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Hecla Mining (HL)

Participants
Anvita Patil Assistant Treasurer
Phil Baker President, CEO
Lauren Roberts SVP, COO
Russell Lawlar SVP, CFO
Heiko Ihle H.C. Wainwright
Lucas Pipes B. Riley Securities
Michael Siperco RBC Capital Markets
Call transcript
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Operator

Good day, and thank you for standing by. Welcome to Q3 2021 Mining Company Earnings Conference Call by Hecla. [Operator Instructions] I would now like to hand the conference over to Anvita Patil. Ma'am, please go ahead.

Anvita Patil

Thank you, operator, and welcome, everyone. us Conference Third Call. joining and XXXX for Results Operations you for Quarter Hecla's Financial Thank I'm Patil, Anvita Hecla's Assistant Treasurer.

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

Phil Baker

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

it Looking cash makes over million free free the Hecla solid we've generating X cash past period. at of of quarters million. continued and including of this Slide out X, financial totaled flow $XX.X that performance, with quarter another And generation X flow, of $XXX the

Casa the this to is improve than the quarter record cash. work solid realized year with Berardi, $XXX we at XXX,XXX Berardi. more Casa is in to of throughput the tons off we've XXX% sheet And been nearly is XXXX, and balance of the consistency happy hard working see which quarter paying and acquired is this I'm tons result, third this with a As that operational million

include to Mine. and continue We've numerous life. the to we operation also mine So extend expanded the we've East recommissioned the open since XXXX, pits,

be is the new Remote seismicity, the managing RVM, example we mining the that Now I'm this and the in a that highlighting but these which the blasting guys the in mine was facts, have innovation, be in Lucky could not gals this were as receive result destressed and to culture Miner. a Lucky culture Casa also are it And just Underhand the guys the only at we're method at improvement Casa really new first innovation. evidence that completing Vein at of mining the call to about Bench. optimized at we commitment method doing, results give good as work issue preparing credit highlight biggest method to mining to we we determined of this the our shown to we -- and was And of Friday, is effective of Friday. method. new it's is Further way And talking developed positive the a more new and development another blasting, And Closed have that time the to Hecla's method. mining of

Lauren blast element this the it's in so about the to and And that's of going seismicity, RVM to to So a developed we're and control at another important and you property. tell going more drill has is And going deploy it, the be moment. new been to constructed mine. and an method suited but safety is as better method

of suspect in they companies for year. carbon can X the the invested footprint a X.XX. this we we this point, emissions are, are one X. credit to sustainability emissions. rate And we've we zero few team less again small and net how say give continue -- the emissions to for our year, of have. to earlier small all-injury we're I operations gas And the credits This expect that and X our year. their this offset frequency of Scope Hecla employees. commitment zero than we want to greenhouse continued We company-wide report, for and of safety safety, to published achieved I And to mining enough given we XXX,XXX health Now speaking emphasized net Scope X have net tons of generate be next then zero how at and

are Russell tonnage. Lastly, that to I'd impacted inflationary that Lauren, high-grade, Hecla, like very operate high-value pressure industry. before very to I turn has low and we it discuss the also over mines the At

rock. So we day. lot company year larger moves mining a move when a a a of don't We in do in

of which So mostly inflationary consumables, by most amount where use significant we utilities supplied a the had from power you've pressure. is sources, is hydro. Also, large local our renewable don't

So stable. our energy very costs are

some fly from takes replace in, it job seen vaccinated labor to with Greens to workforce employees. quarter. experiencing. just fully had employees vaccinated and we have and most the with really costs Creek our also we longer being higher-than-normal out And those fly Now as work And at turnover certain anywhere, able businesses turnover last in almost pressure in about fully classifications are newly,

a Creek the tonnage, quarter. portal, change mine. which of of the production We've higher-than-normal to us that lower the made world-class tons and as is temporary we changes of caused Greens to We a the full recruit sequence this to schedule, what result. saw produce to grade. the able impact continue while to be mine the to Greens issue, So tended value turnover, this we had and also doesn't at mining to long-term we and were lower closer we were crew Thus, this staffing, ensure the which were number ounces Creek which see as

Greens more Russell. With We production, quarterly speak in this to our Creek have, we'll want production turn it to over at due that, later the however, the to guidance lowered and short-term about lower presentation. I

