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Hecla Reports First Quarter 2026 Results

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adjusted EBITDA financial
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AISC financial
All-in Sustaining Cost (AISC) is a comprehensive measure of how much it costs a mining company to produce one unit of metal when ongoing operating expenses, long-term maintenance and sustaining capital, and share of corporate overhead are included. Investors use AISC to compare profitability and cash generation across producers—think of it as the full household cost to keep a business running divided by how many items it makes, which helps assess margins and resilience to price swings.
cash cost financial
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Senior Notes financial
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Quartz Mining License regulatory
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Water License regulatory
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Cash Flow from Continuing Operations $183 million, Record Free Cash Flow1 $144 million;

Premier Silver Focus Sharpened; Organic Growth Pipeline Advancing

COEUR D'ALENE, Idaho--(BUSINESS WIRE)-- Hecla Mining Company (NYSE:HL) ("Hecla", or the "Company") today announced first quarter 2026 financial and operating results. "Prior quarter" refers to the fourth quarter of 2025. Prior period financial information has been revised to reflect Casa Berardi as a discontinued operation.

FIRST QUARTER 2026 HIGHLIGHTS

Financial Performance:

  • Revenue: Over $411 million from continuing operations, representing a 13% increase over prior quarter and a 100% increase versus the first quarter of 2025 (both periods on a continuing operations basis, excluding Casa Berardi), reflecting the combination of significantly higher realized silver and gold prices, partly offset by 5% and 6% lower silver and gold production, respectively.
  • Profitability: Net income from continuing operations of $165 million or $0.25 per share - up from $24 million or $0.04 per share in the first quarter of 2025. After a non-cash $192 million write-down related to the Casa Berardi sale, net loss attributable to common stockholders of $19 million or ($0.03) per share. Casa Berardi generated income from operations of $31 million in the first quarter prior to the sale closing on March 25.
  • Record Adjusted EBITDA: $265 million from continuing operations, a 31% increase over the prior quarter and nearly three and half times the $77 million recorded in first quarter of 2025 (both periods on a continuing operations basis, excluding Casa Berardi).4
  • Continued strong cash flow generation: $183 million cash generated from operations, and record quarterly free cash flow from continuing operations of $144 million, with all producing assets contributing.1
  • Building balance sheet strength: Cash balance of $588 million, providing strategic flexibility, benefiting from free cash flow and cash proceeds from Casa Berardi sale.
  • Transition to net cash: Total debt of $266 million and cash and cash equivalents of $588 million, marking a significant strategic inflection point to net cash at quarter end.
  • Subsequent to Quarter End: On April 9, 2026, the Company redeemed its remaining $263 million of 7.25% Senior Notes, leaving the Company with no long-term debt, an undrawn $225 million revolving credit facility with an additional $75 million accordion feature — the strongest balance sheet in the Company's recent history.

Operational Performance:

  • Operations:
    • 3.9 million ounces of silver produced, an increase of 3% compared to prior quarter.
    • Consolidated total cost of sales of $158 million, with silver cash cost of ($3.24) per ounce and AISC of $8.17 per ounce (both after by-product credits and excluding Keno Hill).2,3
    • Production and cost guidance reiterated.
  • Individual Mine Performance:
    • Greens Creek: Produced nearly 2.2 million ounces of silver and nearly 13 thousand ounces of gold. Total cost of sales in first quarter 2026 of $82 million, with silver cash cost of ($11.94) per ounce and AISC of ($8.39) per ounce (both after by-product credits).2,3 This represents a dramatic improvement from the first quarter of 2025, when AISC was ($0.03) per ounce, driven by better production and significantly higher gold by-product credits reflecting the rise in realized gold prices. Greens Creek achieved a record for underground backfill placement, placing nearly 164 thousand tons in the quarter -16% above the 2025 quarterly average - enhancing operational flexibility for the remainder of the year.
    • Lucky Friday: Silver production of 1.2 million ounces. Total cost of sales of $49 million, with silver cash cost of $12.07 per ounce and AISC of $23.78 per ounce (both after by-product credits).2,3 Construction of the surface cooling project continued with the project 81% complete and tracking for completion by mid-2026.
    • Keno Hill: Achieved its fourth consecutive positive free cash flow quarter, demonstrating Keno Hill's profitability at current throughput rates and silver prices.1 Silver production of 0.5 million ounces, impacted by Yukon Energy's reduced power supply related to extreme cold weather continuing from prior quarter and lower silver milled grade. Silver grade mined and milled expected to increase in second quarter.

Rob Krcmarov, President and Chief Executive Officer, said: “The first quarter demonstrates the strength of the platform we have built. The closing of the Casa Berardi sale sharpened our focus on silver and enabled us to redeem our Senior Notes in April, leaving Hecla debt-free with a $225 million undrawn revolver and the strongest balance sheet in the Company’s recent history. What further excites me is the quality of the organic growth initiatives advancing across our portfolio — from the Greens Creek pyrite concentrate circuit and potential Midas restart to our near-doubling of exploration investment in 2026. These opportunities, backed by a debt-free balance sheet and world-class operations, position Hecla to deliver compelling long-term value with best-in-class silver exposure."

FINANCIAL AND OPERATIONAL OVERVIEW

In the following table and throughout this release, "total cost of sales" is comprised of cost of sales and other direct production costs and depreciation, depletion and amortization; "prior quarter" refers to the fourth quarter of 2025. All information in the table below is presented on a continuing operations basis.

In thousands (except per ounce amounts)

1Q-2026

4Q-2025

3Q-2025

2Q-2025

1Q-2025

FY 2025

Financial Highlights

 

 

 

 

 

 

Sales

$411,433

$363,578

$315,998

$218,992

$205,334

$1,103,902

Total cost of sales

$158,178

$150,077

$174,336

$133,712

$136,653

$594,096

Gross profit

$253,255

$213,501

$141,662

$85,280

$68,681

$509,806

Net income from continuing operations

$164,653

$112,742

$80,113

$26,910

$24,339

$244,104

Basic income per common share (in dollars) from continuing operations

$0.25

$0.17

$0.12

$0.04

$0.04

$0.37

Adjusted EBITDA from continuing operations 4

$265,104

$201,654

$146,441

$93,711

$77,269

$519,075

Cash provided by operating activities from continuing operations

$182,922

$165,742

$101,409

$108,407

$27,622

$403,180

Capital investment in continuing operations

$(39,265)

$(65,936)

$(44,425)

$(42,676)

$(37,838)

$(190,875)

Free cash flow from continuing operations 1

$143,657

$99,806

$56,984

$65,731

$(10,216)

$212,305

 

 

 

 

 

 

 

Free cash flow 1 by operation

 

 

 

 

 

 

Greens Creek

 

 

 

 

 

 

Cash flow from operations

$131,368

$101,902

$83,408

$75,371

$43,858

$304,539

Exploration

$276

$743

$3,228

$2,049

$343

$6,363

Capital investment

$(6,113)

$(23,282)

$(12,179)

$(8,397)

$(10,759)

$(54,617)

Free cash flow 1

$125,531

$79,363

$74,457

$69,023

$33,442

$256,285

Lucky Friday

 

 

 

 

 

 

Cash flow from operations

$64,619

$56,869

$29,279

$20,650

$23,805

$130,603

Exploration

$991

$885

$1,054

$169

$-

$2,108

Capital investment

$(17,018)

$(24,680)

$(16,865)

$(15,942)

$(15,446)

$(72,933)

Free cash flow 1

$48,592

$33,074

$13,468

$4,877

$8,359

$59,778

Keno Hill

 

 

 

 

 

 

Cash flow from operations

$29,570

$33,028

$22,109

$16,445

$(9,661)

$61,921

Exploration

$1,356

$365

$975

$3,344

$1,692

$6,376

Capital investment

$(15,025)

$(15,964)

$(14,747)

$(17,045)

$(10,436)

$(58,192)

Free cash flow 1

$15,901

$17,429

$8,337

$2,744

$(18,405)

$10,105

 

 

 

 

 

 

 

Metals Prices

 

 

 

 

 

 

Average metal prices

 

 

 

 

 

 

Silver - London PM Fix, $/ounce

$84.39

$54.83

$39.38

$33.63

$31.91

$39.94

Gold - London PM Fix, $/ounce

$4,875

$4,142

$3,456

$3,279

$2,863

$3,435

Lead - LME Final Cash Buyer, $/pound

$0.88

$0.89

$0.89

$0.88

$0.89

$0.89

Zinc - LME Final Cash Buyer, $/pound

$1.47

$1.44

$1.28

$1.20

$1.29

$1.30

Realized Prices

 

 

 

 

 

 

Silver, $/ounce

$82.70

$69.28

$42.58

$34.82

$33.59

$45.25

Gold, $/ounce

$4,899

$4,210

$3,509

$3,314

$2,940

$3,490

Lead, $/pound

$0.98

$0.97

$0.93

$0.92

$0.92

$0.94

Zinc, $/pound

$1.41

$1.45

$1.48

$1.31

$1.29

$1.39

FIRST QUARTER RESULTS

Sales of $411 million, increased 13% compared to the prior quarter, primarily reflecting higher realized precious metals prices, due largely to a rising price environment, partly offset by lower precious metals sales volumes. Payable silver sold was about 4% lower compared to the prior quarter, primarily driven by lower production at Keno Hill.

Net income from continuing operations of $165 million, or $0.25 per share compared to $113 million in the prior quarter (in each case from continuing operations, excluding Casa Berardi). The improvement was primarily related to:

  • A 13% increase in revenue from continuing operations due primarily to higher realized silver, gold and lead prices.

