U.S. REPORT Hecla boosts gold production

A substantial increase in gold production last year enabled Hecla Mining (NYSE) to report 1990 earnings of US$5.1 million, or US19 cents per share, compared with a loss of US$22.4 million in 1989. Hecla’s gold production for the year was 151,231 oz., which represents an 83% increase over 1989’s gold production of 82,586 oz.

The company attributed the production increase to the full-season operation of the Yellow Pine mine near McCall, Idaho, which turned out nearly 58,000 oz. gold last year. The company’s Republic mine in northeast Washington also performed well; the underground operation produced more than 81,000 oz. gold in 1990.

Along with the increase in gold production, Hecla attributed its improved 1990 financial performance to lower production costs at its silver operations, gains on the sale of some non-producing properties and certain nonrecurring 1989 writedowns.

Despite the lower production costs, Hecla’s silver properties were not profitable in 1990 because of weak silver prices which fell to US$4.82 in 1990 from US$5.50 in 1989. Hecla Mining (NYSE)* 3 months ended Dec. 31 1990 1989 Revenue $31,900 $25,300 Net earnings (loss) (1,974 (13,218) per share (0.07) (0.49) 12 months ended Dec. 31 Revenue $142,100 $101,700 Net earnings (loss) 5,131 (22,395) per share 0.19 (0.83)