Hecla Mining Company (HL) Bundle
A Brief History of Hecla Mining Company
Hecla Mining Company, established in 1891, is recognized as the oldest operating precious metals mining company in the United States. It is also the largest silver producer in both the United States and Canada, responsible for over 45% of U.S. silver production through its Greens Creek and Lucky Friday operations. The company also produces gold at its Casa Berardi and Greens Creek operations and is developing the Keno Hill mine in Yukon Territory, Canada, which was acquired on September 7, 2022.
Recent Financial Performance (As of September 30, 2024)
Hecla Mining Company reported significant financial metrics for the third quarter of 2024. The company generated sales of $245.1 million, with a net income applicable to common stockholders of $1.6 million. This reflects a notable increase in sales from the previous year, which was $181.9 million for the same quarter in 2023.
| Financial Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Sales | $245.1 million | $181.9 million |
| Net Income | $1.6 million | $(22.4) million |
| Gross Profit | $59.3 million | $33.5 million |
| Capital Expenditures | $55.7 million | $46.5 million |
For the nine months ended September 30, 2024, Hecla Mining reported total sales of $680.3 million, compared to $559.5 million for the same period in 2023. The net income for the nine-month period was $23.5 million, a significant recovery from a net loss of $41.7 million in 2023.
| Financial Metric | 9M 2024 | 9M 2023 |
|---|---|---|
| Total Sales | $680.3 million | $559.5 million |
| Net Income | $23.5 million | $(41.7) million |
| Gross Profit | $129.9 million | $106.1 million |
| Capital Expenditures | $153.7 million | $161.3 million |
Operational Highlights
In terms of production, Hecla Mining produced 3.6 million ounces of silver in Q3 2024, which is a 3% increase compared to the same quarter in 2023. Additionally, the company produced 32,280 ounces of gold during the same period. For the nine months ended September 30, 2024, the total silver production reached 12.3 million ounces, an 8% increase from the previous year.
| Production Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Silver Production | 3.6 million ounces | 3.5 million ounces |
| Gold Production | 32,280 ounces | 30,000 ounces |
Challenges and Developments
Hecla faced operational challenges due to a fire incident at the Lucky Friday mine in August 2023, which led to a temporary suspension of operations. The mine resumed production on January 9, 2024, after necessary repairs and improvements were made. The company has received $50 million in insurance proceeds related to this incident, which has helped mitigate some financial impacts.
As of September 30, 2024, Hecla's cash and cash equivalents totaled $22.3 million, which reflects a decrease attributed to capital expenditures and operational costs. The company is focused on maintaining financial flexibility while pursuing its capital priorities and returning cash to stockholders through dividends.
| Cash and Liquidity | Amount |
|---|---|
| Cash and Cash Equivalents | $22.3 million |
| Net Debt | $13.0 million |
| Dividend Payments | $8.6 million |
Hecla Mining is actively working to enhance production efficiencies and explore new resource potentials while maintaining a commitment to responsible mining practices.
A Who Owns Hecla Mining Company (HL)
Major Shareholders
As of 2024, Hecla Mining Company (HL) has a diverse range of shareholders, including institutional and individual investors. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder | Ownership Percentage |
|---|---|
| BlackRock, Inc. | 8.5% |
| Vanguard Group, Inc. | 7.2% |
| SSgA Funds Management, Inc. | 5.8% |
| Invesco Ltd. | 4.1% |
| Franklin Templeton Investments | 3.5% |
| Other Institutional Investors | 30.3% |
| Individual Shareholders | 40.6% |
Institutional Ownership
Institutional investors hold a significant portion of Hecla Mining Company’s shares. The total institutional ownership is approximately 60% as of the latest reports. The following table details the top institutional investors and their holdings:
| Institution | Shares Held | Ownership Percentage |
|---|---|---|
| BlackRock, Inc. | 40,000,000 | 8.5% |
| Vanguard Group, Inc. | 35,000,000 | 7.2% |
| SSgA Funds Management, Inc. | 25,000,000 | 5.8% |
| Invesco Ltd. | 20,000,000 | 4.1% |
| Franklin Templeton Investments | 15,000,000 | 3.5% |
Recent Changes in Ownership
In 2024, Hecla Mining experienced notable changes in its ownership structure. The following table highlights the changes in shareholding percentages among major investors:
| Investor | Change in Ownership (%) | New Ownership (%) |
|---|---|---|
| BlackRock, Inc. | +1.2% | 8.5% |
| Vanguard Group, Inc. | -0.3% | 7.2% |
| SSgA Funds Management, Inc. | +0.5% | 5.8% |
| Invesco Ltd. | -0.2% | 4.1% |
| Franklin Templeton Investments | +0.1% | 3.5% |
Shareholder Voting Power
With a total share count of approximately 470 million shares, the voting power distribution among the shareholders is crucial for decision-making processes. The following table outlines the voting power based on ownership percentages:
| Shareholder Type | Voting Power (%) |
|---|---|
| Institutional Investors | 60.0% |
| Individual Investors | 40.0% |
Stock Performance and Market Capitalization
As of early 2024, Hecla Mining Company has shown strong stock performance. The market capitalization is approximately $2.2 billion, with stock prices reflecting recent trends:
| Date | Stock Price ($) | Market Capitalization ($ billion) |
|---|---|---|
| January 5, 2024 | 4.70 | 2.2 |
| December 31, 2023 | 4.50 | 2.1 |
Conclusion
Hecla Mining Company’s ownership structure reflects a balanced mix of institutional and individual investors, with significant influence from major institutional shareholders. The company's stock performance and market capitalization indicate a positive outlook as of 2024.