Partly offset by:

  • Lower payable silver and gold volumes sold.
  • An increase in depreciation expense of $3 million due primarily to higher expense at Greens Creek, related to higher production and volumes sold.
  • An increase in cost of sales of $2 million primarily related to labor costs at Lucky Friday (related to STIP payments), and contractor and fuel costs at Greens Creek.
  • An increase in tax expense of $25 million primarily related to higher profitability.

Adjusted EBITDA from continuing operations was $265 million from continuing operations, 31% higher than the prior quarter (in each period, excluding Casa Berardi).4

Cash and cash equivalents at March 31, 2026, were $588 million and included no draws on the revolving credit facility.

Cash provided by operating activities from continuing operations was $183 million, up 10% over the prior quarter, primarily attributable to elevated metal prices realized for silver, gold and lead, partly offset by lower volumes of payable silver and gold ounces sold and lower realized zinc price (in each period, excluding Casa Berardi). Cash provided by operating activities was negatively impacted by a $43 million increase in accounts receivable due to elevated metal prices and timing of concentrate shipments at Greens Creek. This increase is solely tied to the increase in metal value of concentrate receivables as of March 31, 2026, with the majority of the receivables collected in April 2026.

Capital investment from continuing operations was $39 million, a decrease of $27 million compared to the prior quarter (in each period, excluding Casa Berardi). Capital investment is expected to ramp up in the second quarter with the warmer construction months and remain elevated in the third quarter as numerous projects are advanced across the portfolio in the construction season. We also continue to invest in corporate projects in 2026 geared toward improving business planning and operations initiatives.

Free cash flow from continuing operations was a record $144 million, compared to $100 million in the prior quarter, with the increase primarily due to higher cash flow from operations and lower capital investment (in each period, excluding Casa Berardi).1

In thousands (except per ounce amounts)

1Q-2026

4Q-2025

3Q-2025

2Q-2025

1Q-2025

FY 2025

Operational Highlights

 

 

 

 

 

 

Milled tons (tons)

 

 

 

 

 

 

Greens Creek

208,922

200,952

227,587

230,221

212,899

871,659

Lucky Friday

108,608

98,499

105,329

114,475

108,745

427,048

Keno Hill

24,274

24,417

29,740

26,771

27,411

108,339

Milled silver grade - (opt)

 

 

 

 

 

 

Greens Creek

13.0

12.2

13.1

13.4

11.8

12.6

Lucky Friday

11.9

13.4

13.4

12.5

13.0

13.0

Keno Hill

20.8

25.4

31.8

28.9

29.0

29.0

Silver production

 

 

 

 

 

 

Greens Creek, ounces

2,177,142

1,951,784

2,347,674

2,422,978

2,002,560

8,724,996

Lucky Friday, ounces

1,237,288

1,250,204

1,337,353

1,340,877

1,332,252

5,260,686

Keno Hill, ounces

488,719

597,020

898,328

750,712

772,430

3,018,490

Total, ounces

3,903,149

3,799,008

4,583,355

4,514,567

4,107,242

17,004,172

Gold production

 

 

 

 

 

 

Greens Creek, ounces

12,886

12,256

15,584

17,750

13,759

59,349

Silver payable ounces sold

3,575,018

3,732,076

4,463,356

3,522,975

3,512,749

15,236,377

Gold payable ounces sold

11,533

10,484

14,277

11,634

10,478

46,873

Concentrate volumes produced and sold

 

 

 

 

 

 

Greens Creek

 

 

 

 

 

 

Silver concentrate produced, tons

16,321

14,896

17,180

17,985

15,541

65,602

Silver concentrate sold, tons

16,295

17,333

18,954

13,789

15,496

65,572

Zinc concentrate produced, tons

18,474

17,485

18,548

20,936

18,228

75,197

Zinc concentrate sold, tons

18,467

18,918

20,065

17,987

18,384

75,354

Precious metal concentrate produced, tons

8,063

5,571

6,379

8,316

7,515

27,781

Precious metal concentrate sold, tons

15,603

-

8,743

8,061

8,330

25,134

Lucky Friday

 

 

 

 

 

 

Silver concentrate produced, tons

12,635

12,283

13,796

13,212

12,934

52,225

Silver concentrate sold, tons

12,382

12,590

13,726

12,992

13,224

52,532

Zinc concentrate produced, tons

6,352

6,269

6,869

6,940

6,677

26,755

Zinc concentrate sold, tons

6,185

7,220

6,178

6,756

7,486

27,640

Keno Hill

 

 

 

 

 

 

Silver concentrate produced, tons

901

1,165

2,056

1,688

1,765

6,674

Silver concentrate sold, tons

806

2,380

2,380

1,614

1,217

7,591

Precious metals concentrate produced, tons

783

815

1,398

907

785

3,905

Precious metals concentrate sold, tons (a)

798

1,023

1,258

925

623

3,829

Total Silver Cash Costs and AISC, each after by-product credits

 

 

 

 

 

 

Silver cash costs per ounce 2

$(3.24)

$(0.23)

$(2.03)

$(5.46)

$1.29

$(1.75)

Silver AISC per ounce 3

$8.17

$18.11

$11.01

$5.19

$11.91

$11.28

Greens Creek Cash Costs and AISC, each after by-product credits

 

 

 

 

 

 

Silver cash costs per ounce 2

$(11.94)

$(6.67)

$(8.50)

$(11.91)

$(4.08)

$(8.02)

Silver AISC per ounce 3

$(8.39)

$2.70

$(2.55)

$(8.19)

$(0.03)

$(2.36)

Lucky Friday Cash Costs and AISC, each after by-product credits

 

 

 

 

 

 

Silver cash costs per ounce 2

$12.07

$9.82

$9.33

$6.19

$9.37

$8.66

Silver AISC per ounce 3

$23.78

$25.73

$23.30

$19.07

$20.08

$21.98

(a) Precious metals concentrates include intersegment sales to Greens Creek.

Consolidated silver production of 3.9 million ounces, nearly 3% higher than the prior quarter, driven by Greens Creek, partly offset by Lucky Friday where 10% higher mill throughput was more than offset by an 11% decline in head grade, and by Keno Hill, where production decreased 18% as mining advanced through a lower-grade zone of the Bermingham deposit and experienced mine sequencing delays at Flame and Moth deposit due to power constraints resulting from extreme cold weather. Lucky Friday and Keno Hill's milled grade is expected to increase in the second quarter, in the latter case as mine sequencing improves, high grade stopes develop, and ore stockpiles build. Keno Hill is profitable at current throughput rates and prices, with achieving 440 tons per day (“tpd”), its permitted capacity, remaining the medium-term objective. Achieving sustained production at that level requires completing key infrastructure investments and obtaining amendments to the Company’s Quartz Mining License and Water License, a multi-year process.

Gold production from Greens Creek of 13 thousand ounces was 5% higher than the prior quarter.

Silver payable ounces sold of 3.6 million ounces, 4% lower than the prior quarter, primarily due to lower payable ounces sold at Keno Hill.

Gold payable ounces sold of 12 thousand ounces, 10% higher than the prior quarter.

Concentrate volumes produced and sold were higher at Greens Creek, with Lucky Friday concentrate production up modestly with sales lower, and lower at Keno Hill compared to the prior quarter. Shipment of the silver and zinc concentrates roughly matched production at Greens Creek, with shipments of the precious metals concentrate catching up on built up inventory in the prior quarter. Concentrates sold at Lucky Friday were lower than produced volumes. At Keno Hill, the silver concentrate sold was nearly 90% of the volume produced, and precious metals concentrates sales closely matched production volumes.

Consolidated silver total cost of sales was $158 million, an increase of $8 million (5%) over the prior quarter, primarily due to $6 million higher depreciation, depletion and amortization expense.

Silver cash costs and AISC per silver ounce, each after by-product credits and excluding Keno Hill, were ($3.24) and $8.17, respectively, lower versus the prior quarter, primarily due to higher ounces produced, $13 million higher by-product credits, mostly associated with Greens Creek, and $3 million lower general and administrative expense, partly offset by $3 million higher cash costs and $1 million higher treatment charges. Decrease in AISC compared to the prior quarter was driven by the items noted above impacting cash costs as well as $16 million lower sustaining capital investment, mostly associated with Greens Creek.2,3

PROJECT PIPELINE UPDATE

Hecla continues to advance a portfolio of organic growth initiatives that leverage existing infrastructure, established permitting pathways, and the Company's deep operating expertise. The projects highlighted below represent projected low-capital-intensity opportunities with the potential to meaningfully grow precious metal production and/or cash flows and net asset value over time, without requiring the Company to assume the exploration or development risk associated with greenfield projects.

Greens Creek Pyrite Concentrate Circuit

The Company is evaluating the feasibility and economic potential of developing a pyrite concentrate circuit at the Greens Creek mill in Alaska. If successful, the project would generate an additional marketable concentrate boosting overall silver and gold recoveries from the mill while potentially significantly reducing the mine's reclamation liability. Additional upside could come from an expansion of the mineral reserves for the underground mine through the inclusion of lower silver grade blocks and/or sulphur rich blocks in the mineral reserve and resource block model. The project would require a mill expansion, which is currently estimated to require minimal capital investment to execute. The Company expects to provide a project update in late 2026 or early 2027.

