 600 feet. Recent drilling
shows lenses within each of these zones are open along strike to
the east and at depth. The close proximity of these new lenses to
mine infrastructure allows near-term production. An exploration
drift that will completed later in the year is expected to provide
a platform to evaluate additional extensions at depth and to the
east.
Surface and underground drilling of the 124 Zone to both the
west and east of the Principal area has defined a near-surface, 15
to 60-foot thick, quartz-bearing zone with over 2,000 feet of
strike length. Within this wide mineralized zone are high-grade
lenses that include intervals of 0.45 oz/ton gold over 25.3 feet
that have continuity up to 300 feet of strike length. Further
refinement of this near-surface target with drilling may outline a
resource suitable for open pit mining. Surface drilling further
east is also testing the shallow 134 Zone along the Casa Berardi
Fault. Drilling in this area within 500 feet of surface has defined
a 150 to 300-foot thick mineralized shear zone with vein-bearing
zones from 5 to 20-foot thick. Additional drilling of this target
may define a resource that is suitable for open pit mining. Surface
drilling also occurred at the 140 Zone where massive sulfides have
been defined within a shear zone close to surface. Assays are
pending on the drilling of both 134 and 140 zones. Successful
drilling on surface and underground continues to define new
resources that should sustain production at Casa Berardi in the
coming years.
Greens Creek - Alaska
At Greens Creek, definition drilling is refining the resources
of the NWW, 5250 and Deep 200 South zones for conversion to
reserves, and exploration drilling of the 9A zone expanded the
resource along the projected trends. Recent drilling of the lower
NWW Zone has generally confirmed and upgraded the resource model of
the shared and lower limbs. Inferred resources in the West Wall and
200 South zones are being upgraded to indicated resource category
by drilling. When a new Life of Mine plan is finalized later in the
year, much of this resource should convert into reserves. These
initiatives provide the basis for the Company's expectation that
significant resources will convert to reserves in the next two
years.
Recent exploration drilling has extended the upper 9A Zone
mineralization to the south for a strike length of 480 feet above
and to the south of the existing resource boundary. Definition
drilling at the south end of the 9A Zone resource confirmed that
the mineralization has good grade including 20.4 oz/ton silver,
0.09 oz/ton gold, 16.2% zinc, and 5.2% lead over 13.7 feet where
one of the limbs flattens and is fold thickened. Exploration
drilling of the down-plunge projection of the 5250 trend of
mineralization intercepted high-grade mineralization within
argillite that dips down toward the Deep 200 South. Permits have
been finalized and surface drilling at Greens Creek should commence
in early June.
More complete drill assay highlights from San Sebastian, Casa
Berardi, and Greens Creek can be found in Table A at the end of the
release.
Other Properties
At the recently acquired Rock Creek project in Montana, work
includes the integration of the resource model and exploration data
into the Hecla database and modeling software. Preparations for
summer fieldwork on the Opinaca-Wildcat project near the Eleonore
Mine in northern Quebec are underway with the program expected to
begin in June.
2016 GUIDANCE
For the full year 2016, the Company increased its silver
production estimates for Greens Creek, Lucky Friday and San
Sebastian and lowered its cash cost after by-product credits
estimates for Greens Creek and San Sebastian. The Company currently
expects:
Mine
2016E1
SilverProduction (Moz)
2016E GoldProduction
(oz)
Cash cost, after
by-productcredits, per silver/gold ounce4
Greens Creek 8.1 52,000
$5.00 per silver oz
Lucky Friday 3.1 $9.00 per silver
oz
San Sebastian 3.8 20,000 $1.00 per silver oz
Casa
Berardi2 135,000 $700 per gold oz
Total 15.0
207,000 $5.00 per silver oz
Silver Equivalent
Production3 41.0
Gold Equivalent
Production3 540,500
2016E capital expenditures
(excluding capitalized interest) $150 million5
2016E pre-development and exploration expenditures
$15 million (1) 2016E refers to
the Company's expectations for 2016. (2) Includes an estimated
5,000 gold ounces from the EMCP open pit. (3) Metal price
assumptions used for calculations: Au $1,150/oz, Ag $15/oz, Zn
$0.75/lb, Pb $0.80/lb; USD/CAD assumed to be $0.75, USD/MXN assumed
to be $0.06. (4) Cash cost, after by-product credits, per silver
and gold ounce represents a non-GAAP measure. (5) 2016 capital
spending estimated for Greens Creek to be $48 million, Lucky Friday
to be $37 million, Casa Berardi to be $61 million and San Sebastian
to be $2 million.
DIVIDENDS
Common
The Board of Directors elected to declare a quarterly cash
dividend of $0.0025 per share of common stock, payable on or about
June 3, 2016, to stockholders of record on May 25, 2016.
The realized silver price was $14.93 in the first quarter and
therefore did not satisfy the criteria for a larger dividend under
the Company's dividend policy.
CONFERENCE CALL AND WEBCAST
A conference call and webcast will be held Thursday, May 5, at
11:00 a.m. Eastern Time to discuss these results. You may join the
conference call by dialing toll-free 1-855-760-8158 or for
international dialing 1-720-634-2922. The participant passcode is
HECLA. Hecla's live and archived webcast can be accessed at
www.hecla-mining.com under Investors or via Thomson StreetEvents
Network.
