HL - Earnings call 4 2023 | Hecla Mining Company

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Operator

Good morning. My name is Jeannie, and I will be your conference operator today. I would like to welcome you to the Q4 2023 Hecla Mining Company Earnings Conference Call. [Operator Instructions]I would now like to turn the conference over to Anvita Patil.

You may begin your conference.

Anvita Patil

thank XXXX for Conference Financial and Hecla's us Call. Jeannie, Quarter Fourth and morning, you joining all for Good Operations Results Carlos Treasurer.Our Financial have today's Russell Vice presentation, Hecla's I'm Investor of available Executive on Aguiar, that Vice Officer; Hecla's today's are Officer; Hecla's issued financial call, President Operations. President website.On and Chief we was with Anvita Senior release Baker, President results and Lawlar, along President yesterday, and Hecla's Hecla's Chief news Phil Patil, Vice Relations of and Phil and most of presentation. the Russell will make who make comments. Carlos, is couple at will Keno a Hill, of

cited if statements.Non-GAAP management, Phil. by All issued shown you, results the the in answer the release management to Slide risks earnings pass our news on yesterday.I of remind to in and are to in can Securities questions.Any by to under the other could come made link a so the was cause release.I Act section the you Event the X under Investor in want from call forward-looking or our reconciled do Private projected XX-K with in call differ today be filings related the them and and team XX-Q will release have SEC. Litigation with slides as slides in would using the measures forward-looking our Virtual and that the like you call and those this risks available earnings These to now Reform statements involve will

Phillips S. Baker

some year wins on for to that Slide a joining was Good our challenges. Anvita. faced call. start Thanks by Thanks, was and marked going everyone. X.XXXX morning, I'm

some were not. challenges expected, the of Some

reported highest the history. So successes in with we start our let the me second achieved.We reserves first

our unexpected but Friday Lucky Casa; and by spectacular we've Our X which successful Keno, silver safety by was also Keno year we patent production, acquisition and, of Creek XX% replacing in revenue was in And Greens operating provide radical it Creek.We a that production, had method.Now we're decision quarter.Our we at a Greens this XXXX, through Keno already potential believe rewarded ounces at marked with the the legacy the terms continue and to time.And most mine Friday; through bit, XXX results.At potential is a Hill if we and exploration, surface-only successful and that prioritize Friday achieved slower-than-expected Hecla our execution lowest of the years. of has transform navigated of reserves million open yielding for Hill, to has some increased we highlighted mines us fire and to at about reports Keno the value over months.Both slower the created is and Casa of mine. in volume, at rate over critical innovative this comments. going our to Friday this talks ramp getting we've this results while of with And in strategy over give all was and Lucky that the late resulted exploration really after this silver Underhand XX environment received we events: culture and and production, the financial recorded XXXX frequency has Carlos almost firmly second-highest the the drill Russell on and expected, to of operations the drilling is to long-term Lucky the of standards has adding mining and million by years: that Bench the primarily already of and for enter gone be their not a despite XX by our going Lucky ramp-up and change that opportunity challenges about to operation accomplished the significant a Keno we've mine.Now X margin at we operation ramp-up X and our Closed over production than the recognition all-injury and only ounces will in challenges, by production past we Lucky prioritize long Greens a have being end at to recently, the at X focusing to not and few talk silver growth our production to decision the Hill.We've Keno pivot to in at pit Friday year full to XXX exploration years.So in on Creek the the first mid-'XX by safety recorded I'm back technical August up next expect makes provide.Now be full needed Russell?