Greens Creek Tailings Reprocessing Project

The Greens Creek tailings reprocessing project represents a compelling near-term value creation opportunity within the Company's portfolio, though meaningful work remains before that value can be realized. The project is currently advancing through a multi-phase metallurgical study with a third party, with Phase 3 test work scheduled to be completed mid-2026 — a critical milestone that will inform the path forward. As of year end 2025, the Greens Creek dry-stack tailings facility held an estimated 10.4 million tons of tailings, containing an estimated 50 million ounces of silver and nearly 600 thousand ounces of gold along with several other critical minerals, with a combined estimated in-situ gross metal value of approximately $6.8 billion, before any processing or sales costs. While current results suggest the project could be relatively low in capital intensity to bring into a cash-flowing state, testing and finding a suitable processing facility remain in early stages. The project also carries the additional benefit of potentially reducing the mine's long-term reclamation liability by reprocessing all or a portion of the existing tailings.

Midas Restart Project

Hecla continues to evaluate the potential to restart the existing and permitted Midas mill in northern Nevada, a historic high-grade gold and silver operation. Midas benefits from fully permitted infrastructure that has the potential to reduce the capital required to restart the operation, and the Company is working to expand the existing high-grade gold and silver resource to the scale needed to warrant that restart. Midas is a potential hub-and-spoke operating model, where ore sources could come from multiple regional sources and fed into the 1,200 tpd mill. There is also a permitted tailings facility on site which, with some improvements, has storage capacity of approximately 15 years at nameplate capacity of the mill.

The Company has allocated $16 million of the 2026 exploration budget for the Nevada project portfolio, more than three times the investment made in 2025. The 2026 drill program at Midas is focused on following up on the success of the 2025 drill program with a heavy focus on the Sinter Offset Zone and the Pogo target. The nearby Hollister high-grade gold and silver project is within trucking distance of the Midas mill and drilling is currently scheduled to begin on this regional project late in the second quarter. The Company aims to provide regular exploration updates for the Nevada exploration projects throughout 2026.

EXPLORATION AND PRE-DEVELOPMENT

Investment and Strategy

During Q1 2026, the Company invested $4.6 million in exploration and corporate development (including $0.3 million in pre-development) activities, focused on high-impact discovery drilling at Midas in Nevada and Keno Hill in Yukon, and resource expansion programs at producing assets. Exploration activity is planned to ramp up in the second and third quarters with core drills expected to increase from the 13 currently deployed to 19.

Producing Asset Resource Definition

Underground definition drilling programs at Greens Creek, Keno Hill, and Lucky Friday continue to define and expand mineralization near resource boundaries, converting Inferred resources and identifying reserve extension opportunities.

Greens Creek

Definition drilling at Greens Creek continued to delineate and step out from existing resources using three underground drilling rigs. Assay results have been received from the East, West, SWB, and Gallagher zones. Notable intercepts include 18.2 oz/ton silver, 0.07 oz/ton gold, 5.2% zinc, and 2.9% lead over 7.5 feet in the West Zone, and 34.9 oz/ton silver, 0.14 oz/ton gold, 6.2% zinc, and 3.1% lead over 5.6 feet in the SWB Zone.

Keno Hill

At Keno Hill, one definition drilling rig continued to define and expand mineralization in the Arctic Zone at the Bermingham Mine. A drillhole into the Bermingham Vein returned 106.6 oz/ton silver, 0.7% zinc, and 1.5% lead over 2.4 feet, upgrading the local resource.

Lucky Friday

Definition drilling has recommenced on the Intermediate veins at Lucky Friday, confirming mineable grade and widths in the 80 and 90 veins. Drilling highlights include an intercept of 42.1 oz/ton silver, 2.1% zinc, and 22.6% lead over 1.9 feet in the 90 vein.

EXPLORATION PROGRAMS

Nevada Exploration

Follow-up exploration drilling of the high-grade intercepts at the Sinter Offset Vein (previously reported in February 2026 and November 2025) returned one additional narrow, high-grade gold intercept. Drillhole DMC-476 returned 0.21 oz/ton gold and 1.6 oz/ton silver over 2.3 feet including 1.13 oz/ton gold and 6.6 oz/ton silver over 0.4 feet. This hole was a down dip offset from the previously reported intercept in DMC-475 and has extended the known vertical extent of narrow, high-grade mineralization along the Sinter Offset structure to more than 500 feet. Drilling to date has defined the strike-length of this structure over 1,350 feet and drilling in Q2 2026 will continue to step out to the southeast, where the structure is open and to the northwest where the location of the offsetting fault has not been formally constrained by drilling.

Two additional holes identified narrow high-grade gold mineralization on structures parallel to the Sinter Offset Vein. DMC-472 returned 0.19 oz/ton gold over 3.9 feet including 0.38 oz/ton gold over 1.6 feet in a footwall structure and DMC-477 returned 0.25 oz/ton gold and 1.0 oz/ton silver over 0.7 feet including 0.41 oz/ton gold and 1.5 oz/ton silver over 0.4 feet in a hangingwall structure. This series of parallel, narrow, and high-grade gold bearing structures is similar in geometry, and tenor to those encountered in the main Sinter Vein area further supporting the offset interpretation of this area as well as its continued prospectivity.

Keno Hill Exploration

Surface exploration at Keno Hill began mid-February and has ramped up to 3 core drills operating by mid-March. The 2026 program is planned to complete approximately 80,000 feet of drilling, primarily focused on resource expansion at the two operating mines in addition to testing regional targets. Initial drilling is focused on the Deep Bermingham target, targeting down-plunge extensions of high-grade mineralization below the existing Bermingham reserve following up on high grade intersections reported in 2025. Assays are pending for this drilling during the first quarter.

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

DIVIDENDS

Pursuant to the Company's dividend policy, the Board of Directors declared a quarterly cash dividend of $0.00375 per share of common stock payable on or about June 10, 2026, to stockholders of record on May 22, 2026.

Preferred Stock

The Board of Directors declared a quarterly cash dividend of $0.875 per share of Series B preferred stock, payable on or about July 1, 2026, to preferred stockholders of record on June 15, 2026.

CONFERENCE CALL AND WEBCAST

A conference call and webcast will be held on Wednesday, May 6, at 10:00 a.m. Eastern Time to discuss these results. The Company recommends that you dial in at least 10 minutes before the call commencement. You may join the conference call by dialing toll-free 1-833-461-5787 or for international dialing 1-585-542-9983. The Conference ID is 673381645 and must be provided when dialing in. Hecla's live and archived webcast can be accessed at https://events.q4inc.com/attendee/673381645 or www.hecla.com under Investors.

ABOUT HECLA

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

NOTES

Non-GAAP Financial Measures

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

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

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

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

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

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

Cautionary Statement Regarding Forward Looking Statements, Including 2026 Outlook

This news release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbor created by such sections and other applicable laws, including Canadian securities laws. Words such as "may", "will", "should", "expects", "intends", "projects", "believes", "estimates", "targets", "anticipates" and similar expressions are used to identify these forward-looking statements.

Such forward-looking statements may include, without limitation: (i) at Greens Creek, the Company’s organic growth initiatives consisting of the pyrite concentrate circuit and the dry‑stack tailings reprocessing project, which may generate additional marketable concentrates, increase silver and gold recoveries, reduce reclamation liabilities, expand underground mineral reserves, complete metallurgical test work (including Phase 3 test work scheduled for mid‑2026), achieve relatively low capital intensity to reach a cash‑flowing state, and support future project updates, including updates expected in late 2026 or early 2027; (ii) the Midas restart project has the potential to reduce the capital required to restart the operation through its fully permitted infrastructure, with Midas representing a potential hub-and-spoke operating model where ore sources could come from multiple regional sources fed into the 1,200 tpd mill, and the Company working to expand the existing high-grade gold and silver resource to the scale needed to warrant that restart, with regular exploration updates throughout 2026; (iii) the surface cooling project at Lucky Friday is expected to be completed by mid-2026; (iv) at Keno Hill, (a) silver grade mined and milled is expected to increase in the second quarter as mine sequencing improves and high-grade stopes develop; and (b) achieving 440 tons per day, its permitted capacity, remains the medium-term objective, requiring completion of key infrastructure investments and amendments to the Company’s Quartz Mining License and Water License, a multi-year process; (v) capital investment is expected to ramp up in the second quarter with the warmer construction months and remain elevated in the third quarter as numerous projects are advanced across the portfolio; (vi) exploration activity is planned to ramp up in the second and third quarters, with core drills expected to increase from 13 to 19, the 2026 Nevada drill program targeting follow-up of high-grade gold intercepts at Midas with Hollister drilling scheduled to begin late in the second quarter, and the Keno Hill program planned to complete approximately 80,000 feet of drilling focused on resource expansion; and (vii) the reaffirmation of previously issued guidance with respect to production and costs.

The material factors or assumptions used to develop such forward-looking statements or forward-looking information include that the Company’s plans for development and production will proceed as expected and will not require revision as a result of risks or uncertainties, whether known, unknown or unanticipated, to which the Company’s operations are subject. Estimates or expectations of future events or results are based upon certain assumptions, which may prove to be incorrect, which could cause actual results to differ from forward-looking statements. Such assumptions, include, but are not limited to: (i) there being no significant change to current geotechnical, metallurgical, hydrological and other physical conditions; (ii) permitting, development, operations and expansion of the Company’s projects being consistent with current expectations and mine plans; (iii) political/regulatory developments in any jurisdiction in which the Company operates being consistent with its current expectations; (iv) the exchange rate for the USD/CAD being approximately consistent with current levels; (v) certain price assumptions for gold, silver, lead and zinc; (vi) prices for key supplies being approximately consistent with current levels; (vii) the accuracy of our current mineral reserve and mineral resource estimates; (viii) there being no significant changes to the availability of employees, vendors and equipment; (ix) the Company’s plans for development and production will proceed as expected and will not require revision as a result of risks or uncertainties, whether known, unknown or unanticipated; (x) counterparties performing their obligations under hedging instruments and put option contracts; (xi) sufficient workforce is available and trained to perform assigned tasks; (xii) weather patterns and rain/snowfall within normal seasonal ranges so as not to impact operations; (xiii) relations with interested parties, including First Nations and Native Americans, remain productive; (xiv) maintaining availability of water rights; (xv) factors do not arise that reduce available cash balances; and (xvi) there being no material increases in our current requirements to post or maintain reclamation and performance bonds or collateral related thereto. In addition, material risks that could cause actual results to differ from forward-looking statements include but are not limited to: (i) gold, silver and other metals price volatility; (ii) operating risks; (iii) currency fluctuations; (iv) increased production costs and variances in ore grade or recovery rates from those assumed in mining plans; (v) community relations; and (vi) litigation, political, regulatory, labor and environmental risks. For a more detailed discussion of such risks and other factors, see the Company's 2025 Form 10-K filed on February 17, 2026 and Form 10-Q filed on May 5, 2026, for a more detailed discussion of factors that may impact expected future results, including with respect to permitting and infrastructure at Keno Hill for a more detailed discussion of factors that may impact expected future results. The Company undertakes no obligation and has no intention of updating forward-looking statements other than as may be required by law.

