1
Exhibit 13
[HECLA LOGO] 97-08
HECLA REPORTS SECOND QUARTER EARNINGS
For the Period Ended June 30, 1997
For release: July 31, 1997
COEUR D'ALENE, IDAHO -- Hecla Mining Company (HL & HL-PrB:NYSE) today
reported second quarter 1997 earnings of $1 million, or 2 cents per common
share, on revenue of $48.1 million, after the payment of a quarterly dividend of
$2 million to holders of preferred stock. This compares to earnings of
$0.8 million, or 2 cents per common share, on revenue of $41.2 million in the
second quarter of 1996.
Increased production and lower costs at Hecla's gold operations
contributed to the company's earnings during the second quarter, more than
offsetting a decrease in precious metals and lead prices. A gain on the sale of
Hecla's partial interest in the Buckhorn gold property in Nevada of $1.1 million
was also a major factor in the second quarter performance. Hecla has retained a
4% joint venture interest in the property after selling an 8% interest to Placer
Dome U.S. Inc. These income items were partly offset by decreased
profitability from the industrial minerals segment and an increase in
exploration expenditures compared to the second quarter of 1996. In addition,
the second quarter of 1996 received the benefit of a $1.9 million insurance
settlement, nonrecurring in the second quarter of this year.
For the first six months of 1997, Hecla reported a loss of $0.5 million,
or 1 cent per share, compared to earnings of $0.3 million, or 1 cent per share,
during the first six months of 1996.
PRODUCTION AND COSTS
Hecla produced significantly more silver and gold in the second quarter of
this year, compared to the same period last year. Silver production more than
tripled to 1.3 million ounces, with the increase primarily attributable to the
start-up of the Greens Creek mine in Alaska. The company's average cash cost to
produce an ounce of silver was $3.61 in the second quarter, compared to $4.48
during the same quarter a year ago.
Gold production also improved, increasing from 30,909 ounces in the second
quarter of 1996 to 45,429 ounces in the second quarter of this year. The start-
up of the Rosebud gold mine in northern Nevada is primarily responsible for
Hecla's improved gold production compared to a year ago. Average gold cash
costs decreased substantially, dropping from $286 per ounce in last year's
second quarter to $155 per ounce in the second quarter of 1997. Arthur Brown,
Hecla's chairman and chief executive officer, said, "I'm pleased to be able to
report earnings for the second quarter of this year, especially in view of the
drop in precious metals and lead prices."
METALS PRICES
Precious metals prices declined significantly, with the average price of
gold during the second quarter of 1997 falling to $343 per ounce, compared to
$390 in the second quarter of 1996. Silver also experienced the downturn,
posting an average price of $4.76 per ounce in the second quarter, compared to
$5.30 in the same period last year. Lead followed suit, decreasing nearly 9
cents per pound from a year ago, to 28.4 cents. The bright spot in the price
arena was zinc, which increased 26% to an average of 59 cents per pound during
the second quarter of 1997, compared to 46.7 cents per pound in the second
quarter of 1996.
Hecla's average realized price per ounce of gold sold during the first six
months of 1997 was $373, compared to the London Final average price of $347 per
ounce. The higher realized price is due to Hecla's hedging program, where the
company enters into various contracts with gold traders to lock in attractive
Contact Bill Booth, vice president-investor and public affairs, or Vicki
Veltkamp, manager-corporate communications
6500 Mineral Drive * Coeur d'Alene, Idaho 83815-8788 * 208/769-4100
* FAX 208/769-4159
2
prices for future gold production. About 44% of Hecla's remaining 1997
estimated gold production has been hedged at a minimum price of $374 per ounce.
METALS OPERATIONS
Hecla's gold operations are performing above expectations in 1997. The
Rosebud mine in northern Nevada began producing gold in April, yielding 12,227
ounces of gold for Hecla's account in its first three months of operation.
Rosebud is a 50/50 joint venture with Newmont Gold Company. Hecla is managing
the underground mine near Winnemucca, while Newmont processes the ore at its
Twin Creeks gold operation. Start-up went smoothly, with the mine coming on-
line ahead of schedule and well under budget. Rosebud produced gold at a very
competitive average cash cost of $144 per ounce during the second quarter of
1997.
In Mexico, the La Choya gold mine continues to be a low-cost performer.
