# Hecla Mining Co: Form 10-Q for the period ended Mar 31, 2025

- Company: [Hecla Mining Co](/companies/hl.md) (CIK 719413)
- Form: 10-Q
- Filed: 2025-05-01
- Accepted by EDGAR: May 1, 2025, 17:19 ET
- Period: 2025-03-31
- Accession: 0000950170-25-062012
- Inline XBRL: yes
- Main document: https://www.sec.gov/Archives/edgar/data/719413/000095017025062012/hl-20250331.htm
- All documents and exhibits: https://www.sec.gov/Archives/edgar/data/719413/000095017025062012/

## Figures reported in this filing

Standardized XBRL line items for the period ended 2025-03-31.

| Line item | Period | Value | XBRL concept |
| --- | --- | ---: | --- |
| Revenue | 3 months, 2025-01-01 to 2025-03-31 | $261.3m | us-gaap:RevenueFromContractWithCustomerIncludingAssessedTax |
| Cost of revenue | 3 months, 2025-01-01 to 2025-03-31 | $187.3m | us-gaap:CostOfGoodsAndServicesSold |
| Gross profit | 3 months, 2025-01-01 to 2025-03-31 | $74.0m | us-gaap:GrossProfit |
| Operating income | 3 months, 2025-01-01 to 2025-03-31 | $52.4m | us-gaap:OperatingIncomeLoss |
| Interest expense | 3 months, 2025-01-01 to 2025-03-31 | $11.6m | us-gaap:InterestExpense |
| Income tax | 3 months, 2025-01-01 to 2025-03-31 | $16.1m | us-gaap:IncomeTaxExpenseBenefit |
| Net income | 3 months, 2025-01-01 to 2025-03-31 | $28.9m | us-gaap:NetIncomeLoss |
| Diluted EPS | 3 months, 2025-01-01 to 2025-03-31 | $0.05 | us-gaap:EarningsPerShareDiluted |
| Basic EPS | 3 months, 2025-01-01 to 2025-03-31 | $0.05 | us-gaap:EarningsPerShareBasic |
| Diluted shares (weighted) | 3 months, 2025-01-01 to 2025-03-31 | 634,708,000 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding |
| Operating cash flow | 3 months, 2025-01-01 to 2025-03-31 | $35.7m | us-gaap:NetCashProvidedByUsedInOperatingActivities |
| Capital expenditure | 3 months, 2025-01-01 to 2025-03-31 | $54.1m | us-gaap:PaymentsToAcquirePropertyPlantAndEquipment |
| Dividends paid | 3 months, 2025-01-01 to 2025-03-31 | $2.5m | us-gaap:PaymentsOfDividends |
| Share repurchases | 3 months, 2025-01-01 to 2025-03-31 | $0 | us-gaap:PaymentsForRepurchaseOfCommonStock |
| Cash and equivalents | at 2025-03-31 | $23.7m | us-gaap:CashAndCashEquivalentsAtCarryingValue |
| Current assets | at 2025-03-31 | $246.3m | us-gaap:AssetsCurrent |
| Total assets | at 2025-03-31 | $3.02bn | us-gaap:Assets |
| Current liabilities | at 2025-03-31 | $172.7m | us-gaap:LiabilitiesCurrent |
| Total liabilities | at 2025-03-31 | $949.6m | us-gaap:Liabilities |
| Current portion of debt | at 2025-03-31 | $33.6m | us-gaap:DebtCurrent |
| Shareholders' equity | at 2025-03-31 | $2.07bn | us-gaap:StockholdersEquity |

## Management's discussion and analysis

As filed, 87,322 characters.

In this Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”), “Hecla,” “the Company,” “we,” “us” and “our” refer to Hecla Mining Company and its consolidated subsidiaries, except where the context requires otherwise. You should read this discussion in conjunction with our consolidated financial statements, the related MD&A and the discussion of our Business and Properties for the year ended December 31, 2024, filed with the United States Securities and Exchange Commission (the “SEC”). The results of operations reported and summarized below are not necessarily indicative of future operating results (refer to “Forward-Looking Statements” above for further discussion). References to “Notes” are Notes included in our Notes to Condensed Consolidated Financial Statements (Unaudited). Throughout this MD&A, all references to income or losses per share are on a diluted basis.

### Overview

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:

1\. Achieving operational excellence through standardized systems and continuous improvement

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

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

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

### First Quarter 2025 Highlights

Operational Achievements:

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

Financial Performance:

- **Revenue Generation** - Generated record sales of $261.3 million a 38% increase over the comparable period sales.
- **Continuous Improvement** - Turned Keno Hill profitable for the first time under our ownership, delivering $1.0 million in gross profit.
- **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.
- **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:

- Extended Greens Creek mineralization 400 feet down plunge to the south in the 200 South Zone
- Confirmed and expanded mineralization at Keno Hill in the Bermingham Deposit through continued drilling.
- 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.

### Consolidated Results of Operations

Total sales for the three months ended March 31, 2025 and 2024 were as follows:

*(in thousands)*

|  | Three Months Ended March 31, 2025 | 2024 |
| --- | ---: | ---: |
| Silver | $118,153 | $86,233 |
| Gold | 87,188 | 67,415 |
| Lead | 22,106 | 19,483 |
| Zinc | 33,125 | 24,964 |
| Copper | 391 | - |
| Less: Smelter and refining charges | (6,712) | (13,014) |
| Total metal sales | 254,251 | 185,081 |
| Environmental remediation services | 7,088 | 4,447 |
| Total sales | $261,339 | $189,528 |

Environmental remediation services revenue is generated by performing remediation work in the historical Yukon Territory mining district on behalf of the Canadian government. The scope and estimated cost of all work is agreed to in advance by the Canadian government, and the expenses incurred are essentially passed through to the government for reimbursement with minimal margin generated by our subsidiary in performing this work.

Total metal sales for the three months ended March 31, 2025 and 2024, and the approximate variances attributed to differences in metals prices, sales volumes and smelter terms, were as follows:

*(in thousands)*

|  | Silver | Gold | Base metals | Less: smelter and refining charges | Total sales of products |
| --- | ---: | ---: | ---: | ---: | ---: |
| **Three months ended March 31, 2024** | $86,233 | $67,415 | $44,447 | $(13,014) | $185,081 |
| Variances - 2025 versus 2024: |  |  |  |  |  |
| Price | 31,109 | 25,106 | 3,929 | — | 60,144 |
| Volume | 811 | (5,333) | 7,246 | 772 | 3,496 |
| Smelter terms | — | — |  | 5,530 | 5,530 |
| **Three months ended March 31, 2025** | $118,153 | $87,188 | $55,622 | $(6,712) | $254,251 |

22

The fluctuation in sales for the three months ended March 31, 2025 compared to the same period in 2024 was primarily due to the following:

- Higher average realized prices for all metals, except lead, during the three months ended March 31, 2025, compared to the same period in 2024. The table below summarizes average spot prices and our average realized prices for the commodities we sell:

|  |  | Three Months Ended March 31, 2025 | 2024 |
| --- | --- | ---: | ---: |
| Silver – | London PM Fix ($/ounce) | $31.91 | $23.36 |
|  | Realized price per ounce | $33.59 | $24.77 |
| Gold – | London PM Fix ($/ounce) | $2,863 | $2,072 |
|  | Realized price per ounce | $2,940 | $2,094 |
| Lead – | LME Final Cash Buyer ($/pound) | $0.89 | $0.94 |
|  | Realized price per pound | $0.92 | $0.97 |
| Zinc – | LME Final Cash Buyer ($/pound) | $1.29 | $1.11 |
|  | Realized price per pound | $1.29 | $1.10 |
| Copper – | LME Final Cash Buyer ($/pound) | $4.24 | $— |
|  | Realized price per pound | $4.41 | $— |

Average realized prices typically differ from average market prices primarily because concentrate sales are generally recorded as revenues at the time of shipment at forward prices for the estimated month of settlement, which differ from average market prices. Due to the time elapsed between shipment of concentrates and final settlement with the customers, we must estimate the prices at which sales of our metals will be settled. Previously recorded sales are adjusted to estimated settlement metals prices each period through final settlement. We recorded net positive price adjustments to provisional settlements of $6.9 million and $3.5 million for the three months ended March 31, 2025 and 2024, respectively. The price adjustments related to silver, gold, zinc, lead and copper contained in our concentrate shipments were partially offset by gains and losses on forward contracts for those metals. See *Note 8* of *Notes to Condensed Consolidated Financial Statements (Unaudited)* for more information. The gains and losses on these contracts are included in revenues and impact the realized prices for silver, gold, lead, zinc and copper. Realized prices are calculated by dividing gross revenues for each metal (which include the price adjustments and gains and losses on the forward contracts discussed above) by the payable quantities of each metal included in concentrate, doré and carbon material shipped during the period.

- The positive effect of higher metal prices was partially counterbalanced by lower sales volumes during the quarter compared to the comparable period in 2024. Gold sales decreased, though this decline was somewhat mitigated by increased sales volumes for silver and all base metals. The reduction in gold sold stemmed primarily from decreased production at both Greens Creek and Casa Berardi operations. However, this was partially counterbalanced by production growth at Lucky Friday and Keno Hill mines, which contributed to higher silver and base metal sales volumes. The Company's production mix shifted, with silver and base metals gaining greater prominence in the overall sales portfolio compared to the previous year's period. See *The Greens Creek Segment, The Lucky Friday Segment, The Keno Hill Segment, and Casa Berardi Segment* sections below for more information on metal production and sales volumes at each of our operating segments. Total metals production and sales volumes for each period are shown in the following table:

|  |  | Three Months Ended March 31, 2025 | 2024 |
| --- | --- | ---: | ---: |
| Silver - | Ounces produced | 4,112,394 | 4,192,098 |
|  | Payable ounces sold | 3,517,970 | 3,481,884 |
| Gold - | Ounces produced | 34,232 | 36,592 |
|  | Payable ounces sold | 29,655 | 32,189 |
| Lead - | Tons produced | 14,007 | 11,922 |
|  | Payable tons sold | 11,990 | 10,020 |
| Zinc - | Tons produced | 16,935 | 16,389 |
|  | Payable tons sold | 12,847 | 11,322 |
| Copper | Tons produced | 411 | 495 |
|  | Payable tons sold | 44 | — |

23

The difference between what we report as “ounces/tons produced” and “payable ounces/tons sold” is attributable to the difference between the quantities of metals contained in the concentrates we produce versus the portion of those metals actually paid for by our customers according to the terms of our sales contracts. Differences can also arise from inventory changes incidental to shipping schedules, or variances in ore grades which impact the amount of metals contained in concentrates produced and sold.

