Hecla Reports First Quarter 2025 Results

Record revenues and Adjusted EBITDA, Keno Hill delivers first profitable quarter, and Lucky Friday sets new milling record

Hecla Mining Company (NYSE:HL) ("Hecla", "we", "our" or the "Company") today announced first quarter 2025 financial and operating results.

FIRST QUARTER HIGHLIGHTS

Financial Achievements:

• Generated record sales of $261.3 million, an increase of 5% over the prior quarter.
• Reported net income applicable to common stockholders of $28.7 million, or $0.05 per share.
• Achieved record Adjusted EBITDA of $90.8 million during the quarter, $357.1 million during the last 12 months resulting in an improved net leverage ratio* of 1.5x compared to 1.6x in the prior quarter.⁵
• Consolidated silver total cost of sales of $129.6 million; cash cost and all-in sustaining cost ("AISC") per silver ounce (each after by-product credits) of $1.29 and $11.91, respectively.^3,4
• Keno Hill posted its first profitable quarter under Hecla ownership, delivering $1.0 million of gross profit, helped by the elevated silver price. The mine continues to advance work to achieve commercial production status.
• Gold total cost of sales of $50.7 million; cash cost and all-in sustaining cost ("AISC") per gold ounce of $2,195 and $2,303, respectively.^3,4

Operational Performance:

• Produced 4.1 million ounces of silver and 34,232 ounces of gold.
• Established a new quarterly milling record at Lucky Friday of 108,745 tons, beating the prior record set in the fourth quarter 2024.
• Increased Keno Hill production to 772,430 ounces of silver, growing 23% over the fourth quarter of 2024.

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 in Nevada and Greens Creek, with drilling set to begin in May.

*Net leverage ratio is calculated as current debt, long-term debt and finance leases less cash divided by trailing twelve-month adjusted EBITDA.

STRATEGIC PRIORITIES FOR 2025

• Strengthen the balance sheet in 2025, targeting highest risk-adjusted return projects and increasing free cash flow generation.
• Advance Keno Hill's permitting and invest in critical infrastructure to attain sustained profitability.
• Optimize operating portfolio through continued strategic review of Casa Berardi to maximize value.
• Identify opportunities in our extensive exploration portfolio to create shareholder value.
• Implement standardized enterprise systems and advanced analytics to improve mine planning and cost management, driving sustained profitability and efficient capital allocation.

"This quarter demonstrates the strength and growth potential of our business, with record sales of $261.3 million representing a 5% increase over the prior quarter," said Rob Krcmarov, President & Chief Executive Officer. "With record Adjusted EBITDA of $90.8 million this quarter and $357.1 million over the past year, we have improved our net leverage ratio to 1.5x, reinforcing our solid financial foundation."

Krcmarov continued, "Our operational excellence continues to shine through, with Lucky Friday setting a new quarterly milling record and Keno Hill increasing silver production by 23% over the prior quarter. Looking ahead, we're focusing on four key strategic pillars: achieving operational excellence through standardized systems and continuous improvement; optimizing our portfolio through strategic reviews and focus capital allocation on high-return projects or those that enhance environmental or safety performance or reduce risk; intensifying our focus on financial discipline with a rigorous capital allocation framework; and leveraging our position as North America's largest silver producer to meet growing demand from green technology markets."

FINANCIAL AND OPERATIONAL OVERVIEW

In the following table and throughout this release, "total cost of sales" is comprised of cost of sales and other direct production costs and depreciation, depletion and amortization; "prior quarter" refers to the fourth quarter of 2024.

Sales increased to $261.3 million, a new quarterly record, or 5% over the prior quarter, reflecting higher realized prices for precious metals, which were partially offset by lower silver, gold and zinc sales volumes. Lead sales volumes increased primarily due to a strong operational quarter at Lucky Friday.

Gross profit was $74.0 million, an increase of 8% over the prior quarter. The increase is attributable to (i) Greens Creek gross profit increasing by $4.4 million due to higher realized prices for precious metals, partially offset by lower sales volumes of all metals except zinc, (ii) Lucky Friday gross profit increased by $1.6 million due to higher realized silver prices and volumes partially offset by higher production costs, and (iii) Keno Hill gross profit of $1 million (first profitable quarter under Hecla's ownership), reflecting the benefit of higher realized silver prices on 2% lower sales volumes over the prior quarter. At Casa Berardi, the gross profit decreased by $2.1 million as the benefit of higher realized gold prices was offset by lower gold sales volumes and higher production costs.

Net income applicable to common stockholders was $28.7 million compared to $11.8 million in the prior quarter. The improvement was primarily related to:

• Positive fair value adjustments, net of $3.6 million, due to an increase in the fair value of our marketable securities portfolio.
• Ramp-up and suspension costs decreased by $6.3 million, reflecting the impact of Keno Hill generating gross profit during the quarter and not contributing any costs to ramp-up and suspension costs in the first quarter.

Partly offset by:

• An increase in income and mining tax provision of $8.1 million, reflecting higher taxable income realized by our US tax group while unable to recognize losses in Canada.
• An increase in general and administrative costs of $3.0 million reflecting a combination of headcount additions and higher incentive compensation accruals.
• A foreign exchange loss of $0.4 million versus a gain of $4.1 million, reflecting the impact of the U.S. dollar depreciation compared to the Canadian dollar.

