Company Overview - Hecla Mining (HL) currently holds a Momentum Style Score of A, indicating strong momentum in its stock performance [3] - The company has a Zacks Rank of 2 (Buy), suggesting a favorable outlook compared to the market [4] Recent Performance - Over the past week, HL shares have increased by 33.57%, outperforming the Zacks Mining - Silver industry, which rose by 13.49% [6] - In a longer time frame, HL shares have gained 52.83% over the past quarter and 45.75% over the last year, while the S&P 500 has only moved 13.05% and 20.74%, respectively [7] Trading Volume - The average 20-day trading volume for HL is 21,929,204 shares, which is a significant indicator of market interest and momentum [8] Earnings Outlook - In the past two months, three earnings estimates for HL have been revised upwards, increasing the consensus estimate from $0.18 to $0.27 [10] - For the next fiscal year, three estimates have also moved higher, with no downward revisions during the same period [10] Conclusion - Considering the strong performance metrics and positive earnings outlook, HL is positioned as a promising investment opportunity with a Momentum Score of A [12]

Financial Data and Key Metrics Changes - The company achieved record sales of $304 million, net income applicable to common shareholders of nearly $58 million, and record adjusted EBITDA of $133 million, improving the net leverage ratio to 0.7 times [14][18] - Generated cash from operations of over $160 million and record quarterly free cash flow of $104 million [14][18] Business Line Data and Key Metrics Changes - Silver production was 4.5 million ounces and gold production was nearly 46,000 ounces, with cash costs of negative $5.46 per ounce and all-in sustaining costs of $5.19 per ounce [15][21] - Casa Berardi's unit costs dropped by over $600 per ounce compared to the prior quarter, with second-quarter gold production increasing 37% to just over 28,000 ounces [15][25] Market Data and Key Metrics Changes - Silver made up 41% of consolidated revenue, while gold increased to 42% based on performance and price increases [19] - Margins expanded from 65% last quarter to 85% this quarter, with silver all-in sustaining costs at $5.19 per ounce after byproduct credits [19] Company Strategy and Development Direction - The strategic vision focuses on operational excellence, portfolio optimization, disciplined capital allocation, and maintaining silver market leadership [5][6] - The company is prioritizing high-return projects while strengthening its balance sheet, with a focus on free cash flow generation [7][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving production targets at Keno Hill, emphasizing a systematic approach to ramping up production while maintaining ESG commitments [12][13] - The company aims to create long-term value through disciplined capital allocation and strategic reviews of its assets [30][32] Other Important Information - The company is focusing on organic growth and has initiated a partial redemption of $212 million of senior notes to improve its balance sheet [17][20] - The exploration program continues to deliver consistent results, replacing depletion and growing the resource base [13] Q&A Session Summary Question: What was driving the higher grades and outperformance at Greens Creek? - Management indicated that good execution and additional areas with better grades were the main reasons for the performance [38] Question: What has changed regarding the production target at Keno Hill? - The company expanded operational flexibility and focused on reducing overbreak and controlling dilution, which supports the revised production target [41] Question: Why retire a large amount of notes with a significant term left on the debt? - Management stated that funds previously used for the Silverlink dividend and debt service would be better invested in operations and growth opportunities [44] Question: Can you provide color on the expected stripping ratio improvements at Casa Berardi? - The stripping ratio is expected to decrease as the pit nears the end of its mine life, with a projected 10% decrease by year-end [54] Question: What is the anticipated trajectory of throughput at Keno Hill? - The ramp-up to 440 tonnes per day will be gradual, with expectations of reaching approximately 330 tonnes per day by 2027 [84]

