Hecla Increases Silver-linked Dividend and Lowers Silver Trigger

Rhea-AI Summary

Hecla Mining Company (NYSE:HL) has announced an enhancement of its silver-linked dividend policy, lowering the threshold to a quarterly average realized silver price of $20. The company will increase the dividend by 33% when the silver price reaches $25. This reflects Hecla's robust free cash flow generated from its silver mines, which account for over 40% of U.S. silver production. Since 2010, Hecla has consistently paid dividends, enhancing its policy three times in the last year, showing financial discipline and commitment to shareholder returns.

Positive

• Increased silver-linked dividend by 33% at $25 silver price.
• Lowered threshold for silver-linked dividend to $20, enhancing accessibility for shareholders.
• Consistent dividend payments since 2010, demonstrating reliability.
• Strong free cash flow generation from U.S.'s largest silver mines.

Negative

• None.

 Silver price threshold lowered to $20 and silver-linked dividend increased 33% at $25

COEUR D’ALENE, Idaho--(BUSINESS WIRE)--

Hecla Mining Company (“Hecla”)(NYSE:HL) is pleased to announce that its Board of Directors is adding one cent for the silver-linked dividend starting at a new, lower quarterly average realized silver price of $20. The policy increases the quarterly dividend by 33% at $25 realized silver price threshold.

“Our further enhanced dividend policy reflects Hecla’s strong free cash flow generation from the United States’ largest and lowest cost silver mines that produce more than 40% of all the silver mined in the United States,” said Hecla’s President and Chief Executive Officer, Phillips S. Baker, Jr. “Hecla has consistently paid dividends since 2010 and has enhanced the policy three times in the last 12 months. Hecla’s dividend policy has the industry’s only silver-linked dividend providing sustainable returns to our shareholders and demonstrates our operational and financial discipline. And with the new policy shareholders receive a silver-linked dividend at a lower silver price and get a third more dividends at $25 silver.”

The table below provides an overview of the enhanced silver-linked dividend with a lower silver-linked price threshold.

Quarterly Average Realized Silver Price	Quarterly Silver-Linked Dividend	Annualized Silver-Linked Dividend	Annualized Minimum Dividends	Annualized Dividends: Silver-Linked & Minimum Dividends
$20	$0.0025	$.01	$.015	$.025
$25	$.01	$.04	$.015	$.055
$30	$.015	$.06	$.015	$.075
$35	$.025	$.10	$.015	$.115
$40	$.035	$.14	$.015	$.155
$45	$.045	$.18	$.015	$.195
$50	$.055	$.22	$.015	$.235

Visit Hecla’s website at www.hecla-mining.com which includes more in-depth information about the company, our people, our properties, interesting historical and silver facts, social responsibility initiatives and accomplishments, and a detailed investor section.

ABOUT HECLA

Founded in 1891, Hecla Mining Company (NYSE:HL) is the largest silver producer in the United States. In addition to operating mines in Alaska, Idaho and Quebec, Canada, the Company owns a number of exploration properties and pre-development projects in world-class silver and gold mining districts throughout North America.

Cautionary Statements

Statements made which are not historical facts, such as strategies, plans, anticipated payments, litigation outcome (including settlement negotiations), production, sales of assets, exploration results and plans, costs, and prices or sales performance are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “may”, “will”, “should”, “expects”, “intends”, “projects”, “believes”, “estimates”, “targets”, “anticipates” and similar expressions are used to identify these forward-looking statements. Forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from those projected, anticipated, expected, or implied. These risks and uncertainties include, but are not limited to, metals price volatility, volatility of metals production and costs, environmental and litigation risks, operating risks, project development risks, political risks, labor issues, ability to raise financing and exploration risks and results. Refer to the company's Form 10-K and 10-Q reports for a more detailed discussion of factors that may impact expected future results. The company undertakes no obligation and has no intention of updating forward-looking statements other than as may be required by law.

Category: Press Release

View source version on businesswire.com: https://www.businesswire.com/news/home/20210908005409/en/

Jeanne DuPont

Senior Communications Coordinator

800-HECLA91 (800-432-5291)

Email: hmc-info@hecla-mining.com

Website: www.hecla-mining.com

Source: Hecla Mining Company

FAQ

What is the new silver price threshold for Hecla Mining's dividend?

Hecla Mining has lowered the silver price threshold for its dividend to $20.

How much has Hecla Mining increased its silver-linked dividend?

Hecla Mining has increased its silver-linked dividend by 33% at a silver price of $25.

When does Hecla Mining pay its dividends?

Hecla Mining pays dividends quarterly, linked to the average realized silver price.

What percentage of U.S. silver production does Hecla Mining account for?

Hecla Mining produces over 40% of all silver mined in the United States.