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HECLA REPORTS SECOND QUARTER AND FIRST HALF RESULTS

 COEUR D'ALENE, Idaho, Aug. 6 /PRNewswire/ -- Hecla Mining Co. (NYSE: HL & HL-B) today reported a loss of $2 million, or 6 cents a share, in the second quarter of 1993, compared to a loss of $1.1 million, or 4 cents a share, in the same period of 1992. Although silver and gold average prices increased slightly in the second quarter, lead and zinc prices were much lower, and Hecla's precious metals production declined.
 For the first half of 1993, Hecla lost $6.8 million, or 21 cents a share, on revenues of $44.5 million. This compares to net income of $4.9 million, or 15 cents a share, on revenues of $67.5 million in the same period last year. Earnings in the first six months of 1992 were boosted by the nonrecurring sale of surface and timber rights on company- owned properties for $9 million.
 In late June 1993, Hecla sold 2.3 million shares of its new Series B Cumulative Convertible Preferred Stock at an issue price of $50 per share. After payment of sales commissions and other fees, the company netted approximately $110 million, the largest financing in its history. The preferred stock pays a 7 percent annual dividend and is convertible into 3.2154 shares of the company's common stock. Proceeds of the offering will be used primarily to develop two gold properties: Grouse Creek in central Idaho, and La Choya in northern Mexico. Construction is now under way at both properties.
 Grouse Creek, located near Challis, Idaho, contains proven and probably reserves of 831,000 ounces of gold and 17.5 million ounces of silver. Plans for the property include open-pit mining of two surface deposits supplemented by underground mining of a deeper, high-grade ore zone discovered in late 1992. Ore will be processed through a 6,000 ton-per-day mill to be constructed on-site. Approximately $85 million will be required to bring the project into production with start-up targeted for late 1994. Current proven and probably reserves support an estimated eight-year mine life, although the area holds excellent potential for the discovery of additional reserves.
 The La Choya gold project, near Hermosillo, Mexico, will be Hecla's first operation outside the United States and Canada. The presently known deposit contains approximately 179,000 ounces of proven and probably gold reserves. It will be mined over a 2-1/2-year period, utilizing standard open-pit heap leach technology. Current proven and probably gold reserves at La Choya will be depleted in 1996, although Hecla intends to begin an aggressive exploration drilling program later this year on its 36,000-acre Mexican mineral concessions. Approximately $10 million will be required to bring the property into production, planned for the fourth quarter of 1993.
 On April 29, 1993, Hecla reported a gain of $0.3 million resulting from a negotiated acquisition on the open market of 60,400 of its Liquid Yield Option Notes in exchange for 2.2 million shares of Hecla common stock. This, coupled with the successful offering of its Series B Preferred Stock, has substantially strengthened the company's balance sheet while providing better financial flexibility. Total debt decreased from $78.9 million at the beginning of the second quarter of 1993 to $47.6 million by June 30. Cash and cash equivalents rose from $3.3 million to $108 million during the same period.
 Arthur Brown, the company's chairman and chief executive officer, said, "Successful completion of the recent preferred stock offering represents a very important step in securing Hecla's future. Proceeds from the offering have allowed us to continue our growth plans, building new mines that will more than double our gold and silver output by 1995." Brown added that he is encouraged by the recent upward movement in gold and silver prices and said he believes improving market fundamentals for both metals will benefit Hecla as its new mines are brought on-line over the next two years.
 The company also announced that its board of directors has declared the first quarterly dividend on the recently issued Series B Cumulative Convertible Preferred Stock. This dividend, in an amount of 89 cents per share pro rated from date of issue of the Preferred Stock, will be paid on Oct. 1, 1993, to shareholders of record of the Preferred Stock at the close of business on Sept. 10, 1993.
 Hecla Mining Co. is headquartered in Coeur d'Alene. During its 102-year history, Hecla has been a leading U.S. producer of silver and lead, and more recently a significant supplier of gold and industrial minerals.
