Hecla Mining 2025 results and Casa Berardi sale
Hecla Mining Company filed its annual report outlining operations, risks and a major portfolio shift.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Filing Summary
Hecla Mining Company filed its annual report outlining operations, risks and a major portfolio shift. The company agreed to sell its Casa Berardi mine owner, Hecla Quebec Inc., to Orezone Gold for up to $593 million in cash, shares, deferred and contingent payments, with closing targeted in the first quarter of 2026, subject to approvals.
Hecla reported volatile performance, moving from a net loss of $84.2 million in 2023 to net income of $35.8 million in 2024 and $321.7 million in 2025, helped by sharply higher realized silver and gold prices. As of June 30, 2025, non‑affiliate common stock market value was $3.94 billion, with 663.1 million shares outstanding, rising to 670.3 million by February 12, 2026.
The business is organized around four mines—Greens Creek, Lucky Friday, Keno Hill and Casa Berardi—with Casa Berardi contributing 23% of 2025 metals sales. The report details extensive financial, operational, climate, environmental, permitting and geopolitical risks, and highlights heavy reliance on a few large customers and counterparties, as well as complex reclamation obligations, particularly at Keno Hill.
Positive
- Substantial 2025 earnings improvement: Net income rose to $321.7 million in 2025 from $35.8 million in 2024 and a loss in 2023, supported by significantly higher realized silver and gold prices.
- Strategic portfolio refocus: The up to $593 million Casa Berardi sale, if completed and largely collected, would concentrate the business on core silver operations and provide meaningful capital for debt reduction and growth initiatives.
Negative
- Highly contingent Casa Berardi proceeds: About 54% of the up to $593 million consideration is deferred or contingent on Orezone’s future production, permitting outcomes and gold prices, with explicit risk Hecla may not receive the full amount.
- Elevated operational and environmental risk profile: Detailed risk factors highlight exposure to climate‑driven disruptions, complex reclamation obligations (particularly at Keno Hill), ground instability, power constraints and dependence on a few large customers and hedge counterparties.
Insights
Hecla posts strong 2025 income and pivots away from Casa Berardi, but a large portion of sale proceeds is uncertain and contingent.
The report shows a sharp earnings rebound, with net income of $321.7 million in 2025 after a loss in 2023, driven partly by much higher realized silver and gold prices. Segment data confirm Greens Creek and Lucky Friday as core assets, while Casa Berardi, despite contributing 23% of 2025 metals sales, is being divested.
The Casa Berardi transaction headline value is up to $593 million, but only $160 million is upfront cash plus Orezone shares initially valued at $112 million. Another $80 million is deferred, and as much as $241 million depends on production, permitting and a gold price trigger, all outside Hecla’s control. The company explicitly warns there is no assurance it will receive full consideration.
Risk disclosures emphasize sensitivity to metal prices, complex environmental and reclamation obligations (notably at Keno Hill under the Canadian ARSA framework), climate‑related operational disruptions, customer concentration and counterparty risk in hedging. How much of the Casa Berardi consideration ultimately materializes, and how it is redeployed into core silver assets, will be central to understanding Hecla’s post‑sale profile.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What major strategic transaction does Hecla Mining (HL) highlight in its annual report?
How did Hecla Mining (HL) perform financially in 2025 compared with prior years?
Which mines contributed most to Hecla Mining’s (HL) 2025 metals sales?
How exposed is Hecla Mining (HL) to metals price volatility according to the filing?
What environmental and reclamation obligations does Hecla Mining (HL) emphasize?
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
____________________
Form
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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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For the fiscal year ended |
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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For the transition period from to |
Commission file No.
(Exact name of registrant as specified in its Charter)
State or Other Jurisdiction of Incorporation or Organization |
I.R.S. Employer Identification No. |
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Registrant’s Telephone Number, Including Area Code
Securities registered pursuant to Section 12(b) of the Act:
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Stock, par value $0.25 per share |
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Securities registered pursuant to Section 12(g) of the Act: None
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes __
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months, and (2) has been subject to such filing requirements for the past 90 days.
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act:
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Accelerated filer |
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Non-accelerated filer |
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Smaller reporting company |
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Emerging growth company |
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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report.
If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements.
Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
The aggregate market value of the registrant’s voting Common Stock held by non-affiliates was $
Documents incorporated by reference herein:
TABLE OF CONTENTS
Special Note on Forward-Looking Statements |
1 |
Risk Factors Summary |
2 |
PART I |
4 |
Item 1. Business |
4 |
Introduction |
4 |
Products and Segments |
6 |
Governmental Regulation |
6 |
Physical Assets |
8 |
Human Capital |
8 |
Available Information |
9 |
Item 1A. Risk Factors |
10 |
Item 1B. Unresolved Staff Comments |
33 |
Item 1C. Cybersecurity |
33 |
Item 2. Properties |
34 |
Summary |
35 |
Greens Creek |
42 |
Lucky Friday |
48 |
Keno Hill |
52 |
Casa Berardi |
56 |
Internal Controls |
60 |
Item 3. Legal Proceedings |
60 |
Item 4. Mine Safety Disclosures |
60 |
PART II |
61 |
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities |
61 |
Item 6. Reserved |
62 |
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations |
63 |
Overview |
63 |
Consolidated Results of Operations |
66 |
Greens Creek |
70 |
Lucky Friday |
72 |
Keno Hill |
74 |
Casa Berardi |
76 |
Corporate Matters |
78 |
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) |
78 |
Financial Liquidity and Capital Resources |
89 |
Contractual Obligations and Contingent Liabilities and Commitments |
91 |
Critical Accounting Estimates |
92 |
i
New Accounting Pronouncements |
94 |
Guarantor Subsidiaries |
95 |
Forward-Looking Statements |
96 |
Item 7A. Quantitative and Qualitative Disclosures About Market Risk |
96 |
Provisional Sales |
97 |
Commodity-Price Risk Management |
97 |
Foreign Currency |
99 |
Item 8. Financial Statements and Supplementary Data |
100 |
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure |
100 |
Item 9A. Controls and Procedures |
100 |
Disclosure Controls and Procedures |
100 |
Management’s Annual Report on Internal Control over Financial Reporting |
100 |
Attestation Report of Independent Registered Public Accounting Firm |
102 |
Item 9B. Other Information |
103 |
Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections |
103 |
PART III |
103 |
Item 10. Directors, Executive Officers and Corporate Governance |
103 |
Item 11. Executive Compensation |
105 |
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters |
105 |
Item 13. Certain Relationships and Related Transactions, and Director Independence |
105 |
Item 14. Principal Accountant Fees and Services |
106 |
PART IV |
107 |
Item 15. Exhibits and Financial Statement Schedules |
107 |
Item 16. Form 10-K Summary |
110 |
Signatures |
111 |
Index to Consolidated Financial Statements |
F-1 |
ii
Special Note on Forward-Looking Statements
Certain statements contained in this report (including information incorporated by reference) are “forward-looking statements” and are intended to be covered by the safe harbor provided for under Section 27A of the Securities Act of 1933, as amended (“Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (“Exchange Act”). Our forward-looking statements include our current expectations and projections about future production, results, performance, prospects and opportunities, including reserves and resources. We have tried to identify these forward-looking statements by using words such as “may,” “might,” “will,” “expect,” “anticipate,” “believe,” “could,” “intend,” “plan,” “estimate,” “project” and similar expressions. These forward-looking statements are based on information currently available to us and are expressed in good faith and believed to have a reasonable basis. However, our forward-looking statements are subject to a number of risks, uncertainties and other factors that could cause our actual production, results, performance, prospects or opportunities, including reserves and resources, to differ materially from those expressed in, or implied by, these forward-looking statements.
These risks, uncertainties and other factors include, but are not limited to, those set forth under Item 1A. Risk Factors and Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations. Given these risks and uncertainties, readers are cautioned not to place undue reliance on our forward-looking statements. Projections and other forward-looking statements included in this report have been prepared based on assumptions, which we believe to be reasonable, but not in accordance with United States generally accepted accounting principles (“GAAP”) or any guidelines of the Securities and Exchange Commission (“SEC”). Actual results may vary, perhaps materially. You are strongly cautioned not to place undue reliance on such projections and other forward-looking statements. All subsequent written and oral forward-looking statements attributable to Hecla Mining Company or to persons acting on our behalf are expressly qualified in their entirety by these cautionary statements. Except as required by federal securities laws, we disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
1
Risk Factors Summary
The following is a summary of the principal risks that could adversely affect our business, operations and financial results. These risks are described in more detail under Item 1A. Risk Factors of this report.
Financial Risks
Operation, Climate, Development, Exploration and Acquisition Risks
2
Legal, Regulatory and Compliance Risks
Risks Relating to Our Common Stock and Our Indebtedness
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PART I
Item 1. Business
For information regarding the organization of our business segments and our significant customers, see Note 4 of Notes to Consolidated Financial Statements.
Information set forth in Items 1A and 2 below are incorporated by reference into this Item 1.
Introduction
Hecla Mining Company and its subsidiaries have provided precious and base metals to the U.S. and the world since 1891 (in this report, “we” or “our” or “us” refers to Hecla Mining Company and our affiliates and subsidiaries, unless the context requires otherwise). We discover, acquire and develop mines and other mineral interests and produce and market (i) concentrates containing silver, gold, lead, zinc and copper, (ii) carbon material containing silver and gold, and (iii) unrefined doré containing silver and gold. In doing so, we intend to manage our business activities in a safe, environmentally responsible and cost-effective manner.
The silver, zinc and precious metals concentrates and carbon material we produce are sold to custom smelters, metal traders and third-party processors, and the unrefined doré we produce is sold to refiners or further refined before sale of the metals to traders. As of December 31, 2025, we were organized and managed in four segments that encompass our operating mines and significant assets being Greens Creek, Lucky Friday, Keno Hill and Casa Berardi.
Our current business strategy is to focus our financial and human resources in the following areas:
On January 26, 2026, following a review of how Casa Berardi fits into our future strategy, we announced that we entered into a material definitive agreement to sell our wholly-owned subsidiary Hecla Quebec Inc., which owns the Casa Berardi operation to Orezone Gold Corporation (“Orezone”) for up to $593 million in total consideration including:
4
Under the terms of the transaction, Orezone is entitled to reduce future deferred cash payments or contingent royalty payments owed to us if the financial assurance required under Casa Berardi’s updated closure plan exceeds $150.0 million, by 50% of such excess amount. This excludes amounts arising from the mine's post-closing actions that increase the closure scope beyond what is currently contemplated. See Section1A. Risk Factors – Our environmental and asset retirement obligations may exceed the provisions we have made,” “Our accounting and other estimates may be imprecise and We are required to obtain governmental permits and other approvals in order to conduct mining operations.
The transaction is expected to close in the first quarter of 2026, subject to the satisfaction of customary closing conditions, including the receipt of regulatory approvals. In this Annual Report on Form 10-K, unless otherwise indicated, all historical amounts and activity are presented on a continuing operations basis. There can be no assurance that the transaction will be completed on the expected timeline or at all, or that we will receive the full anticipated consideration. For additional information regarding the pending transaction, see Item 7. Management’s Discussion and Analysis of Consolidated Financial Condition and Results of Operations, as well as the Consolidated Financial Statements and Notes thereto.
Metals Prices
Our operating results are substantially dependent upon the prices of silver, gold, lead and zinc, which can fluctuate widely. The volatility of such prices is illustrated in the following table, which sets forth our average realized prices and the high, low and average daily closing market prices for silver, gold, lead, zinc and copper over the last three years. The sources for the market prices are the London Market Fixing prices from the London Bullion Market Association for silver and gold and the Cash Official prices from the London Metals Exchange for lead, zinc and copper.
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2025 |
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2024 |
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2023 |
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Silver (per oz.): |
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Realized average |
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$ |
45.25 |
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$ |
28.58 |
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$ |
23.33 |
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Market average |
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$ |
39.94 |
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$ |
28.24 |
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$ |
23.39 |
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Market high |
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$ |
74.84 |
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$ |
34.51 |
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$ |
26.03 |
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Market low |
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$ |
29.41 |
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$ |
22.09 |
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$ |
20.09 |
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Gold (per oz.): |
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Realized average |
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$ |
3,490 |
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$ |
2,403 |
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$ |
1,939 |
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Market average |
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$ |
3,435 |
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$ |
2,387 |
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$ |
1,943 |
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Market high |
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$ |
4,449 |
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$ |
2,778 |
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$ |
2,049 |
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Market low |
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$ |
2,633 |
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$ |
1,985 |
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$ |
1,811 |
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Lead (per lb.): |
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Realized average |
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$ |
0.94 |
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$ |
0.97 |
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$ |
1.03 |
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Market average |
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$ |
0.89 |
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$ |
0.94 |
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$ |
0.97 |
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Market high |
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$ |
0.94 |
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$ |
1.04 |
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$ |
1.06 |
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Market low |
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$ |
0.83 |
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$ |
0.86 |
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$ |
0.90 |
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Zinc (per lb.): |
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Realized average |
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$ |
1.39 |
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$ |
1.37 |
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$ |
1.35 |
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Market average |
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$ |
1.30 |
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$ |
1.26 |
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$ |
1.20 |
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Market high |
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$ |
1.52 |
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$ |
1.47 |
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$ |
1.59 |
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Market low |
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$ |
1.14 |
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$ |
1.04 |
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$ |
1.01 |
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Copper (per lb.): |
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Realized average |
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$ |
4.75 |
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$ |
4.20 |
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NA |
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Market average |
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$ |
4.51 |
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$ |
4.15 |
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NA |
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Market high |
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$ |
5.71 |
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$ |
4.90 |
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NA |
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Market low |
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$ |
3.89 |
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$ |
3.66 |
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NA |
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The prices of the metals we produce are affected by numerous factors beyond our control. See Item 1A. Risk Factors – A substantial or extended decline in metals prices would have a material adverse effect on us for information on a number of the factors that can impact prices of the metals we produce. In both 2025 and 2024, our realized average prices for all metals we sold, except lead, were higher compared to 2024 and 2023, respectively. We are unable to predict fluctuations in prices for metals and have limited control over the timing of our concentrate shipments which also impacts our realized prices. However, we utilize financially-settled forward contracts and financially-settled zero cost collars ("Collars") for the metals we produce with the objective of managing the exposure to changes in prices of those metals contained in our concentrate shipments between the time of sale and final settlement. In addition, at times we utilize financially-settled forward contracts to manage the exposure to changes in prices of zinc and lead contained in our forecasted future concentrate shipments, and Collars and put options to protect gross margin for silver and gold contained in forecasted concentrate or dore shipments. See Note 10 of Notes to Consolidated Financial Statements for more information on our base and precious metal forward contract programs.
A comprehensive discussion of our financial results for the years ended December 31, 2025, 2024 and 2023, individual operation performance and other significant items can be found in Item 7. Management’s Discussion and Analysis of Consolidated Financial Condition and Results of Operations, as well as the Consolidated Financial Statements and Notes thereto.
Products and Segments
Our segments are differentiated by geographic region located in North America. We produce silver, zinc, and precious metals flotation concentrates at Greens Creek and silver and zinc flotation concentrates at Lucky Friday, each of which we sell to custom smelters and metal traders. The flotation concentrates produced at Greens Creek and Lucky Friday contain payable silver, zinc and lead, and at Greens Creek they also contain payable gold and at times copper. At Greens Creek, we also produce gravity concentrate containing payable silver, gold and lead. Unrefined bullion (doré) is produced from the gravity concentrate by a third-party processor, and shipped to a refiner before sale of the metals to precious metal traders. Keno Hill is currently in ramp-up and producing silver and precious metal flotation concentrates, but at less than what we consider to be commercial production levels. We also produce unrefined gold and silver bullion bars (doré) and loaded carbon and precipitates at Casa Berardi, which are shipped to refiners before sale of the metals to precious metal traders. At times, we sell loaded carbon and precipitates directly to refiners. Payable metals are those included in our products which we are paid for by smelters, metal traders and refiners. Our segments as of December 31, 2025 included:
The contributions to our total metals sales by our significant operations in 2025 were 44.3% from Greens Creek, 23.0% from Casa Berardi, 22.2% from Lucky Friday and 10.5% from Keno Hill.
We anticipate completing our previously announced sale of our subsidiary that owns the Casa Berardi operation in the first quarter of 2026, subject to the satisfaction of customary closing conditions, including the receipt of regulatory approvals. There can be no assurance that the transaction will be completed on the expected timeline or at all, or that we will receive the full anticipated consideration. For additional information regarding the pending transaction, see Item 7. Management’s Discussion and Analysis of Consolidated Financial Condition and Results of Operations, as well as the Consolidated Financial Statements and Notes thereto.
Governmental Regulation
The following is a summary of governmental regulation compliance areas which we believe are significant to our business and may have a material effect on our consolidated financial statements, earnings and/or competitive position.