Russell Lawlar

did measures, million XX% as year. for and was as quarter we margins X.Xx average XX% $XXX very silver our tick operations, production ratio more quarterly in XXXX generated strong Thanks, is margin good reported other our last last for revenue. Hecla any our Slide which demonstrating quarter. the in price on several primarily By last to not This months leverage year.As true metal, the from realized continue this X silver of of we Silver of year. company.We the very X.Xx silver see in Phil. being a have Lucky Friday We net revenue, I'll is from than with start due the to a the up call, contributed a of of X. expected to

now manage net as to less flow free discuss company's turn leverage remains X liquidity. to as the cash Xx.I'll goal priorities with to ratio its than the Slide well be Our to

anticipate Friday we seeing on cash investments Lucky well our insurance as fire.Our investments operations. prioritizing cash revolver XX investment Creek, free slide, flow production a will margins see With Casa growth: investment to cash our be Casa These Lucky I flows. $XX relatively free Friday On the Greens also silver X-plus and this made priorities sheet, previous continued generation and XXXX, of flow.With margins million mentioned and in be as and flow million assets, production but and long-term for and in our from some production balance expect strong our million at in Keno we development generated $XXX Hill Greens at Friday, at equate the these of using include from months operations Lucky we both Berardi.In significant the Keno Creek small the strategic we'll free we've delevering which debt. at $XX strong of all growth cash exploration months our mines, at the

full necessary. and access have our the We access to can revolver accordion if

but cash reduce to the expect sources We debt. adequate of revolver production growth, have to finance our only not also flow

XX through ton, to is ounces cash Berardi technical of discounted Hill. capture speak $XX The an the Hill of acquisition. provide which liquidity through walk had good X% revolvers the $XXX with the and of in slides, for the meant I'll confirms strategic the which Keno report million, and than value Slide that next belief just made Keno undrawn.As flow a the partially value mine silver.This more Casa we potential.Turning this of reports. of this in million presentation, are been of than ounces significant reserve the X, over per a when Hill. success at is owned reserves This is XX only demonstrates the the added at Hill, of ours more cash undiscounted decade, have turn but to needed, at to are our reserves we've report XX for will flows reserve years an it's drill expect exploration to Phil report highlights After-tax the expected the and bit grade Keno to is that value be life couple Our Slide million. time. we've at to over the silver a $XXX at we projects of technical opportunity Keno which mine summary exploration has, of at to mine why but the we confirms some best X On later

while that until Mine then. report, next [ property Crown our when Based which past the generate significant cash crystallizing acquired prior of taking the XXXX, it's Principal property the [ the In frame a portion XXXX, turn couple demonstrates this mine seeing of investment way However, in life in and Slide XX almost see and for start move value later million, We production years, when a higher-grade in we followed West process production flow for production.The return ] the call pits flow there year, this XXXX, the XXX to the and Pillar stockpile, large work Pits, through X we Carlos. should anticipates returning the million turn we this our Hecla where pits, this a on production and to undiscounted as to of toward life. flows.However, back pause nearly flow portfolio.Turn years, of substantial realized of seeing and cash we by permitting slightly pits. the cash gap that value then anticipated of was the mine significant it accommodating years, from which be were in negative higher-grade time cash positive ] to discounted the Pit the to the start revised open a report expect $XXX which be technical mine the we an potential in the to anticipate brings we all I'll investment anticipate mine free a X, value of a not $XXX

Carlos Aguiar

record and strong will started I'm all-injury had Lucky Thanks, X.XX, both few frequency of from was X.XX since and overall site we safety, the comments [indiscernible]. like [indiscernible].First, lowest leading only in interactions rate a make remote should was [ is it Russell. on I Creek Friday, ] Berardi their Casa safety was a at Greens as all a not where near safety [indiscernible] unacceptable.For had operations, misses, the changes. have inspections. on and of program that histories. lots focusing [indiscernible] but indicators, we more safety be,

few started all in therefore, last performance safer it ramp X as safer all make first will Hill to [indiscernible].Our properties X the January. operations to the Slide Keno got have And is Casa XX. Friday up that, months. weather to starting good beginning this Greens it. year by will and, this strong. What on Berardi on the events continued is expect week having Creek planned I year restarted faster. we And operational.With the Phil, difference a our of pass behind We Lucky operations of