Russell Lawlar

Phil. Thanks,

Slide X. to Turning

the lower is already due company's silver the at gold XX%. steady, contributed to During silver of The of Greens price of during Creek, the production the somewhat to gold XX% having Phil decreased discussed. as has and the quarter, contributed silver contribution compared holding revenue, quarter while

During Berardi. be Greens Casa the to our revenue driven by quarter, Creek continued and

continue we see long-term improvement Lucky and to operational at growth Friday. However,

both million than has silver free the property We margins see was the where per assets where more in the flow. to cash more strong assets our means in than more gold and This margin continue than ounce. margin $XX $XX of was the $XXX generated per ounce

to Turning X. Slide

largest to the a of semiannual and company's increasing Keep after And million. interest during on roughly decades related continue we our our spend history, arrangement; cash to of land credits. cash into for flow add other long-term balance tailings quarter, had our sheet in future; exploration XXXX at through payment such net in us carbon Lucky Friday, to the the a our some the $XX the this purchase is We expansion the with working as: balance the operations capital from debt. of adjustments up the which for smaller lawsuit settlement sets mind, purchase

is has quarter first to long-term profile the leverage Our lowest XXXX. and remained in last bonds issued similar the that at we since of X.Xx

over silver of strong have dividends, the Lauren free XX% X of driven of to paying been allows XXXX, We margins of capital $XX which a us to in generation to fact, free assets, not through cash the silver flow these strength but of shareholders lowering cash our return continue our With during for The X I'll threshold dividend shareholders operations. pass dividends go way our and in significant decade to assets call to in quarters. only linked our our in also of to ounce it's per see the our quarter. that, flow last we've amounts to silver by enhance the now, to been the the

Lauren Roberts

at of I'll Creek Russell. of ounce silver. per an at start X.X on million X,XXX silver of We ounces in and produced mine all-in sustaining cost of Thanks, Greens Slide $X.XX gold the X. ounces QX

silver lowering the from In As near the silver $X.XX at had million maintained X.X Phil sustaining challenges to available lower silver adjusted $X and To resumed of quality are of but mine mining are positive crews. the ounces. cost it's was to in was ounces of the Mining $XXX guidance this lower with production described, the the quarter best portal, shifts, million is production testament million sequence cost the $X a make during cash and mining to X.X Silver to a the of quarter, Creek ounce October and XX rebounding. strong us at lower of grades sustaining really past $XX.X mine cash million quarters, reaches Gold X.X grade, in grade. unchanged. use this asset. all-in generated production generated the focus to flow. flow ounces ounce. working per the silver this X is ounces million to of we lower is deeper production, third The Despite cash the Greens negative on reflect guidance $X the free zones in full maintained because to guidance per million to free and

$XX Friday Slide Year-to-date, in cost remains mine XXX,XXX flow track generated achieve the million million of and almost silver guidance. flow produced to quarter. $X.X Moving generated Lucky XX. and free on mine of and the positive to The cash ounces in cash production free

short of down for managing the excited us. with stope longhole with readily is quarter, In keeps mining operating method, no of XX% dimensions method. that dip key found The a in a very minor improvements mined under UCB seismicity, came are the the has the about that destressed which from within We work horizon rock engineered significant as UCB parameter tons UCB bolted. Think area method the are undercut third showing fill. a

As improve it, as looking to are productivity well. for we opportunities refine to we continue

record are the operation. of Casa deploy this mine's in we history. Berardi Vein Slide at milled Remote success Hecla quarter, XXX,XXX On the the we the throughput UCB, mine With from the quarterly another plan achieved tons highest Miner XX, approximately seeing to the

deliver cost ounce. produced $X,XXX all-in third to mill XX,XXX ounces throughput of per investments and with continued higher quarter, sustaining at the mine In the Our recovery. mill an metal consistent plant results improved gold optimization of availability,

costs. While we with costs higher are strong, the costs mobile associated production the maintenance related increased activities seeing to mill are processed, contractor and higher and volume underground improvement throughput

ounce XXX,XXX to gold. We our for are maintained per year. of to gold XXX,XXX ounces to guidance Cash $X,XXX $X,XXX guidance at cost is production the increasing of

sustaining acquisition for which Our due planned higher was the next anticipated mobile underground than of to factors, including year. of several X spend pieces capital were equipment, accelerating

mine $X,XXX the remain the We sustaining to the our generated this trend. extending return X past I flow the free Berardi million like guidance to $X,XXX Casa cash are cash looking We ounce. all-in reducing quarters, to at With $XX in and per improvement impressive following forward mill increasing on to cost we're costs the optimizing Phil. to from program. that, results in call and would focused