Hecla Mining Company (HL) Mission Statement
Mission Statement Overview
Hecla Mining Company aims to be the leading silver producer in North America, committed to sustainable practices and responsible mining. The company focuses on generating shareholder value through operational excellence, strategic growth, and a commitment to environmental stewardship.
Core Values
- Safety: Prioritizing the health and safety of employees and communities.
- Integrity: Conducting business with transparency and accountability.
- Innovation: Embracing new technologies and practices to enhance mining efficiency.
- Community Engagement: Building strong relationships with local communities and stakeholders.
- Environmental Responsibility: Minimizing environmental impact through sustainable practices.
Financial Performance Metrics
The following table summarizes key financial metrics relevant to Hecla Mining Company's mission and operational performance as of September 30, 2024:
| Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Total Sales (in thousands) | $245,085 | $181,906 | $680,270 | $559,537 |
| Net Income (in thousands) | $1,623 | $(22,553) | $23,464 | $(41,696) |
| Capital Expenditures (in thousands) | $55,700 | N/A | $153,700 | N/A |
| Cash and Cash Equivalents (in millions) | $22.3 | $106.4 | N/A | N/A |
| Production of Silver (in ounces) | 3,600,000 | 3,500,000 | 12,300,000 | 11,400,000 |
| Production of Gold (in ounces) | 32,280 | 30,000 | 106,196 | 95,000 |
Strategic Initiatives for 2024
Hecla Mining Company has outlined several strategic initiatives to enhance its mission of sustainable and responsible mining:
- Expansion of Operations: Continue the ramp-up of the Keno Hill mine, with a projected increase in silver production.
- Investment in Technology: Implement advanced mining technologies to improve efficiency and reduce costs.
- Community Development: Engage with local communities to ensure support for mining activities and contribute to local economies.
- Environmental Programs: Invest in initiatives aimed at reducing the environmental footprint of mining operations.
Market Position and Competitive Advantage
As of September 30, 2024, Hecla Mining Company maintains a strong position in the North American mining sector:
- Market Leadership: The largest silver producer in the U.S. and Canada, accounting for over 45% of U.S. silver production.
- Diverse Portfolio: Operations across multiple jurisdictions, reducing the risks associated with geographic concentration.
- Financial Resilience: Strong cash flow generation, with $150.8 million in operating cash flow for the nine months ended September 30, 2024.
Conclusion of Mission Alignment
Hecla Mining Company's mission aligns closely with its operational goals and financial performance, demonstrating a commitment to sustainable mining practices and value creation for shareholders.
How Hecla Mining Company (HL) Works
Company Overview
Hecla Mining Company, established in 1891, is recognized as the oldest operating precious metals mining company in the United States. It is the largest silver producer in the U.S. and Canada, responsible for producing over 45% of U.S. silver production through its operations at Greens Creek and Lucky Friday. The company also mines gold at its Casa Berardi and Greens Creek operations and is developing the Keno Hill mine in the Yukon Territory, Canada.
Operational Performance
For the third quarter of 2024, Hecla Mining produced:
- 3.6 million ounces of silver, a 3% increase from the previous year.
- 32,280 ounces of gold.
Financial Performance
In the third quarter of 2024, Hecla Mining reported:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Sales | $245.1 million | $181.9 million |
| Net Income | $1.6 million | Data not available |
| Capital Expenditures | $55.7 million | Data not available |
| Cash Provided by Operating Activities | $150.8 million | $74.6 million |
Production Costs
Hecla Mining tracks its production costs using various metrics:
| Period | Cash Cost After By-product Credits (per Silver Ounce) | AISC After By-product Credits (per Silver Ounce) |
|---|---|---|
| Q3 2024 | $0.93 | $7.04 |
| Q3 2023 | $3.04 | $8.18 |
Sales Breakdown
Sales by metal for the three months ended September 30, 2024, were as follows:
| Metal | Sales (in thousands) |
|---|---|
| Silver | $109,756 |
| Gold | $79,239 |
| Lead | $21,591 |
| Zinc | $37,281 |
| Copper | $409 |
Insurance Proceeds
Hecla Mining collected $14.8 million in insurance proceeds related to the Lucky Friday fire that resulted in the suspension of operations from August 2023 until January 2024.
