Hecla Mining (HL) 10 May 222022 Q1 Earnings call transcript

Good day, and thank you for standing by. Welcome to Q1 2022 Hecla Mining Company Earnings Conference Call. [Operator Instructions]. I would now like to hand the conference over to your first speaker today, Anvita Patil. Please go ahead.

welcome, and operator, you, everyone. Thank joining Thank XXXX Hecla's Quarter for and you Operations for Financial Results First us Conference Call. I'm Investor Relations Vice President Hecla's Anvita and Patil, Treasurer. of

and with in was and could the Financial cause involve X in financial On team and website. Lauren our we Hecla's this Our release. and Roberts, projected release XX-K Baker, today Operating X and Hecla's call, results are to Securities Act call that Phil and news and morning, slides slides other Senior those under on risks non-GAAP of results differ with today's and along forward-looking that, President Reconciliations shown Chief today's With in have risks I Hecla's Vice These to on from or by Hecla's Private Lawlar, XX-Q Slides the presentation, measures Vice available SEC. issued in CEO; this made statements management release cited in pass our are Russell President Officer. earnings call Officer; and Litigation the forward-looking and filings come Chief the as news Phil. found the related Any President Reform statements. the will Senior

morning, and Thanks, Anvita. Good joining for everyone, thank our call. you

years. for XX X, some than time. is at risk the experiencing seen in world we the more haven't quite Looking events, Inflation Slide a combination which of highest is

workers supply pandemic. of continuing You disruptions, have course, the Russian skilled oil interest war, Ukrainian and chain rising $XXX-plus shortage of prices rates, the

weathered a XXXXs world Spanish is that and flu, embargo. has the these wars, that recession, As events, Depression we consider remember company the Hecla we the oil great XXX-year-old

reason ranks at namely have And in because navigate Fraser places. world, in today's jurisdictions are the is look times in all for first we provinces And in U.S. just navigate we perspective the at specific we and XX states the regions the and Canada. successfully. to them? in, in operate these best we The the And top if Institute we as the So investment. why of can not these you look challenges, we're them

We we're silver substantial in in minor a producing gold all and Quebec. silver mined, the the about XX% also the producer of are largest U.S.

in capital impacting Second, inflationary pressures are and cost everyone.

on However, normal mines and $XX Berardi as sustaining even of We'll large mostly equip are operations million more some decades as the slightly other not modest. pressure investing mines it. operating at material our of volume relative method are it see to optimize Friday, our and Lucky we We our consumers capital mature the at maybe investment capital capital costs, processes mines. our to than also new anticipate Casa growth mining due more to with of prior and

navigate the risk, later proactively successfully this costs can are call. However, and from we lead. managing And we believe the most in byproducts the revenues the Lauren to differentiator producers in our and of it. is important going are Hecla zinc silver other from probably we on touch But

be of appear inflationary producer by-product lead. zinc third revenue and credits the are We largest from offsetting United this to States The pressure. the

Third, in silver we best the operate the mines world.

lives ounce, mines have free conversion ounce, costs for sustaining silver quarter. XX% long cash our with low the per of all-in less that, than base so only reserve And doesn't where $XX in about exploration $X or Not more largest flow a was margin consolidated cost. per each is mine, again, our years, has potential. and very include generated the Our mine than States. the Fourth, resource very XX United that

look last our in X of X $XXX million back flow That's eighth I a last of cash -- but over Hecla's free In cash the fact, the years, flow consolidated year. cash when we've free is free generated positive generation. on basis, flow all over quarter consecutive quarters. X And this

strong culminated operational quarter, like the factors in With us flow for times. in us pass quarter allowing these cash Russell. to of shareholders and and All strong call of to financial positions to performance during a to our that, these return free I'd the XX%

Thank you, Phil.