Health and Safety
We are subject to the regulations of the Mine Safety and Health Administration (“MSHA”) in the United States, the Commission of Labor Standards, Pay Equity and Occupational Health and Safety in Quebec, Workers' Safety and Compensation Board in the Yukon and the Mexico Ministry of Economy and Mining, and work with these agencies to address issues outlined in any investigations and inspections and continue to evaluate our safety practices. We strive to achieve excellent mine safety and health performance, and attempt
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to implement reasonable best practices with respect to mine safety and emergency preparedness. Achieving and maintaining compliance with regulations is challenging and may increase our operating costs. See Human Capital - Health and Safety below and Item 1A. Risk Factors – We face substantial governmental regulation, including in the United States the Mine Safety and Health Act, various environmental laws and regulations and the 1872 Mining Law.
Environmental
Our operations are subject to various environmental laws and regulations at the federal and state/provincial/territorial level. Compliance with environmental regulations, and litigation based on environmental laws and regulations, involves significant costs and can threaten existing operations or constrain expansion opportunities. For example, since acquiring the Keno Hill mine in September 2022, the site has experienced permit exceedances involving the quality of water discharged into the environment. We are working to assess and improve the existing infrastructure and the environmental management system that was put in place by the previous owners. As part of this process, we have submitted plans to the Yukon Department of Energy, Mines and Resources to upgrade the water treatment plant at the Bermingham mine within our Keno Hill operations and in the interim have made other upgrades to water treatment at the site. See Note 16 of Notes to Consolidated Financial Statements.
Keno Hill is located in a region of the Yukon Territory where extensive historical mining activity occurred. The mining claims and rights that comprise our Keno Hill mine are owned by two of our indirect, wholly-owned subsidiaries, Alexco Keno Hill Mining Company and Elsa Reclamation & Development Company Ltd. (“ERDC”). ERDC and Alexco are parties to the Amended and Restated Subsidiary Agreement (“ARSA”) dated July 18, 2013, among them and Her Majesty the Queen in right of Canada (“Canada”) which addresses the pre-existing environmental condition and the environmental care and maintenance and reclamation of the historical Keno Hill site. Under the ARSA and related documents, ERDC, as a paid contractor for the Federal Government of Canada, is responsible for the development and eventual implementation of the district wide reclamation and closure plan (“Reclamation Plan”) which addresses the historic environmental liabilities of the district from past mining activities pre-dating Hecla’s (and Alexco's) acquisition of the Keno Hill project, as well as for carrying out care and maintenance at various locations within the historical Keno Hill site until the Reclamation Plan is implemented. Hecla’s predecessor, Alexco, previously deposited CDN$10 million in a trust which funds ERDC’s maximum contribution toward implementing the Reclamation Plan, and agreed to a 1.5% net smelter royalty capped at CAD$4.0 million, with the cap now reached as of December 31, 2025. ERDC receives agreed-to commercial contractor rates when retained by Canada to provide environmental services in the historical Keno Hill site outside the scope of care and maintenance and closure and reclamation planning under the ARSA (in the latter case, for which ERDC receives an annual fee of CAD$900,000 from Canada, adjustable for material changes in scope). The potential liabilities associated with the pre-existing environmental conditions at Keno Hill are indemnified by Canada under the terms and conditions of the ARSA, subject to the requirement for ERDC to develop, permit, and implement the Reclamation Plan, or if Hecla and Canada agree to transfer portions of the historical area to active mining operations within the Keno Hill unit, then such indemnification ceases to the extent of such transferred area. Completing the Reclamation Plan is expected to take approximately 4 more years and is currently estimated to cost approximately CAD$294 million over that time, for which we expect ERDC to be reimbursed for all material costs incurred. However, we are at risk for any variance in timing between expending funds by ERDC and reimbursement by Canada, as well as for any disputed or otherwise non-reimbursed costs (for example if ERDC were to act outside of the scope of the ARSA). In addition, ERDC is responsible for sharing with Canada (i) under certain circumstances, care and maintenance costs pending implementation of the Reclamation Plan, (ii) detailed design and engineering costs to support the Reclamation Plan and (iii) under certain circumstances, post active reclamation costs (i.e. in the event Hecla has brought a historical area with pre-existing environmental conditions into active operations at the Keno Hill unit), which, in each case and in the aggregate, we do not anticipate will have a material impact on our financial results as a whole.
Mine closure and reclamation regulations impose substantial costs on our operations and include requirements that we provide financial assurance supporting those obligations. We currently have $227.5 million of financial assurances, primarily in the form of surety bonds, for anticipated company-wide reclamation. We anticipate approximately $13.4 million in expenditures in 2026 for environmental permit compliance and idle property management. The projected remaining cost for reclamation at the site is included in our accrued reclamation and closure costs liability. See Item 1A. Risk Factors – We face substantial governmental regulation, including in the United States the Mine Safety and Health Act, various environmental laws and regulations and the 1872 Mining Law; Our operations are subject to complex, evolving and increasingly stringent environmental laws and regulations; Compliance with environmental regulations, and litigation based on such regulations, involves significant costs and can threaten existing operations or constrain expansion opportunities; Mine closure and reclamation regulations impose substantial costs on our operations and include requirements that we provide financial assurance supporting those obligations. These costs could significantly increase and we might not be able to provide financial assurance; Our environmental and asset retirement obligations may exceed the provisions we have made; and New federal and state laws, regulations and initiatives could impact our operations.
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Licenses, Permits and Claims/Concessions
We are required to obtain various licenses and permits to operate our mines and conduct exploration and reclamation activities. We can only engage in exploration and mining operations in accordance with applicable permits. See Item 1A. Risk Factors – We are required to obtain governmental permits and other approvals in order to conduct mining operations and Legal challenges could prevent exploration projects from being developed or existing mines from future expansion.
In addition, our operations and exploration activities in Canada are conducted pursuant to claims granted by the host government, and are subject to claims renewal and minimum work commitment requirements, which are subject to certain political risks associated with foreign operations. See Item 1A. Risk Factors – Our foreign activities are subject to additional inherent risks, Our operations and properties in Canada expose us to additional political risks and Certain of our mines and exploration properties are located on land that is or may become subject competing title claims and/or claims of cultural significance.
Taxes and Royalties
We are subject to various taxes and government royalties in the jurisdictions where we operate, including those specific to mining activities. These include: federal income taxes; state/provincial income taxes; county/city and bureau property taxes and sales and use tax in the U.S.; goods and services tax in Canada; mining-specific taxes in Alaska, Idaho, Nevada, Quebec and the Yukon; and mining royalties in Alaska, Nevada and Canada. Accrual and payment of taxes and accounting for deferred taxes can involve significant estimates and assumptions and can have a material impact on our consolidated financial statements. Tax rates and the calculations of taxes can change significantly and are influenced by changes in political administrations and other factors. See Item 1A. Risk Factors – Our accounting and other estimates may be imprecise; Our ability to recognize the benefits of deferred tax assets related to net operating loss carryforwards and other items is dependent, among other things, on generating taxable income; Our foreign activities are subject to additional inherent risks; and We face substantial governmental regulation, including in the United States the Mine Safety and Health Act, various environmental laws and regulations and the 1872 Mining Law. Also, see Note 7 of Notes to Consolidated Financial Statements for more information on income and mining taxes.
Physical Assets
Our business is capital intensive and requires ongoing capital investment for the replacement, modernization and expansion of equipment and facilities and to develop new mineral reserves. At December 31, 2025, the book value of our properties, plants, equipment and mine development, net of accumulated depreciation, was approximately $2.8 billion. For more information see Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations. We maintain insurance policies against property loss and business interruption. However, such insurance contains exclusions and limitations on coverage, and there can be no assurance that claims would be paid under such insurance policies in connection with a particular event. When we do experience insurable losses – such as with the fire at the Lucky Friday in August and September of 2023 – it can take a long period of time before we receive any or all insurance proceeds. See Item 1A. Risk Factors – Our operations may be adversely affected by risks and hazards associated with the mining industry that may not be fully covered by insurance.
Human Capital
As of December 31, 2025, we had approximately 1,865 employees, of which approximately 1,096 were employed in the United States, 757 in Canada, and 12 in Mexico. The vast majority of our employees are full-time. Approximately 325 of our employees at the Lucky Friday were covered by a collective bargaining agreement.
The attraction, development and retention of people is critical to delivering our business strategy. Key areas of focus for us include:
Health and Safety
The safety and health of our employees is of paramount importance. Our goal is to achieve world-class safety and health performance by promoting a deeply rooted value-based culture of safety and utilizing technology and innovation to continually improve the safety at our operations. We know that employees' and contractors' safety awareness is fundamental to making our workplace as safe as possible. Therefore, we invest in training and workforce development programs that focus on safety first. All employees and contractors receive training that complies with or exceeds the applicable safety and health regulations as set by the governing body in the jurisdiction in which each operation is located. As part of our commitment to safety, we track a variety of safety performance indicators, including injuries, near misses, observations, and equipment damages. Our goal is to reduce safety incidents. Our Total Recordable Injury Frequency Rate (“TRIFR”) is calculated as the number of recordable injuries in the period multiplied by 200,000
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hours and divided by the number of hours worked in the period. Company-wide, our TRIFR was 1.69 for 2025, a 13% reduction from 2024.
Compensation and Benefits
We are among the largest private-sector employers in the communities in which we operate providing a compensation and benefits package that attracts, motivates, and retains employees. In addition to competitive base wages, and incentive compensation, we offer retirement benefits, health insurance plans and paid time off.
Retention and Employee Development
We are committed to hiring talented people, developing effective leaders, providing an inclusive workplace and retaining a large portion of the workforce for long periods of time. The mining workforce of the future, like most industries, will see a continual change in the jobs and skill sets required as we adopt new technologies and make our workplace safer and more efficient. We are also committed to helping employees update their skills. For example, in conjunction with a trade school in Val-d’Or, Quebec, the leadership at our Casa Berardi mine has developed a customized training program for new and existing supervisors to develop their skills in the areas of leadership, communications, roles and responsibilities, and health and safety. In addition, we have long supported the Pathways to Mining Careers program, a career training partnership with the University of Alaska Southeast in Juneau. We also offer a reimbursement program to assist with educational expenses for employees who are interested in furthering their education. Advanced education can improve job performance and increase advancement opportunities for the employee, while providing flexibility to our company by increasing the employee’s knowledge base and skill set.
Typically, annual employee surveys are conducted to gauge employee concerns and morale. The results of the surveys, and any responsive measures, are shared with our Board of Directors. Strategic talent reviews and succession planning reviews are conducted periodically across all business areas, and our training programs are adapted accordingly. The Chief Executive Officer (“CEO”), senior level company leadership and the Board of Directors periodically review our top talent. Creating more opportunities for women and indigenous people are among our priorities for employee development. We also strive to maintain an inclusive workplace and provide periodic training to employees to help meet that goal. Our employees are required to abide by our Code of Conduct, which is provided to employees upon being hired and thereafter annually, and is available on our website, to promote the conduct of our business in a consistently legal and ethical manner. Among other provisions, the Code of Conduct reflects our policy and practice not to discriminate against any employee because of race, color, religion, national origin, sex, sexual orientation, gender identity or expression, age, or physical or other disability. We expect our leaders to set the example by being positive role models and good mentors for our employees.
Our head of Human Resources is responsible for developing and executing our human capital strategy. The position is an executive-level position to reflect the priority we place on utilizing our human capital resources to meet our business strategy.
Available Information
Hecla Mining Company is a Delaware corporation. Our current holding company structure dates from the incorporation of Hecla Mining Company in 2006 and the renaming of our subsidiary (previously Hecla Mining Company) as Hecla Limited. Our principal executive offices are located at 6500 N. Mineral Drive, Suite 200, Coeur d’Alene, Idaho 83815-9408. Our telephone number is (208) 769-4100. Our web site address is www.hecla.com. Information on our web site is not incorporated into this Annual Report on Form 10-K. We file our annual, quarterly and current reports and any amendments to these reports with the SEC, copies of which are available on our website or from the SEC free of charge (www.sec.gov). Our restated certificate of incorporation, bylaws, charters of our audit, compensation, and governance and social responsibility committees, as well as our Code of Ethics for the Chief Executive Officer and Senior Financial Officers and our Code of Conduct, are also available on our website. In addition, any amendments to our Code of Ethics or waivers granted to our directors and executive officers will be posted on our website. Each of these documents may be periodically revised, so you are encouraged to visit our website for any updated terms. We will provide copies of these materials to stockholders upon request using the above-listed contact information, directed to the attention of Investor Relations, or via e-mail request sent to hmc-info@hecla.com.
We routinely post important information for investors on our web site, www.hecla.com, in the “Investors” section. We also may use our web site as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD. Accordingly, investors should monitor the Investors section of our web site, in addition to following our press releases, SEC filings, public conference calls, presentations and webcasts. The information contained on, or that may be accessed through, our web site is not incorporated by reference into, and is not a part of, this document.
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Item 1A. Risk Factors
The following risks and uncertainties, together with the other information set forth in this report, should be carefully considered by those who invest in our securities. Any of the following material risk factors could adversely affect our business, financial condition or operating results and could decrease the value of our common or preferred stock or other outstanding securities. These are not all of the risks we face, and other factors not presently known to us or that we currently believe are immaterial may also affect our business if they occur.
Financial Risks
A substantial or extended decline in metals prices would have a material adverse effect on us.
Our revenue is derived primarily from the sale of concentrates and doré containing silver, gold, lead, zinc and copper and, as a result, our earnings are directly related to the prices of these metals. Silver, gold, lead, zinc and copper prices fluctuate widely and are affected by numerous factors, including:
These factors are largely beyond our control and are difficult to predict. If the market prices for these metals fall below our production or development costs for a sustained period of time, we will experience losses and may have to discontinue exploration, development or operations, and we may also incur asset write-downs at one or more of our properties. See Item 1. Business - Introduction for information on the average, high, and low daily closing prices for silver, gold, lead, zinc and copper for the last three years. On February 12, 2026, the closing prices for silver, gold, lead, zinc and copper were $83.52 per ounce, $5,043.15 per ounce, $0.88 per pound, $1.54 per pound, and $5.80 per pound, respectively.
An extended decline in metals prices, an increase in operating or capital costs or treatment charges, mine accidents or closures, increasing regulatory obligations, or our inability to convert resources or exploration targets to reserves may cause us to record write-downs, which could negatively impact our results of operations.
When events or changes in circumstances indicate the carrying value of our long-lived assets may not be recoverable, (a "triggering event") we review the recoverability of the carrying value by estimating the future undiscounted cash flows expected to result from the use and eventual disposition of the asset. Impairment must be recognized when the carrying value of the asset exceeds these cash flows. Recognizing impairment write-downs could negatively impact our results of operations. Metals price estimates are a key component used in the evaluation of the carrying values of our assets, as the evaluation involves comparing carrying values to the probability weighted estimated undiscounted cash flows resulting from operating plans using various metals price scenarios. Our estimates of undiscounted cash flows for our long-lived assets also include an estimate of the market value of the resources and exploration targets beyond the current operating plans.
We determined there were no impairment test triggering events identified during 2025. For more discussion, see the risk factors, “We may not realize all of the anticipated benefits from our acquisitions, including our 2022 acquisition of Alexco" and “Issues we have faced at certain segments could require us to write-down the carrying value of associated long-lived assets. We could face similar issues at our other operations.” If the prices of the metals we produce decline for an extended period of time, if we fail to control production or capital costs, if regulatory issues increase costs or decrease production, or if we do not realize the mineable mineral reserves, resources or exploration targets at our mining properties, we may be required to recognize asset write-downs in the future. In addition, the perceived market value of the resources and exploration targets of our properties is dependent upon prevailing metals prices as well as our ability to discover economic ore. A decline in metals prices for an extended period of time or our inability to convert resources or exploration targets to reserves could significantly reduce our estimates of the value of the resources or exploration targets at our properties and result in asset write-downs.
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We have had losses that could reoccur in the future.
We have experienced volatility in our net income (loss) reported in the last three years, as shown in our Consolidated Statement of Operations and Comprehensive Income (Loss), including net income of $321.7 million and $35.8 million in 2025 and 2024, respectively, and a net loss of $84.2 million in 2023. A comparison of operating results over the past three years can be found in Results of Operations in Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
Many of the factors affecting our operating results are beyond our control, including, but not limited to, the volatility of metals prices; smelter terms; rock and soil conditions; seismic events; cybersecurity attacks; availability of hydroelectric power; diesel fuel prices; interest rates; foreign exchange rates; global or regional political or economic policies; inflation; availability and cost of labor; economic developments and crises; governmental regulations; continuity of orebodies; ore grades; recoveries; performance of equipment; uninsured losses; price speculation by certain investors; and purchases and sales by central banks and other holders and producers of gold and silver in response to these factors. We cannot assure you that we will not experience net losses in the future.
Risks Related to the Pending Sale of Casa Berardi.
We have entered into an agreement to sell our Casa Berardi operation to Orezone for total consideration of up to $593 million, subject to customary closing conditions, including receipt of and regulatory approvals. The transaction is expected to close in the first quarter of 2026, but there can be no assurance that the transaction will be completed on the expected timeline or at all, or that we will receive the full anticipated consideration.
