Hecla releases earnings report
Company's operating cash flow nears $27 million in second quarter
Posted: Friday, August 1, 2014 12:00 am | Updated: 12:03 am, Fri Aug 1, 2014.
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COEUR d'ALENE - Hecla Mining Co. announced a second-quarter net loss of $14.5 million, or 4 cents a share.
That compares with a net loss of $25 million, or 8 cents a share, for the same period a year ago for the Coeur d'Alene-based company.
"In the second quarter our stronger revenue and cash flow from operations were driven by production growth, particularly gold, and higher realized metal prices, especially zinc," said Phillips S. Baker Jr., Hecla's president and CEO, in a statement Thursday.
Two items primarily contributed to the quarter's lower earnings numbers.
First, the company recorded a net loss of $11.6 million because metals prices rose above locked-in base metals contracts, Mike Westerlund, a Hecla spokesman, told The Press Thursday.
The company locks in the price on a portion of its base metals, lead and zinc, before they are produced. Hecla doesn't lock prices on silver and gold.
Hecla enjoyed a net gain of $6.5 million because of base metals price hedging in the year-earlier period, when metals prices decreased.
The company also reported a $5.4 million foreign exchange loss in the second quarter of this year because of its ownership of the Casa Berardi gold mine in Quebec.
"It's the deferred income taxes that come along with that ownership," Westerlund said.
In the positive-news column, the company said its operating cash flow was $26.6 million, which was an increase of $27.7 million compared with the year-earlier quarter.
The operating cash flow was in negative territory a year ago because of the acquisition of Casa Berardi, with the one-time associated fees and costs, Westerlund said.
Operating cash flow for the second quarter also was affected by operations at Lucky Friday Mine near Mullan, he said.
Lucky Friday produced 217,000 ounces of silver in the second quarter of last year at a cash cost of $32.19 per ounce.
This year, Lucky Friday in the second quarter produced 821,000 ounces, at a cash cost of $9.10 per ounce.
Revenue for the quarter ended June 30 increased 38 percent compared with the year-earlier quarter. The revenue increase was due to the Casa Berardi, acquired on June 1, 2013, producing for the full quarter. Lucky Friday also was at full production, and higher metals prices contributed to the revenue growth.
Lucky Friday had its highest silver production in 10 quarters, Baker said.
The positive performance of Hecla's three mines - which also includes Greens Creek in Alaska - and rising metals prices enabled the company to end the quarter with $222 million of cash, Baker said.
The No. 4 shaft at Lucky Friday, a key growth project, has been excavated approximately 2,500 feet to below the 7,300-foot level.
The project is now more than 68 percent complete and is expected to be finished in the third quarter of 2016.
The total estimated cost to complete the project is expected to be approximately $215 million, with $148 million spent through the second quarter of this year.
Lundin says hold Great Panther
2014-07-30 16:33 ET - In the News
Brien Lundin, in the July, 2014, edition of the Gold Newsletter, says hold Great Panther Silver Corp., recently $1.51. Mr. Lundin said buy Great Panther 12 times between October, 2005, and June, 2014, at prices ranging from 21 cents to $2. Assuming a $1,000 investment for each of the 12 buys, the $12,000 position is now worth $22,450. The company recently released updated resource estimates for its Topia and San Ignacio silver-gold projects in Mexico. Topia now has 8.19 million silver-equivalent ounces in the measured and indicated category, and 8.56 million silver-equivalent ounces in the inferred category. At San Ignacio, the new estimate includes 1.25 million silver-equivalent ounces in the indicated category and 5.65 million silver-equivalent ounces in the inferred category. The newsletter editor says these estimates are a reminder that Great Panther still has a large inventory of silver and gold available to mine in the upcoming years. He concludes that if the precious metals markets continue to improve, he will change his hold recommendation back to a buy.