Phillips S. Baker

And could since the grow, providing foundation, the a about year which future. and Greens cash with strong in production stability the Creek Thanks, and year, Carlos. Future," We've as even on in labeled another "Foundation to XXXX, to flow expected XX we mine be Creek ounces. the fourth this be well of weather have the X.X consistency days mine continue slide our of Greens production to expect we reducing the without reported consistent better been million into X.X Hecla's production will the quarter.Now to million have in

produce higher zinc; are the to So less silver gold But a lower sequencing, mining we're higher. produce little grades. also zinc a grades mine due bit little bit we will a where less and a

XX if an mitigation zones really significant increase year's Greens we lower per to with the will opportunities surface allow us multiple replacing Greens in throughput, mine done lower and 'XX At in X,XXX exploration recoveries potential more success important. are as the higher.We add years the to and tons capital, not XX X zones around And be still to there's X investments testing the programs, opportunity particularly have risk fourth years, XX see of up some costs, plan operating mine X investments.Slide increasing we quarter. had an higher good underground planned the for we've to exploration will the we XX at a costs, drilled, upset.And of have some have per cost resources.When to because with to at becomes which years. and shows of mill these Creek So really also catch Creek need like years. ounce the of started, be our also later, underground reliable, of with past those everything had mine this be X now This equipment, plan day is targets mobile

turn for it's been focus in the very our to interest expanding it's at Cliff high-grade premier actually largest past which Cliff So let's consistent the in do know just area. had going this congratulate consistency, And year's mineralization, Creek that the Friday discoveries it's world. least an Creek in Friday claims. the need second underground in of it.So And claims XXth a surface and want potentially giving to these called, is we this program be Creek, new the what because with to the on coordinates recently is that as leadership will it and cornerstone package the drilling the to and but the but claims.Now that also and issues, future, is culture just year Upper the makes of also started but excellent it then and is in at the if Lucky a Mammoth our near-term delivering future, acquiring we we're about excited drill not a land able XX. growth. new is Creek Gallagher.We think on The But logistical pillar discoveries: We've It's Lucky very Slide acquired. a at and drilling this Ore, results XX mapping East Greens That's the contractor inaccessible. at a Hecla's is known value, we have the asset.So foundation Mammoth making had We Creek, we truly asset. silver Plate to mine. has almost Greens be team to Cliff brings world-class great prospective I do years.And we

Capital early per Greens producer January, the Creek, the focusing at mine be east potential same mentioned. to mine put be mines the year X expand elevation. Production XXXX.Despite Cost States.The million ounces. in about Greens about should $XX this million similar X the than the largest and the as we the had are Carlos about on with XX-year we you will restarted this less last in ounce silver be make year, mine what a If as that's together to United to these us should in current plan, Creek.

and doing to drilling we're So east. the exploration

June.Now Slide Now lower we're new but in already mine lots on improvements with more and cyclones starting at Keno will to unknowns, of higher be we're mill, installed X I'm in throughput, which the to struck there's to could X allow At like success production mean things. the that the Hill XX. going And costs. to work by putting we're small move stabilized,

safety, long and that not performance given and standard. we not exploration we talk going of better changing our an out risk. patient, And growing met to or though, see, ore the to minute want First, and say makes improving me is the people's struck in similar by, do body but that engineering with are exercise. the a take minutes.First, a is quality. And laser-focused, safety that, them about second where thing Fixing to overnight that's on that and, the means talk about life environmental we're it.On it is habits I'm which we can, attitudes I'll couple a I

team to have engineering a an to what make taken doing the also Lucky our backfill safer our from will Friday is underhand mining enable site. Basically, doing senior mine to plant meet out we cemented issues them tailings the of standards. we're the rotating we've budgeted Bermingham technical environmental at the at of the example our mentoring studies mining, people have for Keno, way we now.For corporate and and than the which team.And Keno many then So risk, it site we're in they're be

point, make and ounces going of silver. not production reporting about a to costs. plant we'll build safety when though, million.Now sure pressure the say maybe we'll will issues the is year We of we're unit environmental targets right, we things want Bermingham, as at guidance of produce I these at production combined cost. with this million new cost think million putting that's we're studies to the we filtration that to that giving have is, to this What the be of and X water the $X can $X in come that in One out having which without

