1
[Hecla Logo] 99-13
Exhibit 13
HECLA MINING COMPANY REPORTS SECOND QUARTER PROFIT:
POSITIVE RESULTS FROM ALL BUSINESS SEGMENTS
For the Period Ended June 30, 1999
For release: August 3, 1999
COEUR D'ALENE, IDAHO Hecla Mining Company (HL & HL-PrB: NYSE) today
reported earnings applicable to common shareholders of 1 cent per share, or
$322,000, for the second quarter of 1999. Hecla's silver, gold and industrial
minerals divisions all showed a profit during the quarter, in spite of a
continued trend of lower metals prices. Positive results were highlighted by
outstanding performance from the company's silver segment, which reported gross
profit of $874,000 in the second quarter of 1999, compared to a loss of $334,000
in the same period last year. The second quarter was also positively impacted
by the sale of the company aircraft, which contributed $1.3 million in other
income. Second quarter earnings of 1 cent per share compare to 1998 second
quarter earnings of 2 cents per share, or $983,000. Last year's second quarter
profit included nonrecurring gains on the sale of Metaline Contact Mines stock
of $1.2 million and on the sale of property near the corporate headquarters of
$500,000.
For the first six months of 1999, Hecla lost $3.2 million, or 6 cents per
share, on revenue of $90.2 million, compared to earnings of $1.8 million, or 3
cents per share, on revenue of $89.7 million during the first six months of
1998. Overall gross profit from operations during the first half of the year
exceeded the first half of 1998 by 9%. Hecla's gold operations continue to
operate at low costs. However, lower gold prices and a decrease in production
negatively impacted gross profit from the gold segment compared to the same
period a year ago. This was partially offset by better performance from both
the silver and industrial minerals segments in 1999.
Arthur Brown, Hecla's chairman and chief executive officer said, "I'm happy
to report a profit in the second quarter, especially during this low cycle in
metals prices. There's no doubt that the precious metals market is struggling
with tremendous apathy from investors, which is reflected in our stock price.
But on a fundamental basis, Hecla's operations are performing well, particularly
given these difficult times. Our cash flow is well above budget and adequate to
operate our business, meet our obligations and provide for growth. In addition,
our balance sheet allows us to remain committed to the quarterly payment of our
preferred stock dividends. My recent purchase of a substantial number of Hecla
common shares is an indication of my personal confidence in the essential worth
of our company and its ability to weather the current vagaries of the market. I
believe the stock market must come back into balance and once again begin to
support producing precious metals companies." Brown also said that belt-
tightening measures continue to show results, noting that Hecla's general and
administrative costs decreased 11% in the first six months of 1999 compared to
the same period last year.
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FINANCIAL
Hecla's balance sheet is stronger now than at the end of 1998. The
improvement in the debt to equity ratio is a result of the company's successful
efforts earlier in the year to pay down debt and acquire the La Camorra gold
mine in Venezuela through a combination of equity issuance, nonrecourse project
financing and subordinated debt financing. Equity issuances included the sale
of 4.58 million shares of common stock in May 1999 to an investor group at an
average price of $2.625 per share, with Hecla realizing net proceeds of
approximately $11.3 million. At the end of the second quarter, Hecla's working
capital was about $39 million, including cash and cash equivalents of
$11.8 million. The company's operations generated approximately $21 million in
EBITDA (earnings before interest, income taxes, depreciation and amortization)
during the first six months of the year, compared to $18.7 million in the same
period a year ago. Gross profit for the second quarter increased 23% over the
same quarter last year.
Long-term debt under the company's $55 million revolving line of credit was
reduced to $34.8 million during the second quarter. Debt financing of $13.5
million, related to the acquisition of assets from Monarch Resources Limited,
was added during the quarter, of which $10.5 million is project financing which
is nonrecourse to Hecla.
OPERATIONS
Hecla's silver operations performed well, yielding 3,722,097 ounces of
silver during the first half of 1999, a 16% increase over the same period last
year. Silver was produced at an average total cash cost of $3.73 per ounce.
Gold production during the first six months was 54,991 ounces at a total cash
cost per ounce of $173.
GREENS CREEK The Greens Creek silver mine in Alaska, in which Hecla holds
a 29.73% interest, had an excellent quarter in terms of both ore grade and
production costs. The average silver grade mined at Greens Creek during the
second quarter was 25.36 ounces per ton. Total cash costs at the mine were
$2.04 per ounce of silver, and total production costs were $4.40, a 30% and 17%
decrease, respectively, from the second quarter of 1998.