Cautionary Statements to Investors on Reserves and Resources

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

Qualified Person (QP)

Kurt D. Allen, MSc., CPG, VP-Exploration of Hecla Mining Company, Paul W. Jensen, MSc., CPG, Chief Geologist of Hecla Limited, and Matt Blattman, P.E., RM-SME, MMSA, VP-Technical Services serve as Qualified Persons under S-K 1300 and NI 43-101 for Hecla’s mineral projects. Mr. Allen supervised the preparation of the scientific and technical information concerning exploration activities while Mr. Jensen supervised the preparation of mineral resources for this news release. Mr. Blattman supervised the preparation of the mineral reserves for this news release. Technical Report Summaries for the Company’s Greens Creek, Lucky Friday and Keno Hill properties are filed as exhibits 96.1, 96.2 and 96.4, respectively, to the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, and are available at www.sec.gov. Information regarding data verification, surveys and investigations, quality assurance program and quality control measures and a summary of analytical or testing procedures for (i) the Greens Creek Mine are contained in its Technical Report Summary and in its NI 43-101 technical report titled “Technical Report for the Greens Creek Mine” effective date December 31, 2018, (ii) the Lucky Friday Mine are contained in its Technical Report Summary and in its NI 43-101 technical report titled “Technical Report for the Lucky Friday Mine Shoshone County, Idaho, USA” effective date April 2, 2014, and (iii) Keno Hill is contained in its Technical Report Summary titled “S-K 1300 Technical Report Summary on the Keno Hill Mine, Yukon, Canada” and in its NI 43-101 technical report titled “Technical Report on the Keno Hill Mine, Yukon, Canada” effective date December 31, 2023. Also included in each Technical Report Summary and technical report listed above is a description of the key assumptions, parameters and methods used to estimate mineral reserves and resources and a general discussion of the extent to which the estimates may be affected by any known environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant factors. Information regarding data verification, surveys and investigations, quality assurance program and quality control measures and a summary of sample, analytical or testing procedures are contained in NI 43-101 technical reports prepared for Klondex Mines Ltd. for (i) the Fire Creek Mine (technical report dated March 31, 2018), (ii) the Hollister Mine (technical report dated May 31, 2017, amended August 9, 2017), and (iii) the Midas Mine (technical report dated August 31, 2014, amended April 2, 2015). Information regarding data verification, surveys and investigations, quality assurance program and quality control measures and a summary of sample, analytical or testing procedures are contained in a NI 43-101 technical reports prepared for ATAC Resources Ltd. for (i) the Osiris Project (technical report dated July 28, 2022) and (ii) the Tiger Project (technical report dated February 27, 2020). Copies of these technical reports are available under the SEDAR profiles of Klondex Mines Unlimited Liability Company and ATAC Resources Ltd., respectively, at www.sedar.com (the Fire Creek technical report is also available under Hecla’s profile on SEDAR). Mr. Jensen reviewed and verified information regarding drill sampling, data verification of all digitally collected data, drill surveys and specific gravity determinations relating to all the mines. The review encompassed quality assurance programs and quality control measures including analytical or testing practice, chain-of-custody procedures, sample storage procedures and included independent sample collection and analysis. This review found the information and procedures meet industry standards and are adequate for Mineral Resource and Mineral Reserve estimation and mine planning purposes.

HECLA MINING COMPANY

Consolidated Statements of Operations

(dollars and shares in thousands, except per share amounts - unaudited)

 

 

 

Three Months Ended

 

 

March 31, 2026

 

December 31, 2025

Sales

 

$

411,433

 

 

$

363,578

 

Cost of sales and other direct production costs

 

 

124,410

 

 

 

122,150

 

Depreciation, depletion and amortization

 

 

33,768

 

 

 

27,927

 

Total cost of sales

 

 

158,178

 

 

 

150,077

 

Gross profit

 

 

253,255

 

 

 

213,501

 

 

 

 

 

 

Other operating expenses:

 

 

 

 

General and administrative

 

 

15,753

 

 

 

19,215

 

Exploration and pre-development

 

 

4,616

 

 

 

4,808

 

Ramp-up and suspension costs

 

 

3,246

 

 

 

3,277

 

Provision for closed operations and environmental matters

 

 

1,297

 

 

 

4,965

 

Other operating income

 

 

5,236

 

 

 

1,181

 

 

 

 

30,148

 

 

 

33,446

 

Income from continuing operations

 

 

223,107

 

 

 

180,055

 

Other expense:

 

 

 

 

Interest expense

 

 

(5,656

)

 

 

(5,382

)

Fair value adjustments, net

 

 

(5,945

)

 

 

(19,334

)

Foreign exchange gain (loss)

 

 

498

 

 

 

(2,196

)

Other income (expense), net

 

 

3,549

 

 

 

(5,635

)

 

 

 

(7,554

)

 

 

(32,547

)

Income before income and mining taxes

 

 

215,553

 

 

 

147,508

 

Income and mining tax provision

 

 

(50,900

)

 

 

(34,766

)

Net income from continuing operations

 

 

164,653

 

 

 

112,742

 

Net (loss) income from discontinued operations

 

 

(183,681

)

 

 

21,667

 

Net (loss) income

 

 

(19,028

)

 

 

134,409

 

Preferred stock dividends

 

 

(132

)

 

 

(138

)

Net (loss) income applicable to common stockholders

 

$

(19,160

)

 

$

134,271

 

Basic income per common share from continuing operations after preferred dividends

 

 

0.25

 

 

 

0.17

 

Basic (loss) income per common share from discontinued operations

 

 

(0.28

)

 

 

0.03

 

Basic (loss) income per common share after preferred dividends

 

 

(0.03

)

 

 

0.20

 

 

 

 

 

 

Diluted income per common share from continuing operations after preferred dividends

 

 

0.24

 

 

 

0.17

 

Diluted (loss) income per common share from discontinued operations

 

 

(0.27

)

 

 

0.03

 

Diluted (loss) income per common share after preferred dividends

 

 

(0.03

)

 

 

0.20

 

Weighted average number of common shares outstanding basic

 

 

670,392

 

 

 

669,874

 

Weighted average number of common shares outstanding diluted

 

 

675,154

 

 

 

673,797

 

 

HECLA MINING COMPANY

Consolidated Statements of Cash Flows

(dollars in thousands - unaudited)

 

 

 

Three Months Ended

 

 

March 31, 2026

 

December 31, 2025

OPERATING ACTIVITIES

 

 

 

 

Net (loss) income

 

$

(19,028

)

 

$

134,409

 

Less: Net (loss) income from discontinued operations, net of taxes

 

 

(183,681

)

 

 

21,667

 

Income from continuing operations

 

 

164,653

 

 

 

112,742

 

 

 

 

 

 

Non-cash elements included in net income:

 

 

 

 

Depreciation, depletion and amortization

 

 

34,468

 

 

 

31,185

 

Inventory adjustments

 

 

—

 

 

 

8,501

 

Fair value adjustments, net

 

 

5,945

 

 

 

19,526

 

Provision for reclamation and closure costs

 

 

1,871

 

 

 

5,513

 

Stock-based compensation

 

 

2,784

 

 

 

3,356

 

Deferred income taxes

 

 

27,878

 

 

 

27,338

 

Net foreign exchange gain (loss)

 

 

(498

)

 

 

2,196

 

Other non-cash items, net

 

 

1,759

 

 

 

9,069

 

Change in assets and liabilities:

 

 

 

 

Accounts receivable

 

 

(42,968

)

 

 

(65,715

)

Inventories

 

 

483

 

 

 

(13,434

)

Other current and non-current assets

 

 

(19,085

)

 

 

10,700

 

Accounts payable, accrued and other current liabilities

 

 

(777

)

 

 

2,104

 

Accrued payroll and related benefits

 

 

(15,317

)

 

 

11,171

 

Accrued taxes

 

 

21,503

 

 

 

5,348

 

Accrued reclamation and closure costs and other non-current liabilities

 

 

223

 

 

 

(3,858

)

Cash provided by operating activities of continuing operations

 

 

182,922

 

 

 

165,742

 

Cash provided by operating activities of discontinued operations

 

 

11,324

 

 

 

51,313

 

Net cash provided by operating activities

 

 

194,246

 

 

 

217,055

 

INVESTING ACTIVITIES

 

 

 

 

Additions to property, plants, equipment and mine development

 

 

(39,265

)

 

 

(65,936

)

Proceeds from sale of Hecla Quebec, net of transaction costs

 

 

168,045

 

 

 

—

 