Consolidated silver total cost of sales was $129.6 million, an increase of $6.2 million or 5% from the prior quarter, primarily due to higher production costs at Lucky Friday of $3.9 million reflecting higher mining, contractor, maintenance and profit sharing costs, and consumables usage, and $2 million at Greens Creek reflecting higher labor and fuel purchase costs.

Cash costs and AISC per silver ounce, each after by-product credits, were $1.29 and $11.91, respectively, higher versus the prior quarter, primarily due to higher production costs, partially offset by lower treatment charges, higher by-product credits (due to higher realized gold prices) and higher silver production. AISC was higher due to additional corporate general and administrative expenses, partially offset by lower sustaining capital.^3,4

Gold total cost of sales for Casa Berardi decreased by $1 million due to lower sales volumes.

Cash costs and AISC per gold ounce, each after by-product credits, were $2,195 and $2,303 respectively, an increase over the prior quarter as lower production costs and sustaining capital spend was partially offset by lower gold production.^3,4 Casa Berardi costs are anticipated to improve late in the third quarter of the year as the strip ratio of the 160 pit is expected to decline.

Adjusted EBITDA was $90.8 million, a 5% increase over the prior quarter. The ratio of net debt to adjusted EBITDA (net leverage ratio) improved to 1.5x from 1.6x in the prior quarter due to strong EBITDA generation during the last 12 months, which offset the $21.1 million increase in net debt.¹ Cash and cash equivalents at March 31, 2025 were $23.7 million and included $43 million drawn on the revolving credit facility.

Cash provided by operating activities was $35.7 million, a decrease of $31.7 million, primarily attributable to unfavorable working capital changes of $48.2 million, including an increase of accounts receivable reflecting the higher price environment and timing of sales, inventory builds at Casa Berardi and Keno Hill, the semi-annual interest payment on our notes and the timing of accounts payable vendor payments and annual incentive compensation payments.

Capital investment was $54.1 million, compared to $60.8 million in the prior quarter, primarily due to lower capital investment at Greens Creek of $5.0 million and Keno Hill of $5.1 million reflecting the fact that the first quarter is historically a low capital investment quarter, due to the winter weather.

Free cash flow was negative $18.4 million, compared to positive $6.7 million in the prior quarter, with the decrease primarily due to lower cash flow from operations, reflecting negative working capital adjustments ($48.2 million), some of which are expected to reverse in the second quarter.²

Hedging Update: Forward Sales Contracts for Base Metals and Foreign Currency

The Company uses financially settled forward sales contracts to manage exposures to zinc and lead price changes in forecasted concentrate shipments. On March 31, 2025, the Company had contracts covering approximately 20% and 29% of the forecasted payable zinc and lead production for 2025 - 2026 at an average price of $1.39 and $1.02 per pound, respectively.

The Company also manages Canadian dollar ("CAD") exposure through forward contracts. At March 31, 2025, the Company had hedged approximately 37% of forecasted Casa Berardi and Keno Hill CAD denominated direct production costs through 2026 at an average CAD/USD rate of 1.35. The Company has also hedged approximately 24% of Casa Berardi and Keno Hill CAD denominated total capital expenditures through 2026 at 1.39.

OPERATIONS OVERVIEW

Operational Review

Greens Creek produced 2.0 million ounces of silver and 13,759 ounces of gold. Silver production increased 5% over the prior quarter due to a 10% increase in silver grade milled, partially offset by lower tons milled. Zinc and lead production declined 3% and 6% respectively, primarily due to lower mill throughput.

The silver grade milled averaged higher month-over-month throughout the quarter, averaging nearly 13 ounce per ton ("opt") in March. Backfill and development activities also continued to improve throughout the quarter.

First Quarter Financial Review

Sales were $118.1 million, an increase of 5% over the prior quarter, benefiting from higher realized precious metals prices which were partially offset by lower lead and zinc prices, as well as lower concentrate sales due to timing of sales.

Total cost of sales was $69.6 million, an increase of 3% over the prior quarter, primarily due to higher labor and fuel volumes for elevated power generation requirements. Cash cost per silver ounce, after by-product credits, was negative $4.08, and increased over the prior quarter due to higher labor and fuel costs. AISC per silver ounce, after by-product credits, was negative $0.03 and decreased over the prior quarter due to lower capital investment.^3,4

Cash flow from operations was $43.9 million, a decrease of 27% over the prior quarter due to unfavorable working capital changes tied to timing of sales and higher vendor payments. Capital investment was $10.8 million, a decrease of 32% over the prior quarter.

Free cash flow was $33.4 million, a decrease of 27% from the prior quarter as lower capital investment did not fully offset the decrease in cash flow from operations.

