NYSE$HL

Hecla Mining Company · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Hecla's operations experienced minimal disruption and maintained a solid liquidity position, setting the stage for a strong second half of 2020.

Hecla Mining Company reported first quarter financial results with sales of $136.9 million, silver production of 3.2 million ounces, and gold production of 58,792 ounces. The company experienced a net loss of $17.2 million, impacted by lower provisional prices for a Greens Creek shipment and the COVID-19 related shutdown of Casa Berardi.

  • COVID-19 rapid response mitigated impact with four out of five mines operating.
  • Financial results impacted by lower provisional prices for a Greens Creek shipment, higher treatment charges, higher product inventory and COVID-19 related shutdown of Casa Berardi.
  • Strong financial position with over $200 million in cash.
  • Silver production of 3.2 million ounces and gold production of 58,792 ounces.

Headline financials

Total Revenue

$137M

Previous: $153M-10.3%
EPS (adj)

-$0.03

Previous: -$0.04+25.0%
Total Silver Production

3.2M

No prior period
Total Gold Production

58.8K

No prior period
Capital Expenditures

-$19.9M

Previous: -$33.1M+39.9%
Free Cash Flow

-$37.1M

Previous: -$58.6M+36.8%
Net Income

-$17.2M

Previous: -$25.5M+32.7%
Operating Income

-$15M

Previous: -$16.1M+7.2%
Gross Profit

$11.4M

Previous: $3.44M+230.2%
Cash & Equivalents

$216M

Previous: $11.8M+1728.6%
Total Assets

$2.76B

Previous: $2.69B+2.6%
Stock-Based Comp

$1.22M

Previous: $1.58M-22.8%

Revenue & EPS history

Hecla · Revenue · Quarterly

$137M

Q1 2020-10.3%vs Q1 2019
Beat estimate in 8 of 13 quarters(62%)
ActualEstimate

Revenue by segment

Hecla · $111M total across 3 segments · Q1 2020

  • Greens Creek Cash Flow
    $60.3M
  • Casa Berardi Cash Flow
    $48.3M
  • Lucky Friday Cash Flow
    $2.83M

Forward guidance

Company has set new guidance for annual production, cost and expenditures.

Tailwinds

  • Company will receive minimum expected prices on the Company’s projected silver and gold production through the use of put contracts second quarter and gold production through the third quarter of 2020
  • Company will successfully manage price exposure at Greens Creek for concentrate shipments and forecasted future concentrate shipments through the use of provisional hedges and forward contracts
  • Expectation that higher metals prices could increase the expected cash flow for Greens Creek in the second quarter when sales of prior shipments settle
  • Greens Creek mill will recover lost tonnage due to the replacement of a failed SAG motor during the rest of 2020
  • Ability to bring mines back into full production in the timeframes stated after COVID-19 related shutdowns

Headwinds

  • Gold, silver and other metals price volatility
  • Operating risks
  • Currency fluctuations
  • Increased production costs and variances in ore grade or recovery rates from those assumed in mining plans
  • The failure of counterparties to perform their obligations under hedging instruments, including put option contracts

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

+0.0%

Avg return

Earnings day

-1.1%

Avg return

5 days after

-0.1%

Avg return

30 days after

49%

33 / 68 earnings

Positive

+17.1%

Q4 2021

Best reaction

-23.5%

Q1 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.2%+21.3%-13.4%
Q4 2025+3.6%+12.9%-18.8%
Q3 2025+11.9%+22.0%+40.1%
Q1 2025+5.3%+8.4%+24.0%
Q4 2024-14.6%-15.5%-9.9%
Q3 2024-4.4%-11.4%-12.4%
Q2 2024+1.5%+6.3%+19.8%
Q1 2024+9.6%+4.8%+7.0%
Q4 2023+7.4%+3.2%+26.7%
Q3 2023-5.8%-12.7%+9.9%
Q2 2023-9.3%-7.0%-21.5%
Q1 2023-12.5%-13.3%-13.2%
Q4 2022-10.1%-8.5%-1.1%
Q3 2022+0.4%+3.8%+11.7%
Q2 2022+5.4%+4.3%-11.6%
Q1 2022-4.8%+0.2%+1.8%
Q4 2021+17.1%+15.1%+33.5%
Q3 2021+1.7%+4.2%-13.1%
Q2 2021-1.6%-4.6%+1.6%
Q1 2021+16.5%+18.9%+42.7%
Q4 2020+1.5%+14.3%+8.3%
Q3 2020-5.9%-4.7%-9.5%
Q2 2020-4.7%-12.3%-13.1%
Q1 2020+3.5%-1.6%+23.7%
Q4 2019+11.4%+2.3%-14.3%
Q3 2019-2.5%+2.1%+17.3%
Q2 2019-14.5%-20.0%-10.0%
Q1 2019-23.5%-24.0%-27.9%
Q4 2018-11.6%-10.6%-17.1%
Q3 2018+0.0%-8.6%-0.8%
Q2 2018+5.6%-0.7%-5.6%
Q1 2018-0.5%-1.0%-5.3%
Q4 2017-1.0%-6.7%-4.2%
Q3 2017+2.2%-10.4%-23.3%
Q2 2017-7.9%-10.9%-1.8%
Q1 2017+1.7%+8.5%+10.8%
Q4 2016-7.2%-12.3%-20.4%
Q3 2016+9.4%-8.9%-4.5%
Q2 2016+0.8%+8.5%-8.4%
Q1 2016+10.6%
Q4 2015+6.4%
Q3 2015-0.9%
Q2 2015-5.1%
Q1 2015+0.3%
Q4 2014+7.5%
Q3 2014-0.5%
Q2 2014-6.6%
Q1 2014-1.6%
Q4 2013-0.6%
Q3 2013-1.0%
Q2 2013+11.5%
Q1 2013-3.9%
Q4 2012+1.2%
Q3 2012-6.2%
Q2 2012-1.5%
Q1 2012+3.6%
Q4 2008-0.4%
Q4 2011-0.4%
Q3 2011-5.6%
Q2 2011+7.2%
Q1 2010+6.3%
Q1 2011-0.6%
Q4 2010+0.6%
Q3 2010-0.9%
Q3 2009-0.9%
Q2 2010+2.8%
Q2 2009+2.8%
Q4 2009+2.8%

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