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HECLA MINING CO/DE/ (HL)

CIK: 0000719413. SIC: 1400 Mining & Quarrying of Nonmetallic Minerals (No Fuels). Latest 10-K as of: 2026-02-17.

SIC breadcrumb: Mining > SIC Major Group 14 > SIC 1400 Mining & Quarrying of Nonmetallic Minerals (No Fuels)

SEC company page: https://www.sec.gov/edgar/browse/?CIK=719413. Latest filing source: 0001193125-26-055059.

Selected Fundamentals

MetricValueUnitFYFiled
Revenue1,423,019,000USD20252026-02-17
Net income321,712,000USD20252026-02-17
Assets3,560,645,000USD20252026-02-17

Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-17. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000719413.json. Derived margins are computed from the extracted annual SEC facts.

Flow metrics use full-year FY periods from 10-K/10-K/A filings; balance-sheet metrics use FY-end instants. Missing metrics are omitted rather than fabricated.

Metric2016201720182019202020212022202320242025
Revenue645,957,000577,775,000567,137,000673,266,000691,873,000807,473,000718,905,000720,227,000929,925,0001,423,019,000
Net income61,569,000-28,520,000-26,563,000-94,909,000-9,457,00035,095,000-37,348,000-84,217,00035,802,000321,712,000
Operating income109,439,00060,106,000-39,126,000-46,678,00066,978,00083,420,000-12,438,000-44,674,000106,276,000514,795,000
Gross profit184,001,000152,449,00079,099,00033,830,000161,100,000217,801,000116,156,000112,949,000198,210,000622,203,000
Diluted EPS0.16-0.07-0.06-0.19-0.020.06-0.07-0.140.060.49
Assets2,355,795,0002,345,158,0002,703,944,0002,660,774,0002,700,210,0002,728,808,0002,927,172,0003,011,104,0002,981,060,0003,560,645,000
Liabilities891,833,000883,881,0001,012,981,000964,240,000986,425,000968,021,000948,205,0001,043,000,000941,546,000968,999,000
Stockholders' equity1,462,240,0001,461,277,0001,690,426,0001,696,534,0001,713,785,0001,760,787,0001,978,967,0001,968,104,0002,039,514,0002,591,646,000
Cash and cash equivalents169,777,000186,107,00027,389,00062,452,000129,830,000210,010,000104,743,000106,374,00026,868,000241,558,000
Net margin9.53%-4.94%-4.68%-14.10%-1.37%4.35%-5.20%-11.69%3.85%22.61%
Operating margin16.94%10.40%-6.90%-6.93%9.68%10.33%-1.73%-6.20%11.43%36.18%

Financial Charts

Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-05-05. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000719413.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

QuarterEnd DateRevenueNet IncomeDiluted EPSMethod
2022-Q22022-06-30-0.03reported discrete quarter
2022-Q32022-09-30-0.04reported discrete quarter
2023-Q12023-03-31-0.01reported discrete quarter
2023-Q22023-06-30178,131,000-15,694,000-0.03reported discrete quarter
2023-Q32023-09-30181,906,000-22,415,000-0.04reported discrete quarter
2023-Q42023-12-31160,690,000-42,935,000derived Q4 = FY annual - nine-month YTD
2024-Q12024-03-31189,528,000-5,753,000-0.01reported discrete quarter
2024-Q22024-06-30245,657,00027,870,0000.04reported discrete quarter
2024-Q32024-09-30245,085,0001,761,0000.00reported discrete quarter
2024-Q42024-12-31249,655,00011,924,000derived Q4 = FY annual - nine-month YTD
2025-Q12025-03-31261,339,00028,872,0000.05reported discrete quarter
2025-Q22025-06-30304,027,00057,705,0000.09reported discrete quarter
2025-Q32025-09-30409,542,000100,726,0000.15reported discrete quarter
2025-Q42025-12-31448,111,000134,409,000derived Q4 = FY annual - nine-month YTD
2026-Q12026-03-31411,433,000-19,028,000-0.03reported discrete quarter

Quarterly Charts

Macro Cross-References

Latest quarter (10-Q)

Latest 10-Q source: 0001193125-26-206810.

Extracted between Part I Item 2 and the next Item 3/4 or Part II heading after HTML sanitization. Confidence: high. Filing date: 2026-05-05. Report date: 2026-03-31.

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

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 in our Annual Report on Form 10-K for the year ended December 31, 2025 ("2025 Form 10-K"), 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 premier silver producer, with a rich heritage dating back to 1891. Our operations at Greens Creek, Lucky Friday and Keno Hill combined to produce 37% of 2025 silver production in the U.S. and Canada, complemented by significant gold production from Greens Creek and our former Casa Berardi operation. Our strategic positioning in the stable jurisdictions of the U.S. and Canada provides us with distinct operational advantages and reduced political risk compared to our global peers. Our operational and strategic framework centers on four core pillars:

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

Recent Developments

On March 25, 2026, we completed the sale of our Hecla Quebec Inc. ("Hecla Quebec") subsidiary which owns the Casa Berardi mine to Orezone Gold Corporation ("Orezone") for a fair value of $385.7 million ($601.7 million on an undiscounted basis) comprised of the following:

•
Cash of $170.0 million upon closing on March 25, 2026

•
Accounts receivable related to working capital adjustments of $16.6 million of which $15.6 million was received during April and the remaining $1.0 million is expected to be received in May

•
65,757,265 Orezone common shares valued at $106.1 million on closing

•
Deferred cash consideration ("Deferred Cash Consideration") with a fair value of $57.1 million for the cash payments of $30 million and $50 million to be received 18 months and 30 months after closing, respectively

•
Contingent cash consideration ("Contingent Cash Consideration") with a fair value of $35.9 million for a total of up to $241 million of undiscounted payments consisting of:

o
A fair value of $3.3 million for two annual gold-price related payments of $5 million each should the average gold price exceed $4,200/oz for the first and second years following closing

o
A fair value of $9.9 million for two contingent payments of $10 million each due upon issuance of certain permits to open pit mine two additional identified orebodies

o
A fair value of $22.7 million for certain future gold production-based royalty payments with an undiscounted value of up to $211 million ($80/ounce for the first 500,000 ounces, then $180/ounce thereafter from future open pit operations)

Orezone has a set-off right to reduce the unpaid balance of the Deferred Contingent Cash or the Contingent Cash Consideration payments by 50% of the amount by which the financial assurance required by the Quebec government under the updated Casa Berardi closure plan exceeds $150 million, excluding increases caused by Orezone's post-closing actions. Our current estimate of that excess has been included in determining the fair values of the Deferred Cash consideration and Contingent Cash Consideration for the first gold-priced payment.

The sale of Hecla Quebec represents a disciplined portfolio optimization and focuses capital allocation on our silver assets, which we believe to represent significant growth and value creation opportunities. We have solidified our revenue exposure to silver and we are focused on operating in what we view to be the most favorable jurisdictions. Subsequent to March 31, 2026, we used the

23

cash proceeds from the transaction for debt reduction and balance sheet strengthening, enhancing our financial flexibility and capacity to invest in strategic growth investments.

We determined that the sale of Hecla Quebec represents a strategic shift that has a major effect on our operations and financial results and therefore, beginning with this quarterly report on Form 10-Q for the period ending March 31, 2026, the Casa Berardi operation is no longer a reportable segment and its financial results are reflected in the Company’s unaudited interim condensed consolidated financial statements as a discontinued operation for all periods presented. Unless otherwise specified, the discussion of financial results within this Item 2 (MD&A) will focus on our continuing operations, in relation to the respective comparative periods which have been recast to reflect the continuing operations of our business.

24

First Quarter 2026 Highlights

Operational Achievements:

•
Leading North American Silver Producer - Through the completion of the sale of Hecla Quebec, we have solidified our position as a leading silver multi-asset mining company.

•
Production - We produced 3.9 million ounces of silver at our primary silver operations, compared to 4.1 million ounces of silver in the first quarter of 2025. At Greens Creek, we produced 12,886 ounces of gold, a decrease compared to 13,759 ounces of gold produced in the first quarter of 2025, driven primarily by lower throughput.

•
Lucky Friday Surface Cooling Project Advancement - Construction of the surface cooling project continued with the project 81% complete and tracking for completion by mid-2026.

Financial Performance:

•
Revenue Generation - Generated sales of $411.4 million, a 100% increase over the first quarter of 2025.

•
Continuous Improvement - Keno Hill's recent track record of gross profit generation continued with $24.3 million of gross profit, driven by higher realized prices, partly offset by lower volumes sold, compared to a gross profit of $1.0 million in the first quarter of 2025.

•
Net income from continuing operations and shareholder returns - Generated net income from continuing operations of $164.7 million, compared to $24.3 million in the first quarter of 2025 and returned $2.5 million in dividends to common stockholders.

•
Investments in Continuing Operations - Made capital investments of $39.3 million, including $6.1 million at Greens Creek, $17.0 million at Lucky Friday and $15.0 million at Keno Hill.

External Factors that Impact our Results

Our financial results vary as a result of fluctuations in market prices primarily for silver and gold and, to a lesser extent, zinc, lead and copper. World market prices for these commodities have fluctuated historically and are affected by numerous factors beyond our control. To date, tariffs have not materially impacted our financial results. However, future tariffs or other global trade restraints could impact our performance. Historically our US operations have had significant sales into China and Canada, and each of those countries is or could be subject to tariffs, and each has or may retaliate in kind. Notwithstanding these recent developments, we believe that the outlook for precious metals fundamentals is favorable due to macro-economic factors such as lower interest rate expectations, geopolitical uncertainty and global growth expectations, which have resulted in significant volatility in the financial and commodities markets, including the precious metals market. See Item 1A. “Risk Factors” contained in Part I of our 2025 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 (non-GAAP) and adjusted EBITDA (non-GAAP). The average realized prices for all metals sold by us continued to exhibit significant volatility during the period. We have also experienced significant cost inflation across our operations, principally associated with higher energy prices, increased costs for other consumables such as reagents, explosives and steel, and higher labor and contractor costs.

Consolidated Results of Continuing Operations

Total sales for the three months ended March 31, 2026 and 2025 were as follows:

Three Months Ended

March 31,

(in thousands)

2026

2025

Silver

$

295,633

$

117,977

Gold

56,977

31,359

Lead

22,297

22,106

Zinc

36,873

33,125

Copper

412

391

Less: Smelter and refining charges

(5,411

)

(6,712

)

Total metal sales

406,781

198,246

Environmental remediation services

4,652

7,088

Total sales

$

411,433

$

205,334

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

25

government, and the expenses incurred are passed through to the government for reimbursement with minimal margin generated by us in performing this work.

Total metal sales for the three months ended March 31, 2026 and 2025, 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, 2025

$

117,977

$

31,359

$

55,622

$

(6,712

)

$

198,246

Variances - 2026 versus 2025:

Price

175,587

22,460

3,683

—

201,730

Volume

2,069

3,158

277

—

5,504

Smelter terms

—

—

—

1,301

1,301

Three months ended March 31, 2026

$

295,633

$

56,977

$

59,582

$

(5,411

)

$

406,781

The fluctuation in sales for the three months ended March 31, 2026 compared to the same periods in 2025 was primarily due to the following:

•
Higher average realized prices for all metals for compared to the same period in 2025. The table below summarizes average spot prices and our average realized prices for the commodities we sell:

Three Months Ended

March 31,

2026

2025

Silver –

 London PM Fix ($/ounce)

$

84.39

$

31.91

 Realized price per ounce

$

82.70

$

33.59

Gold –

 London PM Fix ($/ounce)

$

4,875

$

2,863

 Realized price per ounce

$

4,899

$

2,940

Lead –

 LME Final Cash Buyer ($/pound)

$

0.88

$

0.89

 Realized price per pound

$

0.98

$

0.92

Zinc –

 LME Final Cash Buyer ($/pound)

$

1.47

$

1.29

 Realized price per pound

$

1.41

$

1.29

Copper –

 LME Final Cash Buyer ($/pound)

$

5.82

$

4.24

 Realized price per pound

$

5.72

$

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. P

[Excerpt truncated for page length; source filing is linked above.]

Latest 10-K MD&A

Extracted between Item 7 and the next Item 7A/8 heading after HTML sanitization. Confidence: high. Filing date: 2026-02-17. Report date: 2025-12-31.

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following Management’s Discussion and Analysis (“MD&A”) provides information that management believes is relevant to an assessment and understanding of the consolidated financial condition and results of operations of Hecla Mining Company and its subsidiaries (collectively the “Company,” “our,” or “we”). We use certain non-GAAP financial performance measures in our MD&A. For a detailed description of these measures, please see “Non-GAAP Financial Performance Measures” at the end of this item. This item should be read in conjunction with our Consolidated Financial Statements and the notes thereto included in this annual report.

