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COEUR D'ALENE, Idaho--(BUSINESS WIRE)--
Hecla Mining Company (NYSE:HL)
today announced 2014 sales of $500.8 million and gross profit of $85.2
million, with net income applicable to common stockholders of $17.3
million, or $0.05 per basic share, and an adjusted net income applicable
to common stockholders of $5.6 million, or $0.02 per basic share.1
FULL YEAR 2014 HIGHLIGHTS - comparison to 2013
-
Record sales of $500.8 million, a 31% increase.2
-
Silver equivalent production of 34.5 million ounces, the highest in
the company’s history.3
-
A 24% increase in silver production with a 30% decrease in per ounce
cash costs, after by-product credits.
-
A 56% increase in gold production with 128,244 ounces produced at Casa
Berardi at an average cash cost, after by-product credits, per gold
ounce of $826, a 13% reduction.4
-
Adjusted EBITDA of $174.4 million, a 29% increase.5
-
Operating cash flow of $83.1 million, which includes the final $55.4
million payment to satisfy the Coeur d’Alene Basin litigation
settlement, a 212% increase, and the third highest level in the
company’s history.
-
Highest year-end proven and probable silver reserve levels in the
company’s history for the 9th consecutive year.
-
Cash and cash equivalents of $209.7 million at December 31, 2014.
“In 2014 Hecla produced the equivalent of 34 million ounces of silver
and over $500 million in revenues, both company records,” said Phillips
S. Baker Jr., Hecla’s President and CEO. “With the increased production
and lower per ounce costs for both gold and silver, Hecla was able to
end the year with roughly the same amount of cash we started with, while
continuing to invest in capital projects designed to extend mine life
and increase production. While spending less on exploration than in
2013, we still maintained reserves, despite using lower price
assumptions, after record production, and continued to grow our resource
base.”
“In 2015 we expect to once again have our capital and exploration
expenditures fully funded by adjusted EBITDA even as we continue the
capital expenditures designed to drive returns, growth and mine life,”
Mr. Baker added.
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(1)
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Adjusted net income applicable to common stockholders represents a
non-U.S. Generally Accepted Accounting Principles (GAAP)
measurement. A reconciliation of net income (loss) applicable to
common stockholders (GAAP) to adjusted net income (loss) can be
found at the end of the release.
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(2)
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Increase in sales and production was principally due to owning Casa
Berardi for the entire year versus only seven months in 2013 and
Lucky Friday reaching full production in September 2013.
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(3)
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2014 silver equivalent calculation is based on the following prices:
$19.08/oz for silver, $1,266/oz for gold, $0.95/lb for lead, and
$0.98/lb for zinc.
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(4)
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Cash cost, after by-product credits, per silver and gold ounce
represent a non-GAAP measurement. A reconciliation of cash cost,
after by-product credits, per ounce of silver and gold to cost of
sales and other direct production costs and depreciation, depletion
and amortization (GAAP) can be found at the end of this release.
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(5)
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Adjusted EBITDA is a non-GAAP measurement, a reconciliation of which
to net income (GAAP) can be found at the end of this release.
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SILVER AND GOLD RESERVE GROWTH
Proven and probable silver reserves of 173 million ounces increased by
1.9% over December 31, 2013 levels. Proven and probable gold reserves of
2.1 million ounces decreased by 1.5% over December 31, 2013 levels.
Please refer to the reserves and resources table at the end of this
press release, or to the press release entitled “Hecla Reports Record
Silver Reserves,” issued on February 12, 2015 for further information on
the new reserve and resource levels as well as a detailed summary of the
Company’s exploration programs.
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FINANCIAL OVERVIEW
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Fourth Quarter Ended
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Twelve Months Ended
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December 31,
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December 31,
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December 31,
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December 31,
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HIGHLIGHTS
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2014
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2013
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2014
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2013
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FINANCIAL DATA (000s)
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Sales
|
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$
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121,985
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|
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$
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114,180
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$
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500,781
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$
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382,589
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Gross profit
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$
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22,207
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$
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14,731
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$
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85,201
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$
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66,146
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Income (loss) applicable to common stockholders
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$
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16,767
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$
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(3,046
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)
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$
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17,272
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$
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(25,682
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)
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Basic and diluted income (loss) per common share
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$
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0.05
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$
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(0.01
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)
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$
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0.05
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$
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(0.08
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)
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Net income (loss)
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$
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16,905
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$
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(2,908
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)
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$
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17,824
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$
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(25,130
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)
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Cash provided by operating activities
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$
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24,356
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$
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21,564
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$
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83,124
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$
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26,644
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Capital expenditures (excluding capitalized interest)
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$
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37,732
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$
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43,639
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$
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131,607
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$
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154,446
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Cash and cash equivalents as of year end
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—
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—
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$
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209,665
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$
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212,175
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Net income applicable to common stockholders for the fourth quarter and
full year 2014, respectively, was $16.8 million and $17.3 million, or
$0.05 and $0.05 per basic share, compared to net losses of $3.0 million
and $25.7 million, or $0.01 and $0.08 per basic share, for the fourth
quarter and full year 2013, respectively. Among items impacting the
results for the 2014 periods compared to 2013 were the following:
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Revenue increased by 7% for the fourth quarter and 31% for the year
due to higher production from all three mines in spite of lower
average silver, gold, and lead prices, partially offset by higher zinc
prices in 2014.
-
Exploration and pre-development expense decreased by $1.1 million for
the quarter and $18.0 million for the year.
-
Foreign exchange gains due to the decline in the Canadian dollar
versus the USD.
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Increase in the provision for closed operations and reclamation for
historic properties.
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Net mark-to-market gains on base metal forward contracts of $11.7
million and $9.1 million for the fourth quarter and full year 2014
compared to net losses of $5.5 million and net gains of $18.0 million
for the same periods in 2013.
-
Impairment losses of $2.4 million for 2014 for investments in
exploration companies.
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Interest expense increase due to senior notes issued in April 2013
being outstanding for the full year in 2014.
-
Income tax benefit of $5.2 million in 2014, in spite of reporting
positive income before income taxes as a result of book-versus-tax
differences for certain items in Canada and the U.S.
Operating cash flow increased 212% to $83.1 million in 2014 inclusive of
the $55.4 million payment to satisfy the Coeur d’Alene Basin litigation
settlement. The final settlement was almost entirely funded by proceeds
received from the exercise of the remaining outstanding warrants.
Year end 2014 cash and cash equivalents of $209.7 million reduced only
$2.5 million over the prior year level even with the Company undertaking
the second largest capital program in its history. Hecla’s capital
investments at its existing operations were $37.7 million and
$131.6 million for the fourth quarter and year ended December 31, 2014,
respectively. The capital investment for the year at Lucky Friday was
$52.0 million, including $35.2 million for the #4 Shaft Project. At
Greens Creek, capital investment was $29.3 million and was focused on
underground mine development, rehabilitation, definition drilling,
equipment rebuilds and replacement, concentrator upgrades, and surface
infrastructure improvements. At Casa Berardi, capital investment was
$50.4 million and was focused on mine development and completion of the
shaft deepening project.
Metals Prices
Average realized silver prices in the fourth quarter and full year 2014
were $16.00 and $18.46 per ounce, 21% and 13% lower than the prior
periods, respectively. Realized prices for gold for the 2014 periods
were $1,195 and $1,262 per ounce, 6% and 4% lower than the prior
periods. Realized prices for lead were lower for the 2014 periods than
in 2013, while realized prices for zinc were higher.
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Fourth Quarter Ended
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Twelve Months Ended
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December 31, 2014
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December 31, 2013
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December 31, 2014
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December 31, 2013
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AVERAGE METAL PRICES
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Silver -
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London PM Fix ($/oz)
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$
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16.47
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$
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20.76
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$
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19.08
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$
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23.83
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Realized price per ounce
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$
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16.00
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$
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20.13
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$
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18.46
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$
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21.28
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Gold -
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London PM Fix ($/oz)
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$
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1,200
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$
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1,272
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$
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1,266
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$
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1,411
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Realized price per ounce
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$
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1,195
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$
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1,267
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$
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1,262
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$
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1,317
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Lead -
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LME Cash ($/pound)
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$
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0.91
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$
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0.96
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$
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0.95
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$
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0.97
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Realized price per pound
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$
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0.93
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$
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1.01
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$
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0.98
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$
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1.00
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Zinc -
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LME Cash ($/pound)
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$
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1.01
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$
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0.87
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$
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0.98
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$
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0.87
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Realized price per pound
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$
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1.03
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$
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0.88
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$
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0.99
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$
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0.88
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Base Metals Forward Sales Contracts
The following table summarizes the quantities of base metals committed
under financially settled forward sales contracts at December 31, 2014:
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Pounds Under Contract
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(in thousands)
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Average Price per Pound
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Zinc
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Lead
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Zinc
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Lead
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CONTRACTS ON PROVISIONAL SALES
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2015 settlements
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19,456
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8,378
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$
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1.01
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$
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0.87
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CONTRACTS ON FORECASTED SALES
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2015 settlements
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46,738
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29,652
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$
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0.96
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$
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1.07
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2016 settlements
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44,699
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34,337
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$
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0.99
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$
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1.03
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2017 settlements
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1,984
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—
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$
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1.04
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N/A
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The contracts represent 31% of the forecasted payable zinc production
for the three-year period 2015-2017 at an average price of $0.98 per
pound and 28% of the forecasted payable lead production for the
three-year period 2015-2017 at an average price of $1.05 per pound.
OPERATIONS OVERVIEW
Overview
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Greens Creek production of 2.5 million and 7.8 million ounces of
silver in the fourth quarter and full year 2014 increased 34% and 5%
over the same periods of 2013, as the mine performed at the high end
of its expected production range.
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Lucky Friday silver production of 745,766 and 3,239,151 ounces for the
fourth quarter and full year 2014 increased 16% and 122% over the same
periods of 2013, as the mine benefited from 12 months of full
production.
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Casa Berardi gold production of 39,385 and 128,244 ounces for the
fourth quarter and full year 2014 represents 22% and 105% increases
over production achieved under Hecla’s ownership in the 2013 periods
as Hecla benefited from a full year of ownership of the mine.
The following table provides the production and cash cost, after
by-product credits, per silver and gold ounce summary for the fourth
quarter and twelve months ended December 31, 2014 and 2013:
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Fourth Quarter and Year Ended
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Fourth Quarter and Year Ended
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December 31, 2014
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December 31, 2013
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Production (ounces)
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Increase over 2013
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Cash costs, after by-product credits, per silver or gold ounce1,2
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Production (ounces)
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Cash costs, after by-product credits, per silver or gold ounce1,2
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Q4
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Year
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Q4
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Year
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Q4
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Year
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Q4
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Year
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Q4
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Year
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Silver
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3,213,096
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11,090,506
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29%
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24%
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$4.58
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$4.81
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2,488,722
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8,919,728
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$7.33
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$6.84
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Gold
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54,674
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186,997
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16%
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56%
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$635
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$826
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47,108
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119,989
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$824
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$951
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Greens Creek
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2,459,092
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7,826,341
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34%
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5%
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$2.74
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$2.89
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1,841,081
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7,448,347
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$5.15
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$4.42
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Lucky Friday
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745,766
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3,239,151
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16%
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122%
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$10.65
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$9.44
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642,224
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1,459,000
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$13.59
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$19.21
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Casa Berardi3 |
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39,385
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128,244
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22%
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N/A
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$635
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$826
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32,386
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62,532
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$824
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$951
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(1)
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Cash cost, after by-product credits, per silver or gold ounce
represent a non-GAAP measurement. A reconciliation of cash cost,
after by-product credits, per ounce of silver and gold to cost of
sales and other direct production costs and depreciation, depletion
and amortization (GAAP) can be found at the end of the release.
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(2) |
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Cash cost, after by-product credits, per gold ounce is only
applicable to Casa Berardi production. Gold produced from Greens
Creek is used as a by-product credit against the silver cash cost.
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(3) |
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Casa Berardi mine was acquired on June 1, 2013.
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The following table provides the production summary on a consolidated
basis for the fourth quarter and twelve months ended December 31, 2014
and 2013:
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Fourth Quarter Ended
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Twelve Months Ended
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December 31,
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December 31,
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December 31,
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December 31,
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2014
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2013
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2014
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2013
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PRODUCTION SUMMARY
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Silver -
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Ounces produced
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3,213,096
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2,488,722
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11,090,506
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8,919,728
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Payable ounces sold
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2,531,083
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2,088,650
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9,499,221
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|
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8,019,299
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Gold -
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Ounces produced
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54,674
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47,108
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186,997
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119,989
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Payable ounces sold
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|
49,469
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|
|
40,861
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177,584
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|
|
104,489
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Lead -
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Tons produced
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9,787
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9,347
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40,255
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30,374
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Payable tons sold
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|
7,422
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|
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7,601
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32,632
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25,432
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Zinc -
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Tons produced
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17,219
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|
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16,416
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|
|
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67,969
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|
|
61,406
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|
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Payable tons sold
|
|
10,996
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|
|
11,117
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|
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48,648
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42,509
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Greens Creek Mine - Alaska
Silver production at Greens Creek in 2014 was 2.5 million ounces for the
fourth quarter and 7.8 million ounces for the year. The mine
demonstrated strong production throughout 2014, producing 3.5 million
ounces of silver in the first half of the year and 4.3 million ounces in
the second half. The silver production increased over 2013 due to higher
silver ore grades, particularly during the fourth quarter of 2014. The
mill operated at an average of 2,236 tons per day in 2014, which is the
highest daily average since the mine began operations in 1989.
Cash cost, after by-product credits, per silver ounce at Greens Creek
was $2.74 and $2.89 for the fourth quarter and full year, respectively,
compared to $5.15 and $4.42 for the same periods in 2013. The decrease
in cash costs, after by-product credits, per silver ounce for 2014
compared to 2013 was the result of lower milling costs and higher
by-product credits and silver production. Milling costs decreased in
2014 compared to 2013 due to increased availability of less expensive
hydroelectric power. The value of by-product metals produced increased
as a result of higher zinc and gold production and higher zinc prices,
partially offset by lower gold prices.
Lucky Friday Mine - Idaho
The Lucky Friday mine produced 745,766 ounces of silver in the fourth
quarter and 3,239,151 ounces of silver for the full year 2014, compared
to 642,224 ounces and 1,459,000 ounces for the same periods in 2013. The
increase in annual production is due to both higher throughput and
grades. The grades increased over two ounces per ton due to mine
sequencing. With the mine fully operational, throughput increased 77%
averaging almost 850 tons per day.
Cash cost, after by-product credits, per silver ounce at Lucky Friday
was $10.65 and $9.44 in the fourth quarter and full year, respectively,
compared to $13.59 and $19.21 for the same periods in 2013. The per
ounce costs declined almost $10 per ounce for the year due to higher
production. These 2014 per ounce costs were slightly higher in the
fourth quarter compared to the third quarter due primarily to lower
silver production as a result of limitations on backfill that typically
occur once or twice a year.
The #4 Shaft Project is a key growth project that is currently excavated
to the 7580 level, with work continuing on the station at that level.
The #4 Shaft Project is more than 75% completed, and is expected to be
finished in 2016, allowing access to higher-grade zones beginning in
2018 once the associated development is concluded. The #4 Shaft Project
is expected to cost approximately $215 million, with about $50 million
left to be spent over the next two years.
Casa Berardi Gold Mine - Quebec
The Casa Berardi mine, acquired from Aurizon Mines Ltd. on June 1, 2013,
produced 39,385 ounces of gold in the fourth quarter and 128,244 ounces
for the full year 2014, compared to 32,386 and 62,532 for the same 2013
periods. The increased gold production during the periods was due in
part to higher grades and higher recoveries as well as operating the
mine for the full year in 2014. The mill throughput rate averaged 2,421
tons per day in the fourth quarter.
Cash cost, after by-product credits, per gold ounce was $635, for the
fourth quarter and $826 for 2014, a 23% and 13% decrease from 2013
periods. The lower costs during the year were due in part to higher
production as well as changes in the CAD/USD exchange rate.
The West Mine shaft deepening project, which included construction of
loading pockets and other related infrastructure, was completed in the
fourth quarter of 2014, and is expected to improve mine operations by
providing additional access to the 118 and 123 zones for transporting
ore and waste from underground. Excavation of the 985 drift (previously
referred to as 1010) from the deepened shaft is expected to begin in
2015. This drift is expected to improve ventilation and material
handling and also provide a platform for deeper exploration drilling.
2015 GUIDANCE
For the full year 2015, based on current metals prices, the Company
expects:
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|
|
|
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|
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Cash cost, after by-product
|
|
|
2015E1 Silver
|
|
|
2015E Gold
|
|
|
credits, per silver/gold
|
Mine
|
|
Production (Moz)
|
|
|
Production (oz)
|
|
|
ounce2,3
|
Greens Creek
|
|
7.3
|
|
|
55,000
|
|
|
$4.50 per silver oz
|
Lucky Friday
|
|
3.2
|
|
|
|
|
|
$8.75 per silver oz
|
Casa Berardi
|
|
|
|
|
130,000
|
|
|
$825 per gold oz
|
Total
|
|
10.5
|
|
|
185,000
|
|
|
$6.00 per silver oz
|
Silver Equivalent Production2 |
|
35.0
|
|
|
|
|
|
|
|
|
|
2015E capital expenditures (excluding capitalized interest)
|
|
$145 million
|
|
|
|
2015E pre-development and exploration expenditures
|
|
$18 million
|
(1)
|
|
2015E refers to the Company’s expectations for 2015
|
(2)
|
|
Metal price assumptions used for calculations: Au $1,225/oz, Ag
$17.25/oz, Zn $0.90/lb, Pb $0.95/lb; USD/CAD assumed to be $0.91.
|
(3)
|
|
Cash cost, after by-product credits, per silver and gold ounce
represents a non-GAAP measurement. A reconciliation of historical
cash cost, after by-product credits, per ounce of silver and gold to
cost of sales and other direct production costs and depreciation,
depletion and amortization (GAAP) can be found at the end of the
release.
|
|
|
|
DIVIDEND
TheBoard of Directors declared a quarterly dividend of $0.0025
per share of common stock, payable on or about March 23, 2015, to
shareholders of record on March 13, 2015. The Company’s realized silver
price was $16.00 in the fourth quarter and therefore did not satisfy the
criteria for a larger dividend under the Company’s dividend policy.
The Board of Directors also declared the regular quarterly dividend of
$0.875 per share on the 157,816 outstanding shares of Series B
Cumulative Convertible Preferred Stock. This represents a total amount
to be paid of approximately $138,000. The cash dividend is payable April
1, 2015, to shareholders of record on March 13, 2015.