ABOUT HECLA
Founded in 1891, Hecla Mining Company (NYSE:HL) is a leading
low-cost U.S. silver producer with operating mines in Alaska,
Idaho, and Mexico and is a gold producer with an operating mine in
Quebec, Canada. The Company also has exploration and
pre-development properties in six world-class silver and gold
mining districts in the U.S., Canada and Mexico, and an exploration
office and investments in early-stage silver exploration projects
in Canada.
Cautionary Statements to Investors on Forward-Looking
Statements
This news release contains “forward-looking statements” within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, which are intended to be covered by the safe harbor
created by such sections and other applicable laws. Such
forward-looking statements may include, without limitation: (i)
estimates of future production and sales; (ii) estimates of future
costs and cash cost, after by-product credits per ounce of
silver/gold; (iii) guidance for 2016 for silver and gold
production, cash cost, after by-product credits, capital
expenditures and pre-development and exploration expenditures
(which assumes metal prices of gold at $1,150/oz, silver at $15/oz,
zinc at $0.75/lb, lead at $0.80/lb and USD/CAD assumed at $0.75);
(iv) expectations regarding the development, growth and exploration
potential of the Company’s projects; (v) expectations of growth;
(vi) the ability to convert resources to reserves at Greens Creek;
(vii) expectations of #4 Shaft being operational by year end and
total estimated cost of the project, and (viii) possible strike
extensions of veins at the San Sebastian project, the ability to
extend the mine life. Estimates or expectations of future events or
results are based upon certain assumptions, which may prove to be
incorrect. Such assumptions, include, but are not limited to: (i)
there being no significant change to current geotechnical,
metallurgical, hydrological and other physical conditions; (ii)
permitting, development, operations and expansion of the Company’s
projects being consistent with current expectations and mine plans;
(iii) political/regulatory developments in any jurisdiction in
which the Company operates being consistent with its current
expectations; (iv) the exchange rate for the Canadian dollar to the
U.S. dollar, being approximately consistent with current levels;
(v) certain price assumptions for gold, silver, lead and zinc; (vi)
prices for key supplies being approximately consistent with current
levels; (vii) the accuracy of our current mineral reserve and
mineral resource estimates; and (viii) the Company’s plans for
development and production will proceed as expected and will not
require revision as a result of risks or uncertainties, whether
known, unknown or unanticipated. Where the Company expresses or
implies an expectation or belief as to future events or results,
such expectation or belief is expressed in good faith and believed
to have a reasonable basis. However, such statements are subject to
risks, uncertainties and other factors, which could cause actual
results to differ materially from future results expressed,
projected or implied by the “forward-looking statements.” Such
risks include, but are not limited to gold, silver and other metals
price volatility, operating risks, currency fluctuations, increased
production costs and variances in ore grade or recovery rates from
those assumed in mining plans, community relations, conflict
resolution and outcome of projects or oppositions, litigation,
political, regulatory, labor and environmental risks, and
exploration risks and results, including that mineral resources are
not mineral reserves, they do not have demonstrated economic
viability and there is no certainty that they can be upgraded to
mineral reserves through continued exploration. For a more detailed
discussion of such risks and other factors, see the Company’s 2015
Form 10-K, filed on February 23, 2016 with the Securities and
Exchange Commission (SEC), as well as the Company’s other SEC
filings. The Company does not undertake any obligation to release
publicly revisions to any “forward-looking statement,” including,
without limitation, outlook, to reflect events or circumstances
after the date of this news release, or to reflect the occurrence
of unanticipated events, except as may be required under applicable
securities laws. Investors should not assume that any lack of
update to a previously issued “forward-looking statement”
constitutes a reaffirmation of that statement. Continued reliance
on “forward-looking statements” is at investors’ own risk.
Qualified Person (QP) Pursuant to Canadian National
Instrument 43-101
Dean McDonald, PhD. P.Geo., Senior Vice President - Exploration
of Hecla Mining Company, who serves as a Qualified Person under
National Instrument 43-101 (“NI 43-101”), supervised the
preparation of the scientific and technical information concerning
Hecla’s mineral projects in this news release. Information
regarding data verification, surveys and investigations, quality
assurance program and quality control measures and a summary of
sample, analytical or testing procedures for the Greens Creek Mine
are contained in a technical report prepared for Hecla and Aurizon
Mines Ltd. titled “Technical Report for the Greens Creek Mine,
Juneau, Alaska, USA” effective date March 28, 2013, and for the
Lucky Friday Mine are contained in a technical report prepared for
Hecla titled “Technical Report on the Lucky Friday Mine Shoshone
County, Idaho, USA” effective date April 2, 2014, and for the Casa
Berardi Mine are contained in a technical report prepared for Hecla
titled “Technical Report on the Mineral Resource and Mineral
Reserve Estimate for the Casa Berardi Mine, Northwestern Quebec,
Canada” effective date March 31, 2014 (the “Casa Berardi Technical
Report”) and for the San Sebastian Mine are contained in a
technical report prepared for Hecla titled “Technical Report for
the San Sebastian Ag-Au Property, Durango, Mexico” effective date
September 8, 2015. Also included in these four technical reports is
a description of the key assumptions, parameters and methods used
to estimate mineral reserves and resources and a general discussion
of the extent to which the estimates may be affected by any known
environmental, permitting, legal, title, taxation, socio-political,
marketing or other relevant factors. Copies of these technical
reports are available under Hecla's profile on SEDAR at
www.sedar.com.
