Hecla Mining Co., one of the largest silver miners in the world, said Tuesday it is linking its stock dividend policy to its average quarterly realized silver price in the preceding quarter.
The initial quarterly dividend under the policy is expected to be 3 cents per share of common stock, if Hecla's average realized silver price for the third quarter is $40 per ounce.
All dividends, including those in the third quarter, would increase or decrease by 1 cent per share or 4 cents per year for each $5 per ounce incremental increase or decrease in the average realized silver price in the preceding quarter.
Hecla expects the initial quarterly dividend under this policy will be declared and payable before the end of the fourth quarter and will be based on average realized silver prices during the third quarter 2011.
Shares of Hecla rose 8 cents to $7.10 in afternoon trading.