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Hecla Mining (HL)

Participants
Mike Westerlund Vice President of Investor Relations
Phillips Baker President and Chief Executive Officer
Lindsay Hall Chief Financial Officer
Lauren Roberts Chief Operating Officer
Lawrence Radford Chief Technical Officer
Heiko Ihle H.C. Wainwright & Co.
Jake Sekelsky ROTH Capital Partners
Matthew Fields Bank of America Merrill Lynch
Cosmos Chiu CIBC World Markets
Adam Graf B. Riley FBR, Inc.
John Tumazos John Tumazos Very Independent Research
Dalton Baretto Canaccord Genuity Corp.
Call transcript
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Operator

Good morning, ladies and gentlemen, and welcome to the Hecla Mining Company Third Quarter Financial Results Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. [Operator Instructions] As a reminder, this conference call is being recorded.

I would now like to turn the conference over to your host, Mr. of President Vice Westerlund, Investor Relations. Mike

Mike Westerlund

operator. us for you, Results Call. Good Financial morning, joining for Conference you Thank Hecla’s Operations everybody. and Thank Third XXXX Quarter

before release the and Berardi available East release issued Our on today’s press Casa that exploration Tuesday results along with news this financial morning from market Mine our open, presentation was are website.

and Chief Senior have CEO; Director Keith Lindsay Officer; Vice Chief President On Vice Allen, and Hall, Roberts, Technical Lauren and President today’s Chief Phil call, of Officer; Baker, Blair, Operating and we Kurt Chief Officer. President Financial Larry Senior Exploration; Geologist; Radford,

detailed shown statements made X. Such involve presentation. Slide forward-looking include forward-looking and to forward-looking the those come Reform X projections management the included team statements statements. Act are in in which and XX-K, under as in the projected the constitute differ forward-looking Any Canadian and of likely Form on by Securities exploration under at the risks cause to Form in Litigation results today disclaimer risks and Private and could beginning information and goals, our the law, earnings from XX-Q securities releases These this

may we non-GAAP addition, this during In call, financial measurements. disclose

of You which in the is their can accompanying find these nearest reconciliations presentation, at website available to measurements GAAP www.hecla-mining.com. measurements on our

consider are and that and expect about economically we inferred terms urge allowed cautioned we SEC which not disclose to of as in to that extract Investors SEC, disclosures can to only we our with indicated are such filings. in make the reasonably filings reserves and use you Finally, our mineral deposits or resources, the our we measured, are legally produce.

to will I Baker. With pass call that, the Phil

Phillips Baker

morning, Thanks, everyone. Mike, good and

flow. quarter you Hecla. cash reversed see $XX We [outspend] for eventful quarter X, an million Slide [ph] of third generating As the the was can on

borrowing $XX So that, reduce million. our as revolver to we of able net by a result were

We We EBITDA. on high-grade the And potentially million agreement as East production, We as union a of tentative the generated reached Casa effect adjusted with that have union, Friday. with Mine’s an about XXXX. material future $XX expanded Lucky Berardi’s agreement could the mineralization early mineralization. at

Zone on made both made we great Sebastian’s progress year. where Hugh on San El next could decisions Toro, and be And

So the tell moment me let take and where you stand a things with union.

glad negotiating committee the company there between before union’s can membership We’re that be a tentative is a for the agreement the vote. put and

the consistent towards got not, think agreements side or While all agreement is mines, at unionized we and this Lucky neither puts wanted, that on with Friday a North American it path success. other long-term

know when don’t we shareholders operational will or a Valley in for just Silver be We Lucky but thing hope be our everyone. will this soon. membership, workforce vote Friday to being it’s even It’s the a by community. for the good or fully brought good if

this Now, quarter expected. came as in largely

generate visibility to amount expected to and these cash of flow due this operate. of We how mines EBITDA our

must XX where at two are issue. deal generally example of Nevada, an have There We expect in we of the what is quarter we every operated a we Greens a year assets most to With with. years. to issue the X for exception or timing Creek. know always shipments issues these have An of

our weather to Creek. coming a majeure, had ability timing This ship into our quarter, a delayed it a port nominate issues we issue, Greens delayed at force declared then because which customer and

revenue, received a it trader. October. concentrate seller We – was response the didn’t up the that, to so, sold we to And depart didn’t recognized concentrates deferred. deferred show and But to cash In revenue. the we it a until as

and to Lindsay the up show talk more in fourth will this. it quarter about going is So

no estimates expect we our haven’t debt revolver Well, the cost year? at rest the still and production expect year. the do of of end we for the what changed. So And

also been they year than par next which just to sometime the refinance QX our since middle below senior between traded have after notes of better the call. trading where Significantly We earnings. expect our and now last earnings

the in stabilized general, market bond a for confidence The market market with us deal. refinance and can and the bond performance on the in financial gives to we improvement that bond our reasonable alternatives us progress combined with

are expectations refi So unchanged.