Outlook Revised

Production guidance for 2025 at Greens Creek is maintained at 8.1-8.8 million ounces of silver, 44.0-48.0 thousand ounces of gold, or 18.0-19.5 million silver equivalent ounces when factoring in all metals (silver, gold, lead, zinc and copper). Greens Creek's cost outlook has been lowered, maintaining cost of sales guidance at $289 million (includes depreciation) but lowering cash cost guidance to $0.25-$0.75 from the prior $2.00-$2.50 (after by-product credits), per silver ounce, and AISC to $6.50-$7.25 from $8.75-$9.50 (after by-product credits), per silver ounce.^3,4 Capital investment guidance is unchanged at $48-$51 million in sustaining capital and $10-$12 million in growth capital. Capital investment at Greens Creek is expected to increase in the second and third quarters (relative to the first quarter) due to the seasonal construction period. The Company expects the Greens Creek operation to have 3-6 days of planned maintenance in the second quarter, which is the historical norm for quarterly maintenance downtime at Greens Creek. In approximately mid-June, the mine expects to shift to self-generated power while Alaska Electric Light and Power, the utility company supplying power to Greens Creek, goes offline for a planned 8-week maintenance shutdown, which will add costs to the operation of Greens Creek during this period as self-generated power is more costly than purchased power from the utility.

Please refer to guidance section of the release for production, cost, and capital guidance for 2025.

Operational Review

Lucky Friday set a new quarterly milling record of 108,745 tons, beating the record set in the prior quarter. Silver production was 1.3 million ounces, flat over the prior quarter. Lead and zinc production was 8,480 tons and 3,681 tons, respectively, declining 2% and 3% respectively over the prior quarter, both impacted by modestly lower milled grades.

First Quarter Financial Review

Sales were $63.2 million, an increase of 10% over the prior quarter due to a higher realized silver price and a higher volume of zinc concentrate sales, partially offset by lower realized lead and zinc prices.

Total cost of sales was $44.0 million, up 10% over the prior quarter, driven by higher depreciation expense (+14%), labor costs (+6%) partially due to a rise in profit sharing payments to miners as a result of better performance, consumables (+9%) and cost for drill contractors. Cash costs and AISC per silver ounce, each after by-product credits, was $9.37 and $20.08, respectively, and increased over the prior quarter primarily due to the higher operating costs as silver volumes were largely flat when compared to the prior quarter.^3,4

Cash flow from operations was $23.8 million, a decrease of 6% over the prior quarter which was unfavorably impacted by working capital changes, largely tied to changes in accounts receivable. Capital investment increased to $15.4 million, a 23% increase over the prior quarter, but trending slightly below plan for the year on an annualized basis. Free cash flow was $8.4 million and decreased over the prior quarter due to the items mentioned above.

Outlook Revised

There is no change to the 2025 production guidance for Lucky Friday, maintaining silver production guidance of 4.7-5.1 million ounces of silver, or 8.0-8.5 million silver equivalent ounces when factoring in all metals (silver, lead and zinc). Guidance for cost of sales is revised up to $165 million from $135 million (includes depreciation), with the change about equally split between cash and non-cash items. Cash cost per silver ounce (after by-product credits) guidance is revised up to $7.00-$7.50 from $4.25-$4.75 and guidance for AISC per silver ounce (after by-product credits) is revised up to $20.00-$21.50 from $16.50-$18.00. The primary drivers of the cash cost and AISC guidance increase at Lucky Friday are higher labor and burden costs, insurance costs, higher than budgeted profit sharing expense, higher costs associated with contractor use intensity, and higher costs than budgeted for some consumables.^3,4 Capital guidance for Lucky Friday in 2025 is unchanged, with investment expected to increase in the second and third quarters (relative to the first quarter) due to the seasonal construction period. The Company expects the Lucky Friday operation to have 3-6 days of planned maintenance in the second quarter, which is the historical norm for quarterly maintenance downtime at the mine.

Please refer to guidance section of the release for production, cost, and capital guidance for 2025.

Operational Review

Keno Hill produced 772,430 ounces of silver, a 23% increase over the prior quarter due to higher mill throughput. Mill throughput for the first quarter averaged 305 tons per day ("tpd"), remaining below the permitted capacity of 440 tpd. The mill continues to rely on the existing ore stockpile as the mine continues to ramp up to higher tonnage rates (first quarter ore tons mined averaged 259 tpd). Work continues to advance to bring the asset into a state of commercial production.

Mill throughput during the quarter was impacted by power curtailments by Yukon Energy Corporation ("YEC"), which was carrying out powerline maintenance. YEC also experienced a turbine failure at its hydroelectric plant in Whitehorse in late October 2024, which is scheduled to be repaired in August of 2025.

First Quarter Financial Review

Sales were $16.9 million, increasing 10% over the prior quarter primarily due to a higher realized silver price despite not selling all metal produced in the quarter. Total cost of sales was $15.9 million, flat over the prior quarter. Because Keno Hill realized positive gross profit for the quarter, there was no allocation made to ramp-up and suspension costs, as compared to the prior quarter when $6.3 million of site-specific Keno Hill ramp-up costs were recognized.

Cash flow from operations was negative $9.7 million, a decline over the prior quarter due to unfavorable working capital changes tied to the inventory build ($6.9 million) and changes in accounts payable ($3.2 million) reflecting higher vendor payments in the quarter. Capital investments during the quarter were $10.4 million, $5.1 million lower than the prior quarter. Free cash flow was negative $18.4 million, a decline of $3.7 million over the prior quarter due to the lower cash flow from operations, partially offset by the lower capital investment during the quarter.

