Hecla Is Protecting Its Stakeholders From COVID-19
March 19 2020 - 6:30AM
Business Wire
Price Protection, Safety System, Supply Levels
and Balance Sheet Strengthen Operations
Hecla Mining Company (NYSE:HL) today provided a summary of the
activities undertaken to protect its business, employees and local
communities from COVID-19. Hecla has corporately and within its
mine sites taken significant measures including:
- Securing contracts that guarantee a $16 per ounce silver price
for the second quarter and $1,450 and $1,650 per ounce gold price
for the second and third quarter, respectively, while maintaining
exposure to the upside, after transaction costs.
- Implemented and followed recommended health and hygiene
protocols.
- Restricted mine site staff to essential personnel and
contractors.
- Stockpiled critical mining supplies (up to six months’ worth in
some cases) to protect against possible future supply
disruptions.
- Completed the $475 million Senior Note refinancing in February,
significantly de-risking the business by extending the maturity to
2028.
- Renewed our $250 million revolving credit facility for the next
three years which could provide working capital needs if
necessary.
“Over the past year, Hecla took steps to de-risk all aspects of
the business, which now puts us in a position to respond to
COVID-19,” said Phillips S. Baker, Jr., President and CEO. “While
Hecla is at risk like any other business, we have not seen any
disruptions with our customers or suppliers, we have bought put
options which should offer us some protection from recent weakness
in the silver and gold prices and our employees are diligently
implementing our safety and hygiene systems. We believe our
129-year culture of preparedness and flexibility is helping us
adjust to this challenge.”
ABOUT HECLA
Founded in 1891, Hecla Mining Company (NYSE:HL) is a leading
low-cost U.S. silver producer with operating mines in Alaska, Idaho
and Mexico, and is a growing gold producer with operating mines in
Quebec, Canada, and Nevada. The Company also has exploration and
pre-development properties in eight world-class silver and gold
mining districts in the U.S., Canada and Mexico.
Cautionary Statements Regarding Forward Looking
Statements
This 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. When a forward-looking statement expresses or implies an
expectation or belief as to future events or results, such
expectation or belief is expressed in good faith and believed to
have a reasonable basis. However, such statements are subject to
risks, uncertainties and other factors, which could cause actual
results to differ materially from future results expressed,
projected or implied by the forward-looking statements.
Forward-looking statements often address our expected future
business and financial performance and financial condition; and
often contain words such as “anticipate,” “intend,” “plan,” “will,”
“could,” “would,” “estimate,” “should,” “expect,” “believe,”
“project,” “target,” “indicative,” “preliminary,” “potential” and
similar expressions. Forward-looking statements in this news
release may include, without limitation: (i) our 129-year culture
of preparedness and flexibility is helping us adjust to this
challenge. 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) certain price assumptions for gold, silver, lead
and zinc; (v) prices for key supplies being approximately
consistent with current levels; (vi) the accuracy of our current
mineral reserve and mineral resource estimates; (vii) 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; (viii) sufficient
workforce is available and trained to perform assigned tasks; (ix)
factors do not arise that reduce available cash balances, and (x)
there being no material increases in our current requirements to
post or maintain reclamation and performance bonds or collateral
related thereto.
In addition, material risks that could cause actual results to
differ from forward-looking statements include, but are not limited
to: (i) gold, silver and other metals price volatility; (ii)
operating risks; (iii) currency fluctuations; (iv) increased
production costs and variances in ore grade or recovery rates from
those assumed in mining plans; (v) community relations; (vi)
conflict resolution and outcome of projects or oppositions; (vii)
litigation, political, regulatory, labor and environmental risks;
(viii) exploration risks and results, including that mineral
resources are not mineral reserves, they have not demonstrated
economic viability and there is no certainty that they can be
upgraded to mineral reserves through continued exploration; and
(ix)) we are unable to remain in compliance with all terms of the
credit agreement in order to maintain continued access to the
revolver. For a more detailed discussion of such risks and other
factors, see the Company’s 2019 Form 10-K, filed on February 13,
2020, and Form 10-Qs filed on May 9, 2019, August 7, 2019, and
November 7, 2019, with the Securities and Exchange Commission
(SEC), as well as the Company’s other SEC filings. The Company does
not undertake any obligation to release publicly revisions to any
“forward-looking statement,” including, without limitation,
outlook, to reflect events or circumstances after the date of this
presentation, or to reflect the occurrence of unanticipated events,
except as may be required under applicable securities laws.
Investors should not assume that any lack of update to a previously
issued “forward-looking statement” constitutes a reaffirmation of
that statement. Continued reliance on “forward-looking statements”
is at investors’ own risk.
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version on businesswire.com: https://www.businesswire.com/news/home/20200319005190/en/
Mike Westerlund Vice President – Investor Relations 800-HECLA91
(800-432-5291) Investor Relations Email: hmc-info@hecla-mining.com
Website: www.hecla-mining.com
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