Andrew Dusome's questions to Hecla Mining Co (HL) leadership • Q1 2025
Question
Andrew Dusome asked for more color on the drivers of increasing labor costs at the Lucky Friday mine. He also questioned why Casa Berardi's cost of sales guidance was increased while its production and cash cost guidance remained unchanged.
Answer
Robert Krcmarov, President & CEO, and Russell Lawlar, SVP & CFO, attributed the higher labor costs at Lucky Friday to two main factors: the use of higher-cost contractors and profit-sharing bonuses paid out due to the mine's strong operational performance. Regarding Casa Berardi, Lawlar clarified that the cost of sales is a GAAP metric that includes non-cash costs, and despite higher Q1 costs, the company's models still project meeting the full-year cash cost and AISC guidance.