Cautionary Statements to Investors on Reserves and
Resources
Reporting requirements in the United States for disclosure of
mineral properties are governed by the SEC and included in the
SEC's Securities Act Industry Guide 7, entitled “Description of
Property by Issuers Engaged or to be Engaged in Significant Mining
Operations” (“Guide 7”). However, the Company is also a “reporting
issuer” under Canadian securities laws, which require estimates of
mineral resources and reserves to be prepared in accordance with
Canadian National Instrument 43-101 (“NI 43-101”). NI 43-101
requires all disclosure of estimates of potential mineral resources
and reserves to be disclosed in accordance with its requirements.
Such Canadian information is being included here to satisfy the
Company's “public disclosure” obligations under Regulation FD of
the SEC and to provide U.S. holders with ready access to
information publicly available in Canada.
Reporting requirements in the United States for disclosure of
mineral properties under Guide 7 and the requirements in Canada
under NI 43-101 standards are substantially different. This
document contains a summary of certain estimates of the Company,
not only of proven and probable reserves within the meaning of
Guide 7, which requires the preparation of a “final” or “bankable”
feasibility study demonstrating the economic feasibility of mining
and processing the mineralization using the three-year historical
average price for any reserve or cash flow analysis to designate
reserves and that the primary environmental analysis or report be
filed with the appropriate governmental authority, but also of
mineral resource and mineral reserve estimates estimated in
accordance with the definitional standards of the Canadian
Institute of Mining, Metallurgy and Petroleum referred to in NI
43-101. The terms “measured resources”, “indicated resources,” and
“inferred resources” are Canadian mining terms as defined in
accordance with NI 43-101. These terms are not defined under Guide
7 and are not normally permitted to be used in reports and
registration statements filed with the SEC in the United States,
except where required to be disclosed by foreign law. Investors are
cautioned not to assume that any part or all of the mineral
deposits in such categories will ever be converted into proven or
probable reserves. “Resources” have a great amount of uncertainty
as to their existence, and great uncertainty as to their economic
and legal feasibility. It cannot be assumed that all or any part of
such a “resource” will ever be upgraded to a higher category or
will ever be economically extracted. Investors are cautioned not to
assume that all or any part of a “resource” exists or is
economically or legally mineable. Investors are also especially
cautioned that the mere fact that such resources may be referred to
in ounces of silver and/or gold, rather than in tons of
mineralization and grades of silver and/or gold estimated per ton,
is not an indication that such material will ever result in mined
ore which is processed into commercial silver or gold.
HECLA MINING COMPANY
Condensed Consolidated Statements of
(Loss) Income
(dollars and shares in thousands, except
per share amounts - unaudited)
Three Months Ended
March 31, 2016
March 31, 2015 Sales of products
$
131,017 $ 119,092 Cost of sales and other
direct production costs
74,320 73,965 Depreciation,
depletion and amortization
25,875 25,254
100,195 99,219 Gross profit
30,822
19,873 Other operating expenses: General and
administrative
10,214 8,720 Exploration
2,950 4,615
Pre-development
404 521 Other operating expense
640
628 Provision for closed operations and reclamation
1,041
467
15,249 14,951 Income from
operations
15,573 4,922 Other income
(expense): Gain on derivative contracts
— 5,792 Interest and
other income
88 38 Unrealized loss on investments
(711 ) (2,843 ) Net foreign exchange (loss) gain
(8,203 ) 12,274 Interest expense
(5,711
) (6,192 )
(14,537 ) 9,069 Income
before income taxes
1,036 13,991 Income tax provision
(1,654 ) (1,439 ) Net (loss) income
(618
) 12,552 Preferred stock dividends
(138 ) (138
) (Loss) income applicable to common stockholders
$
(756 ) $ 12,414 Basic (loss) income per common
share after preferred dividends
$ — $ 0.03
Diluted (loss) income per common share after preferred
dividends
$ — $ 0.03 Weighted average
number of common shares outstanding - basic
379,022
368,789 Weighted average number of common shares outstanding
- diluted
379,022 369,691
HECLA MINING COMPANY
Condensed Consolidated Balance Sheets
(dollars and share in thousands -
unaudited)
March 31, 2016
December 31, 2015
ASSETS
Current assets: Cash and cash
equivalents
$ 134,018 $ 155,209 Accounts receivable:
Trade
30,127 13,490 Other, net
31,434 27,859
Inventories
52,818 45,542 Current deferred income taxes
15,268 17,980 Current restricted cash
3,900 — Other
current assets
9,289 9,453 Total current
assets
