Hecla Mining Company Announces Partial Redemption Notice of 7.25% Senior Notes
Press Release
COEUR D’ALENE, Idaho Hecla Mining Company (NYSE:HL) announces the issuance of a notice of partial redemption for $212 million of its outstanding $475 million 7.25% Senior Notes due 2028 (the “Notes”).
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 $6.10 per share to raise the proceeds to fund the partial redemption of the Notes. This strategic use of the ATM minimizes shareholder dilution compared to traditional equity financing methods, which typically entail large discounts to the share price, while strengthening the Company’s balance sheet.
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 August 19, 2025, and will be effected on a pro rata basis. This news release does not constitute a Notice of Redemption of the Notes. If you hold Notes, please refer to the Notice of Redemption for redemption instructions and other information regarding the partial redemption of the Notes.
In addition to the partial redemption of the Notes, subsequent to quarter end, the Company repaid in full from free cash flow generation its CAD$50 million Senior Notes issued in 2020 to Investissement Quebec, an arm of the Quebec government.
“This financing strategy demonstrates our commitment to prudent capital management while positioning Hecla for sustained value creation,” said Rob Krcmarov, President and CEO of Hecla Mining Company. “By reducing our debt burden through this efficient capital raise, we’re enhancing financial flexibility and creating opportunities for strategic reinvestment in our business to accelerate investments in our potential high-return growth opportunities.”
Reinvestment in Value Creation
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 Russell D. Lawlar, Senior Vice President and Chief Financial Officer. “The utilization of our ATM facility to reduce debt positions us well for the future and allows us to capitalize on opportunities within our portfolio, while minimizing dilution to our shareholders.”
ABOUT HECLA
Founded in 1891, Hecla Mining Company (NYSE: HL) is the largest silver producer in the United States and Canada. In addition to operating mines in Alaska, Idaho, and Quebec, Canada, the Company is developing a mine in the Yukon, Canada, and owns a number of exploration and pre-development projects in world-class silver and gold mining districts throughout North America.
For further information, please contact:
Mike Parkin
Vice President – Strategy and Investor Relations
Cheryl Turner
Investor Relations Coordinator
Investor Relations
Email: hmc-info@hecla.com
Website: http://www.hecla.com
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