During the three months that ended on June 30, the company produced 2.5 million ounces of silver at a cash cost, after by-product credits, per silver ounce of US$5.34.

Gold production of 43,554 ounces during the quarter is a 96 percent increase over the same period last year. This sharp increase is due to the Casa Berardi Mine in Quebec, which was purchased by Hecla at the beginning of June last year. 28,623 During the second quarter of this year Casa Berardi produced 28,623 ounces of gold at a cash cost, after by-product credits, of US$952 per ounce.

Hecla’s sales for the second quarter were US$117.5 million, 38 percent higher than Q2 2013. A full quarter of production from Casa Berardi gold mine, full production from the Lucky Friday and higher realized metals prices all attributed to the increased revenue.

Operating cash flow of $26.6 million is a US$27.7 million improvement over a loss posted for the second quarter of 2013.

“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 Hecla President and CEO Phillips S. Baker Jr.

Hecla’s average realized silver price in the second quarter was US$19.62 per ounce, 21 percent higher than the US16.27 price realized in the second quarter of 2013. The company also realized higher prices for gold (4 percent), lead (8 percent) and zinc (12 percent) compared to the second quarter of 2013.

“With the stronger zinc and lead prices, we now expect annual silver cash cost, after by-product credits to be about $5 per ounce, among the lowest in the industry,” Baker said.

Exploration and pre-development expenses across all of Hecla’s operations were US$3.1 million and US$400,000 respectively, in the second quarter of 2014, a decrease of roughly US$3.1 million and US$4.1 million versus the second quarter of 2013. Hecla said this drop in discretionary spending is in response to lower metals prices. Hecla anticipates investing US$18 million on exploration and pre-development at its projects during 2014.

Hecla had US$222 million in cash and cash equivalents at June 30, 2014.

Greens Creek

The Greens Creek Mine in Southeast Alaska continues to be the revenue generator for Hecla.

This operation produced 1.7 million ounces silver during the second quarter 2014 at a cash cost US$3.52 per ounce after by-product credits for the gold, zinc and lead also produced at there, compared to 2 million ounces at US$2.71 in the second quarter 2013.

Although silver production was lower, Hecla said it was within the expected range. The company anticipates the Southeast Alaska operation to produce 6.5-7.0 million ounces of silver at US$3.00 per ounce, after by-product credits.

“At Greens Creek, the consistent production profile and very low cash cost, after by-product credits, is the cornerstone for our cash generation,” Baker said.

Power costs at Greens Creek were lower during the second quarter of this year compared to last due to the availability of hydroelectric power, resulting in a 6 percent drop in milling costs.

Per ton mining costs, however, were 12 percent higher due to lower production and higher labor costs.

The mill operated at an average of 2,210 tons per day during the second quarter 2014.

Definition and pre-production drilling continued to upgrade the 5250, West Wall and Deep Southwest resources at Greens Creek.

Drilling of the Deep 200 South confirmed the resource model and shows the upper limb of the bench fold extends up to 150 feet east beyond the current model. Drilling of the bench mineralization provided some of the widest and highest grade intercepts in recent history at the mine, including: 85.1 ounces per ton silver, 0.18 oz/ton gold, 10.2 percent zinc, and 4.8 percent lead over 12.9 feet; and 44.3 oz/ton silver, 0.40 oz/ton gold, 23.1 percent zinc, and 12.4 percent lead over 3.2 feet.

The company said drill intersections at the Deep 200 South continue to be very encouraging and mineralization remains open to the south.