CONFERENCE CALL AND WEBCAST
A conference call and webcast will be held today, Wednesday, February
18, at 10:00 a.m. Eastern Time to discuss these results. You may join
the conference call by dialing toll-free 1-877-703-6103 or for
international by dialing 1-857-244-7302. 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
Hecla Mining Company (HL) is a leading low-cost U.S. silver
producer with operating mines in Alaska and Idaho, and is a growing gold
producer with an operating mine in Quebec, Canada. The Company also has
exploration and pre-development properties in five 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 Statement Regarding Forward-Looking
Statements, Including 2015 Outlook
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,
including as a result of the #4 Shaft Project; (ii) estimates of future
costs including the expected cost of the #4 Shaft project and cash cost,
after by-product credits per ounce of silver/gold; (iii) guidance for
2015 for silver and gold production, silver equivalent production, cash
cost, after by-product credits, capital expenditures and pre-development
and exploration expenditures (which assumes metal prices of gold at
$1,225/oz., silver at $17.25/oz., zinc at $0.90/lb. and lead at
$0.95/lb. and USD/CAD assumed to be at $0.91); (iv) expectations
regarding the development, growth and exploration potential of the
Company’s projects; (v) the Company’s mineral reserves and resources;
(vi) expectations for 2015 capital and exploration expenses to be fully
funded by adjusted EBITDA. 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 2014 Form 10-K, filed on February 18, 2015 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, 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”). Also included in these three
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.
The current Casa Berardi drill program was performed on core sawed in
half and included the insertion of blanks and standards of variable
grade in every 24 core samples. Standards were generally provided by
Analytical Solutions Ltd and prepared in 30 gram bags. Samples were sent
to the Swastika Laboratories in Swastika, Ontario, a registered
accredited laboratory, where they were dried, crushed, and split for
gold analysis. Analysis for gold was completed by fire assay with AA
finish. Gold over-limits were analyzed by fire assay with gravimetric
finish. Data received from the lab were subject to validation using
in-built program triggers to identify outside limit blank or standard
assays that require re-analysis. Over 5% of the original pulps and
rejects are sent for re-assay to ALS Chemex in Val d’Or for quality
control.
Dr. McDonald reviewed and verified information regarding drill sampling,
data verification of all digitally-collected data, drill surveys and
specific gravity determinations relating to the Casa Berardi mine. The
review encompassed quality assurance programs and quality control
measures including analytical or testing practice, chain-of-custody
procedures, sample storage procedures and included independent sample
collection and analysis. This review found the information and
procedures meet industry standards and are adequate for Mineral Resource
and Mineral Reserve estimation and mine planning purposes.
|
|
|
|
|
|
HECLA MINING COMPANY
|
Consolidated Statements of Income (Loss)
|
(dollars and shares in thousands, except per share amounts -
unaudited)
|
|
|
|
|
|
|
|
|
Fourth Quarter Ended
|
|
|
Twelve Months Ended
|
|
|
December 31,
|
|
December 31,
|
|
|
December 31,
|
|
December 31,
|
|
|
2014
|
|
2013
|
|
|
2014
|
|
2013
|
Sales of products
|
|
$
|
121,985
|
|
|
$
|
114,180
|
|
|
|
$
|
500,781
|
|
|
$
|
382,589
|
|
Cost of sales and other direct production costs
|
|
68,986
|
|
|
71,546
|
|
|
|
304,446
|
|
|
235,316
|
|
Depreciation, depletion and amortization
|
|
30,792
|
|
|
27,903
|
|
|
|
111,134
|
|
|
81,127
|
|
|
|
99,778
|
|
|
99,449
|
|
|
|
415,580
|
|
|
316,443
|
|
Gross profit
|
|
22,207
|
|
|
14,731
|
|
|
|
85,201
|
|
|
66,146
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and administrative
|
|
7,554
|
|
|
6,784
|
|
|
|
31,538
|
|
|
28,925
|
|
Exploration
|
|
4,612
|
|
|
4,991
|
|
|
|
17,698
|
|
|
23,502
|
|
Pre-development
|
|
722
|
|
|
1,401
|
|
|
|
1,969
|
|
|
14,148
|
|
Other operating expense (income)
|
|
442
|
|
|
(6
|
)
|
|
|
2,295
|
|
|
1,641
|
|
Loss (gain) on disposition of property, plants, equipment and
mineral interests
|
|
(25
|
)
|
|
1
|
|
|
|
(25
|
)
|
|
(75
|
)
|
Lucky Friday suspension-related income
|
|
—
|
|
|
—
|
|
|
|
—
|
|
|
(1,401
|
)
|
Aurizon acquisition costs
|
|
—
|
|
|
29
|
|
|
|
—
|
|
|
26,397
|
|
Provision for closed operations and reclamation
|
|
6,489
|
|
|
831
|
|
|
|
10,098
|
|
|
5,403
|
|
|
|
19,794
|
|
|
14,031
|
|
|
|
63,573
|
|
|
98,540
|
|
Income (loss) from operations
|
|
2,413
|
|
|
700
|
|
|
|
21,628
|
|
|
(32,394
|
)
|
Other income (expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain (loss) on derivative contracts
|
|
11,694
|
|
|
(5,537
|
)
|
|
|
9,134
|
|
|
17,979
|
|
Gain on sale of investments
|
|
—
|
|
|
—
|
|
|
|
—
|
|
|
197
|
|
Unrealized loss on investments
|
|
(474
|
)
|
|
(2,639
|
)
|
|
|
(3,224
|
)
|
|
(2,639
|
)
|
Net foreign exchange gain
|
|
5,484
|
|
|
4,043
|
|
|
|
11,535
|
|
|
2,959
|
|
Interest and other income (loss)
|
|
78
|
|
|
(165
|
)
|
|
|
286
|
|
|
662
|
|
Interest expense
|
|
(6,468
|
)
|
|
(7,183
|
)
|
|
|
(26,775
|
)
|
|
(21,689
|
)
|
|
|
10,314
|
|
|
(11,481
|
)
|
|
|
(9,044
|
)
|
|
(2,531
|
)
|
Income (loss) before income taxes
|
|
12,727
|
|
|
(10,781
|
)
|
|
|
12,584
|
|
|
(34,925
|
)
|
Income tax benefit (provision)
|
|
4,178
|
|
|
7,873
|
|
|
|
5,240
|
|
|
9,795
|
|
Net income (loss)
|
|
16,905
|
|
|
(2,908
|
)
|
|
|
17,824
|
|
|
(25,130
|
)
|
Preferred stock dividends
|
|
(138
|
)
|
|
(138
|
)
|
|
|
(552
|
)
|
|
(552
|
)
|
Income (loss) applicable to common stockholders
|
|
$
|
16,767
|
|
|
$
|
(3,046
|
)
|
|
|
$
|
17,272
|
|
|
$
|
(25,682
|
)
|
Basic income (loss) per common share after preferred dividends
|
|
$
|
0.05
|
|
|
$
|
(0.01
|
)
|
|
|
$
|
0.05
|
|
|
$
|
(0.08
|
)
|
Diluted income (loss)per common share after preferred dividends
|
|
$
|
0.05
|
|
|
$
|
(0.01
|
)
|
|
|
$
|
0.05
|
|
|
$
|
(0.08
|
)
|
Weighted average number of common shares outstanding basic
|
|
367,219
|
|
|
342,649
|
|
|
|
353,442
|
|
|
318,679
|
|
Weighted average number of common shares outstanding diluted
|
|
367,653
|
|
|
342,649
|
|
|
|
357,435
|
|
|
318,679
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HECLA MINING COMPANY
|
Consolidated Balance Sheets
|
(dollars and share in thousands - unaudited)
|
|
|
|
|
|
|
|
|
December 31, 2014
|
|
|
December 31, 2013
|
ASSETS
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
209,665
|
|
|
|
$
|
212,175
|
|
Accounts receivable
|
|
34,880
|
|
|
|
38,565
|
|
Inventories
|
|
47,473
|
|
|
|
48,837
|
|
Current deferred income taxes
|
|
12,029
|
|
|
|
35,734
|
|
Other current assets
|
|
12,312
|
|
|
|
8,324
|
|
Total current assets
|
|
316,359
|
|
|
|