Creek Slide and mentioned saw revenue, limited million, but X, like and XX% half Friday consistent and to we I'd to at $XXX.X at highlight from revenues spend. silver, XX%. the from zinc was lead Berardi at gold Casa XX%. while our Phil Turning capital, of XX% XX% and about our capital Lucky Greens had

remained capital free Friday. of cash We our flow at Moody's in $XXX payment Based semiannual Over spend bonds liquidity We the with and our ratio target than million ended million. capital generated flow million guidance cash available million million past $XXX $XX.X million averaged our these agencies. the metrics, million. This upgrades upgraded consistent $XXX from significantly below to to which the spending. of X.Xx, the and more B+. of we our $XX of us while operations performance, to BX interest after us years, at is from $XX quarter with remains upgraded leverage year, of credit strong investments financial Xx. due our rating of on on Lucky $XXX X Bolstered Hecla the saw cash S&P

after the green speak cash increased million. past XX% the With the is bars silver operations. growing, to million paying June the we is $XXX balance and The more fact X quarters, the silver I'll flow quarter portions X, cash it million get And margin the the that generated on margins allocation. on frequently averaged about price in about by free Slide the generation the over of with Since asked XXXX, bottom of $XXX we've and end flow. our in this chart quarterly $XXX has of our left realized. cash level margin. of to have Turning I capital our cash free dividends, And

and build expand or that, resource. then form of lower capital will the Our cost priorities dividends. return in derisk After to shareholders sheet that investments the the we are to balance fortress make mines, the a

seeing to industry pressures these in seeing is X. of Turning various costs. we Slide aspects others industry, on pressures. Everyone Like are in the inflationary our the

biggest For is of the small, are over at labor year. individually increased XX% total to has XX%. costs and key, us, past by but XX% increased XX% have that cost driver Other our production the

Over call the same the period, that costs revenues our base Lauren. our offsetting up unit metal I'll With largely to that, inflationary credits XX%, byproduct pressure. pass are to the

the we've in XX. combined and that favorable margin with in thing Slide Thanks, several ounce Creek will and was costs, world per among operating XXX,XXX a resulted has in capital silver on has exploration life quarter, ounces of is just and X ago, of quarters. ounce than produced the flow a The I At Friday years. all-in possible. the since mine in sustaining we million. to production. cash the generated mine $XX per stable free reserve XX the and which one cash like in production, result of years of in and billion The the of Russell. start $X.X The invest continue the mine years, cost Today, extend prior XXXX. just almost negative best grade very under This cost in ounces great to Lucky million mine margins. One I'd the the cash X.X highlight seen $X.XX increase ounce, flow it higher in life more mining $XX quarter, less than is had in startup, best in to $X.XX produced resulting was drilling margin, Greens is which QX silver jurisdictions slightly a free reserve per to of life. than definition during mine relating resides and Creek a is XX Greens the

Friday quarter chain anticipate of Production the sixth was of several where mine import plan consecutive late the of flow its delays. of marks equipment were of the achieved to pieces cash throughput the since quarter in impacted quarter by supply at because key executing pieces XXXX. delivered the These shipping free disruptions, mining This target fourth equipment to the generation Lucky in contractors was in additional fill open during be site schedules of thus positions, monitoring cost manpower, quarter. quarter. the are the and increasing of to are shortage and later by units year, necessitated We the receiving also delivery Friday Lucky the closely. the a commissioned we during use affected expected which on second

but gold, was these FXXX guidance. plant with production and hard which be ore positions just our mine the plan, shortages anticipated last the Berardi, are in the We underground ounces in within feeding the we to line resulted the in of cost should build over year, pit. from the At in pit more Casa the manpower open stronger of to produced working quarters XX,XXX come with

cash we cost over the underground, than of pit As higher cost the $X,XXX from per where the resulted annual the at and both grade the cost our at production, sustaining all-in ounce is lower guidance. than over higher open this in $X,XXX, saw

Looking full on to we out target forward, crews. underground staffing, are to and working underground. are close achieve rate to filling maintenance we the the production ranks to crews fill Development hard now continue work from the

to forward, are our profile. look the which free higher underground flow to continued aided planned return we by Notwithstanding challenges, during As cost gold quarter, anticipate we sourced was these generate which to mine tons from cash the the increasing mines the prices.

the supply to causes chain the navigate costs. more the which is susceptible which due inherently believe of disruptions, we general, at operation, risk being inflation Casa and Berardi be believe Berardi challenges successfully amount to mines we of by can affected. the Casa to simply we is is this Although In underlying it material input on processes, and most brought