Outlook

Power curtailment by YEC at Keno Hill has improved in 2025, with the previously reported eight days of operational stoppage remaining unchanged through quarter end. Further disruptions are not expected during warmer weather months, during which time it is expected YEC's generating demand is lower. The Company estimates the power curtailments during planned August YEC maintenance downtime could lower production by approximately 90,000 ounces of silver in the third quarter, which was previously known and factored into our initial 2025 guidance released in February. Keno Hill is expected to have 3-6 days of planned maintenance in the second quarter, which is the historical norm for quarterly maintenance downtime at the mine.

Keno Hill has generated marginal profits for the company 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, is expected to generate positive free 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. 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 ore from both the Bermingham deposit and the lower grade Flame & Moth deposit, 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.

Please refer to (i) the discussion of commercial production at Keno Hill in the Company's Form 10-Q filed with the SEC on May 1, 2025 and (ii) the guidance section of the release for detailed production, cost, and capital guidance for 2025.

Operational Review

Casa Berardi produced 20,473 ounces of gold, a decrease of 2% over the prior quarter, due to lower underground grades mined and total milled tons. Mined tons (ore and waste) in the 160 pit decreased 20% over the prior quarter, with operating costs 2% lower than the prior quarter. The stripping ratio for the 160 pit is expected to decline in the second half of 2025, and is expected to further reduce costs.

First Quarter Financial Review

Sales were $56.0 million, a decrease of 5% over the prior quarter, primarily due to lower ounces sold, partially offset by a higher average realized gold price.

Total cost of sales was $50.7 million, a decrease of 2% over the prior quarter. Cash costs and AISC per gold ounce, each after by-product credits, were $2,195 and $2,303 respectively, an increase over the prior quarter as lower production costs and sustaining capital investment was partially offset by lower gold production.^3,4 Casa Berardi costs are anticipated to improve late in the third quarter of the year as the strip ratio of the 160 pit is expected to decline.

Cash flow from operations was $9.9 million, a 20% decrease over the prior quarter due to unfavorable working capital changes (timing of accounts payable payments and an increase in inventory). Capital investment was $16.3 million, lower by $0.1 million over the prior quarter. Free cash flow was negative $6.4 million, a $2.3 million decrease over the prior quarter due to lower cash flow from operations.²

Outlook

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.

Currently there is no change to the Casa Berardi production guidance of 76.0-82.0koz of gold production in 2025. Casa Berardi guidance for cost of sales (includes depreciation) is revised up to $180 million from $165.5 million due to increased open pit contractor costs related to extending the work by two months from the prior plan, and other cost increases. Cash cost guidance (after by-product credits, per gold ounce) is unchanged at $1,500-$1,650/oz and AISC (after by-product credits, per gold ounce) guidance is also unchanged at $1,750-$1,950/oz.^3,4 First quarter cash costs and AISC are above the full year guidance ranges on a pro rata basis but are in line with the Company's expectations and should improve in second half 2025 for the reasons noted above, with the fourth quarter expected to benefit the most in terms of cost improvement. Total capital investment guidance for 2025 is unchanged at $58-$63 million. Capital investment at Casa Berardi is expected to increase over the second and third quarters due to seasonal construction period plans, with tailings construction being a major factor in the expected increase during the warmer months of the year. Casa Berardi is expected to have 3-6 days of planned maintenance in the second quarter, which is the historical norm for quarterly maintenance downtime at the mine.

Casa Berardi is expected to produce gold from the 160 pit and associated stockpiles until 2027. At current gold prices, the 160 pit is expected to generate strong free cash flow late third quarter (when the pit's strip ratio is expected to decline) until 2027. Upon completion of mining at the 160 pit, and milling the remaining stockpiles, Casa Berardi is expected to have a production gap commencing in 2027 and continuing until 2032 or later, assuming no underground mine life extension. During this time, the focus is expected to be on investing in permitting, infrastructure and equipment, as well as de-watering and stripping two expected new open pits, the Principal and West Mine Crown Pillar pits. Upon conclusion of the hiatus and related permitting and construction, the Company expects the mine to generate significant free cash flow at current gold prices.

Given the expected hiatus in future production and the uncertainty surrounding permitting and timing of construction of the new open pits, the Company continues to consider strategic alternatives for Casa Berardi, which is ongoing and includes evaluating scenarios such as (i) an outright disposal, (ii) joint venturing the asset, (iii) a spin out of the asset, (iv) extending the underground mine or (v) accelerating future cash flows to capture part of the current record gold prices via a prepayment structure or other financing arrangement.

Please refer to guidance section of the release for production, cost, and capital guidance for 2025.

EXPLORATION AND PRE-DEVELOPMENT

Exploration and pre-development expenses totaled $4.5 million for the first quarter of the year. During the first quarter, exploration activities focused on underground exploration at Greens Creek and surface and underground definition drilling at Keno Hill.

Increased exploration spend is anticipated in the second and third quarters as exploration ramps-up during the warmer months. At Greens Creek, two helicopter supported surface core drills are planned to test near mine targets located within potential drifting distance from the current underground infrastructure. At Keno Hill, three surface core drills are focused on expanding resources in the Bermingham Deep target area.

At Greens Creek, exploration drilling during the first quarter in the 200 South Zone expands mineralization an additional 400 feet along plunge to the south and is now the southern-most high-grade drillhole intercept. While this interval is narrow, the high-grade silver, zinc, and lead mineralization continues to highlight the prospectivity of the region. At Keno Hill, underground drilling continues to confirm and expand mineralization in the Bermingham Deposit.