Transaction Closing Risks. The completion of the transaction is subject to various closing conditions, including receipt of regulatory approvals and third-party consents, and other customary conditions. Any delay in obtaining required approvals or satisfaction of other closing conditions could delay or prevent the closing of the transaction. If the transaction does not close, we would continue to own and operate Casa Berardi, which would require ongoing capital investment and management attention that we had planned to redirect to our core silver assets. Additionally, the pendency of the transaction could adversely affect our business, including our relationships with employees, customers, suppliers, and other business partners, and could divert management's attention from other business priorities.
Deferred and Contingent Consideration Risks. A substantial portion of the total consideration—up to $321 million, or approximately 54% of the total potential proceeds—consists of deferred cash payments and contingent consideration that we may not receive in full or on the expected timeline. The deferred cash payments of $80 million depend on Orezone's financial capacity and creditworthiness over the 30-month payment period. The contingent consideration of up to $241 million is subject to significant uncertainty and depends on factors outside our control, including:
There can be no assurance that we will receive any or all of the deferred or contingent consideration. Our failure to receive the full anticipated consideration would adversely affect our expected proceeds from the transaction, our plans for debt reduction and balance sheet strengthening, and our ability to invest in growth initiatives at our core silver assets, which would negatively impact our financial position, cash flows, and ability to execute our strategic transformation.
Orezone Creditworthiness and Performance Risks. The receipt of deferred and contingent consideration depends entirely on Orezone's financial condition, operational capabilities, and commitment to develop Casa Berardi. Orezone may encounter financial difficulties, operational challenges, permitting delays, labor issues, cost overruns, or other problems that could impair its ability to make deferred payments or achieve the production and permitting milestones necessary to trigger contingent consideration payments. We will have limited control over Orezone's operations and no guarantee that it will successfully operate and develop the property. Any deterioration in Orezone's financial condition or operational performance could result in our failure to receive some or all of the deferred and contingent consideration.
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Equity Consideration Risks. We expect to receive approximately 65.7 million Orezone common shares with an estimated current value of approximately $112 million. However, the actual value we realize from these shares will depend on Orezone's stock price at and after closing, which may fluctuate significantly based on factors including metal prices, Orezone's operational and financial performance, market conditions, and investor sentiment. The market for Orezone's shares may be illiquid, which could make it difficult for us to dispose of the shares without adversely affecting their market price. Additionally, we may be subject to securities law restrictions on our ability to sell these shares. If Orezone's stock price declines or we are unable to liquidate our position, the value we ultimately realize could be substantially less than the current estimated value, which would reduce the total proceeds from the transaction and adversely affect our financial position.
Operational and Transition Risks. During the period between signing and closing, we must continue to operate Casa Berardi in the ordinary course of business, which requires ongoing capital expenditures and management attention. The pendency of the transaction may create operational uncertainties, affect employee morale and retention, and impact our ability to attract and retain key personnel at the operation. The loss of key employees or contractors, or any operational disruption or deterioration in the condition or performance of Casa Berardi prior to closing, could reduce the value of the asset, delay the transaction, or result in a purchase price adjustment that reduces the consideration we receive. Additionally, we may be required to make representations and warranties regarding the operation and condition of the assets, and any breach of these representations could result in indemnification obligations to the purchaser.
Alternative Use of Resources. The inability to complete the transaction or delays in receiving the anticipated consideration could adversely affect our strategic plans. We have publicly stated our intention to use the cash proceeds for debt reduction and to invest in growth initiatives at our core silver assets, particularly Keno Hill and Greens Creek. If we do not receive the anticipated proceeds on the expected timeline, we may be unable to execute these plans as contemplated, which could impair our competitive position, limit our financial flexibility, and adversely affect our ability to create stockholder value.
Our accounting and other estimates may be imprecise.
Preparing consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts and related disclosure of assets, liabilities, revenue and expenses at the date of the consolidated financial statements and reporting periods. The more significant areas requiring the use of management assumptions and estimates relate to:
Future estimates and actual results may differ materially from these estimates as a result of using different assumptions or conditions. For additional information, see Critical Accounting Estimates in Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations, Note 2 of Notes to Consolidated Financial Statements, and the risk factors set forth below: “Our costs of extending existing reserves or development of new orebodies and other capital costs may be higher and provide less return than we estimated,” “Our mineral reserve and resource estimates may be imprecise,” “We are currently involved in ongoing legal disputes
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that may materially adversely affect us,” and “Our environmental and asset retirement obligations may exceed the provisions we have made.”
Commodity and currency risk management activities could prevent us from realizing possible revenues or lower costs or expose us to losses.
We periodically engage in risk management activities to manage the exposure to changes in prices of silver in general, as well as for silver, gold, lead and zinc contained in our concentrate shipments between the time of sale and final settlement and manage the exposure to changes in the prices of lead and zinc contained in our forecasted future shipments. Such activities are utilized in an attempt to partially insulate our operating results from changes in prices for those metals. However, such activities may prevent us from realizing revenues in the event that the market price of a metal exceeds the price stated in a forward contract, and may also result in significant mark-to-market fair value adjustments, which may have a material adverse impact on our reported financial results. In addition, we are exposed to credit risk with our counterparties, and we may experience losses if a counterparty fails to purchase under a contract when the contract price exceeds the spot price of a commodity. In periods of elevated or rapidly rising commodity prices, such as the current environment where gold and silver prices are at or near all-time highs, this credit risk may be magnified as counterparties face larger potential losses on their hedge positions.
We are also exposed to credit risk from customers who purchase our products. Our concentrate sales are typically made on a provisional basis, with initial payment amounts being adjusted when the settlement with the customer occurs. Some customers engage in their own hedging activities during this provisional period to lock in metal prices. As with financial counterparties described above, in periods of significant price volatility, such as the current high price environment, customers who have hedged face mark-to-market exposures and potential margin calls if prices move against their positions, with the risk of larger potential losses on their hedge positions. Customers who do not hedge may face unexpected losses if prices decline significantly between shipment and settlement, potentially impairing their liquidity or profitability. In periods of high price volatility, these dynamics could result in customer payment delays, defaults, or disputes, which could materially adversely affect our cash flow and results of operations.
We also use financially-settled forward contract programs to manage exposure to fluctuations in the exchange rates between the U.S. dollar (“USD”) and the Canadian dollar (“CAD”) and the impact on our future operating costs denominated in CAD. We use a similar program related to future development costs denominated in CAD. As with our metals derivatives, when utilized, such activities may prevent us from realizing possible lower costs on a USD-basis in the event that the USD strengthens relative to the CAD compared to the exchange rates stated in the forward contracts, and also expose us to counterparty credit risk.
The risks described above apply to the put options we purchased in December 2025. See Note 10 of Notes to Consolidated Financial Statements for more information on these risk management activities.
Our ability to recognize the benefits of deferred tax assets related to net operating loss carryforwards and other items is dependent, among other things, on generating taxable income.
We recognize the expected future tax benefit from deferred tax assets when the tax benefit is considered to be more likely than not of being realized. Otherwise, a valuation allowance is applied against deferred tax assets, reducing the value of such assets. Assessing the recoverability of deferred tax assets requires management to make significant estimates related to expectations of future taxable income. Estimates of future taxable income are based on forecasted income from operations and the application of existing tax laws in each jurisdiction. Metal prices, reserves, production and cost estimates are key components to determine the expected future benefit of our deferred tax assets. To the extent that future taxable income differs significantly from estimates as a result of a decline in metals prices or other factors, our ability to realize the deferred tax assets could be impacted. Additionally, significant future issuances of common stock or common stock equivalents, or changes in the direct or indirect ownership of our common stock or common stock equivalents, could limit our ability to utilize our net operating loss carryforwards pursuant to Section 382 of the Internal Revenue Code. Future changes in tax law or changes in ownership structure could limit our ability to utilize our recorded tax assets. Our deferred tax assets as of December 31, 2025 were $219.6 million, net of $111.4 million in valuation allowances. See Note 7 of Notes to Consolidated Financial Statements for further discussion of our deferred tax assets.
Returns for investments in pension plans and pension plan funding requirements are uncertain.
We maintain defined benefit pension plans for most U.S. employees, which provide for defined benefit payments after retirement for those employees. Canadian and Mexican employees participate in public retirement systems for those countries and are not eligible to participate in the defined benefit pension plans that we maintain for U.S. employees. The ability of the pension plans maintained for U.S. employees to provide the specified benefits depends on our funding of the plans and returns on investments made by the plans. Returns, if any, on investments are subject to fluctuations based on investment choices and market conditions. A sustained period of low returns or losses on investments, or future benefit obligations that exceed our estimates, could require us to fund the pension plans
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to a greater extent than anticipated. See Note 6 of Notes to Consolidated Financial Statements for more information on our pension plans.
Operation, Climate, Development, Exploration and Acquisition Risks
Natural disasters, public health crises, political crises, and other catastrophic events or other events outside of our control may materially and adversely affect our business or financial results.
If any of our facilities or the facilities of our suppliers, third-party service providers, or customers is affected by natural disasters, such as earthquakes, floods, fires, power shortages or outages, public health crises (such as pandemics and epidemics), political crises (such as terrorism, war, political instability or other conflict), or other events outside of our control, our operations or financial results could suffer. Any of these events could materially and adversely impact us in a number of ways, including through decreased production, increased costs, decreased demand for our products due to reduced economic activity or other factors, or the failure by counterparties to perform under contracts or similar arrangements. For example, the COVID-19 pandemic impacted our operations and financial results between 2020 and 2022.
Our operations are subject to a range of risks related to climate change and transitioning the business to meet regulatory, societal and investor expectations for operating in a low-carbon economy.
Climate change is expected to create more extreme weather patterns that can increase frequency or severity of forest fires (such as our Casa Berardi unit experienced in summer 2023) and droughts and sudden heavy rainfall or snowfall (such as our mines periodically experience). These precipitation events require careful water management. Potential key material physical risks to Hecla from climate change include, but are not limited to:
Such events can temporarily slow or halt operations due to physical damage to assets, unavailability of power, reduced worker productivity for safety protocols on site related to extreme weather events, and difficulties transporting workers, materials or supplies to or from sites. Additional financial impacts could include increased capital or operating costs to (i) increase water storage and treatment capacity, (ii) obtain or develop maintenance and monitoring technologies, (iii) increase resiliency of facilities and (iv) establish supplier climate resiliency and contingency plans. The occurrence of weather and climate events have in the past and could in the future cause us to incur unplanned costs, which may be material, to address or prevent resulting damage. See the Risk Factors “We may be subject to a number of unanticipated risks related to inadequate infrastructure” and “Our operations may be adversely affected by risks and hazards associated with the mining industry that may not be fully covered by insurance."
In addition, we have identified opportunities and potential risks for Hecla as we shift toward a low-carbon economy. Technologies that support decarbonization include renewable energy sources, electric vehicles, and energy storage, all of which require the metals we produce. However, renewable energies currently may not have the same reliability as conventional energy sources. Thus, as we transition toward renewable energy sources, we could experience a possible curtailment of our energy supply, and these new energy sources may cost more in the future than our current supplies, which could negatively impact our financial performance. Further, transitioning to a lower-carbon economy will require significant investment and may entail extensive policy, legal, technology, and market changes to address mitigation and adaptation requirements related to climate change. Depending on the nature, speed, focus and jurisdiction of these changes, transition risks may pose varying levels of financial and reputational risk to our business.
Policy and regulatory risk related to actual and proposed changes in climate and water-related laws, regulations and taxes developed to regulate the transition to a low-carbon economy may result in increased costs for our operations, third-party smelters and refiners and our suppliers, including increased energy, capital equipment, environmental monitoring and reporting and other costs to comply with such regulations. Regulatory uncertainty may cause higher costs and lower economic returns than originally estimated for new development projects and operations, including closure reclamation and remediation obligations.
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The development and deployment of technological improvements or innovations will be required to support the transition to a low-carbon economy, which could result in write-offs and early retirement of existing assets, increased costs to adopt and deploy new practices and processing including planning and design for mines, development of alternative power sources, site level efficiencies and other capital investments.
A failure to meet our climate strategy commitments and/or societal or investor expectations could also result in damage to our reputation, decreased investor confidence and challenges in maintaining positive community relations, which can pose additional obstacles to our ability to conduct our operations and develop our projects, which may result in a material adverse impact on our business, financial position, results of operations and growth prospects.
Mining accidents or other adverse events at an operation could decrease our anticipated production or otherwise adversely affect our operations.
Production may be reduced below our historical or estimated levels for many reasons, including, but not limited to, mining accidents; unfavorable ground or shaft conditions; extreme weather events; fire, influx of water or other insured and uninsured events; work stoppages or slow-downs; lower than expected ore grades; cybersecurity attacks; unexpected regulatory actions; if the metallurgical characteristics of ore are less economic than anticipated; or because our equipment or facilities fail to operate properly or as expected. Our mines are subject to risks relating to ground instability, including, but not limited to, pit wall failure, crown pillar collapse, seismic events, backfill and stope failure or the breach or failure of a tailings or other impoundment. Both the Lucky Friday and Casa Berardi mines have a history of ground instability underground and related incidents which in the past have resulted in loss of production at these facilities and some of the other effects described below. The occurrence of an event such as those described above could result in loss of life or temporary or permanent cessation of operations, any of which could have a material adverse effect on our financial condition and results of operations. Other closures or impacts on operations or production may occur at any of our mines at any time, whether related to accidents, changes in conditions, changes to regulatory policy, or as precautionary measures. See “Our operations are subject to complex, evolving and increasingly stringent environmental laws and regulations. Compliance with environmental regulations, and litigation based on such regulations, involves significant costs and can threaten existing operations or constrain expansion opportunities.”
In addition, our operations are typically in remote locations, where conditions can be inhospitable, including with respect to weather, surface conditions, interactions with wildlife or otherwise in or near dangerous conditions. In the past we have had employees, contractors, or employees of contractors get injured, sometimes fatally, while working in such challenging locations. An accident or injury to a person at or near one of our operations could have a material adverse effect on our financial condition and results of operations.
At the Lucky Friday mine we are mining ever deeper deposits and have been utilizing our patented Underhand Closed Bench (“UCB”) mining method. See Item 2. Properties - Lucky Friday for a description of the UCB method. We started testing the UCB method in 2020 and it was used for approximately 88%, 86% and 87% of the tons mined at Lucky Friday in 2025, 2024 and 2023, respectively. The UCB method has not been used at other mines. Although we believe the testing has resulted in better management of the Lucky Friday mine’s seismicity, which increases as we mine deeper, we cannot predict unknown hazards that the UCB method or our deeper mining activities might cause.
Our operations may be adversely affected by risks and hazards associated with the mining industry that may not be fully covered by insurance.
Our business is capital intensive, requiring ongoing investment for the replacement, modernization or expansion of equipment and facilities. Our mining and milling operations are subject to risks of process disruptions and equipment malfunctions. Equipment and supplies may from time to time be unavailable on a timely basis. Our business is subject to a number of other risks and hazards including:
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Such risks could result in:
We maintain insurance to protect against losses that may result from some of these risks, such as property loss and business interruption, in amounts we believe to be reasonably consistent with our historical experience, industry practice and circumstances surrounding each identified risk. Such insurance, however, contains exclusions and limitations on coverage, particularly with respect to environmental liability, political risk and seismic events. We cannot assure you that claims would be paid under such insurance policies in connection with a particular event. Insurance specific to environmental risks is generally either unavailable or, we believe, cost prohibitive, and we therefore we maintain limited environmental insurance. Occurrence of events for which we are not insured may have an adverse effect on our business.
Our costs of extending existing reserves or development of new orebodies and other capital costs may be higher and provide less return than we estimated.
Capitalized development projects may cost more and provide less return than we estimate. If we are unable to realize a return on these investments, we may incur a related asset write-down that could adversely affect our financial results or condition.
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Our ability to sustain or increase our current level of metals production partly depends on our ability to develop new orebodies and/or expand existing mining operations. Before we can begin a development project, we must first determine whether it is economically feasible to do so. This determination is based on estimates of several factors, including:
Many of these estimates are based on geological and other interpretive data, which may be imprecise. As a result, actual operating and capital costs and returns from a development project may differ substantially from our estimates, and, as such, it may not be economically feasible to continue with a development project.
Our mineral reserve and resource estimates may be imprecise.
Our mineral reserve figures are primarily estimates and are not guarantees that we will recover the indicated quantities of these metals. You are cautioned not to place undue reliance on estimates of reserves (or resource estimates or exploration targets). Reserves are estimates made by our professional technical personnel of the amount of metals that they believe could be economically and legally extracted or produced at the time of the reserve determination. No assurance can be given that the estimated amount of metal or the indicated level of recovery of these metals will be realized. Reserve and resource estimation is an interpretive process based upon available data and various assumptions. Our reserve and resource estimates may change. Reserves are valued based on estimates of costs and metals prices, which may not be consistent among our properties or across the industry. The estimated quantities and economic value of mineral reserves may be adversely affected by:
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Furthermore, short-term operating factors relating to our mineral reserves, such as the need to sequentially develop orebodies and the processing of new or different ore grades, may adversely affect our cash flow.