[along] the can quarter above prices the after turnaround news see market, first Now, release. share bond this as course, you And higher the underway. like believe the metals with that’s the it market prices, has on shows was recognized X, [ph], where of we that Slide equity

has Nevada particularly continues, price to made. And plans. risen deliver continue June we Our since over our announcement if we this was our XX% share hope on

Lauren. to before great I to for advanced turn Sebastian, Larry helpful transition been like with service He to I’d Casa to call in And, you’ve Berardi, Lindsay, Creek, his futures. over Radford San Friday, Greens all mines the thank the to And become Larry, Lucky Hecla.

wish retirement. in we you so, well And

over Lindsay. turn the I’ll to Now, call

Lindsay Hall

everyone. morning, good and Phil, Thanks,

transactions quarters; We’re first the The happy for deducting cash $XX quarterly $XX after of million the the and quarterly quarter, quarter million sheet. million was flow by generating million third free resulted after. flows before us of expenditures provided cash and balance and activities operating than strengthening of and with higher $XX the financing in second for the cash assets resulting of performance $XX the

a number in of ways. This accomplished was

QX, Firstly, second first, we produced XX,XXX than we that would ounces gold second the in projected quarter And than more for year. our particularly half be stronger we this may recall have production. of the you

of quarter. This metal revenue sales The added year’s is $XX higher more about QX. million combined with less almost prices $XX than than million cost this second

in the reason and the the late Greens sale revenue quarter, deferred Creek concentrate sheet, was quarter lead a million. sold and recognition concentrate of the for mine Hence, item receive into As will of this XX. in out two to a Phil – due record cash zinc balance days of fourth parcels sales the see resulting line the deferred but Creek The on ship we after its port $XX departure the carrying the arrived called Greens September weather, of couple you as quarter. in mentioned, during

higher Slide X, you silver ounce last amount XX%, the same almost prices can to of our the and per thing eliminated. because to margins when prices. most cost generation. gold see QX, of essentially As This up were cash telling are up the higher are year’s past over due quarters, But due the byproducts. and EBITDA X is margins over lower reflected on in improvement margins margin Gold

we – more achievable for the activity take knew we a plan. it But we Casa would we do step develop had new That Nevada, to slowing the down until plan. we was improve. of

XX the in net This basis, this direction. our in debt-to-EBITDA. demonstrates towards we there the on of what margin are goal quarter’s progress and quarter leverage we the with certainly increase in right last X yet Clearly, expect headed QX, are but months times we not

quarter, the the expect full in of gold the Looking near additional fourth which lead XXXX strong of we quarter, the puts of some forward, solid establishing sheet. should and Subsequent quarter for repayment end the future. the to revolver flow the silver into and a we forecasted on of revenues purchased second of to balance cash production

refinance existing ensuring that All to so are when a we do markets financial position. million, we the $XXX focused initiatives on from of the enter financial into these

to $XXX purposes, we be needs refinance than As essentially for option down which by choose are year-end, to we up revolver currently rather amount another and paid our to provides could through refinance the protected an example, liquidity reconstituted portion the available with bonds bonds fair no – than loan. the of the potential million revolvers a freeing more be us, million, banks, capacity the available of term markets. is as if forecasted capital that have of This portions again $XXX the

cost our is Lucky improving, of on basis anticipate agreement tentative and debt-to-EBITDA timely refinancing with an well the ratio funds. As the a and we bonds Friday, of appropriate

up the bottom the of XXXX. anticipate Lastly, as can slide third us setting bonds for our and they strong quarter quarter, the as fourth than the that it were much so June, see you well, was the are chart performing in better we of strong at

