HECLA MINING CO/DE/

We have a disciplined cash management strategy of maintaining financial flexibility to execute our capital priorities and provide long-term value to our stockholders. Consistent with that strategy, we aim to maintain an acceptable level of debt and sufficient liquidity to fund debt service costs, operations, capital expenditures, exploration and pre-development projects, while returning cash to stockholders through dividends and potential share repurchases.

At September 30, 2025, we had $133.9 million in cash and cash equivalents, of which $16.8 million was held in foreign subsidiaries' local currency that we anticipate utilizing for near-term operating, exploration or capital costs by those foreign subsidiaries. At September 30, 2025, we had no amount drawn on our $225 million credit facility, with $6.7 million used for letters of credit, leaving $218.3 million available for borrowings. We also have USD cash and cash equivalent balances held by our foreign subsidiaries that, if repatriated, may be subject to withholding taxes. We expect that there would be no additional tax burden upon repatriation after considering the cash cost associated with the withholding taxes. We believe that our liquidity and capital resources from our U.S. operations are adequate to fund our U.S. operations and corporate activities.

Pursuant to our common stock dividend policy described in Note 12 of Notes to Consolidated Financial Statementsin our consolidated financial statements and notes for the year ended December 31, 2024, our Board of Directors declared and paid dividends on our common and preferred stock of $2.7 million (2024: $8.7 million) and $7.7 million (2024: $16.7 million) during the three and nine months ended September 30, 2025 and 2024, respectively. Our common stock dividend policy anticipates paying an annual minimum dividend of $0.015 per share. Prior to the first quarter of 2025, our dividend policy previously had an additional silver-linked component which tied the amount of declared common stock dividends to our realized silver price for the preceding quarter.

The declaration and payment of dividends on our common stock is at the sole discretion of our Board of Directors, and there can be no assurance that we will continue to declare and pay common stock dividends in the future.

Pursuant to our stock repurchase program described in Note 12 of Notes to Consolidated Financial Statements in our consolidated financial statements and notes for the year ended December 31, 2024, we are authorized to repurchase up to 20 million shares of our outstanding common stock from time to time in open market or privately negotiated transactions, depending on prevailing market conditions and other factors. The repurchase program may be modified, suspended or discontinued by us at any time. Whether or not we engage in repurchases from time to time may depend on a variety of factors, including not only price and cash resources, but customary black-out restrictions, whether we have any material inside information, limitations on share repurchases or cash usage that may be imposed by our credit agreement or in connection with issuances of securities, alternative uses for cash, applicable law, and other investment opportunities from time to time. As of September 30, 2025 and December 31, 2024, 934,100 shares had been purchased in prior periods at an average price of $3.99 per share, leaving 19.1 million shares that may yet be purchased under the program. We have not repurchased any shares since June 2014.

As discussed in Note 6 of Notes to Condensed Consolidated Financial Statements (Unaudited) pursuant to an equity distribution agreement dated February 18, 2021, as of September 30, 2025, there were 197,988 remaining shares of our common stock that we may offer and sell from time to time in “at-the-market” offerings. 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 equity distribution agreement can be terminated by us at any time. Any sales of shares under that agreement are registered under the Securities Act of 1933, as amended, pursuant to a shelf registration statement on Form S-3. During the nine months ended September 30, 2025, we sold 35,959,328 shares under the agreement, with the proceeds utilized to repay debt.

As a result of our current cash balances, the expected performance of our operations, current metals prices, proceeds from potential at-the-market sales of common stock, and availability under our Credit Agreement, we believe we will be able to meet our obligations and other potential cash requirements during the next 12 months and beyond. Our obligations and other uses of cash may include, but are not limited to: debt service obligations related to the Senior Notes; interest payments under our Credit Agreement; ramp up and suspension costs; capital expenditures at our operations; potential acquisitions of other mining companies or properties; regulatory matters; litigation; potential repurchases of our common stock under the program described above; and payment of dividends on common stock, if declared by our Board of Directors. On August 1, 2025, we issued a notice of redemption for a portion of our Senior Notes and redeemed $212 million of our Senior Notes plus a call premium of $3.8 million. See Note 7 of Notes to Condensed Consolidated Financial Statements (Unaudited)for more information.

We currently estimate a range of approximately $222 to $242 million (before any lease financing) will be invested in 2025 on capital expenditures, primarily for equipment, infrastructure, and development at our mines, including $170.0 million already incurred as of September 30, 2025. We also estimate exploration and pre-development expenditures will total approximately $28.0 million in 2025, including $22.9 million already incurred as of September 30, 2025. Our expenditures for these items and our related plans for

2025 may change based upon our financial position, metals prices, and other considerations. Our ability to fund the activities described above will depend on our operating performance, metals prices, our ability to estimate revenues and costs, sources of liquidity available to us, including the revolving credit facility (which requires compliance with certain financial and other covenants), and other factors. A sustained downturn in metals prices, significant increase in operational or capital costs or other uses of cash, poor results of our operating units, our inability to access the credit facility or the sources of liquidity discussed above, or other factors beyond our control could impact our plans.

We may defer some capital investment and/or exploration and pre-development activities, engage in asset sales or secure additional capital if necessary to maintain liquidity. We may also pursue additional acquisition opportunities, which could require additional equity issuances or other forms of financing. There can be no assurance that such financing will be available to us.

Our liquid assets include (in millions):

Cash and cash equivalents increased by $107.0 million in the first nine months of 2025. Cash held in foreign currencies represents balances in Canadian dollars and Mexican Pesos. The value of non-current marketable equity securities increased by $35.1 million.

Cash provided by operating activities for the nine months ended September 30, 2025, of $345.6 million represents a $194.8 million increase compared to the $150.8 million of cash provided by operations during the same period of 2024. $175.5 million of the variance was attributable to higher income adjusted for non-cash items, reflecting higher net income driven by higher revenues, partly offset by lower non-cash depreciation, depletion and amortization expense, and an improvement of $19.2 million in working capital and other asset and liability changes.

During the nine months ended September 30, 2025, we invested $170.0 million in capital expenditures across our operations, an increase of $16.0 million compared to the same period in 2024. Cash used in investing activities of $165.6 million includes $3.7 million and $0.7 million of proceeds received from the sale of investments and long-lived assets, respectively.

During the nine months ended September 30, 2025, we had net repayments of $23.0 million on our revolving credit facility resulting in no amount drawn on September 30, 2025. In addition, during the nine months ended September 30, 2025 and 2024:

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we paid cash dividends on our common and preferred stock totaling $7.7 million and $16.7 million, respectively;

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we made repayments on our finance leases of $6.6 million and $7.8 million, respectively;

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we issued stock under our ATM program described above for net proceeds of $216.2 million and $58.4 million, respectively; and

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we repaid $212 million of the Senior Notes (plus $3.8 million call premium) and repaid the IQ Notes for an amount of $35.4 million on their maturity date.