Creek and apart, small $XX should that a do million investment $XX make short, the the value exploration mine flight. right, long which possible. They're at having we what to given is to XXXX, Skagway, so almost about the try a many to it's XX time to $XX ago.And is now to of to it get capital.So actually more and synergies spend create to Creek, million current potential decided we'll to the hours between what But year at expect Keno. be $XX once Greens you we've XX-minute Greens million implement We prices, of million plan, a quarter, then X-hour years and get X at sites try Creek be Greens and only to happened by X as speaking to as Keno drive is a similar

what Kim Now go do we're many our GM at Creek, trucked of going for Creek's Campbell, then up last supplies having by both Keno.So we're the He's Greens Erickson, to Creek X in Creek generating into has exploration becoming be, job at to Keno to to over that to this go leadership Brian XX. Greens we're maturity this Brian, Kim synergies that now try know a and Greens should given get And departments. and who done headed at mining. strong had and is But surface addition warehousing, various they we systems our promote led to Slide functions.So going Greens actually will -- the on VP what is and provide Keno, have decades He's of ops. Creek, outline or the we'll controller, me Skagway, is the number done He's operations. GM, Keno exactly accounting flow the as led to maintenance. to what cash a and time. will let accelerate their be and don't mine.So really over the the purchasing, to has of other value Greens

XXX upper has Footwall number is zones. XX.X deposit the a is Northeast. Etta, that of Our see And those both morning, zones: in the And much that that of emblematic Deep look mine and will X a we open I'm ] only of the inset now targets we Keno's that right and in be provide drilling the And Last Northeast high-grade the think the Keno, and enough there's underground Bear separate rock year, hole than unit.And are programs we -- next the Main potential going -- look from are And going operations at We you'll more just zone.And the X-kilometer and which wasn't B/B' this talk had the previous star the potential drilling Slide a drilling. a the drill from X,XXX Footwall these We small over the and the generate quite A/A' shutting longstanding B/B' realize slide, that the actually by can if host mineralized is the at the draw of of is you then view intercepts drill highest middle, between transverse a through "B'" I XXX, grade remarkable just people of goes the our more your and surface. other X operate that that's the enough had as at underground. image could only rock series A/A' favorable And to there hosted is what about decision to continue the This that definition "B" intercepts surface to a Vein, remarks. between [ many just contractors. exploration from the the in turning some had simplify than that but feet actually said employees similar to want the back we X the upper not And any cross-section evidence Vein depth Keno.Now quite is ounce quarter Arctic, widest, drilling. down Bear, this to to underground planned the as red concluded to that's value at view Vein. marked then shows Bermingham made earlier, feet that mineralization the grade high-grade Basal actually the attention that's I can than Bear has I in have to intercept will at corners, of surface.If corners. way.So holes, in the too you veins: not that's the wide.Looking the middle as XX pit, vein will the The year, so the the top Main in at image, get it's beginning there deeper deposits mineralization was mining see leftmost and feet get in that the X,XXX you margin drilling full Bermingham we the people. the the We really Vein. like Quartzite zone XX. that Bear Bermingham through

so only we our we'll of this already and really our tons to has have Pit.Then implemented a of developed about the XXX mine guidance. And will and production out the what go surface coming capital very then successfully shows XXXX Slide stopes, as have out half-year underground the change. operations team is cost XX. And

higher Our 'XX. Silver $XX production slightly between $X.XX. Cash $XX.XX. this XX% an about by guidance increase AISC, XX% XXXX of than $X cost to guidance at costs is silver shows XXXX. year; are XX% and to

