Hecla Mining Company (HL) Stock: Why It Increased Today

By Amit Chowdhry ● Feb 22, 2022
  • The stock price of Hecla Mining Company (NYSE: HL) increased by over 1% pre-market today. This is why.

The stock price of Hecla Mining Company (NYSE: HL) increased by over 1% pre-market today. Investors are responding positively to the company’s fourth-quarter results.

ANNUAL HIGHLIGHTS

Operational

— Produced 12.9 million silver ounces and 201,327 gold ounces, meeting production and cost guidance.

— Developed the Underhand Closed Bench (UCB) mining method at Lucky Friday, which contributed to the 75% increase in silver production and showed improvements in managing seismicity.

— Casa Berardi achieved record throughput and recoveries improved by 4%, producing 134,511 gold ounces.

— Second highest reserves for both silver and gold in Company history.

Financial

— Record sales of $807.5 million with net income of $35.1 million.

— Record Adjusted EBITDA of $278.8 million.

— Second highest cash flow from operations of $220.3 million and free cash flow of $111.3 million.

— Record exploration and pre-development expenditures of $47.9 million.

— Returned $20.7 million, or 19%, of free cash flow to our common and preferred — shareholders through dividends.

KEY QUOTE:

“2021 was an outstanding year for Hecla as we generated record revenues and adjusted EBITDA resulting in the second highest free cash flow in our 130-year history. The year also positions Hecla for future success with our exploration program delivering our highest silver reserves in more than 20 years and the Lucky Friday’s establishment of a new, innovative mining method that should be both safer and more productive. This method, which we call the Underhand Closed Bench method will allow the Lucky Friday to increase projected production in 2022 by almost a million silver ounces over 2021, which was a million and half more than 2020.”

“Since Hecla is not only the largest producer of silver in the United States but also has the largest silver reserve base in the U.S., our stakeholders are uniquely positioned to benefit from the growing demand for silver in the transition to clean energy.”

— Phillips S. Baker Jr., President and CEO

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.