La Choya produced 39,175 ounces of gold in the first half of 1997 at an average
cash cost of $184 per ounce. After four good years of operation, mining is
expected to be completed in the first quarter of 1998, though processing of the
heaps is expected to continue through at least the end of next year.
The Greens Creek silver/zinc/gold/lead mine in Alaska, a joint venture
with Kennecott Greens Creek Mining Company, produced 1,383,793 ounces of silver
for Hecla's account so far this year, at an average cash cost of $2.32 per
ounce. The mine's cash costs per ounce also include credits from by-product
metals, so Greens Creek benefitted from the higher price of zinc during the
second quarter of this year. Per ounce production costs are anticipated to
decrease as ore grade improves throughout the year. Early third quarter mining
results are indicating ore grades in the range of 30 ounces of silver per ton,
compared to about 24 ounces per ton in the first six months of 1997.
The Lucky Friday silver mine in North Idaho produced 947,561 ounces of
silver in the first half of 1997 at a cash cost of $4.97 per ounce. Development
of the new Lucky Friday expansion area adjacent to the underground workings is
on schedule, and the new area should be in production beginning in 1998. The
expansion area ore contains nearly twice the silver grade of the Lucky Friday
main vein currently being mined. Per ounce production costs at Lucky Friday
were higher during the first half of 1997 as compared to 1996. A major factor
in the increased costs per ounce was the decrease in the price of lead, because
lead production revenue is used to offset the cost per ounce of silver.
INDUSTRIAL MINERALS
Performance in the industrial minerals segment did not meet expectations
in the first half of the year. A $1.4 million reduction in gross profit from
the Mountain West Products division in the first six months of 1997 compared to
the first half of 1996 is the primary reason for the decreased performance from
the industrial minerals segment. Mountain West produces and distributes bark to
the landscape market, and sales were negatively impacted by the delay of spring
weather this year and the resultant competitive pricing pressures. Sales at
Hecla's other industrial minerals segment, Kentucky-Tennessee Clay Company, were
also down slightly for the first six months of 1997, mainly in the kaolin and
feldspar divisions.
In early July, Kentucky-Tennessee Clay Company voluntarily suspended
shipments of ball clay to all animal feed manufacturers. A small amount of K-T
Clay's ball clay is used by animal feed producers to prevent animal feed from
clumping. K-T Clay ships about 1% of its annual production for this use. The
action was taken as a result of a discovery by the Food and Drug Administration
that trace levels of dioxin of about 3 parts per trillion (0.000000000003)
existed in the edible meat of two chickens out of a sample size of 80 chickens.
Contact Bill Booth, vice president-investor and public affairs, or Vicki
Veltkamp, manager-corporate communications
6500 Mineral Drive * Coeur d'Alene, Idaho 83815-8788 * 208/769-4100
* FAX 208/769-4159
3
The source of dioxin was traced to the ball clay in the feed. The FDA
determined there is no health risk, but as a precaution, halted shipments from
some poultry processors and egg producers until they certify their product is
dioxin free. Mine Safety and Health Administration officials have tested the
mining operation the clay came from and have determined there is no health risk
to K-T Clay employees working with the clay. Testing to identify the source of
the low levels of dioxin in the ball clay is continuing. Initial results
indicate that dioxin may be an inherent characteristic of ball clay deposits.
K-T Clay is cooperating fully with federal agencies in this matter and does not
believe there will be any long-term material impact on the business.
STAR PHOENIX
On July 14, the Idaho State Supreme Court again ruled in Hecla's favor by
denying Star Phoenix Mining Company's request for rehearing of its claim against
Hecla, bringing the case to its final conclusion. Star Phoenix requested a
rehearing on April 22, 1997, after the Court handed down its decision affirming
Hecla's right to terminate Star Phoenix's 1990 lease of the Star-Morning mine in
North Idaho. The Supreme Court held that Hecla's actions were proper.
CONCLUSION
Arthur Brown said he's pleased that Hecla's gold operations are performing
so well. "They are proving to be low-cost operations and are exceeding
expectations." He said the company's silver properties are also performing
well, especially considering Lucky Friday is in the middle of a major
development project. He added, "I'm disappointed with the current level of
precious metals prices. However, our aim is to develop and run low-cost
operations that can weather the low end of the price cycle, and I'm confident
our mines are on track to accomplish that."
Hecla Mining Company, headquartered in Coeur d'Alene, Idaho, is one of the
United States' best-known silver producers. The company also produces gold and
is a major supplier of ball clay, kaolin and other industrial minerals. Hecla's
operations are principally in the U.S. and Mexico.