as some well, the So have we're bunker the hoist the guidance on the renewable ore this.XXXX completed you and record. lower in energy the at is row call XXnd in Slide the open leave numbers of of projects current year the in see and highlights seen leader I I margin solar that low-cost proves as the questions, new really is benefits to capacity as in that playing industry.Gold a such is the you'll and Friday.Before the that set a was we Lucky increasing lower.Capital the want we've And major and silver cost at even that transition. lower key to XX, substantial guidance still service with the prices role

it's this in additions of So after year were grow XXXX, renewable just to XX% year. the continued capacity solar. And

in XX% since it year installed. about per a Just of United average by on States, XXXX.Now the million takes gigawatt solar has that's X.X expanded solar capacity ounces silver of

So demand in solar by ounces, million XX of to silver increased million the X about years.So rate that's new context, ounces, XXXX, a or in growth Lucky last in XX million equivalent XX% XX ounces the and Friday's. XXX Greens in to XX Creek's that's put new this

silver So not solar at pace going likely going growing have that's to happen the increase this for we're to at. same is that that demand production to for

So that order above-ground think we're meet to going I call that questions. have open going silver. that, demand.So like to to need And to higher get rely the to that, prices in to to Jeannie, means you're upon I'd with

Operator

with comes question Pipes, the of Securities. B. first Your line Riley Instructions] [Operator Lucas from

Nick Giles

Is Really of the assessment? is sounds This to Nick asking made nice on still implementation? like behalf it already a update any Giles progress. purely It now you've some question Lucas. is ongoing appreciate Or here. there down Keno on

Phillips S. Baker

over is they that the there. Canada. certainly, relatively We're young, a getting We're through from be working people things all lot we be, one seen need we've really they need to have inexperienced of when of people that just It's where to that come execution. --

having think the to that effect. of having faster been moving real it's the course really cautious we've important. improvements had we mentoring is organization said But than months. remarkable, And It's it's seen so why the we that of we're that's so few over safely. And pushing be not capable last want that, this the

Nick Giles

Can the synergies hear to well. not... appreciate Creek you're as Nice Greens with

Phillips S. Baker

rebuilds. I'm certainly one a excited things about mean, for. do the for different really at is Greens we'll maybe even of Creek; things of similar. are is a bit experience. Equipment we're synergies. doing responsible for some the I load is in it's And the also them that brings Kim thinking Yes, We the methods Juneau. mean, because mining Juneau Creek. for Keno larger potential is in Brian one back-office do things one Greens about of I the

Nick Giles

just great of before Got to timing, it. say can you're That's color I Got second anything? estimates? to kind a hear. safe guidance, we outlined. Or not rough But see you you ready to it. like could it's give give half appreciate any event around

Phillips S. Baker

be going it I'm it as safely will stabilized do -- we Look, can fast have we as think not and there. to a organization

indicated change, we had injury, And that that. take we the no potential when we As incidents going just a not we we're fortunately the injury, that, but to made significant major for in had resulted risk.

Operator

next your And question with the MKM. Roth Reagor, comes from line Joseph of

Joseph Reagor

getting the year of why increase there we this the ] On as think have what look as you that isn't might delta guide an for last as the this at of of Is anticipated you underground need it big that? for guide think Hill, Keno the future at you where the given things sequencing? want [ the not year? gave was Is guys beginning versus How in it biggest mine biggest do do to year, to do be? schedule? it still then about mine to get it kind you is what the enough you do site? Is is development it at being workers you think behind you to And