Phil Baker

Thanks, Lauren.

but future shows in and XXXX. Slide for XXXX production consolidated tweaked with here. an for our changes the silver the in of of States, Hecla years. And everyone a our So U.S.'s that to it gold all I silver XX the want increase it decrease year, guidance producer. representing no the slightly to silver United And largest is XX% production mined in about the remind mined and for we've makes

of and also Canadian XX% The an guidance and of our has of Lauren are guidance gold of costs, because capital cash the because rate the gold of AISC is cost direct at increased of silver unhedged. Now production purchase sustaining hedged Unlike the guidance strengthening equipment, average our costs where of reaffirmed. are as our some the $X.XX, advancing dollar. cash described,

change So impact future. the the might currency. in of hedge the we capital. the sustaining this We might in had change the We

exploration is the slide, and of Now to the capital if predevelopment guidance unchanged. bottom expenditures, can you cost go you see

for for Now comment fact real before want ESG mining of our close questions, Scope shareholders, have the and X operate any I company that lowest dollar in of take the and really with zero we revenue our net X. the and in we and to emission that to I'm we for that is and difference make environment. we communities our are environment, The employees a ESG. first, probably proud way absolute per I approached for today about fact of the the have a

in. only benefits pension have have For the not really best-in-class the paid communities they far workers wage, they live proud employees, are And health the and generally employees, that for living treat They are care I'm way U.S. of we in the as that as a but employees. our benefits. highest

private almost the Friday and In in in operate X We communities have the traditional the operating there both in Lucky of we've that in, we are pension XXX(k). the case largest X employer and for been full A communities. almost generations those

these good to the shareholders. before up part the I job with the On mention And business Page And have I'll taking see of a a half largely Hecla conversation that opportunity About to communities have management that. mine. to questions do has you'll release, and I the One we we us. remind on tracks XX,XXX X mines other you X finally, the how to X want Board about link institutions, of will engagement that and thing half the of to So they the give shareholders, Hecla's think very you about active one-on-one they're governs of everyone that of a a sign one-on-ones allow have. the individuals. interest for is real I of because are align are think thinking

operations, for track a So and ESG. general exploration,

you open encourage of with to take operator, And to advantage that, anyone. just would and So to take this questions. it's opportunity, happy I

Operator

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

Heiko Ihle

$XX on You exploration the in spent almost quarter. million

I quarter, that said went your less to quarters, at again said, can't since expenditures XXXX. about plans still And your there of part XX you were can? September your that stating all increased the just is you over walk by of least QX. the planning walk were thoughts your XX% through just ideally maybe that replacing by COVID me through expenditures and reserves year. You likely of philosophically several next through you on which release exploration I perfect end if But related me you sense. for you mean makes give while exploration numbers, That actual of me sort by limitations, the

Phil Baker

year. the we’re you coming for Well, Heiko, as realized, the still process in budgeting

be at we’ll opportunities is we really I’m explore So can I expenditure going I don’t see able to because almost applies And have that to suggest and to of of level value that each to be have that you create they give is this see of to not the have a we But the XX huge -- year. that that similar will to board. information. for reason we it suite what you have of And across quarterly then a shareholders. need just our other sort properties real operating the of properties the potential for

But that, inventory time seen us we So on been to it I’m not come -- going in particular said I’ve the Having to by. at is any really are opportunities. Hecla, go property. exploration not of the I’ve judicious this this of through hard have use capital. It’s

the and We capital, for have competing assets. additional operations-wise of lots both exploration acquiring interests and

So competitive it use is it. a process the of for

Heiko Ihle

good the -- a looking you’re saying as correct? this year, clarify, just what I this for. was quarter, less or answer, as by the not same to more way, Building That’s same the

Phil Baker

do capability you and to it, would have -- I -- right Correct. similar anticipate would million. I our I something mean, $XX the opportunity. to we XXXX. be the is it's have And us that guidance at to in expect we

