Hecla Mining Co.

Hecla Mining Co. is a senior silver producer headquartered in Coeur d’Alene, United States, operating primarily in Canada and USA. The company's portfolio consists of 6 projects, comprising 4 operating mines and 2 exploration projects, in addition to several early-stage exploration prospects. Key assets include Lucky Friday, Greens Creek, and Keno Hill. The business model is centered on an integrated approach that includes the discovery, acquisition, and development of mineral interests. The enterprise produces and markets a diverse range of products, including various concentrates, carbon materials, and unrefined doré bars, which are sold to a global customer base of custom smelters, metal traders, and third-party processors. A key operational characteristic is the utilization of multiple processing technologies, such as flotation, gravity concentration, and carbon-in-leach cyanidation, tailored to specific ore types. The company has developed and implemented a patented Underhand Closed Bench mining method, designed to proactively manage seismicity in deep, high-stress, narrow-vein environments, thereby enhancing safety and productivity. To mitigate commodity price volatility inherent in its sales contracts, which are subject to final price adjustments after shipment, the organization utilizes financially-settled forward contracts. This risk management strategy aims to insulate operating results from price fluctuations between the time of sale and final settlement.

Strategic priorities are anchored in strengthening the balance sheet and enhancing capital allocation with a clear focus on Return On Invested Capital and free cash flow generation. A core objective is the continuous improvement and optimization of operations across all sites through the adoption of new technologies, advanced equipment, and standardized systems. Growth is pursued through a dual approach: expanding reserves and production capacity at existing properties and actively seeking accretive acquisition opportunities in mining companies and properties. The strategy includes advancing key development projects toward profitability and navigating the permitting process for significant exploration initiatives. Management also emphasizes the enhancement of ESG performance and risk management systems as integral to long-term value creation. A significant focus is placed on building high-performing teams and strengthening organizational capabilities to support these strategic pillars, including sustained investment in exploration within historically under-explored districts.

Executive leadership is headed by a President and CEO appointed in November 2024, who brings over 3 decades of industry experience, including 13 years on the executive leadership team at Barrick Gold Corporation. The board of directors is composed of 14 members and is divided into 3 classes serving staggered 3-year terms, a structure designed to ensure continuity and stability. Board oversight is executed through 5 specialized committees: Audit; Compensation; Governance and Social Responsibility; Health, Safety, Environmental and Technical; and Executive. The corporate governance framework includes provisions that enhance board control, such as requiring a supermajority vote of 80% of outstanding stock to remove directors for cause and prohibiting stockholder action by written consent. Special meetings of stockholders may only be called by a resolution approved by a majority of the board, reflecting a governance structure that prioritizes deliberate and centralized decision-making.

The organization's approach to health and safety is centered on achieving world-class performance by promoting a value-based safety culture and utilizing technology to continually improve operational safety, with performance tracked through indicators like the All Injury Frequency Rate. Environmental stewardship is demonstrated through proactive water management, including upgrading water treatment infrastructure and conducting comprehensive analyses of all embankment structures following any geotechnical incidents. The company is committed to fulfilling its reclamation and closure obligations, supported by substantial financial assurances. Social responsibility initiatives focus on human capital development, featuring customized leadership training programs, partnerships with career training programs like the Pathways to Mining Careers program, and annual employee surveys to gauge morale and address concerns. The enterprise actively fosters an inclusive workplace, with stated priorities for creating more opportunities for women and indigenous people, and formalizes community relationships through Cooperation and Benefits Agreements with First Nations.

The corporate structure has been shaped by strategic acquisitions, including the 2022 acquisition of Alexco Resource Corp. A notable structural element is the arrangement with the wholly-owned subsidiary, Elsa Reclamation & Development Company Ltd. This entity operates as a paid contractor for the Canadian government, managing historical environmental liabilities at a specific site under an agreement that provides for indemnification by the government for pre-existing conditions. This structure effectively isolates certain legacy environmental risks from the parent company. Other key wholly-owned operating subsidiaries that form the organizational framework include Hecla Limited, Hecla Greens Creek Mining Company, and Hecla Quebec, Inc. The company's Senior Notes are guaranteed on a senior unsecured basis by a defined group of guarantor subsidiaries, which are central to the entity's financing structure.