Financial Data and Key Metrics Changes - The company achieved record sales of $304 million, net income applicable to common shareholders of nearly $58 million, and record adjusted EBITDA of $133 million, improving the net leverage ratio to 0.7 times [16][20] - Generated cash from operations of over $160 million and record quarterly free cash flow of $104 million [16][20] - Silver production reached 4.5 million ounces and nearly 46,000 ounces of gold, with cash costs of negative $5.46 per ounce and all-in sustaining costs of $5.19 per ounce [16][20] Business Line Data and Key Metrics Changes - Greens Creek produced 2.4 million ounces of silver, a 21% increase over the first quarter, with cash costs of negative $11.91 per ounce [23] - Lucky Friday maintained consistent silver production of 1.3 million ounces, with cash costs of $6.19 per ounce and all-in sustaining costs of $19.07 per ounce [25] - Keno Hill achieved silver production of over 750,000 ounces, marking its first positive free cash flow quarter under current ownership [27] Market Data and Key Metrics Changes - Silver accounted for 41% of consolidated revenue, while gold increased to 42% due to performance improvements at Casa Berardi and Greens Creek [21] - The increase in silver prices led to an expansion in margins, growing from 65% last quarter to 85% this quarter [21] Company Strategy and Development Direction - The company focuses on four key pillars: operational excellence, portfolio optimization, disciplined capital allocation, and maintaining silver market leadership [6][7] - The strategic review of Casa Berardi is progressing well, with updates expected in the coming weeks [7][20] - The company aims to prioritize high-return projects while strengthening its balance sheet, emphasizing free cash flow generation [8][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving production targets at Keno Hill through systematic capital deployment and optimization strategies [11][15] - The company is focused on creating long-term value and reducing debt to enhance cash flow for reinvestment in operations [48][50] - The management highlighted the importance of jurisdictional security and operational stability in the current geopolitical climate [98][100] Other Important Information - The company is committed to ESG leadership and aims to strengthen partnerships with First Nations while maintaining safety excellence [6][9] - The average reserve mine life of 14 years is double the industry peer average, providing stability and long-term value creation potential [35][36] Q&A Session Summary Question: What was driving the higher grades and outperformance at Greens Creek? - Management indicated that good execution and additional areas with better grades were the main reasons for the performance [42] Question: What has changed regarding the production target at Keno Hill? - The company expanded operational flexibility and focused on reducing overbreak and controlling dilution [44] Question: Why retire a large amount of notes with a significant term left on the debt? - Management stated that funds would be better served by reinvesting in operations rather than servicing debt [48] Question: Can you provide guidance on the stripping ratio at Casa Berardi? - The stripping ratio is expected to decrease as the pit nears the end of its mine life, with a projected 10% decrease by year-end [58] Question: What is the current thinking on advancing Montana assets? - The focus remains on completing the Casa review, with potential for partnerships in the future [94]

Financial Performance - Record sales of $304 million and record adjusted EBITDA of $132.5 million were achieved in Q2 2025[22] - Net leverage ratio improved to 07x from 15x in the prior quarter[22] - The company generated $1618 million in cash from operations and a record quarterly free cash flow of $1038 million[22] - Silver accounted for 41% of Q2 2025 revenues, which totaled $297 million[33] - The Q2 silver margin was 85% of the silver price[35] Operational Highlights - 45 million ounces of silver and 45895 ounces of gold were produced in Q2 2025[22] - The silver cash cost was ($546)/oz and AISC was $519/oz, both after by-product credits[22] - Casa Berardi unit costs decreased by over $600/oz from the prior quarter[22] - Lucky Friday achieved a new quarterly milling record of 114475 tons[22] Keno Hill Strategic Shift - Keno Hill is maintained as a core portfolio asset, meeting investment hurdle rates at $25/oz silver[11] - The revised production target for Keno Hill is 440 tons per day (TPD), down from the original 550-600 TPD baseline[12] - At the 440 TPD production target, robust positive free cash flow is expected[11]

