Hecla Mining Co. (NYSE:HL) Q3 2019 Earnings Conference Call - Final Transcript
Nov 07, 2019 • 10:00 am ET
Good morning ladies and gentlemen and welcome to the Hecla Mining Company Third Quarter Financial Results Conference Call. [Operator Instructions]
I would now like to turn the conference over to your host Mr. Mike Westerlund Vice President of Investor Relations.
Thank you operator. Good morning, everybody. Thank you for joining us for hecklers third quarter 29th Financial and operations results conference call our financial results news release that was issued this morning before market open. Along with today's presentation and the category East mine exploration press release from Tuesday are available on our website on today's call with Phil Baker president and CEO Lindsay Hall, Senior Vice President and Chief Financial Officer Laurin Roberts, Senior Vice President and Chief Operating Officer Kurt Allen, Director of exploration Keith Blair, Chief geologist and Larry Radford, Chief Technical Officer. Any forward looking statements made today by the management team come under the private securities litigation Reform Act and constitute forward looking information under Canadian securities law as shown on slide two and three. such statements include projections and goals which are likely to involve risks detailed in our form 10 k form 10 two and in the forward looking disclaimer included in the earnings and exploration releases, and at the beginning of this presentation. These risks could cause results to differ from those projected in the forward looking statements.
In addition during this call we may disclose non-GAAP financial measurements. You can find reconciliations of these measurements to their nearest GAAP measurements in the accompanying presentation which is available on our website at www.hecla-mining.com. Finally in our filings with the SEC we are only allowed to disclose mineral deposits that we can reasonably expect to economically and legally extract or produce. Investors are cautioned about our use of terms such as measured indicated and inferred resources which are not reserves and we urge you to consider the disclosures that we make in our SEC filings.
With that I will pass the call to Phil Baker.
Thanks Mike and good morning everyone. As you can see on slide four the third quarter was an eventful quarter for Hecla. We reversed the outspend [Phonetic] generating $29 million of cash flow. So as a result of that we were able to reduce our net revolver borrowing by $26 million. We generated about $70 million of adjusted EBITDA. We reached an agreement with the union a tentative agreement with the union at the Lucky Friday. We expanded Casa Berardis East Mines high-grade mineralization. And that mineralization could have material effect on future production potentially as early as 2021. And we made great progress on San Sebastians Hugh Zone and El Toro where decisions on both could be made next year. So let me take a moment and tell you where things stand with the union. Were glad there is a tentative agreement between the unions negotiating committee and the company that can be put before the membership for a vote.
Well, neither side got all that it wanted.