Overview

Hecla Mining Company stands as the premier silver producer, with a rich heritage dating back to 1891. Our operations at Greens Creek, Lucky Friday and Keno Hill combined to produce 37% 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. 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

Recent Developments

On January 26, 2026, we announced the sale of our Hecla Quebec Inc. subsidiary which owns the Casa Berardi segment to Orezone for up to $593 million in total consideration. The transaction is expected to close in the first quarter of 2026, subject to the satisfaction of customary closing conditions. There can be no assurance that the transaction will be completed on the expected timeline or at all, or that we will receive the full anticipated consideration. Details of the consideration to be received are as follows:

•
Cash consideration of $160 million due upon closing;

•
Equity consideration of approximately 65.7 million Orezone common shares, to be issued upon closing, valued at $112 million as of January 26, 2026;

•
Deferred cash consideration of $30 million and $50 million to be paid at 18 months and 30 months, respectively, from closing; and

•
Contingent consideration of up to $241 million consisting of:

o
Production-based royalty payments of up to $211 million ($80/ounce for the first 500,000 ounces, then $180/ounce thereafter from open pit operations)

o
Permit receipt payment of $20 million upon grant of permits

o
Gold price-linked payment of up to $10 million at gold prices exceeding $4,200/ounce.

The sale of Casa Berardi represents a disciplined portfolio optimization and focuses capital allocation on our differentiated silver assets, which we believe to represent significant growth and value creation opportunities. Upon closing, we will further solidify our position as a leading silver multi-asset mining company with what we believe to be the best revenue exposure to silver amongst our immediate peers and focused on operating in what we view to be the most favorable jurisdictions. We anticipate using the cash proceeds from the transaction for debt reduction and balance sheet strengthening, enhancing our financial flexibility and capacity to invest in strategic growth investments, positioning us to maximize value from our world-class silver portfolio. We are confident in Orezone's operational expertise and believe they are well-positioned to create additional value from Casa Berardi.

2025 Highlights

Operational Achievements:

•
Strong Production - Delivered 17.0 million ounces of silver and 150,509 ounces of gold. Gold production benefited from higher grades and recoveries at Greens Creek and the continuation of underground mining at Casa Berardi. See Consolidated Results of Operations below for information on total cost of sales, as well as cash costs and AISC, each after by-product credits, per silver and gold ounce for 2025, 2024 and 2023.

63

•
Lucky Friday Production - Achieved record production of 5.3 million ounces, while continuing to advance infrastructure projects such as the surface cooling plant and beginning work on a new tailings impoundment.

•
Keno Hill Consistent Production - Produced 3.0 million ounces of silver, meeting production guidance of 2.9 - 3.1 million ounces, which represents a 9% increase from the prior year, while continuing to improve the developed state of the mine and invest in infrastructure needed to advance toward commercial production.

•
Nevada Properties Advancement - Advanced exploration and permitting across the Company's Nevada portfolio. At the Midas Project, a 2025 drilling program confirmed mineralized structures in five of six targets tested, including a gold discovery at the previously untested Pogo trend that returned 0.95 ounces per ton gold over 2.2 feet with visible gold, and at the Sinter Offset target, 0.46 ounces per ton gold over 6.1 feet, extending the Sinter Vein approximately 750 feet across a post-mineral fault from its 2021 discovery location. The Midas district historically produced approximately 2.2 million ounces of gold and 27 million ounces of silver during modern-era operations (1998–2014) and includes existing permitted infrastructure, including a mill with approximately 1,200 tons per day capacity, that has been in care and maintenance for approximately five years. At the 100% owned Aurora project, the Company received a Finding of No Significant Impact and Record of Decision for the Polaris exploration project, a permitting milestone enabling the advancement of exploration drilling activities at this historically high-grade gold-silver property. Both Nevada projects are supported by existing infrastructure that the Company plans to evaluate for refurbishment in connection with a potential restart of operations, which is expected to require significantly lower capital expenditure than construction of new facilities, subject to the results of ongoing technical and economic assessments.

•
Safety - Reduced company wide TRIFR to 1.69, an improvement of 13% over the prior year.

Financial Performance:

•
Revenue Generation - Achieved record sales of more than $1.4 billion.

•
Continuous Improvement - Turned Keno Hill profitable for the first time under our ownership, delivering $53.7 million in gross profit and Casa Berardi generated $112.4 million of gross profit, both a significant improvement over the prior year.

•
Shareholder Returns - Generated net income applicable to common stockholders of $321.2 million and returned $10.4 million to our common stockholders through dividend payments.

•
Investment in Operations - Made capital investments of approximately $252.4 million, including $54.6 million at Greens Creek, $72.9 million at Lucky Friday, $61.5 million at Casa Berardi and $58.2 million at Keno Hill.

•
Deleveraged and Strengthened Balance Sheet - Redeemed $212 million of our Senior Notes using proceeds from the sale of stock under our ATM program. In addition, cash flow from operating activities of $562.6 million allowed for full repayment of IQ notes in July and full repayment of the revolving credit facility in September.

Our average realized prices for silver, gold and zinc increased in both 2025 and 2024 compared to 2024 and 2023 respectively. See the Consolidated Results of Operations section below for information on our average realized metals prices for 2025, 2024 and 2023. Lead and zinc represent important by-products at all our silver operations, and gold is also a significant by-product at Greens Creek. Copper is a minor by-product credit at Greens Creek.

See the Consolidated Results of Operations section below for a discussion of the factors impacting income applicable to common stockholders for the three years ended December 31, 2025, 2024 and 2023.

Key Issues Impacting our Business

Our current business strategy is to focus our financial and human resources in the following areas:

•
operating our properties safely, in an environmentally responsible and cost-effective manner;

•
strengthen our balance sheet to preserve our financial position in varying metals price and operational environments, improve capital allocation framework with a focus on ROIC and increasing free cash flow;

•
improving and optimizing operations at all sites, which includes incurring costs for new technologies and equipment, and implementing standardized systems and processes;

•
optimize asset portfolio and identify growth opportunities, including through the pending sale of our Casa Berardi segment and Quebec assets to Orezone;

•
expanding our proven and probable reserves, mineral resources and production capacity at our properties;

64

•
advancing the development and ramp up of the Keno Hill mine to sustained profitability;

•
seeking opportunities to acquire and invest in mining and exploration properties and companies;

•
advancing permitting of the Libby Exploration project in Montana;

•
enhance ESG performance and risk management systems;

•
build high-performing teams and strengthen organizational capabilities; and

•
maintaining and investing in exploration and pre-development projects in the vicinities of mining districts and projects we believe to be under-explored and under-invested: Greens Creek on Alaska's Admiralty Island located near Juneau; North Idaho's Silver Valley in the historic Coeur d'Alene Mining District; our projects located in two districts in Nevada; our projects in the Keno Hill mining district in the Yukon Territory, Canada; northwestern Montana; and the Republic Mining District in Washington state.

We strive to achieve excellent safety and health performance everywhere we work. We seek to implement this goal by: training employees in safe work practices; establishing, following and improving safety standards; investigating accidents, incidents and losses to avoid recurrence; involving employees in the establishment of safety standards; and participating in the National Mining Association’s CORESafety program. We strive for continuous improvement in mine safety and emergency preparedness by staying current with industry best practices, while implementing measures that are appropriate for our operations and the risks we face. We respond to issues outlined in investigations and inspections by MSHA, the Commission of Labor Standards, Pay Equity and Occupational Health and Safety in Quebec, the Workers' Safety and Compensation Board in the Yukon and the Mexico Ministry of Economy and Mining and continue to evaluate our safety practices. There can be no assurance that our practices will mitigate or eliminate all safety risks. Achieving and maintaining compliance with regulations will be challenging and may increase our operating costs. See Item 1A. Risk Factors - We face substantial governmental regulation, including in the United States the Mine Safety and Health Act, various environmental laws and regulations and the 1872 Mining Law.

A number of key factors may impact the execution of our strategy, including regulatory issues, metals prices and inflationary pressures on input costs. Metals prices can be very volatile and are influenced by a number of factors beyond our control (except on a limited basis through the use of derivative contracts). See Item 7. Critical Accounting Estimates and Note 10 of Notes to Consolidated Financial Statements. While we believe longer-term global economic and industrial trends could result in continued demand for the metals we produce, prices have been volatile and there can be no assurance that current prices will continue.

Volatility in global financial markets and other factors can pose a significant challenge to our ability to access credit and equity markets, should we need to do so. We utilize forward contracts and options to manage exposure to declines in the prices of (i) silver, gold, zinc and lead contained in our concentrates that have been shipped but have not yet settled, and (ii) from time to time silver, zinc and lead that we forecast for future concentrate shipments. In addition, we have in place a $225.0 million revolving credit agreement. As of December 31, 2025, no amount was drawn on the facility, with $6.7 million being used for letters of credit, no amount was drawn on the facility, leaving approximately $218.3 million available for borrowing.

Another challenge for us is the risk associated with environmental litigation and ongoing reclamation activities. As described in Item 1A. Risk Factors and in Note 16 of Notes to Consolidated Financial Statements, it is possible that our estimate of these liabilities may change in the future, affecting our strategic plans. We are involved in various environmental legal matters and the estimate of our environmental liabilities and liquidity needs, as well as our strategic plans, may be significantly impacted as a result of these matters or new matters that may arise. We strive to ensure that our activities are conducted in compliance with applicable laws and regulations and attempt to resolve environmental litigation on terms as favorable to us as possible.

Reserve and resource estimation is a major risk inherent in mining. Our reserve and resource estimates, which underlie (i) our mining and investment plans, (ii) the valuation of a significant portion of our long-term assets and (iii) depreciation, depletion and amortization expense, may change based on economic factors and actual production experience. Until ore is mined and processed, the volumes and grades of our reserves and resources must be considered as estimates. Our reserves are depleted as we mine. Reserves and resources can also change as a result of changes in economic and operating assumptions. See Item 1A. Risk Factors - Our mineral reserve and resource estimates may be imprecise.

65

Consolidated Results of Operations

Total metal sales for the years ended December 31, 2025, 2024 and 2023, 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

2023

$302,284

$274,611

$188,958

$(50,909)

$714,944

Variances - 2024 versus 2023:

Price

76,019

61,309

(2,873)

10,743

145,198

Volume

35,677

(17,664)

32,321

(2,485)

47,849

Smelter terms

—

—

—

1,378

1,378

2024

$413,980

$318,256

$218,406

$(41,273)

$909,369

Variances - 2025 versus 2024:

Price

253,909

150,800

(5,131)

17,822

417,400

Volume

21,517

15,034

13,145

208

49,904

Smelter terms

—

—

—

7,228

7,228

2025

$689,406

$484,090

$226,420

$(16,015)

$1,383,901

Average market and realized metals prices for 2025, 2024 and 2023 were as follows:

Average price for the year ended December 31,

2025

2024

2023

Silver

Realized price per ounce

$45.25

$28.58

$23.33

London PM Fix ($/ounce)

39.94

28.24

23.39

Gold

Realized price per ounce

3,490

2,403

1,939

London PM Fix ($/ounce)

3,435

2,387

1,943

Lead

Realized price per pound

0.94

0.97

1.03

LME Final Cash Buyer ($/pound)

0.89

0.94

0.97

Zinc

Realized price per pound

1.39

1.37

1.35

LME Final Cash Buyer ($/pound)

1.30

1.26

1.20

Copper

Realized price per pound

4.75

4.20

—

LME Final Cash Buyer ($/pound)

4.51

$4.15

NA

Average realized prices 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 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. For 2025, 2024, and 2023, we recorded net positive price adjustments to provisional settlements of $51.0 million, $22.9 million and $18.2 million, respectively. The price adjustments related to silver, gold, zinc and lead contained in our concentrate sales were partially offset by gains and losses on derivative instruments for those metals for each year (see Note 10 of Notes to Consolidated Financial Statements for more information). The gains and losses on these contracts are included in revenues and impact the realized prices for silver, gold, lead and zinc. 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 products sold during the period.