Part I. Financial Information [Item 1. Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) The unaudited condensed consolidated financial statements detail the company's performance for the three and six months ended June 30, 2025 and 2024 [Condensed Consolidated Statements of Operations and Comprehensive Income](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income) Significant year-over-year sales growth for the three and six-month periods drove substantial increases in gross profit and net income Q2 & H1 2025 vs 2024 Performance Highlights (in thousands, except per-share amounts) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Sales** | $304,027 | $245,657 | $565,366 | $435,185 | | **Gross Profit** | $119,524 | $51,430 | $193,528 | $70,590 | | **Net Income** | $57,705 | $27,870 | $86,577 | $22,117 | | **Net Income to Common Stockholders** | $57,567 | $27,732 | $86,301 | $21,841 | | **Diluted EPS** | $0.09 | $0.04 | $0.14 | $0.04 | [Condensed Consolidated Statements of Cash Flows](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow more than doubled, and a significant inflow from financing activities substantially increased the company's cash position Cash Flow Summary - Six Months Ended June 30 (in thousands) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $197,534 | $95,798 | | **Net cash used in investing activities** | $(108,314) | $(96,808) | | **Net cash provided by (used in) financing activities** | $180,004 | $(79,593) | | **Net increase (decrease) in cash** | $269,703 | $(81,783) | | **Cash at end of period** | $297,748 | $25,756 | - Financing activities were primarily driven by **$174.1 million in net proceeds** from the sale of common stock and net debt borrowings of $16.0 million ($133M borrowed, $117M repaid)[13](index=13&type=chunk) [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The company's balance sheet strengthened significantly due to a large increase in cash, leading to higher total assets and stockholders' equity Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Cash and cash equivalents** | $296,565 | $26,868 | | **Total current assets** | $514,860 | $214,152 | | **Total assets** | $3,309,355 | $2,981,060 | | **Total current liabilities** | $192,962 | $197,838 | | **Long-term debt including finance leases** | $521,568 | $508,927 | | **Total liabilities** | $999,322 | $941,546 | | **Total stockholders' equity** | $2,310,033 | $2,039,514 | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail segment performance, debt, derivative use, and significant subsequent events like stock sales and debt repayments - The company is organized into four segments: Greens Creek, Lucky Friday, Keno Hill, and Casa Berardi, with performance evaluated based on segment gross profit or loss[23](index=23&type=chunk)[24](index=24&type=chunk) Sales by Metal - Six Months Ended June 30 (in thousands) | Metal | 2025 | 2024 | | :--- | :--- | :--- | | Silver | $240,814 | $198,925 | | Gold | $210,909 | $149,884 | | Lead | $43,582 | $43,411 | | Zinc | $64,263 | $57,460 | - During Q2 2025, the company sold 29,008,536 shares under its At-The-Market (ATM) equity program for **net proceeds of $174.1 million**[48](index=48&type=chunk) - Subsequent to the quarter end, the company sold an additional 6,949,792 shares for **net proceeds of $42.1 million**, fully repaid its IQ notes for $33.6 million, and issued a notice to redeem $212 million of its Senior Notes[102](index=102&type=chunk)[103](index=103&type=chunk)[105](index=105&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=31&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management analyzes financial performance, highlighting record sales, operational achievements, segment results, and a strengthened liquidity position [Overview](index=31&type=section&id=Overview) The