276,854 269,533 Non-current investments
2,086
1,515 Non-current restricted cash and investments
999 999
Properties, plants, equipment and mineral interests, net
1,907,775 1,896,811 Reclamation insurance
13,695
13,695 Non-current deferred income taxes
34,981 36,589 Other
non-current assets and deferred charges
2,783 2,783
Total assets $ 2,239,173 $
2,221,925
LIABILITIES
Current liabilities: Accounts payable and accrued liabilities
$ 56,657 $ 51,277 Accrued payroll and related
benefits
19,873 27,563 Accrued taxes
8,958 8,915
Current portion of capital leases
8,216 8,735 Current
portion of debt
2,057 2,721 Current portion of accrued
reclamation and closure costs
20,989 20,989 Other current
liabilities
16,068 6,884 Total current
liabilities
132,818 127,084 Capital leases
7,427
8,841 Long-term debt
500,531 500,199 Non-current deferred
tax liability
126,009 119,623 Accrued reclamation and
closure costs
75,729 74,549 Non-current pension liability
45,874 46,513 Other non-current liabilities
3,539
6,190
Total liabilities 891,927
882,999
STOCKHOLDERS’ EQUITY
Preferred stock
39 39 Common stock
96,215
95,219 Capital surplus
1,528,820 1,519,598 Accumulated
deficit
(234,272 ) (232,565 ) Accumulated other
comprehensive loss
(31,566 ) (32,631 ) Treasury stock
(11,990 ) (10,734 )
Total stockholders’ equity
1,347,246 1,338,926
Total liabilities and
stockholders’ equity $ 2,239,173 $
2,221,925 Common shares outstanding
381,521
378,113
HECLA MINING COMPANY
Condensed Consolidated Statements of Cash
Flows
(dollars in thousands - unaudited)
Three Months Ended
March 31, 2016 March 31, 2015
OPERATING
ACTIVITIES Net (loss)
income
$ (618 ) $ 12,552
Non-cash elements included in net (loss) income: Depreciation,
depletion and amortization
26,153 25,523 Unrealized loss on
investments
711 2,843 (Gain) Loss on disposition of
properties, plants, equipment and mineral interests
(210
) 74 Provision for reclamation and closure costs
999
778 Stock compensation
1,231 1,060 Deferred income taxes
3,320 555 Amortization of loan origination fees
459
454 Loss (gain) on derivative contracts
170 (2,970 ) Foreign
exchange loss (gain)
7,989 (11,490 ) Other non-cash charges,
net
6 24 Change in assets and liabilities: Accounts
receivable
(20,036 ) (8,210 ) Inventories
(5,922 ) 3,949 Other current and non-current assets
(619 ) (1,638 ) Accounts payable and accrued
liabilities
10,036 4,037 Accrued payroll and related
benefits
(2,826 ) (5,116 ) Accrued taxes
(37
) (263 ) Accrued reclamation and closure costs and other
non-current liabilities
(2,058 ) (743 )
Cash
provided by operating activities 18,748
21,419
INVESTING ACTIVITIES
Additions to properties, plants, equipment and
mineral interests
(34,654 ) (26,958 ) Proceeds from
disposition of properties, plants and equipment
215 25
Purchases of investments
— (947 ) Changes in restricted cash
and investment balances
(3,900 ) —
Net cash
used in investing activities (38,339 )
(27,880 )
FINANCING ACTIVITIES
Proceeds from issue of stock, net of related costs
2,052 — Acquisition of treasury shares
(1,256
) (941 ) Dividends paid to common stockholders
(952
) (924 ) Dividends paid to preferred stockholders
(138 ) (138 ) Debt origination fees
(59
) (63 ) Payments on debt
(664 ) — Repayments
of capital leases
(2,118 ) (2,347 )
Net cash used
in financing activities (3,135 ) (4,413
) Effect of exchange rates on cash
1,535 (2,560 ) Net
decrease in cash and cash equivalents
(21,191 )
(13,434 ) Cash and cash equivalents at beginning of period
155,209 209,665 Cash and cash equivalents at
end of period
$ 134,018 $ 196,231
HECLA MINING COMPANY
Production Data
Three Months Ended
March 31, 2016 March 31, 2015
GREENS CREEK
UNIT Tons of ore
milled
204,968 195,469 Mining cost per ton
$ 66.96 $ 73.68 Milling cost per ton
$
30.99 $ 28.74 Ore grade milled - Silver (oz./ton)
15.17 13.78 Ore grade milled - Gold (oz./ton)
0.11
0.12 Ore grade milled - Lead (%)
3.05 3.26 Ore grade milled
- Zinc (%)
8.13 8.34 Silver produced (oz.)
2,458,276
2,035,966 Gold produced (oz.)
15,981 15,239 Lead produced
(tons)
5,087 4,930 Zinc produced (tons)
14,611 13,920
Cash cost, after by-product credits, per silver ounce (1)
$
3.96 $ 3.23 Capital additions (in thousands)
$ 6,376 $ 6,344
LUCKY FRIDAY
UNIT Tons of ore
processed
74,021 74,245 Mining cost per ton
$
98.02 $ 84.68 Milling cost per ton
$ 23.35 $
20.27 Ore grade milled - Silver (oz./ton)
13.67 11.75 Ore
grade milled - Lead (%)
8.36 7.00 Ore grade milled - Zinc
(%)
3.97 3.19 Silver produced (oz.)
977,084 836,719
Lead produced (tons)
5,951 4,948 Zinc produced (tons)
2,753 2,167 Cash cost, after by-product credits, per silver
ounce (1)
$ 9.05 $ 9.05 Capital additions (in
thousands)
$ 12,266
$ 13,707
CASA BERARDI UNIT
Tons of ore milled
216,962 188,095
Mining cost per ton
$ 87.54 $ 105.50 Milling cost per
ton
$ 18.91 $ 21.94 Ore grade milled - Gold (oz./ton)
0.163 0.16 Ore grade milled - Silver (oz./ton)
0.04
0.036 Gold produced (oz.)
30,378 25,411 Silver produced
(oz.)
