Gold steadies as traders weigh outlook for Fed rate cuts
Bullion traded near $2,626 an ounce in thin trading after closing 1.1% higher on Friday.
The Lucky Friday silver mine in Idaho will return to full production this quarter, owner Hecla Mining reported on Monday.
According to the company, the silver mine ramp-up following a several-year-long strike of unionised workers is ahead of schedule.
Lucky Friday is forecast to produce more than three-million ounces of silver in 2021.
Hecla announced silver production of 3.5 million ounces in Q3, compared to 3,251,350 during the same period of 2019
The deep underground silver, lead, and zinc mine, located in the Coeur d’Alene Mining District of northern Idaho, has been in operation since 1942.
Hecla reported at the end of 2018 that the strike had cost the company $14.6 million.
The mine produced 636,389 ounces of silver in Q3, compared to 115,682 ounces in the third quarter of 2019.
At the Casa Berardi mine in Quebec, 26,405 ounces of gold were produced, compared to 36,547 ounces in the third quarter of 2019.
Hecla updated its 2020 guidance for silver to between 12.8-million and 13.4-million ounces at an all-in sustaining cost (AISC) of between $11.75/oz and $12.25/oz.
The miner would also produce 200,000 oz to 207,000 oz of gold, at an AISC of $1 300/oz to $1 350/oz.
Hecla announced silver production of 3.5 million ounces in Q3, compared to 3,251,350 during the same period of 2019, and gold production of 41,174 ounces, compared to 77,311 in Q3 2019.
Sales in the quarter totally $199.7 million, 24% more than the prior year quarter.
“Because of our strong operating performance and higher prices, Hecla had record adjusted EBITDA, generated the most free cash flow in a decade and repaid our revolver in full,” said Phillips S. Baker, Jr., Hecla president and CEO.
“With the Lucky Friday ramp-up ahead of schedule, the expected improvements at Casa Berardi, and our modest planned capital expenditures, we are well positioned to further strengthen our balance sheet, increase exploration activities, and pay our enhanced dividend.”
The company reported Q3 net income of $13.5-million, or $0.03 a share, compared with net loss of $19.7-million, or $0.04 a share, for the same period of 2019.
Comments
Mark Wagner
Hecla, well played.
It pays to stick to your guns.