Core Viewpoint - Hecla Mining (HL) shows a promising earnings outlook, with analysts raising their earnings estimates, which may positively impact the stock price [1][2]. Earnings Estimate Revisions - Analysts' optimism regarding Hecla Mining's earnings prospects is leading to higher estimates, which historically correlates with stock price movements [2]. - For the current quarter, the earnings estimate is $0.09 per share, reflecting a 200% increase from the previous year [5]. - Over the last 30 days, the Zacks Consensus Estimate for Hecla Mining has risen by 50%, with no negative revisions [5]. - For the full year, the earnings estimate is $0.27 per share, indicating a 145.5% increase from the previous year [6]. - The consensus estimate for the current year has increased by 35% due to three upward revisions and no negative changes [6][7]. Zacks Rank - Hecla Mining currently holds a Zacks Rank 2 (Buy), indicating strong agreement among analysts on the positive earnings revisions [8]. - Stocks with Zacks Rank 1 (Strong Buy) and 2 (Buy) have historically outperformed the S&P 500 [8]. Stock Performance - Hecla Mining shares have increased by 29.1% over the past four weeks, suggesting investor confidence in the company's earnings growth prospects [9].

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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