Casa approximately and number volume about as X.Xx having For the Greens people. roughly processes ore volume the on-site comparison while Berardi Creek, the purposes, rock of of X.Xx of Xx mines

of do At as is believe which guidance we have cost experiencing but at pressure time, inflationary for return that, All this like labor. to would we Phil. With this incredibly these to challenges, an high anticipate the competition not skilled call can adjusted this operation. we I we navigate our in area

law. turn XXXth XX, States today is Thanks, Lauren. of if And to Slide anniversary United the the you'll mining

increase something And so I'm done. The and and to of or in understanding to little increased a to a in supply that need what energy the both transformation U.S. are than domestic policy minute really going supply needed war policymakers different U.S. talk we've pandemic just little eyes is on the first bit demand production a going the the for and take opened public to an Ukraine the silver. security. There a and X here of minerals chain national minerals of has towards I'm the do mining link the about

a used much minerals X security weapon the Angus need recognize saw Democrat. publicly the is Resources to stated, Ron the time as Democratic for process. Committee is senators Senator, think on in a career, foreign a Wyden to first stop the dependence permitting project. he's So at Senator I X my environmental stated, the reducing as improve on Natural it of King, as question, should national don't from issue process who's Maine an I be itself permitting

the expect that tide needed this in and in a subject minerals national mentioning clean for quick I'm in is Act the clean going invoked U.S. defense the are not Senate, I just President endangered Now the change just time. are this rise it's laws NEPA. mines economy. environmental the I'm to for water, are changes But Defense air, that And over there's Production Biden batteries not the expect because species because I these mentioning and because to,

has U.S. these investments so this qualify. and means to the will investigate we significantly will And Defense of industry that Department invest the mining funds in

mining and of the law the next to be skirt you're other news administration federal it's from administration allows days, rules standards was today on see the I to some expect appear laws mentioned. you'll is are not mineral aligned what over reason going see for increasing to news few Biden mentioning that law is of toward environmental land And completely and probably if is and about establish out this there, ground. establishing the production. mines because lives, Now mining tenure the the goal the doesn't already other that And this or purpose the about just that controls. old the environmental to the But the permitting I law.

doesn't. it clear, be to Just

fact, probably news legislative will House replace to will some the proposals. mining in the you new there to and And Senate proposals the in the with hearings law be in of in both So respect favor the regulations. see

a does Democratic energy the have the that and really on based keep So the resources security very the and ago, and green means mean? for silver, will has the is basically, who there It large Hecla largest and I to those a the -- future this a what in And is national to my moment Senate within the largest And House who that struggle past more mine U.S. going right And recognize consuming supplies. battle a said ground. the silver the the silver what to of graph transition prevail. get party reserve and security copper, minerals battle shows on the metals the mining. as metal fighting policies and see encourage needed sense, between national those recycling that is zinc I the is present the slide than on stronger are production for in and this desire already the and market will both

put years, And all in just or electric easy the To going for demand expected deficit the Creeks. again last U.S. has Energy over that the this is it next X.X XX be grow to that over demanded solar of for demand Agency uses. probably XX what for is decades, demand conceive the to it's is silver, doubled expects few X ounces. to over the so And the demand Information vehicle way ounces silver. even double year And about will the million that's context, for than In billion Greens currently to next to solar. the same faster half grow that XX

new miners on be to and there's build to encourage increase the pressure and price to So be will there encourage production. governments going mining mines to to to policies implement on rise pressure the

And so shareholders this to all in position benefit. Hecla puts its and great of

with so that, questions. to operator, to the I'd call And like open

[Operator Instructions].

Your first Heiko question Ihle Wainwright. from comes from HC

attribute spending at $XX.X inflationary Your We're to CapEx you and and million was million, Creek lower Casa. in obviously, Greens this $X environment. less quite

X times and your the several press in mentioned inflation it was mentioned call. release think times word I in you this

such savings, your you release? of do this that number you $X you're what how given inflationary cash curious, attribute with million a just is, in I did pressures I'm what save So asking guess in cost to? I'm about talking meaningful

X we Well, it's of in million. basically spend the $XXX the still amount a amount magnitude, it's capital we capital of doubled fourth roughly quarters expenditures. and timing of in just -- We same Order anticipate X. the then of have we'll just the the quarter. And