343,635
|
|
Non-current investments
|
|
4,920
|
|
|
|
7,019
|
|
Non-current restricted cash and investments
|
|
883
|
|
|
|
5,217
|
|
Properties, plants, equipment and mineral interests, net
|
|
1,831,564
|
|
|
|
1,791,601
|
|
Non-current deferred income taxes
|
|
98,923
|
|
|
|
78,780
|
|
Other non-current assets and deferred charges
|
|
9,415
|
|
|
|
5,867
|
|
Total assets
|
|
$
|
2,262,064
|
|
|
|
$
|
2,232,119
|
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
Accounts payable and accrued liabilities
|
|
$
|
41,869
|
|
|
|
$
|
51,152
|
|
Accrued payroll and related benefits
|
|
27,956
|
|
|
|
18,769
|
|
Accrued taxes
|
|
4,241
|
|
|
|
7,881
|
|
Current portion of capital leases
|
|
9,491
|
|
|
|
8,471
|
|
Current portion of accrued reclamation and closure costs
|
|
1,631
|
|
|
|
58,425
|
|
Other current liabilities
|
|
5,797
|
|
|
|
6,781
|
|
Total current liabilities
|
|
90,985
|
|
|
|
151,479
|
|
Capital leases
|
|
13,650
|
|
|
|
14,332
|
|
Accrued reclamation and closure costs
|
|
55,619
|
|
|
|
46,766
|
|
Long-term debt
|
|
498,479
|
|
|
|
490,726
|
|
Non-current deferred tax liability
|
|
153,300
|
|
|
|
164,861
|
|
Other non-current liabilities
|
|
53,057
|
|
|
|
37,536
|
|
Total liabilities
|
|
865,090
|
|
|
|
905,700
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
Preferred stock
|
|
39
|
|
|
|
39
|
|
Common stock
|
|
92,382
|
|
|
|
85,896
|
|
Capital surplus
|
|
1,486,750
|
|
|
|
1,426,845
|
|
Accumulated deficit
|
|
(141,306
|
)
|
|
|
(154,982
|
)
|
Accumulated other comprehensive loss
|
|
(32,031
|
)
|
|
|
(26,299
|
)
|
Treasury stock
|
|
(8,860
|
)
|
|
|
(5,080
|
)
|
Total stockholders’ equity
|
|
1,396,974
|
|
|
|
1,326,419
|
|
Total liabilities and stockholders’ equity
|
|
$
|
2,262,064
|
|
|
|
$
|
2,232,119
|
|
Common shares outstanding
|
|
367,377
|
|
|
|
342,663
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HECLA MINING COMPANY
|
Consolidated Statements of Cash Flows
|
(dollars in thousands - unaudited)
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
2014
|
|
|
2013
|
OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
Net income (loss)
|
|
$
|
17,824
|
|
|
|
$
|
(25,130
|
)
|
Non-cash elements included in net income (loss):
|
|
|
|
|
|
|
|
Depreciation, depletion and amortization
|
|
112,173
|
|
|
|
82,366
|
|
Gain on sale of investments
|
|
—
|
|
|
|
(197
|
)
|
Unrealized loss on investments
|
|
3,224
|
|
|
|
2,639
|
|
Gain on disposition of properties, plants, equipment and mineral
interests
|
|
(25
|
)
|
|
|
(75
|
)
|
Provision for reclamation and closure costs
|
|
10,215
|
|
|
|
1,788
|
|
Deferred income taxes
|
|
1,895
|
|
|
|
(5,893
|
)
|
Stock compensation
|
|
4,965
|
|
|
|
4,461
|
|
Amortization of loan origination fees
|
|
2,183
|
|
|
|
1,435
|
|
Gain on derivative contracts
|
|
(6,886
|
)
|
|
|
(1,338
|
)
|
Foreign exchange gain
|
|
(10,482
|
)
|
|
|
(928
|
)
|
Reversal of purchase price allocation to product inventory
|
|
—
|
|
|
|
550
|
|
Other non-cash charges, net
|
|
(858
|
)
|
|
|
86
|
|
Change in assets and liabilities:
|
|
|
|
|
|
|
|
Accounts receivable
|
|
3,091
|
|
|
|
(1,313
|
)
|
Inventories
|
|
1,119
|
|
|
|
(6,507
|
)
|
Other current and non-current assets
|
|
(580
|
)
|
|
|
3,281
|
|
Accounts payable and accrued liabilities
|
|
(19,697
|
)
|
|
|
(10,927
|
)
|
Accrued payroll and related benefits
|
|
16,422
|
|
|
|
539
|
|
Accrued taxes
|
|
(3,612
|
)
|
|
|
(4,775
|
)
|
Accrued reclamation and closure costs and other non-current
liabilities
|
|
(47,847
|
)
|
|
|
(13,418
|
)
|
Cash provided by operating activities
|
|
83,124
|
|
|
|
26,644
|
|
|
|
|
|
|
|
|
|
INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
Additions to properties, plants, equipment and mineral interests
|
|
(122,537
|
)
|
|
|
(150,736
|
)
|
Acquisition of Aurizon, net of cash acquired
|
|
—
|
|
|
|
(321,117
|
)
|
Proceeds from sale of investments
|
|
—
|
|
|
|
1,772
|
|
Proceeds from disposition of properties, plants and equipment
|
|
428
|
|
|
|
460
|
|
Change in restricted cash and investment balances
|
|
4,334
|
|
|
|
125
|
|
Purchases of investments
|
|
(580
|
)
|
|
|
(6,001
|
)
|
Net cash used in investing activities
|
|
(118,355
|
)
|
|
|
(475,497
|
)
|
|
|
|
|
|
|
|
|
FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
Proceeds from exercise of warrants
|
|
54,418
|
|
|
|
61
|
|
Borrowings on debt
|
|
—
|
|
|
|
490,000
|
|
Acquisition of treasury shares
|
|
(3,740
|
)
|
|
|
(286
|
)
|
Dividend paid to common stockholders
|
|
(3,547
|
)
|
|
|
(5,991
|
)
|
Dividends paid to preferred stockholders
|
|
(552
|
)
|
|
|
(552
|
)
|
Debt issuance and loan origination fees paid
|
|
(938
|
)
|
|
|
(1,244
|
)
|
Repayments of capital leases
|
|
(9,137
|
)
|
|
|
(7,039
|
)
|
Net cash provided by financing activities
|
|
36,504
|
|
|
|
474,949
|
|
Effect of exchange rates on cash
|
|
(3,783
|
)
|
|
|
(4,905
|
)
|
Net increase (decrease) in cash and cash equivalents
|
|
(2,510
|
)
|
|
|
21,191
|
|
Cash and cash equivalents at beginning of year
|
|
212,175
|
|
|
|
190,984
|
|
Cash and cash equivalents at end of year
|
|
$
|
209,665
|
|
|
|
$
|
212,175
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HECLA MINING COMPANY
|
Production Data
|
|
|
|
|
|
|
|
|
Fourth Quarter Ended
|
|
|
Twelve Months Ended
|
|
|
December 31,
|
|
December 31,
|
|
|
December 31,
|
|
December 31,
|
|
|
2014
|
|
2013
|
|
|
2014
|
|
2013
|
GREENS CREEK UNIT
|
|
|
|
|
|
|
|
|
|
|
|
|
Tons of ore milled
|
|
208,057
|
|
|
205,307
|
|
|
|
816,213
|
|
|
805,322
|
Mining cost per ton
|
|
$
|
68.58
|
|
|
$
|
69.45
|
|
|
|
$
|
69.45
|
|
|
$
|
68.43
|
Milling cost per ton
|
|
$
|
30.74
|
|
|
$
|
31.62
|
|
|
|
$
|
30.56
|
|
|
$
|
33.92
|
Ore grade milled - Silver (oz./ton)
|
|
15.37
|
|
|
12.52
|
|
|
|
13.24
|
|
|
13.04
|
Ore grade milled - Gold (oz./ton)
|
|
0.11
|
|
|
0.12
|
|
|
|
0.12
|
|
|
0.12
|
Ore grade milled - Lead (%)
|
|
3.27
|
|
|
3.20
|
|
|
|
3.22
|
|
|
3.33
|
Ore grade milled - Zinc (%)
|
|
8.47
|
|
|
8.41
|
|
|
|
8.38
|
|
|
8.47
|
Silver produced (oz.)
|
|
2,459,092
|
|
|
1,841,081
|
|
|
|
7,826,341
|
|
|
7,448,347
|
Gold produced (oz.)
|
|
15,289
|
|
|
14,722
|
|
|
|
58,753
|
|
|
57,457
|
Lead produced (tons)
|
|
5,249
|
|
|
4,959
|
|
|
|
20,151
|
|
|
20,114
|
Zinc produced (tons)
|
|
15,332
|
|
|
14,637
|
|
|
|
59,810
|
|
|
57,614
|
Cash cost, after by-product credits, per silver ounce (1)
|
|
$
|
2.74
|
|
|
$
|
5.15
|
|
|
|
$
|
2.89
|
|
|
$
|
4.42
|
Capital additions (in thousands)
|
|
$
|
9,720
|
|
|
$
|
11,971
|
|
|
|
$
|
29,265
|
|
|
$
|
57,119
|
LUCKY FRIDAY UNIT
|
|
|
|
|
|
|
|
|
|
|
|
|
Tons of ore processed
|
|
70,623
|
|
|
76,128
|
|
|
|
309,070
|
|
|
174,331
|
Mining cost per ton
|
|
$
|
93.13
|
|
|
$
|
86.76
|
|
|
|
$
|
87.90
|
|
|
$
|
100.49
|
Milling cost per ton
|
|
$
|
20.78
|
|
|
$
|
23.57
|
|
|
|
$
|
21.56
|
|
|
$
|
29.74
|
Ore grade milled - Silver (oz./ton)
|
|
11.00
|
|
|
9.06
|
|
|
|
11.00
|
|
|
8.99
|
Ore grade milled - Lead (%)
|
|
6.75
|
|
|
6.07
|
|
|
|
6.87
|
|
|
6.19
|
Ore grade milled - Zinc (%)
|
|
2.89
|
|
|
2.80
|
|
|
|
2.93
|
|
|
2.69
|
Silver produced (oz.)