LUCKY FRIDAY The Lucky Friday mine in North Idaho produced 1,137,420
ounces of silver in the second quarter of this year, a 16% increase over the
same period last year. However, a lower grade of ore encountered in the area
being mined during the second quarter reduced the average silver grade to 14.27
ounces per ton, compared to 17.85 ounces per ton during the same period last
year. The lower ore grades and lower by-product credits contributed to an
increased total cash cost per ounce at Lucky Friday of $4.93 in the second
quarter of 1999. Ore grade at Lucky Friday has since improved to 15 ounces per
ton and is expected to remain at or above that level for the remainder of the
year.
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ROSEBUD The Rosebud gold mine in northern Nevada, a 50/50 joint venture
with Newmont Mining Corp., performed above expectations for the quarter. The
average ore grade milled was 0.542 ounce of gold per ton compared to 0.379 ounce
of gold per ton during the second quarter of 1998. The high-grade pocket
currently being mined at Rosebud resulted in total cash costs of $164 per ounce
of gold, a decrease of 12% from the same quarter last year. Rosebud's
exploration program has drilled some promising, high-grade intercepts that are
expected to lead to new resource calculations. Two of the drill holes contained
a total of 20 narrow, ore-grade intercepts ranging from 0.25 ounce of gold per
ton to 5 ounces of gold per ton. The goal of the exploration program is to find
more gold reserves and extend the life of the mine beyond the current reserve
estimate.
INDUSTRIAL MINERALS The industrial minerals division performed
particularly well during the quarter, reporting a 39% increase in gross profit
compared to the second quarter of 1998. Hecla's industrial minerals division
contributed more than $9.3 million in EBITDA during the first six months of
1999, a 22% improvement over the same period last year.
PROJECTS
LA CAMORRA During the second quarter, Hecla closed the transaction to
acquire the La Camorra underground gold mine in Venezuela, a silver exploration
property in Mexico, and other properties from Monarch Resources Limited. The
purchase price was $25 million, comprised of $9 million in cash and 6.7 million
Hecla common shares, which are subject to certain trading restrictions. La
Camorra is a high-grade, underground gold mine that produced 51,000 ounces of
gold in 1998. Hecla is implementing a new mine plan that is expected to allow
sustainable production of 70,000-80,000 ounces annually at a total cash cost of
under $200 per ounce and a total production cost of $240-$250 per ounce. Mine
and mill improvements and an expansion of the tailings impoundment are taking
place during a three-month suspension of operations. Construction is on
schedule, and administrative improvements in purchasing and payroll procedures
are under way. Hecla is developing relationships with the various Venezuelan
agencies that impact operations at La Camorra and is receiving very favorable
responses. Resumption of mining is planned for October. La Camorra contains
more than 600,000 ounces of high-grade gold resource, and a deep drilling
exploration program is being planned to confirm and increase reserves.
NOCHE BUENA The Noche Buena gold development project, located in northern
Mexico, has been put on hold due to the depressed gold price. The deposit
contains more than 250,000 ounces of gold resource, and could be put into
production at a higher gold price. Hecla will reconsider the status of the
project when the gold price returns to a sufficient level.
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EXPLORATION
SALADILLO & DURANGO Hecla's purchase of the assets of Monarch Resources
includes the Saladillo silver/gold property in the Durango region of Mexico. It
is a highly prospective silver and gold project that currently contains a drill-
indicated resource of about 8 million ounces of silver at a grade of 14.6 ounces
per ton and 75,000 ounces of gold at a grade of 0.13 ounce per ton. In addition
to the core area with the identified resource, other veins near the Saladillo
deposit contain both drill intercepts and surface samples showing ore-grade
values of silver and gold. Hecla is embarking on a geological, geochemical and
geophysical review of all work done to date on the concessions, and a drilling
program is being planned. Hecla's total holdings consist of 400 square miles of
concessions in Durango. Because of the magnitude of the concessions, the
company is seeking joint-venture partners to help explore some of the targets
already identified.
NEVADA Hecla has dropped the Sunset gold exploration project in Mineral
County, Nevada, due to inadequate drilling results. However, the company
continues to evaluate other promising prospects in Nevada.