Sales, total cost of sales, gross profit (loss), Cash Cost, After By-product Credits, per Ounce (“Cash Cost”) (non-GAAP) and AISC (non-GAAP) at our operating segments for the three months ended March 31, 2025 and 2024 were as follows (in thousands, except for Cash Cost and AISC):

| Three Months Ended March 31, 2025: | Silver Greens Creek | Lucky Friday | Keno Hill | Total Silver (2) | Gold and Other Casa Berardi | Other (3) | Total Gold and Other |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Sales | $118,143 | $63,194 | $16,909 | $198,246 | $56,005 | $7,088 | $63,093 |
| Total cost of sales | (69,638) | (44,049) | (15,871) | (129,558) | (50,682) | $(7,095) | (57,777) |
| Gross profit | $48,505 | $19,145 | $1,038 | $68,688 | $5,323 | $(7) | $5,316 |
| Cash Cost (1) | $(4.08) | $9.37 | $— | $1.29 | $2,195 | $— | $2,195 |
| AISC (1) | $(0.03) | $20.08 | $— | $11.91 | $2,303 | $— | $2,303 |
| **Three Months Ended March 31, 2024:** |  |  |  |  |  |  |  |
| Sales | $97,310 | $35,340 | $10,847 | $143,497 | $41,584 | $4,447 | $46,031 |
| Total cost of sales | (69,857) | (27,519) | (10,847) | (108,223) | (58,260) | (3,885) | (62,145) |
| Gross profit (loss) | $27,453 | $7,821 | $— | $35,274 | $(16,676) | $562 | $(16,114) |
| Cash Cost (1) | $3.45 | $8.85 | $— | $4.78 | $1,669 | $— | $1,669 |
| AISC (1) | $7.16 | $17.36 | $— | $13.10 | $1,899 | $— | $1,899 |

(1) A reconciliation of these non-GAAP measures to total cost of sales, the most comparable GAAP measure, can be found below in *Reconciliation of Total Cost of Sales (GAAP) to Cash Cost, Before By-product Credits and Cash Cost, After By-product Credits (non-GAAP) and All-In Sustaining Cost, Before By-product Credits and All-In Sustaining Cost, After By-product Credits (non-GAAP).*

(2) The calculation of AISC for our consolidated silver properties includes corporate costs for general and administrative expense and sustaining capital.

(3) For the three months ended March 31, 2025, Other includes sales and total cost of sales of $7.1 million from our environmental remediation services in the Yukon. For the three months ended March 31, 2024, Other includes sales of $4.4 million and total cost of sales of $3.9 million.

While revenue from zinc, lead, copper and gold by-products is significant, we believe that identification of silver as the primary product of Greens Creek, Lucky Friday and Keno Hill is appropriate because:

- silver has historically accounted for a higher proportion of revenue than any other metal and is expected to do so in the future;
- we have historically presented the Greens Creek and Lucky Friday units as primary silver producers, based on the original analysis that justified putting the project into production, and the same analysis applies to the Keno Hill unit. Further we believe that consistency in disclosure is important to our investors regardless of the relationships of metals prices and production from year to year;
- metallurgical treatment maximizes silver recovery;
- the Greens Creek, Lucky Friday and Keno Hill deposits are massive sulfide deposits containing an unusually high proportion of silver; and
- in most of their working areas, Greens Creek, Lucky Friday and Keno Hill utilize selective mining methods in which silver is the metal targeted for highest recovery.

Accordingly, we believe the identification of gold, lead, zinc and copper as by-product credits at Greens Creek, Lucky Friday and Keno Hill is appropriate because of their lower economic value compared to silver and due to the fact that silver is the primary product we intend to produce at those locations. In addition, we have not consistently received sufficient revenue from any single by-product metal to warrant classification of such as a co-product.

We periodically review our revenues to ensure that reporting of primary products and by-products is appropriate. Because for Greens Creek, Lucky Friday and Keno Hill we consider zinc, lead, gold and copper to be by-products of our silver production, the values of these metals offset operating costs within our calculations of Cash Cost, After By-product Credits, per Silver Ounce and AISC, After

By-product Credits, per Silver Ounce. We currently do not report Cash Cost, After By-product Credits, per Silver Ounce and AISC, After By-product Credits, per Silver Ounce for our Keno Hill operation as it is in the production ramp-up phase and has not met our definition of commercial production, and accordingly it is excluded from our consolidated Cash Cost, After By-product Credits, per Silver Ounce and AISC, After By-product Credits, per Silver Ounce. We define an operation as being in commercial production upon achievement of the following criteria:

- Completion of operational commissioning of each major mine and mill component;
- Demonstrated ability to mine and mill consistently and without significant interruption, defined as 75% of historical production levels or mill design capacity over a period of 90 days (previously 30 days);
- Silver recoveries are at or near expected steady-state production levels;
- All major capital expenditures have been completed; and
- A significant portion of available funding is directed towards operating activities.

Currently we meet only one of the above criteria - silver recoveries are at expected steady state-state production levels. Determination of when these criteria have been met requires the use of judgment, and our definition of commercial production may differ from that of other mining companies.

As Keno Hill has not yet been determined to be in commercial production, its costs and by-product credits are excluded from our consolidated Cash Cost, After By-product Credits, per Silver Ounce and AISC, After By-product Credits, per Silver Ounce because (i) by definition it has not reached the sustaining stage and (ii) including its costs and by-product credits we believe would distort consolidated Cash Cost, After By-product Credits, per Silver Ounce and AISC, After By-product Credits, per Silver Ounce of our operating silver mines that are in commercial production and operating as designed, and not facilitate a meaningful comparison of our performance versus that of our peers who do not report such metrics for mines that are not in commercial production.

We believe the identification of silver as a by-product credit is appropriate at Casa Berardi because of its lower economic value compared to gold and due to the fact that gold is the primary product we intend to produce there. In addition, we do not receive sufficient revenue from silver at the Casa Berardi mine to warrant classification of such as a co-product. Because we consider silver to be a by-product of our gold production at Casa Berardi, the value of silver offsets operating costs within our calculations of Cash Cost, After By-product Credits, per Gold Ounce and AISC, After By-product Credits, per Gold Ounce.

We reported net income applicable to common stockholders of $28.7 million for the three months ended March 31, 2025, compared to a net loss applicable to common stockholders of $5.9 million in the comparable period in 2024. The following were the significant drivers of the change:

- Consolidated gross profit increased by $54.8 million. See *The Greens Creek Segment, The Lucky Friday Segment, The Keno Hill Segment, and The Casa Berardi Segment* sections below for a discussion on the key drivers by operating unit.
- Ramp-up and suspension costs decreased by $11.2 million due to the current period containing no ramp-up costs for Keno Hill, as the site recorded gross profit, whereas in the prior period lower revenue led to a cost of sales transfer of $8.7 million to ramp-up and suspension costs. In addition, the prior period included $2.2 million of suspension costs related to the temporary suspension of operations at Lucky Friday due to the underground fire prior to the restart of operations on January 8, 2024.
- Fair value adjustments, net increased by $5.5 million primarily due to $3.6 million in unrealized gains on our marketable equity securities portfolio in the current period. In addition, the prior period contained $1.9 million in losses on our undesignated derivative contracts.

The positive movements mentioned above were partly offset by:

- Other operating expense (income), net increased by $18.0 million primarily due to the prior period containing $17.4 million of insurance proceeds received related to the Lucky Friday fire.
- Net foreign exchange loss increased by $4.3 million to a loss of $0.4 million, compared to a gain of $3.9 million in the comparable period. During the current period, exchange rates remained relatively stable, whereas the prior period saw a strengthening of the US dollar against Canadian dollar.
- Income and mining tax expense increased by $14.3 million due to higher taxable income generated by our US tax group.

### Greens Creek

| Dollars are in thousands (except per ounce and per ton amounts) | Three Months Ended March 31, 2025 | 2024 |
| --- | ---: | ---: |
| Sales | $118,143 | $97,310 |
| Cost of sales and other direct production costs | (56,049) | (55,414) |
| Depreciation, depletion and amortization | (13,589) | (14,443) |
| Total cost of sales | (69,638) | (69,857) |
| Gross profit | $48,505 | $27,453 |
| Tons of ore milled | 212,899 | 232,188 |
| Production: |  |  |
| Silver (ounces) | 2,002,560 | 2,478,594 |
| Gold (ounces) | 13,759 | 14,588 |
| Lead (tons) | 4,496 | 4,834 |
| Zinc (tons) | 12,835 | 13,062 |
| Copper (tons) | 411 | 495 |
| Payable metal quantities sold: |  |  |
| Silver (ounces) | 1,744,652 | 2,090,449 |
| Gold (ounces) | 10,478 | 12,186 |
| Lead (tons) | 3,321 | 3,670 |
| Zinc (tons) | 9,507 | 9,564 |
| Copper (tons) | 44 | — |
| Ore grades: |  |  |
| Silver ounces per ton | 11.8 | 13.3 |
| Gold ounces per ton | 0.09 | 0.09 |
| Lead percent | 2.6% | 2.6% |
| Zinc percent | 6.8% | 6.3% |
| Copper percent | 0.3% | 0.2% |
| Total production cost per ton | $240.00 | $212.92 |
| Cash Cost, After By-product Credits, per Silver Ounce (1) | $(4.08) | $3.45 |
| AISC, After By-Product Credits, per Silver Ounce (1) | $(0.03) | $7.16 |
| Capital additions | $10,759 | $8,827 |

(1) A reconciliation of these non-GAAP measures to total cost of sales, the most comparable GAAP measure, can be found below in *Reconciliation of Total Cost of Sales (GAAP) to Cash Cost, Before By-product Credits and Cash Cost, After By-product Credits (non-GAAP) and All-In Sustaining Cost, Before By-product Credits and All-In Sustaining Cost, After By-product Credits (non-GAAP).*

The $21.1 million increase in gross profit for the three months ended March 31, 2025, compared to the same period in 2024 was primarily due to higher realized sales prices for silver, gold and zinc, partially offset by lower metals sales volumes. Capital additions in the current quarter were $1.9 million higher than the prior year period and included $3.1 million for primary ore access development, $1.4 million for mine development and $1.2 million for definition drilling.

