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[HECLA LOGO] Exhibit 13.1
HECLA REPORTS FIRST QUARTER RESULTS
For the Period Ended March 31, 1995
For release: May 3, 1995
COEUR D'ALENE, Idaho -- Hecla Mining Company (HL & HL-B:NYSE)
today reported a net loss for the first quarter of 1995 of $4.5 million, or 9
cents per common share, on revenue of $37.2 million. The loss is after the $2
million quarterly dividend payment to preferred shareholders. This compares to
a net loss of $7.7 million, or 19 cents per common share, on revenue of $27.7
million in the first quarter of 1994.
Improved results over the same period a year ago are partially
because the La Choya gold mine and the clay slurry plant in Mexico are now at
full production and contributing operating income. Both operations were in
start-up mode during the first quarter of 1994. Nonrecurring merger costs
reported in the first quarter of 1994, related to the acquisition of Equinox
Resources Limited, also contributed to improved results during the first quarter
of 1995. In addition, the Lucky Friday Unit had a decreased operating loss
compared to a year ago. Mining costs at the Lucky Friday were lower during the
first quarter of 1995 as the mine ramped back up to full production, after the
temporary suspension of operations resulting from the August 30, 1994, ore
conveyance accident. These improved results were partially offset by expenses
related to start-up at the Grouse Creek mine during the first quarter of 1995.
The new Grouse Creek mine, in which Hecla holds an 80% interest,
produced a total of 22,321 ounces of gold and 131,187 ounces of silver during
the first quarter of 1995. Costs at the mine were higher and production lower
than projected for the first quarter of 1995, due to a low ore feed to the
mill. An improved feed system is being installed, and full production levels
are anticipated during the second quarter.
The La Choya Unit produced 11,016 ounces of gold during the first
three months of 1995. Heavy rains during the quarter diluted gold recovery
from the leach pads, causing production to be about 25% lower than projected.
However, this shortfall is expected to be made up by year's end.
Hecla's industrial minerals segment continued to perform well,
with first quarter sales of $17.4 million, up 15% compared to the same period
last year. Increased sales of ball clay, kaolin and landscaping products are
due to improved construction markets, as well as greater penetration into that
market by Hecla's industrial minerals subsidiaries, Kentucky- Tennessee Clay
Company and Colorado Aggregate Company.
Ore reserve figures released during the first quarter of 1995 show
a substantial increase in Hecla's reserves compared to a year ago. Proven and
probable gold reserves were up 75% to 2.1 million contained ounces, with silver
reserves increasing from 50 million ounces to 76 million ounces, up 52%. The
1994 acquisition of the Rosebud project in Nevada increased gold reserves
significantly, as did the Greens Creek Unit in Alaska. Greens Creek also
provided the largest increase in silver reserves as definition drilling brought
the new southwest high-grade resource into the proven and probable category. At
the Grouse Creek Unit in central Idaho, Hecla's share of the overall proven and
probable reserve increased by nearly 56,000 contained ounces of gold and about
3.3 million ounces of silver. Although total tons and ounces were up, overall
grade of the Grouse Creek deposit declined because the underground high-grade
ore body proved to be smaller than originally estimated, and most of the new
reserves brought into the proven and probable category are lower-grade material.
Hecla's chief executive officer, Arthur Brown, said, "We have been
building operations over the past two years and expect to continue building for
the future. Although this takes considerable capital investment, we now have
La Choya, Grouse Creek and K-T Mexico up and running. We expect that continued
development at the Lucky Friday and the Rosebud gold project in Nevada, and the
likely reopening of the Greens Creek mine in Alaska will be additional
investments that will pay off in the future by increasing production and
lowering the cost to produce gold and silver."
Hecla is a 104-year-old mining company with operations in the
United States and Mexico. The company is a well-known silver producer with a
growing gold profile and a major supplier of ball clay, kaolin and feldspar.
The common and preferred shares of Hecla are traded on the New York Stock
Exchange under the symbol HL and HL-B, respectively.
