hl20210712_8k.htm

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): July 13, 2021

HECLA MINING COMPANY
(Exact name of registrant as specified in its charter)

Delaware	1-8491	77-0664171
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

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 2.02 Results of Operations and Financial Condition.

On July 13, 2021, Hecla Mining Company (the “Company”) issued a news release (“Release”) announcing certain preliminary production and financial results for the second quarter ended June 30, 2021. All measures of the Company's second quarter 2021 operating and financial results and conditions contained in the Release are preliminary and reflect the Company’s expected results as of the date of the Release. Actual reported second quarter 2021 results are subject to management's final review as well as review by the Company's independent registered accounting firm and may vary significantly from current expectations because of a number of factors, including, without limitation, additional or revised information and changes in accounting standards or policies or in how those standards are applied. A copy of the Release is attached as Exhibit 99.1 to this Current Report and is incorporated herein by reference.

In accordance with General Instruction B.2 of Form 8-K, the information in Item 2.02, including Exhibit 99.1, is being furnished and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section, and shall not be incorporated by reference into any of the Company’s filings or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

Exhibit Number		Description

99.1		News Release dated July 13, 2021.*

104		Cover Page Interactive Data File (embedded within the Inline XBRL document).

		* 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: July 13, 2021

Exhibit 99.1

NEWS RELEASE

HECLA ANNOUNCES Q2 2021 PRODUCTION

FOR IMMEDIATE RELEASE

July 13, 2021

COEUR D'ALENE, IDAHO -- Hecla Mining Company (NYSE:HL) today announced its preliminary silver and gold production for the second quarter of 2021.¹

HIGHLIGHTS

●

Silver production of 3.5 million ounces, an increase of 4% due to full production at Lucky Friday.

●

Gold production of 59,139 ounces, a decrease of 1%.

●

Zinc production decreased 4% due to lower grades at Greens Creek and lead production increased 29% due to Lucky Friday production.

●

Production of all metals was higher than the first quarter of 2021.

●

Silver equivalent production of 10.1 million ounces or gold equivalent production of 148,161 ounces.²

●

Quarter-end cash position of approximately $181 million.

“With steady growth in silver production at the Lucky Friday Mine and solid operating performance from our Greens Creek Mine, we achieved our second highest quarterly silver production since 2016,” said Hecla’s President and CEO, Phillips S. Baker, Jr. “This strong performance combined with steady prices delivered an increase of approximately $41 million in cash, the fifth consecutive quarter of increasing cash reserves and one of the highest increases in Hecla’s history. With the Company’s U.S. vaccination rate higher than the U.S. average including Greens Creek at a nearly 90% vaccination rate, and Casa Berardi vaccinations increasing, we expect to build on these results.”

OPERATIONS

Greens Creek

At the Greens Creek Mine, 2.6 million ounces of silver and 12,859 ounces of gold were produced. The decrease in silver production compared to the second quarter of 2020 was due to lower grades resulting from mine sequencing. The mill operated at an average of 2,362 tons per day (tpd).

Casa Berardi

At the Casa Berardi Mine, 31,332 ounces of gold were produced. The increase in gold ounces compared to the second quarter of 2020 was due to higher mill throughput, partially offset by lower grades. The mill operated at an average of 4,117 tpd.

(1)	See cautionary statement regarding preliminary statements at the end of this release.

(2)	Silver and gold equivalent calculation based on average actual prices for each metal in the first quarter as follows: $26.70 for Ag, $1,816 for Au, $0.96 for Pb, and $1.32 for Zn.

Hecla Mining Company ● 1-800-432-5291 ● [email protected]

Lucky Friday

At the Lucky Friday Mine, 913,294 ounces of silver were produced in the quarter, an increase of 95% compared to the second quarter of 2020 due to the return to full production in the fourth quarter of 2020. The mill operated at an average of 906 tpd.

Nevada Operations

At the Nevada operations, 14,947 ounces of gold and 45,125 ounces of silver were produced from processing previously stockpiled ore, including oxide material processed at the Midas mill and a bulk sample of refractory material processed at a third-party facility. With the completion of processing the oxide material, the Fire Creek Mine and Midas mill were placed on care and maintenance during the quarter. In the second half of 2021, approximately 10,000 tons of refractory material is expected to be processed as a test at a third-party autoclave facility. Development for the Hatter Graben deposit at Hollister and exploration at Midas are ongoing.

PRODUCTION SUMMARY

	Second Quarter Ended			Six Months Ended
	June 30, 2021	June 30, 2020		June 30, 2021	June 30, 2020
PRODUCTION			Increase/ (Decrease)			Increase/ (Decrease)
Silver	3,524,782	3,403,781	4%	6,984,227	6,649,250	5%
Gold	59,139	59,982	(1)%	111,143	118,774	(6)%
Lead	11,541	8,977	29%	22,245	14,870	50%
Zinc	17,211	17,855	(4)%	33,318	30,702	9%
Greens Creek - Silver	2,558,447	2,753,919	(7)%	5,143,317	5,529,626	(7)%
Greens Creek - Gold	12,859	13,104	(2)%	26,125	25,377	3%
Lucky Friday - Silver	913,294	469,537	95%	1,777,194	565,285	214%
San Sebastian - Silver	- -	158,842	N/A	- -	505,467	N/A
San Sebastian - Gold	- -	1,331	N/A	- -	4,133	N/A
Casa Berardi - Gold	31,332	30,756	2%	67,522	57,508	17%
Nevada Operations - Silver (oz)¹	45,125	15,988	182%	45,125	37,443	21%
Nevada Operations - Gold (oz)¹	14,947	14,791	1%	17,495	31,756	(45)%

(1)	At the Nevada operations, stockpiled ore milled in the second quarter of 2021.

STRENGTHENING THE BALANCE SHEET

Cash and cash equivalents are expected to be approximately $181 million as of June 30, 2021, with the revolving line of credit undrawn.

Hecla Mining Company ● 1-800-432-5291 ● [email protected]

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 and pre-development projects in world-class silver and gold mining districts throughout North America.

Cautionary Statements Regarding Estimates and Forward-Looking Statements

All measures of the Company's second quarter 2021 operating and financial results and conditions contained in this release are preliminary and reflect the Company’s expected results as of the date of this release. Actual reported second quarter 2021 results are subject to management's final review as well as review by the Company's independent registered accounting firm and may vary significantly from current expectations because of a number of factors, including, without limitation, additional or revised information and changes in accounting standards or policies or in how those standards are applied.

Statements made or information provided in this news release that are not historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and "forward-looking information" within the meaning of Canadian securities laws. 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 in this news release may include, without limitations, in the second half of 2021, approximately 10,000 tons of refractory material is expected to be processed as a test at a third-party autoclave facility. The material factors or assumptions used to develop such forward-looking statements or forward-looking information include that the Company’s plans for development and production will proceed as expected and will not require revision as a result of risks or uncertainties, whether known, unknown or unanticipated, to which the Company’s operations are subject.

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, litigation, regulatory and environmental 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:

Russell Lawlar

Sr. Vice President – CFO and Treasurer

Jeanne DuPont

Senior Communications Coordinator

800-HECLA91 (800-432-5291)

Investor Relations

Email: [email protected]

Website: www.hecla-mining.com

Hecla Mining Company ● 1-800-432-5291 ● [email protected]