Production during the three months ended March 31, 2025, declined primarily due to a combination of lower tons milled reflecting a combination of lower heading availability, long hole mining and lower grade ore.

The charts below illustrate the factors contributing to Cash Cost, After By-product Credits, per Silver Ounce for Greens Creek:

|  | Three Months Ended March 31, 2025 | 2024 |
| --- | ---: | ---: |
| Cash Cost, Before By-product Credits, per Silver Ounce | $28.46 | $25.13 |
| By-product credits | (32.54) | (21.68) |
| Cash Cost, After By-product Credits, per Silver Ounce | $(4.08) | $3.45 |

|  | Three Months Ended March 31, 2025 | 2024 |
| --- | ---: | ---: |
| AISC, Before By-product Credits, per Silver Ounce | $32.51 | $28.84 |
| By-product credits | (32.54) | (21.68) |
| AISC, After By-product Credits, per Silver Ounce | $(0.03) | $7.16 |

For the three months ended March 31, 2025, the decrease in Cash Cost, After By-product Credits, per Silver Ounce and AISC, After By-product Credits, per Silver Ounce was primarily due to an increase in by-product credits, benefiting from higher realized gold and zinc prices, partly offset by higher production costs and lower ounces produced. AISC, After By-product Credits, per Silver Ounce also benefited from lower sustaining capital expenditures.

### Lucky Friday

| Dollars are in thousands (except per ounce and per ton amounts) | Three Months Ended March 31, 2025 | 2024 |
| --- | ---: | ---: |
| Sales | $63,194 | $35,340 |
| Cost of sales and other direct production costs | (30,624) | (19,608) |
| Depreciation, depletion and amortization | (13,425) | (7,911) |
| Total cost of sales | (44,049) | (27,519) |
| Gross profit | $19,145 | $7,821 |
| Tons of ore milled | 108,745 | 86,234 |
| Production: |  |  |
| Silver (ounces) | 1,332,252 | 1,061,065 |
| Lead (tons) | 8,480 | 6,689 |
| Zinc (tons) | 3,681 | 2,851 |
| Payable metal quantities sold: |  |  |
| Silver (ounces) | 1,268,845 | 953,891 |
| Lead (tons) | 7,978 | 5,992 |
| Zinc (tons) | 3,081 | 1,641 |
| Ore grades: |  |  |
| Silver ounces per ton | 13.0 | 12.9 |
| Lead percent | 8.2% | 8.2% |
| Zinc percent | 4.0% | 3.9% |
| Total production cost per ton | $258.59 | $233.10 |
| Cash Cost, After By-product Credits, per Silver Ounce (1) | $9.37 | $8.85 |
| AISC, After By-product Credits, per Silver Ounce (1) | $20.08 | $17.36 |
| Capital additions | $15,446 | $14,988 |

(1) A reconciliation of these non-GAAP measures to total cost of sales, the most comparable GAAP measure, can be found below in *Reconciliation of Total Cost of Sales (GAAP) to Cash Cost, Before By-product Credits and Cash Cost, After By-product Credits (non-GAAP) and All-In Sustaining Cost, Before By-product Credits and All-In Sustaining Cost, After By-product Credits (non-GAAP).*

Gross profit increased by $11.3 million for the three months ended March 31, 2025 compared to the comparable period in 2024, reflecting a combination of higher sales volumes for all metals due to a full quarter of production in 2025, compared to 2024 when operations did not resume until January 9, 2024, following suspension of operations in August 2023, due to the underground fire in the secondary egress. Higher realized prices for silver and zinc also contributed to the higher gross profit, however this benefit was partly offset by higher contractor, drilling, consumables and maintenance costs reflecting the higher volumes produced and sold, and higher profit sharing costs under the collective bargaining agreement.

Capital additions increased by $0.5 million for the three months ended March 31, 2025, compared to the comparable period in 2024. Significant capital expenditures in 2025 related to capital development of $7.0 million, mobile equipment purchases of $2.6 million and definition drilling of $1.9 million.

The charts below illustrate the factors contributing to Cash Cost, After By-product Credits, Per Silver Ounce for Lucky Friday:

|  | Three Months Ended March 31, 2025 | 2024 |
| --- | ---: | ---: |
| Cash Cost, Before By-product Credits, per Silver Ounce | $25.13 | $24.41 |
| By-product credits | (15.76) | (15.56) |
| Cash Cost, After By-product Credits, per Silver Ounce | $9.37 | $8.85 |

|  | Three Months Ended March 31, 2025 | 2024 |
| --- | ---: | ---: |
| AISC, Before By-product Credits, per Silver Ounce | $35.84 | $32.92 |
| By-product credits | (15.76) | (15.56) |
| AISC, After By-product Credits, per Silver Ounce | $20.08 | $17.36 |

The increase in Cash Cost, After By-product Credits, per Silver Ounce and AISC, After By-product Credits, per Silver Ounce for the three months ended March 31, 2025, compared to the same period in 2024 was primarily due to higher production costs, partly offset by higher silver production reflecting a full quarter's production compared to operations only commencing on January 9, 2024 following suspension in August 2023. AISC, After By-product Credits, per Silver Ounce was also negatively impacted by higher sustaining capital.

### Keno Hill

| Dollars are in thousands (except per ounce and per ton amounts) | Three Months Ended March 31, 2025 | 2024 |
| --- | ---: | ---: |
| Sales | $16,909 | $10,847 |
| Cost of sales and other direct production costs | (13,069) | (7,245) |
| Depreciation, depletion and amortization | (2,802) | (3,602) |
| Total cost of sales | (15,871) | (10,847) |
| Gross profit | $1,038 | $— |
| Tons of ore milled | 27,411 | 25,165 |
| Production: |  |  |
| Silver (ounces) | 772,430 | 646,312 |
| Lead (tons) | 1,031 | 576 |
| Zinc (tons) | 419 | 298 |
| Payable metal quantities sold: |  |  |
| Silver (ounces) | 499,252 | 432,331 |
| Lead (tons) | 691 | 359 |
| Zinc (tons) | 259 | 116 |
| Ore grades: |  |  |
| Silver ounces per ton | 29.0 | 26.3 |
| Lead percent | 4.0% | 2.4% |
| Zinc percent | 1.9% | 1.3% |
| Capital additions | $10,436 | $10,346 |

We have not disclosed cost per ounce statistics for the Keno Hill operation as it is in the production ramp-up phase and has not met our definition of commercial production. See above "Consolidated Results of Operations" for our definition of commercial production. Determination of when those criteria have been met requires the use of judgment, and our definition of commercial production may differ from that of other mining companies.

We acquired our Keno Hill operations as part of the Alexco acquisition in September 2022 and have focused on development activities and began ramp-up of the mill during the second quarter of 2023. The average throughput during the three months ended March 31, 2025, was 305 tons per day (the mine is currently permitted to a maximum of an average of 440 tons per day), with silver grades milled of 29.0 ounces per ton. The mill relied on the existing ore stockpiles as the mine continues to ramp up to higher tonnage rates with mining rates of 259 tons per day during the quarter with material sourced from both the Bermingham and Flame and Moth deposits. Mill throughput was negatively impacted by events beginning in late August, 2024, and continuing into 2025 as described below.

During the three months ended March 31, 2025 and 2024, Keno Hill recorded sales of $16.9 million and $10.8 million, respectively, with the increase in sales attributable to a combination of higher realized sales prices and volumes. As a result of higher revenues, Keno Hill generated a gross profit of $1.0 million during the three months ended March 31, 2025, and did not transfer any cost of sales to ramp-up and suspension costs. During the first quarter of 2024, total cost of sales exceeded sales by $8.7 million and accordingly were reclassified to ramp-up and suspension costs in the *Condensed Consolidated Statements of Operations and Comprehensive Income (Loss), (Unaudited)*. During the quarter, Keno Hill recorded capital additions of $10.4 million, related to mine development and other mining equipment purchases.

From commencement of production until late August, 2024, ore production and mill throughput generally increased as planned, leading to increased levels of production (though still not reaching profitability or the permitted capacity at the mill). However, starting in mid-2024 and continuing today, Keno Hill has been impacted by external events which have affected permitting, projects and production, and delayed our ability to reach increased, profitable production. In late June 2024, an unrelated, third party, Victoria Gold, experienced a heap leach failure at its Eagle Mine which is located near Keno Hill. This incident had several immediate and ongoing impacts on our operations. The primary impact was we were forced to suspend milling operations at Keno Hill between August 27 and October 26 due to delays in receiving an authorization for mill construction and a permit modification for Keno Hill’s dry stack tailings storage facility (“DSTF”). The delayed authorization and permit were a result of the focus of the Yukon Government (“YG”) and the First Nation of Na-Cho Nyäk Dun (“FNNND”) on the Eagle Mine incident response and not on routine permitting matters. Mill operations and design and construction projects (including DSTF construction) resumed during the fourth quarter of 2024, but permitting and projects remain behind our original planned schedule, which has also impacted mine development, and these delays continue to impact our ability to ramp up production from the mine.

A second and ongoing impact of the Eagle Mine incident was the expression of strong positions by the FNNND on continuing and future mining activities at projects within their Traditional Territory, where Keno Hill (and Eagle Mine) is located, including an initial call to halt mining production. The FNNND 's position has evolved since then to support environmentally responsible mining practices. We are committed to responsible and sustainable mining that governments and local communities support, including the FNNND, and this factors into to our evolving plans and projections for Keno Hill.

Then, starting in late October 2024, Keno Hill began experiencing power curtailments when Yukon Energy experienced a turbine failure at its hydroelectric plant in Whitehorse. That failure and Yukon Energy’s resulting focus on line maintenance, combined with cold temperatures in the Yukon (and the resulting increase in demand for power), caused Yukon Energy to reduce power to Keno Hill, resulting in the operation’s inability to fully power the mine and mill on several occasions in late 2024 and for 8 days in the first quarter of 2025. We estimate that this caused us, on a cumulative basis through March 31, 2025, to incur (i) a delay of approximately 130,000 ounces of silver production and (ii) labor costs for idled employees of approximately $500,000. We do not expect these disruptions to continue as the weather improves, during which time it is expected YEC's generating demand is lower, except that we expect a 6-day outage in August 2025 when the turbine at Yukon Energy's hydroelectric plant in Whitehorse is scheduled to be fixed. There can be no assurance that Keno Hill will not face power supply constraints in the future.

