Hecla Mining pany(HL)2022-11-09 19:39Financial Data and Key Metrics Changes - Third quarter revenues were 45 million from the prior quarter, primarily due to deferred silver shipments [29] - Free cash flow for the quarter was negative 98 million [32] Business Line Data and Key Metrics Changes - Greens Creek produced 2.5 million ounces of silver in Q3, a 2.5% increase from the previous quarter, with cash costs rising to 5.23 per ounce [16][18] - Casa Berardi produced just over 33,000 ounces of gold, with all-in sustaining costs increasing to $1,738 per ounce due to higher capital expenditures [21][22] Market Data and Key Metrics Changes - The company noted that inflationary pressures continued, with key input prices remaining elevated around 15% higher than at the beginning of the year [34] - The silver market saw increased demand from India, with imports reaching 200 million ounces in the first eight months of 2022, representing 20% of global demand [40][44] Company Strategy and Development Direction - The company aims to increase silver production to 17 million to 20 million ounces by 2024, positioning itself as the largest silver producer in the U.S. and Canada [10] - The acquisition of Alexco is expected to enhance development rates, with a focus on Keno Hill, which is anticipated to start production in 2023 [24][25] - The company is committed to maintaining a strong balance sheet while investing in capital programs across its mines [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in executing mining and development plans despite tight labor markets and inflationary pressures [35] - The company is focused on optimizing operations and maintaining cost guidance, even amid rising input costs [34][37] - Management highlighted the importance of recruiting skilled labor as a significant challenge for the industry [129] Other Important Information - The company reaffirmed its production and cost guidance while lowering capital guidance slightly for Casa Berardi [23] - The all injury frequency rate for the first nine months of the year was 1.32, 37% lower than the U.S. average [39] Q&A Session Summary Question: Any surprises since taking over Keno Hill? - Management noted no significant surprises, with positive reception from the workforce being a highlight [48][49] Question: Should we expect more or less CapEx deferral into 2023? - CapEx is expected to be deferred into 2023, with some projects being delayed for operational reasons [52][54] Question: Can you break out lead and zinc guidance for predictability? - Management acknowledged the request but noted it has not been asked in 20 years and will consider it [58] Question: Are inflationary pressures subsiding? - Management indicated that inflationary pressures are not subsiding yet, but they are focused on managing costs [68][71] Question: What are the current challenges for Hecla Mining? - The primary challenge is recruiting skilled labor, as the number of mining engineers graduating has significantly decreased [129]