company reports record sales, strong production, and a strengthened balance sheet for the second quarter of 2025 - Generated **record sales of $304 million** in Q2 2025, a 24% increase over the comparable period[111](index=111&type=chunk) - Produced **4.5 million ounces of silver** and **45,895 ounces of gold** in Q2 2025[113](index=113&type=chunk) - Strengthened the balance sheet by raising **net proceeds of $174.1 million** through the ATM program[113](index=113&type=chunk) - Keno Hill achieved its second consecutive quarter of gross profit, and Lucky Friday set a new quarterly milling record[111](index=111&type=chunk)[113](index=113&type=chunk) [Consolidated Results of Operations](index=32&type=section&id=Consolidated%20Results%20of%20Operations) Higher realized metal prices drove significant year-over-year increases in sales, gross profit, and net income for Q2 and H1 2025 Sales Variance Analysis - Q2 2025 vs Q2 2024 (in thousands) | Factor | Variance Impact | | :--- | :--- | | Price | $44,595 | | Volume | $3,023 | | Smelter terms | $7,510 | Average Realized Prices - Q2 2025 vs Q2 2024 | Metal | 2025 | 2024 | | :--- | :--- | :--- | | Silver ($/oz) | $34.82 | $29.77 | | Gold ($/oz) | $3,314 | $2,338 | | Lead ($/lb) | $0.92 | $1.06 | | Zinc ($/lb) | $1.31 | $1.51 | - The increase in net income for Q2 2025 was driven by a **$68.1 million increase in consolidated gross profit**, partially offset by a $16.7 million increase in other operating expense and a $23.5 million increase in income tax expense[131](index=131&type=chunk) [Segment Analysis](index=42&type=section&id=Segment%20Analysis) Performance varied by segment, with Greens Creek and Casa Berardi showing strong profit growth, while Keno Hill began contributing positively Segment Gross Profit (Loss) - Q2 2025 vs Q2 2024 (in thousands) | Segment | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Greens Creek | $63,081 | $38,873 | | Lucky Friday | $21,987 | $21,548 | | Keno Hill | $240 | $0 | | Casa Berardi | $34,245 | $(8,717) | - **Greens Creek:** Gross profit **increased by $24.2 million** in Q2 2025 due to higher realized prices for silver and gold and higher sales volumes[134](index=134&type=chunk) - **Lucky Friday:** Gross profit was stable as higher sales volumes and prices were offset by increased contractor, consumables, and maintenance costs[145](index=145&type=chunk) - **Keno Hill:** Generated a **gross profit of $0.2 million** in Q2 2025, though the ramp-up continues to face challenges related to permitting, power, and workforce availability[158](index=158&type=chunk)[163](index=163&type=chunk) - **Casa Berardi:** Gross profit **increased by $43.0 million** in Q2 2025, driven by higher realized prices, increased gold ounces sold, and lower depreciation expense[167](index=167&type=chunk)[169](index=169&type=chunk) [Reconciliation of Non-GAAP Measures](index=52&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) This section reconciles non-GAAP metrics like Cash Cost and AISC to their nearest GAAP equivalents to assess operational performance - The company provides reconciliations for non-GAAP measures like Cash Cost and All-In Sustaining Cost (AISC) to the nearest GAAP measure (Total Cost of Sales)[181](index=181&type=chunk)[182](index=182&type=chunk) Consolidated AISC, After By-product Credits, per Ounce - Q2 2025 vs Q2 2024 | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Total Silver AISC ($/oz) | $5.19 | $12.54 | | Total Gold AISC ($/oz) | $1,669 | $1,825 | - Cost per ounce statistics are not disclosed for the Keno Hill operation as it is still in the production ramp-up phase[184](index=184&type=chunk) [Financial Liquidity and Capital Resources](index=52&type=section&id=Financial%20Liquidity%20and%20Capital%20Resources) The company's liquidity improved dramatically due to strong operating cash flow and proceeds from its equity program Liquidity Position (in millions) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $296.6 | $26.9 | | Marketable equity securities | $43.4 | $33.2 | | **Total liquid assets** | **$340.0** | **$60.1** | - As of June 30, 2025, the company had **$179.3 million available for borrowing** under its $225 million credit facility[202](index=202&type=chunk) - The company estimates total 2025 capital