Hecla Mining Company Announces Partial Redemption Notice of 7.25% Senior Notes
Strategic financing approach minimizing shareholder dilution and allowing for acceleration of value enhancing opportunities
Strategic Capital Optimization
During and following the end of the second quarter 2025, Hecla utilized its At-The-Market (“ATM”) financing facility to sell approximately 36 million common shares at an average price of
Pursuant to the terms of the indenture governing the Notes, the redemption price will equal 101.813% of the principal amount of Notes redeemed. The redemption is expected to occur on or about
In addition to the partial redemption of the Notes, subsequent to quarter end, the Company repaid in full from free cash flow generation its
"This financing strategy demonstrates our commitment to prudent capital management while positioning Hecla for sustained value creation," said
Reinvestment in
The interest savings from this debt reduction strengthens the Company’s balance sheet while enabling strategic reinvestment into the highest return opportunities across its portfolio of projects. Capital will be directed toward three key areas that meet the Company’s rigorous return criteria: optimizing production at current operations, expanding high-potential exploration programs, and advancing priority development projects. These targeted investments are designed to accelerate value creation from our existing asset base for sustained long-term growth.
The Company's mining operations are demonstrating their ability to produce strong free cash flow at today's robust metal prices. If metals prices continue at these levels, the Company expects future free cash flow generation to be sufficient to meet debt service requirements and support continued value-enhancing activities. In addition, proceeds from any future asset divestitures would also be available for further balance sheet strengthening and potential further debt reduction.
Balanced Financial Approach
This balanced capital allocation approach allows the Company to optimize its capital structure while maintaining operational flexibility and pursue growth opportunities in an accelerated manner. The financing strategy reflects the Company's commitment to operational excellence and strategic development initiatives that drive shareholder value.
"Our strong operational free cash flow generation provides us with the financial foundation to both service our debt and invest in growth," added
ABOUT HECLA
Founded in 1891,
Cautionary Statement Regarding Forward-Looking Statements
This news release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbor created by such sections and other applicable laws, including 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. Such forward-looking statements may include, without limitation: (i) expected timing of the redemption of the Notes; (ii) expected free cash flow generation and uses thereof; (iii) the Company’s ability to satisfy its future debt service obligations, including statements regarding future metals pricing; (iv) expected reduction in debt and strengthening of the Company’s balance sheet; and (v) expected future opportunities, including high-return growth opportunities and other value creation opportunities. 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. Estimates or expectations of future events or results are based upon certain assumptions, which may prove to be incorrect, which could cause actual results to differ from forward-looking statements. Such assumptions, include, but are not limited to: (i) there being no significant change to current geotechnical, metallurgical, hydrological and other physical conditions; (ii) permitting, development, operations and expansion of the Company’s projects being consistent with current expectations and mine plans; (iii) political/regulatory developments in any jurisdiction in which the Company operates being consistent with its current expectations; (iv) the exchange rate for the USD/CAD being approximately consistent with current levels; (v) certain price assumptions for gold, silver, lead and zinc; (vi) prices for key supplies being approximately consistent with current levels; (vii) the accuracy of our current mineral reserve and mineral resource estimates; (viii) there being no significant changes to the availability of employees, vendors and equipment; (ix) 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; (x) counterparties performing their obligations under hedging instruments and put option contracts; (xi) sufficient workforce is available and trained to perform assigned tasks; (xii) weather patterns and rain/snowfall within normal seasonal ranges so as not to impact operations; (xiii) relations with interested parties, including First Nations and
View source version on businesswire.com: https://www.businesswire.com/news/home/20250804750522/en/
For further information, please contact:
Vice President – Strategy and Investor Relations
Investor Relations Coordinator
Investor Relations
Email: hmc-info@hecla.com
Website: http://www.hecla.com
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