Hecla Mining Company, a leading producer of silver and gold, recently reported that its silver reserves have reached the second-highest level in the company’s 130-year history. The company noted that silver production from its mines increased significantly in 2019, with total proven and probable silver reserves reaching over 9 million ounces. In addition to the increase in silver reserves, Hecla reported that its gold reserves also rose, totaling over 5 million ounces.
This marks the first time that the company has held gold reserves over 5 million ounces in its history. Hecla attributed the increase in reserves to its ongoing exploration and development efforts. During 2019, the company invested over $64 million in capital expenditures, which included the acquisition of the San Sebastian silver-gold mine in Mexico. The acquisition of San Sebastian added over 2 million ounces of silver to Hecla’s reserves. Hecla’s CEO, Phillips S. Baker Jr., stated that the company is well-positioned to maintain its strong production profile in the years to come.
He noted that the company’s strong balance sheet and strong cash flow will help support the continued investment in exploration and development activities. The increase in reserves is good news for Hecla, as it implies that the company will be able to continue producing silver and gold at a consistent and profitable rate. Additionally, the higher reserves will help to ensure that the company can meet future demand for silver and gold, which could help to drive the price of these metals higher.