If the prices of metals that we produce decline substantially below the levels used to calculate reserves for an extended period, we could experience:
Additionally, reserve estimates are subject to further development and preproduction drilling, resource estimates and exploration targets are subject to further exploration and development, and are, therefore, subject to considerable uncertainty. Despite our history of converting resources and exploration targets to reserves through additional drilling and study work, we cannot be certain that any part or parts of resources or exploration targets will ever be confirmed or converted into reserves as defined by the SEC.
Efforts to expand the finite lives of our mines may not be successful or could result in significant demands on our liquidity, which could hinder our growth.
One of the risks we face is that mines are depleting assets. Thus, in order to maintain or increase production we must continually replace depleted mineral reserves by locating and developing additional ore. Our ability to expand or replace mineral reserves primarily depends on the success of our exploration programs. Mineral exploration, particularly for silver and gold, is highly speculative and expensive. It involves many risks and is often non-productive. Even if we believe we have found a valuable mineral deposit, it may be several years before production from that deposit is possible. During that time, it may become no longer feasible to produce those minerals for economic, regulatory, political or other reasons. As a result of high costs and other uncertainties, we may not be able to expand or replace our existing mineral reserves as they are depleted, which would adversely affect our business and financial position in the future.
Our ability to market our metals production depends on the availability of smelters and/or refining facilities and our operations and financial results may be affected by disruptions or unavailability of such facilities.
We sell our metals products to smelters and metal traders. Our doré bars are sent to refiners for further processing before being sold to metal traders. Access to refiners and smelters on terms which are economic is critical to sell our products to buyers and generate revenues. If smelters or refiners are unavailable or unwilling to accept our products, or we are otherwise unable to sell our products to customers on acceptable commercial and legal terms, our operations and financial results could be adversely affected. See Note 4 of Notes to Consolidated Financial Statements for more information on the distribution of our sales and our significant customers.
We derive a significant amount of revenue from a relatively small number of customers and occasionally enter into concentrate spot market sales with metal traders.
For the fiscal year ended December 31, 2025, our three largest customers accounted for approximately 25%, 23% and 14%, respectively, of our total revenues. Given our operations produce unique qualities of concentrates, which a limited number of smelters can process effectively, we enter into long-term benchmark contracts for a majority of our total concentrates production. We expose lesser portions of our concentrates production to spot market sales to metal traders to benefit from favorable spot market sales terms
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from time to time. Our results of operations, financial condition and cash flows could be materially adversely affected if one or more of our long-term customers were to decide to interrupt or curtail their activities, terminate their contracts with us or fail to renew existing contracts. Additionally, if spot market conditions deteriorate rapidly, we could have difficulty selling a portion of our concentrates, and metal traders could refuse to perform under existing contracts, which could also result in materially adverse effects on our results of operations, financial conditions and cash flows. See The Risk Factor "Tariffs, other potential changes to tariff and import/export regulations, or trade disputes between the United States and other jurisdictions may have a negative effect on global economic conditions and on our business, financial results and financial condition" and Note 4 of Notes to Consolidated Financial Statements for more information on the distribution of our sales and our significant customers.
Shortages of critical parts and equipment may adversely affect our operations and development projects.
We have been impacted, from time to time, by increased demand for critical resources such as input commodities, drilling equipment, trucks, shovels and tires. These shortages have, at times, impacted the efficiency of our operations, and resulted in cost increases and delays in construction of projects; thereby impacting operating costs, capital expenditures and production and construction schedules.
Our foreign activities are subject to additional inherent risks.
We currently have operations in Canada (and limited activities in Mexico), and we expect to continue to conduct operations there and possibly other international locations in the future. Because we conduct operations internationally, we are subject to political, social, legal and economic risks such as:
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The occurrence of any one or combination of these events, many of which are beyond our control, could materially adversely affect our financial condition or results of operations.
Our operations and properties in Canada expose us to additional political risks.
Our properties in Canada may be of particular interest or sensitivity to one or more interest groups, including aboriginal groups (which are generally referred to as “First Nations”). The nature and extent of First Nation rights and title remains the subject of active debate, claims and litigation in Canada. Intergovernmental relations between First Nation authorities and federal, provincial and territorial authorities are evolving. It is our practice to work closely with and consult with First Nations in areas in which our projects are located or which could be impacted by our activities. However, it is possible that our permitting activities, profitable production, exploration or development activities on our Canadian properties could be delayed, interrupted or otherwise adversely affected in the future by political uncertainty, native land claims entitlements, expropriations of property, financial arrangements, changes in applicable law, governmental policies and policies of relevant interest groups, including those of First Nations. Any changes in law or relations or shifts in political conditions may be beyond our control, or we may enter into agreements with First Nations, all of which may adversely affect our business and operations and if significant, may result in the impairment or loss of mineral concessions or other mineral rights, or may make it impossible to continue our mineral production, exploration or development activities in the applicable area, any of which could have an adverse effect on our financial condition and results of operations.
Certain of our mines and exploration properties are located on land that is or may become subject to, competing title claims and/or claims of cultural significance
Indigenous interests and rights as well as related consultation issues may impact our ability to pursue exploration, development and mining at certain of our properties in Nevada, Montana, Alaska and Canada. There is no assurance that claims or other assertion of rights by tribal communities and stakeholders or consultation issues will not arise on or with respect to our properties or activities. These could result in significant costs and delays or materially restrict our activities. Opposition by tribal communities and stakeholders to our presence, operations or development on land subject to their traditional territory or title claims or in areas of cultural significance could negatively impact us in terms of permitting delay, public perception, costly legal proceedings, potential blockades or other interference by third parties in our operations, or court-ordered relief impacting our operations. In addition, we may be required to, or may voluntarily, enter into certain agreements with such tribal communities in order to facilitate development of our properties, which could reduce the expected earnings or income from any future production. For example, although our Keno Hill subsidiary is a party to a Cooperation and Benefits Agreement with the First Nation of Na-Cho Nyäk Dun (“FNNND”), in whose traditional territory Keno Hill is located, the agreement does not address wealth sharing, and instead the parties have deferred such discussions. We expect in the future the parties will negotiate the wealth sharing requirement of the agreement, and thus Keno Hill will likely make future and ongoing payments to the FNNND.
In June 2024, in the aftermath of the Victoria Gold Eagle Mine heap leach pad failure in the Yukon, Canada, the Yukon Government (“YG”) and the FNNND was focused on response and cleanup activities required as a result of the incident. As a result, we experienced and continue to experience delays on permitting matters at our Keno Hill mine which, although not a heap leach operation, is located not far from the Eagle Mine (the YG is obligated to consult with FNNND on permitting matters). These delays could have an adverse impact on our Keno Hill operations and will delay reaching increased production levels at the mine. See Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations – Results of Operations – Keno Hill.
We may be subject to a number of unanticipated risks related to inadequate infrastructure.
Mining, processing, development, exploration and other activities depend on adequate infrastructure. Reliable roads, bridges, ports, power sources, internet access and water supply are important to our operations, and their availability and condition affect capital and operating costs. Unusual, infrequent or extreme weather phenomena, sabotage, amount or complexity of required investment, or other interference in the maintenance or provision of such infrastructure, or government intervention, could adversely affect our mining operations. For example, Yukon Energy, the provider of electricity to Keno Hill, occasionally reduces power to Keno Hill, which does not have sufficient backup generation capacity to fully power the mine and the mill. This can, and has, led to insufficient power to run
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the mine and the mill. Although such power disruptions have not had a material impact on Keno Hill’s operations, they could have a material adverse impact on the financial condition of and results of operations at Keno Hill.
We face inherent risks in acquisitions of other mining companies or properties that may adversely impact our growth strategy.
We actively evaluate opportunities to expand our mineral reserves and resources by acquiring other mining companies or properties. Although we are pursuing opportunities that we feel are in the best interest of our stockholders, these pursuits are costly and distracting.
There is a limited supply of desirable mineral properties available in the United States and in foreign countries where we would consider conducting exploration and/or production activities. For those that exist, we face strong competition from other mining companies, many of which have greater financial resources than we do. Therefore, we may be unable to acquire attractive companies or mining properties on terms that we consider acceptable.
Furthermore, there are inherent risks in any acquisition we may undertake which could adversely affect our current business and financial condition and our growth. For example, we may not realize the expected value of the companies or properties that are acquired due to declines in metals prices, lower than expected quality of orebodies, inability to achieve the expected or minimum level of operating performance, failure to obtain permits, labor problems, changes in regulatory environment, failure to achieve anticipated synergies, an inability to obtain financing, and other factors described in these risk factors. Acquisitions of other mining companies or properties may also expose us to new legal, geographic, political, operating, and geological risks.
See the risk factor, “We may not realize all of the anticipated benefits from our acquisitions, including our 2022 acquisition of Alexco.”
We may be unable to successfully integrate the operations of the properties we acquire.
Integration of the businesses or the properties we acquire with our existing business, including the Keno Hill project acquired as part of the Alexco acquisition in September 2022, is a complex, time-consuming and costly process. Failure to successfully integrate the acquired properties and operations in a timely manner may have a material adverse effect on our business, financial condition, results of operations and cash flows. The difficulties of combining the acquired operations with our existing business include, among other things:
The process of integrating operations could cause an interruption of, or a slowdown in, the activities of our business. Members of our senior management may be required to devote considerable amounts of time to this integration process, which will decrease the time they will have to manage other parts of our business. If our senior management is not able to effectively manage the integration process, or if any business activities are interrupted as a result of the integration process, our business could suffer. See the risk factor below, “We may not realize all of the anticipated benefits from our acquisitions, including our 2022 acquisition of Alexco.”
Issues we have faced at certain segments could require us to write-down the carrying value of associated long-lived assets. We could face similar issues at our other operations.
We review our long-lived assets for recoverability pursuant to the Financial Accounting Standard Board’s Accounting Standards Codification Section 360. Under that standard, we review the recoverability of our long-lived assets, such as our mining properties, upon a triggering event. Such review involves comparing an asset’s carrying value to its fair value. When the carrying value of the asset exceeds its fair value (which is based on estimating the future undiscounted cash flows expected to result from the use and eventual disposition of the asset or a market value approach), an impairment must be recognized. We conduct a review of the financial
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performance of our mines in connection with the preparation of our financial statements for each reporting period and determine whether any triggering events are indicated.
Though production remains suspended at our Nevada assets, we did not identify a triggering event for our Nevada long-lived assets in 2025, as our budgeted exploration program for 2026, due to positive results, has significantly increased compared to the level of exploration expenditures incurred in 2025.
The estimates, judgments and assumptions we use in any fair value/impairment assessment of our long-lived assets relate to factors impacting the future cash flows estimated at any of our operations, including, but not limited to: (i) metals to be extracted and recovered from proven and probable mineral reserves and, to some extent, identified mineralization beyond proven and probable reserves, (ii) future operating and capital costs, and (iii) future metals prices. These estimates, judgments and assumptions are made in good faith and using management's best judgments; however, there can be no assurance that any of them will prove to be accurate. Evaluation of the possibility of a future impairment loss, as well as the calculation of the amount of any impairment loss, involve significant estimates, judgment and assumptions, and no assurance can be given as to whether or not we will recognize an impairment loss in the future, or if the amount of loss would be within any estimated range we may disclose. As a result, in future periods we could face another triggering event which could lead to an impairment charge, and any such impairment charge could be material.
We may not realize all of the anticipated benefits from our acquisitions, including our 2022 acquisition of Alexco.
We may not realize all (or any) of the anticipated benefits from any acquisition, such as increased earnings, cost savings and revenue enhancements, for various reasons, including difficulties integrating operations and personnel, higher than expected acquisition and operating costs or other difficulties, unknown liabilities which may be significant, inaccurate reserve estimates, unrealized exploration targets, ore grades or mill recoveries that are lower than required for portions of the orebodies to be economic, and fluctuations in market prices.
As an example, in September 2022, we completed the acquisition of Alexco and gained ownership of the Keno Hill project in the Yukon Territory, Canada. Although we produced silver at that mine in 2025, permitting and other delays have prevented us from declaring "commercial production." High silver prices have buoyed Keno Hill's performance and , despite not reaching "commercial production" yet, Keno Hill, was profitable in 2025. However, should silver prices fall or we experience issues like we did in the past, such as sustained power outages imposed by the utility, it is possible that we may have to suspend production and other operations at Keno Hill and place it on care and maintenance until such time as conditions improve. See the risk factors, “An extended decline in metals prices, an increase in operating or capital costs or treatment charges, mine accidents or closures, increasing regulatory obligations, or our inability to convert resources or exploration targets to reserves may cause us to record write-downs, which could negatively impact our results of operations,” “Certain of our mines and exploration properties are located on land that is or may become subject to competing title claims and/or claims of cultural significance,” "We may be subject to a number of unanticipated risks related to inadequate infrastructure" and “Issues we have faced at certain segments could require us to write-down the associated long-lived assets. We could face similar issues at our other operations.”
The properties we may acquire may not produce as expected, and we may be unable to determine reserve potential, identify liabilities associated with the acquired properties or obtain protection from sellers against such liabilities.
The properties we acquire in any acquisition, including Keno Hill, may not produce as expected, may be in an unexpected condition and we may be subject to increased costs and liabilities, including environmental liabilities. Although we review properties prior to acquisition in a manner consistent with industry practices, such reviews are not capable of identifying all existing or potential adverse conditions. Generally, it is not feasible to review in depth every individual property involved in each acquisition. Even a detailed review of records and properties may not necessarily reveal existing or potential problems or permit a buyer to become sufficiently familiar with the properties to fully assess their condition, any deficiencies, and development potential. See the risk factors, “We may not realize all of the anticipated benefits from our acquisitions, including our 2022 acquisition of Alexco,” “Certain of our mines and exploration properties are located on land that is or may become subject to, competing title claims and/or claims of cultural significance” and “An extended decline in metals prices, an increase in operating or capital costs or treatment charges, mine accidents or closures, increasing regulatory obligations, or our inability to convert resources or exploration targets to reserves may cause us to record write-downs, which could negatively impact our results of operations.”
We face risks relating to transporting our products from our mines, as well as transporting employees and materials at our Greens Creek, Casa Berardi and Keno Hill sites.
Certain of the products we ship to our customers are subject to regulatory requirements regarding shipping, packaging, and handling of products that may be considered dangerous to human health or the environment. Although we believe we are currently in compliance with all material regulations applicable to shipping, packaging, and handling our products, the chemical properties of our
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products or existing regulations could change and cause us to fall out of compliance or force us to incur substantial additional expenditures to maintain compliance with applicable regulations. Further, we do not ship our own products but instead rely on third party carriers to ship our products to our customers. To the extent that any of our carriers are unable or unwilling to ship our products in accordance with applicable regulations, including because of difficulty in obtaining, or increased cost of, insurance, or are involved in accidents during transit, we could be forced to find alternative shipping arrangements, assuming such alternatives would be available, and we could face liability as a result of any accident. Any such changes to our current shipping arrangements or accidents involving the shipment of our products could have a material adverse impact on our operations and financial results.
In addition, each of Greens Creek, Casa Berardi and Keno Hill are in remote locations. Greens Creek operates on an island and is substantially dependent on various forms of marine transportation for the transportation of employees and materials to the mine and for the export of its products from the mine. Further, Keno Hill requires its employees to fly in to its remote location. Casa Berardi can only be accessed by a long motor vehicle ride over a gravel road. Any disruption to these forms of marine, air and surface transportation could adversely impact mine operations, and possible effects could include suspension of operations.
Legal, Regulatory and Compliance Risks
We face substantial governmental regulation, including in the United States the Mine Safety and Health Act, various environmental laws and regulations and the 1872 Mining Law.
Our business is subject to extensive U.S. and foreign federal, state, provincial and local laws and regulations governing environmental protection, natural resources, prospecting, development, production, post-closure reclamation, taxes, labor standards and occupational health and safety laws and regulations, including mine safety, toxic substances and other matters. The costs associated with compliance with such laws and regulations are substantial. Possible future laws and regulations, or more restrictive interpretations of current laws and regulations by governmental authorities, could cause additional expense, capital expenditures, restrictions on or suspensions of operations and delays in the development of new properties.
U.S. mines like our Lucky Friday, Greens Creek and Nevada assets are inspected at least quarterly by MSHA, which inspections often lead to notices of violation under the Mine Safety and Health Act. Any of our U.S. mines could be subject to a temporary or extended shutdown as a result of a violation alleged by MSHA.
In addition, we have been and are currently involved in lawsuits or regulatory actions in which allegations have been made that we caused environmental damage, are responsible for environmental damage caused by others, or violated environmental laws or permits, and we may be subject to similar lawsuits or actions in the future. Moreover, such environmental matters have involved both our current and historical operations as well as the historical operations of entities and properties we have acquired. See the risk factors titled “Our operations are subject to complex, evolving and increasingly stringent environmental laws and regulations,” “Compliance with environmental regulations, and litigation based on such regulations, involves significant costs and can threaten existing operations or constrain expansion opportunities,” and “Our environmental and asset retirement obligations may exceed the provisions we have made.”
We cannot assure you that we will at all times be in compliance with applicable laws, regulations and permitting requirements. Failure to comply with applicable laws, regulations and permitting requirements may result in lawsuits or regulatory actions, including orders issued by regulatory or judicial authorities causing operations to cease or be curtailed, which may require corrective measures including capital expenditures, installation of additional equipment or remedial actions. Any one or more of these liabilities could have a material adverse impact on our financial condition.