66

Total metals production and sales volumes for each period are shown in the following table:

Year Ended December 31,

2025

2024

2023

Silver -

Ounces produced

17,026,785

16,169,930

14,342,863

Payable ounces sold

15,236,377

14,485,158

12,955,006

Gold -

Ounces produced

150,509

141,923

151,259

Payable ounces sold

138,709

132,442

141,602

Lead -

Tons produced

56,130

52,515

40,347

Payable tons sold

48,727

44,795

35,429

Zinc -

Tons produced

68,558

66,308

60,579

Payable tons sold

47,553

47,593

43,050

Copper -

Tons produced

1,804

1,874

1,823

Payable tons sold

337

50

—

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 our products versus the portion of those metals actually paid for by our customers pursuant to of our sales contract terms. 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 units for 2025, 2024 and 2023 were as follows (in thousands, except for Cash Cost and AISC):

Silver

Gold

Greens Creek

Lucky Friday

Keno Hill

Total Silver (2)

Casa Berardi

Other (3)

Total Gold and other

2025:

Sales

$

612,827

$

306,640

$

145,317

$

1,064,784

$

319,117

$

39,118

$

358,235

Total cost of sales

(290,180

)

(173,690

)

(91,652

)

(555,522

)

(206,720

)

(38,574

)

(245,294

)

Gross profit

$

322,647

$

132,950

$

53,665

$

509,262

$

112,397

$

544

$

112,941

Cash Cost, After By-product Credits, per Silver or Gold Ounce (1)

$

(8.02

)

$

8.66

$

(1.75

)

$

1,851

$

1,851

AISC, After By-product Credits, per Silver or Gold Ounce (1)

$

(2.36

)

$

21.98

$

11.28

$

2,029

$

2,029

2024:

Sales

$

421,574

$

203,154

$

74,962

$

699,690

$

209,679

$

20,556

$

230,235

Total cost of sales

(268,127

)

(144,485

)

(74,962

)

(487,574

)

(223,614

)

(20,527

)

(244,141

)

Gross profit (loss)

$

153,447

$

58,669

$

—

$

212,116

$

(13,935

)

$

29

$

(13,906

)

Cash Cost, After By-product Credits, per Silver or Gold Ounce (1)

$

(0.05

)

$

7.80

$

2.72

$

1,762

$

1,762

AISC, After By-product Credits, per Silver or Gold Ounce (1)

$

5.65

$

16.50

13.06

$

1,990

$

1,990

2023:

Sales

$

384,504

$

116,284

$

35,518

$

536,306

$

177,678

$

6,243

$

183,921

Total cost of sales

(259,895

)

(84,185

)

(35,518

)

(379,598

)

(221,341

)

(6,339

)

(227,680

)

Gross profit (loss)

$

124,609

$

32,099

$

—

$

156,708

$

(43,663

)

$

(96

)

$

(43,759

)

Cash Cost, After By-product Credits, per Silver or Gold Ounce (1)

$

2.53

$

5.51

$

3.23

$

1,652

$

1,652

AISC, After By-product Credits, per Silver or Gold Ounce (1)

$

7.14

$

12.21

$

11.76

$

2,048

$

2,048

(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, sustaining capital and production, and related costs and sustaining capital expenditures for Lucky Friday excluding costs incurred during suspension of production from August 2023 until the resumption of operations on January 9, 2024.

67

(3)
Other includes $39.1 million, $20.6 million and $6.2 million of sales for 2025, 2024 and 2023, respectively, and $38.6 million, $20.5 million and $6.3 million for, 2025, 2024 and 2023, respectively, related to ERDC, the Company's environmental services business.

While revenue from zinc, lead 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, and 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 from Greens Creek and Keno Hill only 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. 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;

•
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 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, it's 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.

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. In addition, we do not receive sufficient revenue from silver at the Casa Berardi 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.

68

For the year ended December 31, 2025 and 2024, we reported net income applicable to common stockholders of $321.2 million and $35.3 million, respectively, and a net loss of $84.8 million in 2023. The following factors contributed to those differences:

•
Variances in gross profit (loss) at our operations as illustrated in the table above. See the Greens Creek, Lucky Friday, Keno Hill, and Casa Berardi sections below.

•
General and administrative costs were $57.6 million, $45.4 million and $42.7 million in 2025, 2024 and 2023 respectively. The increase in 2025 of $12.2 million reflects strategic headcount increases, higher stock-based and incentive compensation expense and non-recurring compensation costs related to former employees retirements. The increase in 2024 of $2.7 million reflects non-recurring costs associated with the former CEO's retirement.

•
Exploration and pre-development expense was $27.7 million, $27.3 million and $32.5 million in 2025, 2024 and 2023, respectively. In 2024 exploration and pre-development expense decreased by $5.2 million, compared to 2023, as exploration activities were focused primarily at Greens Creek and Keno Hill, with additional pre-development work at the Libby Exploration project.

•
Ramp-up and suspension costs for the years ended December 31, 2025, 2024 and 2023 are summarized in the table below (in thousands)

Year Ended December 31,

2025

2024

2023

Keno Hill

$

—

$

26,754

$

29,793

Lucky Friday

—

2,207

25,548

Nevada

11,885

12,304

16,549

Casa Berardi

—

—

2,228

San Sebastian

2,120

2,042

2,134

Total ramp-up and suspension costs

$

14,005

$

43,307

$

76,252

While ramping up an operation, costs incurred to generate revenue during the ramp up phase in excess of the revenue generated, are reclassified to ramp up and suspension costs on our statement of operations, which amounted to $26.8 million and $29.8 million in 2024 and 2023, respectively. Operations at Lucky Friday were suspended from August 2023 to January 9, 2024, due to a fire in the secondary egress. Costs incurred during this period amounted to $2.2 million and $25.5 million during 2024 and 2023, respectively. Casa Berardi incurred $2.2 million as operations were suspended for 20 days in June, 2023, due to Quebec wildfires. The costs incurred at San Sebastian and Nevada are holding costs as all operations at these sites were suspended during these periods.

•
Other operating expense was $0.2 million in 2025, compared to other operating income of $45.5 million and $1.4 million in 2024 and 2023, respectively. Within 2025 other operating expense of $0.2 million are $5.5 million of insurance proceeds relating to Casa Berardi. The income in 2024 is primarily related to the Lucky Friday business interruption insurance proceeds of $50 million related to the aforementioned fire.

•
In 2024 we recognized $14.6 million in write down of property, plant and equipment. Of this amount, $13.9 million related to the Lucky Friday remote vein miner machine for which (i) we no longer had a use following the success of the UCB mining method at Lucky Friday, (ii) we had been unsuccessful in locating a buyer, and (iii) the vendor advised us during the period that it would discontinue support for the program.

•
Fair value adjustments, net resulted in a gain of $12.5 million, loss of $2.2 million, and a gain of $2.9 million in 2025, 2024 and 2023, respectively. The components for each period are summarized in the following table (in thousands):

Year Ended December 31,

2025

2024

2023

(Loss) gain on derivative contracts

$

(39,445

)

$

(5,907

)

$

3,168

Unrealized gain (loss) on investments in equity securities

$

40,914

3,703

(243

)

Gain on disposition or exchange of investments

$

10,986

—

—

Total fair value adjustments, net

$

12,455

$

(2,204

)

$

2,925

•
Net foreign exchange loss of $5.8 million in 2025, compared to a gain of $7.6 million in 2024 and a loss of $3.8 million in 2023, respectively, on translation of non US our monetary assets and liabilities at Casa Berardi, Keno Hill and San Sebastian.

69

•
Interest expense of $41.6 million, $49.8 million and $43.3 million in 2025, 2024 and 2023, respectively. In 2025, interest expense has decreased due to lower debt balances following early redemption of $212 million of Senior Notes, full repayment of our IQ Notes, and a lower drawn balance on our revolving credit facility. In connection with the early redemption of the $212 million Senior Notes, we incurred a loss on extinguishment of $4.9 million, of which $3.8 million related to the call premium and $1.1 million related to the pro-rate expensing of deferred debt costs. In 2024, interest expense also included interest of $9.3 million on amounts drawn on our revolving credit facility.

•
Income and mining tax provision of $157.5 million, $30.4 million and $1.2 million in 2025, 2024, and 2023, respectively. Income and mining tax provision increased in 2025 due to higher taxable income generated by our US and Quebec operations.

Greens Creek

Dollars are in thousands (except per ounce and per ton amounts)

Years Ended December 31,

2025

2024

2023

Sales

$

612,827

$

421,574

$

384,504

Cost of sales and other direct production costs

(234,221

)

(214,677

)

(205,900

)

Depreciation, depletion and amortization

(55,959

)

(53,450

)

(53,995

)

Total cost of sales

(290,180

)

(268,127

)

(259,895

)

Gross profit

$

322,647

$

153,447

$

124,609

Tons of ore milled

871,659

895,318

914,796

Production:

Silver (ounces)

8,724,996

8,480,877

9,731,752

Gold (ounces)

59,349

55,275

60,896

Lead (tons)

18,213

18,320

19,578

Zinc (tons)

51,387

51,288

51,496

Copper (tons)

1,804

1,874

1,823

Payable metal quantities sold:

Silver (ounces)

7,375,295

7,331,502

8,493,040

Gold (ounces)

46,873

45,201

49,790

Lead (tons)

13,585

13,706

15,247

Zinc (tons)

35,957

36,725

36,042

Copper (tons)

337

50

—

Ore grades:

Silver ounces per ton

12.6

12.0

13.3

Gold ounces per ton

0.092

0.086

0.089

Lead percent

2.5

2.5

2.6

Zinc percent

6.6

6.4

6.4

Copper percent

0.3

0.3

0.3

Total production cost per ton

$

249.77

$

216.15

$

204.20

Cash Cost, After By-product Credits, per Silver Ounce (1)

$

(8.02

)

$

(0.05

)

$

2.53

AISC, After By-Product Credits, per Silver Ounce (1)

$

(2.36

)

$

5.65

$

7.14

Capital additions

$

54,617

$

47,795

$

43,542

(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). At Greens Creek, gold, zinc, lead and copper are considered to be by-products of our silver production, and the values of those metals therefore offset operating costs within our calculations of Cash Cost and AISC, After By-product Credits, per Silver Ounce.

Gross profit increased by $169.2 million to $322.6 million in 2025 from $153.4 million in 2024, due to higher realized prices for all metals sold (other than lead) and higher sales volumes, except for lead and zinc which drove record annual revenues, partially offset by higher production costs which were primarily attributable to higher labor, contractor costs and materials and consumables. See Item 1A. Risk Factors - Our profitability could be affected by inflation, including the prices of other commodities for a discussion of certain risks related to our operations profitability.

70

Gross profit increased by $28.8 million to $153.4 million in 2024 from $124.6 million in 2023, due to higher realized prices for all metals sold other than lead, partly offset by lower sales volumes for all metals, except zinc, and higher production costs which primarily consist of higher labor and contractor costs and higher equipment maintenance. See Item 1A. Risk Factors - Our profitability could be affected by inflation, including the prices of other commodities for a discussion of certain risks related to our operations profitability.

Capital additions increased by $6.8 million in 2025 to $54.6 million compared to 2024. Significant components of the 2025 capital additions were $17.9 million on mine and primary ore access development, $14.0 million on mine equipment, $7.7 million on surface equipment and infrastructure, $5.8 million on mill improvements and $4.0 million of definition drilling.

The chart below illustrates the factors contributing to the variances in Cash Cost, After By-product Credits, Per Silver Ounce for 2025 compared to 2024 and 2023:

The following table summarizes the components of Cash Cost, After By-product Credits, per Silver Ounce:

Years Ended December 31,

2025

2024

2023

Cash Cost, Before By-product Credits, per Silver Ounce

$

26.64

$

27.19

$

24.85

By-product credits per silver ounce

(34.66

)

(27.24

)

(22.32

)

Cash Cost, After By-product Credits, per Silver Ounce

$

(8.02

)

$

(0.05

)

$

2.53

The following table summarizes the components of AISC, After By-product Credits, per Silver Ounce:

Years Ended December 31,

2025

2024

2023

AISC, Before By-product Credits, per Silver Ounce

$

32.30

$

32.89

$

29.46

By-product credits per silver ounce

(34.66

)

(27.24

)

(22.32

)

AISC, After By-product Credits, per Silver Ounce

$

(2.36

)

$

5.65

$

7.14

The decrease in Cash Cost, After By-product Credits and AISC, After By-product Credits per Silver Ounce in 2025 compared to 2024 was primarily due to higher by-product credits, primarily due to higher realized gold prices and higher silver production. The decrease in Cash Cost, After By-product Credits, per Silver Ounce in 2024 compared to 2023 was primarily due to higher by-product credits, primarily due to higher realized gold prices, partly offset by lower silver production due to 7 days of unplanned maintenance on

71

the Semi-Autogenous Grinding ("SAG") mill variable frequency drive and lower grade material mined and higher production costs primarily related to higher labor and contractor costs driven by inflation and higher equipment maintenance costs. AISC, After By-product Credits, decreased due to lower cash costs per ounce, partly offset by higher sustaining capital expenditures in 2024 compared to 2023.

