With earnings of US$7.1 million for the first nine months of this year, Hecla Mining (NYSE) is showing an improved performance over the comparable 1989 period when it reported a loss of US$9.2 million. Cash flow for the period also improved dramatically, jumping to US$16.6 million from US$5.3 million in the first mine months of 1989.
The improvement is the result of increased gold production, a higher average gold price compared with last year, and sharply lower costs at the company’s silver operations.
Gold production for the nine months was 109,494 oz., compared with 61,650 oz. in 1989. Silver production was 4.5 million oz., up slightly from the 4.3 million oz. produced last year.
Although costs at the company’s silver operations dropped, Hecla reported a gross operating loss related to silver production of US$1.7 million. This compares with a loss of over US$9.4 million reported for the first nine months of 1989.
The average price received for silver production was US$5.03 per oz. in the first nine months, and US$4.88 per oz. in the third quarter of 1990. The company received an average of US$5.54 per oz. in the nine months ended Sept. 30, 1989, and US$5.18 per oz. in the third quarter of 1989.
Hecla’s balance sheet remains in good shape with working capital of over US$44 million and long-term debt of US$68.7 million as at Sept. 30.
President Arthur Brown stressed that the trading level of the stock, near its 52-week low of US$6 5/8, was in no way a reflection of operating problems at any of the company’s operations.
He tied the low price level to the poor performance of precious metals, particularly silver which recently broke below US$4 per oz.006 Hecla Mining (NYSE) 3 months ended Sept. 30 1990 1989 Revenue $41,874 $26,110 Net earnings (loss) 519 (3,457 )
per share 0.02 (0.13 ) 9 months ended Sept. 30 Revenue $103,444 $74,834 Net earnings (loss) 7,105 (9,177 )
per share 0.26 (0.34 )004
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