Statements made which are not historical facts, such as anticipated
production, sales or discussions of goals are "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act of 1995, and
involve a number of risks and uncertainties that could cause actual results to
differ materially from those projected. These risks and uncertainties include,
but are not limited to, metals prices volatility, volatility of metals
production and project development risks. Refer to the company's Form 10-Q and
10-K reports for a more detailed discussion of factors that may impact expected
future results.
Hecla Mining Company news releases can be accessed on the Internet at:
http://www.hecla-mining.com
You can also request a free fax of this entire news release
from BusinessWire NewsOnDemand at 800-344-7826
Contact Bill Booth, vice president-investor and public affairs, or Vicki
Veltkamp, manager-corporate communications
6500 Mineral Drive * Coeur d'Alene, Idaho 83815-8788 * 208/769-4100
* FAX 208/769-4159
4
HECLA MINING COMPANY
(dollars in thousands, except per share, per ounce and per pound amounts -
unaudited)
Second Quarter Ended Six Months Ended
------------------------------ ------------------------------
HIGHLIGHTS June 30, 1997 June 30, 1996 June 30, 1997 June 30, 1996
- --------------------------------------------------------------------------------------------------------------
FINANCIAL DATA
- --------------------------------------------------------------------------------------------------------------
Total revenue $ 48,139 $ 41,237 $ 91,746 $ 84,878
Gross profit 6,784 3,028 10,962 6,963
Net income 3,054 2,801 3,572 4,276
Income (loss) applicable to
common shareholders 1,041 788 (453) 251
Income (loss) per common share 0.02 0.02 (0.01) 0.01
Cash flow provided (used) by
operating activities 6,777 6,787 (945) 6,422
- --------------------------------------------------------------------------------------------------------------
SALE OF PRODUCTS BY SEGMENT
- --------------------------------------------------------------------------------------------------------------
Gold operations $ 14,549 $ 12,452 $ 29,924 $ 31,467
Silver operations 8,240 3,453 16,916 7,929
Industrial minerals 23,280 24,618 41,685 44,074
----------- ----------- ---------- ------------
Total sales $ 46,069 $ 40,523 $ 88,525 $ 83,470
- --------------------------------------------------------------------------------------------------------------
GROSS PROFIT (LOSS) BY SEGMENT
- --------------------------------------------------------------------------------------------------------------
Gold operations $ 4,797 $ (1,306) $ 7,827 $ 883
Silver operations (925) (304) (1,565) (196)
Industrial minerals 2,912 4,638 4,700 6,276
----------- ----------- ---------- ------------
Total gross profit $ 6,784 $ 3,028 $ 10,962 $ 6,963
- --------------------------------------------------------------------------------------------------------------
PRODUCTION SUMMARY - TOTALS
- --------------------------------------------------------------------------------------------------------------
Gold - Ounces 45,429 30,909 89,333 78,181
Silver - Ounces 1,280,306 415,821 2,524,504 951,821
Lead - Tons 6,415 4,421 12,997 9,998
Zinc - Tons 4,354 770 8,562 1,776
Industrial minerals - Tons shipped 272,253 292,886 519,463 547,924
Average cost per ounce of gold produced:
Cash operating costs ($/oz.) 146 281 169 267
Total cash costs ($/oz.) 155 286 175 271
Total production costs ($/oz.) 225 385 233 366
Average cost per ounce of silver produced:
Cash operating costs ($/oz.) 3.61 4.48 3.40 4.58
Total cash costs ($/oz.) 3.61 4.48 3.40 4.58
Total production costs ($/oz.) 5.23 5.79 5.27 5.84
- --------------------------------------------------------------------------------------------------------------
AVERAGE METAL PRICES
- --------------------------------------------------------------------------------------------------------------
Gold - Realized ($/oz.) 371 399 373 400
Gold - London Final ($/oz.) 343 390 347 395
Silver - Handy & Harman ($/oz.) 4.76 5.30 4.89 5.42
Lead - LME Cash (cents/pound) 28.4 37.0 29.6 35.9
Zinc - LME Cash (cents/pound) 59.0 46.7 56.1 46.9
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HECLA MINING COMPANY
Consolidated Balance Sheets
(dollars and shares in thousands - unaudited)
June 30, 1997 Dec. 31, 1996
- ----------------------------------------------------------------------------------------------------------
ASSETS
- ----------------------------------------------------------------------------------------------------------
Current assets:
Cash and cash equivalents $ 8,626 $ 8,256
Accounts and notes receivable 31,575 24,168
Income tax refund receivable 1,083 1,262
Inventories 19,775 22,879