|
|
745,766
|
|
|
642,224
|
|
|
|
3,239,151
|
|
|
1,459,000
|
Lead produced (tons)
|
|
4,538
|
|
|
4,388
|
|
|
|
20,104
|
|
|
10,260
|
Zinc produced (tons)
|
|
1,887
|
|
|
1,780
|
|
|
|
8,159
|
|
|
3,793
|
Cash cost, after by-product credits, per silver ounce (1)
|
|
$
|
10.65
|
|
|
$
|
13.59
|
|
|
|
$
|
9.44
|
|
|
$
|
19.21
|
Capital additions (in thousands)
|
|
$
|
15,476
|
|
|
$
|
13,077
|
|
|
|
$
|
51,992
|
|
|
$
|
55,902
|
CASA BERARDI UNIT
|
|
|
|
|
|
|
|
|
|
|
|
|
Tons of ore milled
|
|
222,711
|
|
|
184,897
|
|
|
|
827,580
|
|
|
387,608
|
Mining cost per ton
|
|
$
|
89.54
|
|
|
$
|
118.47
|
|
|
|
$
|
103.53
|
|
|
$
|
127.56
|
Milling cost per ton
|
|
$
|
20.45
|
|
|
$
|
22.87
|
|
|
|
$
|
20.75
|
|
|
$
|
23.02
|
Ore grade milled - Gold (oz./ton)
|
|
0.19
|
|
|
0.19
|
|
|
|
0.17
|
|
|
0.18
|
Ore grade milled - Silver (oz./ton)
|
|
0.041
|
|
|
0.032
|
|
|
|
0.034
|
|
|
0.036
|
Silver produced (oz.)
|
|
8,238
|
|
|
5,417
|
|
|
|
25,014
|
|
|
12,381
|
Gold produced (oz.)
|
|
39,385
|
|
|
32,386
|
|
|
|
128,244
|
|
|
62,532
|
Cash cost, after by-product credits, per gold ounce (1)
|
|
$
|
635
|
|
|
$
|
824
|
|
|
|
$
|
826
|
|
|
$
|
951
|
Capital additions (in thousands)
|
|
$
|
12,536
|
|
|
$
|
18,591
|
|
|
|
$
|
50,350
|
|
|
$
|
41,425
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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.
|
|
HECLA MINING COMPANY Reconciliation of Non-GAAP Measures to
GAAP (Unaudited)
This release contains references to a non-GAAP measure of cash cost,
before by-product credits, per ounce and cash cost, after by-product
credits, per ounce. Cash cost, before by-product credits, per ounce and
cash cost, after by-product credits, per ounce represent non-U.S.
Generally Accepted Accounting Principles (GAAP) measurements that the
Company believes provide management and investors an indication of net
cash flow. Management also uses this measurement 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 precious metals companies (including the Silver Institute)
in an effort to provide a uniform standard for comparison purposes;
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 are the most comparable financial measures calculated in
accordance with GAAP to cash cost, before by-product credits and cash
cost, after by-product credits per ounce of silver/gold.
As depicted in the Greens Creek Unit and the Lucky Friday 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 and Lucky Friday
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
In thousands (except per ounce amounts)
|
|
December 31,
|
|
December 31,
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
By-product value, all silver properties:
|
|
|
|
|
|
|
|
|
|
|
|
Zinc
|
|
$
|
25,063
|
|
|
$
|
20,765
|
|
|
$
|
95,701
|
|
|
$
|
77,616
|
Gold
|
|
15,298
|
|
|
15,491
|
|
|
61,871
|
|
|
66,907
|
Lead
|
|
15,149
|
|
|
15,205
|
|
|
66,082
|
|
|
48,973
|
Total by-product credits
|
|
$
|
55,510
|
|
|
$
|
51,461
|
|
|
$
|
223,654
|
|
|
$
|
193,496
|
|
|
|
|
|
|
|
|
|
|
|
|
By-product credits per silver ounce, all silver properties
|
|
|
|
|
|
|
|
|
|
|
|
Zinc
|
|
$
|
7.82
|
|
|
$
|
8.36
|
|
|
$
|
8.65
|
|
|
$
|
8.71
|
Gold
|
|
4.76
|
|
|
6.24
|
|
|
5.59
|
|
|
7.51
|
Lead
|
|
4.73
|
|
|
6.12
|
|
|
5.97
|
|
|
5.50
|
Total by-product credits
|
|
$
|
17.31
|
|
|
$
|
20.72
|
|
|
$
|
20.21
|
|
|
$
|
21.72
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
Three Months Ended
|
|
|
Twelve Months Ended
|
In thousands (except per ounce amounts)
|
|
December 31,
|
|
|
December 31,
|
|
|
2014
|
|
|
2013
|
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Silver by-product value
|
|
$
|
134
|
|
|
$
|
112
|
|
|
|
$
|
464
|
|
|
$
|
262
|
Silver by-product credits per gold ounce
|
|
$
|
3.40
|
|
|
$
|
3.46
|
|
|
|
$
|
3.62
|
|
|
$
|
4.19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table calculates cash cost, before by-product credits, per
ounce and cash cost, after by-product credits, per ounce:
...
|
|
|
|
|
Total, Greens Creek and Lucky Friday
|
|
|
Three Months Ended
|
|
|
Twelve Months Ended
|
In thousands (except per ounce amounts)
|
|
December 31,
|
|
|
December 31,
|
|
|
2014
|
|
|
2013
|
|
|
|
2014
|
|
|
2013
|
|
Cash cost, before by-product credits (1) |
|
$
|
70,189
|
|
|
$
|
69,673
|
|
|
|
$
|
276,842
|
|
|
$
|
254,460
|
|
By-product credits
|
|
(55,510
|
)
|
|
(51,461
|
)
|
|
|
(223,654
|
)
|
|
(193,496
|
)
|
Cash cost, after by-product credits
|
|
14,679
|
|
|
18,212
|
|
|
|
53,188
|
|
|
60,964
|
|
Divided by silver ounces produced
|
|
3,205
|
|
|
2,483
|
|
|
|
11,065
|
|
|
8,907
|
|
Cash cost, before by-product credits, per silver ounce
|
|
$
|
21.89
|
|
|
$
|
28.05
|
|
|
|
$
|
25.02
|
|
|
$
|
28.56
|
|
By-product credits per silver ounce
|
|
$
|
(17.31
|
)
|
|
$
|
(20.72
|
)
|
|
|
$
|
(20.21
|
)
|
|
$
|
(21.72
|
)
|
Cash cost, after by-product credits, per ounce
|
|
$
|
4.58
|
|
|
$
|
7.33
|
|
|
|
$
|
4.81
|
|
|
$
|
6.84
|
|
Reconciliation to GAAP:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash cost, after by-product credits
|
|
$
|
14,679
|
|
|
$
|
18,212
|
|
|
|
$
|
53,188
|
|
|
$
|
60,964
|
|
Depreciation, depletion and amortization
|
|
19,230
|
|
|
16,468
|
|
|
|
72,936
|
|
|
63,098
|
|
Treatment costs
|
|
(21,293
|
)
|
|
(20,769
|
)
|
|
|
(82,639
|
)
|
|
(76,824
|
)
|
By-product credits
|
|
55,510
|
|
|
51,461
|
|
|
|
223,654
|
|
|
193,496
|
|
Change in product inventory
|
|
(5,617
|
)
|
|
(4,085
|
)
|
|
|
(1,649
|
)
|
|
(246
|
)
|
Reclamation and other costs
|
|
176
|
|
|
727
|
|
|
|
2,046
|
|
|
2,100
|
|
Cost of sales and other direct production costs and depreciation,
depletion and amortization (GAAP)
|
|
$
|
62,685
|
|
|
$
|
62,014
|
|
|
|
$
|
267,536
|
|
|
$
|
242,588
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Greens Creek Unit
|
|
|
Three Months Ended
|
|
|
Twelve Months Ended
|
In thousands (except per ounce amounts)
|
|
December 31,
|
|
|
December 31,
|
|
|
2014
|
|
|
2013
|
|
|
|
2014
|
|
|
2013
|
|
Cash cost, before by-product credits (1) |
|
$
|
51,828
|
|
|
$
|
50,906
|
|
|
|
$
|
199,247
|
|
|
$
|
203,496
|
|
By-product credits
|
|
(45,088
|
)
|
|
(41,425
|
)
|
|
|
(176,650
|
)
|
|
(170,563
|
)
|
Cash cost, after by-product credits
|
|
6,740
|
|
|
9,481
|
|
|
|
22,597
|
|
|
32,933
|
|
Divided by silver ounces produced
|
|
2,459
|
|
|
1,841
|
|
|
|
7,826
|
|
|
7,448
|
|
Cash cost, before by-product credits, per silver ounce
|
|
$
|
21.08
|
|
|
$
|
27.65
|
|
|
|
$
|
25.46
|
|
|
$
|
27.32
|
|
By-product credits per silver ounce
|
|
$
|
(18.34
|
)
|
|
$
|
(22.50
|
)
|
|
|
$
|
(22.57
|
)
|
|
$
|
(22.90
|
)
|
Cash cost, after by-product credits, per ounce
|
|
$
|
2.74
|
|
|
$
|
5.15
|
|
|
|
$
|
2.89
|
|
|
$
|
4.42
|
|
Reconciliation to GAAP:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash cost, after by-product credits
|
|
$
|
6,740
|
|
|
$
|
9,481
|
|
|
|
$
|
22,597
|
|
|
$
|
32,933
|
|
Depreciation, depletion and amortization
|
|
16,803
|
|
|
14,149
|
|
|
|
63,505
|
|
|
55,265
|
|
Treatment costs
|
|
(17,255
|
)
|
|
(16,766
|
)
|
|
|
(63,313
|
)
|
|
(67,341
|
)
|
By-product credits
|
|
45,088
|
|
|
41,425
|
|
|
|
176,650
|
|
|
170,563
|
|
Change in product inventory
|
|
(5,295
|
)
|
|
(5,133
|
)
|
|
|
(1,706
|
)
|
|
159
|
|
Reclamation and other costs
|
|
169
|
|
|
634
|
|
|
|
1,949
|
|
|
1,947
|
|
Cost of sales and other direct production costs and depreciation,