expenditures to be between **$222 million and $242 million**, with $112.1 million already incurred as of June 30, 2025[208](index=208&type=chunk) - Cash from operating activities **increased by $101.7 million to $197.5 million** for the first six months of 2025 compared to the same period in 2024[213](index=213&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=59&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is primarily exposed to market risks from fluctuations in metals prices and foreign currency exchange rates - The company's primary market risks are from changes in the prices of silver, gold, lead, zinc, and copper, and fluctuations in the USD/CAD foreign exchange rate[228](index=228&type=chunk)[229](index=229&type=chunk)[232](index=232&type=chunk) - A hypothetical **10% change in metal prices** would alter the value of provisionally priced concentrate sales by approximately **$7.3 million** as of June 30, 2025[230](index=230&type=chunk) - A **10% change in the USD/CAD exchange rate** would have resulted in a change of approximately **$7.2 million** in the company's net foreign exchange gain or loss[232](index=232&type=chunk) [Item 4. Controls and Procedures](index=60&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes to internal controls during the quarter - The CEO and CFO concluded that the company's **disclosure controls and procedures were effective** as of June 30, 2025[234](index=234&type=chunk) - **No material changes** in internal control over financial reporting occurred during the quarter[234](index=234&type=chunk) Part II. Other Information [Item 1. Legal Proceedings](index=61&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 11 of the financial statements for details on legal matters and environmental contingencies - Information regarding legal proceedings is incorporated by reference from Note 11 of the Notes to Condensed Consolidated Financial Statements[238](index=238&type=chunk) [Item 1A. Risk Factors](index=61&type=section&id=Item%201A.%20Risk%20Factors) The company highlights risks related to tariffs and international trade disputes that could adversely affect its business - The company identifies risks related to tariffs and trade disputes, particularly with countries like **Japan and South Korea**, which are key markets for its products[240](index=240&type=chunk)[241](index=241&type=chunk) - Reciprocal tariffs could make it more expensive to export products, potentially leading customers to renegotiate or terminate agreements, which could **materially impact business and financial results**[241](index=241&type=chunk) [Item 4. Mine Safety Disclosures](index=61&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Mine safety violation information required by the Dodd-Frank Act is provided in Exhibit 95 of the report - Mine safety disclosures required by the Dodd-Frank Act are provided in Exhibit 95 to the Form 10-Q[243](index=243&type=chunk) [Item 5. Other Information](index=61&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted or terminated Rule 10b5-1 trading arrangements during the second quarter of 2025 - **No director or officer** adopted or terminated a Rule 10b5-1 trading plan during the second quarter of 2025[244](index=244&type=chunk) [Item 6. Exhibits](index=62&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the report, including officer certifications and mine safety data - Lists all exhibits filed with the report, such as officer certifications (Exhibits 31.1, 31.2, 32.1, 32.2) and mine safety information (Exhibit 95)[246](index=246&type=chunk)

[Hecla Q2 2025 Financial and Operational Results](index=1&type=section&id=Hecla%20Reports%20Second%20Quarter%202025%20Results) [Second Quarter Highlights](index=1&type=section&id=SECOND%20QUARTER%20HIGHLIGHTS) The company achieved record revenue, Adjusted EBITDA, and free cash flow, driven by significant increases in silver and gold production Q2 2025 Key Financial Highlights | Metric | Q2 2025 | Change vs. Q1 2025 | | :--- | :--- | :--- | | Revenue | $304.0 million | +16% | | Net Income | $57.6 million | +101% | | Adjusted EBITDA | $132.5 million | +46% | | Free Cash Flow | $103.8 million | Record High (vs. -$18.4M) | | Net Leverage Ratio | 0.7x | Decreased from 1.5x | - Production volumes increased significantly