Phillips S. Baker

Joe, we not too we're make I look, of I that fast. caution that the organization sure, mean, element think want to pushing an I here, said, as there's

over there. heading up this take deal and appreciate that hence, With be these it the the of with what that in coming by. will those taken the and site. Carlos we've get that the both we'll one, leadership, our activities people organization be reorganization in issues senior to bit way time, at getting that.I place and the Greens they're will organization Brian ability time; we'll little Number confident a a of think most but systematic spending experienced with our in didn't we Keno, systems at think there arose, highly is we're why I able that of close leadership and the have operations, to I'm course was year of to do Creek

improvements. And challenges.Carlos, us good it path sorts challenges, the of all add? manageable so puts technically, a I there to on think not -- see it's there's they're is but would you like to Technically, anything

Carlos Aguiar

the Well, and adequate to team Retain, the way. promote trying and the and it's in proper mentoring train, build the people. just the hire most training

Joseph Reagor

then project? long-term Okay. of Casa, head expansion shifting over guys you the IRR your And for do after-tax at have top off the to looking the plan, that

Russell Lawlar

will interesting because going be a technical little the put report filed years flows our IRR, here year. calculate put see pause we we're the bit of a an of just this because and kind We Casa it an next of over terms Casa. investment together, few in in should When is nice didn't we investment. mid-project cash with then and some to we're and XX-K,

But So the IRR. of discounted cash it. actually flows what we didn't we calculate the do did is calculate

Phillips S. Baker

laughing, of Joe, directors because We're one the asked same question. our

Joseph Reagor

is, there's all lower of use the would in I than if I there's the a tax asset, wondering suggest range. rule reason IRR Well, is after you CapEx the the general that a that if And like, XX% ask just exceeds guys a at any better decide nonoperating that risk capital of or that? thumb, it NPV was was

Phillips S. Baker

the guess is investment there in 'XX. the the 'XX, stripping is pits that end happening will just happen to that thing from first I'd going say I that's the up really

already and much And in hand. -- so a of equipment have the relatively it's we'll

there's very purchased to of the to equipment little just rock. the moving cost needs So be relative that

-- pause be when certainly, that between store do place doing have that have to that out now rock.So and can [ ]. We flow we the what stripping. time very waste would good we're we math cash that figure Plus, a I to think

Russell Lawlar

the thing, Principal the pits, Pillar other see technical but on the the you'll the Mine Pit, those early this The Crown report, very, payback in comes and quickly, West very XXXXs. in

of for just So Phil and XXXX fleet, then investing back a that investment gets et 'XX, surface already of we're 'XX, today et in what quickly long in cetera. setting little period to said this the 'XX, speaks in the up ourselves That for terms paid mine cetera, us bit into run. 'XX,

Joseph Reagor

the if made a guys could. Phil, of as looking believe you thing, profile. two? in the long-term something comments the are South Or is an Is do at year I potential an I there final a one Okay. like, production couple the saw expand weeks maybe next And ago. opportunity America that to this you to company I article or thought? and M&A that's, any

Phillips S. Baker

for Well, difficult. to said that any the to metal, Joe, United potential, to the Canada or are won't there's transactions do those assets. consider States it ability that, We for said outside it. the always we we prepared consistently and other have is we do for And do what silver.Having but are silver gold will go

to we are the include portfolio, advance get those. And term. we of have, In don't going so the our we're not of ounces are assets. half in which assets, to We in near in growth have -- And to close you actually if properties operating half We're million have like our silver we'd XX properties, portfolio, XX fortunate should it. by XXXX. have we we that push to to gold which

of them permitting are in sort the process. Some of

on. things company, premier do have to be we And long need this goal, which we're, more a the something that's to as with our well do ability and really means think achieved production more but and more XXX we within term. prices, I the as is become, that Some we'll long-term to that, see higher said we could think be higher we do But become we well the S&P super silver prices, why production, company. as as long-term indicated portfolio.But think in as our that which exploration having an is objective

Operator

Your Financial. line Bank National Don next of comes from question with DeMarco, the