Lucky Friday

Dollars are in thousands (except per ounce and per ton amounts)

Years Ended December 31,

2025

2024

2023

Sales

$

306,640

$

203,154

$

116,284

Cost of sales and other direct production costs

(122,635

)

(103,436

)

(59,860

)

Depreciation, depletion and amortization

(51,055

)

(41,049

)

(24,325

)

Total cost of sales

(173,690

)

(144,485

)

(84,185

)

Gross profit

$

132,950

$

58,669

$

32,099

Tons of ore milled

427,048

406,541

231,129

Production:

Silver (ounces)

5,260,686

4,890,949

3,086,119

Lead (tons)

34,284

31,265

19,543

Zinc (tons)

14,924

13,513

7,944

Payable metal quantities sold:

Silver (ounces)

4,925,162

4,506,632

3,020,116

Lead (tons)

31,828

28,577

19,079

Zinc (tons)

11,596

9,735

6,160

Ore grades:

Silver ounces per ton

13.0

12.7

14.0

Lead percent

8.5

8.2

8.9

Zinc percent

4.1

3.9

4.1

Total production cost per ton

$

272.09

$

245.19

$

218.45

Cash Cost, After By-product Credits, per Silver Ounce (1)

$

8.66

$

7.80

$

5.51

AISC, After By-product Credits, per Silver Ounce (1)

$

21.98

$

16.50

$

12.21

Capital additions

$

72,933

$

49,592

$

65,337

(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). At Lucky Friday, lead and zinc are considered to be by-products of our silver production, and the values of those metals therefore offset operating costs within our calculations of Cash Cost and AISC, each After By-product Credits, per Silver Ounce.

Gross profit in 2025 of $133.0 million, was $74.3 million higher than 2024, primarily due to higher realized prices for silver, and higher sales volumes for all metals produced driven by record production and the suspension of mining operations mentioned above. However, the benefit of higher production and prices has been partly offset by higher costs, reflected in higher production costs per ton which have increased by 11%. For the year, the higher costs relate to: (i) hourly employee profit sharing costs due to higher silver prices and production; (ii) property and liability insurance resulting from higher asset values and coverage limits; (iii) higher employee medical costs related to headcount growth and inflation in medical care costs; (iv) consumables and repairs to support increased production; (v) an increase in mine hourly headcount to reduce reliance on more expensive contractors and support higher production; (vi) higher equipment maintenance costs related to parts as the mine continued to execute our equipment maintenance standards while supporting increased tonnage; and (vii) higher waste rock removal haulage costs.

While certain cost elements will persist as the mine maintains steady and consistent production, we have identified potential cost mitigation plans. These plans include further reduction of contractors, mining method optimization to improve production efficiency and reduction of consumables usage, mine and mill infrastructure upgrades to increase production and reduce maintenance, and consolidation of sourcing of some high-volume consumables to improve pricing. However, there can be no assurance these efforts will be successful in reducing costs or offsetting the potential future impacts of inflation or other factors impacting profitability.

During August 2023, the production at the mine was suspended due to a fire that occurred while repairing an unused station in the #2 ventilation shaft. It was determined that a secondary egress needed to be developed and as a result, the mine did not restart

72

production until January 9, 2024, and ramped up to full production during the first quarter. The Company had property and business interruption insurance coverage with an underground sub-limit of $50.0 million, and received the full coverage amount of $50.0 million in 2024. The discussion of Lucky Friday's results below for the years ended December 31, 2024 and 2023 has been impacted by this prior suspension of operations.

Gross profit in 2024 of $58.7 million, was $26.6 million higher than 2023, primarily due to higher realized prices for silver, and higher sales volumes for all metals produced due to the suspension of mining operations mentioned above. For the year ended December 31, 2024, $2.2 million of site specific suspension costs were included within Ramp-up and suspension costs on our consolidated statements of operations and comprehensive income (loss), compared to $25.5 million in 2023.

Total capital additions increased by $23.3 million in 2025 to $72.9 million compared to 2024 due to significant projects including $24.5 million for development, $12.1 million for surface cooling project, $11.7 million for pond 5 construction, $6.8 million for definition drilling, $4.4 million for shaft renovation, $2.1 million for bolters, $1.9 million for ramp work and $1.5 million for jumbo replacements.

The chart below illustrates the factors contributing to the variances in Cash Cost, After By-product Credits, Per Silver Ounce for 2025, 2024 and 2023.

The following table summarizes the components of Cash Cost, After By-product Credits, per Silver Ounce:

Years Ended December 31,

2025

2024

2023

Cash Cost, Before By-product Credits, per Silver Ounce

$

25.00

$

24.48

21.45

By-product credits per silver ounce

(16.34

)

(16.68

)

(15.94

)

Cash Cost, After By-product Credits, per Silver Ounce

$

8.66

$

7.80

$

5.51

The following table summarizes the components of AISC, After By-product Credits, per Silver Ounce:

Years Ended December 31,

2025

2024

2023

AISC, Before By-product Credits, per Silver Ounce

$

38.32

$

33.18

$

28.15

By-product credits per silver ounce

(16.34

)

(16.68

)

(15.94

)

AISC, After By-product Credits, per Silver Ounce

$

21.98

$

16.50

$

12.21

73

The increase in Cash Cost and AISC, each After By-product Credits, per Silver Ounce in 2025 compared to 2024 was due to higher production costs, and higher sustaining capital for AISC, partly offset by higher silver production.

The increase in Cash Cost and AISC, each After By-product Credits, per Silver Ounce in 2024 compared to 2023 was due to higher production costs, and higher sustaining capital for AISC, partly offset by higher silver production and higher by-product credits.

Keno Hill

Dollars are in thousands (except per ounce and per ton amounts)

Year Ended

December 31,

2025

2024

2023

Sales

$

145,317

$

74,962

$

35,518

Cost of sales and other direct production costs

(71,883

)

(58,826

)

(31,241

)

Depreciation, depletion and amortization

(19,769

)

(16,136

)

(4,277

)

Total cost of sales

(91,652

)

(74,962

)

(35,518

)

Gross profit

$

53,665

$

—

$

—

Tons of ore milled

108,339

109,292

56,331

Production:

Silver (ounces)

3,018,490

2,773,873

1,502,577

Lead (tons)

3,633

2,930

1,225

Zinc (tons)

2,247

1,507

1,139

Payable metal quantities sold:

Silver (ounces)

2,925,368

2,623,469

1,419,173

Lead (tons)

3,314

2,513

848

Zinc (tons)

1,696

1,132

1,102

Ore grades:

Silver ounces per ton

29.0

26.2

27.7

Lead percent

3.6

%

2.8

%

2.3

%

Zinc percent

2.6

%

1.6

%

2.5

%

Capital additions

$

58,192

$

54,869

$

44,672

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 year ended December 31, 2025, was 297 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. In 2025, the mill relied on existing ore stockpiles as the mine continues to focus on development and ramp up to higher tonnage rates with mining rates of 297 tons per day, with material sourced from both the Bermingham and Flame and Moth deposits. Mill throughput, while currently steady, has been negatively impacted by last year's events as described below.

During the twelve months ended December 31, 2025 and 2024, Keno Hill recorded sales of $145.3 million and $75.0 million, respectively, with the increase due primarily to higher metals sales volumes and realized prices. As a result of higher revenues, Keno Hill generated gross profit of $53.7 million during the twelve months ended December 31, 2025, and did not transfer any total cost of sales to ramp-up and suspension costs, whereas in 2024, total cost of sales in excess of sales of $26.8 million were reclassified to ramp-up and suspension costs in the Condensed Consolidated Statements of Operations and Comprehensive Income. During 2025, Keno Hill recorded capital additions of $58.2 million, of which $32.8 million related to mine development, $6.7 million for a backfill plant, $5.2 million related to the dry stack tailings facility ("DSTF"), $4.6 million for surface and general plant additions and $1.4 million for definition drilling. During 2024, Capital additions were $54.9 million, of which $28.1 million related to mine development, $8.8 million related to the DSTF, $5.9 million related to mine mobile equipment, $3.2 million for camp upgrades and $2.9 million for the surface backfill plant.

During 2023, Keno Hill recorded sales and total cost of sales of $35.5 million, related to the concentrate produced and sold during ramp up. During the year ended December 31, 2023, $29.8 million of site specific ramp up costs were included within Ramp-up and suspension costs and $4.7 million of site specific exploration costs were included within Exploration and pre-development as reported

74

on our consolidated statements of operations and comprehensive (loss) income. Capital additions were $44.7 million, of which $29.6 million related to mine development and $11.3 million to mobile equipment purchases, crusher modifications and camp upgrades.

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 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 sustained, 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 that we were forced to suspend milling operations at Keno Hill between August 27 and October 26, 2024 due to delays in receiving authorizations and permits because the focus of the Yukon Government 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 resumed during the fourth quarter of 2024. Our original planned schedule for permitting and projects has been extended, but we are taking steps, including working with regulators, to establish a viable schedule for our operational plans.

An ongoing impact of the Eagle Mine incident is the FNNND's public position on mining, which has evolved from a call to halt all mining activity to support of environmentally responsible mining practices. We continue to strengthen our partnership with the FNNND - which is important because Keno Hill is within their Traditional Territory - through enhanced environmental stewardship and community engagement initiatives, building on their support for responsible mining practices.

Then, starting in late October 2024, Keno Hill began experiencing power curtailments when the utility, Yukon Energy, experienced a turbine failure at its Aishihik 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. These power constraints impacted approximately 130,000 ounces of silver production and labor costs for idled employees of approximately $0.5 million in 2025. During December 2025, due to extreme cold weather, Yukon Energy again curtailed power supply to us for 16 days, which continued through December 30, 2025.

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 and discharge, camp space and reliable power, all of which are typical requirements for mines in the expansion phase. These projects require new or modified permits, as well as the capital to implement them. Although we continue to make progress on these ordinary-course permitting matters, we have yet to make up for the delays described above. In addition, as we develop new zones for ore production at Keno Hill (and our other mines), we are frequently confronted with challenging conditions such as rock quality and ground water volumes. Currently, we are developing new headings at Keno Hill to supplement existing, or replace mined out headings. At some of these new headings, we are encountering more groundwater than expected. The mine's water license has limits on the amount of water that can be discharged from the mine. Although we currently are within permitted water discharge limits, if production from these new zones would cause water discharges greater than the license allows we will need to make alternative arrangements, which likely includes seeking an amendment to our current water license. There can be no assurances that the Yukon Water Board will grant such an amendment. If we confirm that continued mining in these new zones would lead to discharges in excess of license limits and are unable to amend our license in a timely manner, our options would then include developing a different operating plan to reduce discharges and/or curtailing production to remain within existing permitted discharge limits. Although we consider it unlikely, if none of these potential solutions is achieved, it is possible we would consider pausing production and other mining activities at the impacted areas and reassess our permitting strategy and other future operational aspects of the mine. See the Item 1A. Risk Factors - "We are required to obtain governmental permits and other approvals in order to conduct mining operations."

We also continue to face operational challenges such as work force availability, dilution, execution of projects, limited camp space, and the ramp-up of ERDC environmental remediation activities (which adds incremental demand on Keno Hill's infrastructure and resources, most notably camp space). As a result, we project 2026 silver production to be comparable to 2025 levels. The projected flat production levels at Keno Hill for 2026 should allow us to focus on (i) permitting, (ii) stakeholder outreach and ensuring we have local support, (iii) projects such as tailings storage expansion and the construction of a cemented tails batch plant, (iv) mine development and (v) meeting the above-mentioned operational challenges.

As stated above, Keno Hill has generated profits 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 sustained, positive free cash flow, while preserving expansion optionality beyond 440 tons per day. However, 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). To reach 440 tons per day throughput, we would need to continue to mine ore from both the Bermingham deposit and the lower grade Flame & Moth deposit. Achieving 440 or higher tons per day would require targeted infrastructure investments, obtaining permits, executing projects, mine development and

75

maintaining social license to operate. If any one of these were not to occur, or if prices were to decrease from our current budgeted 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 Factor - 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)

Years Ended December 31,

2025

2024

2023

Sales

$

319,117

$

209,679

$

177,678

Cost of sales and other direct production costs

(173,486

)

(150,779

)

(155,304

)

Depreciation, depletion and amortization

(33,234

)

(72,835

)

(66,037

)

Total cost of sales

(206,720

)

(223,614

)

(221,341

)

Gross profit (loss)

$

112,397

$

(13,935

)

$

(43,663

)

Tons of ore milled

1,533,800

1,523,420

1,446,488

Production:

Gold (ounces)

91,160

86,648

90,363

Silver (ounces)

22,613

24,231

22,415

Payable metal quantities sold:

Gold (ounces)

91,836

87,242

91,268

Silver (ounces)

22,456

23,554

22,566

Ore grades:

Gold ounces per ton

0.068

0.067

0.073

Silver ounces per ton

0.02

0.02

0.02

Total production cost per ton

$

110.46

$

100.58

$

104.75

Cash Cost, After By-product Credits, per Gold Ounce (1)

$

1,851

$

1,762

$

1,652

AISC, After By-product Credits, per Gold Ounce (1)

$

2,029

$

1,990

$

2,048

Capital additions

$

61,514

$

60,704

$

70,056

(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). At Casa Berardi, silver is considered to be a by-product of our gold production, and the value of silver therefore offsets operating costs within our calculations of Cash Cost and AISC, each After By-product Credits, per Gold Ounce.