Other current assets 1,590 2,284
---------- ----------
Total current assets 62,649 58,849
Investments 2,388 1,723
Restricted investments 6,861 20,674
Properties, plants and equipment, net 178,452 177,755
Other noncurrent assets 8,292 9,392
---------- ----------
Total assets $ 258,642 $ 268,393
========== ==========
- ----------------------------------------------------------------------------------------------------------
LIABILITIES
- ----------------------------------------------------------------------------------------------------------
Current liabilities:
Accounts payable and accrued expenses $ 12,047 $ 17,377
Accrued payroll and related benefits 3,047 3,232
Preferred stock dividends payable 2,012 2,012
Accrued taxes 1,198 1,427
Accrued reclamation and closure costs 8,568 8,664
---------- ----------
Total current liabilities 26,872 32,712
Deferred income taxes 359 359
Long-term debt 15,141 38,208
Accrued reclamation and closure costs 41,031 45,953
Other noncurrent liabilities 6,856 5,653
---------- ----------
Total liabilities 90,259 122,885
---------- ----------
- ----------------------------------------------------------------------------------------------------------
SHAREHOLDERS' EQUITY
- ----------------------------------------------------------------------------------------------------------
Preferred stock 575 575
Common stock 13,789 12,800
Capital surplus 374,016 351,559
Accumulated deficit (214,063) (213,610)
Net unrealized loss on investments (150) (32)
Foreign currency translation adjustment (4,898) (4,898)
Treasury stock (886) (886)
---------- ----------
Total shareholders' equity 168,383 145,508
---------- ----------
Total liabilities and shareholders' equity $ 258,642 $ 268,393
========== ==========
Common shares outstanding at end of period 55,095 51,137
========== ==========
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HECLA MINING COMPANY
Consolidated Statements of Operations
(dollars and shares in thousands, except per share amounts - unaudited)
Second Quarter Ended Six Months Ended
---------------------------------- ----------------------------------
June 30, 1997 June 30, 1996 June 30, 1997 June 30, 1996
------------- ------------- ------------- -------------
Sales of products $ 46,069 $ 40,523 $ 88,525 $ 83,470
----------- ----------- ----------- -----------
Cost of sales and other direct
production costs 34,234 33,072 68,160 66,625
Depreciation, depletion and
amortization 5,051 4,423 9,403 9,882
----------- ----------- ----------- -----------
39,285 37,495 77,563 76,507
----------- ----------- ----------- -----------
Gross profit 6,784 3,028 10,962 6,963
----------- ----------- ----------- -----------
Other operating expenses:
General and administrative 1,912 1,873 4,033 3,824
Exploration 2,438 1,187 3,792 1,990
Depreciation and amortization 78 85 157 174
Provision for (benefit from) closed
operations and environmental matters (41) (2,618) 148 (2,801)
----------- ----------- ----------- -----------
4,387 527 8,130 3,187
----------- ----------- ----------- -----------
Income from operations 2,397 2,501 2,832 3,776
----------- ----------- ----------- -----------
Other income (expense):
Interest and other income 2,070 714 3,221 1,408
Miscellaneous expense (308) (375) (777) (709)
Gain on investments - - 110 - - 130
Interest expense:
Total interest cost (585) (728) (1,420) (1,349)
Less amount capitalized 116 566 477 1,043
----------- ----------- ----------- -----------
1,293 287 1,501 523
----------- ----------- ----------- -----------
Income before income taxes 3,690 2,788 4,333 4,299
Income tax benefit (provision) (636) 13 (761) (23)
----------- ----------- ----------- -----------
Net income 3,054 2,801 3,572 4,276
Preferred stock dividends (2,013) (2,013) (4,025) (4,025)
----------- ----------- ----------- -----------
Income (loss) applicable to common
shareholders $ 1,041 $ 788 $ (453) $ 251
=========== =========== =========== ===========
Income (loss) per common share $ 0.02 $ 0.02 $ (0.01) $ 0.01
=========== =========== =========== ===========
Weighted average number of common
shares outstanding 55,091 51,134 53,960 51,131
=========== =========== =========== ===========
7
HECLA MINING COMPANY
Consolidated Statements of Cash Flows
(in thousands - unaudited)
Six Months Ended
--------------------------------
June 30, 1997 June 30, 1996
- --------------------------------------------------------------------------------------------------------------
OPERATING ACTIVITIES
- --------------------------------------------------------------------------------------------------------------
Net income $ 3,572 $ 4,276
Noncash elements included in net income:
Depreciation, depletion and amortization 9,560 10,056