quarter-over-quarter, with silver production up **10% to 4.5 million ounces** and gold production up **34% to 45,895 ounces**[5](index=5&type=chunk) - All-in Sustaining Costs (AISC) improved, with silver AISC at **$5.19/oz** and gold AISC at **$1,669/oz**, both after by-product credits[5](index=5&type=chunk) - Operational achievements included a new quarterly milling record of **114,475 tons** at Lucky Friday and strong cost performance at Greens Creek[5](index=5&type=chunk) [Strategic Priorities for 2025](index=2&type=section&id=STRATEGIC%20PRIORITIES%20FOR%202025) Priorities include strengthening the balance sheet, optimizing the asset portfolio, advancing Keno Hill, and improving operational efficiency - Key strategic goals for 2025 include: - **Balance Sheet:** Strengthen through asset sales, free cash flow, and debt reduction - **Capital Allocation:** Target highest risk-adjusted return projects to increase free cash flow - **Keno Hill:** Advance permitting and infrastructure investment to achieve sustained profitability - **Portfolio Optimization:** Continue strategic review of non-core assets, highlighted by progress on the Casa Berardi review - **Efficiency:** Implement standardized enterprise systems and advanced analytics for better mine planning and cost management[8](index=8&type=chunk) [Financial and Operational Overview](index=3&type=section&id=FINANCIAL%20AND%20OPERATIONAL%20OVERVIEW) Record sales of $304 million and a doubling of net income were driven by higher metal prices, leading to record free cash flow and significant debt reduction Consolidated Financial and Production Summary | Metric | Q2-2025 | Q1-2025 | | :--- | :--- | :--- | | Sales | $304.0M | $261.3M | | Gross Profit | $119.5M | $74.0M | | Net Income | $57.6M | $28.7M | | Adjusted EBITDA | $132.5M | $90.8M | | Free Cash Flow | $103.8M | ($18.4M) | | Silver Production (oz) | 4,520,510 | 4,112,394 | | Gold Production (oz) | 45,895 | 34,232 | | Silver AISC/oz | $5.19 | $11.91 | | Gold AISC/oz | $1,669 | $2,303 | - The increase in gross profit was primarily driven by a **$28.9 million** improvement at Casa Berardi and a **$14.6 million** increase at Greens Creek[11](index=11&type=chunk) - The net leverage ratio improved significantly to **0.7x from 1.5x** in the prior quarter, resulting from strong EBITDA generation and a **$276.8 million** decrease in net debt[16](index=16&type=chunk) [Capital Management and Hedging](index=5&type=section&id=Capital%20Management%20and%20Hedging) The company reduced debt through its ATM facility to lower interest expenses and actively manages commodity and currency risks via hedging programs - The company raised capital via its ATM facility to redeem **$212 million** of its $475 million 7.25% Senior Notes, aiming to reduce annual interest expense by an anticipated **$17.8 million**[20](index=20&type=chunk)[21](index=21&type=chunk) - Hedging programs are in place for base metals and foreign currency, covering approximately **12% of zinc** and **24% of lead** production for 2025-2026 as of June 30, 2025[24](index=24&type=chunk) - Keno Hill's silver production is partially hedged with zero-cost collars covering **1.67 million ounces** over the next three quarters to manage risk during its ramp-up[25](index=25&type=chunk)[26](index=26&type=chunk) - The company has hedged approximately **29%** of forecasted Canadian dollar denominated production costs through 2026 at an average CAD/USD rate of 1.35[27](index=27&type=chunk) [Operations Overview](index=7&type=section&id=OPERATIONS%20OVERVIEW) All mining operations delivered strong results, highlighted by record milling at Lucky Friday and Keno Hill achieving its first positive free cash flow [Greens Creek Mine - Alaska](index=7&type=section&id=Greens%20Creek%20Mine%20-%20Alaska) The mine delivered strong production growth and a 106% increase in free cash flow, leading to raised gold guidance and significantly lower cost projections Greens Creek Q2 2025 Performance | Metric | Q2-2025 | Q1-2025 | | :--- | :--- | :--- | | Silver Produced (oz) | 2,422,978 | 2,002,560 | | Gold Produced (oz) | 17,750 | 13,759 | | Gross Profit | $63.1M | $48.5M | | Free Cash Flow | $69.0M | $33.4M | | Cash Cost/oz (after credits) | ($11.91) | ($4.08) | | AISC/oz (after