Permitting is one of the most important factors in our ability to reach sustainable, profitable production at Keno Hill. Increased production means a need for increased tailings storage, waste storage, water treatment, camp space and reliable power. These projects require new or modified permits, including from the YG to exceed 440 tons per day, as well as the capital to implement them. Although we continue to make progress on permitting matters, we have yet to make up for the delays described above. We also continue to face operational challenges such as work force availability, dilution, execution of projects, limited camp space, and the ramp-up of the Company's environmental remediation services group activities in the summer (which adds incremental demand on Keno Hill's infrastructure and resources, most notably camp space). As a result, we continue to project 2025 silver production to be comparable to 2024 levels. The projected flat production levels at Keno Hill for 2025 should allow us to focus on (i) permitting, (ii) stakeholder outreach and ensuring we have local support, (iii) projects such as tailings storage expansion, construction of a cemented tails batch plant and the Bermingham water treatment plant improvements, (iv) mine development and (v) meeting the above-mentioned operational challenges.

As stated above, Keno Hill has generated marginal profits for us at current throughput rates and prices. Our immediate focus is to advance permits and successfully execute infrastructure projects, with the goal of putting the mine on a path toward achieving its current permitted capacity of 440 tons per day which, at current prices, we project would generate positive cash flow. We estimate that to be sustainably profitable at our current long-range metals prices (which are significantly lower than current prices), throughput rates would need to reach approximately 500 to 600 tons per day, due to Keno Hill's high fixed costs. To reach this level of throughput, we would need ore from both the Bermingham deposit and the lower grade Flame & Moth deposit. Currently Keno Hill is not configured to sustainably produce 440 tons per day (although the mill has achieved that rate for multiple weeks on end during test run periods). Achieving 440 or higher tons per day would require continuing high silver prices, significant capital expenditures, obtaining permits, executing projects, mine development and maintaining community support. If any one of these were not to occur, particularly if prices were to decrease from current prices, Keno Hill as currently configured would not be profitable, and placing the operation on care and maintenance would be an option. See *Item 1A. Risk Factors - We may not realize all of the anticipated benefits from our acquisitions, including our 2022 acquisition of Alexco.*

### Casa Berardi

| Dollars are in thousands (except per ounce and per ton amounts) | Three Months Ended March 31, 2025 | 2024 |
| --- | ---: | ---: |
| Sales | $56,005 | $41,584 |
| Cost of sales and other direct production costs | (42,113) | (35,309) |
| Depreciation, depletion and amortization | (8,569) | (22,951) |
| Total cost of sales | (50,682) | (58,260) |
| Gross profit (loss) | $5,323 | $(16,676) |
| Tons of ore milled | 391,168 | 381,626 |
| Production: |  |  |
| Gold (ounces) | 20,473 | 22,004 |
| Silver (ounces) | 5,152 | 6,127 |
| Payable metal quantities sold: |  |  |
| Gold (ounces) | 19,177 | 20,003 |
| Silver (ounces) | 5,221 | 5,213 |
| Ore grades: |  |  |
| Gold ounces per ton | 0.06 | 0.07 |
| Silver ounces per ton | 0.02 | 0.02 |
| Total production cost per ton | $115.19 | $96.53 |
| Cash Cost, After By-product Credits, per Gold Ounce (1) | $2,195 | $1,669 |
| AISC, After By-product Credits, per Gold Ounce (1) | $2,303 | $1,899 |
| Capital additions | $16,257 | $13,316 |

(1) A reconciliation of these non-GAAP measures to total cost of sales, the most comparable GAAP measure, can be found below in *Reconciliation of Total Cost of Sales (GAAP) to Cash Cost, Before By-product Credits and Cash Cost, After By-product Credits (non-GAAP) and All-In Sustaining Cost, Before By-product Credits and All-In Sustaining Cost, After By-product Credits (non-GAAP).*

Casa Berardi is advancing toward a more streamlined and efficient surface-only operation, with plans to focus exclusively on the 160 pit by mid-2025. This transition follows the successful extraction of higher-margin stopes from the west underground mine, positioning the Company for continued productivity and cost-effective mining. Our previously announced strategic review is ongoing and includes evaluating the following scenarios (i) an outright disposal, (ii) joint venturing the asset, (iii) spin-out of the asset, (iv) extending the underground mine, and (iv) accelerating future cash flows to capture part of the current record gold prices via a prepayment structure or other financing arrangement. If underground mining is not extended, Casa Berardi is expected to only produce gold from the 160 open pit, and at lower volumes than historic production levels, with production expected to conclude at the 160 open pit in 2027. We forecast a gap in production commencing in 2027 and lasting until 2032 or later, when no ore is expected to be mined and no revenue is expected. During this hiatus, our focus is expected to be on investing in infrastructure and equipment, permitting and de-watering and stripping two expected new open pits, Principal and West Mine Crown Pillar. Upon successful completion of permitting, design, and construction of the new open pits (which is not assured), we expect Casa Berardi to generate substantial free cash flow at current gold prices when production resumes. This long-term approach aligns with our commitment to maximizing the value of our assets through strategic mine planning and operational flexibility.

Gross profit increased by $22.0 million to $5.3 million for the three months ended March 31, 2025, compared to a gross loss of $16.7 million in the same period in 2024. The increase in gross profit is primarily related to higher realized prices, partly offset by lower gold ounces sold and higher contractor costs. The prior period gross loss also included higher depreciation expense related to accelerated depreciation of the west underground mine and a product inventory net realizable value write down of $5.1 million. Capital additions increased by $2.9 million to $16.3 million during the quarter, compared to the same period in 2024, and primarily related to a tailings dam raise.

Although Casa Berardi generated gross profits during the last three quarters, it has generated gross losses for the prior three fiscal years and for seven of the last ten quarters. This lack of profitability, the expected hiatus in future production discussed above, the uncertainty surrounding permitting and pit design and construction, and the time involved to resolve these uncertainties, has caused us to undertake a review of how Casa Berardi fits into the Company's future strategy. While it is possible we may continue down the path towards future production at the Principal and West Mine Crown Pillar pits, we are also examining potential strategic alternatives.

The charts below illustrate the factors contributing to Cash Cost, After By-product Credits, Per Gold Ounce for Casa Berardi:

|  | Three Months Ended March 31, 2025 | 2024 |
| --- | ---: | ---: |
| Cash Cost, Before By-product Credits, per Gold Ounce | $2,203 | $1,675 |
| By-product credits | (8) | (6) |
| Cash Cost, After By-product Credits, per Gold Ounce | $2,195 | $1,669 |

|  | Three Months Ended March 31, 2025 | 2024 |
| --- | ---: | ---: |
| AISC, Before By-product Credits, per Gold Ounce | $2,311 | $1,905 |
| By-product credits | (8) | (6) |
| AISC, After By-product Credits, per Gold Ounce | $2,303 | $1,899 |

The increase in Cash Cost After By-product Credits, per Gold Ounce, and AISC, After By-product Credits, per Gold Ounce for the three months ended March 31, 2025, compared to the same period in 2024 was primarily due to lower gold production and higher production costs. AISC, After By-product Credits, per Gold Ounce benefited from lower sustaining capital over the comparable period in 2024.

### Corporate Matters

#### Income Taxes

During the three months ended March 31, 2025, an income and mining tax provision of $16.1 million resulted in an effective tax rate of 35.9%. This compares to an income and mining tax provision of $1.8 million which resulted in an effective tax rate of (46.1%), for the three months ended March 31, 2024. The comparability of our income and mining tax provision and effective tax rate for the reported periods was impacted by multiple factors, primarily: (i) mining taxes; (ii) variations in our income before income taxes; (iii) geographic distribution of that income; (iv) foreign exchange rates including non-recognition of foreign exchange gains and losses; (v) percentage depletion; and (vi) the non-recognition of tax assets. The effective tax rate will fluctuate, sometimes significantly, period to period. The change in the effective tax rate during the three months ended March 31, 2025, compared to the comparable periods in 2024 is primarily related to the reported consolidated income (loss) as well as the losses incurred at our consolidated Alexco subsidiaries, and our Nevada subsidiaries, for which no tax benefit is recognized due to uncertainty surrounding our ability to utilize these future tax benefits.

Each reporting period we assess our deferred tax balances based on a review of long-range forecasts and quarterly activity. A valuation allowance is provided for deferred tax assets for which it is more likely than not the related tax benefits will not be realized. We analyze our deferred tax assets and, if it is determined that we will not realize all or a portion of our deferred tax assets, we record or increase a valuation allowance. Conversely, if it is determined we will ultimately more likely than not be able to realize all or a portion of the related benefits for which a valuation allowance has been provided, all or a portion of the related valuation allowance will be reduced. There are a number of factors that impact our ability to realize our deferred tax assets. Valuation allowances are provided on deferred tax assets in Nevada, Mexico, and certain Canadian jurisdictions. For additional information, please see risk factors *Our accounting and other estimates may be imprecise* and *Our ability to recognize the benefits of deferred tax assets related to net operating loss carryforwards and other items is dependent on future cash flows generating taxable income* in *Item 1A - Risk Factors* in our 2024 Form 10-K.

**Reconciliation of Total Cost of Sales to Cash Cost, Before By-product Credits and Cash Cost, After By-product Credits (non-GAAP) and All-In Sustaining Cost, Before By-product Credits and All-In Sustaining Cost, After By-product Credits (non-GAAP)**

The tables below present reconciliations between the most comparable GAAP measure of total cost of sales to the non-GAAP measures of (i) Cash Cost, Before By-product Credits, (ii) Cash Cost, After By-product Credits, (iii) AISC, Before By-product Credits and (iv) AISC, After By-product Credits for our operations and for the Company for the three months ended March 31, 2025 and 2024.

Cash Cost, After By-product Credits, per Ounce and AISC, After By-product Credits, per Ounce are measures developed by precious metals companies (including the Silver Institute and the World Gold Council) in an effort to provide a uniform standard for comparison purposes. There can be no assurance, however, that these non-GAAP measures as we report them are the same as those reported by other mining companies.

