Hecla Mining Co., of Coeur d'Alene, reported today first-quarter net income of $11 million, or 4 cents a diluted share, down from income of $12.4 million, or 4 cents a share, in the year-earlier period.
Phillips S. Baker Jr., Hecla's president and CEO, said in a press release, "There has been significant weakness in precious metals prices this spring, which we are watching closely, but I am pleased to note the increase in demand for the physical metal, particularly in the Middle East and in Asia, that has emerged as a result of these lower prices."
Hecla started mining at Lucky Friday again during the quarter after being shut down for a year to make safety improvements, and the company expects to produce more than 2 million ounces of silver this year and 3 million ounces in 2014.
In addition, shareholders of Vancouver, British Columbia-based Aurizon Mines Ltd. voted May 9 in favor of Hecla's acquisition of the company, valued at $796 million.
Baker said the Aurizon transaction gives the company strong gold production from Canada as it maintains the largest primary silver production in the U.S. He said the company's gold and two silver mines are located in mine-friendly jurisdictions, and each has more than 10 years of mine life.
"We expect to have low-cost silver and gold production, reserve growth, and strong cash flows for many years to come," he said.