Exhibit 1
FIRST QUARTER REPORT TO SHAREHOLDERS
For the Quarter Ending March 31, 1994
For Release: April 29, 1994
HECLA REPORTS FIRST QUARTER RESULTS
COEUR D'ALENE, Idaho -- Hecla Mining Company (HL &
HL-B:NYSE) reported a net loss Friday of $5.7 million on
revenue of $27.7 million for the first quarter of 1994. After
a $2 million dividend to preferred shareholders, the company's
loss for the 1994 quarter amounted to $7.7 million, or 19 cents
per common share. First quarter results were adversely
affected by approximately $2.2 million in nonrecurring merger-
related costs resulting from the acquisition of Equinox
Resources Ltd. completed in March 1994 and initial start-up
costs totaling $1.7 million at the new La Choya gold mine in
Mexico. The loss compares with $5.5 million, or 15 cents per
common share, for the same period in 1993.
Hecla's Chairman Arthur Brown said, "With expenses
related to the acquisition of Equinox and the start-up of La
Choya behind us, we expect improved earnings in the remainder
of 1994." Brown said he's also encouraged by a report that a
silver shortage exists which bodes well for future silver
prices. He noted, "New discoveries of silver ore at the Gold
Hunter and Greens Creek mines place Hecla in a position to
significantly expand its silver production in the future."
Brown added, "With production commencing this year at Hecla's
new La Choya and Grouse Creek gold operations, the company
expects to more than double its gold production."
In February, the company officially opened its first
operation outside the United States and Canada. The La Choya
gold mine is located approximately 30 miles south of the U.S.
border in the state of Sonora, Mexico. La Choya is an open
pit, heap leach mine with a carbon recovery plant. Exploration
activities at La Choya have expanded proven and probable
reserves to 6.7 million tons grading .037 ounce of gold per
ton, or 244,300 contained ounces. The new reserves have
extended the mine life from approximately 2-1/2 to four years.
Production at La Choya is expected to be 50,000 ounces of gold
in 1994. At full production, the mine is expected to produce
63,000 ounces of gold annually.
Contact Bill Booth, Manager -- Investor and Public Affairs
6500 Mineral Drive . Coeur d'Alene, Idaho 83814-8788
208/769-4100 . FAX 208/769-4159
Also in Mexico, Hecla opened a processing plant on
March 12 to produce ball clay and kaolin slurries. Hecla's K-T
Clay de Mexico S.A. de C.V. is located near Monterrey in the
state of Nuevo Leon. The facility represents a $6.9 million
capital investment for the company.
On March 11, 1994, Hecla completed its acquisition of
Equinox Resources Ltd. The key assets acquired are the Rosebud
gold project in Pershing County, Nevada, and a 47 percent
joint-venture interest in the American Girl gold mine in Impe-
rial County, California. As of December 31, 1993, the Rosebud
deposit contained 512,000 ounces of proven and probable gold
reserves and has significant exploration and development
potential. Hecla intends to develop the Rosebud gold project
upon satisfactory completion of a feasibility study which is
expected to be finalized by late-1995. Construction could
begin shortly thereafter, with production commencing as early
as the fourth quarter of 1996. The feasibility study will
assess the property's potential to produce between 70,000 and
80,000 ounces of gold annually.
Hecla's share of the 1994 production from the Ameri-
can Girl mine will be approximately 30,000 ounces of gold. The
mine has sufficient ore reserves to last until mid-1995, when
mining is expected to start at the adjacent Oro Cruz gold
project. Both are managed by MK Gold through a joint-venture
arrangement. The Equinox acquisition also brings Hecla nearly
30 other exploration projects, most of which are being explored
by joint-venture partners in the United States, Canada and
Bolivia.
Hecla Mining Company has its headquarters in Coeur
d'Alene, Idaho. During its 103-year history, Hecla has been a
leading U.S. producer of silver and lead, and more recently, a
significant supplier of gold and industrial minerals.
-HL-
Contact Bill Booth, Manager -- Investor and Public Affairs
(208) 769-4100
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RESULTS IN BRIEF
(dollars in thousands, First Quarter
except per-share amounts) _____________________________
1994 1993(1)
__________ __________
Total revenue $ 27,653 $ 23,930
Net loss (5,650) (5,458)
Loss applicable to common
shareholders (7,663) (5,458)
Loss per common share (0.19) (0.15)
Sale of products
Gold operations 7,858 7,379
Silver operations 2,585 4,091
Industrial minerals 15,165 11,826
Specialty metals 732 483
Total sales 26,340 23,779
Gross profit (loss)
Gold operations (136) 317
Silver operations (1,806) (2,792)
Industrial minerals 1,100 1,230
Specialty metals (109) (101)
Total gross profit (loss) (951) (1,346)
AVERAGE METAL PRICES
First Quarter
_____________________________
1994 1993
__________ __________
Gold (per ounce) $ 384.00 $ 329.00
Silver (per ounce) 5.29 3.66
Lead (per pound) 0.22 0.19
Zinc (per pound) 0.44 0.47
(1) Financial information and production data have been restated to
reflect the acquisition of Equinox Resources Ltd. accounted
for as a pooling of interests.
Contact Bill Booth, Manager -- Investor and Public Affairs
(208) 769-4100
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HECLA MINING COMPANY
SELECTED FINANCIAL INFORMATION
(in thousands, except per-share amounts)
Three Months Ended
_______________________________
Income Statement Data: March 31, 1994 March 31, 1993(1)
______________ ______________
Sales of products $ 26,340 $ 23,779
Gross profit (loss) (951) (1,346)
General & administrative 4,559 1,754
Exploration & research 2,108 1,174
Depreciation & amortization 182 126
Provision for closed opera-
tions & environmental
matters 240 187
Loss from operations (8,040) (4,587)
Other income (expense):
Interest and other income 1,314 151
Gain (loss) on sale of
investments 1,328 (69)
Miscellaneous income (expense) -- (5)
Interest expense:
Total interest cost (1,149) (1,543)
Less amount capitalized 965 665
Loss before income taxes (5,582) (5,388)
Income tax provision (68) (70)
Net loss (5,650) (5,458)
Dividends on preferred stock (2,013) --
Loss applicable to common
shareholders (7,663) (5,458)
Loss per common share (0.19) (0.15)
Weighted average number of
common shares outstanding 40,341 36,264
Common shares outstanding at
end of period 40,525 36,274
______________________________
Cash Flow Data:
Cash flow to operations (12,901) (2,302)
Cash, cash equivalents and
short-term investments at
end of period 55,826 4,736
______________________________
Contact Bill Booth, Manager -- Investor and Public Affairs
(208) 769-4100
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Selected Balance Sheet Data: March 31, 1994 Dec. 31, 1993(1)
______________ ______________
Total current assets $ 98,435 $ 103,531
Properties, plants and
equipment, net 226,311 229,055
Total assets 337,636 346,153
Working capital 77,474 81,223
Total current liabilities 20,961 22,308
Long-term debt 51,008 50,009
Total shareholders' equity 237,992 244,672
____________________________
Contact Bill Booth, Manager -- Investor and Public Affairs
(208) 769-4100
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PRODUCTION DATA
Three Months Ended
_______________________________
March 31, 1994 March 31, 1993(1)
______________ ______________
Republic Unit
Gold (oz.) 9,352 11,359
Silver (oz.) 64,881 58,373
Cash cost per oz. of gold $ 265 $ 225
Full cost per oz. of gold $ 329 $ 284
American Girl Unit
Gold (oz.) 7,343 9,369
Silver (oz.) 3,794 4,348
Cash cost per oz. of gold $ 327 $ 275
Full cost per oz. of gold $ 355 $ 364
Lucky Friday Unit
Silver (oz.) 459,187 663,559
Gold (oz.) 234 254
Lead (tons) 4,967 6,145
Zinc (tons) 777 1,447
Cash cost per oz. of silver $ 6.52 $ 4.30
Full cost per oz. of silver $ 7.79 $ 5.42
Greens Creek Unit
Silver (oz.) -- 429,860
Gold (oz.) -- 2,499
Lead (tons) -- 1,192
Zinc (tons) -- 3,171
Cash cost per oz. of silver -- $ 4.92
Full cost per oz. of silver -- $ 6.77
Other Units (Cactus and La Choya)
Gold (oz.) 2,884 1,421
Silver (oz.) 4,693 6,693
Total production and average costs
Silver (oz.) 532,555 1,162,833
Gold (oz.) 19,813 24,902
Lead (tons) 4,967 7,337
Zinc (tons) 777 4,618
Average cash cost per oz. of gold $ 373 $ 250
Average full cost per oz. of gold $ 422 $ 322
Average cash cost per oz. of silver $ 6.52 $ 4.54
Average full cost per oz. of silver $ 7.79 $ 5.95
Contact Bill Booth, Manager -- Investor and Public Affairs
(208) 769-4100
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