Since late 2024, as underground mining neared completion before transitioning to production coming only from the 160 open pit, we conducted a strategic review of Casa Berardi's role within our operating mine portfolio. This review coincided with a significant increase in gold prices and created opportunities to revise our plans for Casa Berardi, including extending underground mining throughout 2025, which resulted in higher gold production in 2025 compared to 2024. However, severe weather conditions in December 2025 froze the mill feeder system, negatively impacting production during late December and into January 2026.

On January 26, 2026, we announced the sale of our Hecla Quebec Inc. subsidiary which owns the Casa Berardi segment to Orezone. For a description of the material terms of the sale see "Recent Developments" above.

Gross profit increased by $126.3 million to $112.4 million in 2025 compared to a gross loss of $13.9 million in 2024. The increase in gross profit primarily relates to significantly higher realized gold prices in addition to higher gold sales volumes. For 2025, gross profit also benefited from lower depreciation expense resulting from the west underground mine being fully depreciated in 2024, partly offset by higher production costs. See Item 1A. Risk Factors - Our profitability could be affected by inflation, including the prices of other commodities for a discussion of certain risks related to our operation's profitability.

Gross loss decreased by $29.7 million to $13.9 million in 2024 compared to $43.7 million in 2023. The decrease in gross loss primarily relates to an increase in realized gold prices, partly offset by lower gold sales volumes. For 2024, the benefit of lower production costs due to the closure of the east mine in July 2023, was largely offset by increased depreciation expense from the accelerated amortization of the west underground mine in the first half of 2024. See Item 1A. Risk Factors - Our profitability could be affected by inflation, including the prices of other commodities for a discussion of certain risks related to our operation's profitability.

76

In 2025, total capital additions increased by $0.8 million to $61.5 million compared to 2024, and in the current year primarily related to tailings facility construction. Total capital additions decreased by $9.4 million in 2024 compared to 2023 as the prior year contained a significant amount of purchases of new surface fleet equipment as the mine transitioned from an underground to an open pit operation. The majority of 2024 capital expenditures consisted of tailings dam construction costs.

The chart below illustrates the factors contributing to Cash Cost, After By-product Credits, Per Gold Ounce for 2025, 2024 and 2023:

The following table summarizes the components of Cash Cost, After By-product Credits, per Gold Ounce:

Years Ended December 31,

2025

2024

2023

Cash Cost, Before By-product Credits, per Gold Ounce

$

1,861

$

1,770

$

1,658

By-product credits per gold ounce

(10

)

(8

)

(6

)

Cash Cost, After By-product Credits, per Gold Ounce

$

1,851

$

1,762

$

1,652

The following table summarizes the components of AISC, After By-product Credits, per Gold Ounce:

Years Ended December 31,

2025

2024

2023

AISC, Before By-product Credits, per Gold Ounce

$

2,039

$

1,998

$

2,054

By-product credits per gold ounce

(10

)

(8

)

(6

)

AISC, After By-product Credits, per Gold Ounce

$

2,029

$

1,990

$

2,048

The increase in Cash Cost, After By-product Credits, per Gold Ounce and AISC, After By-product Credits, per Gold Ounce for 2025 compared to 2024 was primarily driven by higher production costs, partly offset by higher gold production. For 2024, Cash Cost, After By-product Credits, per Gold Ounce was higher primarily due to lower production compared to 2023. The increase in AISC, After By-product Credits, per Gold Ounce for 2025 compared to 2024 was partly offset by sustaining capital expenditures that were $4.0 million lower than 2024.

77

Corporate Matters

Employee Benefit Plans

Our defined benefit pension plans, while providing a significant benefit to our employees, have historically represented a significant liability to us. At December 31, 2025, our plans are in an underfunded status of $0.1 million. We do not expect to be required to contribute to our defined benefit plans in 2026, but we may choose to do so. See Note 6 of Notes to Consolidated Financial Statements for more information. We periodically examine the defined benefit pension plans and supplemental excess retirement plan for affordability and competitiveness.

Income and Mining Taxes

Our deferred tax assets and liabilities are measured at the currently enacted tax rates that are expected to apply in years in which they are expected to be paid for or realized. Each reporting period we assess the realizability of our tax assets. In assessing the need for a valuation allowance, we evaluate all significant available positive and negative evidence, including historical operating results, estimates of future sources of taxable income, carry-forward periods available, the existence of prudent and feasible tax planning strategies and other relevant factors.

Our organizational structure requires us to have two U.S. tax groups that do not consolidate. One of those U.S. tax groups is Hecla Mining Company and subsidiaries (“Hecla U.S. Group”) which has a net deferred tax liability of $117.2 million at December 31, 2025 compared to a net deferred tax liability of $21.7 million at December 31, 2024. The increase of $95.5 million is primarily related to taxable income and the utilization of net operating losses carried forward from prior periods as well as the election of bonus depreciation and other accelerated tax deductions.

Klondex Mines Ltd (“Klondex”) is the other separate U.S. tax group (“Nevada U.S. Group”) that has a net deferred tax liability of $30.6 million and $30.8 million at December 31, 2025 and 2024, respectively.

Our net Canadian deferred tax liability at December 31, 2025 was $98.6 million, an increase of $40.8 million from the $57.8 million net deferred tax liability at December 31, 2024. The increase was due to higher Canadian taxable income.

Our Mexican net deferred tax asset at December 31, 2025 remains at zero with no change from December 31, 2024. The valuation allowance increased to $13.7 million.

As a result of the Tax Cuts and Jobs Act (“TCJA”) enacted in December 2017, under Internal Revenue Code Section 174, a requirement to capitalize and amortize research and experimental expenditures for tax years beginning after December 31, 2021 is now effective. This modification has not had a material impact.

As discussed in Note 7 of Notes to Consolidated Financial Statements, our effective tax rate for 2025 was 33%, reflecting a tax expense of $157.5 million on pre-tax income of $479.2 million, compared to 46% for 2024, reflecting a tax expense of $30.4 million on pre-tax income of $66.2 million. We are subject to income taxes in the United States and other foreign jurisdictions. The overall effective tax rate will continue to be dependent upon the geographic distribution of our earnings in different jurisdictions, the U.S. deduction for percentage depletion, fluctuation in foreign currency exchange rates and deferred tax asset valuation allowance changes. As a result, the 2025 effective tax rate varies significantly from that of 2024. The other relevant provisions of the TCJA that became effective in 2018 consist of global intangible low-taxed income tax ("GILTI"), base erosion and anti-abuse tax ("BEAT") and foreign-derived intangible income ("FDII"). Hecla U.S. Group recorded a current expense for GILTI in 2025 due to earning in foreign jurisdictions. The BEAT and FDII provisions have not had a material impact.

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 years ended December 31, 2025, 2024 and 2023.

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.

78

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.

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

79

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)

Year Ended December 31, 2025

Greens Creek

Lucky Friday

Keno Hill

Corporate(2)

Total Silver

Total cost of sales

$

290,180

$

173,690

$

91,652

$

—

$

555,522

Depreciation, depletion and amortization

(55,959

)

(51,055

)

(19,769

)

—

(126,783

)

Treatment costs

948

9,734

—

—

10,682

Change in product inventory

(1,258

)

(6

)

—

—

(1,264

)

Reclamation and other costs

(1,502

)

(857

)

—

—

(2,359

)

Exclusion of Keno Hill cash costs (5)

—

—

(71,883

)

—

(71,883

)

Cash Cost, Before By-product Credits (1)

232,409

131,506

—

—

363,915

Reclamation

3,029

780

—

—

3,809

Sustaining capital

46,362

69,316

—

5,165

120,843

General and administrative

—

—

—

57,626

57,626

AISC, Before By-product Credits (1)

281,800

201,602

—

62,791

546,193

By-product credits:

Zinc

(93,495

)

(28,939

)

—

—

(122,434

)

Gold

(180,497

)

—

—

—

(180,497

)

Lead

(24,963

)

(57,036

)

—

—

(81,999

)

Copper

(3,465

)

—

—

—

(3,465

)

Total By-product credits

(302,420

)

(85,975

)

—

—

(388,395

)

Cash Cost, After By-product Credits

$

(70,011

)

$

45,531

$

—

$

—

$

(24,480

)

AISC, After By-product Credits

$

(20,620

)

$

115,627

$

—

$

62,791

$

157,798

Divided by silver ounces produced

8,725

5,261

13,986

Cash Cost, Before By-product Credits, per Silver Ounce

$

26.64

$

25.00

$

26.02

By-product credits per ounce

(34.66

)

(16.34

)

(27.77

)

Cash Cost, After By-product Credits, per Silver Ounce

$

(8.02

)

$

8.66

$

(1.75

)

AISC, Before By-product Credits, per Silver Ounce

$

32.30

$

38.32

$

39.05

By-product credits per ounce

(34.66

)

(16.34

)

(27.77

)

AISC, After By-product Credits, per Silver Ounce

$

(2.36

)

$

21.98

$

11.28

80

In thousands (except per ounce amounts)

Year Ended December 31, 2025

Casa Berardi

Other(4)

Total Gold and Other

Total cost of sales

$

206,720

$

38,574

$

245,294

Depreciation, depletion and amortization

(33,234

)

—

(33,234

)

Treatment costs

169

—

169

Change in product inventory

(2,774

)

—

(2,774

)

Reclamation and other costs

(1,283

)

—

(1,283

)

Exclusion of Other costs

—

(38,574

)

(38,574

)

Cash Cost, Before By-product Credits (1)

169,598

—

169,598

Reclamation and other costs

1,283

—

1,283

Sustaining capital

14,995

—

14,995

AISC, Before By-product Credits (1)

185,876

—

185,876

By-product credits:

Silver

(888

)

—

(888

)

Total By-product credits

(888

)

—

(888

)

Cash Cost, After By-product Credits

$

168,710

$

—

$

168,710

AISC, After By-product Credits

$

184,988

$

—

$

184,988

Divided by gold ounces produced

91

91

Cash Cost, Before By-product Credits, per Gold Ounce

$

1,861

$

—

$

1,861

By-product credits per ounce

(10

)

—

(10

)

Cash Cost, After By-product Credits, per Gold Ounce

$

1,851

$

—

$

1,851

AISC, Before By-product Credits, per Gold Ounce

$

2,039

$

2,039

By-product credits per ounce

(10

)

—

(10

)

AISC, After By-product Credits, per Gold Ounce

$

2,029

$

—

$

2,029

81

In thousands (except per ounce amounts)

Year Ended December 31, 2025

Total Silver

Total Gold and Other

Total

Total cost of sales

$

555,522

$

245,294

$

800,816

Depreciation, depletion and amortization

(126,783

)

(33,234

)

(160,017

)

Treatment costs

10,682

169

10,851

Change in product inventory

(1,264

)

(2,774

)

(4,038

)

Reclamation and other costs

(2,359

)

(1,283

)

(3,642

)

Exclusion of Keno Hill cash costs (5)

(71,883

)

—

(71,883

)

Exclusion of Other costs

—

(38,574

)

(38,574

)

Cash Cost, Before By-product Credits (1)

363,915

169,598

533,513

Reclamation and other costs

3,809

1,283

5,092

Sustaining capital

120,843

14,995

135,838

General and administrative

57,626

—

57,626

AISC, Before By-product Credits (1)

546,193

185,876

732,069

By-product credits:

Zinc

(122,434

)

—

(122,434

)

Gold

(180,497

)

—

(180,497

)

Lead

(81,999

)

—

(81,999

)

Copper

(3,465

)

—

(3,465

)

Silver

—

(888

)

(888

)

Total By-product credits

(388,395

)

(888

)

(389,283

)

Cash Cost, After By-product Credits

$

(24,480

)

$

168,710

$

144,230

AISC, After By-product Credits

$

157,798

$

184,988

$

342,786

Divided by ounces produced

13,986

91

Cash Cost, Before By-product Credits, per Ounce

$

26.02

$

1,861

By-product credits per ounce

(27.77

)

(10

)

Cash Cost, After By-product Credits, per Ounce

$

(1.75

)

$

1,851

AISC, Before By-product Credits, per Ounce

$

39.05

$

2,039

By-product credits per ounce

(27.77

)

(10

)

AISC, After By-product Credits, per Ounce

$

11.28

$

2,029

82

In thousands (except per ounce amounts)

Year Ended December 31, 2024

Greens Creek

Lucky Friday

Keno Hill

Corporate(2)