Heiko Ihle

Makes sense.

a And more something one are quarters I've similar just quick extreme the ago, somewhat few just even now. then numbers but Okay. asked clarification.

the quarter sales sheet. equivalent balance essentially on cash have of You and a the

more that than in available going And is, is have enough, where of liquidity. enough? this I You guess I'm when with twice

Phil Baker

Look, relatively us the need the Heiko, balance have to historically, at if you be conservative. we sheet viewed have look

deploy dollars But million sort something we or balance conceivably We will to that not. to we levels that? we of enough grow of of likely sheet it doubled -- that capital won’t have will is, could. couple opportunities probably more So a the the you hundred that will have cash on Probably of of level. is where have

metals the have at look the and price. operations you these right of strength if If you

Operator

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

Lucas Pipes

color for QX Greens relative Phil, the Creek weaker. QX, was But a you too year? it to more provide Greens what a my I next to and little that happened? my just for able take on Creek was your wondered are estimate aggressive. Maybe outlook expectations And was what’s and just bit

Phil Baker

Lucas. Sure,

of the the these It’s result for operation different had a move of ability their guys as what tried to indicate, at fly-out the in workers positions least part to -- it’s really for workforce. a we’ve really of shortfall result different and a fly-in, a and entities. we large As portion the a to most with as quality of the was number --

had so And had them. and we people that we left hadn’t the to replace opportunity

schedule. We have ways. also changed more now the that people, done One through X we’ve is but recruiting

I to business has. back of you’ll it’s and normal. just we and it’s much to seems And But have there and going so be great fact every pretty quite we’re competitive, shortage to see mean a be everyone go an things challenge in I people, a operation. we ongoing think a that

people great come We a where mine. the there want have culture to to

Lauren, don’t add long-term you issues. so want we’ll think And any that? to have to I anything

Lauren Roberts

enjoying just Phil, the I’d reiterate that all we’re mining sectors.

prices. We’re metal think demand, be as should result, will we miners skilled manageable expect I elevated turnover and high for it a And in but trades, all enjoying some skilled are us.

Lucas Pipes

Is on broader follow is -- within to it electricians economy where And industry this. up the because Or competition in lot work other sector? of mining coming can the find the from a

Phil Baker

for that depends it’s miners, within. It has. the skill the person set on Certainly,

For and electricians, it’s within mechanics, both without. for

Lucas Pipes

comes be figure that to XXXX, I up. go assume as is for kind will labor labor, account retaining to it rates in to cost we And we skilled of there when penciling look And ballpark should out inflation this?

Phil Baker

-- increase Lauren, mean in when flow. add? fact cash $X.X than have that that, more but you’ll you the that, really think I that spend anything about it on that the see, there’s it’s to billion, quite frankly, about little -- impact think aggregate a the our some is I that we will small,

Lauren Roberts

we increases. I anticipate should across-the-board think don’t

certain being competitive focused areas. We’re in staying very on

exposure. to the mitigate cost that helps So

Phil Baker

performance with just mine that’s the think and a people in incentive as the at that performance, Friday there’s very had more is pay we mines opportunity are more but for good to that productive, with this is more mining there a amount I see of we’ve get is particular, fair these other as has a made, The compensation out. new method. have the And that we there Casa Lucky on quite thing that happening pay with structure improvements based competitive, the is Creek result, Greens and pay --

Lucas Pipes

discussion. for you Thank helpful. that Very

smelter a impact wondered, regarding prices. been up There’ve and you? high curtailments be that you be numbers? seeing the are And on hear showing this. to the of of operationally so, perspective headlines topics. switching energy would So If couple back in Would I on ultimately, where maybe your this keen

Phil Baker

thing say contracts we guess first frame is for concentrates. I’d I the have that our

have a So not concentrates, we be a having don’t the for a concern. home concern for could which

have but sell it’s small that and concentrate. We very spot amount desirable -- a we

So no concern there.

