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 the 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

Third Quarter 2025 Highlights

Operational Achievements:

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Strong Production- We produced 4.6 million ounces of silver with increased silver production at all primary silver operations, compared to 3.6 million ounces of silver in the third quarter of 2024. We produced 40,654 ounces of gold, an increase over 32,280 ounces of gold produced in the third quarter of 2024, driven by higher grades and recoveries at Greens Creek and the continuation of underground mining at Casa Berardi.

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Lucky Friday Surface Cooling Project Advancement - Lucky Friday continued along a path of operational consistency, while completing key milestones of the surface cooling project (an important project to increase the cooling capacity required for the mine over the reserve mine-life). The entire project is tracking for completion in 2026.

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Greens Creek Permitting - Clean Water Act Section 404 permit issued for dry stack tailings expansion project, with work to begin in the fourth quarter

Financial Performance:

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Revenue Generation - Generated record sales of $409.5 million, a 67% increase over the third quarter of 2024.

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Continuous Improvement - Keno Hill generated gross profit of $16.4 million, driven by higher realized prices and consistent production, the third consecutive quarter with gross profit which generated cash flow from operations of $22.1 million.

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Shareholder Returns - Generated net income applicable to common stockholders of $100.6 million, compared to $1.6 million in the third quarter of 2024 and returned $2.2 million in dividends to common stockholders.

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Investment in Operations - Made capital expenditures of $57.9 million, including $12.2 million at Greens Creek, $16.9 million at Lucky Friday, $13.5 million at Casa Berardi and $14.7 million at Keno Hill.

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Deleveraging and Strengthening Balance Sheet- Completed redemption of $212 million of our Senior Notes, fully repaid the IQ Notes and had no balance drawn on the revolving credit facility.

Year to date 2025 Highlights

Operational Achievements:

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Strong Production- Progress at key operations delivering 13.2 million ounces of silver with increased silver production at all primary silver operations. Produced 120,781 ounces of gold, driven by higher grades and recoveries at Greens Creek and the continuation of underground mining, exceeding the year-to-date period in 2024.

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Greens Creek Gold Performance - Continued robust gold production attributable to grade exceeding plan

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Libby Exploration Project Advancement - The U.S. Forest Service issued the final decision notice and finding of no significant impact for our 100% owned copper-silver Libby Exploration Project in Montana. The significant milestone advances the exploration phase of a key asset in our property portfolio.

Financial Performance:

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Revenue Generation - Generated record sales of $974.9 million, a 43% increase over the 2024 comparable period sales.

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Continuous Improvement - Turned Keno Hill profitable for the first time under our ownership, delivering $17.7 million in gross profit and made consistent gross profit at Casa Berardi with $77.7 million of gross profit generated, a significant improvement over the 2024 comparable period's gross loss of $21.4 million.

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Shareholder Returns - Generated net income applicable to common stockholders of $186.9 million, compared to net income applicable to common stockholders of $23.5 million in the comparable 2024 period and returned $7.3 million in dividends to common stockholders.

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Investment in Operations - Made capital expenditures of approximately $170.0 million, including $31.3 million at Greens Creek, $48.3 million at Lucky Friday, $45.1 million at Casa Berardi and $42.2 million at Keno Hill.

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Deleveraging and Strengthening Balance Sheet - Redeemed $212 million of our Senior Notes using proceeds from the sale of stock under our ATM program. In addition, cash flow from operating activities of $345.6 million allowed for full repayment of IQ notes and no balance drawn on the revolving credit facility.

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. To date, tariffs have not materially impacted our financial results. However, future tariffs or other global trade restraints could impact our performance. 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 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, Item 1A. “Risk Factors” contained in Part I of our 2024 Form 10-K, and Part II, Item 1A of our first and second quarter 2025 Form 10-Q 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.