Exploration activities at Midas in Nevada will commence in May with two surface core drills testing multiple high-priority targets. These targets are strategically positioned to test down-dip extensions of mapped or inferred structures within an expansive nine-square-mile envelope of high-level favorable alteration. Recent sampling has identified several anomalies coincident with favorable structural settings, significantly enhancing our targeting precision. The Company's combined Midas and Hollister districts located within the Northern Nevada Rift and along the northern extension of the Carlin Trend continues to demonstrate potential for both epithermal gold-silver discoveries and deeper Carlin-type mineralization in areas previously unexplored.

Selected drill intercepts for the two operations are shown below.

Greens Creek

200 South Zone

• 24.0 oz/ton silver, 0.03 oz/ton gold, 19.8% zinc and 11.6% lead over 2.2 feet

East Zone

• 278.0 opt silver, 0.16 oz/ton gold, 0.6% zinc and 0.1% lead over 2.8 feet

Keno Hill

Bermingham Vein Zone

• Bear Vein: 63.8 oz/ton silver, 0.1% zinc, and 5.1% lead over 12.1 feet
  • Includes: 174.5 oz/ton silver, 0.1% zinc, and 13.8% lead over 4.0 feet
• Footwall Vein: 53.8 oz/ton silver, 1.1% zinc. and 8.7% lead over 15.3 feet
  • Includes: 78.6 oz/ton silver, 1.7% zinc, and 11.9% lead over 9.4 feet
• Main Vein: 31.1 oz/ton silver, 0.3% zinc, and 1.0% lead over 5.6 feet

Detailed drill assay highlights can be found in Table A at the end of the release.

Project Permitting Update

Libby Exploration Project

The Libby Exploration Project in Montana was included in the Trump Administration’s March 18, 2025, announcement of advancing critical mineral projects under Executive Order 14241, Immediate Measures to Increase American Mineral Production. As a result, the Project has been placed on the Federal Permitting Improvement Steering Council’s FAST-41 permitting dashboard, which will ensure the environmental review and authorizations schedule for the project is publicly available and allows all stakeholders to benefit from increased transparency.

The project is a large silver and copper deposit located 50 miles from the Company’s Lucky Friday mine. A Plan of Operations is currently under an Environmental Assessment review by the U.S. Forest Service, which review is expected to be completed later this year. Upon successful completion of that process, the Company would have the authority to dewater and rehabilitate approximately 7,000 feet of the existing 14,000 foot Libby Adit, extend the adit by approximately 4,200 feet, and construct lateral drifts to conduct exploration activities. As of December 31, 2024, the project had Inferred resources of 183.3 million ounces of silver and 759 thousand tons of copper. The Company continues to analyze the feasibility of developing a mine at the Libby Exploration Project and capital allocation decisions will be disciplined and focused on delivering shareholder value.

DIVIDENDS

Pursuant to the dividend policy, the Board of Directors declared a quarterly cash dividend of $0.00375 per share of common stock payable on or about June 10, 2025, to stockholders of record on May 23, 2025.

Preferred Stock

The Board of Directors declared a quarterly cash dividend of $0.875 per share of Series B preferred stock, payable on or about July 1, 2025, to stockholders of record on June 16, 2025.

2025 GUIDANCE ⁶

In the tables below the Company provides production, cost, and capital guidance on a consolidated basis and by mine, as well as projected consolidated exploration and pre-development expenditures. There are no changes to production and capital investment guidance, but there are changes to cost (total cost of sales, cash costs, and/or AISC) guidance for Greens Creek, Lucky Friday, and Casa Berardi.^3,4

2025 Production Outlook Reiterated

Consolidated silver production is expected to be 15.5-17.0 million ounces.

• Greens Creek's silver production is expected to be 8.1-8.8 million ounces.
• Lucky Friday's silver production is expected to be 4.7-5.1 million ounces.
• Keno Hill's silver production is expected to be 2.7-3.1 million ounces.

Consolidated gold production is expected to be 120-130 koz.

• Casa Berardi is expected to produce 76.0-82.0 koz.
• Greens Creek is expected to produce 44.0-48.0 koz.

2025 Cost Guidance Revised

Total silver cash cost guidance per silver ounce (after by-product credits) is unchanged at $3.00-$3.25/oz, and guidance for AISC per silver ounce (after by-product credits) is also unchanged at $15.75-$17.00/oz.^3,4 This guidance only incorporates Greens Creek and Lucky Friday, as Keno Hill remains in a state of pre-commercial production.

• At Greens Creek, guidance for total costs of sales (includes depreciation) remains unchanged at $289 million, while cash cost per silver ounce (after by-product credits) is lowered to $0.25-$0.75 from $2.00-$2.50, and guidance for AISC per silver ounce (after by-product credits) is lowered to $6.50-7.25 from $8.75-$9.50, primarily tied to higher by-product credits.^3,4
• At Lucky Friday, guidance for cost of sales is revised up to $165 million from $135 million (includes depreciation), with the change about equally split between cash and non-cash items. Cash cost per silver ounce (after by-product credits) guidance is revised up to $7.00-$7.50 from $4.25-$4.75 and guidance for AISC per silver ounce (after by-product credits) is revised up to $20.00-$21.50 from $16.50-$18.00.^3,4 The primary drivers of the cash cost and AISC guidance increase at Lucky Friday are higher labor and burden costs, insurance costs, higher than budgeted profit sharing expense, higher costs associated with contractor use intensity, and higher costs than budgeted for some consumables.