Cash Cost, After By-product Credits, per Ounce is an important operating statistic that we utilize to measure each mine's operating performance. We use AISC, After By-product Credits, per Ounce as a measure of our mines' net cash flow after costs for reclamation and sustaining capital. This is similar to the Cash Cost, After By-product Credits, per Ounce non-GAAP measure we report, but also includes reclamation and sustaining capital costs. Current GAAP measures used in the mining industry, such as cost of goods sold, do not capture all the expenditures incurred to discover, develop and sustain silver and gold production. Cash Cost, After By-product Credits, per Ounce and AISC, After By-product Credits, per Ounce also allow us to benchmark the performance of each of our mines versus those of our competitors. As a silver and gold mining company, we also use these statistics on an aggregate basis - aggregating the Greens Creek and Lucky Friday mines to compare our performance with that of other silver mining companies. Similarly, these statistics are useful in identifying acquisition and investment opportunities as they provide a common tool for measuring the financial performance of other mines with varying geologic, metallurgical and operating characteristics.

We have not disclosed cost per ounce statistics for the Keno Hill operation as it is in the production ramp-up phase and has not met our definition of commercial production. See above "*Consolidated Results of Operations*" for our definition of commercial production. Determination of when those criteria have been met requires the use of judgment, and our definition of commercial production may differ from that of other mining companies.

Cash Cost, Before By-product Credits and AISC, Before By-product Credits include all direct and indirect operating cash costs related directly to the physical activities of producing metals, including mining, processing and other plant costs, third-party refining expense, on-site general and administrative costs, royalties and mining production taxes. AISC, Before By-product Credits for each mine also includes reclamation and sustaining capital costs. AISC, Before By-product Credits for our consolidated silver properties also includes corporate costs for general and administrative expense and sustaining capital costs. By-product credits include revenues earned from all metals other than the primary metal produced at each unit. As depicted in the tables below, by-product credits comprise an essential element of our silver unit cost structure, distinguishing our silver operations due to the polymetallic nature of their orebodies.

In addition to the uses described above, Cash Cost, After By-product Credits, per Ounce and AISC, After By-product Credits, per Ounce provide management and investors an indication of operating cash flow, after consideration of the average price received from production. We also use these measurements for the comparative monitoring of performance of our mining operations period-to-period from a cash flow perspective. We currently do not report Cash Cost, After By-product Credits, per Silver Ounce and AISC, After By-product Credits, per Silver Ounce for our Keno Hill operation as it is in the ramp-up phase of production and accordingly it is excluded from our consolidated Cash Cost, After By-product Credits, per Silver Ounce and AISC, After By-product Credits, per Silver Ounce.

Casa Berardi reports Cash Cost, After By-product Credits, per Gold Ounce and AISC, After By-product Credits, per Gold Ounce for the production of gold, their primary product, and by-product revenues earned from silver, which is a by-product at Casa Berardi. Only costs and ounces produced relating to units with the same primary product are combined to represent Cash Cost, After

By-product Credits, per Ounce and AISC, After By-product Credits, per Ounce. Thus, the gold produced at Casa Berardi is not included as a by-product credit when calculating Cash Cost, After By-product Credits, per Silver Ounce and AISC, After By-product Credits, per Silver Ounce for the total of Greens Creek and Lucky Friday, our combined silver properties. Similarly, the silver produced at our other three units is not included as a by-product credit when calculating the gold metrics for Casa Berardi.

| In thousands (except per ounce amounts) | Three Months Ended March 31, 2025 Greens Creek | Lucky Friday | Keno Hill (5) | Corporate (2) | Total Silver |
| --- | ---: | ---: | ---: | ---: | ---: |
| Total cost of sales | $69,638 | $44,049 | $15,871 | $— | $129,558 |
| Depreciation, depletion and amortization | (13,589) | (13,425) | (2,802) | — | (29,816) |
| Treatment costs | 2,143 | 3,963 | — | — | 6,106 |
| Change in product inventory | (901) | (839) | — | — | (1,740) |
| Reclamation and other costs | (307) | (273) | — | — | (580) |
| Exclusion of Keno Hill cash costs (5) | — | — | (13,069) | — | (13,069) |
| Cash Cost, Before By-product Credits (1) | 56,984 | 33,475 | — | — | 90,459 |
| Reclamation and other costs | 757 | 195 | — | — | 952 |
| Sustaining capital | 7,368 | 14,070 | — | 1,025 | 22,463 |
| General and administrative | — | — | — | 11,999 | 11,999 |
| AISC, Before By-product Credits (1) | 65,109 | 47,740 | — | 13,024 | 125,873 |
| By-product credits: |  |  |  |  |  |
| Zinc | (23,374) | (6,950) | — | — | (30,324) |
| Gold | (34,977) | — | — | — | (34,977) |
| Lead | (6,091) | (14,043) | — | — | (20,134) |
| Copper | (729) | — | — | — | (729) |
| Total By-product credits | (65,171) | (20,993) | — | — | (86,164) |
| Cash Cost, After By-product Credits | $(8,187) | $12,482 | $— | $— | $4,295 |
| AISC, After By-product Credits | $(62) | $26,747 | $— | $13,024 | $39,709 |
| Ounces produced | 2,003 | 1,332 |  |  | 3,335 |
| Cash Cost, Before By-product Credits, per Ounce | $28.46 | $25.13 |  |  | $27.13 |
| By-product credits per ounce | (32.54) | (15.76) |  |  | (25.84) |
| Cash Cost, After By-product Credits, per Ounce | $(4.08) | $9.37 |  |  | $1.29 |
| AISC, Before By-product Credits, per Ounce | $32.51 | $35.84 |  |  | $37.75 |
| By-product credits per ounce | (32.54) | (15.76) |  |  | (25.84) |
| AISC, After By-product Credits, per Ounce | $(0.03) | 20.08 |  |  | $11.91 |

35

| In thousands (except per ounce amounts) | Three Months Ended March 31, 2025 Gold - Casa Berardi | Other (4) | Total Gold and Other |
| --- | ---: | ---: | ---: |
| Total cost of sales | $50,682 | $7,095 | $57,777 |
| Depreciation, depletion and amortization | (8,569) | — | (8,569) |
| Treatment costs | 45 | — | 45 |
| Change in product inventory | 3,258 | — | 3,258 |
| Reclamation and other costs | (312) | — | (312) |
| Exclusion of Other costs |  | (7,095) | (7,095) |
| Cash Cost, Before By-product Credits (1) | 45,104 | — | 45,104 |
| Reclamation and other costs | 312 | — | 312 |
| Sustaining capital | 1,894 | — | 1,894 |
| AISC, Before By-product Credits (1) | 47,310 | — | 47,310 |
| By-product credits: |  |  |  |
| Silver | (165) | — | (165) |
| Total By-product credits | (165) | — | (165) |
| Cash Cost, After By-product Credits | $44,939 | $— | $44,939 |
| AISC, After By-product Credits | $47,145 | $— | $47,145 |
| Divided by ounces produced | 20 | — | 20 |
| Cash Cost, Before By-product Credits, per Ounce | $2,203 | $— | $2,203 |
| By-product credits per ounce | (8) | — | (8) |
| Cash Cost, After By-product Credits, per Ounce | $2,195 | $— | $2,195 |
| AISC, Before By-product Credits, per Ounce | $2,311 | $— | $2,311 |
| By-product credits per ounce | (8) | — | (8) |
| AISC, After By-product Credits, per Ounce | $2,303 | $— | $2,303 |

36

| In thousands (except per ounce amounts) | Three Months Ended March 31, 2025 Total Silver | Total Gold and Other | Total |
| --- | ---: | ---: | ---: |
| Total cost of sales | $129,558 | $57,777 | $187,335 |
| Depreciation, depletion and amortization | (29,816) | (8,569) | (38,385) |
| Treatment costs | 6,106 | 45 | 6,151 |
| Change in product inventory | (1,740) | 3,258 | 1,518 |
| Reclamation and other costs | (580) | (312) | (892) |
| Exclusion of Keno Hill cash costs (5) | (13,069) | — | (13,069) |
| Exclusion of Other costs | — | (7,095) | (7,095) |
| Cash Cost, Before By-product Credits (1) | 90,459 | 45,104 | 135,563 |
| Reclamation and other costs | 952 | 312 | 1,264 |
| Sustaining capital | 22,463 | 1,894 | 24,357 |
| General and administrative | 11,999 | — | 11,999 |
| AISC, Before By-product Credits (1) | 125,873 | 47,310 | 173,183 |
| By-product credits: |  |  |  |
| Zinc | (30,324) | — | (30,324) |
| Gold | (34,977) | — | (34,977) |
| Lead | (20,134) | — | (20,134) |
| Silver | — | (165) | (165) |
| Copper | (729) | — | (729) |
| Total By-product credits | (86,164) | (165) | (86,329) |
| Cash Cost, After By-product Credits | $4,295 | $44,939 | $49,234 |
| AISC, After By-product Credits | $39,709 | $47,145 | $86,854 |
| Divided by ounces produced | 3,335 | 20 |  |
| Cash Cost, Before By-product Credits, per Ounce | $27.13 | $2,203 |  |
| By-product credits per ounce | (25.84) | (8) |  |
| Cash Cost, After By-product Credits, per Ounce | $1.29 | $2,195 |  |
| AISC, Before By-product Credits, per Ounce | $37.75 | $2,311 |  |
| By-product credits per ounce | (25.84) | (8) |  |
| AISC, After By-product Credits, per Ounce | $11.91 | $2,303 |  |