depletion and amortization (GAAP)
|
|
$
|
46,250
|
|
|
$
|
43,790
|
|
|
|
$
|
199,682
|
|
|
$
|
193,526
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lucky Friday Unit (2)
|
|
|
Three Months Ended
|
|
|
Twelve Months Ended
|
In thousands (except per ounce amounts)
|
|
December 31,
|
|
|
December 31,
|
|
|
2014
|
|
|
2013
|
|
|
|
2014
|
|
|
2013
|
|
Cash cost, before by-product credits (1) |
|
$
|
18,361
|
|
|
$
|
18,766
|
|
|
|
$
|
77,595
|
|
|
$
|
50,964
|
|
By-product credits
|
|
(10,422
|
)
|
|
(10,036
|
)
|
|
|
(47,004
|
)
|
|
(22,933
|
)
|
Cash cost, after by-product credits
|
|
7,939
|
|
|
8,730
|
|
|
|
30,591
|
|
|
28,031
|
|
Divided by silver ounces produced
|
|
746
|
|
|
642
|
|
|
|
3,239
|
|
|
1,459
|
|
Cash cost, before by-product credits, per silver ounce
|
|
$
|
24.62
|
|
|
$
|
29.22
|
|
|
|
$
|
23.95
|
|
|
$
|
34.93
|
|
By-product credits per silver ounce
|
|
$
|
(13.97
|
)
|
|
$
|
(15.63
|
)
|
|
|
$
|
(14.51
|
)
|
|
$
|
(15.72
|
)
|
Cash cost, after by-product credits, per ounce
|
|
$
|
10.65
|
|
|
$
|
13.59
|
|
|
|
$
|
9.44
|
|
|
$
|
19.21
|
|
Reconciliation to GAAP:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash cost, after by-product credits
|
|
$
|
7,939
|
|
|
$
|
8,730
|
|
|
|
$
|
30,591
|
|
|
$
|
28,031
|
|
Depreciation, depletion and amortization
|
|
2,427
|
|
|
2,319
|
|
|
|
9,431
|
|
|
7,833
|
|
Treatment costs
|
|
(4,038
|
)
|
|
(4,002
|
)
|
|
|
$
|
(19,326
|
)
|
|
(9,482
|
)
|
By-product credits
|
|
10,422
|
|
|
10,036
|
|
|
|
47,004
|
|
|
22,933
|
|
Change in product inventory
|
|
(322
|
)
|
|
1,048
|
|
|
|
$
|
57
|
|
|
(405
|
)
|
Reclamation and other costs
|
|
6
|
|
|
92
|
|
|
|
97
|
|
|
153
|
|
Cost of sales and other direct production costs and depreciation,
depletion and amortization (GAAP)
|
|
$
|
16,434
|
|
|
$
|
18,223
|
|
|
|
$
|
67,854
|
|
|
$
|
49,063
|
|
|
|
|
|
|
Casa Berardi Unit (3)
|
|
|
Three Months Ended
|
|
|
Twelve Months Ended
|
In thousands (except ounce and per ounce amounts)
|
|
December 31,
|
|
|
December 31,
|
|
|
2014
|
|
|
2013
|
|
|
|
2014
|
|
|
2013
|
|
Cash cost, before by-product credits (1) |
|
$
|
25,145
|
|
|
$
|
26,806
|
|
|
|
$
|
106,438
|
|
|
$
|
59,717
|
|
By-product credits
|
|
(134
|
)
|
|
(112
|
)
|
|
|
(464
|
)
|
|
(262
|
)
|
Cash cost, after by-product credits
|
|
25,011
|
|
|
26,694
|
|
|
|
105,974
|
|
|
59,455
|
|
Divided by gold ounces produced
|
|
39,385
|
|
|
32,386
|
|
|
|
128,244
|
|
|
62,532
|
|
Cash cost, before by-product credits, per gold ounce
|
|
$
|
638.44
|
|
|
$
|
827.70
|
|
|
|
$
|
829.97
|
|
|
$
|
954.98
|
|
By-product credits per gold ounce
|
|
$
|
(3.40
|
)
|
|
$
|
(3.46
|
)
|
|
|
$
|
(3.62
|
)
|
|
$
|
(4.19
|
)
|
Cash cost, after by-product credits, per gold ounce
|
|
$
|
635.04
|
|
|
$
|
824.24
|
|
|
|
$
|
826.35
|
|
|
$
|
950.79
|
|
Reconciliation to GAAP:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash cost, after by-product credits
|
|
$
|
25,011
|
|
|
$
|
26,694
|
|
|
|
$
|
105,974
|
|
|
$
|
59,455
|
|
Depreciation, depletion and amortization
|
|
11,562
|
|
|
11,436
|
|
|
|
38,198
|
|
|
18,030
|
|
Treatment costs
|
|
(227
|
)
|
|
(143
|
)
|
|
|
(564
|
)
|
|
(268
|
)
|
By-product credits
|
|
134
|
|
|
112
|
|
|
|
464
|
|
|
262
|
|
Change in product inventory
|
|
414
|
|
|
(723
|
)
|
|
|
3,151
|
|
|
(3,766
|
)
|
Reclamation and other costs
|
|
199
|
|
|
60
|
|
|
|
820
|
|
|
142
|
|
Cost of sales and other direct production costs and depreciation,
depletion and amortization (GAAP)
|
|
$
|
37,093
|
|
|
$
|
37,436
|
|
|
|
$
|
148,043
|
|
|
$
|
73,855
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total, All Locations
|
|
|
Three Months Ended
|
|
|
Twelve Months Ended
|
In thousands
|
|
December 31,
|
|
|
December 31,
|
|
|
2014
|
|
|
2013
|
|
|
|
2014
|
|
|
2013
|
|
Reconciliation to GAAP:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash cost, after by-product credits
|
|
$
|
39,690
|
|
|
$
|
44,906
|
|
|
|
$
|
159,162
|
|
|
$
|
120,419
|
|
Depreciation, depletion and amortization
|
|
30,792
|
|
|
27,904
|
|
|
|
111,134
|
|
|
81,128
|
|
Treatment costs
|
|
(21,520
|
)
|
|
(20,912
|
)
|
|
|
(83,203
|
)
|
|
(77,092
|
)
|
By-product credits
|
|
55,644
|
|
|
51,573
|
|
|
|
224,118
|
|
|
193,758
|
|
Change in product inventory
|
|
(5,204
|
)
|
|
(4,809
|
)
|
|
|
1,502
|
|
|
(4,012
|
)
|
Reclamation and other costs
|
|
375
|
|
|
786
|
|
|
|
2,867
|
|
|
2,242
|
|
Cost of sales and other direct production costs and depreciation,
depletion and amortization (GAAP)
|
|
$
|
99,777
|
|
|
$
|
99,448
|
|
|
|
$
|
415,580
|
|
|
$
|
316,443
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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.
|
(2)
|
|
Production was temporarily suspended at the Lucky Friday unit during
2012 as work was performed to rehabilitate the Silver Shaft, the
primary access from surface to the underground workings at the Lucky
Friday mine. During 2013 we experienced a ramp up period of
production effect costs and production.
|
(3)
|
|
On June 1, 2013, we completed the acquisition of Aurizon Mines Ltd.,
which gave us 100% ownership of the Casa Berardi mine in Quebec,
Canada. The information presented reflects our ownership of Casa
Berardi commencing as of that date. The primary metal produced at
Casa Berardi is gold, with a by-product credit for the value of
silver production.
|
|
|
|
|
|
|
HECLA MINING COMPANY
|
Reconciliation of Net Income (Loss) Applicable to Common
Stockholders (GAAP) to Adjusted Net Income (Loss)(1)
|
(dollars and ounces in thousands, except per share amounts -
unaudited)
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Twelve Months Ended
|
|
|
December 31,
|
|
|
December 31,
|
|
|
2014
|
|
|
2013
|
|
|
|
2014
|
|
|
2013
|
|
Net income (loss) applicable to common stockholders (GAAP)
|
|
$
|
16,767
|
|
|
$
|
(3,046
|
)
|
|
|
$
|
17,272
|
|
|
$
|
(25,682
|
)
|
Adjusting items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Gains)/losses on derivatives contracts
|
|
(11,694
|
)
|
|
5,537
|
|
|
|
(9,134
|
)
|
|
(17,979
|
)
|
Environmental accruals
|
|
5,640
|
|
|
(516
|
)
|
|
|
6,623
|
|
|
(186
|
)
|
Provisional price (gains)/losses
|
|
213
|
|
|
900
|
|
|
|
2,277
|
|
|
16,955
|
|
Lucky Friday suspension-related costs
|
|
—
|
|
|
—
|
|
|
|
—
|
|
|
(1,401
|
)
|
Aurizon acquisition costs
|
|
—
|
|
|
29
|
|
|
|
—
|
|
|
26,397
|
|
Aurizon inventory fair value adjustment
|
|
—
|
|
|
—
|
|
|
|
—
|
|
|
550
|
|
Foreign exchange (gain) loss
|
|
(5,484
|
)
|
|
(4,043
|
)
|
|
|
(11,535
|
)
|
|
(2,959
|
)
|
Income tax effect of above adjustments
|
|
2,336
|
|
|
(725
|
)
|
|
|
94
|
|
|
(8,123
|
)
|
Adjusted net income (loss) applicable to common stockholders
|
|
$
|
7,778
|
|
|
$
|
(1,864
|
)
|
|
|
$
|
5,597
|
|
|
$
|
(12,428
|
)
|
Weighted average shares - basic
|
|
367,219
|
|
|
342,649
|
|
|
|
353,442
|
|
|
318,679
|
|
Weighted average shares - diluted
|
|
367,653
|
|
|
342,649
|
|
|
|
357,435
|
|
|
318,679
|
|
Basic adjusted net income (loss) per common share
|
|
$
|
0.02
|
|
|
$
|
(0.01
|
)
|
|
|
$
|
0.02
|
|
|
$
|
(0.04
|
)
|
Diluted adjusted net income (loss) per common share
|
|
$
|
0.02
|
|
|
$
|
(0.01
|
)
|
|
|
$
|
0.02
|
|
|
$
|
(0.04
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Adjusted net income (loss) applicable to common stockholders and
adjusted net income (loss) per share are non-GAAP measures 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.