7,005 5,912 Cash cost, after by-product credits, per
gold ounce (1)
$ 781 $ 974 Capital additions (in
thousands)
$ 15,611
$ 7,856
SAN SEBASTIAN UNIT
Tons of ore milled
31,158 N/A Mining
cost per ton
$ 103.72 N/A Milling cost per ton
$ 69.62 N/A Ore grade milled - Silver (oz./ton)
41.26 N/A Ore grade milled - Gold (oz./ton)
0.322 N/A
Silver produced (oz.)
1,200,339 N/A Gold produced (oz.)
9,329 N/A Cash cost, after by-product credits, per silver
ounce (1)
$ (3.26 ) N/A Capital additions (in
thousands)
$ 490
N/A (1) Cash cost, after by-product credits,
per ounce represents a non-U.S. Generally Accepted Accounting
Principles (GAAP) measurement. A reconciliation of cash cost, after
by-product credits to cost of sales and other direct production
costs and depreciation, depletion and amortization (GAAP) can be
found in the cash cost per ounce reconciliation section of this
news release. Gold, lead and zinc produced have been treated as
by-product credits in calculating silver costs per ounce. The
primary metal produced at Casa Berardi is gold, with a by-product
credit for the value of silver production.
Non-GAAP Measures
(Unaudited)
Reconciliation of Cash Cost, Before By-product Credits, per
Ounce and Cash Cost, After By-product Credits, per Ounce to
Generally Accepted Accounting Principles (GAAP)
This release contains references to non-GAAP measures of cash
cost, before by-product credits, per ounce and cash cost, after
by-product credits, per ounce. The Company believes that these
non-GAAP measures provide management and investors an indication of
net cash flow. Management also uses cash cost, after by-product
credits, per ounce for the comparative monitoring of performance of
mining operations period-to-period from a cash flow perspective.
Cash cost, before by-product credits, per ounce and Cash cost,
after by-product credits, per ounce are measures developed by gold
companies and used by silver companies in an effort to provide a
comparable standard; however, there can be no assurance that our
reporting of these non-GAAP measures is similar to those reported
by other mining companies. Cost of sales and other direct
production costs and depreciation, depletion and amortization is
the most comparable financial measure calculated in accordance with
GAAP to cash cost, before by-product credits cash cost, after
by-product credits.
As depicted in the Greens Creek Unit, Lucky Friday Unit, and San
Sebastian Unit tables below, by-product credits comprise an
essential element of our silver unit cost structure. By-product
credits constitute an important competitive distinction for our
silver operations due to the polymetallic nature of their
orebodies. By-product credits included in our presentation of cash
cost, after by-product credits, per silver ounce include:
Total, Greens Creek, Lucky Friday and San
Sebastian Units
Three months ended March 31,
2016 2015
By-product value, all silver properties: Zinc
$
18,817 $ 21,690 Gold
27,456 15,508 Lead
15,057
13,893 Total by-product credits
$ 61,330 $ 51,091
By-product credits per silver ounce, all silver properties
Zinc
$ 4.06 $ 7.54 Gold
5.92 5.40 Lead
3.25 4.84 Total by-product credits
$ 13.23 $
17.78
By-product credits included in our presentation of Cash Cost,
After By-product Credits, per Gold Ounce for our Casa Berardi Unit
include:
Casa Berardi Unit
Three months endedMarch 31,
2016 2015 Silver by-product value
$
103 $ 97 Silver by-product credits per gold
ounce
$ 3.39 $ 3.82
The following table calculates cash cost, before by-product
credits, per silver ounce and cash cost, after by-product credits,
per silver ounce (in thousands, except per-ounce amounts):
Total, Greens Creek, Lucky Friday and San Sebastian
Units Three Months Ended March 31,
2016 2015
Cash cost, before by-product credits (1)
$ 75,979 $
65,246 By-product credits
(61,330 ) (51,090 ) Cash
cost, after by-product credits
14,649 14,156 Divided by
ounces produced
4,635 2,873 Cash cost, before by-product
credits, per silver ounce
$ 16.39 $ 22.71 By-product
credits per silver ounce
$ (13.23 ) $ (17.78 )
Cash cost, after by-product credits, per silver ounce
$
3.16 $ 4.93 Reconciliation to GAAP: Cash cost,
after by-product credits
$ 14,649 $ 14,156
Depreciation, depletion and amortization
17,374 16,612
Treatment costs
(20,963 ) (19,921 ) By-product
credits
61,330 51,090 Change in product inventory
(1,959 ) 5,718 Reclamation and other costs
605
393 Cost of sales and other direct production costs
and depreciation, depletion and amortization (GAAP)
$
71,036 $ 68,048 Greens
Creek Unit Three Months Ended March 31,
2016
2015 Cash cost, before by-product credits (1)
