UPDATE 2-Hecla cuts capex plan, sees silver prices falling further

Fri May 10, 2013 3:51pm EDT
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* Second-quarter realized prices to be lower than first quarter: CEO

* Average realized silver price/ounce falls 21 pct in first quarter

* Hecla reiterates full-year cash cost outlook

* Shares fall as much as 5 pct

By Garima Goel

May 10 (Reuters) - Hecla Mining Co, the No. 2 U.S. silver miner by output, cut its capital spending plan for the year by 5 percent and said it expects metal prices to extend their decline in the second quarter.

The company said first-quarter sales fell 16 percent to $76.5 million, well below analysts' average estimate of $94.78 million, due mainly to lower silver prices and higher costs.

Hecla said its average realized silver prices fell 21 percent to $28.86 per ounce in the quarter.

"Our realized price will largely track the current spot price of the metal," Chief Executive Phillips Baker told Reuters in a telephone interview.   Continued...