37

| In thousands (except per ounce amounts) | Three Months Ended March 31, 2024 Greens Creek | Lucky Friday | Keno Hill (5) | Corporate (2) | Total Silver |
| --- | ---: | ---: | ---: | ---: | ---: |
| Total cost of sales | $69,857 | $27,519 | $10,847 | $— | $108,223 |
| Depreciation, depletion and amortization | (14,443) | (7,911) | (3,602) | — | (25,956) |
| Treatment costs | 9,724 | 3,223 | — | — | 12,947 |
| Change in product inventory | (2,196) | 611 | — | — | (1,585) |
| Reclamation and other costs | (655) | (102) | — | — | (757) |
| Exclusion of Lucky Friday cash costs (3) | — | (3,634) | — | — | (3,634) |
| Exclusion of Keno Hill cash costs (5) | — | — | (7,245) | — | (7,245) |
| Cash Cost, Before By-product Credits (1) | 62,287 | 19,706 | — | — | 81,993 |
| Reclamation and other costs | 785 | 222 | — | — | 1,007 |
| Sustaining capital | 8,416 | 12,051 | — | 66 | 20,533 |
| Exclusion of Lucky Friday sustaining costs | — | (5,396) | — | — | (5,396) |
| General and administrative | — | — | — | 11,216 | 11,216 |
| AISC, Before By-product Credits (1) | 71,488 | 26,583 | — | 11,282 | 109,353 |
| By-product credits: |  |  |  |  |  |
| Zinc | (20,206) | (4,785) | — | — | (24,991) |
| Gold | (26,551) | — | — | — | (26,551) |
| Lead | (6,980) | (11,720) | — | — | (18,700) |
| Exclusion of Lucky Friday by-product credits | — | 3,943 | — | — | 3,943 |
| Total By-product credits | (53,737) | (12,562) | — | — | (66,299) |
| Cash Cost, After By-product Credits | $8,550 | $7,144 | $— | $— | $15,694 |
| AISC, After By-product Credits | $17,751 | $14,021 | $— | $11,282 | $43,054 |
| Ounces produced | 2,479 | 1,061 |  |  | 3,540 |
| Exclusion of Lucky Friday ounces produced | — | (253) |  |  | (253) |
| Divided by ounces produced | 2,479 | 808 |  |  | 3,287 |
| Cash Cost, Before By-product Credits, per Ounce | $25.13 | $24.41 |  |  | $24.95 |
| By-product credits per ounce | (21.68) | (15.56) |  |  | (20.17) |
| Cash Cost, After By-product Credits, per Ounce | $3.45 | $8.85 |  |  | $4.78 |
| AISC, Before By-product Credits, per Ounce | $28.84 | $32.92 |  |  | $33.27 |
| By-product credits per ounce | (21.68) | (15.56) |  |  | (20.17) |
| AISC, After By-product Credits, per Ounce | $7.16 | $17.36 |  |  | $13.10 |

38

| In thousands (except per ounce amounts) | Three Months Ended March 31, 2024 Gold - Casa Berardi | Other (4) | Total Gold and Other |
| --- | ---: | ---: | ---: |
| Total cost of sales | $58,260 | $3,885 | $62,145 |
| Depreciation, depletion and amortization | (22,951) | — | (22,951) |
| Treatment costs | 24 | — | 24 |
| Change in product inventory | 1,739 | — | 1,739 |
| Reclamation and other costs | (209) | — | (209) |
| Exclusion of Other costs | — | (3,885) | (3,885) |
| Cash Cost, Before By-product Credits (1) | 36,863 | — | 36,863 |
| Reclamation and other costs | 209 | — | 209 |
| Sustaining capital | 4,861 | — | 4,861 |
| AISC, Before By-product Credits (1) | 41,933 | — | 41,933 |
| By-product credits: |  |  |  |
| Silver | (143) | — | (143) |
| Total By-product credits | (143) | — | (143) |
| Cash Cost, After By-product Credits | $36,720 | $— | $36,720 |
| AISC, After By-product Credits | $41,790 | $— | $41,790 |
| Divided by ounces produced | 22 | — | 22 |
| Cash Cost, Before By-product Credits, per Ounce | $1,675 | $— | $1,675 |
| By-product credits per ounce | (6) | — | (6) |
| Cash Cost, After By-product Credits, per Ounce | $1,669 | $— | $1,669 |
| AISC, Before By-product Credits, per Ounce | $1,905 | $— | $1,905 |
| By-product credits per ounce | (6) | — | (6) |
| AISC, After By-product Credits, per Ounce | $1,899 | $— | $1,899 |

39

| In thousands (except per ounce amounts) | Three Months Ended March 31, 2024 Total Silver | Total Gold and Other | Total |
| --- | ---: | ---: | ---: |
| Total cost of sales | $108,223 | $62,145 | $170,368 |
| Depreciation, depletion and amortization | (25,956) | (22,951) | (48,907) |
| Treatment costs | 12,947 | 24 | 12,971 |
| Change in product inventory | (1,585) | 1,739 | 154 |
| Reclamation and other costs | (757) | (209) | (966) |
| Exclusion of Other costs | — | (3,885) | (3,885) |
| Exclusion of Lucky Friday cash costs (3) | (3,634) | — | (3,634) |
| Exclusion of Keno Hill cash costs (5) | (7,245) | — | (7,245) |
| Cash Cost, Before By-product Credits (1) | 81,993 | 36,863 | 118,856 |
| Reclamation and other costs | 1,007 | 209 | 1,216 |
| Sustaining capital | 20,533 | 4,861 | 25,394 |
| Exclusion of Lucky Friday sustaining costs (3) | (5,396) | — | (5,396) |
| General and administrative | 11,216 | — | 11,216 |
| AISC, Before By-product Credits (1) | 109,353 | 41,933 | 151,286 |
| By-product credits: |  |  |  |
| Zinc | (24,991) | — | (24,991) |
| Gold | (26,551) | — | (26,551) |
| Lead | (18,700) | — | (18,700) |
| Silver | — | (143) | (143) |
| Exclusion of Lucky Friday by-product credits (3) | 3,943 | — | 3,943 |
| Total By-product credits | (66,299) | (143) | (66,442) |
| Cash Cost, After By-product Credits | $15,694 | $36,720 | $52,414 |
| AISC, After By-product Credits | $43,054 | $41,790 | $84,844 |
| Ounces produced | 3,540 | 22 |  |
| Exclusion of Lucky Friday ounces produced (3) | (253) | — |  |
| Divided by ounces produced | 3,287 | 22 |  |
| Cash Cost, Before By-product Credits, per Ounce | $24.95 | $1,675 |  |
| By-product credits per ounce | (20.17) | (6) |  |
| Cash Cost, After By-product Credits, per Ounce | $4.78 | $1,669 |  |
| AISC, Before By-product Credits, per Ounce | $33.27 | $1,905 |  |
| By-product credits per ounce | (20.17) | (6) |  |
| AISC, After By-product Credits, per Ounce | $13.10 | $1,899 |  |

(1) Includes all direct and indirect operating costs related to the physical activities of producing metals, including mining, processing and other plant costs, third-party refining and marketing expense, on-site general and administrative costs and royalties, before by-product revenues earned from all metals other than the primary metal produced at each operation. AISC, Before By-product Credits also includes reclamation and sustaining capital costs.

(2) AISC, Before By-product Credits for our consolidated silver properties includes corporate costs for general and administrative expense and sustaining capital.

(3) Lucky Friday operations were suspended in August 2023 following the underground fire in the #2 shaft secondary egress and resumed on January 9, 2024. The portion of cash costs, sustaining costs, by-product credits, and silver production incurred during the suspension period are excluded from the calculation of total cost of sales, Cash Cost, Before By-product Credits, Cash Cost, After By-product Credits, AISC, Before By-product Credits, and AISC, After By-product Credits.

(4) Other includes $7.1 million and $3.9 million of total cost of sales for the three months ended March 31, 2025, and 2024, respectively related to our environmental remediation services business.

(5) Keno Hill is in the ramp-up phase of production and is excluded from the calculation of Cash Cost, Before By-product Credits, Cash Cost, After By-product Credits, AISC, Before By-product Credits, and AISC, After By-product Credits.

### Financial Liquidity and Capital Resources

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 net 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 March 31, 2025, we had $23.7 million in cash and cash equivalents, of which $3.1 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 March 31, 2025, we had $43.0 million drawn on our $225 million credit facility, and additional $6.6 million used for letters of credit, leaving $175 million for additional 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 Statements* in 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 $2.5 million and $3.9 million during the three months ended March 31, 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 March 31, 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, there are 36,156,316 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 three months ended March 31, 2025, we did not sell any shares under the agreement.

As a result of our current cash balances, the performance of our current and expected 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 and IQ Notes; principal and 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.

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 $54.1 million already incurred as of March 31, 2025. We also estimate exploration and pre-development expenditures will total approximately $28.0 million in 2025, including $4.5 million already incurred as of March 31, 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):

|  | March 31, 2025 | December 31, 2024 |
| --- | ---: | ---: |
| Cash and cash equivalents held in U.S. dollars | $20.6 | $24.5 |
| Cash and cash equivalents held in foreign currency | 3.1 | 2.4 |
| Total cash and cash equivalents | 23.7 | 26.9 |
| Marketable equity securities - non-current | 36.8 | 33.2 |
| Total cash, cash equivalents and investments | $60.5 | $60.1 |

Cash and cash equivalents decreased by $3.2 million in the first three 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 $3.6 million.

|  | Three Months Ended March 31, 2025 | March 31, 2024 |
| --- | ---: | ---: |
| **Cash provided by (used in) operating activities (in millions)** | **$35.7** | **$17.1** |

Cash provided by operating activities for the three months ended March 31, 2025, of $35.7 million represents a $18.7 million increase compared to the $17.1 million of cash used in operations during the same period of 2024. $29.8 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. The increase was partly offset by negative net working capital changes resulting from higher accounts receivable balances reflecting the timing of sales at all sites and higher vendor payments at Greens Creek, Casa Berardi and Keno Hill, partly offset by a lower inventory build.

|  | Three Months Ended March 31, 2025 | March 31, 2024 |
| --- | ---: | ---: |
| **Cash used in investing activities (in millions)** | **$(54.0)** | **$(47.5)** |

During the three months ended March 31, 2025, we invested $54.0 million in capital expenditures, an increase of $6.5 million compared to the same period in 2024.

|  | Three Months Ended March 31, 2025 | March 31, 2024 |
| --- | ---: | ---: |
| **Cash provided by financing activities (in millions)** | **$15.2** | **$4.9** |

During the three months ended March 31, 2025, we had net borrowings of $20.0 million on our revolving credit facility resulting in $43.0 million outstanding at an interest rate of 6.7% on March 31, 2025. In addition, during the three months ended March 31, 2025 and 2024:

- we paid cash dividends on our common and preferred stock totaling $2.5 million and $3.9 million, respectively;
- we made repayments on our finance leases of $2.3 million and $3.0 million, respectively; and
- we issued stock under our ATM program described above for net proceeds of $1.1 million, in 2024.