credits) | ($8.19) | ($0.03) | - The 2025 gold production guidance for Greens Creek was increased to **50.0-55.0 thousand ounces** from 44.0-48.0 thousand ounces[35](index=35&type=chunk) - Cost guidance for 2025 was substantially lowered, with AISC per silver ounce now projected at **$0.00-$1.50**, down from $6.50-$7.25[35](index=35&type=chunk) [Lucky Friday Mine - Idaho](index=9&type=section&id=Lucky%20Friday%20Mine%20-%20Idaho) The mine achieved a new quarterly milling record of 114,475 tons while maintaining consistent silver production and reducing unit costs Lucky Friday Q2 2025 Performance | Metric | Q2-2025 | Q1-2025 | | :--- | :--- | :--- | | Tons of Ore Processed | 114,475 | 108,745 | | Silver Produced (oz) | 1,340,877 | 1,332,252 | | Gross Profit | $22.0M | $19.1M | | Free Cash Flow | $4.9M | $8.4M | | AISC/oz (after credits) | $19.07 | $20.08 | - The mine set a new quarterly milling record, beating the previous record set in Q1 2025 by **over 5%**[39](index=39&type=chunk) - The 2025 production and cost guidance for Lucky Friday remains unchanged, though the third quarter is expected to have lower production[43](index=43&type=chunk) [Keno Hill - Yukon Territory](index=10&type=section&id=Keno%20Hill%20-%20Yukon%20Territory) The mine reached a major milestone by generating its first positive free cash flow quarter while advancing an optimized, self-financing operational plan Keno Hill Q2 2025 Performance | Metric | Q2-2025 | Q1-2025 | | :--- | :--- | :--- | | Silver Produced (oz) | 750,712 | 772,430 | | Gross Profit | $0.2M | $1.0M | | Cash Flow from Ops | $16.4M | ($9.7M) | | Free Cash Flow | $2.7M | ($18.4M) | - The second quarter marked the **first positive free cash flow quarter** for Keno Hill under Hecla's ownership[48](index=48&type=chunk) - The operational plan has been optimized to target **440 tons per day**, which is expected to be near self-financing at current silver prices[50](index=50&type=chunk)[51](index=51&type=chunk) [Casa Berardi - Quebec](index=13&type=section&id=Casa%20Berardi%20-%20Quebec) The asset demonstrated a significant turnaround with a 37% increase in gold production, a sharp cost reduction, and strong free cash flow generation Casa Berardi Q2 2025 Performance | Metric | Q2-2025 | Q1-2025 | | :--- | :--- | :--- | | Gold Produced (oz) | 28,145 | 20,473 | | Gross Profit | $34.2M | $5.3M | | Free Cash Flow | $31.8M | ($6.4M) | | Cash Cost/oz (after credits) | $1,578 | $2,195 | | AISC/oz (after credits) | $1,669 | $2,303 | - Cash costs and AISC per gold ounce both decreased by **over $600** compared to the prior quarter, driven by higher production volumes[60](index=60&type=chunk)[61](index=61&type=chunk) - The company is advancing a strategic review for Casa Berardi and expects to provide an update in the coming weeks[65](index=65&type=chunk) [Exploration and Pre-Development](index=14&type=section&id=EXPLORATION%20AND%20PRE-DEVELOPMENT) An $8.3 million investment in exploration yielded positive early results at the Midas project and extended mineralization at existing mine sites - Total investment in exploration was **$8.3 million** in Q2 2025[67](index=67&type=chunk) - At the Midas project, early drilling results were positive, with two new vein intercepts showing **visible gold**[68](index=68&type=chunk) - Exploration at Greens Creek extended mineralization by **550 feet** in the Gallagher Zone and **150 feet** in the 200S Zone[69](index=69&type=chunk) - At Keno Hill, a wide, high-grade intercept identified new mineralization **500 feet down plunge** from existing reserves[70](index=70&type=chunk) [Dividends](index=17&type=section&id=DIVIDENDS) The Board declared quarterly cash dividends for both common and Series B preferred stock Declared Quarterly Dividends | Stock Type | Dividend per Share | | :--- | :--- | | Common Stock | $0.00375 | | Series B Preferred Stock | $0.875 | [2025 Guidance](index=17&type=section&id=2025%20GUIDANCE) The company increased its 2025 gold production forecast and significantly lowered its consolidated silver cost guidance due to strong operational performance Revised 2025 Production Guidance | Metal | 2025 Guidance (Revised) | Previous Guidance | | :--- | :--- | :--- | | Silver (Moz) | 15.5 - 17.0 | Unchanged | | Gold (Koz) | 126.0 - 137.0 | 120 - 130 | Revised 2025 