Lauren. call the pass now will I to

Lauren Roberts

reflects Thank all new the high-grade perspective better and mine Greens plan would continuous like each. improvement the and on mines, performing in my saw increases year been Creek, well. at COO April the and sequence morning, zones little the advances months, culture is over development with a we the on the Greens X everyone. you, that Creek. We detailed the with good and a mine I cash offer The to I this of with very equipment new at for mine reduce time Starting XX-XXX Lindsay, I’ve to utilize job flow. opportunity spend people

free represents Creek to continue life. gold. is that the revenue generator because XX,XXX a mine quarter, value, mines flow, is third Result about of ounces see and the the Greens important we increase in This million I cash mines silver XX% consistent an the of ounces X.X of extend and over produced is the of continuing. In while

The Casa the a in higher shown earlier this the open of on gold purchases. life pond Berardi and technical usual expansion a quarter, produced million capital mine important importance XX. expected is revised longer another and for outlines Slide both company on report mine year as pit the underground for including production. had X.X and million ounces equipment The XX,XXX level third about the of X.X mine of tailings than and

year. the about this We’ve talked mill issues

mills and the lead cost doubling Over years our to of did our would to team attention at will we target turn plan throughput few the improving past we insight, incremental operations throughput time, very over job nearly enhanced throughput the maintenance of capital improved with through recovery an practices. think expect I minimal the and investment. practices these gains. With Casa to reliability excellent the

results in Slide is the you I high-grade about quarter. and talking in drilling good can intersections see existing them XXX more with and XX. producing expect very our we’ll the Casa, at coming on exciting forget at be Don’t width outstanding the the XXX infrastructure zones which as

very to impressed on was Sebastian. with Moving I this operation. San

opportunities In are mine the existing mine, oxides. We have the there underlying to are and life. X There excellent site the extend zones the exciting looks sulfide there great. miners

stoping process test one Zone. areas conducting milling and Hugh these We’re of of called in the of the

have XX so You photo The far this the on Slide job first efficient can new great month for which property. to more long-hole ago. of the a method, with see done a panel mining about contractors is a stope

mill to tons recoveries New XX,XXX determine third-party to of the is look sample complete Year. with our more information and third in ore a early expectations. We a our are here, about in at bulk line the if processed there case in We quarter business work for need

have the looking Toro about from an oxide also We promising. mine, called miles which very is X.X discovery El

impact. financial Friday production period composed team but this plan, prior is help extremely produced per our limited we The the quarter as staff asset accomplished. mainly is higher proud and Lucky the ore workforce year the salaried what during of the the to The are to amount of than minimize of

tentative we’ve and agreement union As ratification Phil mentioned, for waiting vote. a the reached with

increase expect up in the on been We capital a production from over RVM hold. investments significant the on is make see just back few the ramps have a the and full Sweden production I which Friday got test to mine. years next that some Lucky machine, as

need We we this so we time in are XXXX, at Lucky learning a the when modifications, make phase minimize lot can bring and we field testing to changes. we’ll Friday the take in

good pause sets years keen spending ores, financial next continue assess and work. I delineation permitting out ore a the was The on near-term into oxide of on XX and tolling secure We needs, to to year to depending I our focus take especially we see the second the the expect curtail quarter in further generation third mine it those a underground as decision one, stronger refractory understanding we to a agreements cash plan path. I on in ongoing Nevada, for was and developed expect us mines ores. the operations. body because which enhanced worked to or

on the expect at I be best operations. Greens was when for for mining that Hatter the to conclude move opportunities once get down. Creek available, to that I Creek look worked development Midas thing for funds and like there will it machines was going thing again put We’d pause, Fire Hecla to Nevada man we will mine a best and and winds year. as Graben this resource our develop are

to Back Phil?

Phillips Baker

Thanks, Lauren.

exemplifies Hecla’s to Let’s and Lucky the commitment of safety go to to XX, I when awards Q&A, that we to The want X that the employees. and our emphasize Slide go health commitment. the Friday environment before

program State recognized environmental Idaho there of Our to for efforts was pollution. by prevent the

We’re making our there a reducing environment. real the impact difference and on

To award to lost Sentinels or And Administration. proud work this time rate injury our Safety incident, have the win an existence best I’m Health is and mine then that’s been and Safety, the to since an which winning have you the reported XXXX. a have incident most award, restricted of even Mine accident the as can’t of you

very So given I of on it to mean, this rigorous is requirements MSHA. is a based the and set data

history it’s So hard in fact, in won we incredibly to never Hecla’s it win before. and,

the and to there. there Friday, that they off that so to no a the And to also that award result And Lucky and at efforts as team they’ve reportable of made this the they they for won hats X. the my developed had culture

later, If aspects area. you’ll of do can you go more XX what in to the Slides XX see to we ESG

happy line operator, with So, to questions. the I’m open that, for

Operator

Heiko Wainwright. [Operator Ihle Instructions] with H.C. line Your the first question comes of from

Heiko Ihle

Hey, guys. for taking my Thanks questions.