In addition to existing regulatory requirements, legislation and regulations may be adopted, regulatory procedures modified, or permit limits reduced at any time, any of which could result in additional exposure to liability, operating expense, capital expenditures or restrictions and delays in the mining, production or development of our properties. Mining accidents and fatalities or toxic waste releases, whether or not at our mines or related to metals mining, may increase the likelihood of additional regulation or changes in law or enhanced regulatory scrutiny. In addition, enforcement or regulatory tools and methods available to regulatory bodies such as MSHA or the U.S. Environmental Protection Agency (“EPA”), which have not been or have infrequently been used against us or the mining industry, in the future could be used against us or the industry in general.
From time to time, the U.S. Congress considers proposed amendments to the 1872 Mining Law, which governs mining claims and related activities on federal lands. The extent of any future changes is not known and the potential impact on us as a result of U.S. Congressional action is difficult to predict. Changes to the 1872 Mining Law, if adopted, could adversely affect our ability to economically develop mineral reserves on federal lands. For example, from time to time the U.S. Congress debates imposing royalties on minerals extracted from federal lands. Although such legislation has not passed as of the date of this report, it is possible that in the
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future royalties or taxes will be imposed on mining operations conducted on federal land, which could adversely impact our financial results.
Our operations are subject to complex, evolving and increasingly stringent environmental laws and regulations. Compliance with environmental regulations, and litigation based on such regulations, involves significant costs and can threaten existing operations or constrain expansion opportunities.
Our operations, both in the United States and internationally, are subject to extensive environmental laws and regulations governing wastewater discharges; remediation, restoration and reclamation of environmental contamination; the generation, storage, treatment, transportation and disposal of hazardous substances; solid waste disposal; air emissions; protection of endangered and protected species and designation of critical habitats; mine closures and reclamation; and other related matters. In recent years, each of our Greens Creek, Lucky Friday, Casa Berardi and Keno Hill units have had compliance challenges and alleged violations of the Resource Conservation and Recovery Act (“RCRA”), the Clean Water Act (“CWA”) and similar Yukon regulations, respectively. Compliance challenges remain, and it is possible that we could again experience regulatory actions alleging violations of various environmental laws. For example, in May, 2023, the wall of an impoundment dam storing mixed waste material (i.e. clay, till, and rock, but not tailings or other deleterious materials) stripped during open pit mining at Casa Berardi experienced a slip resulting in the waste material being mobilized downstream. Although this incident has not yet had a material impact on operations, it could in the future, and it has caused us to begin a process that will involve analyzing all embankment structures at Casa Berardi, including their design and construction processes. Such analysis could cause us to implement embankment redesign and supplemental construction actions, which could be costly (with one estimate of $35 million if the extreme option of relocating the escaped material and the impoundment is required or chosen). Although there has been none to date, it is possible that this incident could result in a regulatory action by federal or provincial authorities. Failure to resolve pending or avoid future alleged permit exceedances or other legal violations could have a material negative impact on operations or financial performance.
In addition for continuing our current operations, we must obtain regulatory permits, permit modifications or other approvals to start and expand operations. New or revised environmental regulatory requirements are frequently proposed, many of which result in substantially increased costs for our business. See the risk factors “We are required to obtain governmental permits and other approvals in order to conduct mining operations” and “Mine closure and reclamation regulations impose substantial costs on our operations, and include requirements that we provide financial assurance supporting those obligations. These costs could significantly increase and we might not be able to provide financial assurance.”
Our U.S. operations are subject to the CWA, which requires permits for certain discharges into waters of the United States. Such permitting has been a frequent subject of litigation and enforcement activity by environmental advocacy groups and the EPA, which has resulted in declines in such permits or extensive delays in receiving them, as well as the imposition of penalties for permit violations. Adverse outcomes in lawsuits challenging permits or failure to comply with applicable regulations or permits could result in the suspension, denial, or revocation of required permits, or the imposition of penalties, any of which could have a material adverse impact on our cash flows, results of operations, or financial condition. See Note 16 of Notes to Consolidated Financial Statements.
Some of the mining wastes from our U.S. mines currently are exempt to a limited extent from the extensive set of EPA regulations governing hazardous waste under RCRA. If the EPA were to repeal this exemption, and designate these mining wastes as hazardous under RCRA, we would be required to expend additional amounts on the handling of such wastes and to make significant expenditures to construct hazardous waste storage or disposal facilities. In addition, if any of these wastes or other substances we release or cause to be released into the environment cause or has caused contamination in or damage to the environment at a U.S. mining facility, that facility could be designated as a “Superfund” site under the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (“CERCLA”). Under CERCLA, any present owner or operator of a Superfund site or the owner or operator at the time of contamination may be held jointly and severally liable regardless of fault and may be forced to undertake extensive remedial cleanup action or to pay for the cleanup efforts. The owner or operator also may be liable to federal, state and tribal governmental entities for the cost of damages to natural resources, which could be substantial. Additional regulations or requirements also are imposed on our tailings and waste disposal areas in Alaska under the CWA. See Note 16 of Notes to Consolidated Financial Statements.
Legislative and regulatory measures to address climate change and greenhouse gas emissions are in various phases of consideration. If adopted, such measures could increase our cost of environmental compliance and also delay or otherwise negatively affect efforts to obtain permits and other regulatory approvals with regard to existing and new facilities. Proposed measures could also result in increased cost of fuel and other consumables used at our operations, including the diesel generation of electricity at our Greens Creek operation, used when we are unable to access hydroelectric power. Climate change legislation may also affect our smelter customers that burn fossil fuels, resulting in fewer customers or increased costs to us, and may affect the market for the metals we produce with effects on prices that are not possible for us to predict.
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Adoption of these or similar new environmental regulations or more stringent application of existing regulations may materially increase our costs, threaten certain operating activities and constrain our expansion opportunities.
Some of our facilities are located in or near environmentally sensitive areas such as salmon fisheries, endangered species habitats, wilderness areas, national monuments and national forests, and we may incur additional costs to mitigate potential environmental harm in such areas.
In addition to evolving and expanding environmental regulations providing governmental authorities with the means to make claims against us, private parties have in the past and may in the future bring claims against us based upon damage to property and injury to persons resulting from the environmental, health and safety impacts of prior and current operations (including for exposure to or contamination by lead). Laws in the U.S. such as CERCLA and similar state laws may expose us to joint and several liability or claims for contribution made by the government (state or federal) or private parties. Moreover, exposure to these liabilities arises not only from our existing but also from closed operations, operations sold to third parties, or operations in which we had a leasehold, joint venture, or other interest. Because liability under CERCLA is often alleged on a joint and several basis against any property owner or operator or arranger for the transport of hazardous waste, and because we have been in operation since 1891, our exposure to environmental claims may be greater because of the bankruptcy or dissolution of other mining companies which may have engaged in more significant activities at a mining site than we but which are no longer available for governmental agencies or other claimants to make claims against or obtain judgments from. Similarly, there is also the potential for claims against us based on agreements entered into by certain affiliates and predecessor companies relating to the transfer of businesses or properties, which contained indemnification provisions relating to environmental matters. In each of the types of cases described in this paragraph, the government (federal or state) or private parties could seek to hold us liable for the actions of our subsidiaries or predecessors.
The laws and regulations, changes in such laws and regulations, and lawsuits and enforcement actions described in this risk factor could lead to the imposition of substantial fines, remediation costs, penalties and other civil and criminal sanctions against us. Further, substantial costs and liabilities, including for restoring the environment after the closure of mines, are inherent in our operations. There is no assurance that any such law, regulation, enforcement or private claim, or reclamation activity, would not have a material adverse effect on our financial condition, results of operations or cash flows.
Mine closure and reclamation regulations impose substantial costs on our operations and include requirements that we provide financial assurance supporting those obligations. These costs could significantly increase and we might not be able to provide financial assurance.
We are required by U.S. federal and state laws and regulations and by laws and regulations in the foreign jurisdictions in which we operate to reclaim our mining properties, which typically includes filing of a closure plan with the applicable regulator. The specific requirements may change and vary among jurisdictions, but they are similar in that they aim to minimize long term effects of exploration and mining disturbance by requiring the control of possible deleterious effluents and re-establishment to some degree of pre-disturbance land forms and vegetation. Mine closure plans are subject to periodic review and update requirements. In the course of reviewing or updating closure plans, it is common for the estimates, plans, costs and other details of the plan to be revised. Some of these revisions can be significant, including estimated closure cost increases. For example, we are in the process of updating the closure plan for our Casa Berardi mine. Currently we have recorded a $76.0 million discounted liability for estimated reclamation and closure costs at Casa Berardi, of $150.0 million on an undiscounted basis, which we believe, based on current negotiations with the regulator, is appropriate. Under the terms of the pending sale of our Hecla Quebec subsidiary, the buyer, Orezone, is entitled to reduce future deferred cash payments or contingent royalty payments owed to us if the financial assurance required under Casa Berardi’s updated closure plan exceeds $150.0 million, by 50% of such excess amount. This excludes amounts arising from the mine's post-closing actions that increase the closure scope beyond what is currently contemplated. See the risk factors “Our environmental and asset retirement obligations may exceed the provisions we have made,” “Our accounting and other estimates may be imprecise” and “We are required to obtain governmental permits and other approvals in order to conduct mining operations.”
In some cases, we are required to provide financial assurances as security for reclamation costs, which may exceed our estimates for such costs. Similarly, our reclamation costs may exceed the financial assurances in place and those assurances may ultimately be unavailable to us. We often satisfy financial assurance requirements by posting surety bonds or cash collateral however, we may be unable to obtain the required surety bonds or may not have the resources to provide cash collateral, and the bonds or collateral may not fully cover the cost of reclamation and any such shortfall could have a material adverse impact on our financial condition. Further, when we use the services of a surety company to provide the required bond for reclamation, the surety companies often require us to post collateral with them. Currently we utilize letters of credit issued under our revolving credit facility as the source of such collateral, and as a result, there are less funds available for us to borrow under the facility for other purposes. In the event that we are unable to obtain necessary bonds or to post sufficient collateral, we may experience a material adverse effect on our operations or financial results. See the risk factors, “Our existing stockholders are effectively subordinated to the holders of our Senior Notes", “Any downgrade in the credit ratings assigned to us or our debt securities could increase future borrowing costs, adversely affect the availability of new
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financing and may result in increased collateral requirements under our existing surety bond portfolio,” and “Mine closure and reclamation regulations impose substantial costs on our operations, and include requirements that we provide financial assurance supporting those obligations. These costs could significantly increase, and we might not be able to provide financial assurance.”
The EPA and other state, provincial or federal agencies may also require financial assurance for investigation and remediation actions that are required under settlements of enforcement actions under CERCLA or equivalent state or foreign regulations. Currently there are no financial assurance requirements for active mining operations under CERCLA, and a lawsuit filed by several environmental organizations which sought to require the EPA to adopt financial assurance rules for mining companies with active mining operations was dismissed by a federal court. In the future, financial assurance rules under CERCLA, if adopted, could be financially material and adverse to us. See the risk factors, “Our operations are subject to complex, evolving and increasingly stringent environmental laws and regulations. Compliance with environmental regulations, and litigation based on such regulations, involves significant costs and can threaten existing operations or constrain expansion opportunities” and “We are required to obtain governmental permits and other approvals in order to conduct mining operations.”
We are required to obtain governmental permits and other approvals in order to conduct mining operations.
In the ordinary course of business, mining companies are required to seek governmental permits and other approvals for continuation or expansion of existing operations or for the commencement of new operations. Obtaining the necessary governmental permits is a complex, time-consuming and costly process. The duration and success of our efforts to obtain permits are contingent upon many variables not within our control. Obtaining environmental permits, including the approval of reclamation plans, may increase costs and cause delays or halt the continuation of mining operations depending on the nature of the activity to be permitted and the interpretation of applicable requirements established by the permitting authority. Interested parties, including governmental agencies and non-governmental organizations or civic groups, may seek to prevent issuance of permits and intervene in the process or pursue extensive appeal rights. Past or ongoing violations of laws or regulations involving obtaining or complying with permits could provide a basis to revoke existing permits, deny the issuance of additional permits, or commence a regulatory enforcement action, each of which could have a material adverse impact on our operations or financial condition. In addition, evolving reclamation or environmental concerns may threaten our ability to renew existing permits or obtain new permits in connection with future development, expansions and operations. We cannot assure you that all necessary approvals and permits will be obtained and, if obtained, that the costs involved will not exceed those that we previously estimated. It is possible that the costs and delays associated with the compliance with evolving standards and regulations could become such that we would not proceed with a particular development or operation.
Specific examples of where we face permitting risk include the following:
See the risk factors, “Certain of our mines and exploration properties are located on land that is or may become subject to, competing title claims and/or claims of cultural significance” and “Legal challenges could prevent exploration projects from being developed or existing mines from future expansion.”
We could be subject to legal disputes that may materially adversely affect us.
We have experienced in the past, and could experience in the future, claims regarding violations of (i) federal securities laws, (ii) state corporate law, (iii) environmental damage or compliance and (iv) safety conditions or other matters at our mines. The outcome of any such claims would be uncertain. We may not resolve these claims favorably. Depending on the outcome, these actions could cause adverse financial effects or reputational harm to us. If any of these disputes result in a substantial monetary judgment against us, are settled on terms unfavorable to us, or otherwise impact our operations (such as by limiting our ability to obtain permits or approvals), our financial results or condition could be materially adversely affected. For a description of some of the lawsuits and other claims in which we are involved, see Note 16 of Notes to Consolidated Financial Statements.
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Our environmental and asset retirement obligations may exceed the provisions we have made.
We are subject to significant environmental obligations. At December 31, 2025, we had accrued $202.3 million as a provision for environmental and asset retirement obligations. We cannot be sure that we have accurately estimated these obligations, and in the future our accrual could materially change and we could voluntarily incur expenditures in excess of our accrual. Our environmental and asset retirement obligations and voluntary expenditures could have a material adverse impact on our cash flows, results of operations, or financial condition. For information on our potential environmental liabilities and asset retirement obligations, see Note 5 and Note 16 of Notes to Consolidated Financial Statements.
New federal and state laws, regulations and initiatives could impact our operations.
In recent years there have been several proposed or implemented ballot initiatives that sought to directly or indirectly curtail or eliminate mining in certain states, including Alaska, where our Greens Creek mine operates, and Montana, where we may commence exploration at the Libby Exploration project. While both a salmon initiative in Alaska and a water treatment initiative in Montana were defeated by voters in 2018, in the future similar or other initiatives that could impact our operations may be on the ballot in these states or other jurisdictions (including local or international) in which we currently or may in the future operate. To the extent any such initiative was passed and became law, there could be a material adverse impact on our financial condition, results of operations or cash flows.
Legal challenges could prevent exploration projects from being developed or existing mines from future expansion.
As a result of the legal challenges and other circumstances related to our Montana projects, we may be prevented from ever fully permitting or exploring or developing our Libby Exploration or Rock Creek Projects.
The titles to some of our properties may be defective or challenged.
Unpatented mining claims constitute a significant portion of our undeveloped property holdings in the United States. For our operations in Canada and Mexico, we hold mining claims, mineral concession titles and mining leases that are obtained and held in accordance with the laws of the respective countries, which provide us the right to exploit and explore the properties. The validity of the claims, concessions and leases could be uncertain and may be contested. Although we have conducted title reviews of our property holdings, title review does not necessarily preclude third parties (including governments) from challenging our title. In accordance with mining industry practice, we do not generally obtain title opinions until we decide to develop a property. Therefore, while we have attempted to acquire satisfactory title to our undeveloped properties, some titles may be defective.
Risks Relating to Our Common Stock and Our Indebtedness
We may be unable to generate sufficient cash to service all of our debt and meet our other ongoing liquidity needs and may be forced to take other actions to satisfy our obligations, which may be unsuccessful.
Our ability to make scheduled payments or to refinance our debt obligations and to fund our planned capital expenditures and other ongoing liquidity needs depends on our financial and operating performance, which is subject to prevailing economic and competitive conditions and to certain financial, business and other factors beyond our control. There can be no assurance that our business will generate sufficient cash flow from operations or that borrowings will be available to us to pay the principal, premium, if any, and interest on our debt or to fund our other liquidity needs. See the risk factor “The terms of our debt impose restrictions on our operations.” We may need to refinance all or a portion of our debt on or before maturity. We may be unable to refinance any of our debt on commercially reasonable terms or at all.
In addition, we conduct substantially all of our operations through our subsidiaries. Accordingly, repayment of our debt is dependent on the generation of cash flow by our subsidiaries and their ability to make such cash available to us, by dividend, debt repayment or otherwise. Certain of our subsidiaries are not guarantors of our debt and thus do not have any obligation to pay amounts due on our debt or to make funds available for that purpose. Our subsidiaries may not be able to, or may not be permitted to, make distributions to enable us to make payments in respect of our debt. Each subsidiary is a distinct legal entity and, under certain circumstances, legal and contractual restrictions may limit our ability to obtain cash from our subsidiaries. While the credit agreement governing our revolving credit facility and the indenture governing our Senior Notes limit the ability of our subsidiaries to incur consensual restrictions on their ability to pay dividends or make other intercompany payments to us, these limitations are subject to qualifications and exceptions. In the event that we do not receive distributions from our subsidiaries, we may be unable to make required principal and interest payments on our debt.