Creek unusual underspend we during we would line And first expect. is months, Heiko. to Greens quarter in We the months, the more summer is in it's located tend what this then not the where So with in capital. summer it's and remember have significantly

answer sense. makes that Now a of lot

Casa manpower was You by a that workers of competition talked lack and the BXB. about to constrained due available skilled of

of challenges I of you any second on You filling? you wage what abating that is would in QX, what And well. earlier Purely inflation? see yet you we're of with And out this of on most quarter? mentioned say call positions that some did the guess, all through that curiosity, building halfway have the as

particularly going you have abate? positions on any have you maintenance will to everywhere, and it difficulty what miners can't -- equipment. with of people it the Lauren, predict comments issues? do. -- labor Is it's and Well, I skilled positions,

what it then, that degree, think by is other to personnel. I to should by think secondarily metal for by that to we position trades. miners way followed of full, electricians trades. fill the the impact the skilled high and keep challenging technical It's far as with is trades, and most skilled we markets full some maintenance cycle and lesser refer seeing would for the we're a come demand biggest us, strong in And the of

what have Fair seen? wise, And answer. you just salary

can lot have that wages, of don't we I the shows what as do Well, that What inflationary as slide remember you A our see on slide. have? is, pressure. that we increasing on well, far

to go So 'XX we XX%. what of we to remain try spread QX as look did be by over of going see, of if 'XX, just amongst labor you QX mines, competitive. the at saw And frankly, about we that's up all

from question next comes Scotiabank. from Trevor Your Turnbull

you that I skilled were kind is the just of just any deliveries. kind -- about talking some question Phil, like relief back you're Lucky? you really Friday, equipment getting Heiko's of Will new enough saying was mentioned maintenance maintenance of new expecting Lauren offer equipment at some issues on of really at And on workers? there. Or Lucky the wondered it

the question, anything it's it had helps. but no that having to than just There's the pieces Yes, we're add? larger most certainly Lauren, their of in few for a equipment past we've in loaders delivered part. what

exactly Trevor. the says, They loaders had in that It's were method than gear loaders. spoke about we've are mine Phil parcel the and X units and that The new Yes. large what is question new what in we mining historically. larger part to

pretty I'm also ground are and some they We in the some to key happy on process and of mining planning reassembled the that to So more the being support commissioned. for were they method. year, of disassembled, have that coming units the report our and do

So you delivery. in well point new supporting maintenance. very raised But the to less addition that mining method, tracking a requires for far, they're reasonably good gear

it so relieve pressure of the on groups. some help maintenance should And to start the

you lot But got a of gear.

we have we that's a of it units, lot because cycle. numbers so relevant of are should gear. virtuous be Yes, gear point the we a a reducing add new total when And

Right.

And capacity therefore, over down of maybe some unit going yes, get of assume you more slowly per meet per more maintenance You're amount to I and availability time. unit. the pull could would

That the is plan.

more ask development And quick the a couple questions exploration then wanted to front. I of on just

Hatter one Graben. was at First

limits be perspective? and wondered things that's any something permitting a if pumping also have I from that or you about talked capacity to simply issues think discharge more You And about the can with inflows. water if handled have with just

down so ability do going to capacity, can the of end more that so permitting need year to to it's and we get us in just towards back us the dewater has get do drilling. slowed drivers, our the it to underground permitting. that That's exploration And We the the take there.

don't the at And you intersected get and to Okay. looking already, something at Is end you where deeper. Sebastian. to target when little of test hopefully, veins system, an of the results was talked wondered you want somewhere have some deeper think anyway, but worry a stick you have I we you drilling? that you've epithermal about the you of San do down some those I about entire Roca intact then we year? the La think may that might see by just that where

Yes, that. anticipate I would

of Your Pipes next from Securities. question Lucas comes B. Riley

Phil, about I ask Lucky wanted Friday. to also

XXXX? mentioned for You here mine the could share we will specifically on questions preceding been equipment pressures in the gains the kind some I view as the wondered with has and there, productivity out gains time. And productivity that into your be balanced at inflationary you productivity if how improving look and of but operation

mining Okay, mean I it as productive. and if guess Lauren. lack the don't don't historically I'll you stopes question, response sort with Lucas. have it of for just shut the immediate Lauren let seismicity the more I the that we about does think access. the and I we improve new to down to just time really seem just itself of have method is me of that But equipment -- an XX% been have --

going get? It's ends that's up, to be me. it good to it helpful. how clear So not can Where all

has, inflationary the of to opportunity But which lot a the there's pressure. optimize of what... guess, Lauren, offset think some to I I potential

delivering take at either mill. with to same The people mill. I opportunity more with way choice improve is because mill the to is we this, have far, fewer the gain capacity, amount or the we about should is economic delivering us they're think not fewer better Certainly. And in productivity, as think the for we or the a fill yet people by full this to ore more Lucas,

so is And the direction that we're moving.

we mill to XX consequently, that with the increase quite we the are volumes moved see mill. mill or And pressure Even the steady Casa in we're capacity. Berardi. feed Friday to material over increases the As of small. is increasing the we should safer so, increase productivity, the to And muted the months significant Lucky throughput fill until there inflationary compared coming, at next

So will -- will costs really, inflationary revenue the more. the costs increase revenue increase, while will -- is going

Much faster. more, much

should basis, And quite be on appearance -- inflation muted the a unit per inflation too. of

Correct.

it Certainly, relative would. to what

the still going outstrip of far increase So volume produced is and metal it have we're of mindful that. in But to that.