Phillips Baker

thing, Sure Heiko.

Heiko Ihle

by it and down mean, the just takes the understand you’re like for are they saying an so I on about going have long see the really looks ramp-up that Hey, as takes do to how But costs, cash the the timing Great. idea keep quarter. year. mean, year Friday, well? probably maybe meaningful I Lucky to that a I you of ramp-up quarter production going throughout

Phillips Baker

for all the work. ratifies – function mine a and contract as and people of if it prepare Well, to union the back we when to became come it the

jumping-off So from will is And that then take be it roughly the year point, a that that will occurs. time. when

ramp-up look from can we can how you at time XXXX, the occurs. back you a If go sense you of and the get start, –

Heiko Ihle

differently. my How Fair was did it I’ll little next a question, the Then like last phrase this cost much one something time ramped-up? enough.

Phillips Baker

we’ll electrical that do system We want Shaft. going there investments make X I investments make. And But improve recall. are to to we’ll an there. is further the Geez, that don’t in mine. other the then, There we’re the upgrade

want Most take of the a we But mine spend these to time and necessary investments not money investments are investments. million. amount we’ll the so, million, are to necessary. a huge on it’s the less $X than And put that and firm-footing of $X

Heiko Ihle

a question you a different, dividend price Fair I’m I enough. and from you go at bit? little do we guys and this a going got should it to couple completely pose dividend, price metal maybe The dividend guys something then, this what expect at call. ago, up on the so the we what think you And and I of weeks figured client should see to metal to cut

I a whole a – not money. I’m understand purely of is mean, a it’s I just lot $X.XX curious.

Phillips Baker

It there think do where don’t us be see prices intention the any position would in I is of cutting significantly we put dividend. would the to lower that.

As the at so causes change? that Is go automatically policy up. that some will going as policy up, have possible it dividend dividend a we point. think far I the

I think the consider Board will that.

refinance focus balance real ourselves But the in on our strengthening bonds. putting the meantime, position sheet in to is and existing the

Heiko Ihle

and questions taking yet enough. congratulations Friday for on Thanks again. my Fair Lucky

Phillips Baker

Thanks, Heiko.

Operator

Roth of comes line with next Jake Partners. Capital question from Sekelsky Your the

Jake Sekelsky

taking for Thanks question. team. my and Phil Hey,

Phillips Baker

Sure, Jake.

Jake Sekelsky

kind Just any color and to guess, Heiko’s wondering I this on are additional I going question, able back made the concessions caused I’m give breakthrough building to where were is us negotiation? mean, kind of what agreement? Lucky you guys on here Friday of what and

Phillips Baker

key members. look, thing an We made ongoing to with agreement. is we’re And end reach by day, wait And an and Yeah, negotiating they able the But be just that. it to the do see committee the was at ratification of negotiation the concessions. to union. the of when if going the both we’ll

Jake Sekelsky

Understood. That’s helpful.

a into we’ve kind towards continue throughout it more there. from of then, XXXX? And the shifting get to Nevada next mean, to you’re the in over trying target obviously, context expect to the trend Is on what just and, year Nevada, of near-term and of handle as I production it we guess, exploration how over there? the Okay. should far a for as I viewing switching we Thanks. portfolio expect been production I’m year, development, should

Phillips Baker

to as mine work out on meantime plans sometime intention the will in year middle to is – then, And to including with And disclosed. currently In we’ve deal the refractory how ore. ore. Jake. to previously of sometime go mined in on developed the be Nevada, forward, Sure, continue Sure. that the how next

that we’re that mill we certainly could So, in places refractory with conversations ore.

so plans. this firm have yeah, don’t And, at we point,

just through because Question? We’re things be working we’ll putting and still tuned, together. stay back

Jake Sekelsky

something And should visibility the you we into that there think QX is Okay. end by see or of or that? more is much in the year not