 HECLA MINING CO.
 RESULTS IN BRIEF
 (Dollars in thousands, except per-share amounts)
 Second Quarter Six Months Ended
 June 30, 1993 1992 1993 1992
 Total revenue $23,523 $29,207 $44,504 $67,519
 Net income (loss) (2,012) (1,103) (6,783) 4,867
 Net income (loss) per
 share (0.06) (0.04) (0.21) 0.15
 Sale of products
 Gold operations 5,877 8,015 10,346 18,326
 Silver operations 4,843 6,872 8,934 14,135
 Industrial minerals 11,755 12,039 23,581 23,636
 Specialty metals 610 --- 1,093 ---
 Total sales 23,085 26,926 43,954 56,097
 Gross profit (loss)
 Gold operations 1,873 1,314 2,468 3,400
 Silver operations (2,544) (1,700) (5,336) (2,945)
 Industrial minerals 1,727 2,092 2,957 3,735
 Specialty metals (53) --- (154) ---
 Total gross profit (loss) 1,003 1,706 (65) 4,190
 AVERAGE METAL PRICES
 Second Quarter Six Months Ended
 June 30, 1993 1992 1993 1992
 Gold (dollars/ounce) $360.41 $338.89 $344.94 $344.89
 Silver (dollars/ounce) 4.26 4.05 3.96 4.09
 Lead (cents/pound) 18.5 24.2 18.7 23.7
 Zinc (cents/pound) 44.0 61.4 45.7 57.2
 SELECTED FINANCIAL INFORMATION
 (In thousands, except per-share amounts)
 Second Quarter Six Months Ended
 June 30 1993 1992 1993 1992
 Income statement data:
 Sales of products $ 23,085 $ 26,926 $ 43,954 $ 56,097
 Gross profit (loss) 1,003 1,706 (65) 4,190
 General & administrative 1,693 1,828 3,315 3,863
 Exploration & research 695 2,107 1,774 4,117
 Depreciation & amortization 179 144 305 283
 Provision for closed operations
 & environmental matters 145 92 197 229
 Loss from operations (1,709) (2,465) (5,656) (4,302)
 Other income (expense):
 Interest and other income 438 2,281 550 11,422
 Loss on sale of investments (120) -- (120) --
 Miscellaneous income 28 11 40 55
 Interest expense:
 Total interest cost (1,269) (1,566) (2,812) (3,249)
 Less amount capitalized 706 479 1,371 891
 Income (loss) before income
 taxes and cumulative effect
 of changes in accounting
 principles (1,926) (1,260) (6,627) 4,817
 Income tax provision
 (benefit) 86 (157) 156 (153)
 Cumulative effect of changes
 in accounting principles --- --- --- (103)
 Net income (loss) (2,012) (1,103) (6,783) 4,867
 Net income (loss) per share (0.06) (0.04) (0.21) 0.15
 Weighted average number of
 common shares outstanding 33,839 30,913 32,720 30,692
 Common shares outstanding at
 end of period 33,889 31,587
 Cash flow data:
 Cash flow from (to) operations 1,060 3,241
 Cash & cash equivalents at end
 of period 108,112 9,031
 Selected balance sheet data: June 30, 1993 Dec. 31, 1992
 Total current assets $ 138,228 $ 32,968
 Properties, plants and equipment, net 179,521 179,827
 Total assets 327,990 222,443
 Working capital 124,181 20,270
 Total current liabilities 14,047 12,698
 Long-term debt 47,612 70,382
 Total shareholders' equity 242,450 113,719
 PRODUCTION DATA
 (In thousands, except cost per ounce amounts)
 Second Quarter Six Months Ended
 June 30, 1993 1992 1993 1992
 Republic Unit
 Gold (oz.) 13,262 13,586 24,621 30,085
 Silver (oz.) 72,709 65,842 131,082 145,739
 Cash cost per oz.
 of gold 191.70 169.22 207.11 177.08
 Full cost per oz.
 of gold 242.20 216.35 261.38 218.98
 Lucky Friday Unit
 Silver (oz.) 528,268 451,570 1,191,827 1,030,822
 Gold (oz.) 224 213 478 511
 Lead (tons) 5,424 5,081 11,569 10,757
 Zinc (tons) 1,270 1,084 2,717 2,070
 Cash cost per oz.
 of silver 5.18 4.69 4.69 4.28
 Full cost per oz.
 of silver 6.45 6.10 5.87 5.48
 Greens Creek Unit
 Silver (oz.) 121,247 460,681 551,107 933,872
 Gold (oz.) 327 2,028 2,826 4,601
 Lead (tons) 105 1,056 1,298 2,134
 Zinc (tons) 282 2,520 3,453 5,132
 Cash cost per oz.
 of silver 6.35 7.03 5.11 4.98
 Full cost per oz.
 of silver 10.07 8.08 7.16 6.71
 Other (Cactus and miscellaneous)
 Gold (oz.) 2,593 9,132 4,014 20,006
 Silver (oz.) 7,419 165,022 14,112 392,430
 Total production and
 average costs
 Silver (oz.) 729,643 1,143,115 1,888,128 2,502,863
 Gold (oz.) 16,406 24,959 31,939 55,203
 Lead (tons) 5,529 6,137 12,867 12,891
 Zinc (tons) 1,552 3,604 6,170 7,202
 Average cash cost per
 oz. of gold 192.10 190.28 210.05 195.79
 Average full cost per
 oz. of gold 244.86 269.28 265.46 271.48
 Average cash cost per
 oz. of silver 5.40 5.76 4.82 4.68
 Average full cost per
 oz. of silver 7.13 6.86 6.28 5.96
 -0- 8/6/93
 /CONTACT: Bill Booth, manager - Investor and Public Affairs, of Hecla Mining, 208-769-4100/
 (HL HL-B)


CO: Hecla Mining Co. ST: Idaho IN: MNG SU: ERN

SB-AL -- SE002 -- 0387 08/06/93 15:52 EDT
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