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Hecla Mining (HL) Shares Improve 6% Since Q1 Earnings Beat
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Shares of Hecla Mining Company (HL - Free Report) have gained 6.5% since it reported first-quarter 2024 results on May 8, 2024. HL reported adjusted earnings per share of 1 cent, which beat the Zacks Consensus Estimate of a loss of 2 cents. The bottom-line figure was in line with the year-ago quarter.
The first quarter marked a turning point for the company, with the Lucky Friday mine restarting production on Jan 9, 2024, after being suspended since August 2023 due to a fire incident. Throughout the quarter, the mine scaled up to full production, yielding 1.1 million ounces of silver. Strong performance at Greens Creek also contributed to the overall production figures. Backed by this solid start to the year, HL remains on track to achieve its production target for 2024. Including one-time items, the company reported a loss of 1 cent per share, flat with the prior-year quarter.
The company’s revenues decreased 5% year over year to around $189 million. The figure missed the Zacks Consensus Estimate of $190 million. Gains from higher realized prices for gold and silver were offset by lower sales volumes for both metals. While silver ounces sold decreased 3.4% year over year, gold ounces sold were down 19% from the year-ago quarter.
Hecla Mining Company Price, Consensus and EPS Surprise
The total cost of sales increased 3.5% year over year to $170.4 million. This was mainly driven by a 19% year-over-year increase in the consolidated silver total cost of sales to $108.2 million, attributed to the restart of operations at Lucky Friday.
Gross profit plunged 45% year over year to $19.2 million. The gross margin was 56.9% compared with 55.1% in the year-ago quarter.
The company reported exploration and pre-development expenses of $4.3 million. Exploration activities were mainly focused on underground definition and exploration drilling at Greens Creek, Keno Hill and Casa Berardi.
Hecla Mining reported cash costs per silver ounce and all-in sustaining costs per silver ounce of $4.78 (which marked a 123% surge year over year) and $13.10 (registering a 46% jump), respectively. The figures include costs of Greens Creek for the full quarter and those of Lucky Friday for February and March.
Adjusted EBITDA was $73 million, which marked a 17.9% increase from the first quarter of 2023. Adjusted EBITDA margin was 38.5% compared with 31% in the year-ago quarter.
Production Numbers
Hecla Mining produced 4.2 million ounces of silver in the first quarter. The silver production grew 3.7% year over year and 43% sequentially. The improvement reflects the consistent, strong performance at Greens Creek, the Lucky Friday mine reaching full production in March and the ongoing ramp-up at Keno Hill.
The gold production was 36,592 ounces, which was down 7.5% from the year-ago quarter levels and 1.5% lower on a sequential basis.
Cash Position
Hecla Mining ended the first quarter with $80.2 million of cash in hand, down from $106 million held at the end of 2023. Cash flow from operating activities was $17 million against $0.9 million in the first quarter of 2023.
Guidance
HL expects to produce silver of 16.5-17.5 million ounces in 2024. The company intends to take this up to 20 million ounces of silver by 2026.
Gold output is projected at 121,000-133,000 ounces for 2024. This translates to silver equivalent ounces between 40 million and 42.2 million.
On May 10, Hecla Mining announced that through its wholly-owned subsidiary, it has increased its stake in Cascadia Minerals Ltd to 17.4%. It has purchased 555,556 units of Cascadia Minerals with each unit consisting of one common share and one warrant.
Price Performance
Shares of Hecla Mining have gained 1.7% in the past year versus the industry's 29.1% growth.
Fortuna Silver Mines Inc. (FSM - Free Report) reported first-quarter adjusted earnings per share of 9 cents, which beat the Zacks Consensus Estimate of 3 cents. The bottom line marked an 80% surge year over year attributed to higher gold sales volume and improved gold prices.
Fortuna Silver’s revenues increased 28% year over year to $225 million. Gold equivalent production increased 19.6% to 112,543 ounces.
Pan American Silver Corp. (PAAS - Free Report) reported adjusted earnings per share of 1 cent for first-quarter 2024, which beat the Zacks Consensus Estimate of a loss of 6 cents per share. The figure marked a 90% plunge from adjusted earnings per share of 10 cents in the year-ago quarter mainly due to higher production costs and royalty charges.
Pan American Silver’s revenues surged 54% year over year to $601 million. This surge was primarily fueled by a higher volume of metal sold, attributable to the contribution of newly acquired mines (Jacobina, El Peñon, Minera Florida and Cerro Moro) obtained through the company's March 2023 acquisition of Yamana Gold Inc. The uptick in gold prices also aided revenue growth.
Avino Silver & Gold Mines Ltd. (ASM - Free Report) reported earnings per share of 2 cents for the first quarter, which marked a 100% improvement from 1 cent reported in the first quarter of 2023 attributed to higher gold prices and lower costs. The Zacks Consensus Estimate was for break-even earnings.
Avino Silver’s revenues rose 26% year over year to $12.4 million owing to higher gold and silver prices. The top line beat the Zacks Consensus Estimate of $11 million.