And from It's method I we're to successful, is of a still but opportunity mean lot successful, at before. else think It's mining this done it. but lot learning -- remember, a been been no just has method. ever that I optimize very been it very has one we've been years. that there's a the X.X there's it

only work older in Over for we We've of fit would which this year, next had we the equipment method. to gear smaller all the we're course the and with now in have the made the some ground, and as purpose. getting is desire that that for not it cases,

we're see can the what So bring. excited future to quite

on And important equipment, the you? there Or are pieces? fully other the deliveries, are behind those

to be to would $XX the capital about $XX equipment. order capital in we have going than a why Lucky is more in mentioned There's of typically whole the the spend I that what Friday at growth. -- this aggregate is million about -- is there's That's and of million No, series more.

-- kicking with that key the change pieces large coming. It's in were we're these more there's kind so And of the of equipment. X off equipment

the it's of to that time were us. a out And then ship. manufacturer incurred units manufacturer And nominated The and getting ship when very off home we facility. the the of getting what there plugged there. them was the ports according interesting a ship West was gave and delay ship move further have arrived up that right the units at the it it off kind happened nominated port Coast, was The to happened the ready schedule exactly And problem to completely delayed. the of them

major don't We X this ones of pressure X but of unusual equipment to more out pieces starting bit just do units year, think monitoring support I an And machines strange factories. confluence have same anomaly I was coming problems, see some those. we're of production are next the in think we'll delivery additional that time. sort a the shipping of for we and So about year. of of see some a

time consensus appreciate aisle. of level about to it Very would that your it remarks Switching prepared for Phil, bit that of in attitudes helpful. in where strategic and of and how too across talking some changing towards thoughts the Is the topics. spent the Hecla a early deploy detail. take capital, Really the into you outlook you more maybe U.S. mining appreciate that. I feed your you on deploy kind capital?

Well, encourages properties we United us it in that our have continue certainly to States. the explore at to various

are this some that I build solar seeing few people you're to are I'm -- environmental not suggesting it in farms of -- forward. just some clear, these put momentum over to the as going the years. King be to used, laws tomorrow, But the happening wanting think Senator place was so course think I to prevent said these I projects being that of but a And change learn And -- that sea are will of surprised it that are weaponized year. next

is environmental is permitting and the is it supportive an community there happened So Ukraine of the and is that it result inflection changes days. encouraging, point regime, and an said has now the starting and very real I me early war. as environmental a change, element is pandemic it what's that, very the but that very, it be to happening to and seems is of there's a the regulatory Having of because mentioned it

I days. today you here appreciate out going topic, that. coming in be mentioned to the coming or And something then either on there's that

the on that? was So what can you remind deal us

Yes.

again, is anniversary of the So the XXXX. mining law this of

result. the hearings that happening anticipate unlikely Senate a So there the the My that least will will has those in would I it days, on to X there the years news the White be And are today XXX you event hearings. potential at And in know anywhere. At both mining House House changes comment I been is be and on the law, is to is coverage there there that's go House, in place. in mining will an changes law. as

And it anticipate probably law. things I than a the mining that more important be thing people hear change that think environmental to you're will not longer be will I changes But happen laws changed. regulatorily, done be the mining to law. going so but is term, it the to would what there's suggesting rather will

So I investors occur. is have that to to it realize our wanted not likely

now on final us give My Montana American forward? short And for the term question in an and topic of to pipeline. projects these you supply Can the North the here procedurally the update happen on to in assets? move what projects needs

Yes.