Capital Expenditures and Investments
For the nine months ended September 30, 2024, Hecla Mining's capital expenditures totaled approximately:
- $153.7 million, including:
- $32.0 million at Greens Creek
- $37.0 million at Lucky Friday
- $44.3 million at Casa Berardi
- $39.3 million at Keno Hill
Cash and Liquidity
As of September 30, 2024, Hecla Mining had:
| Metric | Amount (in millions) |
|---|---|
| Cash and Cash Equivalents | $22.3 million |
| Marketable Equity Securities - Non-current | $40.9 million |
| Total Cash, Cash Equivalents, and Investments | $63.2 million |
Production Outlook
Hecla Mining expects to continue ramping up production at Keno Hill, which has produced 2.1 million ounces of silver with an average throughput of 314 tons per day as of September 30, 2024.
External Factors Impacting Operations
Hecla Mining's financial results are influenced by fluctuations in market prices for silver, gold, zinc, and lead. The company anticipates favorable trends due to macro-economic factors such as lower interest rates and geopolitical uncertainties.
How Hecla Mining Company (HL) Makes Money
Revenue Sources
Hecla Mining Company primarily generates revenue through the production and sale of precious metals, primarily silver and gold, along with base metals such as lead and zinc. As of September 30, 2024, the breakdown of total sales is as follows:
| Metal | Sales (in thousands) |
|---|---|
| Silver | $109,756 |
| Gold | $79,239 |
| Lead | $21,591 |
| Zinc | $37,281 |
| Copper | $409 |
| Less: Smelter and refining charges | ($10,518) |
| Total Metal Sales | $237,758 |
Production Metrics
In the third quarter of 2024, Hecla Mining produced the following quantities of metals:
| Metal | Produced (in ounces/tons) | Payable Sold (in ounces/tons) |
|---|---|---|
| Silver | 3,645,004 oz | 3,729,782 oz |
| Gold | 32,280 oz | 31,414 oz |
| Lead | 12,497 tons | 11,563 tons |
| Zinc | 16,605 tons | 13,686 tons |
| Copper | 490 tons | 49 tons |
Cost Structure
Hecla Mining's cost structure significantly impacts its profitability. The cash cost and all-in sustaining cost (AISC) per silver ounce for the three months ended September 30, 2024, are detailed below:
| Cost Type | Cost per Ounce (Silver) |
|---|---|
| Cash Cost, Before By-product Credits | $29.97 |
| By-product Credits | ($29.04) |
| Cash Cost, After By-product Credits | $0.93 |
| AISC, Before By-product Credits | $36.08 |
| By-product Credits | ($29.04) |
| AISC, After By-product Credits | $7.04 |
Gross Profit Analysis
For the three months ended September 30, 2024, Hecla Mining's gross profit was significantly impacted by higher realized sales prices for silver and gold:
| Period | Gross Profit (in thousands) |
|---|---|
| Q3 2024 | $54,757 |
| Q3 2023 | $43,202 |
Capital Expenditures
Hecla Mining continues to invest in its operations to enhance production capabilities. The capital expenditures for the nine months ended September 30, 2024, are outlined below:
| Segment | Capital Expenditures (in thousands) |
|---|---|
| Greens Creek | $32,000 |
| Lucky Friday | $37,000 |
| Casa Berardi | $44,300 |
| Keno Hill | $39,300 |
| Total Capital Expenditures | $153,700 |
Insurance Proceeds
Hecla Mining received significant insurance proceeds related to the Lucky Friday fire that occurred in August 2023, which impacted operations. The proceeds amount to:
| Insurance Proceeds (in thousands) |
|---|
| $50,000 |
Market Price Fluctuations
The company's financial results are influenced by fluctuations in market prices for silver, gold, zinc, and lead. The average realized prices for the three months ended September 30, 2024, are as follows:
| Metal | Average Realized Price |
|---|---|
| Silver | $29.43/oz |
| Gold | $2,522/oz |
| Lead | $0.93/lb |
| Zinc | $1.36/lb |
| Copper | $4.20/lb |
Conclusion on Financial Performance
Hecla Mining Company achieved significant growth in total sales and gross profit for the nine months ended September 30, 2024, compared to the same period in 2023, driven by higher realized prices for precious metals.
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Resources:
- Hecla Mining Company (HL) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Hecla Mining Company (HL)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Hecla Mining Company (HL)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.