Published on 14 Nov 2022 on Zacks via Yahoo Finance
Hecla Mining HL reported a third-quarter 2022 adjusted loss per share of 2 cents compared with the Zacks Consensus Estimate of a loss of 4 cents per share. Earnings were impacted by lower realized prices for all metals, higher costs and lower revenue from the deferral of silver concentrate shipments from Greens Creek and Lucky Friday to fourth-quarter 2022.Including one-time items, HL reported a loss of 4 cents per share against break-even earnings in the prior-year quarter.The company’s revenues plunged 24% year over year to $146 million in the quarter under review. The top-line figure lagged the Zacks Consensus Estimate of $167 million.HL had deferred approximately 1 million ounces of silver, 1,800 ounces of gold, and 1,300 tons of lead in the silver concentrate shipments at Greens Creek to ensure adequate volumes of concentrate for cost-effective shipping. At Lucky Friday the deferral was due to a planned multi-week shutdown of the Trail smelter for maintenance. This along with lower realized metal prices impacted revenues in the quarter.Gold prices were 4.4% down year over year to $1,713 an ounce. The realized silver price was $18.30 per ounce in the quarter, plunging 24% from $23.97 in the last year’s quarter. Realized prices for lead and zinc were lower by 7% and 9% respectively.The total cost of sales declined 13% year on year to $138 million in the quarter. Gross profit plummeted 76% to $8.4 million on lower revenues and higher per-unit costs. The gross margin in the third quarter of 2022 was 5.8%, a 1240 basis point contraction from the year-ago quarter.The company reported an increase in exploration and pre-development expenses owing to increased exploration and drilling activity across its mines and projects during the exploration season. Adjusted EBITDA was $26.6 million, down from $49.4 million in the third quarter of 2021.The company reported cash costs per silver equivalent ounce and all-in sustaining costs (AISC) per silver ounce of $14.20 in the quarter, marking an 11% increase year over year. This was due to lower by-product credits attributable to lower lead and zinc production as well as lower prices.
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