27
If our cash flows and capital resources are insufficient to fund our debt service obligations, we may be forced to reduce or delay investments, capital expenditures and exploration efforts or to sell assets, seek additional capital or restructure or refinance our debt. Our ability to restructure or refinance our debt will depend on the condition of the capital markets and our financial condition at such time. Any refinancing of our debt could be at higher interest rates and may require us to comply with more onerous covenants, which could further restrict our business operations. The terms of existing or future debt instruments and the indenture governing our Senior Notes may restrict us from adopting some of these alternatives. Further, these alternative measures may not be successful and may not permit us to meet our scheduled debt service obligations. In addition, any failure to make payments of interest and principal on our outstanding debt on a timely basis would likely result in a reduction of our credit rating, which could harm our ability to incur additional debt.
The price of our stock has a history of volatility and could decline in the future.
Shares of our common and outstanding preferred stock are listed on the New York Stock Exchange (“NYSE”). The market price for our stock has been volatile, often based on:
The market price of our stock at any given point in time may not accurately reflect our value, and may prevent stockholders from realizing a profit on, or recovering, their investment.
We may not be able to pay common or preferred stock dividends in the future.
Since January 2010, we have paid all regular quarterly dividends on our Series B preferred stock. The annual dividend payable on the Series B preferred stock is currently $0.6 million. Prior to 2010, there were numerous occasions when we did not declare dividends on the Series B Preferred Stock, but instead deferred them. We cannot assure you that we will continue to pay preferred stock dividends in the future.
Until February 2025, our common stock dividend policy had two components: (1) a dividend that links the amount of dividends on our common stock to our average quarterly realized silver price in the preceding quarter, and (2) a minimum annual dividend of $0.015 per share of common stock, in each case payable quarterly, when declared. Currently, our dividend policy has only the minimum component. See Note 12 of Notes to Consolidated Financial Statements for more information on our common stock dividend policy.
From the fourth quarter of 2011 through and including the fourth quarter of 2025, our Board of Directors has declared a common stock dividend under the policy described above. The declaration and payment of common stock dividends, whether pursuant to the policy or in addition thereto, is at the sole discretion of our Board of Directors, and we cannot assure you that we will continue to declare
28
and pay common stock dividends in the future, and our Board of Directors make revise or revoke the current common stock dividend policy at any time and without advance notice. In addition, the indenture governing our Senior Notes limits our ability to pay dividends.
Our existing stockholders are effectively subordinated to the holders of our Senior Notes.
In the event of our liquidation or dissolution, stockholders’ entitlement to share ratably in any distribution of our assets would be subordinated to the holders of our Senior Notes. Any rights that a stockholder may have in the event of bankruptcy, liquidation or a reorganization of us or any of our subsidiaries, and any consequent rights of stockholders to realize on the proceeds from the sale of any of our or our subsidiaries’ assets, will be effectively subordinated to the claims of the holders of our Senior Notes.
The issuance of additional shares of our preferred or common stock in the future could adversely affect holders of common stock.
The market price of our common stock may be influenced by any preferred or common stock we may issue. Our Board of Directors is authorized to issue additional classes or series of preferred stock without any action on the part of our stockholders. This includes the power to set the terms of any such classes or series of preferred stock that may be issued, including voting rights, dividend rights and preferences over common stock with respect to dividends or upon the liquidation, dissolution or winding up of the business and other terms. If we issue preferred stock in the future that has preference over our common stock with respect to the payment of dividends or upon liquidation, dissolution or winding up, or if we issue preferred stock with voting rights that dilute the voting power of our common stock, the rights of holders of the common stock or the market price of the common stock could be adversely affected.
The provisions in our certificate of incorporation, our by-laws and Delaware law could delay or deter tender offers or takeover attempts.
Certain provisions in our restated certificate of incorporation, our by-laws and Delaware law could make it more difficult for a third party to acquire control of us, even if that transaction could be beneficial to stockholders. These impediments include:
In addition, amendment of most of the provisions described above requires approval of at least 80% of the outstanding voting stock.
The terms of our debt impose restrictions on our operations.
29
The indenture governing our Senior Notes includes several significant covenants. These covenants could adversely affect us by limiting our ability to plan for or react to market conditions or to meet our capital needs. These covenants, among other things:
These restrictions may affect our ability to grow in accordance with our strategy. Further, our financial results, our substantial indebtedness and our credit ratings could adversely affect the availability and terms of any financing.
In addition, our revolving credit facility requires us to comply with various covenants, including certain financial ratios, that restrict management’s discretion to operate our business in certain circumstances. For example, these restrictions include limitations that could affect our ability to incur additional indebtedness, place liens or mortgages on our assets, sell assets or release collateral. These restrictions could make it more difficult for us to obtain additional financing or take advantage of business opportunities. Furthermore, a breach of any of these covenants could result in an event of default under the agreement governing our revolving credit facility that, if not cured or waived, could give our lenders the right to terminate commitments to lend and cause all amounts outstanding with respect to the debt to be due and payable immediately. Acceleration of any of our debt could result in cross-defaults under our other debt instruments, including the indenture governing our Senior Notes, as well as certain forward sales contracts which may be outstanding from time to time. Our assets and cash flow may be insufficient to repay borrowings fully under all of our outstanding debt instruments if any of our debt instruments are accelerated upon an event of default, which could force us into bankruptcy or liquidation. In such an event, we may be unable to repay our debt obligations. In addition, in some instances, this would create an event of default under the indenture governing our Senior Notes.
Our variable rate indebtedness subjects us to interest rate risk, which could cause our indebtedness service obligations to increase significantly.
Borrowings under our credit facility are at variable rates of interest and expose us to interest rate risk. If interest rates increase, our debt service obligations on the variable rate indebtedness would increase even though the amount borrowed remained the same, and our net income and cash flows, including cash available for servicing our indebtedness, would correspondingly decrease. Assuming all revolving loans currently available to us were fully drawn, each one percentage point change in interest rates would result in a $2.2 million change in annual cash interest expense on our credit facility.
General Risk Factors
Global financial events or developments impacting major industrial or developing countries may have an impact on our business and financial condition in ways that we currently cannot predict.
The COVID-19 pandemic and 2008 credit crisis and related turmoil in the global financial system and ensuing recession had an impact on our business and financial position, and similar events in the future could also impact us. The re-emergence of a financial crisis or recession or reduced economic activity in the United States, China, India and other industrialized or developing countries, or disruption of key sectors of the economy such as oil and gas, may have a significant effect on our results of operations or limit our ability to raise capital through credit and equity markets. The prices of the metals that we produce are affected by a number of factors, and it is unknown how these factors may be impacted by a global financial event or developments impacting major industrial or developing countries.
30
Tariffs, other potential changes to tariff and import/export regulations, or trade disputes between the United States and other jurisdictions may have a negative effect on global economic conditions and on our business, financial results and financial condition.
Since 2018, the United States has imposed tariffs on certain items imported from various countries where we currently sell or in the past sold our products. Since January 2025, the Trump Administration has significantly expanded and modified these tariff policies during President Trump's second term, creating an evolving landscape of trade restrictions and uncertainty.
We currently sell our products into international markets, including Japan, South Korea, and Canada, with minimal U.S. sales. To date, any tariffs on products to or from those countries have not materially impacted our business. However, we face substantial risks from the current trade environment. For example, we historically have had significant sales into China. However, due to U.S. tariffs and China's reciprocal tariffs - currently 20% on our silver concentrate, the China market is effectively closed for us, and we have not shipped any products to China since March 2025. The elimination of the China market limits the competition for our products which could have a material adverse impact on our financial results.
In addition to direct impact on the goods we produce, tariffs have other potential impacts on our operations and financial results. For example, we have significant sales of products shipped to Asia via oceangoing vessels sourced from maritime transport operators. If tariffs under Executive Order 14269 (which is suspended until November 2026) apply to vessels carrying our products, shipping charges could increase substantially. And, as a commodity producer, we have limited ability to pass on cost increases to our customers. While we are not currently subject to these fees and believe exemptions may be available when tariffs take effect, uncertainty remains. Further, materials we import to the U.S. from tariff-affected countries, could become significantly more expensive, increasing our production costs.
The rapidly changing nature of trade policies and the potential for sudden tariff implementations, retaliatory measures, policy reversals, or removal of exemptions create ongoing uncertainty that makes business planning difficult. Any combination of these factors could depress economic activity and materially and adversely affect our business, financial condition, and results of operations.
Our profitability could be affected by inflation, including the prices of other commodities.
Our profitability is sensitive to cost inflation, including, but not limited to the costs of commodities such as fuel (in particular as used at Greens Creek to generate electricity when hydropower is unavailable, as is the case from time to time, particularly in periods with low precipitation), steel, and cement, as well as other consumables and labor. Recently the prices we pay for commodities and consumables have increased which has increased the operating costs at our mine sites. In addition, labor costs have increased, including under the terms of our labor agreement with the union at the Lucky Friday mine. Increased or persistent inflation or other upward pressures could continue to increase our costs, and could have a material impact on our results of operations.
Our business depends on availability of skilled miners and good relations with employees.
We are dependent upon the ability and experience of our executive officers, managers, employees, contractors and their employees, and other personnel, and we cannot assure you that we will be able to retain such employees or contractors. We compete with other companies both in and outside the mining industry in recruiting and retaining qualified employees and contractors knowledgeable about the mining business. From time to time, we have encountered, and may in the future encounter, difficulty recruiting skilled mining personnel at acceptable wage and benefit levels in a competitive labor market, and may be required to utilize contractors, which can be more costly. Temporary or extended lay-offs due to mine closures may exacerbate such issues and result in vacancies or the need to hire less skilled or efficient employees or contractors. The loss of skilled employees or contractors or our inability to attract and retain additional highly skilled employees and contractors could have an adverse effect on our business and future operations.
We or our contractors may experience labor disputes, work stoppages or other disruptions in production that could adversely affect our business and results of operations. Currently, the Lucky Friday mine is our only operation where some of our employees are subject to a collective bargaining agreement, however, there have been union organizing efforts at our other operations. The unionized employees at Lucky Friday were on strike from March 2017 until January 2020, when the union ratified a new collective bargaining agreement (“CBA”), which expired in January 2023 (a new six year CBA was approved by the union in January 2023). The strike significantly impacted production at the Lucky Friday and caused significant costs and expenses during each year of the strike. Any future strikes or other labor or related disruptions could adversely affect our financial condition and results of operations.
31
Our information technology systems may be vulnerable to disruption which could place our systems at risk from data loss, operational failure, or compromise of confidential information.
We rely on various information technology systems and on third party developers and contractors in connection with operations, including production, equipment operation and financial support systems. While we regularly monitor the security of our systems, they remain vulnerable to disruption, damage or failure from a variety of sources, including errors by employees or contractors, computer viruses, cyber-attacks including phishing, ransomware and similar malware, misappropriation of data by outside parties, and various other threats all of which have been amplified through the proliferation of artificial intelligence ("AI"), particularly generative AI. In particular, we use cloud systems which could be vulnerable to external intrusions. Techniques used to obtain unauthorized access to or sabotage our systems are under continuous and rapid evolution, and we may be unable to detect efforts to disrupt our data and systems in advance. Breaches and unauthorized access carry the potential to cause losses of assets or production, operational delays, equipment failure that could cause other risks to be realized, inaccurate recordkeeping, or disclosure of confidential information, any of which could result in financial losses and regulatory or legal exposure, and could have a material adverse effect on our cash flows, financial condition or results of operations.
We could also be adversely affected by system or network disruptions due to disasters or if new or upgraded information technology systems are defective, not installed properly or not properly integrated into our operations. For example, we are in the process of migrating to a new enterprise resource planning (“ERP”) software platform which we ultimately expect will improve our operational efficiency. However, the project is complex, time-consuming and costly, and there is no assurance we will efficiently or successfully implement the new ERP platform. Additionally, disaster recovery failure or system modification failures could have a material adverse effect on our business, financial position and results of operations and could, if not successfully implemented, adversely impact the effectiveness of our internal controls over financial reporting.
Competition from other mining companies may harm our business.
We compete with other mining companies, some of which have greater financial resources than we do or other advantages, in various areas which include:
Additional issuances of equity securities by us would dilute the ownership of our existing stockholders and could reduce our earnings per share.
We may issue securities in the future in connection with raising capital, acquisitions, strategic transactions or for other purposes. To the extent we issue any additional equity securities (or securities convertible into equity), the ownership of our existing stockholders would be diluted and our earnings per share could be reduced.
If a large number of shares of our common stock are sold in the public market, the sales could reduce the trading price of our common stock and impede our ability to raise future capital.
We cannot predict what effect, if any, future issuances by us of our common stock or other equity will have on the market price of our common stock. Any shares that we may issue may not have any resale restrictions, and therefore could be immediately sold by the holders. The market price of our common stock could decline if certain large holders of our common stock, or recipients of our common stock, sell all or a significant portion of their shares of common stock or are perceived by the market as intending to sell these shares other than in an orderly manner. In addition, these sales could also impair our ability to raise capital through the sale of additional common stock in the capital markets.
Any downgrade in the credit ratings assigned to us or our debt securities could increase future borrowing costs, adversely affect the availability of new financing and may result in increased collateral requirements under our existing surety bond portfolio.
As of February 12, 2026, our Senior Notes were rated “BB-” by Standard & Poor’s and “B1” by Moody’s Investors Service. We cannot assure you that any rating currently assigned by Standard & Poor’s or Moody’s to us or our debt securities (including the Senior
32
Notes) will remain unchanged for any given period of time or that a rating will not be lowered if, in that rating agency’s judgment, future circumstances relating to the basis of the rating so warrant. If we are unable to maintain our outstanding debt and financial ratios at levels acceptable to the credit rating agencies, or should our business prospects or financial results deteriorate, including as a result of declines in silver and gold prices or other factors beyond our control, our ratings could be downgraded by the rating agencies. Downgrading the credit rating of our debt securities or placing us on a watch list for possible future downgrading would likely adversely impact us, including our ability to obtain financing on favorable terms, if at all, increase borrowing costs, result in increased collateral requirements under our surety bond portfolio, and have an adverse effect on the market price of our securities, including our Senior Notes.
Damage to our reputation may result in decreased investor confidence, challenges in maintaining positive community relations and can pose additional obstacles to our ability to develop our projects, which may result in a material adverse impact on our business, financial position, results of operations and growth prospects.
Damage to our reputation can be the result of the actual or perceived occurrence of a variety of events and circumstances, and could result in negative publicity (for example, with respect to handling of environmental, safety and security matters, dealings with local community organizations or individuals, community commitments, handling of cultural sites or resources, and various other matters).
We have also provided greater transparency on environmental, social and governance performance in response to stakeholder engagement and requests in recent years, and provide supplemental disclosures in our annual Sustainability Report and other sustainability reports on our website in connection with stakeholder concerns and issues. Such increased transparency may result in greater scrutiny and impact how we are perceived.
The growing use of social media to generate, publish and discuss community news and issues and to connect with others has made it significantly easier, among other things, for individuals and groups to share their opinions of us and our activities, whether true or not. We do not have direct control over how we are perceived by others and any resulting loss of reputation could have a material adverse effect on our business, financial position and results of operations.
Item 1B. Unresolved Staff Comments
None.
Item 1C. Cybersecurity
Risk Management and Strategy
Any material cybersecurity incident that we become aware of follows our standard guidelines for crisis communications and response, engaging personnel, management, and the Board of Directors as appropriate. In cases where the materiality of a cybersecurity incident is not immediately apparent, our Vice President, Information Technology (“VP, IT”) would report the incident to his supervisor, our Chief Financial Officer (“CFO”), and to our Senior Vice President - General Counsel ("GC"). This is consistent with our overall risk management system which relies, in part, on a “chain of command” reporting system in which supervisors monitor their respective departments and constantly seek feedback from employees or vendors in their department for potentially material events. This system is designed to ensure that information reaches the appropriate levels of the Company, including the Board of Directors. In cases where a question of materiality, public disclosure or legal exposure is in question, our CFO or GC will direct the flow of information to other members of management or the Board as appropriate. Additionally, we have standing weekly senior staff meetings where the President and CEO along with each vice president and occasionally other employees meet to discuss current issues the Company is facing. We expect that any cybersecurity incident that our VP, IT believes may be material to the Company will be discussed at these meetings, or sooner if circumstances warrant.
When a cybersecurity incident is detected, we conduct an impact assessment, determine materiality, and take appropriate actions as described above. This process is also followed when notified that a software/services supplier has a cybersecurity incident.
33
There were
Board and Management Oversight
In addition to the risk management policies described above, management regularly reviews cyber security planning, including development and management of the program, budgeting, and participation in the incident response plan.