$
48,133 $ 47,113 By-product credits
(38,408 )
(40,531 ) Cash cost, after by-product credits
9,725 6,582
Divided by ounces produced
2,458 2,036 Cash cost, before
by-product credits, per silver ounce
$ 19.58 $ 23.14
By-product credits per silver ounce
$ (15.62 )
$ (19.91 ) Cash cost, after by-product credits, per silver ounce
$ 3.96 $ 3.23 Reconciliation to GAAP:
Cash cost, after by-product credits
$ 9,725 $ 6,582
Depreciation, depletion and amortization
13,601 13,746
Treatment costs
(15,638 ) (15,233 ) By-product
credits
38,408 40,531 Change in product inventory
(1,640 ) 5,694 Reclamation and other costs
398
388 Cost of sales and other direct production costs
and depreciation, depletion and amortization (GAAP)
$
44,854 $ 51,708 Lucky
Friday Unit Three Months Ended March 31,
2016
2015 Cash cost, before by-product credits (1)
$
20,648 $ 18,133 By-product credits
(11,806 )
(10,559 ) Cash cost, after by-product credits
8,842 7,574
Divided by ounces produced
977 837 Cash cost, before
by-product credits, per silver ounce
$ 21.13 $ 21.68
By-product credits per silver ounce
$ (12.08 )
$ (12.63 ) Cash cost, after by-product credits, per silver ounce
$ 9.05 $ 9.05 Reconciliation to GAAP:
Cash cost, after by-product credits
$ 8,842 $ 7,574
Depreciation, depletion and amortization
3,004 2,866
Treatment costs
(5,334 ) (4,688 ) By-product credits
11,806 10,559 Change in product inventory
21 24
Reclamation and other costs
166 5 Cost of
sales and other direct production costs and depreciation, depletion
and amortization (GAAP)
$ 18,505 $ 16,340
San Sebastian Unit Three Months Ended
March 31,
2016 2015 Cash cost, before
by-product credits (1)
$ 7,198 N/A By-product credits
(11,116 ) N/A Cash cost, after by-product credits
(3,918 ) N/A Divided by ounces produced
1,200
N/A Cash cost, before by-product credits, per silver ounce
$
6.00 N/A By-product credits per silver ounce
$
(9.26 ) N/A Cash cost, after by-product credits, per
silver ounce
$ (3.26 ) N/A Reconciliation to
GAAP: Cash cost, after by-product credits
$ (3,918
) N/A Depreciation, depletion and amortization
769
N/A Treatment costs
9 N/A By-product credits
11,116
N/A Change in product inventory
(340 ) N/A
Reclamation and other costs
41 N/A Cost of sales and
other direct production costs and depreciation, depletion and
amortization (GAAP)
$ 7,677 N/A
Casa Berardi Unit Three months ended March 31,
2016
2015 Cash cost, before by-product credits (1)
$ 23,836 $ 24,835 By-product credits
(103
) (97 ) Cash cost, after by-product credits
23,733
24,738 Divided by gold ounces produced
30,378 25,411 Cash
cost, before by-product credits, per gold ounce
784.66
977.34 By-product credits per gold ounce
(3.39 )
(3.82 ) Cash cost, after by-product credits, per gold ounce
$ 781.27 $ 973.52 Reconciliation to
GAAP: Cash cost, after by-product credits
$ 23,733 $
24,738 Depreciation, depletion and amortization
8,501 8,643
Treatment costs
(171 ) (153 ) By-product credits
103 97 Change in product inventory
(3,118 )
(2,272 ) Reclamation and other costs
111 118
Cost of sales and other direct production costs and depreciation,
depletion and amortization (GAAP)
$ 29,159 $
31,171 Total, All Locations Three
months ended March 31,
2016 2015
Reconciliation to GAAP: Cash cost, after by-product credits
$ 38,382 $ 38,894 Depreciation, depletion and
amortization
25,875 25,255 Treatment costs
(21,134
) (20,074 ) By-product credits
61,433 51,187 Change
in product inventory
(5,077 ) 3,446 Reclamation and
other costs
716 511 Cost of sales and other
direct production costs and depreciation, depletion and
amortization (GAAP)
$ 100,195 $ 99,219
(1) Includes all direct and indirect operating
cash costs related directly to the physical activities of producing
metals, including mining, processing and other plant costs,
third-party refining and marketing expense, on-site general and
administrative costs, royalties and mining production taxes, net of
by-product revenues earned from all metals other than the primary
metal produced at each unit.
Reconciliation of Net (Loss) Income Applicable to Common
Stockholders (GAAP) to Adjusted Net Income (Loss) Applicable to
Common Stockholders
This release refers to a non-GAAP measure of Adjusted net (loss)
income applicable to common stockholders and Adjusted net income
(loss) per share, which are indicators of our performance. They
exclude certain impacts which are of a nature which we believe are
not reflective of our underlying performance. Management believes
that adjusted net income (loss) per common share provides investors
with the ability to better evaluate our underlying operating
performance.