Casa Berardi guidance for cost of sales is revised up to $180 million from $165.5 million (includes depreciation) due to increased open pit contractor costs related to extending the work by two months from the prior plan, and other cost increases. Cash cost guidance (after by-product credits) per gold ounce is unchanged at $1,500-$1,650 and AISC (after by-product credits) per gold ounce guidance is reiterated at $1,750-$1,950.^3,4

2025 Capital and Exploration Guidance Reiterated

Consolidated capital investment remains unchanged and is expected to be $222-$242 million.

• Greens Creek's capital investment budget is primarily attributable to engineering and construction related to the expansion of its tailings facility, which is expected to increase tailings capacity to 2040.
• Lucky Friday's capital investment is heavily tied to underground development and a surface cooling project, which is critical to increase the designed cooling capacity at the mine over its reserve mine-life of seventeen years.
• Expected capital spend at Keno Hill comprises mine development and mine infrastructure projects, including a paste backfill plant, tailings facility, and water treatment plant.
• Casa Berardi's expected growth capital spend includes tailings construction costs.

Exploration and pre-development expenditures remain unchanged and are expected to be $28 million, with the focus at Greens Creek and Keno Hill, with some planned spend at Nevada and Lucky Friday.

CONFERENCE CALL AND WEBCAST

A conference call and webcast will be held on Friday, May 2, at 10:00 a.m. Eastern Time to discuss these results. We recommend that you dial in at least 10 minutes before the call commencement. You may join the conference call by dialing toll-free 1-800-715-9871 or for international dialing 1-646-370-1963. The Conference ID is 4812168 and must be provided when dialing in. Hecla's live and archived webcast can be accessed at https://events.q4inc.com/attendee/855262025 or www.hecla.com under Investors.

ABOUT HECLA

Founded in 1891, Hecla Mining Company (NYSE: HL) is the largest silver producer in the United States and Canada. In addition to operating mines in Alaska, Idaho, and Quebec, Canada, the Company is developing a mine in the Yukon, Canada, and owns a number of exploration and pre-development projects in world-class silver and gold mining districts throughout North America.

NOTES

Non-GAAP Financial Measures

Non-GAAP financial measures are intended to provide additional information only and do not have any standard meaning prescribed by United States generally accepted accounting principles ("GAAP"). These measures should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. The non-GAAP financial measures cited in this release and listed below are reconciled to their most comparable GAAP measure at the end of this release.

⁽¹⁾ Adjusted net income (loss) applicable to common stockholders is a non-GAAP measurement, a reconciliation of which to net income (loss) applicable to common stockholders, the most comparable GAAP measure, can be found at the end of the release. Adjusted net income (loss) applicable to common stockholders is a measure used by management to evaluate the Company's operating performance but should not be considered an alternative to net income (loss) applicable to common stockholders as defined by GAAP. They exclude certain impacts which are of a nature which we believe are not reflective of our underlying performance. Management believes that adjusted net income (loss) applicable to common stockholders per common share provides investors with the ability to better evaluate our underlying operating performance.

⁽²⁾ Free cash flow is a non-GAAP measure calculated as cash provided by operating activities less capital expenditures. Cash provided by operating activities for the Greens Creek, Lucky Friday, Keno Hill, and Casa Berardi operating segments excludes exploration and pre-development expense, as it is a discretionary expenditure and not a component of the mines’ operating performance. Capital expenditures refers to Additions to properties, plants and equipment from the Consolidated Statements of Cash Flows, net of finance leases.

⁽³⁾ Cash cost, after by-product credits, per silver and gold ounce is a non-GAAP measurement, a reconciliation of total cost of sales, can be found at the end of the release. It is an important operating statistic that management utilizes to measure each mine's operating performance. It also allows the benchmarking of performance of each mine versus those of our competitors. As a primary silver mining company, management also uses the statistic on an aggregate basis - aggregating the Greens Creek and Lucky Friday mines to compare performance with that of other silver mining companies. Similarly, the statistic is useful in identifying acquisition and investment opportunities as it provides a common tool for measuring the financial performance of other mines with varying geologic, metallurgical and operating characteristics. In addition, the Company may use it when formulating performance goals and targets under its incentive program.

⁽⁴⁾ All-in sustaining cost (AISC), after by-product credits, is a non-GAAP measurement, a reconciliation of which to total cost of sales, the closest GAAP measurement, can be found in the end of the release. AISC, after by-product credits, includes total cost of sales and other direct production costs, expenses for reclamation at the mine sites and all site sustaining capital costs. AISC, after by-product credits, is calculated net of depreciation, depletion, and amortization and by-product credits. Prior year presentation has been adjusted to conform with current year presentation.