Proceeds from sale of Minera Hecla

 

 

5,228

 

 

 

—

 

Proceeds from investment sales

 

 

95,378

 

 

 

24,391

 

Purchases of investments

 

 

(55,684

)

 

 

(21,932

)

Purchases of silver puts

 

 

—

 

 

 

(25,000

)

Proceeds from asset dispositions

 

 

735

 

 

 

20

 

Net cash provided by (used in) investing activities of continuing operations

 

 

174,437

 

 

 

(88,457

)

Net cash (used in) investing activities of discontinued operations

 

 

(8,799

)

 

 

(16,410

)

Net cash provided by (used in) investing activities

 

 

165,638

 

 

 

(104,867

)

FINANCING ACTIVITIES

 

 

 

 

Proceeds from issuance of stock, net

 

 

63

 

 

 

—

 

Acquisition of treasury shares

 

 

(1,161

)

 

 

—

 

Dividends paid to common and preferred stockholders

 

 

(2,786

)

 

 

(2,699

)

Repayments of finance leases and other

 

 

(1,249

)

 

 

(1,418

)

Net cash used in financing activities of continuing operations

 

 

(5,133

)

 

 

(4,117

)

Net cash used in financing activities of discontinued operations

 

 

(8,431

)

 

 

(654

)

Net cash used in financing activities

 

 

(13,564

)

 

 

(4,771

)

Effect of exchange rates on cash

 

 

(330

)

 

 

233

 

Net increase in cash, cash equivalents and restricted cash and cash equivalents

 

 

345,990

 

 

 

107,650

 

Cash, cash equivalents and restricted cash and cash equivalents at beginning of period

 

 

242,732

 

 

 

135,082

 

Cash, cash equivalents and restricted cash and cash equivalents at end of period

 

$

588,722

 

 

$

242,732

 

 

HECLA MINING COMPANY

Consolidated Balance Sheets

(dollars and shares in thousands - unaudited)

 

 

 

March 31, 2026

 

December 31, 2025

ASSETS

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

587,550

 

 

$

241,558

 

Accounts receivable

 

 

242,149

 

 

 

182,249

 

Inventories

 

 

80,336

 

 

 

81,687

 

Other current assets

 

 

47,606

 

 

 

83,065

 

Assets of discontinued operations

 

 

—

 

 

 

40,785

 

Total current assets

 

 

957,641

 

 

 

629,344

 

Investments

 

 

158,481

 

 

 

47,842

 

Restricted cash and cash equivalents

 

 

1,172

 

 

 

1,174

 

Properties, plants, equipment and mine development, net

 

 

2,123,209

 

 

 

2,130,581

 

Operating lease right-of-use assets

 

 

18,435

 

 

 

8,859

 

Other non-current assets

 

 

117,355

 

 

 

31,901

 

Assets of discontinued operations

 

 

—

 

 

 

710,944

 

Total assets

 

$

3,376,293

 

 

$

3,560,645

 

 

 

 

 

 

LIABILITIES

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable and other current accrued liabilities

 

$

156,338

 

 

$

126,364

 

Finance leases

 

 

3,601

 

 

 

4,262

 

Accrued reclamation and closure costs

 

 

12,402

 

 

 

13,795

 

Accrued interest

 

 

2,906

 

 

 

7,678

 

Other current liabilities

 

 

18,602

 

 

 

39,107

 

Liabilities of discontinued operations

 

 

—

 

 

 

40,358

 

Total current liabilities

 

 

193,849

 

 

 

231,564

 

Accrued reclamation and closure costs

 

 

114,002

 

 

 

112,491

 

Long-term debt including finance leases

 

 

262,646

 

 

 

263,171

 

Deferred tax liability

 

 

194,069

 

 

 

157,585

 

Other non-current liabilities

 

 

40,914

 

 

 

33,912

 

Liabilities of discontinued operations

 

 

—

 

 

 

170,276

 

Total liabilities

 

 

805,480

 

 

 

968,999

 

 

 

 

 

 

STOCKHOLDERS’ EQUITY

 

 

 

 

Preferred stock

 

 

39

 

 

 

39

 

Common stock

 

 

169,779

 

 

 

169,689

 

Capital surplus

 

 

2,647,282

 

 

 

2,643,211

 

Accumulated deficit

 

 

(203,819

)

 

 

(182,143

)

Accumulated other comprehensive loss, net

 

 

(5,491

)

 

 

(3,334

)

Treasury stock

 

 

(36,977

)

 

 

(35,816

)

Total stockholders’ equity

 

 

2,570,813

 

 

 

2,591,646

 

Total liabilities and stockholders’ equity

 

$

3,376,293

 

 

$

3,560,645

 

Common shares outstanding

 

 

679,582

 

 

 

679,220

 

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

The tables below present reconciliations between the most comparable GAAP measure of total cost of sales to the non-GAAP measures of (i) Cash Cost, Before By-product Credits, (ii) Cash Cost, After By-product Credits, (iii) AISC, Before By-product Credits and (iv) AISC, After By-product Credits for our operations and for the Company for the three months ended March 31, 2026, the three months and year ended December 31, 2025, and the three months ended September 30, 2025, June 30, 2025, and March 31.

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 the Company reports them are the same as those reported by other mining companies.

Cash Cost, After By-product Credits, per Ounce is an important operating statistic that the Company utilizes to measure each mine's operating performance. The Company uses 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 the Company reports, 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.

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. The Company also uses these measurements for the comparative monitoring of performance of our mining operations period-to-period from a cash flow perspective.

In thousands (except per ounce amounts)

 

Three Months Ended March 31, 2026

 

Three Months Ended December 31, 2025

 

Twelve Months Ended December 31, 2025

 

 

Greens
Creek

 

Lucky
Friday

 

Keno
Hill (4)

 

Corporate (2)

 

Other (3)

 

Total
Silver
and Other

 

Greens
Creek

 

Lucky
Friday

 

Keno
Hill (4)

 

Corporate (2)

 

Other (3)

 

Total
Silver
and Other

 

Greens
Creek

 

Lucky
Friday

 

Keno
Hill (4)

 

Corporate (2)

 

Other (3)

 

Total
Silver
and Other

Total cost of sales

 

$

82,358

 

 

$

48,782

 

 

$

22,099

 

 

$

—

 

$

4,939

 

 

$

158,178

 

 

$

79,963

 

 

$

42,714

 

 

$

18,729

 

 

$

—

 

$

8,671

 

 

$

150,077

 

 

$

290,180

 

 

$

173,690

 

 

$

91,652

 

 

$

—

 

$

38,574

 

 

$

594,096

 

Depreciation, depletion and amortization

 

 

(15,983

)

 

 

(13,609

)

 

 

(4,176

)

 

 

—

 

 

—

 

 

 

(33,768

)

 

 

(13,244

)

 

 

(10,884

)

 

 

(3,798

)

 

 

—

 

 

—

 

 

 

(27,926

)

 

 

(55,959

)

 

 

(51,055

)

 

 

(19,769

)

 

 

—

 

 

—

 

 

 

(126,783

)

Treatment costs

 

 

895

 

 

 

2,553

 

 

 

—

 

 

 

—

 

 

—

 

 

 

3,448

 

 

 

242

 

 

 

2,283

 

 

 

-

 

 

 

—

 

 

—

 

 

 

2,525

 

 

 

948

 

 

 

9,734

 

 

 

-

 

 

 

—

 

 

—

 

 

 

10,682

 

Change in product inventory

 

 

(5,383

)

 

 

(1

)

 

 

—

 

 

 

—

 

 

—

 

 

 

(5,384

)

 

 

(4,485

)

 

 

(338

)

 

 

—

 

 

 

—

 

 

—

 

 

 

(4,823

)

 

 

(1,258

)

 

 

(6

)

 

 

—

 

 

 

—

 

 

—

 

 

 

(1,264

)

Reclamation and other costs

 

 

(846

)

 

 

(195

)

 

 

—

 

 

 

—

 

 

—

 

 

 

(1,041

)

 

 

(537

)

 

 

(283

)

 

 

—

 

 

 

—

 

 

—

 

 

 

(820

)

 

 

(1,502

)

 

 

(857

)

 

 

—

 

 

 

—

 

 

—

 

 

 

(2,359

)

Exclusion of Keno Hill cash costs (4)

 

 

—

 

 

 

—

 

 

 

(17,923

)

 

 

—

 

 

 

 

(17,923

)

 

 

—

 

 

 

—

 

 

 

(14,931

)

 

 

—

 

 

 

 

(14,931

)

 

 

—

 

 

 

—

 

 

 

(71,883

)

 

 

—

 

 

—

 

 

 

(71,883

)

Exclusion of Other costs

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

(4,939

)

 

 

(4,939

)

 

 

 

 

 

 

 

 

 

 

(8,671

)

 

 

(8,671

)

 

 

 

 

 

 

 

 

 

 

(38,574

)

 

 

(38,574

)

Cash Cost, Before By-product Credits (1)

 

 

61,041

 

 

 

37,530

 

 

 

—

 

 

 

—

 

 

—

 

 

 

98,571

 

 

 

61,939

 

 

 

33,492

 

 

 

—

 

 

 

—

 

 

—

 

 

 

95,431

 

 

 

232,409

 

 

 

131,506

 

 

 

—

 

 

 

—

 

 

—

 

 

 

363,915

 

Reclamation and other costs

 

 

934

 

 

 

225

 

 

 

—

 

 

 

—

 

 

—

 

 

 

1,159

 

 

 

757

 

 

 

195

 

 

 

—

 

 

 

—

 

 

—

 

 

 

952

 

 

 

3,029

 

 

 

780

 

 

 

—

 

 