Dollars are in thousands (except per share amounts)
Three Months Ended March 31,
2016 2015
Net (loss) income applicable to common stockholders (GAAP)
$
(756 ) $ 12,414 Adjusting items:
Gains on derivatives contracts
— (5,792 ) Provisional price
gains
(506 ) (2,125 ) Foreign exchange loss (gain)
8,203 (12,274 ) Income tax effect of above adjustments
253 792 Adjusted net income (loss) applicable
to common stockholders
$ 7,194 $
(6,985 ) Weighted average shares - basic
379,022 368,789 Weighted average shares - diluted
380,709 369,691 Basic and diluted adjusted net income (loss)
per common share
$ 0.02 $ (0.02 )
Reconciliation of Adjusted EBITDA to Generally Accepted
Accounting Principles (GAAP)
This release refers to a non-GAAP measure of Adjusted earnings
before interest, taxes, depreciation and amortization ("Adjusted
EBITDA"), which is a measure of our operating performance. Adjusted
EBITDA is calculated as net (loss) income before the following
items: interest expense, income tax provision, depreciation,
depletion, and amortization expense, exploration expense,
pre-development expense, foreign exchange gains and losses, gains
and losses on derivative contracts, provisional price gains and
losses, stock-based compensation, unrealized gains on investments,
provisions for environmental matters, and interest and other income
(expense). Management believes that, when presented in conjunction
with comparable GAAP measures, Adjusted EBITDA is useful to
investors in evaluating our operating performance. The following
table reconciles net (loss) income to Adjusted EBITDA:
Dollars are in thousands Three Months Ended March 31,
2016 2015 Net (loss) income
$
(618 ) $ 12,552 Plus: Interest expense
5,711 6,192 Plus: Income taxes
1,654 1,439 Plus:
Depreciation, depletion and amortization
25,875 25,254 Plus:
Exploration expense
2,950 4,615 Plus: Pre-development
expense
404 521
Plus/(Less): Foreign exchange
loss/(gain)
8,203 (12,274 ) Less: Gains on derivative contracts
—
(5,792 )
Less: Provisional price gains
(506 ) (2,125 ) Plus: Stock-based compensation
1,172 1,060
Plus: Unrealized loss on investments
711 2,843
Plus: Other
911 750 Adjusted EBITDA
$ 46,467
$ 35,035
Table A - Assay Results - Q1 2016
San Sebastian (Mexico)
Zone
Drill HoleNumber
Sample From(ft)
Sample To(ft)
True Width(feet)
Gold(oz/ton)
Silver(oz/ton)
Middle Vein SS-1017 202.2
206.6 4.4 0.11 13.63
Middle Vein SS-1019 268.1
272.4 4.3 0.21 69.78
Middle Vein SS-1023 172.7
177.0 4.1 0.25 53.94
Middle Vein SS-1032 70.9
73.2 2.2 0.01 6.57 Middle
Vein SS-1033 164.5 171.6
6.6 0.01 19.25 West
Francine Vein SS-1027 261.5
263.1 1.4 0.02
5.57 West Francine Vein SS-1038 274.7
281.1 5.5 0.70
2.24 West Francine Vein SS-1040
339.0 342.4 2.5 0.05
13.37
Greens Creek (Alaska)
Zone
Drill HoleNumber
DrillholeAzm/Dip
SampleFrom
SampleTo
True Width(feet)
Silver(oz/ton)
Gold(oz/ton)
Zinc(%)
Lead(%)
Depth FromMine Portal(feet)
North West Definition
GC4242 063/-47 539.20
545.90 6.4 7.03
0.06 10.85 2.94
-576 GC4244 063/-28
561.00 563.00 1.1
9.17 0.15 11.25 4.80
-449 GC3987
063/-76 61.80 72.70 10.0
64.31 0.00 3.22
1.50 -469 GC4250
063/-69 486.00 489.00
3.0 5.48 0.04
17.76 3.15 -622
GC4258 063/-66 319.00
323.40 4.3 19.68 0.03
9.90 3.86 -444
376.00
381.00 4.9 12.66
0.03 0.64 0.33
-498 GC4260 063/-54
335.00 344.00 8.3
9.69 0.15 14.75 5.75
-430 D200S Definition GC4249
063/-87 280.80 281.80
1.0 21.06 0.03
2.11 1.00 -1552
GC4164 243/-37.5 174.10
176.10 1.6 15.22 0.00
0.46 0.22 -1377
GC4251 063/-66 472.00
475.60 3.0 8.59
0.13 2.34 1.19
-1705
527.50 528.60 0.9
17.94 0.06 3.97 2.21
-1756
536.80 541.30 3.7
11.03 0.02 4.27
3.37 -1766 GC4253
063/-75 378.30 386.00
4.1 17.78 0.05
8.42 4.06 -1638
390.00
414.50 13.0 5.97 0.03
11.50 5.97 -1657
GC4259 243/-70 273.90
275.00 1.0 27.13
0.10 1.29 0.60
-1530 GC4262 243/-54
186.40 190.70 2.7
43.32 0.05 1.14 0.64
-1424
611.00 619.20 8.2
31.12 0.04 0.64
0.31 -1775
624.70 631.70
7.0 54.44 0.03
0.10 0.06 -1782
GC4264 243/-60 333.60
336.00 2.0 1.99 0.01
11.99 8.18 -1564
341.30
342.80 1.3 3.12
0.02 13.68 11.37