Phillips Baker

XXXX. announce for be of will all QX, in we plans when It our

Jake Sekelsky

on the the program, more you modestly on. second XXXX? the plans then, Do Okay, layer other with are any half on just prices for lastly, of up put comfortable what now? Or higher you bit guys hedging prices perfect. contracts place to a you guys have since metals initial And have these in have picked you

Phillips Baker

the We’ll to us putting continue at do contracts. new of we attractive, cost extent to the you And on look see it find that. can

We haven’t the good in the that we’re to Lindsay, we’re limit the done And upside what anything a on to we’ve able in done with with be puts. think to flow protection we to downside position anticipating. anything add? cash very deliver our our

LindsayHall

No. it Phil said all.

Jake Sekelsky

Got this the me That congrats all for positive it, flow okay. on quarter. and was cash

Phillips Baker

Thanks. Thanks, Jake.

Operator

Matthew comes Fields question line next of Your with America. Bank the from of

Matthew Fields

everyone. Hi,

timing Can posts then to have appreciate maybe sort the through to that to staff’s Just then from out just I procedural that coming has going back, be forward? here gets old mile existing how us the ramp-up. X going everything and some year timed you guys of of or rehired walk there clarity – the some Lucky on other for wanted go get mine to into it some ratification Friday, is the back back steps, on probably union different

Phillips Baker

time that about by strike. it have were people – the of But the Well, And XXX, the the roster off had is roster. essence you roster is employees that is or XXX quit, and there at they’ve they a it’s of of not so that out means. – retired of been people the at dropped so time people were any finalized they’ve

that? we’ll up. as course that union And we’ll the XXXX and So we have out to the anticipating be anything during the to as capital work with people of those Lauren get time the we we agreement, ratifies those plan as coming over ramp work back add do we – as to projects training. as we are and out XXX the plans

Lauren Roberts

bring as we I think, to as ramp-up our can it quickly as can. production goal will and be we rapidly people back as

Matthew Fields

mean, just this lot of it is estimate Can it you there in first a is But know, to… Or I XXXX? at Yeah. is in I not rough December of XXXX? rough when give back first idea going like June a of it just point, like that production clarity. production of everything is us

Phillips Baker

Well, never start now, in Matt, We right. remember, can to so… it’s producing, production

Matthew Fields

At the old levels?

Phillips Baker

Yeah. take production. to get will year It to full a full

slow relatively And in it accelerate be second a that so ramp-up of year that beginning half the will will over whenever that starts. the year

Matthew Fields

Thanks. Great. and prices by the peers precious it’s balance advantage metal of been your equity equity And of precious price yield it in popping of corresponding metals then, second some stock And and Okay. sheet have holders. raise with to some their like seems both debt high help question just my positively to sort received is risk. taken opportunistically is

basically to Your you’re risk do of – gold kind refinancing to willing help stocks table? and Is reacted take positively refinancing opportunistically price. to the that silver the of something

Phillips Baker

Sure.

bonds. refinance We’re the consider options to successfully all to willing

Matthew Fields

Thanks. for me. Okay. That’s it

Phillips Baker

Thanks, Matt.

Operator

next question CIBC. line the from comes of from Cosmos Your Chiu

Cosmos Chiu

this something But first in uncertain and is in point Lucky was thanks, in And know I comparisons completely But of for earlier Maybe a that here, see on go different Hi, that the who didn’t as then to timing? Phill, Friday happened vote. what terms timing there mentioned. that through. on now time, at I arbitration for what’s you still vote draw Lauren. can we terms timing of a very third-party remember was XXXX Lindsay off happening

Phillips Baker

better month a My of is weeks. took the part recollection or Yeah. X

right, Larry? Sounds

Lawrence Radford

Sounds right. Yeah.

