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

Second Quarter 2025 Highlights

Operational Achievements:

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Strong Production- The Company produced 4.5 million ounces of silver with increased silver production at Greens Creek and Lucky Friday, compared to the second quarter of 2024, partly offset by lower silver production at Keno Hill due to lower tons milled. Produced 45,895 ounces of gold, an increase over the second quarter of 2024 and the first quarter of 2025, driven by higher grades and recoveries at Greens Creek and the continuation of underground mining at Casa Berardi.

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Lucky Friday Milestone - Set a new quarterly milling record at Lucky Friday of 114,475 tons, beating the prior record set in the first quarter of the current year.

Financial Performance:

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Revenue Generation - Generated record sales of $304 million a 24% increase over the comparable period sales.

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Continuous Improvement - Keno Hill generated gross profit of $0.2 million, the second consecutive quarter with gross profit.

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Shareholder Returns - Generated net income applicable to common stockholders of $57.6 million, compared to $27.7 million in the comparable 2024 period and returned $2.2 million in dividends to common stockholders.

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Investment in Operations - Made capital expenditures of approximately $58.0 million, including $8.4 million at Greens Creek, $15.9 million at Lucky Friday, $15.4 million at Casa Berardi and $17.0 million at Keno Hill.

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Strengthening Balance Sheet - Raised net proceeds of $174.1 million through the use of our ATM program.

Exploration:

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Underground exploration at Greens Creek Galagher Zone extended mineralization 550 feet down plunge from existing resource

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At Keno Hill, identified new high-grade silver mineralization 500 feet down plunge from existing reserve

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Surface exploration programs at Midas and Greens Creek are well underway

Year to date 2025 Highlights

Operational Achievements:

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Consistent Production- Progress at key operations delivering 8.6 million ounces of silver with increased silver production at Lucky Friday, offsetting decreases at Greens Creek. Produced 80,127 ounces of gold, exceeding the comparable 2024 period.

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Lucky Friday Milestone - At Lucky Friday, set quarterly milling record for the first half of the year with 223,220 tons milled.

Financial Performance:

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Revenue Generation - Generated record sales of $565.4 million a 30% increase over the comparable period sales.

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Continuous Improvement - Turned Keno Hill profitable for the first time under our ownership, delivering $1.3 million in gross profit.

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Shareholder Returns - Generated net income applicable to common stockholders of $86.3 million , compared to net income of $21.8 million in the comparable 2024 period and returned $4.7 million in dividends to common stockholders.

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Investment in Operations - Made capital expenditures of approximately $112.1 million, including $19.2 million at Greens Creek, $31.4 million at Lucky Friday, $31.6 million at Casa Berardi and $27.5 million at Keno Hill.

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Strengthening Balance Sheet - Raised net proceeds of $174.1 million through the use of our ATM program.

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 (non-GAAP) and adjusted EBITDA (non-GAAP). 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.