-HL-
Contact Bill Booth, vice president-investor and public affairs, or Mike
Callahan, investor relations assistant
6500 Mineral Drive # Coeur d'Alene, Idaho 83814-8788 # 208/769-4100 # FAX
208/769-4159
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HECLA MINING COMPANY
(dollars in thousands, except per-share amounts - unaudited)
First Quarter
-----------------------
Mar. 31, Mar. 31,
HIGHLIGHTS 1995 1994
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FINANCIAL DATA
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Total revenue $ 37,153 $ 27,654
Gross loss (162) (951)
Net loss (2,464) (5,650)
Net loss applicable to common shareholders (4,476) (7,663)
Net loss per common share (0.09) (0.19)
Cash flow from operating properties (1) (821) (3,294)
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SALE OF PRODUCTS BY SEGMENT
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Gold operations $ 14,971 $ 7,858
Silver operations 2,427 2,585
Industrial minerals 17,402 15,165
Specialty metals 910 732
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Total sales $ 35,710 $ 26,340
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GROSS PROFIT (LOSS) BY SEGMENT
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Gold operations $ (1,609) $ (136)
Silver operations (161) (1,806)
Industrial minerals 1,604 1,100
Specialty metals 4 (109)
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Total gross loss $ (162) $ (951)
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PRODUCTION SUMMARY - TOTALS
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Gold - Ounces 38,984 19,813
Silver - Ounces 459,395 532,555
Lead - Tons 3,649 4,967
Zinc - Tons 585 777
Average cost per ounce of gold produced:
Cash production costs ($/oz.) 312 373
Full costs ($/oz.) 416 422
Average cost per ounce of silver produced:
Cash production costs ($/oz.) 4.74 6.52
Full costs ($/oz.) 6.00 7.79
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AVERAGE METAL PRICES
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Gold - Realized ($/oz.) 385 386
Gold - London Final ($/oz.) 379 384
Silver - Handy & Harman ($/oz.) 4.70 5.29
Lead - LME Cash (c./pound) 27.7 21.6
Zinc - LME Cash (c./pound) 48.5 43.9
(1)Consists of income (loss) from operating properties plus depreciation,
adjusted for changes in working capital.
Contact Bill Booth, vice president-investor and public affairs, or Mike
Callahan, investor relations assistant
6500 Mineral Drive # Coeur d'Alene, Idaho 83814-8788 # 208/769-4100 # FAX
208/769-4159
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HECLA MINING COMPANY
Consolidated Statements of Cash Flows
(In thousands - unaudited)
Quarter Ended
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Mar. 31, Mar. 31,
1995 1994
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OPERATING ACTIVITIES
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Net loss $(2,464) $ (5,650)
Noncash elements included in net loss:
Depreciation, depletion and amortization 5,725 2,802
Gain on disposition of properties, plants and equipment (265) (579)
Gain on sale of investments (121) (1,328)
Accretion of interest on long-term debt - - 999
Provision for reclamation and closure costs - - 123
Change in:
Accounts and notes receivable (5,029) (7,662)
Income tax refund receivable (2) - -
Inventories (185) 1,208
Other current assets (95) (219)
Accounts payable and accrued expenses (1,294) (1,803)
Accrued payroll and related benefits (630) 94
Accrued taxes 528 361
Accrued reclamation and other noncurrent liabilities 2,897 (263)
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Net cash used by operations (935) (11,917)
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INVESTING ACTIVITIES
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Additions to properties, plants and equipment (6,961) (11,510)
Proceeds from disposition of properties, plants and equipment 314 13,381
Proceeds from the sales and maturity of investments 126 30,470
Purchase of restricted investments (48) - -
Purchase of investments and increase in cash surrender value of
life insurance (195) (1,191)
Other, net (835) (2,634)
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Net cash provided (used) by investing activities (7,599) 28,516
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FINANCING ACTIVITIES
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Common stock issued under stock option plans - - 1,084
Proceeds from the exercise of stock warrants 1,208 - -
Dividends on preferred stock (2,012) (2,013)
Borrowings on long-term debt 11,000 - -
Repayments on long-term debt (3,884) - -
Decrease in deferred revenue - - 125
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Net cash provided (used) by financing activities 6,312 (804)
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Increase (decrease) in cash and cash equivalents (2,222) 15,795
Cash and cash equivalents at beginning of period 7,278 40,031
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Cash and cash equivalents at end of period $ 5,056 $ 55,826
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SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the quarter for:
Interest (net of amount capitalized) $ 47 $ 85
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Income tax payments (refunds), net - - $ 182
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Contact Bill Booth, vice president-investor and public affairs, or Mike
Callahan, investor relations assistant
6500 Mineral Drive # Coeur d'Alene, Idaho 83814-8788 # 208/769-4100 # FAX
208/769-4159
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HECLA MINING COMPANY
Consolidated Balance Sheets
(In thousands - unaudited)
Mar. 31, Dec. 31,
1995 1994
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ASSETS
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Current assets:
Cash and cash equivalents $ 5,056 $ 7,278
Accounts and notes receivable 28,545 23,516
Income tax refund receivable 249 247
Inventories 18,801 18,616
Other current assets 1,692 1,597
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Total current assets 54,343 51,254
Investments 5,828 6,476
Restricted investments 13,601 13,553
Properties, plants and equipment, net 257,814 257,908
Other noncurrent assets 5,767 5,391
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Total assets $337,353 $334,582
