COEUR D'ALENE, Idaho--(BUSINESS WIRE)-- Hecla Mining Company (NYSE:HL) today announced second quarter 2020 financial and operating results.

HIGHLIGHTS
• All mines in operation (non-U.S. mines had government-mandated shutdowns of less than a month).
• Sales of $166.4 million, an increase of 24% over prior year period.
• Gross profit of $34.1 million, an increase of $54.3 million over prior year period.
• Cash provided by operating activities was $37.5 million while there were $10.8 million additions to properties, plant, equipment and mineral interests, resulting in $26.7 million of quarterly free cash flow.
• Silver production of 3.4 million ounces and gold production of 59,982 ounces.
• Net loss applicable to common shareholders of $14.2 million, or $0.03 per share.
• Adjusted net income applicable to common shareholders of $7.3 million, or $0.01 per share.1
• Adjusted EBITDA of $61.3 million and net debt/adjusted EBITDA (last 12 months) of 2.0x. 2,3
• Strong balance sheet with cash and cash equivalents of $76 million, repaid $160 million of revolving line of credit, leaving $50 million outstanding; expect full repayment by year end.
• In the third quarter, agreed with Investissement Quebec to issue C$50 million (US$36.8 million) of senior unsecured notes yielding 5.74%; expected use of proceeds for purchases of existing 7.25% coupon bonds, and Casa Berardi capital expenditures.
• Annual silver and gold production and cost guidance is unchanged.

"Despite the pandemic, Hecla had its second highest quarterly silver production since 2016 which, combined with higher prices, resulted in almost 25% more revenue than a year ago and generated about $27 million of free cash flow," said Phillips S. Baker, Jr., Hecla's President and CEO. "I am extremely proud of our workforce's adaptability and commitment in this challenging time which positions Hecla well to improve our cash flow generation in this higher silver and gold price environment."

Mr. Baker continued, "Hecla currently produces about a third of all the silver mined in the U.S., almost three times larger than the next primary producer. That number is expected to grow as Lucky Friday ramps up. As the United States' largest and oldest silver producer with America's largest silver reserve and resource, Hecla gives investors unique exposure to higher silver prices."


FINANCIAL OVERVIEW
Second Quarter Ended Six Months Ended

HIGHLIGHTS
June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019
FINANCIAL DATA
Sales (000) $ 166,355 $ 134,172 $ 303,280 $ 286,789
Gross profit (loss) (000) $ 34,079 $ (20,243) $ 45,451 $ (16,799)
Loss applicable to common shareholders (000) $ (14,166) $ (46,670) $ (31,489)
$ (72,341)
Basic and diluted loss per common share $ (0.03) $ (0.10) $ (0.06) $ (0.15)
Net Loss (000) $ (14,028) $ (46,532) $ (31,213) $ (72,065)
Cash provided by (used in) operating activities (000) $ 37,526 $ (11,317)
$ 42,453 $ 8,713

Net loss applicable to common shareholders for the second quarter 2020 was $14.2 million, or $0.03 per share, compared to net loss applicable to common shareholders of $46.7 million, or $0.10 per share, for the same period in 2019. The improved second quarter result was mainly due to the following items:
• Improved gross profit at each operation due to higher production and prices. Combined Greens Creek, Casa Berardi and Nevada operations generated $53.3 million more gross profit than the prior year period.
• Unrealized gains on equity investments of $6.4 million compared to losses of $1.1 million in the prior-year period.
• Lower exploration costs by $2.4 million compared to the second quarter of 2019, as the Company reduced discretionary spending during the pandemic.
• Lower general and administrative
see & read more on
https://ir.hecla-mining.com/news-events/current-news/news-details/2020/Hecla-Reports-24-Higher-Revenues-on-Higher-Production-and-Prices-in-Second-Quarter-2020/default.aspx