Item 2. Properties
Note on SEC Mining Disclosure Rules
Information concerning our mining properties in this Annual Report on Form 10-K has been prepared in accordance with the requirements of subpart 1300 of SEC Regulation S-K. Subpart 1300 requires us to disclose our mineral resources, in addition to our mineral reserves, as of the end of our most recently completed fiscal year both in the aggregate and for each of our individually material mining properties.
You are cautioned that mineral resources do not have demonstrated economic value. Mineral resources are subject to further exploration and development, are subject to additional risks, and no assurance can be given that they will eventually convert to future reserves. Inferred Resources, in particular, have a great amount of uncertainty as to their existence and their economic and legal feasibility. Investors are cautioned not to assume that any part or all of the Inferred Resource exists or is economically or legally mineable. See Item 1A. Risk Factors.
34
Summary
The map below shows the locations of our operations and our exploration projects, as well as our corporate offices located in Coeur d’Alene, Idaho; Vancouver, British Columbia; Juneau, Alaska; Mullan, Idaho; Val d'Or, Quebec; and Whitehorse, Yukon.
35
The following table summarizes our aggregate metal quantities produced and sold for the last three years:
|
|
|
|
Year Ended December 31, |
|
|||||||||
|
|
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Silver - |
|
Ounces produced |
|
|
17,026,785 |
|
|
|
16,169,930 |
|
|
|
14,342,863 |
|
|
|
Payable ounces sold |
|
|
15,236,377 |
|
|
|
14,485,158 |
|
|
|
12,955,006 |
|
Gold - |
|
Ounces produced |
|
|
150,509 |
|
|
|
141,923 |
|
|
|
151,259 |
|
|
|
Payable ounces sold |
|
|
138,709 |
|
|
|
132,442 |
|
|
|
141,602 |
|
Lead - |
|
Tons produced |
|
|
56,131 |
|
|
|
52,515 |
|
|
|
40,347 |
|
|
|
Payable tons sold |
|
|
48,727 |
|
|
|
44,795 |
|
|
|
35,429 |
|
Zinc - |
|
Tons produced |
|
|
68,558 |
|
|
|
66,308 |
|
|
|
60,579 |
|
|
|
Payable tons sold |
|
|
47,553 |
|
|
|
47,593 |
|
|
|
43,050 |
|
Copper - |
|
Tons produced |
|
|
1,804 |
|
|
|
1,874 |
|
|
|
1,823 |
|
|
|
Payable tons sold |
|
|
337 |
|
|
|
50 |
|
|
|
— |
|
36
A summary overview of our mining operations and exploration and pre-development projects is shown in the following table: |
||||||||||||||||||||
|
|
Location |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Property |
|
Country |
|
State/Province |
|
Ownership |
|
|
Claims |
|
Permit Conditions |
|
Stage |
|
Mine Type |
|
Commodity |
|
Mineralization Style |
|
Greens Creek |
|
United States |
|
Alaska |
|
|
100.0 |
% |
|
440 unpatented lode claims, 58 unpatented millsite claims (8,072 acres), 21 patented lode claims and one patented millsite claim (328 acres); Land Exchange Properties (7,301 acres) |
|
Private or USFS administered land, all required permits for production in place |
|
Production |
|
Underground |
|
Ag, Au, Pb, Zn |
|
Massive Sulfide |
Lucky Friday |
|
United States |
|
Idaho |
|
|
100.0 |
% |
|
43 patented lode and millsite claims (710 acres); 53 unpatented lode claims (535 acres) |
|
Private or USFS administered land, all required permits for production in place |
|
Production |
|
Underground |
|
Ag, Pb, Zn |
|
Vein |
Casa Berardi |
|
Canada |
|
Quebec |
|
|
100.0 |
% |
|
407 claims; 49,480 acres (20,024 ha) |
|
All required permits for production in place or in process |
|
Production |
|
Underground/Open Pit |
|
Au |
|
Vein/Shear Zone |
Keno Hill |
|
Canada |
|
Yukon |
|
|
100.0 |
% |
|
703 quartz mining leases, 867 quartz mining claims, 2 Crown Grants; (238.12 km2 / 23,812 ha) |
|
All required permits for production in place or in process |
|
Development |
|
Underground |
|
Ag, Au, Pb, Zn |
|
Vein/Fault Zone |
San Sebastian |
|
Mexico |
|
Durango |
|
|
100.0 |
% |
|
31 mining concessions; 99,532 acres (40,279 ha) |
|
All required permits for exploration and production in place |
|
Exploration |
|
Underground/Open Pit |
|
Ag, Au, Cu, Pb, Zn |
|
Vein |
Fire Creek |
|
United States |
|
Nevada |
|
|
100.0 |
% |
|
831 unpatented lode claims (17,175 acres); leases (409 acres); private land (3,208 acres) |
|
BLM administered land, Plan of Operations and other required State permits in place |
|
Exploration |
|
Underground |
|
Au, Ag |
|
Vein |
Hollister |
|
United States |
|
Nevada |
|
|
100.0 |
% |
|
853 unpatented lode claims, 152 leased unpatented lode claims, 11 unpatented mill site claims; 17,960 acres total |
|
BLM administered land, Plan of Operations and other required State permits in place |
|
Exploration |
|
Underground |
|
Au, Ag |
|
Vein |
Midas |
|
United States |
|
Nevada |
|
|
100.0 |
% |
|
1,456 unpatented lode claims, 33 leased unpatented lode claims, (total 27,583 acres unpatented claims); 44 patented lode claims, private land (2,417 acres) |
|
BLM administered land, Plan of Operations and other required State permits in place |
|
Exploration |
|
Underground |
|
Au, Ag |
|
Vein |
Heva - Hosco |
|
Canada |
|
Quebec |
|
|
100.0 |
% |
|
102 claims; 9,600 acres (3,884 ha) |
|
Annual intervention permits for exploration in place along with authorization for road building |
|
Exploration |
|
Underground/Open Pit |
|
Au |
|
Vein/Shear Zone |
San Juan Silver |
|
United States |
|
Colorado |
|
|
100.0 |
% |
|
129 patented lode and millsite claims, fee lands, 704 unpatented lode claims; 13,645 total acres |
|
7 Notice-of-Intent areas for Exploration, Mining Plan of Operations (USFS); 112-d2 mining permit (CO DRMS) |
|
Exploration |
|
Underground |
|
Ag, Pb, Zn |
|
Vein |
Star |
|
United States |
|
Idaho |
|
|
100.0 |
% |
|
174 patented lode and millsite claims; 2,376 total acres |
|
Private land, required permits in place for exploration |
|
Exploration |
|
Underground |
|
Ag, Zn, Pb |
|
Vein |
Monte Cristo |
|
United States |
|
Nevada |
|
|
100.0 |
% |
|
334 unpatented lode claims, 10 leased unpatented lode claims (6,880 acres) |
|
BLM administered land, Notice of Intent required |
|
Exploration |
|
Underground/Open Pit |
|
Au, Ag |
|
Vein |
Rock Creek |
|
United States |
|
Montana |
|
|
100.0 |
% |
|
99 patented lode claims (1,859 acres), 370 unpatented lode claims (6,829 acres), 115 unpatented millsite claims, 5 unpatented tunnel sites; other private land: 754 acres |
|
Private or USFS administered land. Some State permits in-place; no Federal permits. |
|
Exploration |
|
Underground |
|
Ag, Cu |
|
Sediment Hosted - Stratabound |
Libby Exploration |
|
United States |
|
Montana |
|
|
100.0 |
% |
|
2 patented lode claims, 36.84 acres (22.33 in wilderness, 14.51 outside wilderness); 26 unpatented lode claims (537 acres), 854 unpatented mill site claims, 11 unpatented tunnel site claims |
|
Private or USFS administered land. Some State permits in-place; no Federal permits. |
|
Exploration |
|
Underground |
|
Ag, Cu |
|
Sediment Hosted - Stratabound |
37
Republic |
|
United States |
|
Washington |
|
|
100.0 |
% |
|
114 patented claims and private land; 22 unpatented lode claims, 3 state leases, 2,096 acres surface rights, 3,536 acres of mineral rights |
|
Private, BLM and WA DNR administered lands |
|
Exploration |
|
Underground/Open Pit |
|
Au, Ag |
|
Vein |
Silver Valley |
|
United States |
|
Idaho |
|
|
100.0 |
% |
|
Various exploration properties and claim holdings |
|
Private or USFS administered land |
|
Exploration |
|
Underground |
|
Ag, Zn, Pb |
|
Vein |
Aurora |
|
United States |
|
Nevada |
|
|
100.0 |
% |
|
452 unpatented lode claims, 92 patented lode claims, 25 private parcels; 9,928 total acres |
|
Private or USFS administered land, permit work in progress for USFS lands |
|
Exploration |
|
Underground/Open Pit |
|
Au, Ag |
|
Vein |
Opinaca/Wildcat |
|
Canada |
|
Quebec |
|
50% / 100% |
|
|
Opinaca: 248 claims (50%; 32,064 acres (12,975 ha)); Wildcat: 224 claims (100%; 28,928 acres (11,707 ha)) |
|
Intervention permits for exploration updated every year |
|
Exploration |
|
Underground |
|
Au |
|
Vein/Shear Zone |
|
Rackla - Tiger |
|
Canada |
|
Yukon |
|
|
100.0 |
% |
|
3,315 quartz mineral claims; 164,547 acres (66,590 ha) |
|
Class 3 Quartz Mining Land Use Approval LQ00531; approved by Yukon Environmental and Socio-economic Assessment Board |
|
Exploration |
|
Open Pit/Underground |
|
Au |
|
Carbonate hosted/replacement - reduced intrusion related |
Rackla - Osiris |
|
Canada |
|
Yukon |
|
100.0% |
|
|
1,478 quartz mineral claims; 74,576 acres (30,180 ha) |
|
Class 4 Quartz Mining Land Use Approval LQ00444; approved by Yukon Environmental and Socio-economic Assessment Board |
|
Exploration |
|
Open Pit/Underground |
|
Au |
|
Carbonate hosted, disseminated (Carlin-style) |
|
Hecla is the operator at all mines and exploration properties. Mineral processing plants and related facilities are part of the infrastructure at each operating mine.
The following table summarizes the in-situ mineral reserves for all properties as of December 31, 2025:
Asset |
|
Tons (000) |
|
Silver (oz/ton) |
|
Gold (oz/ton) |
|
Lead % |
|
Zinc % |
|
Silver (000 oz) |
|
Gold (000 oz) |
|
Lead Tons |
|
Zinc Tons |
Proven Reserves: (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Greens Creek (2,3) |
|
13 |
|
23.9 |
|
0.120 |
|
3.0 |
|
7.8 |
|
309 |
|
1 |
|
390 |
|
1,000 |
Lucky Friday (2,4) |
|
4,747 |
|
11.8 |
|
— |
|
7.5 |
|
3.8 |
|
56,096 |
|
— |
|
355,370 |
|
181,180 |
Casa Berardi Underground (2,5) |
|
112 |
|
- |
|
0.134 |
|
— |
|
— |
|
— |
|
15 |
|
— |
|
— |
Casa Berardi Open Pit(2,5) |
|
6,031 |
|
- |
|
0.074 |
|
— |
|
— |
|
— |
|
448 |
|
— |
|
— |
Keno Hill(2,6) |
|
9 |
|
23.5 |
|
— |
|
2.4 |
|
6.2 |
|
235 |
|
— |
|
220 |
|
600 |
Total Proven |
|
10,912 |
|
|
|
|
|
|
|
|
|
56,640 |
|
464 |
|
355,980 |
|
182,780 |
Probable Reserves: (7) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Greens Creek (2,3) |
|
10,166 |
|
10.4 |
|
0.083 |
|
2.3 |
|
6.3 |
|
105,788 |
|
841 |
|
237,730 |
|
637,130 |
Lucky Friday (2,4) |
|
1,636 |
|
9.5 |
|
— |
|
6.0 |
|
3.7 |
|
15,493 |
|
— |
|
97,590 |
|
60,710 |
Casa Berardi Underground (2,5) |
|
420 |
|
— |
|
0.152 |
|
— |
|
— |
|
— |
|
64 |
|
— |
|
— |
Casa Berardi Open Pit(2,5) |
|
7,515 |
|
— |
|
0.084 |
|
— |
|
— |
|
— |
|
631 |
|
— |
|
— |
Keno Hill(2,6) |
|
2,104 |
|
25.3 |
|
0.007 |
|
2.9 |
|
2.9 |
|
53,172 |
|
16 |
|
61,600 |
|
61,230 |
Total Probable |
|
21,841 |
|
|
|
|
|
|
|
|
|
174,453 |
|
1,552 |
|
396,920 |
|
759,070 |
Proven and Probable Reserves: (1,7) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Greens Creek (2,3) |
|
10,179 |
|
10.4 |
|
0.083 |
|
2.3 |
|
6.3 |
|
106,097 |
|
842 |
— |
238,120 |
— |
638,130 |
Lucky Friday (2,4) |
|
6,383 |
|
11.2 |
|
— |
|
7.1 |
|
3.8 |
|
71,589 |
|
— |
— |
452,960 |
— |
241,890 |
Casa Berardi Underground (2,5) |
|
532 |
|
— |
|
0.148 |
|
— |
|
— |
|
— |
|
79 |
— |
— |
— |
— |
Casa Berardi Open Pit(2,5) |
|
13,546 |
|
— |
|
0.080 |
|
— |
|
— |
|
— |
|
1,079 |
|
— |
|
— |
Keno Hill(2,6) |
|
2,113 |
|
25.3 |
|
0.007 |
|
2.9 |
|
2.9 |
|
53,407 |
|
16 |
|
61,820 |
|
61,830 |
Total Proven and Probable |
|
32,753 |
|
|
|
|
|
|
|
|
|
231,093 |
|
2,016 |
|
752,900 |
|
941,850 |
38
The following table summarizes the in-situ mineral resources (8) for all properties, exclusive of mineral reserves, as of December 31, 2025:
39
Asset |
|
Tons (000) |
|
Silver (oz/ton) |
|
Gold (oz/ton) |
|
Lead % |
|
Zinc % |
|
Copper % |
|
Silver (000 oz) |
|
Gold (000 oz) |
|
Lead Tons |
|
Zinc Tons |
|
Copper Tons |
|
|||||||||||
Measured Resources: (9) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Greens Creek (12,13) |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Lucky Friday (12,14) |
|
|
1,806 |
|
|
11.8 |
|
|
— |
|
|
7.4 |
|
|
2.1 |
|
|
— |
|
|
21,328 |
|
|
— |
|
|
134,280 |
|
|
37,610 |
|
|
— |
|
Casa Berardi Underground (12,15) |
|
|
1,306 |
|
|
— |
|
|
0.199 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
260 |
|
|
— |
|
|
— |
|
|
— |
|
Casa Berardi Open Pit (12,15) |
|
|
2,891 |
|
|
— |
|
|
0.083 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
239 |
|
|
— |
|
|
— |
|
|
— |
|
Keno Hill (12,16) |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
San Sebastian - Oxide (17) |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
San Sebastian - Sulfide (17) |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Fire Creek (18,19) |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Hollister (18,20) |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Midas (18,21) |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Heva (22) |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Hosco (22) |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Star (12,23) |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Rackla - Tiger Underground (29) |
|
|
32 |
|
|
— |
|
|
0.060 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
2 |
|
|
— |
|
|
— |
|
|
— |
|
Rackla - Tiger Open Pit (29) |
|
|
881 |
|
|
— |
|
|
0.085 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
75 |
|
|
— |
|
|
— |
|
|
— |
|
Rackla - Osiris Underground (30) |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Rackla - Osiris Open Pit (30) |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Total Measured |
|
|
6,916 |
|
|
|
|
|
|
|
|
|
|
|
|
21,328 |
|
|
576 |
|
|
134,280 |
|
|
37,610 |
|
|
— |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
|
Tons (000) |
|
Silver (oz/ton) |
|
Gold (oz/ton) |
|
Lead% |
|
Zinc% |
|
Copper% |
|
Silver (000 oz) |
|
Gold (000 oz) |
|
Lead Tons |
|
Zinc Tons |
|
Copper Tons |
|
|||||||||||
Indicated Resources: (10) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Greens Creek (12,13) |
|
|
5,844 |
|
|
15.2 |
