Hecla Increases Quarterly Dividend And Enhances The Silver-Linked Dividend

COEUR D’ALENE, ID - Hecla Mining Company reported that its Board of Directors has increased the quarterly dividend 50% and lowered the realized price threshold for the silver-linked dividend. Since 2012, Hecla’s minimum quarterly dividend has been an annualized one cent per share in addition to a silver-linked dividend. Hecla is announcing that the Board is increasing the expected minimum quarterly dividend 50% to an annualized one and one-half cents per share and lowering the silver-linked dividend threshold price. If Hecla’s average realized silver price for a quarter is $25.00 per ounce, the new silver-linked quarterly dividend policy provides an annualized two cents per share, while at $30 and above, the realized silver-linked dividend per quarter is unchanged.

“Our Board’s adoption of this improved dividend policy reflects Hecla’s position as the United States’ largest silver producer with mines that have strong operating performance and high silver margins,” said Hecla’s President and Chief Executive Officer, Phillips S. Baker, Jr. “Our long-standing dividend policy has been enhanced with a larger base dividend and a lower price trigger for the silver-linked dividend. As prices rise, shareholders should get more of the company’s cash flow which imposes continued strong operating and capital cost discipline. Given Hecla’s realized prices quarter to date, if in September Hecla realizes $25 per silver ounce sold, the dividend paid in the fourth quarter is expected to be 3.5 times higher than the last dividend paid. So, the enhanced policy gives shareholders a substantial increase in their returns or more than a dollar dividend for every ounce of silver Hecla produces in the quarter.”