SILVER VALLEY A drilling program in North Idaho's Silver Valley is under
way in an effort to discover new orebodies in this traditionally rich silver
district. Hecla is conducting a diamond drilling exploration program using the
company's Lucky Friday mine as a base.
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., Mexico and Venezuela.
Statements made which are not historical facts, such as anticipated
production, costs, prices or sales performance 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, anticipated, expected or implied. These
risks and uncertainties include, but are not limited to, metals prices
volatility, volatility of metals production, industrial minerals market
conditions 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
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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, 1999 June 30, 1998 June 30, 1999 June 30, 1998
- --------------------------------------------------------------------------------------------------------------
FINANCIAL DATA
- --------------------------------------------------------------------------------------------------------------
Total revenue $ 47,881 $ 47,058 $ 90,235 $ 89,721
Gross profit 5,085 4,120 9,345 8,596
Net income 2,335 2,996 836 5,843
Income (loss) applicable to
common shareholders 322 983 (3,189) 1,818
Basic and diluted income (loss)
per common share 0.01 0.02 (0.06) 0.03
Cash flow provided by
operating activities 5,808 9,075 6,430 1,398
- --------------------------------------------------------------------------------------------------------------
SALE OF PRODUCTS BY SEGMENT
- --------------------------------------------------------------------------------------------------------------
Gold operations $ 5,600 $ 8,375 $ 11,991 $ 17,630
Silver operations 11,790 9,914 24,359 20,036
Industrial minerals 28,668 27,366 51,366 48,118
--------- --------- --------- ---------
Total sales $ 46,058 $ 45,655 $ 87,716 $ 85,784
- -------------------------------------------------------- -----------------------------------------------------
GROSS PROFIT (LOSS) BY SEGMENT
- --------------------------------------------------------------------------------------------------------------
Gold operations $ 92 $ 1,483 $ 711 $ 3,488
Silver operations 874 (334) 1,769 (1)
Industrial minerals 4,119 2,971 6,865 5,109
--------- --------- --------- ---------
Total gross profit $ 5,085 $ 4,120 $ 9,345 $ 8,596
OTHER DATA
- --------------------------------------------------------------------------------------------------------------
EBITDA BY SEGMENT(1)
- --------------------------------------------------------------------------------------------------------------
Gold operations $ 2,054 $ 2,845 $ 4,754 $ 6,306
Silver operations 3,672 1,767 7,211 4,735
Industrial minerals 5,251 4,207 9,324 7,671
--------- --------- --------- ---------
Total EBITDA $ 10,977 $ 8,819 $ 21,289 $ 18,712
- --------------------------------------------------------------------------------------------------------------
PRODUCTION SUMMARY - TOTALS
- --------------------------------------------------------------------------------------------------------------
Gold - Ounces 26,272 31,402 54,991 66,956
Silver - Ounces 1,948,205 1,691,242 3,722,097 3,221,649
Lead - Tons 8,958 8,548 17,236 16,655
Zinc - Tons 5,984 4,607 12,116 8,862
Industrial minerals - Tons shipped 319,426 310,726 610,172 592,927
Average cost per ounce of gold produced:
Cash operating costs ($/oz.) 163 179 160 170
Total cash costs ($/oz.) 178 192 173 181
Total production costs ($/oz.) 277 253 273 239
Average cost per ounce of silver produced:
Cash operating costs ($/oz.) 3.75 3.70 3.73 4.06
Total cash costs ($/oz.) 3.75 3.70 3.73 4.06
Total production costs ($/oz.) 5.30 5.14 5.29 5.53
- --------------------------------------------------------------------------------------------------------------
AVERAGE METAL PRICES
- --------------------------------------------------------------------------------------------------------------
Gold - Realized ($/oz.) 288 307 294 303
Gold - London Final ($/oz.) 273 300 280 297
Silver - Handy & Harman ($/oz.) 5.16 5.71 5.23 5.97
Lead - LME Cash (cents/pound) 23.3 24.8 23.2 24.6
Zinc - LME Cash (cents/pound) 46.3 47.9 45.7 48.0
(1) EBITDA represents earnings before interest, income taxes, depreciation,
depletion, amortization and items classified as other operating expenses not
occurring at the operating site. The company believes EBITDA is helpful in
understanding cash flow generated from operations that is available for income
taxes, debt service, capital expenditures, and other nonsite operating
expenses.