 

—

 

 

—

 

 

 

3,809

 

Sustaining capital

 

 

6,795

 

 

 

14,263

 

 

 

—

 

 

 

1,008

 

 

—

 

 

 

22,066

 

 

 

17,516

 

 

 

19,693

 

 

 

—

 

 

 

1,342

 

 

—

 

 

 

38,551

 

 

 

46,362

 

 

 

69,316

 

 

 

—

 

 

 

5,165

 

 

—

 

 

 

120,843

 

General and administrative

 

 

—

 

 

 

—

 

 

 

—

 

 

 

15,753

 

 

—

 

 

 

15,753

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

19,215

 

 

—

 

 

 

19,215

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

57,626

 

 

—

 

 

 

57,626

 

AISC, Before By-product Credits (1)

 

 

68,770

 

 

 

52,018

 

 

 

—

 

 

 

16,761

 

 

—

 

 

 

137,549

 

 

 

80,212

 

 

 

53,380

 

 

 

—

 

 

 

20,557

 

 

—

 

 

 

154,149

 

 

 

281,800

 

 

 

201,602

 

 

 

—

 

 

 

62,791

 

 

—

 

 

 

546,193

 

By-product credits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Zinc

 

 

(25,369

)

 

 

—

 

 

 

—

 

 

 

—

 

 

—

 

 

 

(25,369

)

 

 

(23,715

)

 

 

(7,666

)

 

 

—

 

 

 

—

 

 

—

 

 

 

(31,381

)

 

 

(93,495

)

 

 

(28,939

)

 

 

—

 

 

 

—

 

 

—

 

 

 

(122,434

)

Gold

 

 

(55,214

)

 

 

—

 

 

 

—

 

 

 

—

 

 

—

 

 

 

(55,214

)

 

 

(44,708

)

 

 

—

 

 

 

—

 

 

 

—

 

 

—

 

 

 

(44,708

)

 

 

(180,497

)

 

 

—

 

 

 

—

 

 

 

—

 

 

—

 

 

 

(180,497

)

Lead

 

 

(6,037

)

 

 

(22,591

)

 

 

—

 

 

 

—

 

 

—

 

 

 

(28,628

)

 

 

(5,592

)

 

 

(13,549

)

 

 

—

 

 

 

—

 

 

—

 

 

 

(19,141

)

 

 

(24,963

)

 

 

(57,036

)

 

 

—

 

 

 

—

 

 

—

 

 

 

(81,999

)

Copper

 

 

(433

)

 

 

—

 

 

 

—

 

 

 

—

 

 

—

 

 

 

(433

)

 

 

(938

)

 

 

—

 

 

 

—

 

 

 

—

 

 

—

 

 

 

(938

)

 

 

(3,465

)

 

 

—

 

 

 

—

 

 

 

—

 

 

—

 

 

 

(3,465

)

Total By-product credits

 

 

(87,053

)

 

 

(22,591

)

 

 

—

 

 

 

—

 

 

—

 

 

 

(109,644

)

 

 

(74,953

)

 

 

(21,215

)

 

 

—

 

 

 

—

 

 

—

 

 

 

(96,168

)

 

 

(302,420

)

 

 

(85,975

)

 

 

—

 

 

 

—

 

 

—

 

 

 

(388,395

)

Cash Cost, After By-product Credits

 

$

(26,012

)

 

$

14,939

 

 

$

—

 

 

$

—

 

$

—

 

 

$

(11,073

)

 

$

(13,014

)

 

$

12,277

 

 

$

—

 

 

$

—

 

$

—

 

 

$

(737

)

 

$

(70,011

)

 

$

45,531

 

 

$

—

 

 

$

—

 

$

—

 

 

$

(24,480

)

AISC, After By-product Credits

 

$

(18,283

)

 

$

29,427

 

 

$

—

 

 

$

16,761

 

$

—

 

 

$

27,905

 

 

$

5,259

 

 

$

32,165

 

 

$

—

 

 

$

20,557

 

$

—

 

 

$

57,981

 

 

$

(20,620

)

 

$

115,627

 

 

$

—

 

 

$

62,791

 

$

—

 

 

$

157,798

 

Ounces produced

 

 

2,177

 

 

 

1,237

 

 

 

 

 

 

 

 

 

3,414

 

 

 

1,952

 

 

 

1,250

 

 

 

 

 

 

 

 

 

3,202

 

 

 

8,725

 

 

 

5,261

 

 

 

 

 

 

 

 

 

13,986

 

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

 

$

28.04

 

 

$

30.33

 

 

 

 

 

 

 

 

$

28.87

 

 

$

31.73

 

 

$

26.79

 

 

 

 

 

 

 

 

$

29.80

 

 

$

26.64

 

 

$

25.00

 

 

 

 

 

 

 

 

$

26.02

 

By-product credits per ounce

 

 

(39.98

)

 

 

(18.26

)

 

 

 

 

 

 

 

 

(32.11

)

 

 

(38.40

)

 

 

(16.97

)

 

 

 

 

 

 

 

 

(30.03

)

 

 

(34.66

)

 

 

(16.34

)

 

 

 

 

 

 

 

 

(27.77

)

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

 

$

(11.94

)

 

$

12.07

 

 

 

 

 

 

 

 

$

(3.24

)

 

$

(6.67

)

 

$

9.82

 

 

 

 

 

 

 

 

$

(0.23

)

 

$

(8.02

)

 

$

8.66

 

 

 

 

 

 

 

 

$

(1.75

)

AISC, Before By-product Credits, per Silver Ounce

 

$

31.59

 

 

$

42.04

 

 

 

 

 

 

 

 

$

40.28

 

 

$

41.10

 

 

$

42.70

 

 

 

 

 

 

 

 

$

48.14

 

 

$

32.30

 

 

$

38.32

 

 

 

 

 

 

 

 

$

39.05

 

By-product credits per ounce

 

 

(39.98

)

 

 

(18.26

)

 

 

 

 

 

 

 

 

(32.11

)

 

 

(38.40

)

 

 

(16.97

)

 

 

 

 

 

 

 

 

(30.03

)

 

 

(34.66

)

 

 

(16.34

)

 

 

 

 

 

 

 

 

(27.77

)

AISC, After By-product Credits, per Silver Ounce

 

$

(8.39

)

 

$

23.78

 

 

 

 

 

 

 

 

$

8.17

 

 

$

2.70

 

 

$

25.73

 

 

 

 

 

 

 

 

$

18.11

 

 

$

(2.36

)

 

$

21.98

 

 

 

 

 

 

 

 

$

11.28

 

In thousands (except per ounce amounts)

Three Months Ended September 30, 2025

 

Three Months Ended June 30, 2025

 

Three Months Ended March 31, 2025

 

Greens
Creek

Lucky
Friday

Keno
Hill (4)

Corporate (2)

Other (3)

Total
Silver
and Other

 

Greens
Creek

Lucky
Friday

Keno
Hill (4)

Corporate (2)

Other (3)

Total
Silver
and Other

 

Greens
Creek

Lucky
Friday

Keno
Hill (4)

Corporate (2)

Other (3)

Total
Silver
and Other

Total cost of sales

$

81,658

 

$

44,641

 

$

31,171

 

$

—

$

16,183

 

$

173,653

 

 

$

58,921

 

$

42,286

 

$

25,881

 

$

—

$

6,625

 

$

133,713

 

 

$

69,638

 

$

44,049

 

$

15,871

 

$

—

$

7,095

 

$

136,653

 

Depreciation, depletion and amortization

 

(16,229

)

 

(13,471

)

 

(8,028

)

 

—

 

—

 

 

(37,728

)

 

 

(12,897

)

 

(13,275

)

 

(5,141

)

 

—

 

—

 

 

(31,313

)

 

 

(13,589

)

 

(13,425

)

 

(2,802

)

 

—

 

—

 

 

(29,816

)

Treatment costs

 

(436

)

 

2,434

 

 

—

 

 

—

 

—

 

 

1,998

 

 

 

(1,001

)

 

1,054

 

 

—

 

 

—

 

—

 

 

53

 

 

 

2,143

 

 

3,963

 

 

—

 

 

—

 

—

 

 

6,106

 

Change in product inventory

 

(5,106

)

 

946

 

 

—

 

 

—

 

—

 

 

(4,160

)

 

 

9,234

 

 

225

 

 

—

 

 

—

 

—

 

 

9,459

 

 

 

(901

)

 

(839

)

 

—

 

 

—

 

—

 

 

(1,740

)

Reclamation and other costs

 

(715

)

 

(141

)

 

—

 

 

—

 

—

 

 

(856

)

 

 

57

 

 

(160

)

 

—

 

 

—

 

—

 

 

(103

)

 

 

(307

)

 

(273

)

 

—

 

 

—

 

—

 

 

(580

)

Exclusion of Keno Hill cash costs (4)

 

—

 

 

—

 

 

(23,143

)

 

—

 

 

(23,143

)

 

 

—

 

 

—

 

 

(20,740

)

 

—

 

—

 

 

(20,740

)

 

 

—

 

 

—

 

 

(13,069

)

 

—

 

—

 

 

(13,069

)

Exclusion of Other costs

 

—

 

 

—

 

 

—

 

 

—

 

(16,183

)

 

(16,183

)

 

 

—

 

 

—

 

 

—

 

 

—

 

(6,625

)

 

(6,625

)

 

 

—

 

 

—

 

 

—

 

 

—

 

(7,095

)

 

(7,095

)

Cash Cost, Before By-product Credits (1)

 

59,172

 

 

34,409

 

 

—

 

 

—

 

—

 

 

93,581

 

 

 

54,314

 

 

30,130

 

 

