Video: Hecla cuts debt, eyes organic growth

Hecla Mining (NYSE: HL) has strengthened its balance sheet after a record second quarter, CEO Robert Krcmarov said.

The United States’ oldest public silver miner is to channel stronger cash generation into its mines while keeping deals on the back burner for now, he said last month during the Mining Forum Americas. Instead, the company is advancing stranded and brownfield projects in Nevada and the Yukon.

“We’ve considerably brought down our debt, but the priority now is to reinvest in the business and generate organic value,” Krcmarov told The Northern Miner’s Westen Editor, Henry Lazenby.

During the three months ended June 30, Hecla redeemed $212 million (C$151 million) of its 7.25% senior notes and repaid Investissement Québec borrowings out of free cash flow, while every site generated cash, Krcmarov said.

Casa Berardi in northwestern Quebec is expected to remain cash-positive this year as underground mining continues, the CEO said. In the Yukon, Keno Hill posted its first positive free-cash-flow quarter under Hecla ownership and is working toward profitability at a consistent throughput at 440 tonnes per day.

Hecla derived 41% of second-quarter revenue from silver, and Keno Hill, Greens Creek in Alaska and Lucky Friday in Idaho are set to anchor future growth. Lucky Friday is “positioned to have the best decade in its 80-year history,” according to Krcmarov.

Watch the full interview below: