Mr. Baker: Hecla Mining is a company that has been in existence for over 100 years, was established in 1891 in the Silver Valley of Idaho, and we've been operating continuously ever since. The company has been in other places than North Idaho; we're also in Alaska, Colorado and Mexico. Over the years, we've been in a number countries and states in the U.S., but at this point we've major operations in North Idaho - the Lucky Friday mine that we've been operating since the late 1950s. It's actually a property that's been in operation since the early 1940s. And then we have the sixth largest silver mine in the world in Alaska called Greens Creek, where we have been a partner in that property since 1987, and we've owned all of it since last year, since 2008. So it's a company that today has the most silver production, the most revenue, the most cash flow based on the last quarter in its history. So it's an exciting time for Hecla.
TWST: What is your perspective on how the silver markets have performed over the past six months? Where are we headed over the next six to 12 months?
Mr. Baker: Silver is a unique metal because it has characteristics of the industrial metals that we use to live our normal, modern lives as well as a precious metal element. It ties to gold; it has been a currency metal. And so we've seen over the last six months the effect of both of those features of silver. As a result, when the base metals came off dramatically, silver came off more than gold did. But you've seen this year silver outperform gold. Where I think you're going to see the price of silver go over the course of the next number of years is higher, as a result of both of those characteristics. To the extent you see gold move up, silver will follow. And to the extent that our economies - not just the U.S. economy, but the world economy - to the extent that grows, you'll see silver being in great demand because it's used in so many products around the world. Electronics - you've all of these cell phones, these new smartphones - all use just a little bit of silver as do medical uses and water treatment facilities. And there's just a thousand different applications for silver. So the outlook for silver in its demand as both a precious metal and a metal for consumer or industrial use is excellent.
Tickers included in this excerpt: HL
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