hl20200901_8k.htm
false 0000719413 0000719413 2020-09-01 2020-09-01 0000719413 hl:CommonStockCustomMember 2020-09-01 2020-09-01 0000719413 hl:SeriesBCumulativeConvertiblePreferredStockCustomMember 2020-09-01 2020-09-01
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
____________________
 
FORM 8-K
 
Current Report
PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
 
Date of Report (Date of earliest event reported): September 1, 2020
 
HECLA MINING COMPANY
(Exact name of registrant as specified in its charter)
 
Delaware 1-8491 77-0664171
(State or other jurisdiction (Commission File Number) (IRS Employer Identification No.)
of incorporation)    
6500 North Mineral Drive, Suite 200
Coeur d'Alene, Idaho 83815-9408
(Address of principal executive offices) (Zip Code)
 
(208) 769-4100
Registrant's telephone number, including area code
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
Securities registered pursuant to Section 12(b) of the Act:
 
Title of each class Trading Symbol(s) Name of each exchange on which registered
Common Stock, par value $0.25 per share
HL
New York Stock Exchange
Series B Cumulative Convertible Preferred Stock, par value $0.25 per share
HL-PB
New York Stock Exchange
 
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
 
Emerging growth company
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
 
 

 
Item 8.01 Other Events
 
On September 1, 2020, Hecla Mining Company issued a news release regarding its dividend policy. A copy of the news release is attached as Exhibit 99.1 to this Current Report.
 
Item 9.01 Financial Statements and Exhibits.
 
(d) Exhibits
 
Exhibit
Number
 
Description
     
99.1
 
104
 
 
 
Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).
 
* Furnished herewith
 
     
 
 
 
SIGNATURE
 
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
HECLA MINING COMPANY
       
By:
/s/ David C. Sienko
David C. Sienko
Vice President and General Counsel
 
 
Dated: September 1, 2020
 
 
2
 
ex_202391.htm

Exhibit 99.1

 

NEWS RELEASE
   

HECLA INCREASES QUARTERLY DIVIDEND 50% AND

ENHANCES THE SILVER-LINKED DIVIDEND

Policy lowers the trigger for the silver-linked dividend to $25

 

FOR IMMEDIATE RELEASE

September 1, 2020

 

COEUR D’ALENE, IDAHO -- Hecla Mining Company (“Hecla”)(NYSE:HL) is pleased to announce that its Board of Directors has increased the quarterly dividend 50% and lowered the realized price threshold for the silver-linked dividend.

 

Since 2012, Hecla’s minimum quarterly dividend has been an annualized one cent per share in addition to a silver-linked dividend. Today, Hecla is announcing that the Board is increasing the expected minimum quarterly dividend 50% to an annualized one and one-half cents per share and lowering the silver-linked dividend threshold price. If Hecla’s average realized silver price for a quarter is $25.00 per ounce, the new silver-linked quarterly dividend policy provides an annualized two cents per share, while at $30 and above, the realized silver-linked dividend per quarter is unchanged.

 

“Our Board’s adoption of this improved dividend policy reflects Hecla’s position as the United States’ largest silver producer with mines that have strong operating performance and high silver margins,” said Hecla’s President and Chief Executive Officer, Phillips S. Baker, Jr. “Our long-standing dividend policy has been enhanced with a larger base dividend and a lower price trigger for the silver-linked dividend. As prices rise, shareholders should get more of the company’s cash flow which imposes continued strong operating and capital cost discipline.”

 

“Given Hecla’s realized prices quarter to date, if in September Hecla realizes $25 per silver ounce sold, the dividend paid in the fourth quarter is expected to be 3.5 times higher than the last dividend paid. So, the enhanced policy gives shareholders a substantial increase in their returns or more than a dollar dividend for every ounce of silver Hecla produces in the quarter.”

 

The table below provides an overview of the augmented silver-linked dividend policy and the increased minimum dividends.

 

Quarterly

Average Realized

Silver Price

Quarterly

Silver-Linked

Dividend

Annualized

Silver-Linked

Dividend

Annualized

Minimum

Dividends

Annualized Dividends:

Silver-Linked &

Minimum Dividends

$25

$.005

$.02

$.015

$.035

$30

$.01

$.04

$.015

$.055

$35

$.02

$.08

$.015

$.095

$40

$.03

$.12

$.015

$.135

$45

$.04

$.16

$.015

$.175

$50

$.05

$.20

$.015

$.215

$55

$.06

$.24

$.015

$.255

$60

$.07

$.28

$.015

$.295

 

Hecla Mining Company ● 1-800-432-5291● hmc-info@hecla-mining.com            

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The declaration and payment of dividends remains at the sole discretion of the Board of Directors and will depend on Hecla’s financial results, cash requirements (including for preferred dividends, operations, capital projects, exploration and development, litigation and settlements, acquisitions, and other items), future prospects and other factors deemed relevant by the Board. Investors are cautioned that this revised dividend policy is not a guarantee that a dividend will be declared or paid in any particular period in the future.

 

Visit Hecla’s new 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

 

Established in 1891, Hecla Mining Company is the largest and lowest cash cost silver producer in the U.S. The company has two operating mines and exploration properties in four world-class silver mining districts in the U.S. and Mexico.

 

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.

 

For further information, please contact:

 

Jeanne DuPont

IR Communications Coordinator

800-HECLA91 (800-432-5291)

Email: hmc-info@hecla-mining.com

Website: www.hecla-mining.com

 

Hecla Mining Company ● 1-800-432-5291● hmc-info@hecla-mining.com

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v3.20.2
Document And Entity Information
Sep. 01, 2020
Document Information [Line Items]  
Entity, Registrant Name HECLA MINING COMPANY
Document, Type 8-K
Document, Period End Date Sep. 01, 2020
Entity, Incorporation, State or Country Code DE
Entity, File Number 1-8491
Entity, Tax Identification Number 77-0664171
Entity, Address, Address Line One 6500 North Mineral Drive, Suite 200
Entity, Address, City or Town Coeur d'Alene
Entity, Address, State or Province ID
Entity, Address, Postal Zip Code 83815-9408
City Area Code 208
Local Phone Number 769-4100
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity, Emerging Growth Company false
Amendment Flag false
Entity, Central Index Key 0000719413
CommonStock Custom [Member]  
Document Information [Line Items]  
Title of 12(b) Security Common Stock
Trading Symbol HL
Security Exchange Name NYSE
SeriesBCumulativeConvertiblePreferredStock Custom [Member]  
Document Information [Line Items]  
Title of 12(b) Security Series B Cumulative Convertible Preferred Stock
Trading Symbol HL-PB
Security Exchange Name NYSE