The mining newspaper for Alaska and Canada's North
The mining newspaper for Alaska and Canada's North
SE Alaska mine helps Hecla exceed annual silver expectations North of 60 Mining News – January 15, 2021
A semi-autonomous loader working at Hecla's Greens Creek Mine, which produced 10.5 million oz of silver during 2020.
Hecla attributes Greens Creek's preparation and response to a significant weather event at the end of 2020 to the excellent team at the Southeast Alaska silver mine.
Hecla Mining Company Jan. 13 reported that its Greens Creek Mine in Southeast Alaska produced 10.5 million ounces of silver in 2020, a 6% increase over the 9.9 million oz produced the prior year and the highest annual production since the Idaho-based company bought full ownership of the operation in 2008.
Greens Creek attributed 77% of the 13.5 million oz of silver produced at all of Hecla's operations during 2020. This helped to push companywide silver production well above the top end of the 11.1 million to 12.1 million annual silver production guidance set by the Idaho-based miner at the beginning of 2020.
"Despite the challenges of operating during the pandemic, 2020 marked a year of very strong operational performance with silver production significantly exceeding guidance," said Hecla Mining President and CEO Phillips Baker, Jr. "Our U.S. silver production was 15% higher than the year before and more than 50% higher than 2018, strengthening our position as the United States' largest silver producer."
In addition to silver, Hecla's five operations in the U.S., Canada, and Mexico produced 208,962 oz of gold, 126.2 million pounds of zinc, and 68.3 million lb of lead.
Greens Creek annual silver production may have been higher had it not been for historically high winds and heavy rains in Southeast Alaska that caused heavy damage in the area and communities where the mine is located. Even with this significant weather event, the mine produced 2.3 million oz of silver and 10,276 oz of gold, along with byproduct zinc and lead, during the third quarter.
"The preparation and response to this event is a testament to the excellent team at Greens Creek and their commitment to safety and the environment," said Baker.
Thanks to the better than predicted production at Greens Creek and the company's other operations, along with strong precious metals prices, Hecla ended the year with US$131 million in cash and did not draw on its revolving line of credit.
"The strong performance allowed Hecla to reduce net debt, increase dividends, and double exploration expenditures while more than doubling last year's cash position," said Baker. "At current prices, we could repeat these results in 2021."
Over his more than 16 years of covering mining and mineral exploration, Shane has become renowned for his ability to report on the sector in a way that is technically sound enough to inform industry insiders while being easy to understand by a wider audience.
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