Hecla Mining Company (HL) swung to a net profit for the quarter ended Dec. 31, 2016. The company has made a net profit of $20.26 million, or $ 0.05 a share in the quarter, against a net loss of $62.96 million, or $0.17 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $11.16 million, or $0.03 a share compared with $8.33 million or $0.02 a share, a year ago.
Revenue during the quarter surged 42.40 percent to $164.24 million from $115.34 million in the previous year period. Gross margin for the quarter expanded 1634 basis points over the previous year period to 26.51 percent. Operating margin for the quarter period stood at positive 13.10 percent as compared to a negative 1.77 percent for the previous year period.
Operating income for the quarter was $21.52 million, compared with an operating loss of $2.05 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $65.10 million compared with $34.49 million in the prior year period. At the same time, adjusted EBITDA margin improved 973 basis points in the quarter to 39.64 percent from 29.91 percent in the last year period.
"We finished 2016 strongly, with record silver and silver equivalent production for the year and robust performance at all our mines driving record sales, strong net income and more than doubling adjusted EBITDA over last year," said Phillips S. Baker, Jr., Hecla's president and chief executive officer. "And despite using one of the most conservative price assumptions in the industry, we almost completely replaced the silver reserves that were mined, a very satisfying achievement considering our record silver production levels and lowest exploration budget since 2009."
Operating cash flow improves significantly
Hecla Mining Company has generated cash of $225.33 million from operating activities during the year, up 111.68 percent or $118.88 million, when compared with the last year.
The company has spent $198.66 million cash to meet investing activities during the year as against cash outgo of $138.61 million in the last year. It has incurred net capital expenditure of $164.44 million on net basis during the year, up 20.15 percent or $27.58 million from year ago.
The company has spent $12.02 million cash to carry out financing activities during the year as against cash outgo of $17.14 million in the last year period.
Cash and cash equivalents stood at $169.78 million as on Dec. 31, 2016, up 9.39 percent or $14.57 million from $155.21 million on Dec. 31, 2015.
Working capital increases
Hecla Mining Company has recorded an increase in the working capital over the last year. It stood at $175.90 million as at Dec. 31, 2016, up 23.49 percent or $33.45 million from $142.45 million on Dec. 31, 2015. Current ratio was at 2.38 as on Dec. 31, 2016, up from 2.12 on Dec. 31, 2015.
Debt comes down marginally
Hecla Mining Company has recorded a decline in total debt over the last one year. It stood at $512.94 million as on Dec. 31, 2016, down 1.45 percent or $7.56 million from $520.50 million on Dec. 31, 2015. Total debt was 21.63 percent of total assets as on Dec. 31, 2016, compared with 23.43 percent on Dec. 31, 2015. Debt to equity ratio was at 0.35 as on Dec. 31, 2016, down from 0.39 as on Dec. 31, 2015.
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