On November 6, 2024, Hecla Mining Co (HL, Financial) released its 8-K filing detailing the financial results for the third quarter of 2024. The company, a prominent producer and explorer of silver, gold, zinc, and other metals, operates through segments such as Greens Creek, Lucky Friday, Keno Hill, Casa Berardi, and Nevada Operations. Hecla generates the majority of its revenue from the Greens Creek segment, with significant operations in the United States, Canada, and Mexico.
Performance Overview
Hecla Mining Co reported sales of $245.1 million for the third quarter, slightly surpassing the analyst estimate of $229.40 million. However, the company's earnings per share (EPS) of $0.00 fell short of the estimated $0.03. The quarter was marked by operational challenges, including unplanned maintenance at the Greens Creek mill, which impacted silver production. Despite these hurdles, Hecla managed to produce 3.6 million ounces of silver, bringing the year-to-date total to 12.3 million ounces.
Financial Achievements and Challenges
The company achieved a gross profit of $59.3 million, a 15% increase from the previous quarter, driven by lower cost of sales at Keno Hill and Casa Berardi. However, net income applicable to common stockholders decreased to $1.6 million from $27.7 million in the prior quarter, primarily due to lower sales volumes and realized prices for silver, zinc, and lead.
Hecla produced 3.6 million ounces of silver in the third quarter, bringing year-to-date production to 12.3 million ounces. Lucky Friday had a strong quarter as the mill achieved the second-highest throughput in its 80-year history after a record last quarter," said Cassie Boggs, Interim President and CEO.
Key Financial Metrics
| Metric | Q3 2024 | Q2 2024 |
|---|---|---|
| Sales | $245.1 million | $245.7 million |
| Gross Profit | $59.3 million | $51.4 million |
| Net Income | $1.6 million | $27.7 million |
| Adjusted EBITDA | $88.9 million | $90.9 million |
Operational Insights
Hecla's operational segments faced varied challenges. The Greens Creek segment experienced a decrease in silver production due to unplanned maintenance, while Lucky Friday maintained strong performance with high mill throughput. Keno Hill's production was impacted by delays in permitting and construction, affecting mill throughput. Casa Berardi saw a decline in gold production due to lower underground grades.
Analysis and Outlook
Hecla Mining Co's financial performance in Q3 2024 reflects both resilience and challenges. The company's ability to maintain revenue levels despite operational setbacks is noteworthy. However, the decline in net income and EPS highlights the impact of lower production and sales volumes. The company's focus on deleveraging and strategic investments in infrastructure and safety improvements positions it for potential future growth. As Hecla welcomes its new CEO, Rob Krcmarov, the company's strategic direction and operational efficiency will be crucial in navigating the evolving market dynamics in the metals and mining industry.
Explore the complete 8-K earnings release (here) from Hecla Mining Co for further details.