### Contractual Obligations, Contingent Liabilities and Commitments

The table below presents our fixed, non-cancelable contractual obligations and commitments primarily related to our Senior Notes, IQ Notes, credit facility, outstanding purchase orders (including certain capital expenditures) and lease arrangements as of March 31, 2025 (in thousands):

|  | Payments Due By Period Less than 1 year | 1-3 years | 4-5 years | More than 5 years | Total |
| --- | ---: | ---: | ---: | ---: | ---: |
| Purchase obligations (1) | $39,935 | $— | $— | $— | $39,935 |
| Credit facility(2) | 1,600 | 2,631 | 43,400 | — | 47,631 |
| Finance lease commitments (3) | 9,198 | 9,894 | 2,200 | 275 | 21,567 |
| Operating lease commitments (4) | 3,016 | 2,460 | 2,281 | 4,973 | 12,730 |
| Senior Notes (5) | 34,438 | 539,724 | — | — | 574,162 |
| IQ Notes (6) | 34,649 | — | — | — | 34,649 |
| Total contractual cash obligations | $122,836 | $554,709 | $47,881 | $5,248 | $730,674 |

(1) Consists of open purchase orders and commitments of approximately $11.7 million, $7.6 million, $11.1 million, $7.6 million and $1.9 million for various capital and non-capital items at Greens Creek, Lucky Friday, Keno Hill, Casa Berardi and Other Operations, respectively.

(2) The Credit Agreement provides for a $225 million revolving credit facility. We had net draws of $43.0 million and $6.6 million in letters of credit outstanding as of March 31, 2025. The amounts in the table above assume no additional amounts will be drawn in future periods, and include only the standby fee on the current undrawn balance and accrued interest. For more information on our credit facility, see *Note 7* of *Notes to Condensed Consolidated Financial Statements (Unaudited).*

(3) Includes scheduled finance lease payments of $2.3 million, $4.2 million, $10.7 million, and $4.4 million for equipment at Greens Creek, Lucky Friday, Casa Berardi, and Keno Hill, respectively.

(4) We enter into operating leases in the normal course of business. Substantially all lease agreements have fixed payment terms based on the passage of time. Some lease agreements provide us with the option to renew the lease or purchase the leased property. Our future operating lease obligations would change if we exercised these renewal options and if we entered into additional operating lease arrangements.

(5) On February 19, 2020, we completed an offering of $475 million in aggregate principal amount of our Senior Notes due February 15, 2028. The Senior Notes bear interest at a rate of 7.25% per year, with interest payable on February 15 and August 15 of each year. See *Note 7* of *Notes to Condensed Consolidated Financial Statements (Unaudited)* for more information.

(6) On July 9, 2020, we entered into a note purchase agreement pursuant to which we issued our IQ Notes for CAD $50 million (approximately USD $36.8 million at the time of the transaction) in aggregate principal amount. The IQ Notes bear interest on amounts outstanding at a rate of 6.515% per year, payable on January 9 and July 9 of each year. See *Note 7* of *Notes to Condensed Consolidated Financial Statements (Unaudited)* for more information.

We record liabilities for costs associated with mine closure, reclamation of land and other environmental matters. At March 31, 2025, our liabilities for these matters totaled $126.1 million. Future expenditures related to closure, reclamation and environmental expenditures at our sites are difficult to estimate, although we anticipate we will incur expenditures relating to these obligations over the next 30 years. For additional information relating to our environmental obligations, see *Note 11* of *Notes to Condensed Consolidated Financial Statements (Unaudited).*

### Critical Accounting Estimates

There have been no significant changes to the critical accounting estimates disclosed in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our 2024 Form 10-K.

### Off-Balance Sheet Arrangements

At March 31, 2025, we had no existing off-balance sheet arrangements, as defined under SEC regulations, that have or are reasonably likely to have a current or future effect on our financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to investors.

### Guarantor Subsidiaries

Presented below are Hecla’s unaudited interim condensed consolidating financial statements as required by Rule 3-10 of Regulation S-X of the Securities Exchange Act of 1934, as amended, resulting from the guarantees by certain of Hecla's subsidiaries of the Senior Notes and IQ Notes (see *Note 7* of *Notes to Condensed Consolidated Financial Statements (Unaudited)* for more information). The Guarantors consist of the following of Hecla's 100%-owned subsidiaries: Hecla Limited; Silver Hunter Mining Company; Rio Grande Silver, Inc.; Hecla MC Subsidiary, LLC; Hecla Silver Valley, Inc.; Burke Trading, Inc.; Hecla Montana, Inc.; Revett Silver Company; RC Resources, Inc.; Troy Mine Inc.; Revett Exploration, Inc.; Revett Holdings, Inc.; Mines Management, Inc.; Newhi, Inc.; Montanore Minerals Corp.; Hecla Alaska LLC; Hecla Greens Creek Mining Company; Hecla Admiralty Company; Hecla Juneau Mining Company; Klondex Holdings Inc.; Klondex Gold & Silver Mining Co.; Klondex Midas Holdings Limited; Klondex Aurora Mine Inc.; Klondex Hollister Mine Inc.; Hecla Quebec, Inc.; and Alexco Resource Corp. We completed the offering of the Senior Notes on February 19, 2020 under our shelf registration statement previously filed with the SEC. We issued the IQ Notes in four equal tranches between July and October 2020.

The unaudited interim condensed consolidating financial statements below have been prepared from our financial information on the same basis of accounting as the unaudited interim condensed consolidated financial statements set forth elsewhere in this report. Investments in the subsidiaries are accounted for under the equity method. Accordingly, the entries necessary to consolidate Hecla, the Guarantors, and our non-guarantor subsidiaries are reflected in the intercompany eliminations column. In the course of preparing consolidated financial statements, we eliminate the effects of various transactions conducted between Hecla and its subsidiaries and among the subsidiaries. While valid at an individual subsidiary level, such activities are eliminated in consolidation because, when taken as a whole, they do not represent business activity with third-party customers, vendors, and other parties. Examples of such eliminations include the following:

- ***Investments in subsidiaries***. The acquisition of a company results in an investment in debt or equity capital on the records of the parent company and a contribution to debt or equity capital on the records of the subsidiary. Such investments and capital contributions are eliminated in consolidation.
- ***Capital contributions***. Certain of Hecla's subsidiaries do not generate cash flow, either at all or that is sufficient to meet their capital needs, and their cash requirements are routinely met with inter-company advances from their parent companies. Generally on an annual basis, when not otherwise intended as debt, the Boards of Directors of such parent companies declare contributions of capital to their subsidiary companies, which increase the parents' investment and the subsidiaries' additional paid-in capital. Occasionally, parent companies may also subscribe for additional common shares of their subsidiaries. In consolidation, investments in subsidiaries and related additional paid-in capital are eliminated.
- ***Debt.*** At times, inter-company debt agreements have been established between certain of Hecla's subsidiaries and their parents. The related debt liability and receivable balances, accrued interest expense (if any) and income activity (if any), and payments of principal and accrued interest amounts (if any) by the subsidiary companies to their parents are eliminated in consolidation.
- ***Dividends.*** Certain of Hecla's subsidiaries which generate cash flow routinely provide cash to their parent companies through inter-company transfers. On at least an annual basis, the Boards of Directors of such subsidiary companies declare dividends to their parent companies, which reduces the subsidiaries' retained earnings and increases the parents' dividend income. In consolidation, such activity is eliminated.
- ***Deferred taxes***. Our ability to realize deferred tax assets and liabilities is considered for two consolidated tax groups of subsidiaries within the United States: The Nevada U.S. Group and the Hecla U.S. Group. Within each tax group, all subsidiaries' estimated future taxable income contributes to the ability of their tax group to realize all such assets and liabilities. However, when Hecla's subsidiaries are viewed independently, we use the separate return method to assess the realizability of each subsidiary's deferred tax assets and whether a valuation allowance is required against such deferred tax assets. In some instances, a parent company or subsidiary may possess deferred tax assets whose realization depends on the future taxable incomes of other subsidiaries on a consolidated-return basis, but would not be considered realizable if such parent or subsidiary filed on a separate stand-alone basis. In such a situation, a valuation allowance is assessed on that subsidiary's deferred tax assets, with the resulting adjustment reported in the eliminations column of the guarantor and parent's financial statements, as is the case in the unaudited interim financial statements set forth below. The separate return method can result in significant eliminations of deferred tax assets and liabilities and related income tax provisions and benefits. Non-current deferred tax asset balances are included in other non-current assets on the consolidating balance sheets and make up a large portion of that item, particularly for the guarantor balances.

Separate financial statements of the Guarantors are not presented because the guarantees by the Guarantors are joint and several and full and unconditional, except for certain customary release provisions, including: (1) the sale or disposal of all or substantially all of the assets of the Guarantor; (2) the sale or other disposition of the capital stock of the Guarantor; (3) the Guarantor is designated as an unrestricted entity in accordance with the applicable provisions of the indenture; (4) Hecla ceases to be a borrower as defined in the indenture; and (5) upon legal or covenant defeasance or satisfaction and discharge of the indenture.

