Announcement of Periodic Review: Moody’s announces completion of a periodic review of ratings of Hecla Mining Company
Global Credit Research – 24 Aug 2020
New York, August 24, 2020 — Moody’s Investors Service (“Moody’s”) has completed a periodic review of the ratings of Hecla Mining Company and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody’s reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. The review did not involve a rating committee. Since 1 January 2019, Moody’s practice has been to issue a press release following each periodic review to announce its completion.
This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future. Credit ratings and outlook/review status cannot be changed in a portfolio review and hence are not impacted by this announcement. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on www.moodys.com for the most updated credit rating action information and rating history.
Key rating considerations are summarized below.
Hecla Mining Company’s B3 corporate family rating reflects its largely favorable geopolitical risk profile with key long-life mines located in US and Canada, significant mineral reserves, geologically attractive exploration portfolio and adequate liquidity profile. The rating is limited by its modest scale, moderate operational diversity, exposure to volatile gold, silver, zinc and lead prices, relatively high cost position with the exception of the Greens Creek mine and asset concentration risk given that Greens Creek generates the majority of the company’s operating earnings. The rating benefits from the recent conclusion of the strike at Lucky Friday that lasted nearly 3 years with the planned ramp-up of the mine to full capacity by the end of 2020 expected to improve the operational diversity and cash flow generation.
This document summarizes Moody’s view as of the publication date and will not be updated until the next periodic review announcement, which will incorporate material changes in credit circumstances (if any) during the intervening period.
The principal methodology used for this review was Mining published in September 2018. Please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.
This announcement applies only to EU rated and EU endorsed ratings. Non EU rated and non EU endorsed ratings may be referenced above to the extent necessary, if they are part of the same analytical unit.
This publication does not announce a credit rating action. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on www.moodys.com for the most updated credit rating action information and rating history.
Botir Sharipov Vice President - Senior Analyst Corporate Finance Group Moody's Investors Service, Inc. 250 Greenwich Street New York, NY 10007 U.S.A. JOURNALISTS: 1 212 553 0376 Client Service: 1 212 553 1653 Glenn B. Eckert Associate Managing Director Corporate Finance Group JOURNALISTS: 1 212 553 0376 Client Service: 1 212 553 1653 Releasing Office: Moody's Investors Service, Inc. 250 Greenwich Street New York, NY 10007 U.S.A. JOURNALISTS: 1 212 553 0376 Client Service: 1 212 553 1653
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