|
|
|
|
HECLA MINING COMPANY Reconciliation of Net Income (Loss)
(GAAP) to Adjusted EBITDA (dollars and ounces in thousands, except
per share amounts - unaudited)
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 income before the following items: interest expense,
income tax provision (benefit), depreciation, depletion, and
amortization expense, exploration expense, pre-development expense,
Aurizon acquisition costs, Lucky Friday suspension-related costs,
interest and other income (expense), gains and losses on derivative
contracts, provisional price gains and losses, provisions for closed
operations expense, stock-based compensation, and unrealized losses on
investments. 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
income (loss) to Adjusted EBITDA:
|
|
|
|
|
|
Dollars are in thousands
|
|
Three Months Ended
|
|
|
Twelve Months Ended
|
|
|
December 31,
|
|
December 31,
|
|
|
December 31,
|
|
December 31,
|
|
|
2014
|
|
2013
|
|
|
2014
|
|
2013
|
Net income (loss)
|
|
$
|
16,905
|
|
|
$
|
(2,908
|
)
|
|
|
$
|
17,824
|
|
|
$
|
(25,130
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Plus: Interest expense, net of amount capitalized
|
|
6,468
|
|
|
7,183
|
|
|
|
26,775
|
|
|
21,689
|
|
Plus/(Less): Income taxes
|
|
(4,178
|
)
|
|
(7,873
|
)
|
|
|
(5,240
|
)
|
|
(9,795
|
)
|
Plus: Depreciation, depletion and amortization
|
|
30,792
|
|
|
27,903
|
|
|
|
111,134
|
|
|
81,127
|
|
Plus: Exploration expense
|
|
4,612
|
|
|
4,991
|
|
|
|
17,698
|
|
|
23,502
|
|
Plus: Pre-development expense
|
|
722
|
|
|
1,401
|
|
|
|
1,969
|
|
|
14,148
|
|
Plus: Aurizon acquisition costs
|
|
—
|
|
|
29
|
|
|
|
—
|
|
|
26,397
|
|
Plus: Aurizon product inventory fair value adjustment
|
|
—
|
|
|
—
|
|
|
|
—
|
|
|
550
|
|
Plus/(Less): Lucky Friday suspension-related costs (income)
|
|
—
|
|
|
—
|
|
|
|
—
|
|
|
(1,401
|
)
|
Plus/(Less): Foreign exchange (gain) loss
|
|
(5,484
|
)
|
|
(4,043
|
)
|
|
|
(11,535
|
)
|
|
(2,959
|
)
|
Less: Gains on derivative contracts
|
|
(11,694
|
)
|
|
5,537
|
|
|
|
(9,134
|
)
|
|
(17,979
|
)
|
Plus/(Less): Provisional price (gains)/losses
|
|
213
|
|
|
900
|
|
|
|
2,277
|
|
|
16,955
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Plus: Provision for closed operations and environmental matters
|
|
6,569
|
|
|
87
|
|
|
|
10,215
|
|
|
1,788
|
|
Plus: Stock-based compensation
|
|
1,138
|
|
|
1,209
|
|
|
|
9,494
|
|
|
4,574
|
|
Plus: Unrealized losses on investments
|
|
474
|
|
|
2,639
|
|
|
|
3,224
|
|
|
2,639
|
|
Plus/(Less): Other
|
|
(78
|
)
|
|
165
|
|
|
|
(286
|
)
|
|
(859
|
)
|
Adjusted EBITDA
|
|
$
|
46,459
|
|
|
$
|
37,220
|
|
|
|
$
|
174,415
|
|
|
$
|
135,246
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reserves and Resources - 12/31/2014
|
|
Proven Reserves
|
|
|
|
|
Silver
|
|
Gold
|
|
Lead
|
|
Zinc
|
|
Silver
|
|
Gold
|
|
Lead
|
|
Zinc
|
Asset
|
|
Tons (000)
|
|
(oz/ton)
|
|
(oz/ton)
|
|
%
|
|
%
|
|
(000 oz)
|
|
(000 oz)
|
|
(Tons)
|
|
(Tons)
|
Greens Creek (a)
|
|
4.7
|
|
15.7
|
|
0.10
|
|
3.7
|
|
9.2
|
|
74
|
|
0.5
|
|
180
|
|
440
|
Lucky Friday (a)
|
|
3,840
|
|
13.7
|
|
-
|
|
8.3
|
|
2.6
|
|
52,556
|
|
-
|
|
318,610
|
|
98,230
|
Casa Berardi (1)
|
|
1,606
|
|
-
|
|
0.15
|
|
-
|
|
-
|
|
-
|
|
237
|
|
-
|
|
-
|
Total
|
|
5,450
|
|
|
|
|
|
|
|
|
|
52,630
|
|
238
|
|
318,790
|
|
98,670
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Probable Reserves
|
|
|
|
|
Silver
|
|
Gold
|
|
Lead
|
|
Zinc
|
|
Silver
|
|
Gold
|
|
Lead
|
|
Zinc
|
Asset
|
|
Tons (000)
|
|
(oz/ton)
|
|
(oz/ton)
|
|
%
|
|
%
|
|
(000 oz)
|
|
(000 oz)
|
|
(Tons)
|
|
(Tons)
|
Greens Creek (a)
|
|
7,691
|
|
12.2
|
|
0.10
|
|
3.1
|
|
8.3
|
|
93,947
|
|
738
|
|
240,670
|
|
639,490
|
Lucky Friday (a)
|
|
2,043
|
|
12.9
|
|
-
|
|
7.4
|
|
2.2
|
|
26,346
|
|
-
|
|
151,590
|
|
44,910
|
Casa Berardi (1)
|
|
7,806
|
|
-
|
|
0.14
|
|
-
|
|
-
|
|
-
|
|
1,100
|
|
-
|
|
-
|
Total
|
|
17,540
|
|
|
|
|
|
|
|
|
|
120,293
|
|
1,838
|
|
392,260
|
|
684,400
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proven and Probable Reserves
|
|
|
|
|
Silver
|
|
Gold
|
|
Lead
|
|
Zinc
|
|
Silver
|
|
Gold
|
|
Lead
|
|
Zinc
|
Asset
|
|
Tons (000)
|
|
(oz/ton)
|
|
(oz/ton)
|
|
%
|
|
%
|
|
(000 oz)
|
|
(000 oz)
|
|
(Tons)
|
|
(Tons)
|
Greens Creek
|
|
7,696
|
|
12.2
|
|
0.10
|
|
3.1
|
|
8.3
|
|
94,021
|
|
739
|
|
240,850
|
|
639,930
|
Lucky Friday
|
|
5,883
|
|
13.4
|
|
-
|
|
8.0
|
|
2.4
|
|
78,902
|
|
-
|
|
470,200
|
|
143,140
|
Casa Berardi
|
|
9,412
|
|
-
|
|
0.14
|
|
-
|
|
-
|
|
-
|
|
1,337
|
|
-
|
|
-
|
Total
|
|
22,990
|
|
|
|
|
|
|
|
|
|
172,923
|
|
2,076
|
|
711,050
|
|
783,070
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Measured Resources
|
|
|
|
|
Silver
|
|
Gold
|
|
Lead
|
|
Zinc
|
|
Silver
|
|
Gold
|
|
Lead
|
|
Zinc
|
Asset
|
|
Tons (000)
|
|
(oz/ton)
|
|
(oz/ton)
|
|
%
|
|
%
|
|
(000 oz)
|
|
(000 oz)
|
|
(Tons)
|
|
(Tons)
|
Greens Creek (b)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
Lucky Friday (2)(b)
|
|
14,433
|
|
5.7
|
|
-
|
|
3.9
|
|
2.2
|
|
81,716
|
|
-
|
|
555,960
|
|
316,560
|
Casa Berardi (3)
|
|
1,838
|
|
-
|
|
0.18
|
|
-
|
|
-
|
|
-
|
|
330
|
|
-
|
|
-
|
Heva (4)
|
|
5,480
|
|
-
|
|
0.06
|
|
-
|
|
-
|
|
-
|
|
304
|
|
-
|
|
-
|
Hosco (4)
|
|
33,070
|
|
-
|
|
0.04
|
|
-
|
|
-
|
|
-
|
|
1,296
|
|
-
|
|
-
|
San Sebastian (5)(b)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
Rio Grande Silver (6)(b)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
Star (7)(a)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
Total
|
|
54,821
|
|
|
|
|
|
|
|
|
|
81,716
|
|
1,930
|
|
555,960
|
|
316,560
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Indicated Resources
|
|
|
|
|
Silver
|
|
Gold
|
|
Lead
|
|
Zinc
|
|
Silver
|
|
Gold
|
|
Lead
|
|
Zinc
|
Asset
|
|
Tons (000)
|
|
(oz/ton)
|
|
(oz/ton)
|
|
%
|
|
%
|
|
(000 oz)
|
|
(000 oz)
|
|
(Tons)
|
|
(Tons)
|
Greens Creek (b)
|
|
823
|
|
11.0
|
|
0.12
|
|
3.5
|
|
8.0
|
|
9,062
|
|
102
|
|
28,720
|
|
66,170
|
Lucky Friday (2)(b)
|
|
7,674
|
|
5.6
|
|
-
|
|
3.9
|
|
2.1
|
|
43,307
|
|
-
|
|
299,560
|
|
163,250
|
Casa Berardi (3)
