Hecla Mining (HL) risk factors, FY2024 10-K

Financial Risks

1. 01A substantial or extended decline in metals prices would have a material adverse effect on us
2. 02other political, regulatory and economic conditions
3. 03We have a substantial amount of debt that could impair our financial health and prevent us from fulfilling our obligations under our existing and future indebtedness
4. 04limiting our ability to borrow additional funds
5. 05We have had losses that could reoccur in the future
6. 06Our accounting and other estimates may be imprecise
7. 07deferred tax asset valuation allowance
8. 08Commodity and currency risk management activities could prevent us from realizing possible revenues or lower costs or expose us to losses
9. 09Our ability to recognize the benefits of deferred tax assets related to net operating loss carryforwards and other items is dependent on future cash flows generating taxable income
10. 10Returns for investments in pension plans and pension plan funding requirements are uncertain
11. 11Natural disasters, public health crises, political crises, and other catastrophic events or other events outside of our control may materially and adversely affect our business or financial results
12. 12Our operations are subject to a range of risks related to climate change and transitioning the business to meet regulatory, societal and investor expectations for operating in a low-carbon economy
13. 13unpermitted or otherwise non-compliant discharge of wastewater due to an increased frequency of extreme weather events exceeding the design capacity of existing tailings storage facilities and other stormwater management infrastructure
14. 14Mining accidents or other adverse events at an operation could decrease our anticipated production or otherwise adversely affect our operations
15. 15Our operations may be adversely affected by risks and hazards associated with the mining industry that may not be fully covered by insurance
16. 16tailing ponds and other impoundments and dams which in the past have failed and could again fail or leak as a result of design or construction flaws, seismic activity, unusual weather or for other reasons
17. 17temporary or permanent closure of facilities
18. 18Capitalized development projects may cost more and provide less return than we estimate. If we are unable to realize a return on these investments, we may incur a related asset write-down that could adversely affect our financial results or condition
19. 19availability and cost of financing
20. 20Our mineral reserve and resource estimates may be imprecise
21. 21Furthermore, short-term operating factors relating to our mineral reserves, such as the need to sequentially develop orebodies and the processing of new or different ore grades, may adversely affect our cash flow
22. 22Efforts to expand the finite lives of our mines may not be successful or could result in significant demands on our liquidity, which could hinder our growth
23. 23Our ability to market our metals production depends on the availability of smelters and/or refining facilities and our operations and financial results may be affected by disruptions or closures or the unavailability of smelters and/or refining facilities for other reasons
24. 24We derive a significant amount of revenue from a relatively small number of customers and occasionally enter into concentrate spot market sales with metal traders
25. 25Shortages of critical parts and equipment may adversely affect our operations and development projects
26. 26Our foreign activities are subject to additional inherent risks
27. 27Our operations and properties in Canada expose us to additional political risks
28. 28We may be subject to a number of unanticipated risks related to inadequate infrastructure
29. 29We actively evaluate opportunities to expand our mineral reserves and resources by acquiring other mining companies or properties. Although we are pursuing opportunities that we feel are in the best interest of our stockholders, these pursuits are costly and distracting
30. 30We may be unable to successfully integrate the operations of the properties we acquire
31. 31diverting management’s attention from other business concerns
32. 32We may not realize all of the anticipated benefits from our acquisitions, including our 2022 acquisition of Alexco
33. 33The properties we may acquire may not produce as expected, and we may be unable to determine reserve potential, identify liabilities associated with the acquired properties or obtain protection from sellers against such liabilities
34. 34We face risks relating to transporting our products from our mines, as well as transporting employees and materials at our Greens Creek, Casa Berardi and Keno Hill sites

Legal, Regulatory and Compliance Risks

1. 35We face substantial governmental regulation, including in the United States the Mine Safety and Health Act, various environmental laws and regulations and the 1872 Mining Law
2. 36Our operations are subject to complex, evolving and increasingly stringent environmental laws and regulations. Compliance with environmental regulations, and litigation based on such regulations, involves significant costs and can threaten existing operations or constrain expansion opportunities
3. 37Some of our facilities are located in or near environmentally sensitive areas such as salmon fisheries, endangered species habitats, wilderness areas, national monuments and national forests, and we may incur additional costs to mitigate potential environmental harm in such areas
4. 38Mine closure and reclamation regulations impose substantial costs on our operations and include requirements that we provide financial assurance supporting those obligations. These costs could significantly increase and we might not be able to provide financial assurance
5. 39We are required to obtain governmental permits and other approvals in order to conduct mining operations
6. 40At Lucky Friday, an expansion of the current tailings storage facility or new, separate tailings storage facility will be required to achieve the planned life of mine. We have begun site selection, permitting, and engineering in advance of need for the additional storage capacity
7. 41We are currently involved in ongoing legal disputes that may materially adversely affect us
8. 42Our environmental and asset retirement obligations may exceed the provisions we have made
9. 43New federal and state laws, regulations and initiatives could impact our operations
10. 44Legal challenges could prevent our projects in Montana from ever being developed
11. 45The titles to some of our properties may be defective or challenged

Risks Relating to Our Common Stock and Our Indebtedness

1. 46We may be unable to generate sufficient cash to service all of our debt and meet our other ongoing liquidity needs and may be forced to take other actions to satisfy our obligations, which may be unsuccessful
2. 47The price of our stock has a history of volatility and could decline in the future
3. 48We may not be able to pay common or preferred stock dividends in the future
4. 49on the Series B Preferred Stock, but instead deferred them. We cannot assure you that we will continue to pay preferred stock dividends in the future
5. 50Our existing stockholders are effectively subordinated to the holders of our Senior Notes
6. 51The issuance of additional shares of our preferred or common stock in the future could adversely affect holders of common stock
7. 52The provisions in our certificate of incorporation, our by-laws and Delaware law could delay or deter tender offers or takeover attempts
8. 53The terms of our debt impose restrictions on our operations
9. 54These restrictions may affect our ability to grow in accordance with our strategy. Further, our financial results, our substantial indebtedness and our credit ratings could adversely affect the availability and terms of any financing
10. 55Our variable rate indebtedness subjects us to interest rate risk, which could cause our indebtedness service obligations to increase significantly
11. 56Global financial events or developments impacting major industrial or developing countries may have an impact on our business and financial condition in ways that we currently cannot predict
12. 57Tariffs, other potential changes to tariff and import/export regulations, or trade disputes between the United States and other jurisdictions may have a negative effect on global economic conditions and on our business, financial results and financial condition
13. 58Our profitability could be affected by inflation, including the prices of other commodities
14. 59Our business depends on availability of skilled miners and good relations with employees
15. 60the need to hire less skilled or efficient employees or contractors. The loss of skilled employees or contractors or our inability to attract and retain additional highly skilled employees and contractors could have an adverse effect on our business and future operations
16. 61Our information technology systems may be vulnerable to disruption which could place our systems at risk from data loss, operational failure, or compromise of confidential information
17. 62Competition from other mining companies may harm our business
18. 63Additional issuances of equity securities by us would dilute the ownership of our existing stockholders and could reduce our earnings per share
19. 64If a large number of shares of our common stock are sold in the public market, the sales could reduce the trading price of our common stock and impede our ability to raise future capital
20. 65Any downgrade in the credit ratings assigned to us or our debt securities could increase future borrowing costs, adversely affect the availability of new financing and may result in increased collateral requirements under our existing surety bond portfolio