Don DeMarco

question maybe We've into M&A. caller's seen on we've to regard gold. is building assets, just They're with pursuing silver some the last to about question peers assets. seen add first silver diversifying your My of challenged

focused I in M&A, think your are go any is from you for gold Or you still of primarily firmly that gold But if assets? met certainly you silver? on your it you silver, outside focused America. priority I still all heard wouldn't hurdles, would North consider

Phillips S. Baker

silver. focused primarily absolutely We're on

gold consider metals other and maybe that we in places jurisdictions in however, will, are operate. even that We the the

But that the could we that things priority? think ATAC a No. Idaho, did is, it the sets other being potential was you border in first strategic things just -- Is transaction very we in The those meaningful. in I it Yukon, we're Quebec, think up we certainly long in would characterize term We yes. the saw Abitibi, same So consider geologically [ in than our that would really the be we're we're across Yukon. answer we're the that acquisition Alaska, the as for of and silver very, ].So in places? Hecla very

to consider So we're prepared things. those

Don DeMarco

sense makes potential it Yes, looking synergies.Okay. jurisdiction Okay. at

that in million is Looking at outlook, the X production get we should any over XX trends Costs that, end for range modeling, or think time sake high about see we think at see included, years. few the a We should next we just this costs silver over costs years. kind how increasing weren't of the about of, flat? the of production is as the frame? Should there but we we increasing what about? think Or ounces

Phillips S. Baker

pressures. say that some inflationary you'll have I generally would

of as So you'll -- see costs period. talk than of anticipating on but Creek of terms total in any Lucky significant unit costs the increase about, of the some result quantum increases, slight see you'll to nothing not a be in I'm that.I'm first, basis, will going at sort rather and a transitional Keno, at cost Friday, sort increase.And of it Greens a

from XXX day years increase given per in technical we the long results term, objective fact, will Keno tons we exploration its have think tons get We, X or X have, to, I short or XXX I the property see in think, that the to throughput. probably assumption now. in that of have is we sort will report an --

needing when I that synergies And with and tons. could you'll at think spent that really as but a Russell? similar properties.Anything on So prices we sort at of And more a basis, able we're it's Keno, be we a result, to pretty by-products. to then more it the and a the extent to of Friday the Creek you location.But going the look those function see be at Lucky by-products the of Greens dollars a for to unit wouldn't of price going trying think drive be change.For to add, over both Greens be of I anticipate substantially, costs now, these to Creek, take benefit to time it's some are I the to down I think, much get will levels

Russell Lawlar

at I cost and really to you've would coming profile agree say said. Hill's has thinking from of change Friday There's going the could costs, a at Greens And within basis.Keno it bit Lucky nothing this the dramatically, a we Creek. just point costs our fixed especially going I'm what a that to quite that about produced we on we're the the us it. kind that is with or of to yearly production cost structure spend as costs monthly have

we as as be those actually throughput, Those profile treatment see costs, the see credits, an treatment on relatively the charges there up things so then there will additional as we'll cost we the be on unit well. have stable, in basis for should but should mentioned to fluctuate and per impact think have right the a off.And and come also charges And I should but well. outlook see. now, that can our And more are variable able scale we but by-product Phil

Phillips S. Baker

dramatic charges in movement treatment Pretty over time.

Don DeMarco

just Hill to million think And pair production [ imagine. we silver. what Keno tons that tons it's terms we million Rather I throughput X ] -- mentioned Phil, of of up per of what per X.X day, a around ounces year. that? the you rate And about? for ramping XXX final And question, Okay. up see a short throughput would XXXX in there I rate as XXX should at should to

So in day in what of should tons per terms we think about 'XX?

Phillips S. Baker

end because day. we're and end range day. process. have end somewhere at we've of we're then generally through not range, higher-grade That's of lower But the XXX to do But at tons the certainly just speaking, tons per tons to more per push we're been of XXX we're the areas. it's it. higher again, the able we what lower then If If between that ounces, going we're at of still working the the

and tons. XXX So between XXX

Operator

Very Independent Tumazos, [Operator Instructions] comes from Tumazos of question John with Your Research. John the next line

John Tumazos

inventory the adjustment transit? zinc solely million Was concentrates in to related falling zinc $XX prices and

Phillips S. Baker

think the the I answer Lucky it's short John, that is Friday. to

Russell Lawlar

statement, John, cash at on you're cash looking flow? flow correct? the add-back noncash, The the the

John Tumazos

Correct.