But long we to term, of sort this what benefit a have to hard anything term, think, long to add? -- I is. production the you consistent have Russell, it’s want contracts. it’s these probably it’s in balance net for say us that

Lauren Roberts

what to of already Just has confirm kind Phil said.

a did been have but that we’ve the place a in of risk send being being was with our we certainly us, increase not the that seen the costs. as of side able or concentrate to in lack And to a the sell power was many, really underlying we to beneficial other obviously, that, many years. dealing concentrate. we didn’t customers which for change We the see the change long-term risk any haven’t of as of in prices of of result of see, us the metals, result What

Phil Baker

into our remember, all to thing is of that sell or other we Lucas, the And Asia America. North concentrates

Lucas Pipes

it industry, of this Very what’s helpful. maybe less of a it. structurally this. Is take kind Got take certain positioning folks maybe temporary, as or Maybe follow-up it. one viewed offtake the to issue? on account crunch the energy on themselves Got In into environment?

Phil Baker

come deals operations have think them. lot And of how AISC will We will that that to cost they with that were that It’s it to was reverse. -- have energy the our becomes the impact is that having asking Europe shut getting I and cost down. But -- the of Conference so a that. there’s economy customers down, high and seems it question eventually Yes. Virtual talking of a we that energy fundamentally, these were at in of well. sure do it play into it’s whom politics for that ultimately And the were as difficult such question -- some for

Lucas Pipes

One it. Phil. question Got last for me,

just not This just Just on from some controlling elaborate but back about take. wanted it get if time, on for something -- talking on thought in going Lucky you’ve Friday, were outlook prior and very and Lucky wanted encouraging, to obviously able your with seismicity forward? to you Friday circle I been the has sounds comments I the and to your your been seismicity

Phil Baker

Sure.

absolutely, to So manage XX% Roughly seismicity. available stope’s available Lucky because is is the impediment of not to time production the seismicity. we’re Friday’s biggest having

this going the new at Most with change potential the workers level not have mining that or is event. seismic of we’re a a so And for dramatically. method, point are for we we that in same least event headings can these think seismic that potential to important number have

the event. And so substantial very, catastrophic safety of by particularly the very in improvement of a safety encouraged mine, safety the we’re improvements,

it, fine-tune maybe think of improvements. a description But is And this then we there’s improve strong potential this productivity at like would and to So point. as add? fine-tune where of for number we too as that’s what Lauren, maybe the one. are you we we

Lauren Roberts

utilize we with the of benefit than And as become to more in the is just safety. and headings the the obvious more that method, efficient able may able I’d time a being reiterate productivity. to to the be improve clear XX% we addition

very promising. are So taken I X the things think together

Phil Baker

manage infrastructure, the company. for in of around X-mile at this both being on seismicity reserve the down that huge or and the the you within look -- resource sort and the the has benefit has potential exploration and huge, able dip a And range has that the potential, this and the Friday it mine and with X- you to value has Lucky strike, a it --

Lucas Pipes

comes And this benchmark what are on do then to this. it then Or brought are consultants helping technique, you new When you on in-house? that learning And follow-up mining that curve? the mostly in you a kind have do expertise against? quick you of you who developing

Phil Baker

assistance trying way sort advance this became apparent look, to brought in part, to the Well, we the with wouldn’t the was for that with areas. try we’ve that to have contractors make it’s came that the really were from -- most and most of mining others RVM people And us the we’re we seismicity drilling But as realize there’s this, team XX% very it’s and helped patented to help associated elements we in, decided be and been his that and addition have Lauren part, going alternative test conclusion that or have this. we’ve method this Certainly, that us an the to, I’m optimistic is a But alternative the with to could this And we and say blasting it’s had and potentially UCB I some in this some homegrown. an homegrown. reduce to the of RVM. And that. advance method.

it’s applied but it what -- we’re have that we pending, quite are doing. is patent because unique Lauren? We for

Lauren Roberts

really perspective. new up can thing from unique benchmarking, is setting think the I at the I thing about Lucky a would No, you Friday against previous in with the the benchmark Phil really Lucas’ to is only Lucky geotechnical answer method Friday because a only the follow question I the method think

not this we’ll very against from benchmarking going against think, probably methods, mining method. be that So previous is to a productive I exercise. forward, the in ability mine our other produce benchmark to But

Phil Baker

you method works things insight a of provide And of are the mine play, it will what and them sort is because design and course -- all the are can we all of X the have of into how detail of how and bit come Lucas, the in and months, expect, those quite process. over cycle next of into the changes the

guess at now as full year -- of this XX% this said, have we a I come or been We’re the a for right test And in on from year. have method. tons over of Lauren a

something to suggesting is at risk. great not we’re that So you

taken that of In course we’ve period had. it really we’ve the fact, over the risk out testing the of

Lucas Pipes

appreciate Very team, luck. all And and helpful. best Really the Phil of color.