|
|
9,552
|
|
-
|
|
0.11
|
|
-
|
|
-
|
|
-
|
|
1,016
|
|
-
|
|
-
|
Heva (4)
|
|
5,570
|
|
-
|
|
0.07
|
|
-
|
|
-
|
|
-
|
|
369
|
|
-
|
|
-
|
Hosco (4)
|
|
31,620
|
|
-
|
|
0.04
|
|
-
|
|
-
|
|
-
|
|
1,151
|
|
-
|
|
-
|
San Sebastian (5)(b)
|
|
2,417
|
|
8.2
|
|
0.07
|
|
-
|
|
-
|
|
19,838
|
|
171
|
|
14,570
|
|
18,980
|
Rio Grande Silver (6)
|
|
516
|
|
14.8
|
|
-
|
|
2.1
|
|
1.1
|
|
7,620
|
|
-
|
|
10,760
|
|
5,820
|
Star (7)(b)
|
|
1,074
|
|
3.0
|
|
-
|
|
6.4
|
|
7.6
|
|
3,221
|
|
-
|
|
68,700
|
|
81,200
|
Total
|
|
59,246
|
|
|
|
|
|
|
|
|
|
83,048
|
|
2,808
|
|
422,310
|
|
335,420
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Measured & Indicated Resources
|
|
|
|
|
Silver
|
|
Gold
|
|
Lead
|
|
Zinc
|
|
Silver
|
|
Gold
|
|
Lead
|
|
Zinc
|
Asset
|
|
Tons (000)
|
|
(oz/ton)
|
|
(oz/ton)
|
|
%
|
|
%
|
|
(000 oz)
|
|
(000 oz)
|
|
(Tons)
|
|
(Tons)
|
Greens Creek (b)
|
|
823
|
|
11.0
|
|
0.12
|
|
3.5
|
|
8.0
|
|
9,062
|
|
102
|
|
28,720
|
|
66,170
|
Lucky Friday (2)(b)
|
|
22,107
|
|
5.7
|
|
-
|
|
3.9
|
|
2.2
|
|
125,023
|
|
-
|
|
855,520
|
|
479,810
|
Casa Berardi (3)
|
|
11,391
|
|
-
|
|
0.12
|
|
-
|
|
-
|
|
-
|
|
1,346
|
|
-
|
|
-
|
Heva (4)
|
|
11,050
|
|
-
|
|
0.06
|
|
-
|
|
-
|
|
-
|
|
672
|
|
-
|
|
-
|
Hosco (4)
|
|
64,690
|
|
-
|
|
0.04
|
|
-
|
|
-
|
|
-
|
|
2,447
|
|
-
|
|
-
|
San Sebastian (5)(b)
|
|
2,417
|
|
8.2
|
|
0.07
|
|
-
|
|
-
|
|
19,838
|
|
171
|
|
14,570
|
|
18,980
|
Rio Grande Silver (6)
|
|
516
|
|
14.8
|
|
-
|
|
2.1
|
|
1.1
|
|
7,620
|
|
-
|
|
10,760
|
|
5,820
|
Star (7)(b)
|
|
1,074
|
|
3.0
|
|
-
|
|
6.4
|
|
7.6
|
|
3,221
|
|
-
|
|
68,700
|
|
81,200
|
Total
|
|
114,067
|
|
|
|
|
|
|
|
|
|
164,764
|
|
4,738
|
|
978,270
|
|
651,980
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inferred Resources
|
|
|
|
|
Silver
|
|
Gold
|
|
Lead
|
|
Zinc
|
|
Silver
|
|
Gold
|
|
Lead
|
|
Zinc
|
Asset
|
|
Tons (000)
|
|
(oz/ton)
|
|
(oz/ton)
|
|
%
|
|
%
|
|
(000 oz)
|
|
(000 oz)
|
|
(Tons)
|
|
(Tons)
|
Greens Creek (b)
|
|
3,452
|
|
13.6
|
|
0.09
|
|
2.8
|
|
6.6
|
|
46,881
|
|
315
|
|
97,180
|
|
229,240
|
Lucky Friday (8)(b)
|
|
5,359
|
|
7.7
|
|
-
|
|
5.4
|
|
1.8
|
|
41,152
|
|
-
|
|
289,420
|
|
98,890
|
Casa Berardi (3)
|
|
3,710
|
|
-
|
|
0.16
|
|
-
|
|
-
|
|
-
|
|
604
|
|
-
|
|
-
|
Heva (4)
|
|
4,210
|
|
-
|
|
0.08
|
|
-
|
|
-
|
|
-
|
|
350
|
|
-
|
|
-
|
Hosco (4)
|
|
7,650
|
|
-
|
|
0.04
|
|
-
|
|
-
|
|
-
|
|
314
|
|
-
|
|
-
|
San Sebastian (9) (b)
|
|
3,721
|
|
4.2
|
|
0.03
|
|
-
|
|
-
|
|
15,744
|
|
129
|
|
22,550
|
|
32,070
|
Rio Grande Silver (10)
|
|
3,078
|
|
10.7
|
|
0.01
|
|
1.3
|
|
1.1
|
|
33,097
|
|
36
|
|
40,990
|
|
34,980
|
Star (11)(b)
|
|
2,957
|
|
3.1
|
|
-
|
|
5.9
|
|
5.6
|
|
9,128
|
|
-
|
|
173,500
|
|
166,100
|
Monte Cristo (12)
|
|
913
|
|
0.3
|
|
0.14
|
|
-
|
|
-
|
|
271
|
|
131
|
|
-
|
|
-
|
Total
|
|
35,051
|
|
|
|
|
|
|
|
|
|
146,273
|
|
1,879
|
|
623,640
|
|
561,280
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: All estimates are in-situ except for the proven reserve at
Greens Creek which is in a surface stockpile. Resources are
exclusive of reserves.
|
|
(a) Mineral reserves are based on $1,225 gold, $17.25
silver, $0.95 lead, and $0.90 zinc, unless otherwise stated.
|
(b) Mineral resources are based on $1,300 gold, $20
silver, $0.95 lead, $0.90 zinc and $3.00 copper, unless otherwise
stated.
|
(1) Mineral reserves are based on $1,225 gold and a
US$/CAN$ exchange rate of 1:1.1 Reserve diluted to an average of
23.7% to minimum width of 3 meters.
|
Open pit mineral reserves of the East Mine were estimated in August
2013 based on $1,300 gold and a US$/CAN$ exchange rate of 1:1.
Reserve diluted to 20%.
|
Open pit mineral reserves of the Principal Mine were estimated in
February 2011 based on $950 gold and a US$/CAN$ exchange rate of
1:1. Reserve diluted to 10%.
|
(2) Measured and indicated resources from Gold Hunter
and Lucky Friday vein systems are diluted and factored for
expected mining recovery.
|
(3) Measured, indicated and inferred resources are
based on $1,300 gold and a US$/CAN$ exchange rate of 1:1.1.
Underground resources are reported at a minimum mining width of 2
to 3 meters.
|
Open pit mineral resources of the Principal Mine were estimated
based on $950 gold and a US$/CAN$ exchange rate of 1:1.
|
Open pit mineral resources of the 160 Zone were based on $1,250
gold and a US$/CAN$ exchange rate of 1:1. Resources diluted to 12%.
|
(4) Measured, indicated and inferred resources are
based on $1,300 gold and a US$/CAN$ exchange rate of 1:1. The
resources are in-situ without dilution and material loss. Resource
model completed in 2011.
|
(5) Indicated resources reported at a minimum mining
width of 2.0 meters for Hugh Zone and 1.5 meters for Andrea Vein,
Middle Vein, and North Vein. East Francine resources reported at
actual vein width.
|
San Sebastian Hugh Zone also contains 8,400 tons of copper at 1.7%
Cu within 492,700 tons of indicated resource.
|
(6) Indicated resources reported at a minimum mining
width of 6.0 feet for Bulldog; resources based on $26.5 Ag, $0.85
Pb, and $0.85 Zn.
|
(7) Indicated resources reported at a minimum mining
width of 4.3 feet.
|
(8) Inferred resources from Gold Hunter and Lucky
Friday vein systems are diluted and factored for expected mining
recovery.
|
(9) Inferred resources reported at a minimum mining width
of 2.0 meters for Hugh Zone and 1.5 meters for Andrea Vein, Middle
Vein, and North Vein. East Francine resources reported at actual
vein width.
|
San Sebastian Hugh Zone also contains 18,860 tons of copper at 1.5%
within 1,255,100 tons of inferred resource.
|
(10) Inferred resources reported at a minimum mining
width of 6.0 feet for Bulldog, 5.0 feet for Equity & North
Amethyst veins; resources based on $1,400 Au, $26.5 Ag, $0.85 Pb,
and $0.85 Zn.
|
(11) Inferred resources reported at a minimum mining
width of 4.3 feet.
|
(12) Inferred resource reported at a minimum mining width
of 5.0 feet; resources based on $1,400 Au, $26.5 Ag.
|
|
* Totals may not represent the sum of parts due to rounding.
|
|
|