Consolidated Silver Cost Guidance | Metric (per silver ounce) | 2025 Guidance (Revised) | Previous Guidance | | :--- | :--- | :--- | | Cash Cost (after by-products) | ($1.25) - ($0.75) | $3.00 - $3.25 | | AISC (after by-products) | $11.50 - $13.50 | $15.75 - $17.00 | - Consolidated capital investment guidance for 2025 remains unchanged at **$222-$242 million**[84](index=84&type=chunk) [Financial Statements and Disclosures](index=19&type=section&id=Financial%20Statements%20and%20Disclosures) This section presents unaudited consolidated financial statements and reconciliations of non-GAAP measures to their GAAP equivalents - The report includes the Consolidated Statements of Operations, detailing revenues, costs, and net income for the three and six months ended June 30, 2025[107](index=107&type=chunk) - The Consolidated Statements of Cash Flows outline cash movements from operating, investing, and financing activities[109](index=109&type=chunk) - Detailed reconciliations are provided for non-GAAP measures to their most comparable GAAP measures, including Total Cost of Sales to Cash Cost and AISC[113](index=113&type=chunk)[132](index=132&type=chunk)

Core Viewpoint - Hecla Mining (HL) shows potential for upside based on Wall Street analysts' short-term price targets, with a mean target of $7.34 indicating a 26.1% upside from the current price of $5.82 [1] Price Targets and Estimates - The average price target consists of eight estimates ranging from a low of $5.50 to a high of $11.50, with a standard deviation of $1.85, indicating variability among analysts [2] - The lowest estimate suggests a decline of 5.5%, while the highest indicates a potential upside of 97.6% [2] - Analysts' consensus on price targets should be approached with caution, as their ability to set unbiased targets has been questioned [3][7] Earnings Estimates - Analysts are optimistic about HL's earnings prospects, with a consensus indicating better earnings than previously estimated [4] - Over the last 30 days, one estimate has increased, leading to a 11.1% rise in the Zacks Consensus Estimate for the current year [12] - HL holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates [13] Analyst Agreement - A low standard deviation in price targets suggests a high degree of agreement among analysts regarding the stock's price movement direction [9] - While price targets should not be the sole basis for investment decisions, they can provide a starting point for further research into fundamental drivers [10][14]

Core Viewpoint - Hecla Mining (HL) is positioned as a strong investment opportunity due to its improving earnings outlook and analysts' increasing earnings estimates [1][2]. Earnings Estimate Revisions - The trend of rising earnings estimate revisions reflects growing analyst optimism regarding Hecla Mining's earnings prospects, which is expected to positively influence its stock price [2]. - For the current quarter, Hecla Mining is projected to earn $0.06 per share, marking a significant increase of +200.0% compared to the previous year [5]. - Over the last 30 days, the Zacks Consensus Estimate for Hecla Mining has risen by 50%, with one estimate moving higher and no negative revisions [5]. - For the full year, the expected earnings are $0.20 per share, representing a year-over-year increase of +81.8%, with a 25% rise in consensus estimates due to positive revisions [6][7]. Zacks Rank and Performance - Hecla Mining has achieved a Zacks Rank 2 (Buy), indicating strong agreement among analysts in raising earnings estimates, which historically correlates with stock performance [8]. - Stocks with Zacks Rank 1 (Strong Buy) and 2 (Buy) have shown significant outperformance compared to the S&P 500 [8]. Stock Performance - Hecla Mining's stock has gained 5.2% over the past four weeks, driven by solid estimate revisions and positive earnings growth prospects [9].

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Largest Silver Producer in U.S. and Canada Conference Call FIRST QUARTER 2025 RESPONSIBLE. SAFE. INNOVATIVE. Cautionary Statements HECLA MINING COMPANY NYSE: HL FIRST QUARTER 2025 CONFERENCE CALL Cautionary Statement Regarding Forward-Looking Statements This presentation contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbor creat ...