2009 WAS AN EXCEPTIONAL YEAR'--BAKER

Hecla forecasts 10m-11m ounces 2010 silver production

With record production, strong metals prices and repayment of all debt, Hecla Mining CEO Phil Baker considers 2009 to be "an exceptional year".

Author: Dorothy Kosich
Posted: Friday , 15 Jan 2010

RENO, NV -

Hecla Mining Company Thursday said it achieved record silver production of 10.9 million ounces in 2009, a 26% increase on its 2008 number.

The company forecasts 10 million to 11 million ounces of silver production this year. If metals prices remain at their current levels, Hecla expects cash costs this year to be below $2 per ounce of silver produced.

Production records were also established for lead with 44,000 tons and 80,000 tons of zinc produced in 2009.

In a statement, Hecla Mining CEO Phil Baker said, "2009 was an exceptional year for Hecla with the record quantities of metal produced, increased silver production for the third consecutive year and a cash cost of less than $2.00 per ounce."

"With the cash generated, we were able to repay our [$38.3 million] debt and still have more than $100 million of cash," he said.

"We expect 2010 to be just as strong with similar production and cash costs. So between the cash on hand, our credit facility and the cash flow we will generate in 2010 and beyond," Baker added. "Hecla is well positioned for growth."