Hecla Mining (HL) risk factors, 2026 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 conditions21% rewritten
3. 03We have had losses that could reoccur in the future23% rewritten

Risks Related to the Pending Sale of Casa Berardi

1. 04Permit receipt payment of $20 million that is contingent upon Orezone obtaining necessary permits, which is subject to regulatory, environmental, and political uncertainties beyond our control and Orezone's controlnew
2. 05Gold price-linked payment of up to $10 million that only becomes payable if gold prices exceed $4,200 per ounce, which is significantly below current market prices, but still may never be achieved, payable in $5 million increments on the first and second anniversary dates of the closingnew
3. 06Our accounting and other estimates may be imprecise
4. 07deferred tax asset valuation allowance
5. 08Commodity and currency risk management activities could prevent us from realizing possible revenues or lower costs or expose us to losses49% rewritten
6. 09Our ability to recognize the benefits of deferred tax assets related to net operating loss carryforwards and other items is dependent, among other things, on generating taxable income
7. 10Returns for investments in pension plans and pension plan funding requirements are uncertain
8. 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
9. 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 economy23% rewritten
10. 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
11. 14Mining accidents or other adverse events at an operation could decrease our anticipated production or otherwise adversely affect our operations
12. 15Our operations may be adversely affected by risks and hazards associated with the mining industry that may not be fully covered by insurance
13. 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
14. 17temporary or permanent closure of facilities
15. 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
16. 19availability and cost of financing
17. 20Our mineral reserve and resource estimates may be imprecise
18. 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
19. 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
20. 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 unavailability of such facilities
21. 24We derive a significant amount of revenue from a relatively small number of customers and occasionally enter into concentrate spot market sales with metal traders31% rewritten
22. 25Shortages of critical parts and equipment may adversely affect our operations and development projects
23. 26Our foreign activities are subject to additional inherent risks
24. 27Our operations and properties in Canada expose us to additional political risks
25. 28We may be subject to a number of unanticipated risks related to inadequate infrastructure45% rewritten
26. 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
27. 30We may be unable to successfully integrate the operations of the properties we acquire
28. 31diverting management’s attention from other business concerns82% rewritten
29. 32Issues we have faced at certain segments could require us to write-down the carrying value of associated long-lived assets. We could face similar issues at our other operationsnew
30. 33Though production remains suspended at our Nevada assets, we did not identify a triggering event for our Nevada long-lived assets in 2025, as our budgeted exploration program for 2026, due to positive results, has significantly increased compared to the level of exploration expenditures incurred in 2025new
31. 34We may not realize all of the anticipated benefits from our acquisitions, including our 2022 acquisition of Alexco56% rewritten
32. 35The 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 liabilities20% rewritten
33. 36We 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. 37We 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. 38Our 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. 39Some 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. 40Mine 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 assurance32% rewritten
5. 41We are required to obtain governmental permits and other approvals in order to conduct mining operations39% rewritten
6. 42At Casa Berardi, if we continue to own it, obtaining new or modified permits and modifications to the mine license area will be required to successfully develop the planned open pit extensions at the site and for long term management of tailings and waste rock generated through mining operationsnew
7. 43We could be subject to legal disputes that may materially adversely affect usnew
8. 44Our environmental and asset retirement obligations may exceed the provisions we have made28% rewritten
9. 45New federal and state laws, regulations and initiatives could impact our operations33% rewritten
10. 46Legal challenges could prevent exploration projects from being developed or existing mines from future expansionnew
11. 47The titles to some of our properties may be defective or challenged

Risks Relating to Our Common Stock and Our Indebtedness

1. 48We 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. 49The price of our stock has a history of volatility and could decline in the future
3. 50We may not be able to pay common or preferred stock dividends in the future84% rewritten
4. 51Our existing stockholders are effectively subordinated to the holders of our Senior Notes
5. 52The issuance of additional shares of our preferred or common stock in the future could adversely affect holders of common stock
6. 53The provisions in our certificate of incorporation, our by-laws and Delaware law could delay or deter tender offers or takeover attempts
7. 54The terms of our debt impose restrictions on our operations
8. 55These 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
9. 56Our variable rate indebtedness subjects us to interest rate risk, which could cause our indebtedness service obligations to increase significantly
10. 57Global 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
11. 58Tariffs, 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 condition98% rewritten
12. 59Our profitability could be affected by inflation, including the prices of other commodities
13. 60Our business depends on availability of skilled miners and good relations with employees61% rewritten
14. 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
15. 62Competition from other mining companies may harm our business
16. 63Additional issuances of equity securities by us would dilute the ownership of our existing stockholders and could reduce our earnings per share
17. 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
18. 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