B2Gold exercises 10 million Calibre warrants
2014-07-29 15:47 ET - News Release
Mr. Clive Johnson reports
B2GOLD EXERCISES WARRANTS OF CALIBRE MINING CORP.
On July 25, 2014, B2Gold Corp. exercised 10 million common share purchase warrants and acquired an additional 10 million common shares of Calibre Mining Corp. at a price of five cents per share. The 10 million common shares represent approximately 5.32 per cent of the current issued and outstanding common shares of Calibre.
Prior to the exercise of the warrants, B2Gold had direct ownership of 20 million common shares of Calibre, representing approximately 10.64 per cent of the issued and outstanding common shares of Calibre, and warrants to acquire 10 million common shares of Calibre, which if exercised, and together with the 20 million common shares, would increase B2Gold's ownership to approximately 15.96 per cent of Calibre's outstanding common shares.
As a result of the exercise of the warrants, B2Gold owns 30 million common shares of Calibre, representing approximately 15.96 per cent of the current issued and outstanding common shares of Calibre.
B2Gold acquired the common shares for investment purposes, and has no present intention of acquiring other securities of Calibre or of disposing of any of the securities of Calibre which it holds. Depending upon B2Gold's evaluation of Calibre's business, prospects and financial condition, the market for Calibre's securities, general economic conditions, and other considerations, B2Gold may acquire other additional securities of Calibre or sell some or all of the securities it holds.
An early warning report in respect of the above-noted transaction will be filed and available on SEDAR.
B2Gold to release Q2 2014 results Aug. 14
2014-07-29 13:00 ET - News Release
Mr. Clive Johnson reports
SECOND QUARTER 2014 RESULTS CONFERENCE CALL
B2Gold Corp. will release its second-quarter results before the North American markets open on Thursday, Aug. 14, 2014.
B2Gold executives will host a conference call to discuss the results on Thursday, Aug. 14, 2014, at 10 a.m. PST/1 p.m. EST. You may access the call by dialling the operator at 416-340-2216 or toll-free 866-223-7781 prior to the scheduled start time, or you may listen to the call via webcast. A playback version of the call will be available for one week after the call at 905-694-9451 or toll-free 800-408-3053 (passcode 8304906).
Calibre holder B2Gold exercises 10 million warrants
2014-07-28 09:19 ET - News Release
See News Release (C-CXB) Calibre Mining Corp
Mr. Douglas Forster of Calibre reports
B2GOLD INCREASES OWNERSHIP IN CALIBRE MINING TO 15.2% BY EXERCISING WARRANTS
B2Gold Corp. has increased its equity ownership in Calibre Mining Corp. to approximately 15.2 per cent by exercising common share purchase warrants for proceeds to Calibre of $500,000. The warrants entitled B2Gold to purchase 10 million Calibre common shares at a price of five cents per share (see Calibre news release dated April 29, 2014). The proceeds of the warrant exercise will be used to advance Calibre's 100-per-cent-owned Montes de Oro gold project, Nicaragua, as well as for general working capital. At the Montes de Oro gold project, trenching has intersected significant widths of gold mineralization, including 52.3 metres grading 7.1 grams per tonne Au (MTR13-009) and 27.5 metres grading 4.94 g/t Au (MTR13-017), located within a 400-metre-by-650-metre gold-in-soil anomaly (see Calibre news release dated Sept. 19, 2013).
Douglas Forster, chairman of Calibre, stated: "We are very pleased to have Nicaragua's largest gold producer, B2Gold, increase its equity ownership in Calibre to 15.2 per cent. The additional funds will allow Calibre to advance our 100-per-cent-owned Montes de Oro gold project, while our joint venture partner B2Gold continues the trenching program at the Minnesota gold project, and our option partner Iamgold Corp. continues the 3,400-metre diamond drilling program at the Eastern Borosi gold project."
The technical content in this news release was read and approved by Gregory Smith, PGeo, president and chief executive officer of the company, who is the qualified person as defined by National Instrument 43-101.