—

 

 

—

 

—

 

 

84,444

 

 

 

56,984

 

 

33,475

 

 

—

 

 

—

 

—

 

 

90,459

 

Reclamation and other costs

 

758

 

 

195

 

 

—

 

 

—

 

—

 

 

953

 

 

 

757

 

 

195

 

 

—

 

 

—

 

—

 

 

952

 

 

 

757

 

 

195

 

 

—

 

 

—

 

—

 

 

952

 

Sustaining capital

 

13,210

 

 

18,484

 

 

—

 

 

1,528

 

—

 

 

33,222

 

 

 

8,268

 

 

17,069

 

 

—

 

 

1,270

 

—

 

 

26,607

 

 

 

7,368

 

 

14,070

 

 

—

 

 

1,025

 

—

 

 

22,463

 

General and administrative

 

—

 

 

—

 

 

—

 

 

13,872

 

—

 

 

13,872

 

 

 

—

 

 

—

 

 

—

 

 

12,540

 

—

 

 

12,540

 

 

 

—

 

 

—

 

 

—

 

 

11,999

 

—

 

 

11,999

 

AISC, Before By-product Credits (1)

 

73,140

 

 

53,088

 

 

—

 

 

15,400

 

—

 

 

141,628

 

 

 

63,339

 

 

47,394

 

 

—

 

 

13,810

 

—

 

 

124,543

 

 

 

65,109

 

 

47,740

 

 

—

 

 

13,024

 

—

 

 

125,873

 

By-product credits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Zinc

 

(22,894

)

 

(7,203

)

 

—

 

 

—

 

—

 

 

(30,097

)

 

 

(23,512

)

 

(7,120

)

 

—

 

 

—

 

—

 

 

(30,632

)

 

 

(23,374

)

 

(6,950

)

 

—

 

 

—

 

—

 

 

(30,324

)

Gold

 

(48,618

)

 

—

 

 

—

 

 

—

 

—

 

 

(48,618

)

 

 

(52,194

)

 

—

 

 

—

 

 

—

 

—

 

 

(52,194

)

 

 

(34,977

)

 

—

 

 

—

 

 

—

 

—

 

 

(34,977

)

Lead

 

(6,670

)

 

(14,736

)

 

—

 

 

—

 

—

 

 

(21,406

)

 

 

(6,610

)

 

(14,708

)

 

—

 

 

—

 

—

 

 

(21,318

)

 

 

(6,091

)

 

(14,043

)

 

—

 

 

—

 

—

 

 

(20,134

)

Copper

 

(927

)

 

—

 

 

—

 

 

—

 

—

 

 

(927

)

 

 

(871

)

 

—

 

 

—

 

 

—

 

—

 

 

(871

)

 

 

(729

)

 

—

 

 

—

 

 

—

 

—

 

 

(729

)

Total By-product credits

 

(79,109

)

 

(21,939

)

 

—

 

 

—

 

—

 

 

(101,048

)

 

 

(83,187

)

 

(21,828

)

 

—

 

 

—

 

—

 

 

(105,015

)

 

 

(65,171

)

 

(20,993

)

 

—

 

 

—

 

—

 

 

(86,164

)

Cash Cost, After By-product Credits

$

(19,937

)

$

12,470

 

$

—

 

$

—

$

—

 

$

(7,467

)

 

$

(28,873

)

$

8,302

 

$

—

 

$

—

$

—

 

$

(20,571

)

 

$

(8,187

)

$

12,482

 

$

—

 

$

—

$

—

 

$

4,295

 

AISC, After By-product Credits

$

(5,969

)

$

31,149

 

$

—

 

$

15,400

$

—

 

$

40,580

 

 

$

(19,848

)

$

25,566

 

$

—

 

$

13,810

$

—

 

$

19,528

 

 

$

(62

)

$

26,747

 

$

—

 

$

13,024

$

—

 

$

39,709

 

Divided by silver ounces produced

 

2,348

 

 

1,337

 

 

 

 

 

3,685

 

 

 

2,423

 

 

1,341

 

 

 

 

 

3,764

 

 

 

2,003

 

 

1,332

 

 

 

 

 

3,335

 

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

$

25.20

 

$

25.73

 

 

 

 

$

25.39

 

 

$

22.42

 

$

22.47

 

 

 

 

$

22.44

 

 

$

28.46

 

$

25.13

 

 

 

 

$

27.13

 

By-product credits per ounce

 

(33.70

)

 

(16.40

)

 

 

 

 

(27.42

)

 

 

(34.33

)

 

(16.28

)

 

 

 

 

(27.90

)

 

 

(32.54

)

 

(15.76

)

 

 

 

 

(25.84

)

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

$

(8.50

)

$

9.33

 

 

 

 

$

(2.03

)

 

$

(11.91

)

$

6.19

 

 

 

 

$

(5.46

)

 

$

(4.08

)

$

9.37

 

 

 

 

$

1.29

 

AISC, Before By-product Credits, per Silver Ounce

$

31.15

 

$

39.70

 

 

 

 

$

38.43

 

 

$

26.14

 

$

35.35

 

 

 

 

$

33.09

 

 

$

32.51

 

$

35.84

 

 

 

 

$

37.75

 

By-product credits per ounce

 

(33.70

)

 

(16.40

)

 

 

 

 

(27.42

)

 

 

(34.33

)

 

(16.28

)

 

 

 

 

(27.90

)

 

 

(32.54

)

 

(15.76

)

 

 

 

 

(25.84

)

AISC, After By-product Credits, per Silver Ounce

$

(2.55

)

$

23.30

 

 

 

 

$

11.01

 

 

$

(8.19

)

$

19.07

 

 

 

 

$

5.19

 

 

$

(0.03

)

$

20.08

 

 

 

 

$

11.91

 

(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)

Other includes total cost of sales related to the Company's environmental remediation services business.

 

(4)

Keno Hill is in the ramp-up phase of production and is 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.

Reconciliation of Net Income from Continuing Operations (GAAP) to Adjusted EBITDA from Continuing Operations (non-GAAP)

This release refers to the non-GAAP measures of adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") from continuing operations, which is a measure of our operating performance. Adjusted EBITDA from continuing operations is calculated as net income from continuing operations before the following items: interest expense, income and mining taxes, depreciation, depletion, and amortization expense, ramp-up and suspension costs, gains and losses on disposition of assets, foreign exchange gains and losses, write down of property, plant and equipment, fair value adjustments, net, interest and other income, provisions for closed operations and environmental matters, stock-based compensation, provisional price gains, monetization of zinc and lead hedges and inventory adjustments. Management believes that, when presented in conjunction with comparable GAAP measures, adjusted EBITDA is useful to investors in evaluating our operating performance and ability to meet our debt obligations. The following table reconciles net income from continuing operations to adjusted EBITDA from continuing operations:

Dollars are in thousands

 

1Q-2026

 

4Q-2025

 

3Q-2025

 

2Q-2025

 

1Q-2025

 

LTM March
31, 2026

 

FY 2025

Net income from continuing operations

 

 

164,653

 

 

$

112,742

 

 

$

80,113

 

 

$

26,910

 

 

$

24,339

 

 

 

384,418

 

 

$

244,104

 

Interest expense

 

 

5,656

 

 

 

5,396

 

 

 

13,264

 

 

 

10,948

 

 

 

11,392

 

 

 

35,264

 

 

 

41,000

 

Income and mining tax provision

 

 

50,900

 

 

 

35,367

 

 

 

39,476

 

 

 

23,271

 

 

 

15,637

 

 

 

149,014

 

 

 

113,751

 

Depreciation, depletion and amortization

 

 

33,768

 

 

 

31,185

 

 

 

38,481

 

 

 

32,068

 

 

 

30,603

 

 

 

135,502

 

 

 

132,337

 

Ramp-up and suspension costs

 

 

3,246

 

 

 

2,060

 

 

 

2,003

 

 

 

2,421

 

 

 

2,135

 

 

 

9,730

 

 

 

8,619

 

Loss on disposition of properties, plants, equipment, and mineral interests

 

 

1,750

 

 

 

6

 

 

 

2,706

 

 

 

88

 

 

 

211

 

 

 

4,550

 

 

 

3,011

 

Foreign exchange (gain) loss

 

 

(498

)

 

 

2,196

 

 

 

(305

)

 

 

3,517

 

 

 

367

 

 

 

4,910

 

 

 

5,775

 

Fair value adjustments, net

 

 

5,945

 

 

 

19,334

 

 

 

(19,828

)

 

 

(4,450

)

 

 

(3,388

)

 

 

1,001

 

 

 

(8,332

)

Provisional price gains

 

 

(848

)

 

 

(28,993

)

 

 

(10,903

)

 

 

(4,150

)

 

 

(6,916

)

 

 

(44,894

)

 

 

(50,962

)

Provision for closed operations and environmental matters

 

 

1,297

 

 

 

4,965

 

 

 

1,268

 

 

 

844

 

 

 

790

 

 

 

8,374

 

 

 

7,867

 

Stock-based compensation

 

 

2,784

 

 

 

3,356

 

 

 

2,639

 

 

 

2,987

 

 

 

1,936

 

 

 

11,766

 

 

 

10,918

 

Inventory adjustments

 

 

—

 

 

 

8,501

 

 

 

51

 

 

 

812

 

 

 

1,558

 

 

 

9,364

 

 

 

10,922

 

Monetization of zinc and lead hedges

 

 

—

 

 

 

(72

)

 

 

(91

)

 

 

(44

)

 

 

(454

)

 

 

(207

)

 

 

(661

)

Other

 

 

(3,549

)

 

 

5,611

 

 

 

(2,433

)

 

