While resumption of operations at the Lucky Friday Mine in Idaho and the purchase of the Casa Berardi mine in Quebec played significant roles in boosting Hecla’s metals production, the Greens Creek Mine continues as a solid foundation. The Southeast Alaska operation accounted for nearly 72 percent of Hecla’s silver production and 48 percent of the company’s gold production in 2013.

“During the fourth quarter Hecla achieved significant milestones with Greens Creek continuing its strong production, Lucky Friday back to normalized operations and Casa Berardi improving production and costs,” said Hecla President and CEO Phillips S. Baker, Jr.

Greens Creek Silver Mine - Alaska

The Greens Creek Mine produced 7.45 million ounces of silver, an increase of 16 percent over the 6.39 million ounces produced in 2012. Additionally, the Southeast Alaska operation produced 57,457 ounces of gold, 57,614 tons of zinc and 20,114 tons of lead last year.

After by-product credits, the cash cost to produce an ounce of silver at Greens Creek was US$5.15 in the fourth quarter of 2013 and US$4.42 for the full-year 2013, compared to US$3.45 and US$2.70 per silver ounce in the fourth quarter of 2012 and full-year 2012, respectively.

Hecla said the higher costs at Greens Creek in 2013 reflected higher silver production relative to by-product metal production.

The Greens Creek mill operated at an average of 2,206 tons per day in 2013, which is the highest daily average since the mine began operations in 1989.

Lucky Friday Silver Mine - Idaho

The Lucky Friday mine, which re-opened in February 2013 after 14 months of rehabilitation and enhancement, produced 1.46 million ounces of silver at a cash cost, after by-product credits, per silver ounce of US$13.59 in the fourth quarter and US$19.21 for the full year 2013.

The costs at Lucky Friday were higher than Hecla anticipated due in part to slower production ramp-up and severe winter weather in December preventing 10 days of production. The mill throughput rate averaged 827 tons per day in the fourth quarter.

Casa Berardi Gold Mine - Quebec

The Casa Berardi Mine produced 32,386 ounces of gold in the fourth quarter at a cash cost, after by-product credits, of US$824. Hecla has been steadily lowering cash costs at Casa Berardi since the company acquired the Quebec gold operation on June 1, 2013. Production costs at the mine were US$1,155 and US$1,067 per gold ounce, during the second and third quarters of 2013, respectively.

For the seven-month period under Hecla ownership, the mine produced gold at a cash cost, after by-product credits, per gold-ounce of US$951.

The increased gold production and lower costs during the year were due in part to the development of new, higher grade stopes in the 118 and 113 zones. The mill throughput rate averaged 1,974 tons per day in the fourth quarter.

2014 guidance

Hecla anticipates it will produce 9.5 million – 10 million ounces of silver and 180,000 ounces of gold in 2014.

“We look forward to strong, low-cost production from our three mines in 2014, remaining focused on reducing risk, increasing consistency of mine production and extending mine life,” said Baker.

Greens Creek is forecast to produce 6.5-7 million ounces of silver at a cost of US$6.00 an ounce, after by-product credits, during 2014. The mine is also expected to contribute 55,000 ounces to the company’s gold production this year.

Lucky Friday is projected to produce 3 million ounces of silver at US$9.00 per ounce, after by-product credits in 2014.

Gold production at Casa Berardi is expected to be 125,000 ounces at US$900 per ounce during 2014.

Hecla estimates it will invest US$150 million on capital expenditures and US$18 million on exploration this year.