Phillips Baker

get in X month places these – have then get other or then they that [ph] it’s to weeks they are working remember They implement, [mailed] all that Yeah. and about to them. a returned members because they Still balance the counted. get of

Cosmos Chiu

of need then, when press that release a ratification, And just in X. XX% all plus you about sure. For in you simple is your terms the talk majority, majority

Phillips Baker

understanding. my That’s

Cosmos Chiu

then CapEx but as ask to Phil, again, shouldn’t the need And of restart terms you significant. early be too in in the mentioned Okay. to terms at of, point time, maybe some that’s this of in

negative cash at operations? And be Should fairly about so free neutral or we cash when you Friday maybe it happen, talking free kind when in can followed are free positive does quickly color Is you Lucky expect restart and X quarters of by flow? us the point do time? flow give X we what flow there or cash this any positive of to

Phillips Baker

look year following after No, then neutral free negative the investment I would think year in be the I first cash net off positive. that and expect you’re will either flow, a or the certainly slightly to the mine the raises. And to be

Cosmos Chiu

in terms For then a bit here maybe And financial options available gears you. to sure. the little of switching

And about see the at Is that QX, my you overall you But financial financial did how still your the in raise I guess, ATM active? the potentially look strategy? using have think your Did statements? there available? talked question. do don’t is, You you in ATM into you last question fitting I still do equity

Phillips Baker

small. active, is The Yeah. ATM it’s relatively

there $XX it, something think it’s I certainly million or million available possible under utilize. can so $XX is we that

Cosmos Chiu

terms then Berardi. Casa of And last in one sure. maybe question here For

terms you is you’ve that or ounces, touched I think, year-to-date in the grade XXX,XXX and production, need QX. terms just company color combination throughput, far if done Could give maybe a some or is throughput? whole. just you us it grade guidance for I better so a a of of in you [ph] of what [aXXX,XXXa] of sort But on as look ounces more

Phillips Baker

of remember Primarily shortfall first the had better second been would the better a year. that plan in part the it’s of is tons year grade. for be that’s in always there – Casa we half And and whole fourth quarter also the the –

So…

Cosmos Chiu

For sure.

Phillips Baker

part of better. reason, second so the much that’s So

So…

Cosmos Chiu

Yeah.

congrats in again getting Phil, sure. For and on the tender of labor place. Thanks, agreement

Phillips Baker

Thank Okay. you.

Operator

of from B. with comes question line Adam next Graf Your the Riley.

Adam Graf

Hey, guys.

Just quick but third Creek. then in the you could front questions from a don’t of quarter the the Greens I here us are tons cost and mines? of how Nevada, couple tell the mines per many you ton, at have the mined Nevada of each know on you, for of if mining each in On numbers again

Phillips Baker

We’ll I the Yeah. back with the haven’t me moment. to aggregated because come that, you on just room at in

Adam Graf

And with us then at the delay who the Creek Greens there on give maybe was – if you there that anymore mentioning? cause company and you’re can the

Phillips Baker

well of had majeure, trail caught – tech, right? at They force Force well, contracts. they it’s known, XX% it’s incident played so and they the smelter, their majeure the

as in result weren’t the we the ship able that, a quarter held so of we nominate would what and So then didn’t to shipping exactly and the whether be, late ship. until know a up

account but metal, trader And sold revenue. the this are we we up the so we able we with revenue, to as doing got the a deal ended where unfortunately, for not result,

it’s accounted were that So QX. then and for in show-up deferred revenue

Adam Graf

did given And were with current higher contracts you effectively had – that you significantly TCs, have they’re spot environments, than pay zinc tech. I know the your to you TC

Phillips Baker

period was for sell that the actually the the whenever give were forward made we we time. have where otherwise. short in that better than we, it We We we that prices – – sell fact of would product,

Adam Graf

heard And awarded are of my the curious, details. out? Safety of curiosity just finally, on given own never I was never And years the Sentinels I’ve there – where great. then some that And award, just

Phillips Baker

people and different meet There’s is do than answer yes. Yeah. If they not not – that categories, awarded. if it’s

Adam Graf

curiosity. it’s my Congratulations. appreciate Great. own And interesting. from just That’s that. Well. I

Phillips Baker

I’m Yeah, pretty proud Thank of you. that.

Adam Graf

Phil. Thanks, Thanks, guys. Yeah.

Operator

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

John Tumazos

Thank you.

Phillips Baker

Hey, John.

John Tumazos

Thank Larry you Hecla his thank It’s not dig an congratulate the as all retirement. all for want your a And I Wish to I service team to the want best. a company. thing question. taking for to him mine. my easy Radford on

Phillips Baker

Thanks, John.