 

(1,511

)

 

 

(941

)

 

 

(1,882

)

 

 

726

 

Adjusted EBITDA from continuing operations

 

$

265,104

 

 

$

201,654

 

 

$

146,441

 

 

$

93,711

 

 

$

77,269

 

 

$

706,910

 

 

$

519,075

 

Reconciliation of Cash Provided by Operating Activities from Continuing Operations (GAAP) to Free Cash Flow from Continuing Operations (non-GAAP)

This release refers to a non-GAAP measure of free cash flow from continuing operations, calculated as cash provided by operating activities from continuing operations, less additions to properties, plants, equipment and mine development. Management believes that, when presented in conjunction with comparable GAAP measures, free cash flow from continuing operations is useful to investors in evaluating our operating performance. The following table reconciles cash provided by operating activities from continuing operations to free cash flow from continuing operations:

Dollars are in thousands

 

Three Months Ended
March 31,

 

 

2026

 

 

2025

 

Cash provided by operating activities from continuing operations

 

$

182,922

 

 

$

27,622

 

Less: Capital investment from continuing operations

 

 

(39,265

)

 

 

(37,838

)

Free cash flow from continuing operations

 

$

143,657

 

 

$

(10,216

)

Free cash flow from continuing operations is a non-GAAP measure calculated as cash provided by operating activities from continuing operations less additions to properties, plants, equipment and mine development. Cash provided by operating activities from continuing operations for our silver operations, the Greens Creek and Lucky Friday operating segments, excludes exploration and pre-development investment, as it is a discretionary expenditure and not a component of the mines’ operating performance.

Table A

Assay Results – Q1 2026

 

Keno Hill (Yukon)

Zone

Drillhole
Number

Drillhole
Azm/Dip

Sample
From (feet)

Sample
To (feet)

True
Width (feet)

Silver
(oz/ton)

Gold
(oz/ton)

Lead (%)

Zinc (%)

Depth From
Surface
(feet)

Underground
Definition

Arctic, Bermingham Vein

BMUG26-259

136/-14

504.8

508.7

2.9

17.0

0.01

4.2

8.0

1,404

Arctic, Bermingham Vein

Including

136/-14

504.8

506.3

1.1

27.6

0.00

8.1

13.9

1,404

Arctic, Bermingham Vein

BMUG26-261

126/1

434.1

441.0

4.7

14.0

0.01

2.0

1.9

1,237

Arctic, Bermingham Vein

Including

126/1

436.3

437.7

1.0

44.2

0.01

4.9

3.3

1,237

Arctic, Bermingham Vein

BMUG26-262

120/1

429.1

433.1

2.4

106.6

0.01

1.5

0.7

1,224

Arctic, Bermingham Vein

BMUG26-263

121/-5

497.0

499.0

1.5

30.6

0.01

0.8

0.0

1,309

Arctic, Bermingham Vein

BMUG26-268

117/10

388.8

391.1

2.2

6.8

0.00

0.5

1.3

1,434

Greens Creek (Alaska)

Zone

Drillhole
Number

Drillhole
Azm/Dip

Sample
From (feet)

Sample
To (feet)

True
Width (feet)

Silver
(oz/ton)

Gold
(oz/ton)

Lead (%)

Zinc (%)

Depth From
Mine Portal
(feet)

Underground
Definition

EAST

GC6712

66 / 28

522.3

526.6

2.5

11.6

0.10

1.2

2.4

950

EAST

GC6712

66 / 28

531.0

540.0

5.8

5.9

0.06

2.4

7.4

957

EAST

GC6717

72 / 27

502.3

514.0

8.1

8.5

0.09

2.5

5.0

926

EAST

GC6718

63 / -31

156.8

173.0

15.0

15.5

0.16

0.5

1.1

632

EAST

GC6730

74 / 2

260.2

271.1

10.4

13.6

0.06

1.7

3.6

720

EAST

GC6730

74 / 2

280.7

286.9

5.9

18.2

0.03

2.6

7.8

720

EAST

GC6730

74 / 2

260.2

286.9

25.4

10.1

0.03

1.3

3.4

720

EAST

GC6736

182 / 79

35.7

36.9

1.2

40.0

0.18

2.8

5.3

-66

EAST

GC6740

115 / 71

12.7

17.1

4.4

8.5

0.01

2.9

5.9

-237

EAST

GC6740

115 / 71

30.0

32.8

2.6

16.4

0.01

1.8

4.7

-223

EAST

GC6740

115 / 71

215.7

237.8

19.1

9.5

0.63

3.7

4.5

-37

EAST

GC6741

155 / 74

9.5

15.0

4.5

12.7

0.01

1.7

4.9

-242

EAST

GC6741

155 / 74

27.7

30.7

2.9

17.0

0.01

3.5

7.2

-223

EAST

GC6741

155 / 74

199.0

204.0

4.6

11.1

0.02

13.0

17.3

-61

EAST

GC6741

155 / 74

225.5

226.5

1.0

5.4

0.01

6.8

9.5

-39

EAST

GC6743

199 / 66

194.4

197.5

3.1

8.8

0.01

11.0

13.3

-74

WEST

GC6739

131 / 89

13.0

20.5

5.9

14.2

0.04

2.2

4.7

-236

WEST

GC6739

131 / 89

37.7

45.3

7.5

18.2

0.07

2.9

5.2

-210

SWB

GC6746

101 / -32

64.5

73.7

9.1

36.4

0.16

3.0

5.5

-745

SWB

GC6748

50 / -34

37.7

44.8

6.9

28.3

0.16

1.4

2.4

-732

SWB

GC6749

41 / -68

56.6

59.9

2.3

9.2

0.04

1.8

2.8

-765

SWB

GC6750

345 / -44

67.5

76.1

8.2

32.5

0.13

3.9

7.1

-859

SWB

GC6750

345 / -44

63.0

81.1

17.2

15.9

0.06

1.9

3.4

-765

SWB

GC6751

290 / -84

94.6

100.0

4.9

23.1

0.03

8.5

16.3

-808

SWB

GC6752

63 / -81

169.0

181.0

5.6

34.9

0.14

3.1

6.2

-931

SWB

GC6753

131 / -72

203.1

205.9

1.5

14.2

0.03

1.5

3.4

-953

SWB

GC6757

63 / 42

350.6

353.9

3.3

16.0

0.02

4.1

7.5

-502

SWB

GC6757

63 / 42

389.2

391.6

2.4

8.1

0.03

3.0

10.3

-476

GAL

GC6668

61 / -79

88.5

94.3

5.0

4.0

0.04

5.4

10.3

-807

GAL

GC6686

206 / 36

51.0

58.0

6.9

14.4

0.03

1.0

2.2

-618

GAL

GC6705

147 / 57

76.3

80.9

4.3

7.0

0.01

4.6

9.1

-587

Underground
Exploration

GFB

GC6738

243 / -16

622.5

634.3

10.2

3.4

0.06

8.1

4.1

-1,489

GFB

GC6747

48 / -12

995.6

998.2

2.1

3.3

0.05

6.8

3.2

-1,019

 

Midas (Nevada)

Zone

Drillhole
Number

Drillhole
Azm/Dip

Sample
From (feet)

Sample
To (feet)

True
Width (feet)

Gold
(oz/ton)

Silver
(oz/ton)

Depth From
Surface
(feet)

Surface
Exploration

Sinter Offset Southeast

DMC-00472

034/-45

1081.0

1085.5

3.9

0.19

0.1

-769

Sinter Offset Southeast

Including

 

1082.5

1084.3

1.6

0.38

0.2

-769

Sinter Offset Southeast

DMC-00476

030/-59

1388.2

1392.7

2.3

0.21

1.6

-1,163

Sinter Offset Southeast

Including

 

1390.9

1391.7

0.4

1.13

6.6

-1,163

Sinter Offset Southeast

DMC-00477

034/-53

1631.1

1632.1

0.7

0.25

1.0

-1,235

Sinter Offset Southeast

Including

 

1631.1

1631.7

0.4

0.41

1.5

-1,235

 

Lucky Friday (Idaho)

Zone

Drillhole
Number

Drillhole
Azm/Dip

Sample
From (feet)

Sample
To (feet)

True
Width (feet)

Silver
(oz/ton)

Zinc (%)

Lead (%)

Depth From
Mine Shaft
(feet)

Underground
Definition

Gold Hunter (110vein)

GHP-660-20A

265/14

163.6

165.4

0.3

31.4

0.1

0.0

-6,600

Gold Hunter (110vein)

GHP-663-20

265/-1

158.0

161.4

0.7

47.9

0.1

0.0

-6,600

Gold Hunter (90vein)

GHP-658-24

241/45

114.8

121.0

1.9

42.1

2.1

22.6

-6,580

Gold Hunter (90vein)

GHP-658-24

241/45

127.5

132.5

1.5

36.0

0.1

11.3

-6,580

Gold Hunter (90vein)

GHP-669-23

237/-44

114.6

119.2

1.6

11.5

0.2

13.5

-6,690

Gold Hunter (80vein)

GHP-663-23

247/0

108.4

116.5

2.8

19.6

1.2

21.6

-6,630

Gold Hunter (80vein)

GHP-663-23

247/0

118

130.5

4.2

6.6

4.0

8.5

-6,630

Gold Hunter (80vein)

GHP-669-23

237/-44

134.1

139.3

2.2

11.4

5.6

12.2

-6,690

 

For further information, please contact:

Mike Parkin
Vice President - Strategy and Investor Relations

Cheryl Turner
Investor Relations Coordinator

Investor Relations
Email: hmc-info@hecla.com
Website: http://www.hecla.com

Source: Hecla Mining Company

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