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[Hecla Logo] Exhibit 99
2000-13
NEWS RELEASE
HECLA CONSERVES CASH, RELEASES SALADILLO EXPLORATION RESULTS
AND REPORTS RECORD PRODUCTION AT LA CAMORRA
FOR IMMEDIATE RELEASE
September 8, 2000
COEUR D'ALENE, IDAHO -- Hecla Mining Company (HL & HL-PrB:NYSE) today announced
that in the interest of cash conservation the October 1, 2000, payment of
dividends to the holders of Hecla's Series B Cumulative Convertible Preferred
Stock has been deferred. Hecla Chairman, President and Chief Executive Officer
Arthur Brown said, "Persistently low precious metals prices make it prudent to
conserve cash where we can at this time." This is the only quarter since the
preferred stock was issued in 1993 that the dividend has not been declared.
According to Brown, the company's management team has put in place a number of
measures which are expected to provide a sufficient cash balance to not only
meet near and intermediate term needs, but also to create an adequate cash
cushion going into next year and for the longer term. "These measures include
actions to reduce our general and administrative expenses, deferring most
discretionary expenditures and moving forward with asset sales. I am confident
that we can achieve a comfortable cash position by the end of the year," said
Brown.
Hecla is proceeding with efforts to sell its industrial minerals subsidiary,
Kentucky-Tennessee Clay Company, which is a ball clay, kaolin and feldspar
producer. Two companies are in the midst of due diligence activities at this
time. Brown said, "Although a final decision has not been made, clearly K-T Clay
is a sought-after property and should command a good price. The proceeds will
allow us to repay the bank debt due next spring and provide cash on hand to
concentrate on a new direction focused solely on precious metals." Brown went
on, "The full value of K-T Clay is not reflected in Hecla's common stock price."
Hecla was recently notified by the New York Stock Exchange that the common stock
price average had been below $1.00 for more than 30 days and that the company
has at least six months to increase the stock price. That time period could be
extended if necessary under certain conditions. Brown said, "I anticipate that
our actions to sell K-T Clay, clean up our balance sheet and improve our
liquidity will enhance the value of our share price." Hecla's common stock price
has traded at prices above $1.00 at times over the past several days.
Brown said, "Along with the potential sale of K-T Clay and our cash conservation
measures, there are a number of positive things happening that should favorably
impact our stock price." The Saladillo silver/gold exploration property in
central Mexico continues to return excellent results. Some of the more recent
assays in the San Sebastian area on the Middle vein system have ranged as high
as 41 ounces of silver per ton and about 0.10 ounce of gold per ton over a six-
foot interval. The company has begun milling bulk surface samples from the
Francine vein and expects to generate approximately $1.5 million this year in
cash flow from milling activities, some of which will go to fund additional
exploration on the large land concession. This unique approach not only makes
the current Saladillo exploration project self-funding, but also provides
additional cash flow to the company. Brown said, "We are excited about the
progress at Saladillo. If the assays continue to be good and we keep expanding
the reserves, this could turn into a world-class silver mine in the years
ahead."
Meanwhile, the La Camorra gold mine in Venezuela had another record month in
August, mining 8,427 ounces of gold. That brings the total for 2000 to 60,527
ounces of gold at an average cash cost in the
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range of $190 per ounce. Brown said, "The gold ore grade at La Camorra is very
good, and we expect to exceed our original production forecast for the year by
15-20%. We also continue to work diligently on cost reduction programs at La
Camorra."
Brown also stated, "Our business plan aims at profitability with current
precious metals prices. However, we still believe in the fundamentals of supply
and demand, and silver appears to be poised for an increase in price when that
supply pinch is finally felt." Hecla is currently on track to mine an
anticipated 8 million ounces of silver in 2000 from its Greens Creek and Lucky
Friday mines.
Statements made which are not historical facts, such as anticipated payments,
production, sales of assets, exploration results and plans, costs, prices or
sales performance are "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995, and involve a number of risks
and uncertainties that could cause actual results to differ materially from
those projected, anticipated, expected or implied. These risks and uncertainties
include, but are not limited to, metals price volatility, volatility of metals
production, industrial minerals market conditions, and exploration and project
development risks. Refer to the company's Form 10-Q and 10-K reports for a more
detailed discussion of factors that may impact expected future results. The
company undertakes no obligation and has no intention of updating forward-
looking statements.
Hecla Mining Company, headquartered in Coeur d'Alene, Idaho, is one of the
United States' best-known silver producers. The company also produces gold and
is a major supplier of ball clay, kaolin and other industrial minerals. Hecla's
operations are principally in the U.S., Mexico and Venezuela.
Contact: Vicki Veltkamp, vice president - investor and public
relations 208-769-4144
Hecla's Home Page can be accessed on the Internet at:
http://www.hecla-mining.com