Equity Alert on HL
Hecla Increases 2002 Production Estimates and Anticipates Lower Cash Costs
COEUR D'ALENE, Idaho, Jul 15, 2002 (BUSINESS WIRE) -- Hecla Mining Company (NYSE:HL) & (NYSE:HL-PrB) today increased its estimates of gold and silver production for 2002, based on the performance of its operating properties during the first half of the year.
Hecla now expects to produce approximately 215,000 ounces of gold and 8 million ounces of silver this year. This is a 10% increase from earlier gold production estimates and a 7% increase in anticipated silver production. Increased production and productivity, as well as continued impressive ore grades, have also led to lower cash costs of production. The average total cash cost for gold produced by Hecla this year is expected to be about $145 per ounce, and the average total cash cost for silver is estimated at under $2.60 per ounce. Earlier estimates for 2002 placed production at 195,000 ounces of gold at a total cash cost of under $150 per ounce and 7.5 million ounces of silver at a total cash cost of about $3 per ounce.
Hecla President Phillips Baker, Jr., said, "I'm extremely pleased to be able to report that good production results during the first half of the year have prompted us to raise our estimates of production and lower our estimates of costs for 2002. We are producing significantly more gold than a year ago, while becoming the premier low-cost silver producer. This is very good news. What we see here is a continuation of the company's turnaround story, and further confirmation of our ability to deliver performance as promised."
Estimates for 2002 production include approximately 150,000 ounces of gold from the La Camorra gold mine in Venezuela, about 3.2 million ounces of silver and 37,000 ounces of gold from the San Sebastian mine in Mexico, about 3.1 million ounces of silver and 28,000 ounces of gold from the Greens Creek mine in Alaska, and approximately 1.7 million ounces of silver from the Lucky Friday mine in northern Idaho.
FIRST HALF 2002 PRODUCTION
Hecla produced approximately 120,000 ounces of gold during the first half of 2002, compared to 86,152 ounces during the same period in 2001, which is nearly a 40% increase. The La Camorra mine was the major contributor to gold production, producing about 85,000 ounces during the first half of the year. In addition, the San Sebastian mine and the Greens Creek mine produced approximately 19,000 ounces of gold and 15,000 ounces of gold, respectively.
Hecla produced about 4.3 million ounces of silver during the first half of 2002, compared to production of 4.1 million ounces of silver in the same period last year. The Greens Creek mine provided nearly 1.7 million ounces of silver for Hecla's account during the first half of 2002, while San Sebastian contributed more than 1.6 million ounces. The Lucky Friday mine produced 1 million ounces of silver in the first half of 2002.
Hecla Mining Company, headquartered in Coeur d'Alene, Idaho, mines and processes silver and gold in the United States, Venezuela and Mexico. A 111-year-old company, Hecla has long been well known in the mining world and financial markets as a primary silver producer. Hecla's common and preferred shares are traded on the New York Stock Exchange under the symbols HL and HL-PrB.
Hecla's Home Page can be accessed on the Internet at: hecla-mining.com
Statements made which are not historical facts, such as anticipated payments, production, sales of assets, exploration results and plans, costs, prices or sales performance are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, and involve a number of risks and uncertainties that could cause actual results to differ materially from those projected, anticipated, expected or implied. These risks and uncertainties include, but are not limited to, metals price volatility, volatility of metals production, project development risks and ability to raise financing. Refer to the company's Form 10-Q and 10-K reports for a more detailed discussion of factors that may impact expected future results. The company undertakes no obligation and has no intention of updating forward-looking statements.
CONTACT: Hecla Mining Company, Coeur d'Alene
Vicki J. Veltkamp, 208/769-4144
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