Loss (gain) on disposition of properties, plants and equipment (1,089) 149
Gain on investments - - (130)
Provision for reclamation and closure costs 474 1,508
Change in:
Accounts and notes receivable (7,407) (11,086)
Income tax refund receivable 179 169
Inventories 3,104 1,019
Other current assets 694 (251)
Accounts payable and accrued expenses (5,330) 2,111
Accrued payroll and related benefits (185) (483)
Accrued taxes (229) 113
Accrued reclamation and other noncurrent liabilities (4,288) (1,029)
---------- ----------
Net cash provided (used) by operating activities (945) 6,422
---------- ----------
- --------------------------------------------------------------------------------------------------------------
INVESTING ACTIVITIES
- --------------------------------------------------------------------------------------------------------------
Additions to properties, plants and equipment (10,322) (18,909)
Proceeds from disposition of properties, plants and equipment 1,242 91
Proceeds from sale of investments - - 130
Decrease (increase) in restricted investments 13,813 (155)
Purchase of investments and increase in cash surrender
value of life insurance, net (983) (383)
Other, net 1,011 (1,504)
---------- ----------
Net cash provided (used) by investing activities 4,761 (20,730)
---------- ----------
- --------------------------------------------------------------------------------------------------------------
FINANCING ACTIVITIES
- --------------------------------------------------------------------------------------------------------------
Issuance of common stock, net of offering costs 23,446 22,028
Dividends on preferred stock (4,025) (4,025)
Borrowings against cash surrender value of life insurance 200 401
Borrowing on long-term debt 27,000 30,500
Repayment on long-term debt (50,067) (32,909)
---------- ----------
Net cash provided (used) by financing activities (3,446) 15,995
---------- ----------
Net increase in cash and cash equivalents 370 1,687
Cash and cash equivalents at beginning of period 8,256 4,024
---------- ----------
Cash and cash equivalents at end of period $ 8,626 $ 5,711
========== ==========
8
HECLA MINING COMPANY
Production Data
Second Quarter Ended Six Months Ended
-------------------------------- ----------------------------------
June 30, 1997 June 30, 1996 June 30, 1997 June 30, 1996
- ------------------------------------------------------------------------------------------------------------------------
LA CHOYA UNIT
- ------------------------------------------------------------------------------------------------------------------------
Tons of ore processed 580,664 934,735 1,332,619 1,977,805
Days of operation 91 91 181 182
Mining cost per ton $2.09 $2.72 $2.59 $2.52
Ore grade crushed - Gold (oz./ton) 0.026 0.028 0.031 0.023
Gold produced (oz.) 18,820 18,679 39,175 39,715
Silver produced (oz.) 2,154 1,694 4,089 4,046
Average cost per ounce of gold produced:
Cash operating costs $160 $174 $183 $175
Total cash costs $161 $174 $184 $175
Total production costs $200 $290 $224 $289
- ------------------------------------------------------------------------------------------------------------------------
ROSEBUD UNIT (Reflects Hecla's 50% share)
- ------------------------------------------------------------------------------------------------------------------------
Tons of ore mined 38,180 - - 38,180 - -
Tons of ore milled 32,539 - - 32,539 - -
Days of operation 91 - - 91 - -
Mining cost per ton $28.12 - - $28.12 - -
Milling cost per ton $10.83 - - $10.83 - -
Ore grade milled - Gold (oz./ton) 0.444 - - 0.444 - -
Ore grade milled - Silver (oz./ton) 2.95 - - 2.95 - -
Gold produced (oz.) 12,227 - - 12,227 - -
Silver produced (oz.) 54,234 - - 54,234 - -
Average cost per ounce of gold produced:
Cash operating costs $123 - - $123 - -
Total cash costs $144 - - $144 - -
Total production costs $263 - - $263 - -
- ------------------------------------------------------------------------------------------------------------------------
GROUSE CREEK UNIT (1)
- ------------------------------------------------------------------------------------------------------------------------
Tons of ore milled 165,170 104,386 628,890 545,269
Days of operation 27 19 101 99
Surface mining cost per ton $8.68 $3.12 $7.47 $4.10
Milling cost per ton $6.09 $5.33 $6.55 $6.13
Ore grade milled - Gold (oz./ton) 0.035 0.053 0.041 0.045
Ore grade milled - Silver (oz./ton) 0.33 0.39 0.33 0.41
Gold produced (oz.) 9,088 5,195 26,622 23,534
Silver produced (oz.) 52,359 23,324 132,651 124,544
Average cost per ounce of gold produced:
Cash operating costs (2) - - $311 - - $300
Total cash costs (2) - - $311 - - $300
Total production costs (2) - - $385 - - $378
(cont.)
