Hecla Mining Company ( is pleased to announce its Board of Directors has declared the third
consecutive quarterly dividend of $0.0225 per share of common stock for
a total amount of approximately $6.4 million.
The Company′s Board of Directors has also approved a stock repurchase
program. Under the program, Hecla is authorized to repurchase up to 20
million shares of its outstanding common stock from time to time, with
the purchases expected to occur over the next 24 months.
'Our Board′s action to declare the third consecutive silver-linked
dividend, continue our regular quarterly dividend, as well as approve a
stock repurchase program, reflects Hecla′s excellent operating margin
and strong financial position,? said Hecla′s President and Chief
Executive Officer, Phillips S. Baker, Jr. 'We believe our cash balances
and ongoing cash flow generation allows Hecla to deliver shareholder
value in three ways: by growing production 50% over the next five years,
paying dividends and repurchasing shares.?
Any purchases made under Hecla′s repurchase program may be made from
time to time in open market or privately negotiated transactions, upon
such terms as the Company deems appropriate, commencing at the
conclusion of its current quarterly blackout period. All purchases are
subject to stock price, market conditions, corporate and legal
requirements and other factors. Hecla intends to comply with Rule 10b-18
under the Securities Exchange Act of 1934. In the future, repurchases of
common stock may be made under a Rule 10b5-1 trading plan. This will
allow the Company to repurchase shares in the open market during periods
in which the stock trading window is otherwise closed for the Company.
The repurchase program may be modified, suspended or discontinued at any
time. The Company currently has approximately 285 million common shares
outstanding.
Third Consecutive Silver-linked Dividend and Regular Dividend
The dividend is part of Hecla′s common stock dividend policy, which
consists of a silver-linked dividend of $0.02 per share based on an
average realized silver price of $36.59 for the first quarter of 2012,
and a minimum annual dividend of $0.01 per share of common stock,
payable quarterly.
The cash dividend is payable June 8, 2012, to common shareholders of
record on May ?30, 2012. There are approximately 285 million shares of
common stock outstanding. Under Hecla′s silver price-linked dividend
policy, it is expected that any quarterly common stock dividend declared
by the Company will be based on Hecla′s average realized silver price
for the preceding quarter. Realized prices are calculated by dividing
gross revenues by the payable quantities of each metal included in
concentrate and dor? sold during the period. As noted above, the average
realized silver price per ounce was $36.59 in the first quarter of 2012
compared to the average market price of $32.66 (London PM Fix). Any
quarterly common stock dividend declared by Hecla will increase or
decrease by $0.01 per share ($0.04 annually) for each $5.00 per ounce
incremental increase or decrease in the average realized silver price in
the preceding quarter.
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
new policy is not a guarantee that a dividend will be declared or paid
in any particular period in the future.
Preferred Dividend
The Board of Directors has also elected to declare the regular quarterly
dividend of $0.875 per share on the outstanding Series B Cumulative
Convertible Preferred Stock, on a total of 157,816 shares outstanding.
This represents a total amount to be paid of approximately $138,000. The
cash dividend is payable July 2, 2012, to shareholders of record on June
15, 2012.
Cautionary Statements
Statements made which are not historical facts, such as anticipated
payments, litigation outcome, production, sales of assets, exploration
results and plans, prospects and opportunities including reserves,
resources, and mineralization, 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 and regulatory 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.