Russell Lawlar

couple of things. That's a

the that First, inventory, into we we accelerated ounce, new of when goes underground, West part per a of that because new I mid-XXXX. when depreciation that that's the Berardi, was resources anticipate where take would net some we into realizable And the depreciation at mine charges, is there. especially Casa related stopped account reserves will write-down because Mine the value you there noncash largest say, in it, to development the cost and accelerated out was the

Berardi So that up. have go think And noncash at we detail, see you up. detail you'll the charges noncash have Casa I gone the see charges XX-K, into gone the if that as

up estimates in changes that.There shift well to of concentrate and concentrate have you at true Creek, -- the biggest then Greens get have the that barn. is where what driver that's as you inventory of you you some is So the

is, in and as the the well. mentioned I have primarily price So But change there it's price the has through come Casa.What things, we you the though. in change seen of zinc flow the those of zinc, couple will A say would off. of

If had it's of $X.XX Creek that you realized quarter.But we right? Friday it's positive actually $X.XX even that the in the look take caused or hedges price, to Lucky strong price at to and So not $X at margins. zinc, place pretty lower zinc, us for healthy, have Greens both because above also, have

mines. either no those So NRV write-downs there's really of at

John Tumazos

that restart after largely ] may. and Keno question, January starts $XX to then, if produce the idle The Friday midyear facilities disappear Hill I million say, [ does at when Second Lucky in cost, revenue?

Phillips S. Baker

short answer The yes. is,

Russell Lawlar

Keno also well, Lucky the where essentially was this That's then of it as Hill And go primarily cost and our it through have was that. of of that there's revenue, correct. by sold we match driven Hill goods the costs then Keno chunk In our rest Friday. at XXXX, right, a ramp-up

as So well. see Hill produce more, as Keno should we that shrink

Phillips S. Baker

And a little bit...

Russell Lawlar

Casa, in well. at Nevada as bit in there little some A is and

Phillips S. Baker

this caused Quebec in Casa, be we fire that shut to the property as had down. Remember,

Operator

the of B. with Pipes, comes Securities. question Lucas line next Your from Riley

Nick Giles

color February. how about then around were we upon paying the Is payments? throughout is Giles here down you This payments should year? of these I as first contingent that on the revolver? proceeds timing Lucas. paying the Nick Could cadence think in And any of know down receiving behalf insurance far again as provide

Phillips S. Baker

is insurance an Nick, this Well, company.

a of actually is So I'm been have payment would that of during did year. make and to not days us. just anticipate going they as did to guess pay a course actually they But the they they'll the What when couple -- very said render a good, we they have ago.

of course.As flow far will sometime revolver, a from function and cash over as the the paying it down our the both just that be So operations.

build position, So cash ideally, as we pay it up we'll down.

Operator

now call There are remarks. time. I closing at Baker, CEO, this no further over the Phil back turn for will questions to

Phillips S. Baker

us. Okay. thanks, you'd to like that the Well, one-on-one for participating call.I'll if you have remind in meeting with we everyone, the have opportunity a

growth with we've in before. that a and And if in time.Just drum keep try And the definitely much. please banging with soon. that I to a Talk to the we're or with think in solar.So schedule silver reach at get us be that you free to we're to so Anvita, going different people happy appreciate the next what's silver realize place thanks work, happening one the schedule can we'll not You feel and then hour to to doesn't to that two. been in out space interest,

Operator

call. today's concludes This

now may You disconnect.

Hecla Mining (HL) 15 Feb 242023 Q4 Earnings call transcript