9
HECLA MINING COMPANY
Production Data (cont.)
Second Quarter Ended Six Months Ended
---------------------------------- ----------------------------------
June 30, 1997 June 30, 1996 June 30, 1997 June 30, 1996
- ------------------------------------------------------------------------------------------------------------------------
LUCKY FRIDAY UNIT
- ------------------------------------------------------------------------------------------------------------------------
Tons of ore milled 50,334 40,032 97,691 82,761
Days of operation 64 64 127 126
Mining cost per ton $44.47 $49.81 $45.46 $52.38
Milling cost per ton $7.33 $6.81 $7.16 $7.08
Ore grade milled - Silver (oz./ton) 9.86 9.87 9.94 10.07
Silver produced (oz.) 488,014 389,165 947,561 817,785
Lead produced (tons) 5,031 4,421 10,135 9,998
Zinc produced (tons) 838 770 1,757 1,776
Average cost per ounce of silver produced:
Cash operating costs $5.48 $4.48 $4.97 $4.58
Total cash costs $5.48 $4.48 $4.97 $4.58
Total production costs $6.73 $5.79 $6.27 $5.84
- ------------------------------------------------------------------------------------------------------------------------
GREENS CREEK (3)(Reflects Hecla's 29.73% share)
- ------------------------------------------------------------------------------------------------------------------------
Tons of ore milled 36,283 - - 73,063 - -
Days of operation 91 - - 181 - -
Mining cost per ton $37.65 - - $36.55 - -
Milling cost per ton $22.08 - - $21.60 - -
Ore grade milled - Silver (oz./ton) 24.26 - - 24.40 - -
Silver produced (oz.) 682,956 - - 1,383,793 - -
Gold produced (oz.) 3,918 - - 7,840 - -
Lead produced (tons) 1,384 - - 2,862 - -
Zinc produced (tons) 3,516 - - 6,805 - -
Average cost per ounce of silver produced:
Cash operating costs (3) $2.28 - - $2.32 - -
Total cash costs (3) $2.28 - - $2.32 - -
Total production costs (3) $4.15 - - $4.59 - -
- ------------------------------------------------------------------------------------------------------------------------
OTHER
- ------------------------------------------------------------------------------------------------------------------------
Gold produced (oz.) 1,376 7,035 3,469 14,932
Silver produced (oz.) 589 1,638 2,176 5,446
(1)The ownership percentage of the Grouse Creek mine has increased to 100% as of February 1, 1997, as compared to 80.71%
at June 30, 1996.
(2)Operations at the Grouse Creek mine were completed in April 1997; as such, no cost per ounce amounts are reported for
the 1997 period.
(3)The Greens Creek mine recommenced operations on July 29, 1996, on a start-up basis. Full production was achieved
in January 1997.
10
HECLA MINING COMPANY
CAPITAL EXPENDITURES
Six Months Ended
------------------------------
(dollars in thousands) June 30, 1997 June 30, 1996
------------- -------------
Rosebud (50.00%*) $ 4,256 $ 1,130
Lucky Friday 2,701 1,549
Greens Creek (29.73%*) 751 9,898
American Girl (47.00%*) - - 1,643
Grouse Creek - - 3,065
Industrial minerals 1,739 419
Capitalized interest 477 1,043
Other 398 162
---------- ---------
Total Capitalized $ 10,322 $ 18,909
========== =========
*Hecla's share
HEDGED GOLD POSITION
As of June 30, 1997
Min-Max options: 17,220 ounces @ Average Min. $396 per ounce,
Average Max. $461 per ounce
Spot deferred contracts: 10,000 ounces @ $349 per ounce
Forward contracts: 23,600 ounces @ $354 per ounce
Total 50,820 ounces hedged