Revenue during the quarter grew 8.80 percent to $142.54 million from $131.02 million in the previous year period. Gross margin for the quarter expanded 97 basis points over the previous year period to 24.49 percent. Total expenses were 88.87 percent of quarterly revenues, up from 88.11 percent for the same period last year. That has resulted in a contraction of 75 basis points in operating margin to 11.13 percent.

Operating income for the quarter was $15.87 million, compared with $15.57 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $53.94 million compared with $46.47 million in the prior year period. At the same time, adjusted EBITDA margin improved 238 basis points in the quarter to 37.84 percent from 35.47 percent in the last year period.

"We have started 2017 with strong sales, net income and free cash flow, and our silver margins remain among the top in the industry, driving an increase in cash balances and strengthening our balance sheet," said Phillips S. Baker, Jr., president and chief executive officer. "While the increase of cost of sales over last year reflected the higher throughput from the Casa Berardi open pit operations, our cash cost, after by-product credits, declined 73% to $0.84 per silver ounce and our AISC, after by-product credits, declined 24% to $7.60 per silver ounce. For the remainder of 2017, our focus is on growing reserves and resources, investing in new technologies that will increase productivity, mine life and margins, and advancing the underground at San Sebastian as well as optimizing the open pits at Casa Berardi. In addition, we are focused on working to end the strike at Lucky Friday. In the meantime, we are suspending our Lucky Friday and Company-wide estimates for silver production and cost, until it is resolved."

The company has spent $29.08 million cash to meet investing activities during the quarter as against cash outgo of $38.34 million in the last year period. It has incurred net capital expenditure of $21.60 million on net basis during the quarter, down 37.29 percent or $12.84 million from year ago period.

The company has spent $4.01 million cash to carry out financing activities during the quarter as against cash outgo of $3.14 million in the last year period.

Cash and cash equivalents stood at $176.79 million as on Mar. 31, 2017, up 31.91 percent or $42.77 million from $134.02 million on Mar. 31, 2016.

Working capital increases sharply
Hecla Mining Company has recorded an increase in the working capital over the last year. It stood at $182.50 million as at Mar. 31, 2017, up 26.70 percent or $38.46 million from $144.04 million on Mar. 31, 2016. Current ratio was at 2.38 as on Mar. 31, 2017, up from 2.08 on Mar. 31, 2016.

Cash conversion cycle (CCC) has decreased to 5 days for the quarter from 31 days for the last year period. Days sales outstanding went down to 26 days for the quarter compared with 36 days for the same period last year.

Days inventory outstanding has decreased to 23 days for the quarter compared with 45 days for the previous year period. At the same time, days payable outstanding went down to 43 days for the quarter from 49 for the same period last year.