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Home » Hecla posts smaller loss

Hecla posts smaller loss

Gold, silver production rose in second quarter

July 31, 2014
Staff Report

Hecla Mining Co., of Coeur d’Alene, reported this morning a second-quarter net loss of $14.5 million, or 4 cents a diluted share, compared with a loss of $24.9 million, or 8 cents a share, in the year-earlier quarter.

Hecla said in a press release it increased its silver production by 12 percent, to 2.5 million ounces, due to its Lucky Friday silver mine, in Mullan, Idaho, returning to full production. Also, the company said its gold production rose 96 percent, to 43,554 ounces, as a result of its acquisition of the Casa Berardi gold mine in Quebec last year.

Phillips S. Baker Jr., Hecla’s president and CEO, said in a press release, “In the second quarter, our stronger revenue and cash flow from operations were driven by production growth, particularly gold, and higher realized metal prices, especially zinc.”

The company, however, lost $11.6 million on base metals derivative contracts as a result of rising base metals prices, after a net gain of $6.5 million on those contracts in the year-earlier period. Hecla also said ownership of Canadian assets resulted in a $5.4 million foreign-exchange loss.

 

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