the is the what was the this regulators, year with we recall and with So changed for did court. we course earlier not because hang up these it is projects

as forward to course that on. back is The if to push that can in And only modern an the Montana that that will get changed process have the to that, making the that's that, will while we've is can and try is can not the so a concluded the to done difficult path we exploration to permits could we've to a it that design We've for be was develop what through hydrology. so court the do a the get District just inherited exploration-only mining develop we inherited that, ideal that do permit. And better was that that realized we would all we is -- not you concluded can plan even it do take is if confirm as Monty What it the full be just well ago. years what into drilling could a the plan, XX of while had necessary actually likely mining where way that production. we we which really we environmentally mining then expiration that, plan be only prove able to Court we plan

that's that we're forest documents process the have service -- -- in all permit. to necessary So the the with developing the

And it's that. necessary the someone the achieve that's shortage to decade, have process we And this sort in in to going then the the they a -- the courts. of States, we're system XX-month United we'll would year, if of a than that's with minerals way seriously to over change deal the see to deal deal you'll maybe would that transformation. going in the with it minerals months what so then the environmental regime if to And of -- the with I see if next if And less course then the suit. it's And works of just we're maybe XX year do, we'd the brings with that, energy shortages that's anticipate closer in anticipate U.S. a for

So view it. that's my of

It's remarkable.

So work XX there's on for been permit so -- you've this been years.

an to XX Now after take you're exploration will another settling months and that... This for permit. year

gets in in that to minimal is -- have we think once that that Creek the wilderness the underground and national you're a and and actually underground, at and a recognition And we same Greens once there's quite fish area you're also realize the underground. us relates monument. what that issues It's that issues the environmental is are So it's impact exact bears.

XX have for been we subject years So Montana, the are all at the for Creek. dealing to projects successfully with challenges Greens the we last that in

the seems us well positioned really and the resistance. over least key we're think is to get underground, But final a be line underground path we this able the to the is once getting to get for we of So is -- permit.

from comes Capital Reagor question ROTH Joseph of Your next Partners.

this the biggest related of prior stuff has been want to on on inflation and and up But chain the supply let cash for costs let touched callers. to mine? in and you rest of at year, already concern that doesn't inflation mentioned I what's the is of of Casa by upside If the order chain supply issues your touch operating don't magnitude up issues Berardi. that as as costs far most So

generation, Lauren, the I therefore, more to would what to last to X can't quarters mine. is speculate might think you continue to at cash will And be. we're occur add? I suggest as year. the free production the anything But the of flow that we over what anticipating

add, Nothing to Phil.

of your costs some there further inflation? in Okay. to to are hedging And impacts any prevent there of out any then lock on opportunities

XX% that costs, When total I you what, of by labor. far, think about it's is cost. mean, the largely our

can't you that. So hedge

Yes.

As I at labor, XX%. at it's look

The X% XXXX, mines, fuel diesel silver see cost. lot but of well, employees. more, on diesel. to Casa tight but And look really do reduce huge don't You as see that such, were at quarter that. as just that's And that. those we that whole. contractors costs fact, we we'll a this on you -- the contractors especially really talked the would lot labor a than areas bit of We've are diesel. Creek as and a be to to or one mines. benefit in fall Greens because we plays not our already to about In as small a out the frankly, of these a whole you amount the more XXXX first to little the Berardi, a And markets, a called just see to will Slide say, be percentage don't of you'd hedged with tends of look item portion consume be that out #X,

that of remember power our Joe, generation So hydro. most is

power places, most for time we'll -- occasion, most the year, been last potential generating that hadn't but gosh, X, that's that. the but often site, the is years, For we're of there of periods very X it in Creek Greens over have at on

hard is hedging. to see it where we So can do really cost

in from managed confident the sure cash we revenue what the on zinc. done side flow to that we So and have is are generation have the make the lead we

of And we're even higher seeing. we the we prices so a the then that benefit of And realize that. hedge portion

inflationary we're the in offsetting revenue of in terms pretty pressure. good So the having shape

to thing from Casa do Berardi's we the add is would that perspective dollar. hedge Canadian the The only I

portion -- puts next benefit years XXXX, it of us have that so some direct capital production in as few past And anyways. well. over years, gives some the relates both to hedges we that going hedged spend the costs the that out we also and have a few we've but as consistency includes And least at

