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, 2026, we had $691.6 million in cash and cash equivalents, of which $9.6 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, 2026, we had no amount drawn on our New Credit Agreement, a $500 million credit facility plus a $100 million accordion option, with $3.4 million used for letters of credit, leaving $496.6 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 continuing operations are adequate to fund our 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, 2025, our Board of Directors declared dividends on our common and preferred stock of $2.7 million (2025: $2.7 million) and paid $2.7 million (2025: $2.7 million) during the three months ended September 30, 2026. During the nine months ended September 30, 2026, we paid dividends on our common and preferred stock of $8.1 million (2025: $7.7 million). Our common stock dividend policy anticipates paying an annual minimum dividend of $0.015 per share. 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, 2025, 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 depends 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, 2026 and December 31, 2025, 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, 2026, 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.

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. While the formerly held Casa Berardi operation was a significant part of our operations, we don't believe its divestiture will have an impact on our ability to meet future obligations due to projected cash flow generation from our remaining operations, and the redemption of our Senior Notes. Our obligations and other uses of cash may include, but are not limited to: interest payments under our Credit Agreement; care and maintenance costs; capital investments 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.

We currently estimate a range of approximately $198 to $214 million will be spent in 2026 on capital investments, primarily for equipment, infrastructure, and development at our mines, before any lease financing. We also estimate exploration and pre-development expenditures will total approximately $55 million in 2026. Our expenditures for these items and our related plans for 2026 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, and other factors. A sustained downturn in metals prices, significant increase in operational or capital costs or other uses of cash, our inability to access the credit facility or the sources of liquidity discussed above, or other factors beyond our control could impact our plans. See the Risk Factor in our 2025 Form 10-K"An extended decline in metals prices, an increase in operating or capital costs, or treatment charges, mine accidents or closures, increasing regulatory obligations, or our inability to convert resources or exploration targets to reserves may cause us to record write-downs, which could negatively impact our results of operations."

Our 2027 budgeting process is ongoing and subject to various internal reviews and ultimately Board of Directors approval. Current expectations are that capital investments, exploration and pre-development and general and administrative expenses will exceed 2026 amounts.

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 $450.0 million in the first nine months of 2026 from cash generated from operations, the proceeds received for disposing of Hecla Quebec, Minera Hecla, and marketable equity securities. Cash held in foreign currencies represents balances in Canadian dollars. The value of our current and non-current marketable equity securities increased by $13.7 million primarily due to consideration received as part of the Hecla Quebec sale, partly offset by disposals.

Cash provided by operating activities from continuing operations for the nine months ended September 30, 2026, of $560.8 million represents a $323.2 million increase compared to the $237.6 million of cash provided by operating activities from continuing operations during the same period of 2025. $292.4 million of the variance was attributable to higher income adjusted for non-cash items, reflecting higher net income driven by higher revenues, in addition to a positive $30.8 million working capital and other asset and liability movement.

During the nine months ended September 30, 2026, cash provided by investing activities of continuing operations increased by $298.5 million, primarily due to the sales of Hecla Quebec and Minera Hecla for total proceeds of $183.4 million, net of transaction costs paid. In addition, we generated investment proceeds related to our marketable equity securities portfolio (which includes our SERP assets which are held in a Rabbi Trust) of $181.1 million, partly offset by investment purchases of $57.2 million. Capital investments of $130.1 million across our operations were consistent with the same period in 2025.

Cash used in financing activities of continuing operations was higher than the same period in 2025 by $210.7 million primarily due to stock issuances under our ATM program in 2025 for net proceeds of $216.2 million. In addition, during the nine months ended September 30, 2026 we paid cash dividends on our common and preferred stock totaling $8.1 million (2025: $7.7 million) and made payments on our finance leases of $5.3 million (2025: $5.3 million).

Cash flows from discontinued operations for the nine months ended September 30, 2026 have been presented in our condensed consolidated statements of cash flows. The discontinued operations reflect only the period prior to the disposal of Hecla Quebec on March 25, 2026, and are therefore not comparable to the nine months ended September 30, 2025, which reflects a full nine months of activity.