Silver-linked dividend increased 50% at $25 threshold

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

DIVIDENDS
Common

TheBoard 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

TheBoard 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.

Hecla Reports First Quarter 2021 Results.
Company Release - 5/6/2021
Record cash margin and adjusted EBITDA and second highest revenue in 130-year history

COEUR D'ALENE, IDAHO--(BUSINESS WIRE)-- Hecla Mining Company (NYSE:HL) (Hecla or the Company) today announced first quarter 2021 financial and operating results.

HIGHLIGHTS

Sales of $210.9 million, second highest in the 130-year history, a 54% increase over prior year.
Gross profit of $64.8 million, an increase of $53.4 million over prior year.
Cash provided by operating activities of $37.9 million and $16.5 million of quarterly free cash flow1.
Silver production of 3.5 million ounces, a 7% increase over prior year period.
Net income applicable to common shareholders of $18.8 million, or $0.04 per share (basic).
Adjusted net income applicable to common stockholders of $30.6 million, or $0.06 per share.2
Record Adjusted EBITDA of $86.1 million; net debt/adjusted EBITDA (last 12 months) of 1.4x.4
Strong liquidity with quarter-end cash position of $139.8 million and undrawn revolving credit facility.
Increased the silver -linked dividend at the $25 per ounce silver price threshold by 50% to $0.03 annually. Board has also increased each level of the silver-linked dividend by $0.01 per year.
Greens Creek AISC6 in the first quarter of $1.59 per silver ounce and a new estimate for the year of less than $7.25.
Ratings upgrade from Moody's with Corporate Family Rating (CFR) upgraded to B2 from B3.
Continued safe management of COVID-19 across all our operations.
Sustainability report outlining our 2020 ESG performance and exploration results to be released in conjunction with the Company's Annual Meeting of Shareholders on May 19, 2021.
"The strong performance Hecla has had in five of the last six quarters continued in the first quarter of 2021 with the second highest sales in our history, a new record for EBITDA and gross profit on sales that is about a third higher than the next closest quarter," said Phillips S. Baker, Jr., President and CEO. "Free cash flow generation was the most Hecla has had in the first quarter in a decade. Since the first quarter is typically our smallest quarter, we anticipate cash flow increasing over the rest of the year. Therefore, the Board has increased the silver-linked dividend at the $25 price threshold by 50% to $0.03 per share annually."

Mr. Baker continued, "The backdrop for silver remains very positive with improving industrial demand due to global policies that support green energy where silver is a key component, strong investment demand and tight supply. Hecla is in a key position as the United States' largest silver producer, mining more than a third of all U.S. production, which should increase as our U.S. silver production is anticipated to be 15 million ounces by 2023 with the Lucky Friday's silver production expected to increase to 5 million ounces by then."

FINANCIAL OVERVIEW
go to
https://ir.hecla-mining.com/news-events/current-news/news-details/2021/Hecla-Reports-First-Quarter-2021-Results/default.aspx

Hecla Mining Co NYSE:HL 07:46 7.22 USD +0.97 +15.52%