HECLA MINING CO/DE/

Hecla Mining Company stands as North America's leading silver producer, with a rich heritage dating back to 1891. Our operations at Greens Creek, Lucky Friday, and Keno Hill combined to produce 35% of 2024 silver production in the U.S. and Canada, complemented by significant gold production from Casa Berardi and Greens Creek. We began ramp-up of the Keno Hill mill during the second quarter of 2023 after acquiring it in September 2022. Our strategic positioning in the stable jurisdictions of U.S. and Canada provides us with distinct operational advantages and reduced political risk compared to our global peers. Our operational and strategic framework centers on four core pillars:

Achieving operational excellence through standardized systems and continuous improvement

Optimizing our portfolio through strategic reviews and targeting highest risk-adjusted return projects

Intensifying our focus on financial discipline with a rigorous capital allocation framework

Leveraging our position as North America's largest silver producer to meet growing demand from green technology markets

First Quarter 2025 Highlights

Operational Achievements:

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Consistent Production- Progress at key operations delivering 4.1 million ounces of silver with increased silver production at Lucky Friday and Keno Hill offsetting decreases at Greens Creek. Produced 34,232 ounces of gold with expected decreases at Casa Berardi and Greens Creek. See Consolidated Results of Operations below for information on total cost of sales, as well as cash costs and all-in sustaining costs, each after by-product credits, per silver and gold ounce for the three-month periods ended March 31, 2025 and 2024.

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Established a new quarterly milling record at Lucky Friday of 108,745 tons, beating the prior record set in fourth quarter 2024.

Financial Performance:

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Revenue Generation - Generated record sales of $261.3 million a 38% increase over the comparable period sales.

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Continuous Improvement - Turned Keno Hill profitable for the first time under our ownership, delivering $1.0 million in gross profit.

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Shareholder Returns - Generated net income applicable to common stockholders of $28.7 million, compared to a loss of $5.9 million in the comparable 2024 period and returned $2.5 million in dividends to common stockholders.

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Investment in Operations - Made capital expenditures of approximately $54.1 million, including $10.8 million at Greens Creek, $15.4 million at Lucky Friday, $16.3 million at Casa Berardi and $10.4 million at Keno Hill.

Exploration:

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Extended Greens Creek mineralization 400 feet down plunge to the south in the 200 South Zone

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Confirmed and expanded mineralization at Keno Hill in the Bermingham Deposit through continued drilling.

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Initiated surface exploration programs at Midas and Greens Creek, with drilling set to begin in May.

External Factors that Impact our Results

Our financial results vary as a result of fluctuations in market prices primarily for silver and gold and, to a lesser extent, zinc, lead and copper. World market prices for these commodities have fluctuated historically and are affected by numerous factors beyond our control. Although we have not been materially impacted to date, our financial results could in the future be materially impacted by the introduction of tariffs and other global restraints on trade. Historically our US operations have had significant sales into China and Canada, and each of those countries is or could be subject to tariffs, and each has or may retaliate in kind. Notwithstanding these recent developments, we believe that the outlook for precious metals fundamentals in the medium- and long-term is favorable due to macro-economic factors such as lower interest rate expectations, geopolitical uncertainty and global growth expectations, which have resulted in significant volatility in the financial and commodities markets, including the precious metals market. See Part II, Item 1A. “Risk Factors” of this Form 10-Q and Item 1A. “Risk Factors” contained in Part I of our annual report on Form 10-K for the year ended December 31, 2024 ("2024 Form 10-K"), for further discussion. Because we cannot control the price of our products, except to the extent we have entered into hedging transactions, the key measures that management focuses on in operating our business are production volumes, payable sales volumes, Cash Cost, After By-product Credits, per Ounce (non-GAAP) and All-In Sustaining Cost, After By-product Credits, per Ounce (“AISC”) (non-GAAP), operating cash flows, capital expenditures, free cash flow and adjusted EBITDA. The average realized prices for all metals sold by us continued to exhibit significant volatility during the period. We have also experienced significant cost inflation across our operations, principally associated with higher energy prices, increased costs for other consumables such as reagents, explosives and steel, and higher labor and contractor costs.