Production and sales levels were higher for metals and industrial minerals but a one-time litigation settlement and start-up costs at the Greens Creek mine in Alaska partially offset gains from increased production. Hecla has a 28% interest in Greens Creek which is expected to be a major contributor to future earnings.
The company has agreed to pay $1.6 million as part of a settlement of a lawsuit regarding treatment of mine water discharge at the Old Reliable copper mine in Arizona. Final details are still being worked out, the company said.
Lower gold and silver prices and higher exploration expenditures in Canada contributed to the quarterly loss, said Arthur Brown, the company’s chief executive officer.
“Although the slow downward spiral of precious metals prices is distressing, our gold and industrial minerals divisions continue to sho w an operating profit. We’re working to lower our cost of producing silver so those operations will show a profit even at lower silver prices,” Brown said.
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