8-K
Hecla Mining Co/De/ (HL)
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): April 12, 2022
HECLA MINING COMPANY
(Exact name of registrant as specified in its charter)
| Delaware | 1-8491 | 77-0664171 |
|---|---|---|
| (State or other jurisdiction<br><br> <br>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<br><br> <br>Symbol(s) | Name of each exchange on<br><br> <br>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 April 12, 2022, Hecla Mining Company (the “Company”) issued a news release (“Release”) announcing certain preliminary production results for the first quarter ended March 31, 2022. All measures of the Company's first quarter 2022 operating results contained in the Release are preliminary and reflect the Company’s expected results as of the date of the Release. Actual reported first quarter 2022 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 April 12, 2022.* |
| 104 | Cover Page Interactive Data File (formatted as inline XBRL). |
| * Furnished herewith |
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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: April 12, 2022
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ex_357516.htm
Exhibit 99.1
| NEWS RELEASE |
|---|
HECLA ANNOUNCES Q1 2022 PRODUCTION
Silver production increased and zinc production is steady
FOR IMMEDIATE RELEASE
April 12, 2022
COEUR D'ALENE, IDAHO -- Hecla Mining Company (NYSE: HL) today announced its preliminary silver and gold production for the first quarter of 2022.^1^
HIGHLIGHTS
| ● | Silver production of 3.3 million ounces, an increase of 3% over the fourth quarter of 2021 due to higher grades mined at Greens Creek. |
|---|---|
| ● | Gold production of 41,642 ounces. |
| --- | --- |
| ● | Lead and Zinc production was in line with the prior quarter. |
| --- | --- |
| ● | Silver equivalent production of 9.7 million ounces, gold equivalent production of 123,537 ounces.^2^ |
| --- | --- |
“Hecla, United States’ largest silver producer with the country’s largest reserves, saw solid production from all three operations,” said Hecla’s President and CEO Phillips S. Baker, Jr. “Greens Creek’s production increased due to slightly higher grades. Lucky Friday’s production has now had six quarters with production above 830 thousand ounces, positioning production to grow to over a million ounces a quarter for the remainder of the year. At Casa Berardi, production was as planned with the mill processing more 160 Pit material.”
“Hecla is on track to grow silver production this year and for each of the next two years while also being the United States’ third largest zinc producer. Zinc, like silver, is a critical mineral in the energy transition and is approaching its all-time high price set 15 years ago.”
OPERATIONS
Greens Creek
Greens Creek produced 2.4 million ounces of silver and 11,402 ounces of gold compared to 2.3 million ounces of silver and 10,229 ounces of gold in the prior quarter. The increase in production was primarily due to higher grades. The mill operated at an average of 2,352 tons per day (tpd).
Casa Berardi
Casa Berardi produced 30,240 ounces compared to 37,266 ounces in the prior quarter. The anticipated decrease in production was expected since surface tons are lower grade. The increase in surface tons is from the 160 Pit, which commenced ore production in the fourth quarter of 2021. The mill operated at an average of 4,291 tpd compared to an average of 4,207 tpd in the prior quarter.
Lucky Friday
At the Lucky Friday mine, 888 thousand ounces of silver were produced compared to 955 thousand ounces in the prior quarter. Fewer tons and lower silver grades were mined due to equipment delays that affected mine sequencing. The equipment is being received this quarter. The mill operated at an average of 864 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: $23.94 for Ag, $1,873.63 for Au, $1.06 for Pb, and $1.70 for Zn. |
| --- | --- |
Hecla Mining Company ● 1-800-432-5291 ● hmc-info@hecla-mining.com
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PRODUCTION SUMMARY
| Quarter Ended | **** | **** | **** | ||||
|---|---|---|---|---|---|---|---|
| March 31, 2022 | December 31, 2021 | % Increase (decrease) | |||||
| PRODUCTION | **** | **** | **** | **** | **** | **** | **** |
| Silver (oz) | **** | 3,324,709 | 3,226,927 | **** | 3 | % | |
| Gold (oz) | **** | 41,642 | 47,977 | **** | (13 | )% | |
| Lead (tons) | **** | 10,863 | 10,863 | **** | 0 | % | |
| Zinc (tons) | **** | 14,947 | 14,754 | **** | 1 | % | |
| Greens Creek – Silver (oz) | **** | 2,429,782 | 2,262,635 | **** | 7 | % | |
| Greens Creek – Gold (oz) | **** | 11,402 | 10,229 | **** | 11 | % | |
| Lucky Friday – Silver (oz) | **** | 887,858 | 955,401 | **** | (7 | )% | |
| Casa Berardi – Gold (oz) | **** | 30,240 | 37,266 | **** | (19 | )% | |
| Nevada Operations – Gold (oz) ^1^ | **** | - - | 482 | **** | n/a | ||
| (1) | At the Nevada operations, stockpiled ore milled in 2021. | ||||||
| --- | --- |
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 first quarter 2022 operating results contained in this release are preliminary and reflect the Company’s expected results as of the date of this release. Actual reported first quarter 2022 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, Lucky Friday silver production may grow to over a million ounces a quarter for the remainder of the year, and the Company is on track to grow silver production this year and for each of the next two years. 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 2021 Form 10-K filed February 22, 2022,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.
Hecla Mining Company ● 1-800-432-5291 ● hmc-info@hecla-mining.com
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For further information, please contact:
Anvita M. Patil
Vice President – Investor Relations and Treasurer
Jeanne DuPont
Senior Communications Coordinator
800-HECLA91 (800-432-5291)
Investor Relations
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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