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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 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): May 6, 2021
 
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 May 6, 2021, the Company issued a news release announcing (i) a change to its common stock dividend policy, (ii) the declaration of a dividend on its shares of common stock in the amount of $0.01125, to shareholders of record as of May 20, 2021, payable on or about June 3, 2021, and (iii) declaration of a dividend of $0.875 on its Series B Cumulative Convertible Preferred Stock to shareholders of record as of June 15, 2021, payable on or about July 1, 2021. 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 (embedded within the Inline XBRL document)
 
 
 
 
 
 
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: May 6, 2021
 
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Exhibit 99.1

 

EX_247044IMG001.JPG
NEWS RELEASE

 

HECLA INCREASES SILVER-LINKED DIVIDEND

Silver-linked dividend increased 50% at $25 threshold

 

FOR IMMEDIATE RELEASE

May 6, 2021

 

COEUR D’ALENE, IDAHO -- Hecla Mining Company (“Hecla”)(NYSE:HL) is pleased to announce that its Board of Directors has increased the silver-linked dividend by $0.01 per year.

 

In September 2020, Hecla lowered the minimum threshold for payment of the silver-linked portion of its quarterly dividend where if Hecla’s average realized silver price for a quarter is $25 per ounce, the silver-linked quarterly dividend policy provided an annualized two cents per share. Today, Hecla is announcing that the Board is increasing the silver-linked dividend by $0.01 per share for each $5 increase in the quarterly average realized silver price per ounce above $25 per ounce.

 

“Our Board’s adoption of this increase reflects its confidence in Hecla’s cashflow performance and position as the United States’ largest silver producer,” said Hecla’s President and Chief Executive Officer, Phillips S. Baker, Jr. “We’ve enhanced our long-standing silver-linked portion of our dividend policy by increasing the payment by $0.01 per share. As prices rise, shareholders should get more of the Company’s cash flow which reflects continued strong operating and capital cost discipline.”

 

“Given Hecla’s realized quarterly silver price of $25.66 satisfied the Company’s dividend criteria, I’m pleased to announce the Board has approved payment of this quarter’s dividend at this increased rate.”

 

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     $.0075     $.03     $.015     $.045  
$30     $.0125     $.05     $.015     $.065  
$35     $.0225     $.09     $.015     $.105  
$40     $.0325     $.13     $.015     $.145  
$45     $.0425     $.17     $.015     $.185  
$50     $.0525     $.21     $.015     $.225  

 

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

 

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DIVIDENDS

 

Common

The Board of Directors elected to declare a quarterly cash dividend of $0.01125 per share of common stock, consisting of $0.00375 per share for the minimum dividend component and $0.0075 per share for the silver-linked dividend component. The common dividend is payable on or about June 3, 2021, to stockholders of record on May 20, 2021. The realized quarterly silver price of $25.66 satisfied the Company's dividend policy criteria for the silver-linked dividend component.

 

Preferred

The Board of Directors elected to declare a quarterly cash dividend of $0.875 per share of preferred stock, payable on or about July 1, 2021, to stockholders of record on June 15, 2021.

 

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 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.

 

For further information, please contact:

 

Jeanne DuPont

Senior 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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