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HECLA MINING COMPANY
Consolidated Statements of Operations and Comprehensive Income (Loss)
(dollars and shares in thousands, except per share amounts - unaudited)
Second Quarter Ended Six Months Ended
----------------------------- -----------------------------
June 30, 1999 June 30, 1998 June 30, 1999 June 30, 1998
------------- ------------- ------------- -------------
Sales of products $ 46,058 $ 45,655 $ 87,716 $ 85,784
------------- ------------- ------------- -------------
Cost of sales and other direct
production costs 35,081 36,487 66,427 67,014
Depreciation, depletion and
amortization 5,892 5,048 11,944 10,174
------------- ------------- ------------- -------------
40,973 41,535 78,371 77,188
------------- ------------- ------------- -------------
Gross profit 5,085 4,120 9,345 8,596
------------- ------------- ------------- -------------
Other operating expenses:
General and administrative 1,802 2,136 3,813 4,277
Exploration 1,018 1,136 2,180 1,952
Depreciation and amortization 81 99 173 193
Provision for closed operations
and environmental matters 343 72 610 131
------------- ------------- ------------- -------------
3,244 3,443 6,776 6,553
------------- ------------- ------------- -------------
Income from operations 1,841 677 2,569 2,043
------------- ------------- ------------- -------------
Other income (expense):
Interest and other income 1,823 1,403 2,519 3,937
Miscellaneous expense (282) (94) (831) (651)
Gain on investments - - 1,155 - - 1,241
Interest expense:
Total interest cost (958) (865) (1,882) (1,605)
Less amount capitalized - - 317 - - 588
------------- ------------- ------------- -------------
583 1,916 (194) 3,510
------------- ------------- ------------- -------------
Income before income taxes
and cumulative effect of change in
accounting principle 2,424 2,593 2,375 5,553
Income tax benefit (provision) (89) 403 (154) 290
------------- ------------- ------------- -------------
Income before cumulative effect
of change in accounting principle 2,335 2,996 2,221 5,843
Cumulative effect of change
in accounting principle - - - - (1,385) - -
------------- ------------- ------------- -------------
Net income 2,335 2,996 836 5,843
Preferred stock dividends (2,013) (2,013) (4,025) (4,025)
------------- ------------- ------------- -------------
Income (loss) applicable to common
shareholders 322 983 (3,189) 1,818
------------- ------------- ------------- -------------
Other comprehensive income, net of tax:
Unrealized holding gains on securities 23 61 40 42
------------- ------------- ------------- -------------
Other comprehensive income 23 61 40 42
------------- ------------- ------------- -------------
Comprehensive income (loss) $ 345 $ 1,044 $ (3,149) $ 1,860
============= ============= ============= =============
Basic and diluted income (loss)
per common share before cumulative
effect of change in accounting principle $ 0.01 $ 0.02 $ (0.04) $ 0.03
Cumulative effect of change in
accounting principle - - - - (0.02) - -
------------- ------------- ------------- -------------
Basic and diluted income (loss) per
common share $ 0.01 $ 0.02 $ (0.06) $ 0.03
============= ============= ============= =============
Weighted average number of common
shares outstanding 60,687 55,102 57,944 55,098
============= ============= ============= =============
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HECLA MINING COMPANY
Consolidated Balance Sheets
(dollars and shares in thousands - unaudited)
June 30, 1999 Dec. 31, 1998
- -----------------------------------------------------------------------------------------
ASSETS
- -----------------------------------------------------------------------------------------
Current assets:
Cash and cash equivalents $ 11,831 $ 2,480
Accounts and notes receivable 36,117 25,919
Income tax refund receivable 16 1,087
Inventories 20,640 22,757
Other current assets 1,163 1,251
----------- -----------
Total current assets 69,767 53,494
Investments 2,173 3,406
Restricted investments 5,914 6,331
Properties, plants and equipment, net 197,604 178,168
Other noncurrent assets 11,178 10,663
----------- -----------
Total assets $ 286,636 $ 252,062
=========== ===========
- -----------------------------------------------------------------------------------------
LIABILITIES
- -----------------------------------------------------------------------------------------
Current liabilities:
Accounts payable and accrued expenses $ 17,021 $ 12,172