Total Silver

Total cost of sales

$

268,127

$

144,485

$

74,962

$

—

$

487,574

Depreciation, depletion and amortization

(53,450

)

(41,049

)

(16,136

)

—

(110,635

)

Treatment costs

26,266

14,456

—

—

40,722

Change in product inventory

(5,858

)

2,090

—

—

(3,768

)

Reclamation and other costs

(4,481

)

(2,806

)

—

—

(7,287

)

Exclusion of Lucky Friday cash costs (7)

—

(3,634

)

—

—

(3,634

)

Exclusion of Keno Hill cash costs (5)

—

—

(58,826

)

—

(58,826

)

Cash Cost, Before By-product Credits (1)

230,604

113,542

—

—

344,146

Reclamation

3,141

891

—

—

4,032

Sustaining capital

45,214

44,864

—

1,532

91,610

Exclusion of Lucky Friday sustaining costs (7)

—

(5,396

)

—

—

(5,396

)

General and administrative

—

—

—

45,405

45,405

AISC, Before By-product Credits (1)

278,959

153,901

—

46,937

479,797

By-product credits:

Zinc

(89,088

)

(26,244

)

—

—

(115,332

)

Gold

(115,189

)

—

—

—

(115,189

)

Lead

(26,374

)

(55,042

)

—

—

(81,416

)

Copper

(409

)

—

—

—

(409

)

Exclusion of Lucky Friday by-product credits (7)

—

3,943

—

—

3,943

Total By-product credits

(231,060

)

(77,343

)

—

—

(308,403

)

Cash Cost, After By-product Credits

$

(456

)

$

36,199

$

—

$

—

$

35,743

AISC, After By-product Credits

$

47,899

$

76,558

$

—

$

46,937

$

171,394

Ounces produced

8,481

4,891

13,372

Exclusion of Lucky Friday ounces produced (7)

—

(253

)

(253

)

Divided by silver ounces produced

8,481

4,638

13,119

Cash Cost, Before By-product Credits, per Silver Ounce

$

27.19

$

24.48

$

26.23

By-product credits per ounce

(27.24

)

(16.68

)

(23.51

)

Cash Cost, After By-product Credits, per Silver Ounce

$

(0.05

)

$

7.80

$

2.72

AISC, Before By-product Credits, per Silver Ounce

$

32.89

$

33.18

$

36.57

By-product credits per ounce

(27.24

)

(16.68

)

(23.51

)

AISC, After By-product Credits, per Silver Ounce

$

5.65

$

16.50

$

13.06

83

In thousands (except per ounce amounts)

Year Ended December 31, 2024

Casa Berardi

Other(4)

Total Gold and Other

Total cost of sales

$

223,614

$

20,527

$

244,141

Depreciation, depletion and amortization

(72,835

)

—

(72,835

)

Treatment costs

153

—

153

Change in product inventory

3,269

—

3,269

Reclamation and other costs

(823

)

—

(823

)

Exclusion of Other costs

—

(20,527

)

(20,527

)

Cash Cost, Before By-product Credits (1)

153,378

—

153,378

Reclamation and other costs

823

—

823

Sustaining capital

18,963

—

18,963

AISC, Before By-product Credits (1)

173,164

—

173,164

By-product credits:

Silver

(683

)

—

(683

)

Total By-product credits

(683

)

—

(683

)

Cash Cost, After By-product Credits

$

152,695

$

—

$

152,695

AISC, After By-product Credits

$

172,481

$

—

$

172,481

Divided by gold ounces produced

87

87

Cash Cost, Before By-product Credits, per Gold Ounce

$

1,770

$

—

$

1,770

By-product credits per ounce

(8

)

—

(8

)

Cash Cost, After By-product Credits, per Gold Ounce

$

1,762

$

—

$

1,762

AISC, Before By-product Credits, per Gold Ounce

$

1,998

$

—

$

1,998

By-product credits per ounce

(8

)

—

(8

)

AISC, After By-product Credits, per Gold Ounce

$

1,990

$

—

$

1,990

84

In thousands (except per ounce amounts)

Year Ended December 31, 2024

Total Silver

Total Gold and Other

Total

Total cost of sales

$

487,574

$

244,141

$

731,715

Depreciation, depletion and amortization

(110,635

)

(72,835

)

(183,470

)

Treatment costs

40,722

153

40,875

Change in product inventory

(3,768

)

3,269

(499

)

Reclamation and other costs

(7,287

)

(823

)

(8,110

)

Exclusion of Lucky Friday cash costs (7)

(3,634

)

—

(3,634

)

Exclusion of Keno Hill cash costs (5)

(58,826

)

—

(58,826

)

Exclusion of Other costs

—

(20,527

)

(20,527

)

Cash Cost, Before By-product Credits (1)

344,146

153,378

497,524

Reclamation and other costs

4,032

823

4,855

Sustaining capital

91,610

18,963

110,573

Exclusion of Lucky Friday sustaining costs (7)

(5,396

)

—

(5,396

)

General and administrative

45,405

—

45,405

AISC, Before By-product Credits (1)

479,797

173,164

652,961

By-product credits:

Zinc

(115,332

)

—

(115,332

)

Gold

(115,189

)

—

(115,189

)

Lead

(81,416

)

—

(81,416

)

Copper

(409

)

—

(409

)

Silver

—

(683

)

(683

)

Exclusion of Lucky Friday by-product credits (7)

3,943

—

3,943

Total By-product credits

(308,403

)

(683

)

(309,086

)

Cash Cost, After By-product Credits

$

35,743

$

152,695

$

188,438

AISC, After By-product Credits

$

171,394

$

172,481

$

343,875

Divided by ounces produced

13,372

87

Exclusion of Lucky Friday ounces produced (7)

(253

)

—

Divided by silver ounces produced

13,119

87

Cash Cost, Before By-product Credits, per Ounce

$

26.23

$

1,770

By-product credits per ounce

(23.51

)

(8

)

Cash Cost, After By-product Credits, per Ounce

$

2.72

$

1,762

AISC, Before By-product Credits, per Ounce

$

36.57

$

1,998

By-product credits per ounce

(23.51

)

(8

)

AISC, After By-product Credits, per Ounce

$

13.06

$

1,990

85

In thousands (except per ounce amounts)

Year Ended December 31, 2023

Greens Creek

Lucky Friday

Keno Hill

Corporate(2)

Total Silver

Total cost of sales

$

259,895

$

84,185

$

35,518

$

—

$

379,598

Depreciation, depletion and amortization

(53,995

)

(24,325

)

(4,277

)

—

(82,597

)

Treatment costs

40,987

10,981

1,070

—

53,038

Change in product inventory

(4,266

)

(5,164

)

—

—

(9,430

)

Reclamation and other costs (5)

(748

)

(826

)

—

—

(1,574

)

Exclusion of Lucky Friday cash costs (7)

—

(851

)

—

—

(851

)

Exclusion of Keno Hill cash costs (5)

—

—

(32,311

)

—

(32,311

)

Cash Cost, Before By-product Credits (1)

241,873

64,000

—

—

305,873

Reclamation and other costs

2,889

671

—

—

3,560

Sustaining capital

41,935

39,019

—

928

81,882

Exclusion of Lucky Friday sustaining costs (7)

—

(19,702

)

—

—

(19,702

)

General and administrative (5)

—

—

—

42,722

42,722

AISC, Before By-product Credits (1)

286,697

83,988

—

43,650

414,335

By-product credits:

Zinc

(83,454

)

(14,507

)

—

—

(97,961

)

Gold

(104,507

)

—

—

—

(104,507

)

Lead

(29,284

)

(34,620

)

—

—

(63,904

)

Exclusion of Lucky Friday by-product credits (7)

—

1,566

—

—

1,566

Total By-product credits

(217,245

)

(47,561

)

—

(264,806

)

Cash Cost, After By-product Credits

$

24,628

$

16,439

$

—

$

41,067

AISC, After By-product Credits

$

69,452

$

36,427

$

43,650

$

149,529

Ounces produced

9,732

3,086

12,818

Exclusion of Lucky Friday ounces produced (7)

—

(103

)

(103

)

Divided by silver ounces produced

9,732

2,983

12,715

Cash Cost, Before By-product Credits, per Silver Ounce

$

24.85

$

21.45

$

24.06

By-product credits per ounce

(22.32

)

(15.94

)

(20.83

)

Cash Cost, After By-product Credits, per Silver Ounce

$

2.53

$

5.51

$

3.23

AISC, Before By-product Credits, per Silver Ounce

$

29.46

$

28.15

$

32.59

By-product credits per ounce

(22.32

)

(15.94

)

(20.83

)

AISC, After By-product Credits, per Silver Ounce

$

7.14

$

12.21

$

11.76

86

In thousands (except per ounce amounts)

Year Ended December 31, 2023

Casa Berardi

Other(4)

Total Gold and Other

Total cost of sales

$

221,341

$

6,339

$

227,680

Depreciation, depletion and amortization

(66,037

)

(140

)

(66,177

)

Treatment costs

1,109

—

1,109

Change in product inventory

(2,913

)

—

(2,913

)

Reclamation and other costs (5)

(871

)

—

(871

)

Exclusion of Casa Berardi cash costs (3)

(2,851

)

—

(2,851

)

Exclusion of Other costs

—

(6,199

)

(6,199

)

Cash Cost, Before By-product Credits (1)

149,778

—

149,778

Reclamation and other costs

871

—

871

Sustaining capital

34,971

—

34,971

AISC, Before By-product Credits (1)

185,620

—

185,620

By-product credits:

Silver

(522

)

—

(522

)

Total By-product credits

(522

)

—

(522

)

Cash Cost, After By-product Credits

$

149,256

$

—

$

149,256

AISC, After By-product Credits

$

185,098

$

—

$

185,098

Divided by gold ounces produced

90

—

90

Cash Cost, Before By-product Credits, per Gold Ounce

$

1,658

—

$

1,658

By-product credits per ounce

(6

)

—

(6

)

Cash Cost, After By-product Credits, per Gold Ounce

$

1,652

$

—

$

1,652

AISC, Before By-product Credits, per Gold Ounce

$

2,054

—

$

2,054

By-product credits per ounce

(6

)

—

(6

)

AISC, After By-product Credits, per Gold Ounce

$

2,048

$

—

$

2,048

87

In thousands (except per ounce amounts)

Year Ended December 31, 2023

Total Silver

Total Gold

Total

Total cost of sales

$

379,598

$

227,680

$

607,278

Depreciation, depletion and amortization

(82,597

)

(66,177

)

(148,774

)

Treatment costs

53,038

1,109

54,147

Change in product inventory

(9,430

)

(2,913

)

(12,343

)

Reclamation and other costs

(1,574

)

(871

)

(2,445

)

Exclusion of Casa Berardi cash costs (3)

—

(2,851

)

(2,851

)

Exclusion of Other costs

—

(6,199

)

(6,199

)

Exclusion of Lucky Friday cash costs (7)

(851

)

—

(851

)

Exclusion of Keno Hill cash costs (5)

(32,311

)

—

(32,311

)

Cash Cost, Before By-product Credits (1)

305,873

149,778

455,651

Reclamation and other costs

3,560

871

4,431

Sustaining capital

81,882

34,971

116,853

Exclusion of Lucky Friday sustaining costs (7)

(19,702

)

—

(19,702

)

General and administrative

42,722

—

42,722

AISC, Before By-product Credits (1)

414,335

185,620

599,955

By-product credits:

Zinc

(97,961

)

—

(97,961

)

Gold

(104,507

)

—

(104,507

)

Lead

(63,904

)

—

(63,904

)

Silver

—

(522

)

(522

)

Exclusion of Lucky Friday by-product credits (7)

1,566

—

1,566

Total By-product credits

(264,806

)

(522

)

(265,328

)

Cash Cost, After By-product Credits

$

41,067

$

149,256

$

190,323

AISC, After By-product Credits

$

149,529

$

185,098

$

334,627

Divided by ounces produced

12,818

90

Exclusion of Lucky Friday ounces produced (7)

(103

)

—

Divided by silver ounces produced

12,715

90

Cash Cost, Before By-product Credits, per Ounce

$

24.06

$

1,658

By-product credits per ounce

(20.83

)

(6

)

Cash Cost, After By-product Credits, per Ounce

$

3.23

$

1,652

AISC, Before By-product Credits, per Ounce

$

32.59

$

2,054

By-product credits per ounce

(20.83

)

(6

)

AISC, After By-product Credits, per Ounce

$

11.76

$

2,048

(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)
During the three months ended March 31, 2023, the Company completed the necessary studies to conclude usage of the F-160 pit as a tailings storage facility after mining is complete. As a result, a portion of the mining costs have been excluded from Cash Cost, Before By-product Credits and AISC, Before By-product Credits.