-1570 GC4265 243/-48
626.30 627.60 1.3
55.89 0.03 0.58 0.26
-1740 5250 Trend Exploration GC4226
063/26 523.50 527.00
2.2 12.85 0.03
15.23 7.67 -1050 9A Exploration
GC4236 243/-64 812.30
825.00 12.5 15.44
0.03 21.67 6.96
-28
870.00 882.60 11.1 9.82
0.03 12.50 2.46
-79 GC4243 196/-50
573.20 587.40 7.1
15.26 0.11 8.77 3.97
256
644.60 650.20 2.6
23.18 0.06 13.35
4.34 205
759.70 762.00 1.1
12.92 0.03 10.12
5.07 105 GC4267
063/32 432.2 479.0
13.7 20.43 0.09 16.24
5.21 185 East Definition
GC4247 072/-49 497.70
498.70 1.0 5.37 0.01
11.23 9.36 333
529.50
543.50 13.8 16.11
0.29 9.96 4.76 305
Casa Berardi (Quebec)
Zone
Drill HoleNumber
Drill HoleSection
Drill HoleAzm/Dip
SampleFrom
SampleTo
True Width(feet)
Gold(oz/ton)
Depth FromMine Surface(feet)
Lower-Inter Upper CBW-1097 10785
000/-41 561.7 573.8
8.9 0.69 -1343.6
CBW-1102 10808.6 000/-48
598.1 603.7 4.6
1.35 -1409.2 CBW-1108
10745 000/-38 564.3
577.4 12.8 1.15
-1331.5 Upper 118 (118-46) CBP-0530-273
12015 000/-49 191.9 205.4
14.4 0.60 -1905.0
(118-46) CBP-0530-279 12045
000/-84 153.5 174.2
18.7 0.34 -1920.1 (118-06)
CBP-0530-293 12300.5
345/-10 192.9 214.9 22.0
0.23 -1813.3 (118-06)
CBP-0530-293 12300.5 345/-10
236.5 257.2 20.7
0.28 -1821.9 Lower 118 (118-41)
CBP-0790-105 11900.2 358/+16
494.4 529.2 31.8
0.41 -2463.6 Upper 123 (123-05)
CBP-0270-014 12510 180/+6
203.7 216.5 12.8 0.36
-849.4 (123-05) CBP-0490-001
12447.9 153/-12 107.0
159.8 36.4 0.25
-1631.8 (123-01) CBP-0550-128 12368.6
183/-29 298.6 310.7
11.2 0.73 -1917.7
(123-01) CBP-0550-128 12368.6
183/-29 377.3 401.6
24.3 2.73 -1952.9 Lower 123
(123-01) CBP-0770-123 12344.5
141/+48 291.0 308.4
12.5 1.71 -2292.4 (123-01)
CBP-0770-126 12359.4
129/-14 111.5 135.2 15.7
1.28 -2546.5 (123-11)
CBP-0850-105 12371 140/-27
341.9 362.9 16.4
0.31 -2854.2 (123-11) CBP-0850-106
12371 140/-22 334.6
362.9 22.6 0.96
-2842.4 (123-02) CBP-0850-113
12341.2 165/-42 365.8
393.0 16.1 0.33 -2958.4
(123-04) CBP-0850-113 12341.2
165/-42 408.8 420.6
8.5 1.46 -2977.4 (123-03)
CBP-0850-114 12340.9 171/-48
369.8 372.7 1.6
3.07 -2996.9 (123-11)
CBP-0850-115 12370.8 157/-26
316.6 339.6 17.1
0.94 -2872.2 (123-11) CBP-0850-118
12371.09 148/-26 378.0
410.1 16.4 0.35
-2900.6 U Principale (124-13) CBP-0210-004
12693.4 174/+4 390.4
403.5 12.5 0.48
-604.1 (124-13) CBP-0210-005
12693.4 174/+10 364.2
390.4 25.6 0.38 -576.5
(124-13) CBP-0210-006 12693.4
174/+16 371.7 393.7
21.3 0.57 -541.8 (124-12)
CBP-0210-006 12693.4 174/+16
414.4 433.1 18.7
0.20 -528.6 (124-13)
CBP-0210-009 12693 196/+9
370.7 396.0 25.3 0.45
-586.9 (124-13) CBP-0210-010
12693 196/+15 371.4
387.1 15.4 0.70
-528.4 (124-16) CBP-0210-014 12693.1
189/+2 320.9 337.9
11.8 0.87 -637.1 (124-13)
CBP-0210-014 12693.1 189/+2
379.3 406.8 23.6
0.55 -632.5 (124-13)
CBP-0210-015 12693.4 174/+1
403.5 407.5 3.6
2.09 -636.7 (124-12) CBP-0210-017
12693.6 162/+16 410.8
427.2 14.1 0.92
-539.7 (124-22) CBP-0250-076
12418.1 004/+51 153.2
158.5 3.9 1.11 -688.6
(124-22) CBP-0250-078 12424.1
020/+29 110.9 118.1
5.9 0.67 -753.6 (124-22)
CBP-0250-079 12424.1 020/+45
128.3 138.8 7.5
1.01 -714.8 (124-22)
CBP-0270-034 12331 066/+42
270.7 278.9 3.6
1.61 -675.4 (124-83) CBP-0330-019
12392.4 210/-21 140.1
152.6 10.2 0.40
-1130.7 Explo S NW CBS-16-654
10550 E 360/-55 461.6
474.1 8.9 0.11 -403.5
Explo S NW CBS-16-654 10550 E
360/-55 461.6 468.2
4.9 0.19 -400.3 Explo S NW
CBS-16-656 10450E 360/-60
301.2 365.5 29.5
0.03 -315.0 Explo S NW
CBS-16-656 10450E 360/-60
301.2 307.4 3.9 0.09
-288.7 Explo S 124 CBS-16-661
12650E 360/-60 413.4
433.1 13.8 0.11
-364.2 Explo S 124 CBS-16-661 12650E
360/-60 413.4 420.3
4.9 0.27 -357.6 Explo S
124 CBS-16-662 12700E
360/-60 1168.0 1195.9
19.7 0.06 -967.8 Explo S 124
CBS-16-662 12700E 360/-60
1190.9 1195.9 3.3
0.14 -977.7 Explo S 134 CBS-16-658
13600E 360/-55 271.3
285.4 11.5 0.08
-223.1
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160505005372/en/
Hecla Mining CompanyMike Westerlund, 800-HECLA91
(800-432-5291)Vice President - Investor
Relationshmc-info@hecla-mining.comwww.hecla-mining.com
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