Accrued payroll and related benefits 3,501 2,852
Preferred stock dividends payable 2,013 2,012
Accrued taxes 941 772
Accrued reclamation and closure costs 6,912 6,537
----------- -----------
Total current liabilities 30,388 24,345
Deferred income taxes 300 300
Revolving bank debt 34,800 42,800
Project financing debt 10,500 - -
Subordinated bank debt and other long-term debt 3,203 123
Accrued reclamation and closure costs 20,407 23,216
Other noncurrent liabilities 10,107 9,542
----------- -----------
Total liabilities 109,705 100,326
----------- -----------
- -----------------------------------------------------------------------------------------
SHAREHOLDERS' EQUITY
- -----------------------------------------------------------------------------------------
Preferred stock 575 575
Common stock 16,687 13,792
Capital surplus 399,966 374,017
Accumulated deficit (233,682) (230,493)
Accumulated other comprehensive loss (5,229) (5,269)
Stock held by grantor trust (500) - -
Treasury stock (886) (886)
----------- -----------
Total shareholders' equity 176,931 151,736
----------- -----------
Total liabilities and shareholders' equity $ 286,636 $ 252,062
=========== ===========
Common shares outstanding at end of period 66,684 55,105
=========== ===========
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HECLA MINING COMPANY
Consolidated Statements of Cash Flows
(dollars in thousands - unaudited)
Six Months Ended
-----------------------------
June 30, 1999 June 30, 1998
- --------------------------------------------------------------------------------------------------
OPERATING ACTIVITIES
- --------------------------------------------------------------------------------------------------
Net income $ 836 $ 5,843
Noncash elements included in net income:
Depreciation, depletion and amortization 12,117 10,367
Cumulative effect of change in accounting principle 1,385 - -
Gain on disposition of properties, plants and equipment (1,347) (2,326)
Gain on investments - - (1,241)
Provision for reclamation and closure costs 463 287
Change in assets and liabilities net of effects from purchase of
Monarch Resources Investments Limited:
Accounts and notes receivable (9,214) (10,252)
Income tax refund receivable 1,071 (294)
Inventories 3,075 3,027
Other current and noncurrent assets (394) (1,605)
Accounts payable and accrued expenses 41 671
Accrued payroll and related benefits 649 907
Accrued taxes 169 163
Accrued reclamation and other noncurrent liabilities (2,421) (4,149)
----------- -----------
Net cash provided by operating activities 6,430 1,398
----------- -----------
- --------------------------------------------------------------------------------------------------
INVESTING ACTIVITIES
- --------------------------------------------------------------------------------------------------
Purchase of Monarch Resources Investments Limited,
net of cash acquired (9,183) - -
Additions to properties, plants and equipment (4,617) (10,437)
Proceeds from disposition of properties, plants and equipment 1,687 3,506
Proceeds from sale of investments 311 1,241
Decrease in restricted investments 417 719
Purchase of investments and change in cash surrender
value of life insurance 37 (641)
Other, net (43) 2
----------- -----------
Net cash used by investing activities (11,391) (5,610)
----------- -----------
- --------------------------------------------------------------------------------------------------
FINANCING ACTIVITIES
- --------------------------------------------------------------------------------------------------
Common stock issued under stock and stock option plans 20 54
Issuance of common stock, net of offering costs 11,860 - -
Dividends on preferred stock (4,025) (4,025)
Borrowings, net of repayments, against cash surrender
value of life insurance 925 - -
Borrowings on long-term debt 38,040 26,500
Repayment on long-term debt (32,508) (16,003)
----------- -----------
Net cash provided by financing activities 14,312 6,526
----------- -----------
Net increase in cash and cash equivalents 9,351 2,314
Cash and cash equivalents at beginning of period 2,480 3,794
----------- -----------
Cash and cash equivalents at end of period $ 11,831 $ 6,108
=========== ===========
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HECLA MINING COMPANY
Production Data
Second Quarter Ended Six Months Ended
---------------------------- ----------------------------
June 30, 1999 June 30, 1998 June 30, 1999 June 30, 1998
