Note 7 - Stockholders' Equity

9 Months Ended

Sep. 30, 2021

Notes to Financial Statements

Stockholders' Equity Note Disclosure [Text Block]

Note 7.    Stockholders’ Equity

Stock-based Compensation Plans

In June 2021, the board of directors granted the following restricted stock unit awards to our employees:

• 552,660 restricted stock units, with 177,872 of those vesting in June 2022, 177,878 vesting in June 2023, and 196,910 vesting in June 2024;

• 47,590 restricted stock units, with one half of those vesting in each of June 2022 and June 2023, respectively; and

• 29,187 restricted stock units that vest in June 2022.

Stock-based compensation expense will be recognized on a straight-line basis over the vesting period of the respective award. Total stock-based compensation expense of $5.0 million related to the above awards will be recognized as follows: $1.7 million, $2.2 million, $0.9 million and $0.2 million during 2021, 2022, 2023 and 2024, respectively.

In June 2021, the board of directors granted performance-based share awards to certain executive employees.  The value of the awards (if any) will be based on the ranking of the market performance of our common stock relative to that of a group of peer companies over the three-year measurement period ending December 31, 2023.  The number of shares to be issued will be based on the value of the awards divided by the share price at grant date.  The expense related to the performance-based awards will be recognized on a straight-line basis over the thirty months following the date of the award.  A total of between zero and approximately 1.2 million shares will be issued based on the value of performance-based share awards granted in June 2019 and having a measurement period ending on December 31, 2021.

Stock-based compensation expense for restricted stock unit and performance-based grants to employees and shares issued to non-employee directors totaled $1.5 million and $4.8 million in the third quarter and first nine months of 2021, respectively, and $2.8 million and $5.2 million in the third quarter and first nine months of 2020, respectively.

In connection with the vesting of restricted stock units and other stock grants, employees have in the past, at their election and when permitted by us, chosen to satisfy their minimum tax withholding obligations through net share settlement, pursuant to which the Company withholds, and retains as treasury stock, the number of shares necessary to satisfy such withholding obligations and pays the obligations in cash.  As a result, in the first nine months of 2021 we withheld 574,251 shares valued at approximately $4.5 million, or approximately $7.88 per share. In the first nine months of 2020 we withheld 1,183,773 shares valued at approximately $2.7 million, or approximately $2.32 per share.

Common Stock Dividends

In each of May and September 2021, our Board of Directors approved an increase in our silver-linked dividend policy by 1 cent per year, and in September 2021 also approved a reduction in the minimum realized silver price threshold to $20 from $25 per ounce. We realized silver prices of $25.66, $27.14 and $23.97 in the first, second and third quarters of 2021, respectively, thus satisfying the criterion for the silver-linked dividend component of our common stock dividend policy. As a result, on May 5, 2021 and August 4, 2021, our Board of Directors declared quarterly cash dividends of 1.125 cents per share of common stock, consisting of 0.375 cent per share for the minimum dividend component and 0.75 cent per share for the silver-linked dividend component of our dividend policy, and on November 3, 2021, declared a quarterly cash dividend of 0.625 cent per share of common stock, consisting of 0.375 cent per share for the minimum dividend component and 0.25 cent per share for the silver-linked dividend component of our dividend policy. In total, dividends of $6.0 million were paid in each of June and September 2021, and $3.4 million in dividends is expected to be paid in December 2021. For illustrative purposes only, the table below summarizes potential dividend amounts under our dividend policy.

Quarterly Average Realized Silver Price ($ per ounce)		Quarterly Silver- Linked Dividend (cents per share)		Annualized Silver- Linked Dividend (cents per share)		Annualized Minimum Dividend (cents per share)		Annualized Dividends per Share: Silver- Linked and Minimum (cents per share)
	$20		0.25		1		1.5		2.5
	$25		1		4		1.5		5.5
	$30		1.5		6		1.5		7.5
	$35		2.5		10		1.5		11.5
	$40		3.5		14		1.5		15.5
	$45		4.5		18		1.5		19.5
	$50		5.5		22		1.5		23.5

At-The-Market Equity Distribution Agreement

Pursuant to an equity distribution agreement dated February 18, 2021, we may offer and sell up to 60 million shares of our common stock from time to time to or through sales agents. Sales of the shares, if any, will be made by means of ordinary brokers transactions or as otherwise agreed between the Company and the agents as principals. Whether or not we engage in sales from time to time may depend on a variety of factors, including share price, our cash resources, customary black-out restrictions, and whether we have any material inside information. The agreement can be terminated by us at any time. Any shares issued under the equity distribution agreement are registered under the Securities Act of 1933, as amended, pursuant to a shelf registration statement on Form S-3. No shares have been sold under the agreement as of September 30, 2021.