⁽⁵⁾ Adjusted EBITDA is a non-GAAP measurement, a reconciliation of which to net loss, the most comparable GAAP measure, can be found at the end of the release. Adjusted EBITDA is a measure used by management to evaluate the Company's operating performance but should not be considered an alternative to net loss, or cash provided by operating activities as those terms are defined by GAAP, and does not necessarily indicate whether cash flows will be sufficient to fund cash needs. In addition, the Company may use it when formulating performance goals and targets under its incentive program. Net debt to adjusted EBITDA is a non-GAAP measurement, a reconciliation of which to debt and net income (loss), the most comparable GAAP measurements, can be found at the end of the release. It is an important measure for management to measure relative indebtedness and the ability to service the debt relative to its peers. It is calculated as total debt outstanding less total cash on hand divided by adjusted EBITDA.

⁽⁶⁾ Expectations for 2025 include silver, gold, lead, and zinc production from Greens Creek, Lucky Friday, Keno Hill, and Casa Berardi converted using gold $2,550/oz, silver $28/oz, zinc $1.25/lb, and lead $0.85/lb. Numbers are rounded. Assumed exchange rate for Canadian dollar is 1.35 CAD/USD.

Current GAAP measures used in the mining industry, such as total cost of goods sold, do not capture all the expenditures incurred to discover, develop and sustain silver and gold production. Management believes that AISC is a non-GAAP measure that provides additional information to management, investors and analysts to help (i) in the understanding of the economics of our operations and performance compared to other producers and (ii) in the transparency by better defining the total costs associated with production. Similarly, the statistic is useful in identifying acquisition and investment opportunities as it provides a common tool for measuring the financial performance of other mines with varying geologic, metallurgical and operating characteristics. In addition, the Company may use it when formulating performance goals and targets under its incentive program.

Cautionary Statement Regarding Forward Looking Statements, Including 2025 Outlook

This news release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbor created by such sections and other applicable laws, including Canadian securities laws. Words such as “may”, “will”, “should”, “expects”, “intends”, “projects”, “believes”, “estimates”, “targets”, “anticipates” and similar expressions are used to identify these forward-looking statements. Such forward-looking statements may include, without limitation: (i) Capital investment at Greens Creek is expected to increase in the second and third quarters, the mine expects to generate power for 8 weeks beginning mid-June and expansion of its tailings facility is expected to increase tailings capacity to 2040; (ii) Each operating mine is expected to have 3-6 days of planned mill maintenance in 2025; (iii) Keno Hill expects no power disruptions in warm months, and Yukon Energy Corporation's out-of-service hydro-electric turbine is expected to be repaired by summer 2025; (iv) At 440 tons per day, Keno Hill projects to generate free cash flow using current prices, and at budgeted prices, 500 to 600 tons per day is projected to achieve, sustainable profitability; (v) Casa Berardi is expected to 1) reduce the stripping rate at the 160 pit in the second half of 2025, and thereby reduce costs, 2) continue underground production through mid-2025, 3) produce gold from the 160 pit and generate strong cash flow starting in the third quarter of 2025 until 2027, 4) have improved economics in the second half of 2025, 4) see an increase in capital investment in the second and third quarters and 5) have a production gap commencing in 2027 to 2032 or later. During this time, the 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 conclusion of the hiatus and related permitting and construction, the Company expects the mine to generate significant free cash flow at current gold prices; (vi) the Company’s review of strategic alternatives for Casa Berardi may lead to (1) an outright disposal, (2) joint venturing the asset, (3) a spin out of the asset, (4) extending the underground mine or (5) accelerating future cash flows to capture part of the current record gold prices via a prepayment structure or other financing arrangement; (vii) the Libby Exploration project may complete an Environmental Assessment and then dewater and rehabilitate approximately 7,000 feet of the existing 14,000 foot Libby Adit; (viii) projected total cost of sales, as well as cash cost and AISC per ounce (in each case after by-product credits) for Greens Creek, Lucky Friday, and Casa Berardi individually and for silver overall for 2025; (ix) Lucky Friday's reserve mine-life is expected to be eighteen years; (x) Company-wide and mine-specific estimated spending on capital, exploration and predevelopment for 2025; and (xi) Company-wide and mine-specific estimated silver, gold, silver-equivalent and gold-equivalent ounces of production for 2025. The material factors or assumptions used to develop such forward-looking statements or forward-looking information include that the Company’s plans for development and production will proceed as expected and will not require revision as a result of risks or uncertainties, whether known, unknown or unanticipated, to which the Company’s operations are subject. Estimates or expectations of future events or results are based upon certain assumptions, which may prove to be incorrect, which could cause actual results to differ from forward-looking statements. Such assumptions, include, but are not limited to: (i) there being no significant change to current geotechnical, metallurgical, hydrological and other physical conditions; (ii) permitting, development, operations and expansion of the Company’s projects being consistent with current expectations and mine plans; (iii) political/regulatory developments in any jurisdiction in which the Company operates being consistent with its current expectations; (iv) the exchange rate for the USD/CAD being approximately consistent with current levels; (v) certain price assumptions for gold, silver, lead and zinc; (vi) prices for key supplies being approximately consistent with current levels; (vii) the accuracy of our current mineral reserve and mineral resource estimates; (viii) there being no significant changes to the availability of employees, vendors and equipment; (ix) the Company’s plans for development and production will proceed as expected and will not require revision as a result of risks or uncertainties, whether known, unknown or unanticipated; (x) counterparties performing their obligations under hedging instruments and put option contracts; (xi) sufficient workforce is available and trained to perform assigned tasks; (xii) weather patterns and rain/snowfall within normal seasonal ranges so as not to impact operations; (xiii) relations with interested parties, including First Nations and Native Americans, remain productive; (xiv) maintaining availability of water rights; (xv) factors do not arise that reduce available cash balances; and (xvi) there being no material increases in our current requirements to post or maintain reclamation and performance bonds or collateral related thereto. In addition, material risks that could cause actual results to differ from forward-looking statements include but are not limited to: (i) gold, silver and other metals price volatility; (ii) operating risks; (iii) currency fluctuations; (iv) increased production costs and variances in ore grade or recovery rates from those assumed in mining plans; (v) community relations; and (vi) litigation, political, regulatory, labor and environmental risks. For a more detailed discussion of such risks and other factors, see the Company's 2024 Form 10-K filed on February 13, 2025 and Form 10-Q filed on May 1, 2025, for a more detailed discussion of factors that may impact expected future results. The Company undertakes no obligation and has no intention of updating forward-looking statements other than as may be required by law.