Phil Baker

Okay. Well, Lucas. you, thank

about We’re excited it.

Operator

question from Markets. comes Michael RBC next Siperco Your Capital from

Michael Siperco

a little how Greens looking bit higher-grade still you Maybe about too at early accessing fully provide revised drilling those quarter-to-date? Are down it on throughput Is areas? are you implied things what’s Or Can better? staffed this talk Creek. by guidance? details the looking is Are to you point? beyond

Phil Baker

to answer Short yes. all that is

range. our quarter. been had The the the in during schedule being I of schedule. We -- did guidance changed the to expect do of in we’ll fully we’re change of you’ve to think, That as Lauren? our fourth now like. So has, so you what process would math that the course the fully implemented look the we can quarter seen We sort believe change, be schedule

Lauren Roberts

to, that transition With the made we’ve yes. that crews

Phil Baker

Yes.

as than And So don’t always employees the full more hiring, not right. We have we far yes, it’s have Right, budget everyone. budget, we then because but as need. we contingent.

point still provided. impediment to be have we’ve see reaching that guidance doing. this more we And that so But at any we don’t the hiring we’ll

Michael Siperco

that be October would August? So to better looks it fair say than September,

Phil Baker

Yes. Yes.

Michael Siperco

Okay. Right.

Okay.

Phil Baker

mining we’re So it.

were we trip. not mining in round XXX South hour is was XXX issue the about the South. So and The an XX-minute

Lauren Roberts

Yes, at the way one it’s bottom. a with loaded XX minutes truck

Phil Baker

Yes. Yes.

So to there. we mine are able

short XX% the We the were that mining We would work. this the be have of doing crews personnel. workforce, the workforce,

the a into was quarter. well to become it didn’t until us major and impediment, apparent it So

Michael Siperco

bit that’s theme better. hear the but your up it that’s or part the word for Makes call, maybe I peers. of getting following on ongoing And most touched the an in then on inflation didn’t been Right, to of last question last on your Good sense. you right. the see a question. results. And Obviously,

talk having you’re or be we big benefit can ahead on need level on spend in materials obviously. what seeing side XXXX? you cost that of mine about to the other the you getting from a impacts of terms somewhat watch might You you, visibility might at that CapEx any into not labor, But or

Phil Baker

XX% about that of our is and about are energy digit. nothing Michael, XX% answer, is labor, short the So double else costs

impact said, stable. it’s not you tons the everything X,XXX I of type a Remember, labor, going day in Lucky inflation costs, have Greens as same tons X,XXX bit for be for mines, X,XXX operations. we costs a would economies us a these at a X,XXX but small respect scale to day; there’s labor little that these And operations. energy of then inflation. not day at day, is of are Creek; tons the a categories larger else, to board. across really Casa with The of the sort anticipate So But Friday. ounces certain Really, yes,

really the more Lauren, So to side. the is trailing add? pressure the labor factor that on anything to be consumables. I other will largely think a compared And inflationary

Lauren Roberts

No Labor, it is a go energy for contracts. areas, the fixed up. some driven -- I because it’s hydro mixed kind a costs But bag. we’ve is us, many think, Like, power. some And our categories. And essentially in renegotiate in Cement cost then of some we’ll is our it’s in to up. they down. Steel working been cases, up. -- we’ve consumable of see variation

Phil Baker

increased. about Right. contractors, has cost absolutely of And think you contractors

Lauren Roberts

work. of performance good lot the there a the is of of sector Because and

Phil Baker

same you if thing the it’s think And assay. and of in drilling,

a there’s pressure, Michael, -- it’s muted us. there’s cost on no but it’s So doubt, basis, relative for

Michael Siperco

next of -- especially and well? availability, this and for in those that cost actually realizing are follow-up contract But budgeting terms to the terms on was guess, seeing year in going you can’t specific. be my as exploration program that into I pressures get rig that availability and, impacts side And your you’re year of last point