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Hecla Mining (HL) Shares Improve 6% Since Q1 Earnings Beat
Shares of Hecla Mining Company (HL - Free Report) have gained 6.5% since it reported first-quarter 2024 results on May 8, 2024. HL reported adjusted earnings per share of 1 cent, which beat the Zacks Consensus Estimate of a loss of 2 cents. The bottom-line figure was in line with the year-ago quarter.
The first quarter marked a turning point for the company, with the Lucky Friday mine restarting production on Jan 9, 2024, after being suspended since August 2023 due to a fire incident. Throughout the quarter, the mine scaled up to full production, yielding 1.1 million ounces of silver. Strong performance at Greens Creek also contributed to the overall production figures. Backed by this solid start to the year, HL remains on track to achieve its production target for 2024.
Including one-time items, the company reported a loss of 1 cent per share, flat with the prior-year quarter.
The company’s revenues decreased 5% year over year to around $189 million. The figure missed the Zacks Consensus Estimate of $190 million. Gains from higher realized prices for gold and silver were offset by lower sales volumes for both metals. While silver ounces sold decreased 3.4% year over year, gold ounces sold were down 19% from the year-ago quarter.
Hecla Mining Company Price, Consensus and EPS Surprise
Hecla Mining Company price-consensus-eps-surprise-chart | Hecla Mining Company Quote
The total cost of sales increased 3.5% year over year to $170.4 million. This was mainly driven by a 19% year-over-year increase in the consolidated silver total cost of sales to $108.2 million, attributed to the restart of operations at Lucky Friday.
Gross profit plunged 45% year over year to $19.2 million. The gross margin was 56.9% compared with 55.1% in the year-ago quarter.
The company reported exploration and pre-development expenses of $4.3 million. Exploration activities were mainly focused on underground definition and exploration drilling at Greens Creek, Keno Hill and Casa Berardi.
Hecla Mining reported cash costs per silver ounce and all-in sustaining costs per silver ounce of $4.78 (which marked a 123% surge year over year) and $13.10 (registering a 46% jump), respectively. The figures include costs of Greens Creek for the full quarter and those of Lucky Friday for February and March.
Adjusted EBITDA was $73 million, which marked a 17.9% increase from the first quarter of 2023. Adjusted EBITDA margin was 38.5% compared with 31% in the year-ago quarter.
Production Numbers
Hecla Mining produced 4.2 million ounces of silver in the first quarter. The silver production grew 3.7% year over year and 43% sequentially. The improvement reflects the consistent, strong performance at Greens Creek, the Lucky Friday mine reaching full production in March and the ongoing ramp-up at Keno Hill.
The gold production was 36,592 ounces, which was down 7.5% from the year-ago quarter levels and 1.5% lower on a sequential basis.
Cash Position
Hecla Mining ended the first quarter with $80.2 million of cash in hand, down from $106 million held at the end of 2023. Cash flow from operating activities was $17 million against $0.9 million in the first quarter of 2023.
Guidance
HL expects to produce silver of 16.5-17.5 million ounces in 2024. The company intends to take this up to 20 million ounces of silver by 2026.
Gold output is projected at 121,000-133,000 ounces for 2024. This translates to silver equivalent ounces between 40 million and 42.2 million.
On May 10, Hecla Mining announced that through its wholly-owned subsidiary, it has increased its stake in Cascadia Minerals Ltd to 17.4%. It has purchased 555,556 units of Cascadia Minerals with each unit consisting of one common share and one warrant.
Price Performance
Shares of Hecla Mining have gained 1.7% in the past year versus the industry's 29.1% growth.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Hecla Mining currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Silver Miners That Delivered Earnings Beat in Q1
Fortuna Silver Mines Inc. (FSM - Free Report) reported first-quarter adjusted earnings per share of 9 cents, which beat the Zacks Consensus Estimate of 3 cents. The bottom line marked an 80% surge year over year attributed to higher gold sales volume and improved gold prices.
Fortuna Silver’s revenues increased 28% year over year to $225 million. Gold equivalent production increased 19.6% to 112,543 ounces.
Pan American Silver Corp. (PAAS - Free Report) reported adjusted earnings per share of 1 cent for first-quarter 2024, which beat the Zacks Consensus Estimate of a loss of 6 cents per share. The figure marked a 90% plunge from adjusted earnings per share of 10 cents in the year-ago quarter mainly due to higher production costs and royalty charges.
Pan American Silver’s revenues surged 54% year over year to $601 million. This surge was primarily fueled by a higher volume of metal sold, attributable to the contribution of newly acquired mines (Jacobina, El Peñon, Minera Florida and Cerro Moro) obtained through the company's March 2023 acquisition of Yamana Gold Inc. The uptick in gold prices also aided revenue growth.
Avino Silver & Gold Mines Ltd. (ASM - Free Report) reported earnings per share of 2 cents for the first quarter, which marked a 100% improvement from 1 cent reported in the first quarter of 2023 attributed to higher gold prices and lower costs. The Zacks Consensus Estimate was for break-even earnings.
Avino Silver’s revenues rose 26% year over year to $12.4 million owing to higher gold and silver prices. The top line beat the Zacks Consensus Estimate of $11 million.