(4)
Other includes $38.6 million, $20.5 million and $6.3 million of total cost of sales for the years ended December 31, 2025, 2024, and 2023, respectively.

(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.

(6)
Casa Berardi operations were suspended in June 2023 in response to the directive of the Quebec Ministry of Natural Resources and Forests as a result of fires in the region. Suspension costs amounted to $2.2 million for the year ended December 31, 2023, and 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.

88

(7)
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, and AISC, Before By-product Credits, and AISC, After By-product Credits.

Financial Liquidity and Capital Resources

Liquidity overview

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, potential strategic investments, exploration and pre-development projects, while returning cash to stockholders through dividends and potential share repurchases.

At December 31, 2025, we had $241.6 million in cash and cash equivalents, of which $26.5 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 December 31, 2025, we had no amounts drawn on our credit facility with $6.7 million utilized for letters of credit. 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. See “Pending Sale of Casa Berardi” for more information about the consideration we anticipate receiving upon the consummation of our sale of Casa Berardi, which we anticipate using for debt reduction and balance sheet strengthening, enhancing our financial flexibility and capacity to invest in strategic growth investments, and positioning us to maximize value from our world-class silver portfolio.

Pursuant to our common stock dividend policy described in Note 12 of Notes to Consolidated Financial Statements, our Board of Directors declared and paid dividends on common stock totaling $10.4 million in 2025, $24.9 million in 2024 and $15.2 million in 2023. Until February 2025, our dividend policy had a silver-linked component which tied the amount of declared common stock dividends to our realized silver price for the preceding quarter (our dividend policy was recently revised, see discussion below). Another component of our common stock dividend policy, which remains in place, anticipates paying an annual minimum dividend. In 2024, we made the following dividend payments in relation to our minimum and silver-linked components.

Three months ended

Declaration Date

Realized Silver Price

Minimum Component

Silver-Linked Component

Total Dividend

March 31, 2024

May 8, 2024

$24.77

$0.00375

$0.0025

$0.00625

June 30, 2024

August 6, 2024

29.77

0.00375

0.0025

0.00625

September 30, 2024

November 6, 2024

29.43

0.00375

0.01

0.01375

December 31, 2024

February 7, 2025

30.19

0.00375

0.01

0.01375

In early February 2025, we revised our common stock dividend policy to eliminate the silver-linked component, while maintaining the annual common stock dividend. However the declaration and payment of dividends remain in the sole discretion of our Board of Directors, and there can be no assurance it will declare any future dividend.

As discussed in Note 12 of Notes to Consolidated Financial Statements, pursuant to an equity distribution agreement dated February 18, 2021, we may offer and sell up to 60 million shares of our common stock from time to time to or through sales agents in “at-the-market” (ATM) 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 agreement can be terminated by us at any time. Any sales of shares under the equity distribution agreement are registered under the Securities Act of 1933, as amended, pursuant to a shelf registration statement on Form S-3. During the year ended December 31, 2025, we sold 35,959,328 shares under the agreement for proceeds of $216.2 million, net of commissions and fees of approximately $3.3 million, which were used to redeem $212 million of our Senior Notes. As of December 31, 2025, we have sold a total of 59,802,012 shares under the agreement for proceeds of $348.5 million, net of commissions and fees of $5.4 million.

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 (refer to Note 9 of Notes to Consolidated Financial Statements), we believe we will be able to meet our obligations and other potential cash requirements during the next 12 months from the date of this report. Our obligations and other uses of cash may include, but are not limited to: debt service obligations related to the Senior Notes; principal and interest payments under our Credit Agreement; deferral of revenues, ramp-up and suspension costs at certain of our operations; capital expenditures at our operations; potential acquisitions of other mining companies or

89

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 $255 to $279 million will be spent in 2026 on capital expenditures, primarily for equipment, infrastructure, and development at our mines, before any lease financing. We also estimate exploration and pre-development expenditures will total approximately $55 million in 2026. Our expenditures for these items and our related plans for 2026 may change based upon our financial position, metals prices, and other considerations. Our ability to fund the activities described above will depend on our operating performance, metals prices, our ability to estimate revenues and costs, sources of liquidity available to us, including the revolving credit facility, and other factors. A sustained downturn in metals prices, significant increase in operational or capital costs or other uses of cash, our inability to access the credit facility or the sources of liquidity discussed above, or other factors beyond our control could impact our plans. See Item 1A. Risk Factors - An extended decline in metals prices, an increase in operating or capital costs, or treatment charges, mine accidents or closures, increasing regulatory obligations, or our inability to convert resources or exploration targets to reserves may cause us to record write-downs, which could negatively impact our results of operations.

We may defer some capital expenditures and/or exploration and pre-development activities, engage in asset sales or secure additional capital if necessary to maintain liquidity. We also may pursue additional acquisition opportunities, which could require additional equity issuances or other forms of financing. We cannot assure you that such financing will be available to us.

Our liquid assets excluding restricted cash and cash equivalents include (in millions):

December 31,

2025

December 31,

2024

December 31,

2023

Cash and cash equivalents held in U.S. dollars

$

215.1

$

24.5

$

98.8

Cash and cash equivalents held in foreign currency

26.5

2.4

7.6

Total cash and cash equivalents

241.6

26.9

106.4

Marketable equity securities

107.5

33.2

32.3

Total cash, cash equivalents and investments

$

349.1

$

60.1

$

138.7

Cash and cash equivalents increased by $214.7 million in 2025, for the reasons discussed below. Cash and cash equivalents held in foreign currencies primarily represents balances in CAD, and increased by $24.1 million in 2025. The value of marketable equity securities at the end of 2025 increased by $74.3 million due to an overall fair value increase.

Year Ended December 31,

2025

2024

2023

Cash provided by operating activities (in millions)

$

562.6

$

218.3

$

75.5

Cash provided by operating activities increased by $344.4 million in 2025 compared to 2024. The increase was due to higher income, adjusted for non-cash items, which increased by $372.0 million, partly offset by the negative impact of working capital and other operating asset and liability changes that increased by $27.7 million. Income, adjusted for non-cash items, was higher primarily due to higher revenues. Negative working capital adjustments, primarily related to an increase in accounts receivables reflecting the higher price environment and a concentrate shipment close to year end at Greens Creek contributed to the increased working capital of $27.8 million in 2025 compared to 2024.

Cash provided by operating activities increased by $142.8 million in 2024 compared to 2023. The increase was due to higher income, adjusted for non-cash items, which increased by $172.2 million, partly offset by the negative impact of working capital and other operating asset and liability changes. Income, adjusted for non-cash items, was higher due to higher realized prices for all metals, except lead, and higher volumes sold, except for gold. Higher volumes sold resulted from the current year containing a full year of production from Keno Hill and Lucky Friday (which had suspended operations for 5 months of the year due to the 2023 fire). Negative working capital and other operating asset and liability changes contributed to a decrease of working capital of $29.5 million in 2024 compared to 2023. Significant variances in working capital changes between 2024 and 2023 resulted from negative movements in accounts receivables as Lucky Friday operations were suspended at December 31, 2023.

Year Ended December 31,

2025

2024

2023

Cash used in investing activities (in millions)

$

(270.5

)

$

(212.9

)

$

(231.3

)

Capital expenditures were $252.4 million in 2025, which was $37.9 million higher than 2024, primarily due to pond 5 construction and development at Lucky Friday, and higher development at Keno Hill. We also purchased silver put options for $25.0 million to

90

protect gross margins for a significant part of our 2026 production. In addition, we collected $28.1 million from investment sales and purchased investments for $21.9 million.

Capital expenditures, excluding $5.6 million in net non-cash finance lease additions, were $214.5 million in 2024, which was $9.4 million lower than 2023, primarily due to the prior year containing costs related to Lucky Friday making investments to support sustained higher throughput and building the secondary egress following the August 2023 fire, partly offset by higher capital investments at Keno Hill.

Year Ended December 31,

2025

2024

2023

Cash (used in) provided by financing activities (in millions)

$

(78.0

)

$

(83.8

)

$

156.3

During 2025, we fully repaid our IQ Notes and we had net repayments of $23.0 million on our revolving credit facility resulting in no amount drawn as of December 31, 2025. We drew down a cumulative $279 million and repaid a cumulative $384 million, and drew down a cumulative $239 million and repaid a cumulative $111 million on our Credit Agreement during 2024 and 2023, respectively. In 2025, 2024 and 2023, we paid total cash dividends on our common and preferred stock of $10.4 million, $25.3 million and $15.7 million, respectively. We made payments on our finance leases of $8.7 million, $10.5 million, and $10.6 million in 2025, 2024, and 2023, respectively. We issued stock under our ATM program described above for net proceeds of $216.2 million (utilized to redeem $212 million of Senior Notes), $58.4 million and $56.7 million in 2025, 2024 and 2023, respectively. During 2025, 2024 and 2023, we also purchased shares of our common stock for $0.9 million, $1.2 million and $2.0 million, respectively, as a result of our employees' election to utilize net share settlement to satisfy their tax withholding obligations related to incentive compensation paid in stock and vesting of restricted stock units. See Note 12 of Notes to Consolidated Financial Statements for more information.

Exchange rate fluctuations between the U.S. dollar and the Canadian dollar and Mexican peso resulted in an increase in our cash balance of $0.5 million, a decrease of $1.1 million, and an increase of $1.1 million, during 2025, 2024 and 2023, respectively.

Contractual Obligations and Contingent Liabilities and Commitments

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

Payments Due By Period

Less than

1 year

2-3 years

4-5 years

After

5 years

Total

Purchase and contractual obligations (1)

$

29,686

$

—

$

—

$

—

$

29,686

Credit Agreement (2)

1,604

2,543

—

—

$

4,147

Finance lease commitments (3)

7,786

5,407

1,731

—

$

14,924

Operating lease commitments (4)

1,501

2,973

2,621

5,060

$

12,155

Senior Notes (5)

19,068

19,068

265,403

—

$

303,539

Total contractual cash obligations

$

59,645

$

29,991

$

269,755

$

5,060

$

364,451

(1)
Consists of open purchase orders and commitments of approximately $6.8 million, $7.1 million, $6.8 million, $8.5 million and $0.6 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 no amount drawn and $6.7 million in letters of credit outstanding as of December 31, 2025. The amounts in the table above assumes no additional amounts will be drawn in future periods, and includes only the standby fee on the current undrawn balance and accrued interest. For more information on our Credit Agreement, see Note 9 of Notes to Consolidated Financial Statements.

(3)
Includes scheduled finance lease payments of $0.8 million, $2.4 million, $9.2 million, and $2.5 million for equipment at Greens Creek, Lucky Friday, Casa Berardi, and Keno Hill, respectively. For more information, see Note 9 of Notes to Consolidated Financial Statements.

(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. For more information, see Note 9 of Notes to Consolidated Financial Statements.

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(5)
On February 19, 2020, we completed an offering of $475 million in aggregate principal amount of our Senior Notes. 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, commencing August 15, 2020, which were partially redeemed on August 18, 2025 for a redemption premium of $3.8 million. For more information, see Note 9 of Notes to Consolidated Financial Statements.

We record liabilities for estimated costs associated with mine closure, reclamation of land and other environmental matters. At December 31, 2025, our liabilities for these matters totaled $202.3 million. Future expenditures related to closure, reclamation and environmental expenditures at our other 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 5 of Notes to Consolidated Financial Statements and Item 1A. Risk Factors – Our environmental obligations may exceed the provisions we have made. As discussed in Note 16 of Notes to Consolidated Financial Statements, we are involved in various other legal proceedings which may result in obligations in excess of provisions we have made.

Critical Accounting Estimates

Our significant accounting policies are described in Note 2 of Notes to Consolidated Financial Statements. As described in such Note 2, we are required to make estimates and assumptions that affect the reported amounts and related disclosures of assets, liabilities, revenue, and expenses. Our estimates are based on our experience and our interpretation of economic, political, regulatory, and other factors that affect our business prospects. Actual results may differ significantly from our estimates.

We believe that our most critical accounting estimates are related to future metals prices; obligations for environmental, reclamation, and closure matters; mineral reserves and resources; valuation of deferred tax assets and assumptions used in accounting for our pension plans, as they require us to make assumptions that are highly uncertain at the time the accounting estimates are made and changes in them are reasonably likely to occur from period to period. Management has discussed the development and selection of these critical accounting estimates with the Audit Committee of our Board of Directors, and the Audit Committee has reviewed the disclosures presented below. In addition, there are other items within our financial statements that require estimation, but are not deemed to be critical. However, changes in estimates used in these and other items could have a material impact on our financial statements.