### Unaudited Interim Condensed Consolidating Balance Sheets

*(in thousands)*

| Assets | As of March 31, 2025 Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated |
| --- | ---: | ---: | ---: | ---: | ---: |
| Cash and cash equivalents | $10,286 | $12,938 | $444 | $— | $23,668 |
| Other current assets | 40,396 | 152,295 | 29,954 | — | 222,645 |
| Properties, plants, equipment and mineral interests, net | 604 | 2,692,190 | 8,102 | — | 2,700,896 |
| Intercompany receivable (payable) | (509,569) | (768,655) | 802,605 | 475,619 | — |
| Investments in subsidiaries | 2,339,700 | (52) | — | (2,339,648) | — |
| Other non-current assets | 516,039 | 22,159 | 31,088 | (492,938) | 76,348 |
| **Total assets** | $2,397,456 | $2,110,875 | $872,193 | $(2,356,967) | $3,023,557 |
| **Liabilities and Stockholders' Equity** |  |  |  |  |  |
| Current liabilities | $17,047 | $143,941 | $29,000 | $(17,265) | $172,723 |
| Long-term debt | 306,442 | 11,746 | 208,949 | — | 527,137 |
| Non-current portion of accrued reclamation | — | 114,918 | 106 | — | 115,024 |
| Non-current deferred tax liability | — | 124,382 | — | — | 124,382 |
| Other non-current liabilities | — | 10,324 | — | — | 10,324 |
| Stockholders' equity | 2,073,967 | 1,705,564 | 634,138 | (2,339,702) | 2,073,967 |
| **Total liabilities and stockholders' equity** | $2,397,456 | $2,110,875 | $872,193 | $(2,356,967) | $3,023,557 |

*(in thousands)*

| Assets | As of December 31, 2024 Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated |
| --- | ---: | ---: | ---: | ---: | ---: |
| Cash and cash equivalents | $14,755 | $11,624 | $489 | $— | $26,868 |
| Other current assets | 37,143 | 125,698 | 24,443 | — | $187,284 |
| Properties, plants, equipment and mineral interests - net | 603 | 2,685,407 | 8,109 | — | $2,694,119 |
| Intercompany receivable (payable) | (437,765) | (650,923) | 594,307 | 494,381 | $— |
| Investments in subsidiaries | 2,451,783 | (52) | — | (2,451,731) | $— |
| Other non-current assets | 502,802 | 21,686 | 28,775 | (480,474) | $72,789 |
| **Total assets** | $2,569,321 | $2,193,440 | $656,123 | $(2,437,824) | $2,981,060 |
| **Liabilities and Stockholders' Equity** |  |  |  |  |  |
| Current liabilities | $41,612 | $156,652 | $24,099 | $(24,525) | $197,838 |
| Long-term debt | 464,075 | 6,406 | (37) | 38,483 | $508,927 |
| Non-current portion of accrued reclamation | — | 109,650 | 1,512 | — | $111,162 |
| Non-current deferred tax liability | 24,122 | 86,141 | 3 | — | $110,266 |
| Other non-current liabilities | — | 13,353 | — | — | $13,353 |
| Stockholders' equity | 2,039,512 | 1,821,238 | 630,546 | (2,451,782) | $2,039,514 |
| **Total liabilities and stockholders' equity** | $2,569,321 | $2,193,440 | $656,123 | $(2,437,824) | $2,981,060 |

45

### Unaudited Interim Condensed Consolidating Statements of Operations

*(in thousands)*

|  | Three Months Ended March 31, 2025 Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated |
| --- | ---: | ---: | ---: | ---: | ---: |
| Revenues | $(5,070) | $266,409 | $— | $— | $261,339 |
| Cost of sales | (1,825) | (147,125) | — | — | (148,950) |
| Depreciation, depletion, amortization | — | (38,385) | — | — | (38,385) |
| General and administrative | (4,180) | (7,341) | (478) | — | (11,999) |
| Exploration and pre-development | (88) | (4,006) | (407) | — | (4,501) |
| Equity in earnings of subsidiaries | 24,478 | — | — | (24,478) | — |
| Other income (expense) | 27,004 | (16,978) | (10,288) | (12,225) | (12,487) |
| Income before income and mining taxes | 40,319 | 52,574 | (11,173) | (36,702) | 45,017 |
| Benefit (provision) from income taxes | (11,449) | (16,135) | (789) | 12,228 | (16,145) |
| Net income | 28,870 | 36,439 | (11,962) | (24,474) | 28,872 |
| Preferred stock dividends | (138) | — | — | — | (138) |
| Income applicable to common stockholders | $28,732 | $36,439 | $(11,962) | $(24,474) | $28,734 |
| Net income | 28,870 | 36,439 | (11,962) | (24,474) | 28,872 |
| Changes in comprehensive income | 2,434 | — | — | — | 2,434 |
| Comprehensive income | $31,304 | $36,439 | $(11,962) | $(24,474) | $31,306 |

46

## Market risk

As filed, 4,289 characters.

The following discussion about our exposure to market risks and risk management activities includes forward-looking statements that involve risks and uncertainties, as well as summarizes the financial instruments held by us at March 31, 2025, which are sensitive to changes in commodity prices and foreign exchange rates and are not held for trading purposes. Actual results could differ materially from those projected in the forward-looking statements. In the normal course of business, we also face risks that are either non-financial or non-quantifiable (See *Part I, Item 1A. – Risk Factors* of our 2024 Form 10-K).

#### Metals Prices

Changes in the market prices of silver, gold, lead, zinc and copper can significantly affect our profitability and cash flow. Metals prices can and often do fluctuate widely and are affected by numerous factors beyond our control (see *Item 1A – Risk Factors – A substantial or extended decline in metals prices would have a material adverse effect on us* in our 2024 Form 10-K). We utilize collars and financially-settled forward and put option contracts to manage our exposure to changes in prices for silver, gold, zinc and lead.

#### Provisional Sales

Sales of all metals products sold directly to customers, including by-product metals, are recorded as revenues when all performance obligations have been completed and the transaction price can be determined or reasonably estimated. For concentrate sales, revenues are generally recorded at the time of shipment at forward prices for the estimated month of settlement. Due to the time elapsed between shipment to the customer and the final settlement with the customer, we must estimate the prices at which sales of our metals will be settled. Previously recorded sales are adjusted to estimated settlement metals prices until final settlement by the customer. Changes in metals prices between shipment and final settlement will result in changes to revenues previously recorded upon shipment. Metals prices can and often do fluctuate widely and are affected by numerous factors beyond our control (see *Item 1A – Risk Factors – A substantial or extended decline in metals prices would have a material adverse effect on us* in our 2024 Form 10-K). At March 31, 2025, metals contained in concentrate sales and exposed to future price changes totaled 1.8 million ounces of silver, 5,000 ounces of gold, 7,025 tons of zinc and 6,300 tons of lead. If the price for each metal were to change by 10%, the change in the total value of the concentrates sold would be approximately $11.0 million. As discussed in *Note 8* of *Notes to Condensed Consolidated Financial Statements (Unaudited)*, we utilize a program designed and intended to mitigate the risk of negative price adjustments with limited mark-to-market financially-settled forward contracts for our silver, gold, zinc, lead and copper sales.

#### Commodity-Price Risk Management

See *Note 8* of *Notes to Condensed Consolidated Financial Statements (Unaudited)* for a description of our commodity-price risk management program.

#### Foreign Currency Risk Management

We operate and have mining interests in Canada, which exposes us to risks associated with fluctuations in the exchange rates between the USD and the CAD. We determined the functional currency for our Canadian operations is the USD. As such, foreign exchange gains and losses associated with the re-measurement of monetary assets and liabilities from CAD to USD are recorded to earnings each period. For the three months ended March 31, 2025, we recognized a net foreign exchange loss of $0.4 million, compared to a net foreign exchange gain of $4 million for the three months ended March 31, 2024. Foreign currency exchange rates are influenced by a number of factors beyond our control. A 10% change in the exchange rate between the USD and CAD from the rate at March 31, 2025 would have resulted in a change of approximately $5.9 million in our net foreign exchange gain or loss. We do not hedge the remeasurement of monetary assets and liabilities. We do hedge some of our operating and capital costs denominated in CAD.

See *Note 9* of *Notes to Condensed Consolidated Financial Statements (Unaudited)* for a description of our foreign currency risk management program.

## Controls and procedures

As filed, 1,571 characters.

An evaluation was performed under the supervision and with the participation of our management, including the Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”), of the effectiveness of the design and operation of our disclosure controls and procedures as required by Securities Exchange Act Rules 13a-15(e) and 15d-15(e) as of the end of the period covered by this report. Based on that evaluation, our CEO and CFO concluded that our disclosure controls and procedures, including controls and procedures designed to ensure that information required to be disclosed by us is accumulated and communicated to our management (including our CEO and CFO), were effective as of March 31, 2025, in assuring them in a timely manner that material information required to be disclosed in this report has been properly recorded, processed, summarized and reported. There were no changes in our internal control over financial reporting during the three months ended March 31, 2025 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Internal control systems, no matter how well designed and operated, have inherent limitations. Therefore, even a system which is determined to be effective cannot provide absolute assurance that all control issues have been detected or prevented. Our systems of internal controls are designed to provide reasonable assurance with respect to financial statement preparation and presentation.

Part II - Other Information

Hecla Mining Company and Subsidiaries

## Risk factors

As filed, 3,074 characters.

*Item 1A. – Risk Factors* of our 2024 Form 10-K set forth information relating to important risks and uncertainties that could materially adversely affect our business, financial condition or operating results.

***Tariffs, other import/export regulations, or trade disputes between the United States and other jurisdictions may have a negative effect on global economic conditions and on our business, financial results and financial condition.***

Recently, the Trump Administration announced a 10% baseline tariff on multiple countries, including China, a country into which we sell our products. The Trump Administration then adopted additional, country-specific reciprocal tariffs. In response, China adopted retaliatory tariffs on goods imported from the U.S. On April 10, 2025, the Trump Administration suspended the country-specific reciprocal tariffs for a period of 90-days for all countries, except China, where the current applicable tariffs are 125%. Currently, we sell certain of our products into China (as well as Canada), and in the future may continue to do so. While the impacts of tariffs on us to date have been immaterial, the recently announced reciprocal Chinese tariffs might affect our products, and, in the absence of applicable exemptions (which were in place between 2018 and 2024), could have a material adverse impact on our business, financial condition, and results of operations. Further, any materials that we import to the U.S. from countries subject to tariffs could become more expensive if subject to a tariff, which could also have a material adverse impact on our business, financial condition, and results of operations.

On April 9, 2025, the Trump Administration issued Executive Order 14269, “Restoring America’s Maritime Dominance.” Among other things, this Order proposes the adoption of tariffs on maritime transport operators using Chinese- built vessels. We have significant sales of products that are shipped to Asia via oceangoing vessels that we source from maritime transport operators, and as a commodity producer, we have limited ability to pass on cost increases to our customers. If any of these tariffs were to be applied to vessels carrying our products, we could experience an increase in shipping charges, which could have a material adverse impact on our financial condition, and results of operations. As of the date of this report, we are not currently subject to any of these fees and believe there are exemptions potentially available when the tariffs go into effect.

In addition to possible impacts directly on our business, tariffs or other trade obstacles could have a material adverse effect on global economic conditions and the stability of global financial markets, and they may significantly reduce global trade, in particular, trade between China and the U.S. Any of these factors could depress economic activity, impact U.S. dollar/foreign currency exchange rates, restrict our access to customers and have a material adverse effect on our business, financial condition and results of operations.

Filed May 1, 2025.
Source: SEC EDGAR, the filing index for accession 0000950170-25-062012. Last ingested by Listed: Oct 24, 2026, 14:56 ET. No prices; not investment advice.