Cautionary Statements to Investors on Reserves and Resources

This news release uses the terms “mineral resources”, “measured mineral resources”, “indicated mineral resources” and “inferred mineral resources.” Mineral resources that are not mineral reserves do not have demonstrated economic viability. You should not assume that all or any part of measured or indicated mineral resources will ever be converted into mineral reserves. Further, inferred mineral resources have a great amount of uncertainty as to their existence and as to whether they can be mined legally or economically, and an inferred mineral resource may not be considered when assessing the economic viability of a mining project, and may not be converted to a mineral reserve. We report reserves and resources under the SEC’s mining disclosure rules (“S-K 1300”) and Canada’s National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) because we are a “reporting issuer” under Canadian securities laws. Unless otherwise indicated, all resource and reserve estimates contained in this press release have been prepared in accordance with S-K 1300 as well as NI 43-101.

Qualified Person (QP)

Kurt D. Allen, MSc., CPG, VP -Exploration of Hecla Mining Company and Keith Blair, MSc., CPG, Chief Geologist of Hecla Limited, who serve as a Qualified Person under S-K 1300 and NI 43-101, supervised the preparation of the scientific and technical information concerning Hecla’s mineral projects in this news release. Technical Report Summaries for the Company’s Greens Creek, Lucky Friday, Casa Berardi and Keno Hill properties are filed as exhibits 96.1 - 96.4, respectively, to the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 and are available at www.sec.gov. Information regarding data verification, surveys and investigations, quality assurance program and quality control measures and a summary of analytical or testing procedures for (i) the Greens Creek Mine are contained in its Technical Report Summary and in its NI 43-101 technical report titled “Technical Report for the Greens Creek Mine” effective date December 31, 2018, (ii) the Lucky Friday Mine are contained in its Technical Report Summary and in its NI 43-101 technical report titled “Technical Report for the Lucky Friday Mine Shoshone County, Idaho, USA” effective date April 2, 2014, (iii) Casa Berardi are contained in its Technical Report Summary and in its NI 43-101 technical report titled “Technical Report on the Casa Berardi Mine, Northwestern Quebec, Canada” effective date December 31, 2023, (iv) Keno Hill is contained in its Technical Report Summary titled “S-K 1300 Technical Report Summary on the Keno Hill Mine, Yukon, Canada” and in its NI 43-101 technical report titled “Technical Report on the Keno Hill Mine, Yukon, Canada” effective date December 31, 2023, and (v) the San Sebastian Mine, Mexico, are contained in a NI 43-101 technical report prepared for Hecla titled “Technical Report for the San Sebastian Ag-Au Property, Durango, Mexico” effective date September 8, 2015. Also included in each Technical Report Summary and technical report listed above is a description of the key assumptions, parameters and methods used to estimate mineral reserves and resources and a general discussion of the extent to which the estimates may be affected by any known environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant factors. Information regarding data verification, surveys and investigations, quality assurance program and quality control measures and a summary of sample, analytical or testing procedures are contained in NI 43-101 technical reports prepared for Klondex Mines Ltd. for (i) the Fire Creek Mine (technical report dated March 31, 2018), (ii) the Hollister Mine (technical report dated May 31, 2017, amended August 9, 2017), and (iii) the Midas Mine (technical report dated August 31, 2014, amended April 2, 2015). Information regarding data verification, surveys and investigations, quality assurance program and quality control measures and a summary of sample, analytical or testing procedures are contained in a NI 43-101 technical reports prepared for ATAC Resources Ltd. for (i) the Osiris Project (technical report dated July 28, 2022) and (ii) the Tiger Project (technical report dated February 27, 2020). Copies of these technical reports are available under the SEDAR profiles of Klondex Mines Unlimited Liability Company and ATAC Resources Ltd., respectively, at www.sedar.com (the Fire Creek technical report is also available under Hecla’s profile on SEDAR). Mr. Allen and Mr. Blair reviewed and verified information regarding drill sampling, data verification of all digitally collected data, drill surveys and specific gravity determinations relating to all the mines. The review encompassed quality assurance programs and quality control measures including analytical or testing practice, chain-of-custody procedures, sample storage procedures and included independent sample collection and analysis. This review found the information and procedures meet industry standards and are adequate for Mineral Resource and Mineral Reserve estimation and mine planning purposes.