Okay. of picture. And big thing, then final one kind

next past the and where you it, there let's developers on acquire over could Are a the for guys made The have be potentially opportunities significant -- seeing year out You under call their any and share opportunistic now. you Hecla acquisitions. guys have in some prices pressure explorers mine? been

count be on Joe, far with unless that, a a as always of it's do are market. takes just in you, it will to there's lives mine gets We'll comes But on we're continue we'll M&A willing maybe other we are having sort in things so it out. And we I'll We something tango develop, engaged prefer to have tuned. go something to and where reluctant that see companies, unless that, would announced, decades. fortunate world. that because in And said few we tell X which that to transaction collaborative between the stay for basis, do you're hostile to do to that

have Lucky method. with from from Friday that's growth of on new and then productive We the growth grade the that occurring top higher

land but So because we to for feel market things, these we the potential stay find assets. long-lived we compelled positions in want the don't certainly large to acquire low-cost that have

get So to you engaged to keep those got things.

question John Research. Your Very next comes of Independent Tumazos from Tumazos

Phil, bent that the inflation And guys the if yet. seem in tightening Pennsylvania. a tightened to of saying And China look our at already even recession people year as Pittsburgh the on had CPI raising inflation. and lot our aren't in Washington I'm has were this as a be smart when guys that of rates Western hasn't transitory. That XX% evidence morning started. utilities was electric a I they newspaper hell the there's worried ago, in

you how for anyway, Phil, short gold guys can might go bad do too So up rates raise screw selling? XX, our they silver of your in much much and term. screw things How the in XX think months, if without up and Washington you

Do X You million have hold sell million and think silver you of it? million cannot you $XXX cash. or ounces of XX just

answer a store to have also produce -- because actually contracts a no, concentrate. we don't frame don't produce we We and silver we bar. concentrate. deliver. then short is obligated to place that the have We And So where we are

to So sell inclined Yes, no, you would you will that. selling could be not -- silver. not do -- It's we Could not conceivably, gold? that. we're do not I be conceivably

do, as probably what as we it, we will has we'll John, sell to produce. that an much So appeal

past. we suggest decline can you On rate. weather with we the be is, whatever is interest rates. a got high doesn't interest in higher know I'll because do, with you remember low events might than in high have so that and this I have But come other mean We and you metals you but significantly interest to just is the to to gold hand, And make better quite the certainly have price the prices. the what low got have cost, higher other past, thing silver be to seen happen, the seen you this rates together we've prices

for big do you gold roughly. average year we've is last I'm a I Why is think gold. do me $XX. last think having just from think, is up from or -- to know year, $XX.XX ETF silver hard year. understand. do silver you down? coming you grips on that this hard why time Phil, so had So that to the Why buys XX It's And down

this you demand is, higher that's make just at turn. to it things required either. I look to don't understand and I demand highs say, just silver. industrial what I going -- And when the given the energy for required this John, would is suggest that's but it

Phil. better. It's going to be worse than we agree, expect and I then

a a monetary phenomenon. phenomenon, partly inflation So is today structural partly Phil, but

interest else fertilizer than Maybe all the And be solve harvest case less, worried of is the with that's batten there's shortages sort I'm trying are really lower But chain the rates. down Fed short the in term? We a disruptions solved XX% is to prayers productivity. and go know. have productivity, that bad I with wars. God, and COVID other to farmers things If what rates could it's supply lower to can't to that don't time interest hatches and you do there's

I most on us you pull thing that's prudent mean to for look, what Well, do. us think expenditures. would is see back the I

do others I the to have don't ability we the guys have same Do don't know. you We have. have that pressures anything? because that

all mines lives we're these mine decades that, that operating that are I only comment to of ahead of it. have

will term, operate of these short terms things through environments. those in the So

some strong a balance to levers relates lots to have We as of cash, with pull it we sheet also and expenses. reducing have

kind So you about, road were gone this company frankly, has of bump past. the in the through in a that talking

producers. facilities. good terms condition And this John, the are -- spent very we last John, the year in is in infrastructure our of I now primary in those really and culminating this think our of equipment, several we've mines physical at spent Lauren. equipment fixed reinvesting years in and X

the outlay good, to we in And think if We've need capital so which for future we're pull us always it while so. years possible business our prudent, back do invested is is I was well but to positioned.

questions to remarks. further I There now back go Instructions]. Please [Operator for Baker this are will time. the no at turn Phil closing call sir. ahead,

I'll available. only is have slots say we thing The time these that do

parties. do conversation and executives want at one with to of being the we're So priding all investors ourselves to a if interested you Hecla, available and have

have you recollection, These So the my opportunity. time are what, yes. XX-minute slots,

you. available to are those So

questions day. answered. great so if more Have weren't very a some that have them please Thanks take of advantage And you much.

call. And participating. Thank this conference you, concludes today's everyone, for

disconnect. now may You