Future Metals Prices

Metals prices are key components in estimates that determine the valuation of some of our significant assets and liabilities, including properties, plants, equipment and mine development, deferred tax assets, and certain accounts receivable. Metals prices are also an important component in the estimation of reserves and resources. As shown above in Item 1. – Business, metals prices have historically been volatile. Silver demand arises from investment demand, particularly in exchange-traded funds, industrial demand, and consumer demand. Gold demand arises primarily from investment and consumer demand. Investment demand for silver and gold can be influenced by several factors, including: the value of the U.S. dollar and other currencies, changing U.S. budget deficits, widening availability of exchange-traded funds, interest rate levels, the health of credit markets, and inflationary expectations. Uncertainty related to (i) the political environment in the U.S., (ii) U.S. and global trading policies (including tariffs), (iii) a global economic recovery, and (iv) recent uncertainty in China, could result in continued investment demand for precious metals. Industrial demand for silver is closely linked to world Gross Domestic Product growth and industrial fabrication levels, as it is difficult to substitute for silver in industrial fabrication. Consumer demand is driven significantly by demand for jewelry and other retail products. We believe that long-term industrial and economic trends, including demand for metals to decarbonize the economy and urbanization and growth of the middle class in countries such as China and India, will result in continued consumer demand for silver and gold and industrial demand for silver. There can be no assurance whether these trends will continue or how they will impact prices of the metals we produce. In the past, we have recorded impairments to our asset carrying values because of low prices, and we can offer no assurance that prices will either remain at their current levels or increase.

Processes supporting valuation of our assets and liabilities that are most significantly affected by metals prices include analysis of asset carrying values, depreciation, reserves and resources, and deferred income taxes. On at least an annual basis - and more frequently if circumstances warrant - we examine our depreciation rates, reserve estimates, and the valuation allowances on our deferred tax assets. We examine the carrying values of our assets as changes in facts and circumstances warrant. In our evaluation of carrying values and deferred taxes, we apply several pricing views to our forecasting model, including current prices, analyst price estimates, forward-curve prices, and historical prices (see Mineral Reserves and Resources, below, regarding prices used for reserve and resource estimates). Using applicable accounting guidance and our view of metals markets, we use the probability-weighted average of the various methods to determine whether the values of our assets are fairly stated, and to determine the level of valuation allowances, if any, on our deferred tax assets. In addition, estimates of future metals prices are used in the valuation of certain assets in the determination of the purchase price allocations for our acquisitions.

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Sales of concentrates sold directly to customers are recorded as revenues upon completion of the performance obligations and transfer of control of the product to the customer (generally at the time of shipment) using estimated forward metals prices for the estimated month of settlement. Due to the time elapsed between shipment of concentrates to the customer and final settlement with the customer, we must estimate the prices at which sales of our metals will be settled. Previously recorded sales and trade accounts receivable are adjusted to estimated settlement prices until final settlement by the customer. Changes in metals prices between shipment and final settlement result in changes to revenues and accounts receivable previously recorded upon shipment. As a result, our trade accounts receivable balances related to concentrate sales are subject to changes in metals prices until final settlement occurs. For more information, see Note 4 of Notes to Consolidated Financial Statements.

We utilize financially-settled forward contracts, commodity price collars and put options to manage our exposure to changes in prices for silver, gold, zinc and lead. See Item 7A. – Quantitative and Qualitative Disclosures About Market Risk - Commodity-Price Risk Management below for more information on our contract programs. Changes in silver, gold, zinc and lead prices between the dates that the contracts are entered into and their settlements will result in changes to the fair value asset or liability associated with the contracts, with a corresponding gain or loss for silver and gold contracts recognized in earnings and gain or loss for lead and zinc contracts deferred to accumulated other comprehensive income (loss).

Obligations for Environmental, Reclamation and Closure Matters

Accrued reclamation and closure costs can represent a significant and variable liability on our balance sheet. We have estimated our liabilities under appropriate accounting guidance; however, the ranges of liability could exceed the liabilities recognized. If substantial damages were awarded, claims were settled, or remediation costs incurred in excess of our accruals, our financial results or condition could be materially adversely affected.

Mineral Reserves and Resources

Critical estimates are inherent in the process of determining our reserves and resources. Our reserves and resources are affected largely by our assessment of future metals prices, as well as by engineering and geological estimates of ore grade, accessibility, future recoveries, capital expenditures and production costs. See Item 2. – Properties above for the metals price assumptions used in our estimates of reserves and resources as of December 31, 2025, 2024 and 2023. Our assessment of reserves and resources occurs at least annually. Periodically we utilize external specialists to perform independent audits of our operating properties reserves and resources.

Reserves and resources are a key component in the valuation of our properties, plants and equipment. Reserve estimates are used in determining appropriate rates of units-of-production depreciation, with net book value of many assets depreciated over remaining estimated reserves. Reserves and resources are also a key component in forecasts, with which we compare future cash flows to current asset values in an effort to ensure that carrying values are reported appropriately. Our forecasts are also used in determining the level of valuation allowances on our deferred tax assets. Reserves and resources also play a key role in the valuation of certain assets in the determination of the purchase price allocations for acquisitions. Annual reserve and resource estimates are also used to determine conversions of resources and exploration targets beyond the known reserve resulting from business combinations to depreciable reserves, in periods subsequent to the business combinations. Reserves and resources are a culmination of many estimates and are not guarantees that we will recover the indicated quantities of metals or that we will do so at a profitable level.

Valuation of Deferred Tax Assets

Our deferred income tax assets include certain future tax benefits. We record a valuation allowance against any portion of those deferred income tax assets when we believe, based on the weight of available evidence, it is more likely than not that some portion or all of the deferred income tax asset will not be realized. We review the likelihood that we will realize the benefit of our deferred tax assets and therefore the need for valuation allowances on a quarterly basis, or more frequently if events indicate that a review is required. In determining the requirement for a valuation allowance, the historical and projected financial results of the legal entity or consolidated group recording the net deferred tax asset is considered, along with all other available positive and negative evidence.

Certain categories of evidence carry more weight in the analysis than others based upon the extent to which the evidence may be objectively verified. We look to the nature and severity of cumulative pretax losses (if any) in the current three-year period ending on the evaluation date or the expectation of future pretax losses and the existence and frequency of prior cumulative pretax losses.

We utilize a rolling twelve quarters of pre-tax income or loss as a measure of our cumulative results in recent years. Concluding that a valuation allowance is not required is difficult when there is significant negative evidence which is objective and verifiable, such as cumulative losses in recent years. However, a cumulative three year loss is not solely determinative of the need for a valuation allowance. We also consider all other available positive and negative evidence in our analysis.

93

Other factors considered in the determination of the probability of the realization of the deferred tax assets include, but are not limited to:

•
Earnings history;

•
Projected future financial and taxable income based upon existing reserves and long-term estimates of commodity prices;

•
The duration of statutory carry forward periods;

•
Prudent and feasible tax planning strategies readily available that may alter the timing of reversal of the temporary difference;

•
Nature of temporary differences and predictability of reversal patterns of existing temporary differences; and

•
The sensitivity of future forecasted results to commodity prices and other factors.

The Company assesses available positive and negative evidence to estimate if sufficient future taxable income will be generated to utilize the existing deferred tax assets. A significant piece of objective negative evidence is recent pretax losses and/or expectations of future pretax losses. Such objective evidence limits the ability to consider other subjective evidence including projections for future growth. The amount of the deferred tax asset considered realizable, however, could be adjusted if estimates of future taxable income during the carryforward period are increased or if objective negative evidence in the form of cumulative losses is no longer present and additional weight may be given to subjective evidence such as our projections for growth.

See Note 7 of Notes to Consolidated Financial Statements for additional detail on the valuation allowance.

Pension Plan Accounting Assumptions

We are required to make a number of assumptions in estimating the future benefit obligations for, and fair value of assets included in, our pension plans, which impact the amount of liability and net periodic pension cost recognized related to our plans. These include assumptions for applicable discount rates, the expected rate of return on plan assets and the rate of future employee compensation increases. See Note 6 of Notes to Consolidated Financial Statements for more information on the accounting for our pension plans and the related assumptions.

New Accounting Pronouncements

Accounting Standard Updates that Became Effective in the Current Period

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvement to Income Tax Disclosures, amending income tax disclosure requirements for the effective tax rate reconciliation and income taxes paid. The amendments in ASU 2023-09 are effective for fiscal years beginning after December 15, 2024 and are applied prospectively. Early adoption and retrospective application of the amendments are permitted. As the amendments apply to income tax disclosures only, the Company does not expect adoption to have a material impact on our consolidated financial statements and disclosures. We retrospectively adopted the amended tax disclosures in our financial statements for the year ended December 31, 2025.

Accounting Standard Updates to Become Effective in Future Periods

In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income (Topic 220): Expense Disaggregation Disclosures, which includes amendments to require the disclosure of certain specific costs and expenses that are included in a relevant expense caption on the face of the income statement. Specific costs and expenses that would be required to be disclosed include: purchases of inventory, employee compensation, depreciation and intangible asset amortization. Additionally, a qualitative description of other items is required, equal to the difference between the relevant expense caption and the separately disclosed specific costs. The amendments in ASU 2024-03 are effective for fiscal years beginning after December 15, 2026, and for interim periods beginning after December 15, 2027, and are applied retrospectively. The Company is evaluating the impact of the amendments on our consolidated financial statements and disclosures.

94

Guarantor Subsidiaries

Presented below are Hecla’s 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 9 of Notes to Consolidated Financial Statements for more information). As of December 31, 2025, the Guarantors consist of the following Hecla 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.

The condensed consolidating financial statements below have been prepared from our financial information on the same basis of accounting as the 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 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. 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 income 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 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.

95

Condensed Consolidating Balance Sheets

As of December 31, 2025

Parent

Guarantors

Non-Guarantors

Eliminations

Consolidated

(in thousands)

Assets

Cash and cash equivalents

$

210,465

$

18,559

$

12,534

$

—

$

241,558

Other current assets

56,469

377,360

46,258

(92,301

)

387,786

Properties, plants, equipment and mine development, net

296

2,832,440

8,091

—

2,840,827

Intercompany receivable (payable)

(685,894

)

(367,211

)

667,695

385,410

—

Investments in subsidiaries

2,842,226

(52

)

—

(2,842,174

)

—

Other non-current assets

672,379

16,345

200,970

(799,220

)

90,474

Total assets

$

3,095,941

$

2,877,441

$

935,548

$

(3,348,285

)

$

3,560,645

Liabilities and Stockholders' Equity

Current liabilities

$

86,837

$

206,466

$

46,907

$

(108,646

)

$

231,564

Long-term debt

261,946

6,681

—

—

268,627

Non-current portion of accrued reclamation

—

187,007

1,464

—

188,471

Non-current deferred tax liability

131,136

115,879

(590

)

—

246,425

Other non-current liabilities

24,376

207,966

198,983

(397,413

)

33,912

Stockholders' equity

2,591,646

2,153,442

688,784

(2,842,226

)

2,591,646

Total liabilities and stockholders' equity

$

3,095,941

$

2,877,441

$

935,548

$

(3,348,285

)

$

3,560,645

Condensed Consolidating Statements of Operations and Comprehensive Income (Loss)

Year Ended December 31, 2025

Parent

Guarantors

Non-Guarantors

Eliminations

Consolidated

(in thousands)

Revenues

$

(29,620

)

$

1,458,762

$

—

$

(6,123

)

$

1,423,019

Cost of sales

(4,139

)

(640,403

)

—

3,743

(640,799

)

Depreciation, depletion, and amortization

—

(160,017

)

—

—

(160,017

)

General and administrative

(21,749

)

(33,101

)

(2,776

)

—

(57,626

)

Exploration and pre-development

(568

)

(25,455

)

(1,722

)

—

(27,745

)

Equity in earnings of subsidiaries

403,999

—

—

(403,999

)

—

Other income (expense)

(923

)

(76,252

)

17,142

2,380

(57,653

)

Income (loss) before income and mining taxes

347,000

523,534

12,644

(403,999

)

479,179

(Provision) benefit from income and mining taxes

(25,287

)

(132,857

)

677

—

(157,467

)

Net income (loss)

321,713

390,677

13,321

(403,999

)

321,712

Preferred stock dividends

(552

)

—

—

—

(552

)

Income (loss) applicable to common stockholders

321,161

390,677

13,321

(403,999

)

321,160

Net income (loss)

321,713

390,677

13,322

(404,000

)

321,712

Other comprehensive loss

6,932

—

—

—

6,932

Comprehensive income (loss)

$

328,645

$

390,677

$

13,322

$

(404,000

)

$

328,644

Forward-Looking Statements

The foregoing discussion and analysis, as well as certain information contained elsewhere in this report, contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act, and are intended to be covered by the safe harbor created thereby. See the discussion in Special Note on Forward-Looking Statements included prior to Item 1.