Hecla Mining CO/De/ 10-K Filing

Ticker: HL-PB · Form: 10-K · Filed: Feb 13, 2025 · CIK: 719413

Sentiment: neutral

Filing Stats: 4,478 words · 18 min read · ~15 pages · Grade level 13.3 · Accepted 2025-02-13 16:35:48

Key Financial Figures

Filing Documents

Business

Item 1. Business 4 Introduction 4 Products and Segments 6 Governmental Regulation 6 Physical Assets 8 Human Capital 8 Available Information 9

Risk Factors

Item 1A. Risk Factors 10

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 33

Cybersecurity

Item 1C. Cybersecurity 33

Propert ies

Item 2. Propert ies 34 Summary 35 Greens Creek 42 Lucky Friday 48 Keno Hill 53 Casa Berardi 57 Internal Controls 60

Legal Proceedings

Item 3. Legal Proceedings 60

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 60 PART II 61

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 61

Reserved

Item 6. Reserved 62

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 63 Overview 63 Consolidated Results of Operations 65 Greens Creek 69 Lucky Friday 71 Keno Hill 73 Casa Berardi 75 Corporate Matters 77 Reconciliation of Total Cost of Sales to Cash Cost, Before By-product Credits and Cash Cost, After By-product Credits (non-GAAP) and All-In Sustaining Cost, Before By-product Credits and All-In Sustaining Cost, After By-product Credits (non-GAAP) 78 Financial Liquidity and Capital Resources 87 Contractual Obligations and Contingent Liabilities and Commitments 89 Critical Accounting Estimates 90 i New Accounting Pronouncements 92 Guarantor Subsidiaries 93

Forward-Looking Statements

Forward-Looking Statements 94

Quantitative and Qualitative Disclosures About Market Risk

Item 7A. Quantitative and Qualitative Disclosures About Market Risk 95 Provisional Sales 95 Commodity-Price Risk Management 95 Foreign Currency 97

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 98

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 98

Controls and Procedures

Item 9A. Controls and Procedures 98 Disclosure Controls and Procedures 98 Management's Annual Report on Internal Control over Financial Reporting 98 Attestation Report of Independent Registered Public Accounting Firm 100

Other Information

Item 9B. Other Information 101

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 101 PART III 101

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 101

Executive Compensation

Item 11. Executive Compensation 103

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 103

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 103

Principal Accountant Fees and Services

Item 14. Principal Accountant Fees and Services 103 PART IV 104

Exhibits and Financial Statement Schedules

Item 15. Exhibits and Financial Statement Schedules 104

Form 10-K Summary

Item 16. Form 10-K Summary 107

Signatures

Signatures 108 Index to Consolidated Financial Statements F- 1 ii Special Note on Forward-Looking Statements Certain statements contained in this report (including information incorporated by reference) are "forward-looking statements" and are intended to be covered by the safe harbor provided for under Section 27A of the Securities Act of 1933, as amended ("Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended ("Exchange Act"). Our forward-looking statements include our current expectations and projections about future production, results, performance, prospects and opportunities, including reserves and resources. We have tried to identify these forward-looking statements by using words such as "may," "might," "will," "expect," "anticipate," "believe," "could," "intend," "plan," "estimate," "project" and similar expressions. These forward-looking statements are based on information currently available to us and are expressed in good faith and believed to have a reasonable basis. However, our forward-looking statements are subject to a number of risks, uncertainties and other factors that could cause our actual production, results, performance, prospects or opportunities, including reserves and resources, to differ materially from those expressed in, or implied by, these forward-looking statements. These risks, uncertainties and other factors include, but are not limited to, those set forth under Item 1A. Risk Factors and Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations. Given these risks and uncertainties, readers are cautioned not to place undue reliance on our forward-looking statements. Projections and other forward-looking statements included in this report have been prepared based on assumptions, which we believe to be reasonable, but not in accordance with United States generally accepted accounting principles ("GAAP") or any guidelines of the Securities and Exchange Com

Business

Item 1. Business For information regarding the organization of our business segments and our significant customers, see Note 4 of Notes to Consolidated Financial Statements. Information set forth in Items 1A and 2 below are incorporated by reference into this Item 1. Introduction Hecla Mining Company and its subsidiaries have provided precious and base metals to the U.S. and the world since 1891 (in this report, "we" or "our" or "us" refers to Hecla Mining Company and our affiliates and subsidiaries, unless the context requires otherwise). We discover, acquire and develop mines and other mineral interests and produce and market (i) concentrates containing silver, gold, lead, zinc and copper, (ii) carbon material containing silver and gold, and (iii) unrefined dor containing silver and gold. In doing so, we intend to manage our business activities in a safe, environmentally responsible and cost-effective manner. The silver, zinc and precious metals concentrates and carbon material we produce are sold to custom smelters, metal traders and third-party processors, and the unrefined dor we produce is sold to refiners or further refined before sale of the metals to traders. We are organized and managed in four segments that encompass our operating mines and significant assets being Greens Creek, Lucky Friday, Keno Hill and Casa Berardi. Our current business strategy is to focus our financial and human resources in the following areas: operating our properties safely, in an environmentally responsible and cost-effective manner; strengthen balance sheet to preserve our financial position in varying metals price and operational environments, improve capital allocation framework with a focus on Return On Invested Capital ("ROIC") and free cash flow generation; improving and optimizing operations at all sites, which includes incurring costs for new technologies and equipment, and implementing standardized systems and processes; optimize asset portfolio and

View Full Filing

View this 10-K filing on SEC EDGAR

View on Read The Filing