HL · Hecla Mining Company

Hecla Mining Company's disposal of Hecla Quebec Inc., which owns the Casa Berardi mine and Quebec exploration properties, marks a significant portfolio simplification. The transaction closed on March 25, 2026, delivering immediate $160 million cash and 65.8 million Orezone shares valued at $95.5 million, with potential for up to $593 million total via deferred and contingent payments tied to production royalties ($80/oz first 500k oz, then $180/oz), permit grants ($20 million), and gold prices over $4,200/oz ($10 million max). This pro forma 8-K/A illustrates the financial impact assuming the disposal occurred January 1, 2023 for income statements and December 31, 2025 for the balance sheet, plus redemption of the remaining $263 million 7.25% Senior Notes due 2028. Pro forma results show strengthened profitability: 2025 net income to common stockholders rises to $257.4 million ($0.39/share) from historical $321.2 million, reflecting Quebec's $77.7 million net loss removal offset by $19.1 million lower interest expense. Similarly, 2024 pro forma income improves to $68.1 million ($0.11/share) and 2023 loss narrows to $33.0 million ($0.05/share loss). Balance sheet de-risks dramatically with total assets at $2.9 billion (down from $3.6 billion), debt slashed to $5.6 million (from $269 million), and equity at $2.4 billion. Investors benefit from reduced leverage, streamlined operations excluding Quebec, and cash deployment to eliminate high-cost debt, positioning Hecla for enhanced financial flexibility amid volatile gold markets.