Hecla Mining Sees Silver Production Up, Gold Production Down in 2024 — Commodity Comment

By Adam L. Cataldo

Hecla Mining expects silver production to increase to between 16.5 million ounces and 17.5 million ounces as activity at the company’s Keno Hill site accelerates this year.
On projections for Keno Hill site:

“The Technical Report Summary projects an 11-year reserve mine life and life of mine silver production of 53 million ounces at an average grade of 26.6 ounces per ton. Five-year average silver production is expected to be 4.4 million ounces as throughput is expected to increase to 600 tpd in 2028. The mine’s after-tax NPV (5%) is estimated at $305 million at a silver price assumption of $22/oz,” the company said.
On Keno Hill production in 2024:
“Keno Hill is expected to produce 2.7-3.0 million ounces of silver in 2024 as the mine ramps up production. Expenditures on production costs, excluding depreciation, are expected to be $15-$17 million per quarter. The Company will provide guidance for cash costs and AISC per silver ounce, each after by-product credits, once the mine reaches commercial production which is expected during the year.”
On 2024 silver production:
“Consolidated silver production is expected to increase to 16.5-17.5 million ounces in 2024 and increase by 30% (compared to 2023) to 18.0-20.0 million ounces by 2026,” the company said.
“Greens Creek’s silver production is expected to decrease in 2024 due to expected lower silver mined grades attributable to mine sequencing, which is also expected to result in lower gold and higher zinc production. Lucky Friday’s silver production guidance is 5.0-5.3 million ounces, with the ramp up to full production expected to be complete in the first quarter. Silver production from Keno Hill is forecasted to be 2.7-3.0 million ounces as the mine ramps up production during the year.”
On 2024 gold production:
“Consolidated gold production is expected to decrease to 121-133 thousand ounces, primarily due to Casa Berardi as the mine transitions to a surface only operation during the year.”
Write to Adam Cataldo at adam.cataldo@wsj.com.