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LIABILITIES
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Current liabilities:
Accounts payable and accrued expenses $ 12,276 $ 13,570
Accrued payroll and related benefits 2,094 2,724
Preferred stock dividends payable 2,012 2,012
Accrued taxes 1,453 925
Accrued reclamation costs 4,272 4,254
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Total current liabilities 22,107 23,485
Deferred income taxes 359 359
Long-term debt 9,076 1,960
Accrued reclamation costs 29,238 27,162
Other noncurrent liabilities 4,901 4,098
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Total liabilities 65,681 57,064
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SHAREHOLDERS' EQUITY
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Preferred stock 575 575
Common stock 12,074 12,036
Capital surplus 330,165 328,995
Retained deficit (67,913) (63,437)
Net unrealized gain on investments 2,558 3,396
Foreign currency translation adjustment (4,899) (3,158)
Treasury stock (888) (889)
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Total shareholders' equity 271,672 277,518
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Total liabilities and shareholders' equity $337,353 $334,582
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Common shares outstanding at end of period 48,235 40,525
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Contact Bill Booth, vice president-investor and public affairs, or Mike
Callahan, investor relations assistant
6500 Mineral Drive # Coeur d'Alene, Idaho 83814-8788 # 208/769-4100 # FAX
208/769-4159
5
HECLA MINING COMPANY
Consolidated Statements of Operations
(In thousands, except per-share amounts - unaudited)
First Quarter
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Mar. 31, Mar. 31,
1995 1994
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Sales of products $35,710 $26,340
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Cost of sales and other direct production costs 30,230 24,671
Depreciation, depletion and amortization 5,642 2,620
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35,872 27,291
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Gross loss (162) (951)
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Other operating expenses:
General and administrative 2,330 4,559
Exploration 1,043 2,108
Depreciation and amortization 83 182
Provision for closed operations and environmental matters 56 240
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3,512 7,089
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Loss from operations (3,674) (8,040)
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Other income (expense):
Interest and other income 1,443 1,314
Miscellaneous income (expense) (197) - -
Gain on sale of investments 121 1,328
Interest expense:
Total interest cost (165) (1,149)
Less amount capitalized 58 965
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1,260 2,458
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Loss before income taxes (2,414) (5,582)
Income tax provision (50) (68)
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Net loss (2,464) (5,650)
Preferred stock dividends 2,012 2,013
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Net loss applicable to common shareholders $(4,476) $(7,663)
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Net loss per common share $ (0.09) $ (0.19)
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Weighted average number of common shares outstanding 48,107 40,341
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Contact Bill Booth, vice president-investor and public affairs, or Mike
Callahan, investor relations assistant
6500 Mineral Drive # Coeur d'Alene, Idaho 83814-8788 # 208/769-4100 # FAX
208/769-4159
6
HECLA MINING COMPANY
Production Data
First Quarter
-------------------------
Mar. 31, Mar. 31,
1995 1994
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LA CHOYA UNIT (1)
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Tons of ore crushed 578,435 191,602
Ore grade crushed 0.037 0.032
Gold produced (oz.) 11,016 1,086
Silver produced (oz.) 1,064 109
Average cost per ounce of gold produced:
Cash production costs $221 $1,810
Full cost $306 $1,942
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REPUBLIC UNIT
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Tons of ore milled 10,269 27,332
Ore grade milled - Gold (oz./ton) 0.13 0.40
Gold produced (oz.) 2,910 9,352
Silver produced (oz.) 15,058 64,881
Average cost per ounce of gold produced:
Cash production costs $194 $265
Full cost $194 $329
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AMERICAN GIRL UNIT (REFLECTS HECLA'S 47% SHARE)
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Tons of ore milled 19,873 29,205
Tons of ore to heap 200,266 88,847
Ore grade milled - Gold (oz./ton) 0.187 0.182
Ore grade to heap - Gold (oz./ton) 0.027 0.025
Gold produced (oz.) 5,527 7,343
Silver produced (oz.) 4,471 3,794
Average cost per ounce of gold produced:
Cash production costs $359 $327
Full cost $376 $355
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GROUSE CREEK (2) (REFLECTS HECLA'S 80% SHARE)
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Tons of ore milled 246,161
Ore grade milled - Gold (oz./ton) 0.070
Gold produced (oz.) 17,857
Silver produced (oz.) 104,950
Average cost per ounce of gold produced:
Cash production costs $382
Full cost $552
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LUCKY FRIDAY UNIT
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Tons of ore milled 32,340 42,806
Ore grade milled - Silver (oz./ton) 10.51 10.70
Silver produced (oz.) 333,066 459,187
Lead produced (short tons) 3,649 4,967
Average cost per ounce of silver produced:
Cash production costs $4.74 $6.52
Full cost $6.00 $7.79
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OTHER
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Gold produced (oz.) 1,674 2,032
Silver produced (oz.) 786 4,584
(1)Production at the La Choya Unit began during February 1994.
(2)Production at the Grouse Creek Unit began during December 1994.
Contact Bill Booth, vice president-investor and public affairs, or Mike
Callahan, investor relations assistant
6500 Mineral Drive # Coeur d'Alene, Idaho 83814-8788 # 208/769-4100 # FAX
208/769-4159