John Tumazos

Thank you.

the Do containerboard and and I and announcing Lucky you have today, steel and good at X:XX, revolver. then X:XX, might the lost and drills when ArcelorMittal that me, you’re Berardi, Casa repay off got is details. some at the X your potential the you I Or smaller you Forgive surprised disappointed you might and your think got – WestRock not But Kinross refinancing but this a just get Friday disappointed I that is that people is to financing year do are me CapEx seeing or doing release, it going are and though? Why take think are Lucky the Friday a good quicker? coining think, the we into I’m X of exploration, you market or what’s – restart, missed some of cash this on? tell and stock was news

Phillips Baker

was line we think income good the they ship expected. not caused that this And agree was is I a John, was Yeah, To our program would at honest delayed not you, be what a very result, it trading that’s with as expected. net only revenue what fact And of by the becomes actually release. Creek. the that’s the based market the Greens fact that

had you fair, you this I hadn’t that have program Is Mike now. think have had if I occurred think the wouldn’t – market would trading Westerlund? that and

Mike Westerlund

price, a combination computer Yeah, of that is weaker selling. leads to

lot volume at off You see right think is the a And open. of trading. huge I a computer it

Phillips Baker

Yeah, are improve. the it quarter see to we definitely the so, to confident the about that we be what track that them you’ll on. well, and walk tone talk as pretty we’re look, And expect on we with through people stock

bonds will of year end the not the a reasonable any that debt we’re by revolver we drawn. do see definitely to have see at can of definitely the We’re very that rate. in interest We can the refinancing a position good

John Tumazos

CapEx Maybe you’re are cutting exploration lower money, and and Berardi. walk too spend meat the It thought the there less [indiscernible] bonds. I’ve as through within results Casa you looks us Could correlation results. some you people thinking was lower dollars expense? like the are much never from the better a basically, exploration between

I smarts] [ph] luck. and good [with think that’s

Phillips Baker

actually the not shaking exploration Keith will in Kurt capital for here earlier I – – fact, But, got have in is unchanged. sitting made head. in capital given cut and change We Well, back that we’ve and year. their we both and guidance on our the they’re that I look,

we And the levels generate it’s right that and at level we’re a think free so, us flow. allows to

companies flow relative you people’s free the to at mean, I not been caps able about the market to able has it, the flow than our generated free peers, million have everybody cash last that Clearly, more or quarter. we make I other much two not that’s ours that I’m over reported, than releases. I’m frankly, not produced of so that less And, looking are find quarter. had higher think cash for a there one with more we for But days are to third have. $XX assessment.

goes number as think and have I are tone over course people we and we Difficulty] of to improve. planning the the the talk we’ll of next [Technical So to time weeks, see

John Tumazos

Thank you.

Operator

comes question line next Baretto from the of with Dalton Your Canaccord.

Dalton Baretto

you. Good guys. Thank morning,

Phillips Baker

Hello, Dalton.

Dalton Baretto

earlier the the Friday? do missed agreement nominate them I you of can you Just the ability apologize I’m Lucky wondering, I in Phil, specifically, if this call, comment want to the now with where but, to at go? on have the union nature you people

Phillips Baker

operate. – they other other America the capabilities look, contract and And, how way U.S., mines do. that mines We same do, is We’ll North the we consistent have mines, this other with the Canada, throughout operate. in

Dalton Baretto

maybe you get to win – Well, that’s big up you for you a great. what talk gave Can guys. That’s that? about

Phillips Baker

compensation everybody. was as And that thing, quo them. for them to is generally say a package the better this first quid it’s win pro think a we put I I’ll for – Look, a

alleviate skilled variety – have a concession And up just There holidays the we attracting and the would had skill trades, lot giving ended of But a thing. tradesman. benefits. of helps particularly, on that we things. medical primary We for that. This is difficulty

this we It’s been the be to see contract. operate. that, able up said contract positioning this that Friday decades be old think will that. us operate Having sure to We certainly able to do more. contract We we have able as weren’t the And sets under it years. operated do Lucky to to XX now would

Dalton Baretto

guys. Congrats, good agreement. That’s a great. That’s

Phillips Baker

Okay. Thanks, Dalton.

Operator

Baker. to now would back conference I Phil like the turn Mr.

Phillips Baker

know a to We day. participating feel you to appreciate with or Have busy didn’t this Mike have a is lots more of a or great operator. like answered Thanks, you if call. give your us, I very people we Obviously, reporting. you’d Thanks question call. to talk the free Well, day much. on

Operator

for today’s a gentlemen, and and wonderful you have Thank concludes day. Ladies your conference. participation this

You disconnect. may all