HL - Hecla Mining: Lower Production Across The Board In Q1

2024-05-06 10:36:22 ET

Summary

• Hecla Mining saw lower YoY production at all assets in Q1 except its new Keno Hill Mine, which was prioritizing development in the year-ago period.
• Meanwhile, although silver has soared to start Q2, we won't see this benefit in the Q1 results with lower zinc prices & silver/gold averaging ~$23.50 & $2,070/oz in Q1.
• In this update, we'll dig into its preliminary Q1 results, what's in store for its Q1 report and the remainder of 2024, and see how its valuation stacks up.

The Q1 Earnings Season for the Silver Miners Index ( SIL ) is underway and Hecla Mining ( HL ) will report its results later this week. Judging by the company's pre-released production numbers in April, the quarter might not be as strong as some might have hoped, with lower production across the board, including fewer ounces at its highest-margin Greens Creek Mine in Alaska. And while Greens Creek production slid sharply from Q1 2023 levels to just ~2.48 million ounces, production is expected to decline further as the year progresses as implied by its guidance midpoint. In this update, we'll dig into its preliminary Q1 results, what's in store for its upcoming Q1 report and the remainder of 2024, and see how its valuation stacks up vs. other Tier-1 jurisdiction producers:

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