Phil Baker

the -- there we increased pressure? the of So the this had have the good Is in will news next year. we same. are Most that programs rigs be with those -- given will the that relatively X Absolutely. is cost year,

So footage. that we do. as of also get won’t design much But long how will holes becomes we of a issue

trying we’re So manage to that.

still higher. even the I very think get we’ll cost results being with good

Michael Siperco

Got finally Makes then sense. And for it. me. maybe

that the gun high I should provide about and at from of early In from how terms but process I mean is slot jump steps Montanore, maybe you’ve how your we you’d through what a the know don’t Creek into they year. portfolio walk And Rock us here? think next next to here, can you perspective? level that stated

Phil Baker

think I that think in still early are dramatically the Montanore end of this Rock next has and that Creek production changed decade. in Sure. decade, don’t anything we

taken fact it’s that into that the process, really a had -- a legal regulatory we we’re in. process not So you account

to have Rock decisions decision that you so this the And opinion decision the react biological record made makes. to a -- the year, that set aside the judge or on Creek. remanded And judge of earlier

the separate what that it’s doing because we and judge judge done that really Montanore evaluating process same next decision to So satisfy particularly the made but the is Rock it’s the that’s is and that of are what And one the -- judge -- Rock we one Montanore how project. project. Creek, advance so in we up, Montanore a the Creek. on have

so And And this that. at working say we’re point. really can through that’s I all

Operator

we from a from Lucas Securities. question follow-up And have Pipes Riley B.

Lucas Pipes

the on I’m a just was on you My But and since Rock asked. follow-up Creek I’ll line, ask so question. high-level question Montanore

there But side they’re trading. seems group I wondered out. environment? kind macro Are investors It it’s this how breaking seeing is disconnect at how there’s high with in what but discussions not opinion, in related. a to to investor look really I’m on between price is So the despite, And of backdrop. how in hanging engage inflation and you do there like me my readings, gold about the the macro

on So I would thoughts that. appreciate your

Phil Baker

a commodity. thing that Sure. follower guess price is the is of Well, investor say I equity the I’ll first the

so on view point. sometimes at see this the have investor the seeing not general limited. the the is see impact Certainly, the And we’re ability equities that outrun of you’ll to commodity, but equity for to gold an

I to is commodity as a there there’s -- investors, the but hasn’t come talk to in it similar has interest just And general be that’s view yours, that more think itself. of a generalist I there to yet.

that There’s about if to that. come. know, inflationary at everything real should are quite given I there and look interest will and it think Russell, anything true, where -- have really absolutely you’re that is be saying level, an don’t you precious metals. I start in rates inflation add to you to

Lauren Roberts

U.S., environment And supported of you but in well. other The got only macroeconomic certainly, we’re it’s gold, that silver. add really support producer similar also the obviously I largest that, industrial get gold, it. highly on to a then the to being side Silver I in to things would think the thing of the which is, silver being leveraged we demand the see as lot

So about macroeconomic from that feel the outlook. at we environment, portfolio, quite what’s -- in perspective a of our look on the we the and the certainly, good a we take going at look take

Phil Baker

Yes.

great So that’s point, a Russell.

to -- electric the as silver that silver you half think requires And require -- had about else you about think administration things. they things coal wind everything and other the we more to in power well said as and want vehicles the those be solar voltaics XXXX, and energy reduce You by and this want generation. X Biden

the in -- electric the So vehicles itself.

than of outlook had like had order past. just not in any So history demand for the look silver, magnitude we’ve at and in model. the previously. is unlike we’ve you it’s the what the the It higher it’s time that of And

You can was we’re technology this way had change. to and caused in same the the change go back that XXXXs time that demand you a in metal last with having the energy early the that for

Operator

at questions Presenters, And no there are go Instructions] this [Operator time. please ahead. further

Phil Baker

Okay. just All you again, X -- you invitation thank the on with right. take I'll much. Well, us leave the to There tracks. is one-on-one. very

to us. the click encourage with that you on a a of release. meeting on and press link find up We You'll set link Page X

So thanks much. Have a very day. great

Operator

QX concludes Hecla Company that gentlemen, Mining Conference and Call. XXXX Ladies Earnings

You may now disconnect. your you Thank participation. for