- ---------------------------------------------------------------------------------------------------------
LUCKY FRIDAY UNIT
- ---------------------------------------------------------------------------------------------------------
Tons of ore milled 85,522 57,754 157,132 114,976
Days of operation 77 64 153 127
Mining cost per ton $39.13 $47.88 $41.58 $44.64
Milling cost per ton $6.56 $8.37 $6.93 $8.38
Ore grade milled - Silver (oz./ton) 14.27 17.85 14.70 16.60
Silver produced (oz.) 1,137,420 981,281 2,158,697 1,817,411
Lead produced (tons) 7,061 6,881 13,298 13,576
Zinc produced (tons) 848 622 1,525 1,303
Average cost per ounce of silver produced:
Cash operating costs $4.93 $4.23 $4.94 $4.65
Total cash costs $4.93 $4.23 $4.94 $4.65
Total production costs $5.92 $5.05 $5.92 $5.53
- ---------------------------------------------------------------------------------------------------------
GREENS CREEK (Reflects Hecla's 29.73% share)
- ---------------------------------------------------------------------------------------------------------
Tons of ore milled 42,643 39,921 84,692 76,318
Days of operation 91 91 181 181
Mining cost per ton $30.59 $29.10 $30.76 $30.77
Milling cost per ton $20.84 $19.67 $20.94 $21.04
Ore grade milled - Silver (oz./ton) 25.36 21.34 23.53 21.86
Silver produced (oz.) 781,693 648,008 1,480,957 1,278,518
Gold produced (oz.) 5,733 4,385 12,721 8,378
Lead produced (tons) 1,897 1,667 3,938 3,079
Zinc produced (tons) 5,136 3,985 10,591 7,559
Average cost per ounce of silver produced:
Cash operating costs $2.04 $2.91 $1.96 $3.23
Total cash costs $2.04 $2.91 $1.96 $3.23
Total production costs $4.40 $5.28 $4.37 $5.55
- ---------------------------------------------------------------------------------------------------------
ROSEBUD UNIT (Reflects Hecla's 50% share)
- ---------------------------------------------------------------------------------------------------------
Tons of ore mined 35,529 44,381 71,128 83,876
Tons of ore milled 34,953 42,844 70,713 81,411
Days of operation 91 91 181 181
Mining cost per ton $35.31 $24.97 $33.63 $26.66
Milling cost per ton $16.56 $14.00 $16.48 $12.42
Ore grade milled - Gold (oz./ton) 0.542 0.379 0.506 0.412
Ore grade milled - Silver (oz./ton) 1.23 2.81 1.93 3.06
Gold produced (oz.) 17,463 15,702 33,280 32,291
Silver produced (oz.) 28,692 60,053 81,420 121,990
Average cost per ounce of gold produced:
Cash operating costs $147 $166 $146 $153
Total cash costs $164 $186 $163 $172
Total production costs $261 $284 $261 $271
(cont.)
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HECLA MINING COMPANY
Production Data (cont.)
Second Quarter Ended Six Months Ended
---------------------------- ----------------------------
June 30, 1999 June 30, 1998 June 30, 1999 June 30, 1998
- ---------------------------------------------------------------------------------------------------------
LA CHOYA UNIT (1)
- ---------------------------------------------------------------------------------------------------------
Tons of ore processed - - 101,903 - - 834,146
Days of operation - - 91 - - 181
Mining cost per ton - - $2.63 - - $1.69
Ore grade crushed - Gold (oz./ton) - - 0.014 - - 0.018
Gold produced (oz.) 2,898 9,953 8,461 23,360
Silver produced (oz.) 398 1,114 989 2,622
Average cost per ounce of gold produced:
Cash operating costs $260 $200 $213 $194
Total cash costs $260 $201 $213 $195
Total production costs $370 $203 $321 $195
- ---------------------------------------------------------------------------------------------------------
OTHER
- ---------------------------------------------------------------------------------------------------------
Gold produced (oz.) 178 1,362 529 2,927
Silver produced (oz.) 2 786 34 1,108
(1) The La Choya mine completed mining in December 1998.
CAPITAL EXPENDITURES
(dollars in thousands)
Six Months Ended
-----------------------------
June 30, 1999 June 30, 1998
------------- -------------
Lucky Friday $ 262 $ 4,375
Greens Creek (29.73%*) 1,301 1,349
Rosebud (50%*) 50 46
La Choya 3 1,986
Noche Buena 2,197 - -
Industrial minerals 771 2,069
Capitalized interest - - 588
Other 33 24
---------- ----------
Total Capitalized $ 4,617 $ 10,437
========== ==========
*Hecla's share
HEDGED POSITIONS
As of June 30, 1999
Silver: 1,200,000 ounces hedged @ average price of $5.51
Gold: 306,045 ounces hedged @ average price of $288.25
Lead: 6,000 tonnes hedged @ average price of $0.245 per pound
Zinc: 3,000 tonnes hedged @ average price of $0.495 per pound