|
|
0.112 |
|
|
3.4 |
|
|
8.9 |
|
|
— |
|
|
88,655 |
|
|
653 |
|
|
200,430 |
|
|
522,550 |
|
|
— |
|
Lucky Friday (12,14) |
|
|
1,619 |
|
|
11.9 |
|
|
— |
|
|
6.2 |
|
|
1.5 |
|
|
— |
|
|
19,213 |
|
|
— |
|
|
100,200 |
|
|
24,850 |
|
|
— |
|
Casa Berardi Underground (12,15) |
|
|
3,555 |
|
|
— |
|
|
0.167 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
595 |
|
|
— |
|
|
— |
|
|
— |
|
Casa Berardi Open Pit (12,15) |
|
|
1,123 |
|
|
— |
|
|
0.078 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
88 |
|
|
— |
|
|
— |
|
|
— |
|
Keno Hill (12,16) |
|
|
583 |
|
|
24.1 |
|
|
0.009 |
|
|
2.5 |
|
|
6.3 |
|
|
— |
|
|
14,039 |
|
|
5 |
|
|
14,460 |
|
|
36,710 |
|
|
— |
|
San Sebastian - Oxide (17) |
|
|
1,435 |
|
|
6.2 |
|
|
0.091 |
|
|
— |
|
|
— |
|
|
— |
|
|
8,889 |
|
|
130 |
|
|
— |
|
|
— |
|
|
— |
|
San Sebastian - Sulfide (17) |
|
|
1,145 |
|
|
5.4 |
|
|
0.013 |
|
|
2.0 |
|
|
3.1 |
|
|
1.3 |
|
|
6,155 |
|
|
15 |
|
|
23,290 |
|
|
35,600 |
|
|
15,080 |
|
Fire Creek (18,19) |
|
|
186 |
|
|
0.9 |
|
|
0.380 |
|
|
— |
|
|
— |
|
|
— |
|
|
158 |
|
|
71 |
|
|
— |
|
|
— |
|
|
— |
|
Hollister (18,20) |
|
|
95 |
|
|
2.4 |
|
|
0.547 |
|
|
— |
|
|
— |
|
|
— |
|
|
227 |
|
|
52 |
|
|
— |
|
|
— |
|
|
— |
|
Midas (18,21) |
|
|
100 |
|
|
5.3 |
|
|
0.394 |
|
|
— |
|
|
— |
|
|
— |
|
|
536 |
|
|
40 |
|
|
— |
|
|
— |
|
|
— |
|
Heva (22) |
|
|
1,371 |
|
|
— |
|
|
0.043 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
59 |
|
|
— |
|
|
— |
|
|
— |
|
Hosco (22) |
|
|
33,584 |
|
|
— |
|
|
0.033 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
1,120 |
|
|
— |
|
|
— |
|
|
— |
|
Star (12,23) |
|
|
375 |
|
|
4.7 |
|
|
— |
|
|
9.9 |
|
|
10.5 |
|
|
— |
|
|
1,744 |
|
|
— |
|
|
37,110 |
|
|
39,330 |
|
|
— |
|
Rackla - Tiger Underground (29) |
|
|
960 |
|
|
— |
|
|
0.079 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
76 |
|
|
— |
|
|
— |
|
|
— |
|
Rackla - Tiger Open Pit (29) |
|
|
3,116 |
|
|
— |
|
|
0.100 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
311 |
|
|
— |
|
|
— |
|
|
— |
|
Rackla - Osiris Underground (30) |
|
|
927 |
|
|
— |
|
|
0.133 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
123 |
|
|
— |
|
|
— |
|
|
— |
|
Rackla - Osiris Open Pit (30) |
|
|
4,843 |
|
|
— |
|
|
0.119 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
577 |
|
|
— |
|
|
— |
|
|
— |
|
Total Indicated |
|
|
60,861 |
|
|
|
|
|
|
|
|
|
|
|
|
139,616 |
|
|
3,915 |
|
|
375,490 |
|
|
659,040 |
|
|
15,080 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
|
Tons (000) |
|
Silver (oz/ton) |
|
Gold (oz/ton) |
|
Lead % |
|
Zinc % |
|
Copper % |
|
Silver (000 oz) |
|
Gold (000 oz) |
|
Lead Tons |
|
Zinc Tons |
|
Copper Tons |
|
|||||||||||
Measured and Indicated Resources: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Greens Creek (12,13) |
|
|
5,844 |
|
|
15.2 |
|
|
0.11 |
|
|
3.4 |
|
|
8.9 |
|
|
— |
|
|
88,655 |
|
|
653 |
|
|
200,430 |
|
|
522,550 |
|
|
— |
|
Lucky Friday (12,14) |
|
|
3,425 |
|
|
11.8 |
|
|
— |
|
|
6.8 |
|
|
1.8 |
|
|
— |
|
|
40,541 |
|
|
— |
|
|
234,480 |
|
|
62,460 |
|
|
— |
|
Casa Berardi Underground (12,15) |
|
|
4,861 |
|
|
— |
|
|
0.176 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
855 |
|
|
— |
|
|
— |
|
|
— |
|
Casa Berardi Open Pit (12,15) |
|
|
4,014 |
|
|
— |
|
|
0.081 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
327 |
|
|
— |
|
|
— |
|
|
— |
|
Keno Hill (12,16) |
|
|
583 |
|
|
24.1 |
|
|
0.009 |
|
|
2.5 |
|
|
6.3 |
|
|
— |
|
|
14,039 |
|
|
5 |
|
|
14,460 |
|
|
36,710 |
|
|
— |
|
San Sebastian - Oxide (17) |
|
|
1,435 |
|
|
6.2 |
|
|
0.091 |
|
|
— |
|
|
— |
|
|
— |
|
|
8,889 |
|
|
130 |
|
|
— |
|
|
— |
|
|
— |
|
San Sebastian - Sulfide (17) |
|
|
1,145 |
|
|
5.4 |
|
|
0.013 |
|
|
2.0 |
|
|
3.1 |
|
|
1.3 |
|
|
6,155 |
|
|
15 |
|
|
23,290 |
|
|
35,600 |
|
|
15,080 |
|
Fire Creek (18,19) |
|
|
186 |
|
|
0.9 |
|
|
0.380 |
|
|
— |
|
|
— |
|
|
— |
|
|
158 |
|
|
71 |
|
|
— |
|
|
— |
|
|
— |
|
Hollister (18,20) |
|
|
95 |
|
|
2.4 |
|
|
0.547 |
|
|
— |
|
|
— |
|
|
— |
|
|
227 |
|
|
52 |
|
|
— |
|
|
— |
|
|
— |
|
Midas (18,21) |
|
|
100 |
|
|
5.3 |
|
|
0.394 |
|
|
— |
|
|
— |
|
|
— |
|
|
536 |
|
|
40 |
|
|
— |
|
|
— |
|
|
— |
|
Heva (22) |
|
|
1,371 |
|
|
— |
|
|
0.043 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
59 |
|
|
— |
|
|
— |
|
|
— |
|
Hosco (22) |
|
|
33,584 |
|
|
— |
|
|
0.033 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
1,120 |
|
|
— |
|
|
— |
|
|
— |
|
Star (12,23) |
|
|
375 |
|
|
4.7 |
|
|
— |
|
|
9.9 |
|
|
10.5 |
|
|
— |
|
|
1,744 |
|
|
— |
|
|
37,110 |
|
|
39,330 |
|
|
— |
|
Rackla - Tiger Underground (29) |
|
|
992 |
|
|
— |
|
|
0.079 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
78 |
|
|
— |
|
|
— |
|
|
— |
|
Rackla - Tiger Open Pit (29) |
|
|
3,997 |
|
|
— |
|
|
0.097 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
386 |
|
|
— |
|
|
— |
|
|
— |
|
Rackla - Osiris Underground (30) |
|
|
927 |
|
|
— |
|
|
0.133 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
123 |
|
|
— |
|
|
— |
|
|
— |
|
Rackla - Osiris Open Pit (30) |
|
|
4,843 |
|
|
— |
|
|
0.119 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
577 |
|
|
— |
|
|
— |
|
|
— |
|
40
Total Measured and Indicated |
|
|
67,777 |
|
|
|
|
|
|
|
|
|
|
|
|
160,944 |
|
|
4,491 |
|
|
509,770 |
|
|
696,650 |
|
|
15,080 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
|
Tons (000) |
|
Silver (oz/ton) |
|
Gold (oz/ton) |
|
Lead % |
|
Zinc % |
|
Copper % |
|
Silver (000 oz) |
|
Gold (000 oz) |
|
Lead Tons |
|
Zinc Tons |
|
Copper Tons |
|
|||||||||||
Inferred Resources: (11) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Greens Creek (12,13) |
|
|
1,431 |
|
|
16.3 |
|
|
0.107 |
|
|
3.2 |
|
|
8.0 |
|
|
— |
|
|
23,314 |
|
|
153 |
|
|
45,720 |
|
|
113,910 |
|
|
— |
|
Lucky Friday (12,14) |
|
|
2,238 |
|
|
11.6 |
|
|
— |
|
|
8.6 |
|
|
2.9 |
|
|
— |
|
|
26,033 |
|
|
— |
|
|
192,010 |
|
|
65,770 |
|
|
— |
|
Casa Berardi Underground (12,15) |
|
|
2,109 |
|
|
— |
|
|
0.205 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
432 |
|
|
— |
|
|
— |
|
|
— |
|
Casa Berardi Open Pit (12,15) |
|
|
647 |
|
|
— |
|
|
0.094 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
61 |
|
|
— |
|
|
— |
|
|
— |
|
Keno Hill (12,16) |
|
|
662 |
|
|
16.7 |
|
|
0.005 |
|
|
1.9 |
|
|
3.8 |
|
|
— |
|
|
11,044 |
|
|
4 |
|
|
12,450 |
|
|
25,350 |
|
|
— |
|
San Sebastian - Oxide (17) |
|
|
2,746 |
|
|
6.5 |
|
|
0.057 |
|
|
— |
|
|
— |
|
|
— |
|
|
17,829 |
|
|
156 |
|
|
— |
|
|
— |
|
|
— |
|
San Sebastian - Sulfide (17) |
|
|
312 |
|
|
4.3 |
|
|
0.013 |
|
|
1.8 |
|
|
2.6 |
|
|
1.0 |
|
|
1,354 |
|
|
4 |
|
|
5,490 |
|
|
8,130 |
|
|
2,990 |
|
Fire Creek (18,19) |
|
|
1,108 |
|
|
0.5 |
|
|
0.433 |
|
|
— |
|
|
— |
|
|
— |
|
|
501 |
|
|
479 |
|
|
— |
|
|
— |
|
|
— |
|
Fire Creek - Open Pit (24) |
|
|
74,584 |
|
|
0.1 |
|
|
0.029 |
|
|
— |
|
|
— |
|
|
— |
|
|
5,232 |
|
|
2,178 |
|
|
— |
|
|
— |
|
|
— |
|
Hollister (18,20) |
|
|
821 |
|
|
2.6 |
|
|
0.376 |
|
|
— |
|
|
— |
|
|
— |
|
|
2,145 |
|
|
309 |
|
|
— |
|
|
— |
|
|
— |
|
Midas (18,21) |
|
|
1,665 |
|
|
5.1 |
|
|
0.413 |
|
|
— |
|
|
— |
|
|
— |
|
|
8,466 |
|
|
687 |
|
|
— |
|
|
— |
|
|
— |
|
Heva (22) |
|
|
2,269 |
|
|
— |
|
|
0.070 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
159 |
|
|
— |
|
|
— |
|
|
— |
|
Hosco (22) |
|
|
17,228 |
|
|
— |
|
|
0.031 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
532 |
|
|
— |
|
|
— |
|
|
— |
|
Star (12,23) |
|
|
667 |
|
|
4.9 |
|
|
— |
|
|
9.4 |
|
|
9.2 |
|
|
— |
|
|
3,245 |
|
|
— |
|
|
62,810 |
|
|
61,440 |
|
|
— |
|
San Juan Silver (12,25) |
|
|
2,310 |
|
|
15.9 |
|
|
0.011 |
|
|
1.4 |
|
|
1.1 |
|
|
— |
|
|
36,760 |
|
|
26 |
|
|
49,270 |
|
|
40,310 |
|
|
— |
|
Monte Cristo (26) |
|
|
576 |
|
|
0.2 |
|
|
0.183 |
|
|
— |
|
|
— |
|
|
— |
|
|
135 |
|
|
106 |
|
|
— |
|
|
— |
|
|
— |
|
Rock Creek (12,27) |
|
|
99,258 |
|
|
1.5 |
|
|
— |
|
|
— |
|
|
— |
|
|
0.7 |
|
|
148,291 |
|
|
— |
|
|
— |
|
|
— |
|
|
656,060 |
|
Libby Exploration (12,28) |
|
|
112,185 |
|
|
1.6 |
|
|
— |
|
|
— |
|
|
— |
|
|
0.7 |
|
|
183,346 |
|
|
— |
|
|
— |
|
|
— |
|
|
759,420 |
|
Rackla - Tiger Underground (29) |
|
|
153 |
|
|
— |
|
|
0.069 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
11 |
|
|
— |
|
|
— |
|
|
— |
|
Rackla - Tiger Open Pit (29) |
|
|
30 |
|
|
— |
|
|
0.051 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
2 |
|
|
— |
|
|
— |
|
|
— |
|
Rackla - Osiris Underground (30) |
|
|
4,398 |
|
|
— |
|
|
0.117 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
515 |
|
|
— |
|
|
— |
|
|
— |
|
Rackla - Osiris Open Pit (30) |
|
|
5,919 |
|
|
— |
|
|
0.089 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
529 |
|
|
— |
|
|
— |
|
|
— |
|
Total Inferred |
|
|
333,316 |
|
|
|
|
|
|
|
|
|
|
|
|
467,695 |
|
|
6,343 |
|
|
367,750 |
|
|
314,910 |
|
|
1,418,470 |
|
|||||
41
Individual Properties
MATERIAL OPERATING PROPERTIES
Greens Creek
We own 100% of the Greens Creek mine, located on Admiralty Island near Juneau in southeast Alaska at 58° 4’57.00”N Latitude, 134°37’57.40”W Longitude (WGS84). Admiralty Island is accessed by boat, float plane, or helicopter. On the island, the mine site and various surface facilities are accessed by 13 miles of all-weather gravel roads. The Greens Creek mine has been in production since 1989, with a temporary care and maintenance period from April 1993 through July 1996. We report Greens Creek as a separate segment in our consolidated financial statements. See Note 4 of Notes to Consolidated Financial Statements and Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations - Results of Operations - Greens Creek for information on its financial performance.
42
Greens Creek is within the Admiralty Island National Monument, an environmentally sensitive area. The Greens Creek property includes 440 unpatented lode mining claims, 58 unpatented millsite claims, 21 patented lode claims and one patented millsite. In addition, the Greens Creek site includes properties under lease from the U.S. Forest Service ("USFS") for a road right-of-way, mine waste area and tailings storage facility. The USFS leases have varying expiration terms. Greens Creek also has title to mineral rights on 7,301 acres of federal land acquired through a land exchange with the USFS. We are currently exploring, but not mining, on such federal land. The claims and leases above comprise a total area of approximately 24 square miles.
The Greens Creek deposit is a volcanogenic massive sulfide deposit with a relatively high precious metal content compared to other deposits of its type. The host rock consists predominantly of marine sedimentary and mafic to ultramafic volcanic and plutonic rocks, which have been subjected to multiple periods of deformation. These deformational episodes imposed intense tectonic fabrics and folds within the rock. The deposits occur at the contact between Mississippian-age mafic meta-volcanic footwall and a hanging wall of Triassic-age argillite and basalt. Extensive hydrothermal alteration occurred within the meta-volcanic footwall prior to and during ore deposition, converting the basalts to sericite-rich, phyllitic schist. At ore deposition, thick and extensive lenses of base and precious metals, with pyrite and barite, formed at the footwall-hanging wall contact. Major sulfide minerals include pyrite, sphalerite, galena, and tetrahedrite/tennantite.
Greens Creek consists of the mine, an ore concentrating mill, a tailings storage area, a ship-loading facility, camp facilities, a ferry dock, and other related infrastructure. The map below illustrates the location and access to Greens Creek:
Greens Creek is an underground mine accessed by a ramp from surface which produces approximately 2,300 to 2,600 tons of ore per day. The primary mining methods are cut and fill and longhole stoping. The Greens Creek ore processing facility includes a SAG/ball mill grinding circuit to grind the run of mine ore to liberate the minerals and produce a slurry suitable for differential flotation of mineral concentrates. A gravity circuit recovers free gold that exists as electrum, a gold/silver alloy in the ore. Gravity concentrates are produced from this circuit prior to flotation. Three flotation concentrates are produced: a silver concentrate which contains most of the silver recovered; a zinc concentrate which is low in precious metals content; and a zinc-rich precious metals concentrate that contains gold, silver, zinc, and lead. Doré is produced from the gravity concentrate by a third-party processor and further refined and sold to precious metal traders. The concentrate products are sold to a number of smelters and traders worldwide. See Note 4 of Notes to Consolidated Financial Statements for information on the significant customers for Greens Creek’s products. Concentrates are shipped from the Hawk Inlet marine terminal about nine miles from the mill.
For more information, see Exhibit 96.1, the Technical Report Summary on the Greens Creek Mine, Alaska, U.S.A., prepared for the Company by the Qualified Person under Section 1300 of SEC Regulation S-K ("QP"), SLR International Corporation ("SLR") with an effective date of December 31, 2021.
43
The employees at Greens Creek are employees of Hecla Greens Creek Mining Company, our wholly-owned subsidiary, and are not represented by a bargaining agent. There were 546 employees at Greens Creek at December 31, 2025.
As of December 31, 2025, we have recorded a $51.6 million asset retirement obligation for reclamation and closure costs. We maintained a $92.2 million reclamation and long-term water treatment bond for Greens Creek as of December 31, 2025. The net book value of the Greens Creek property and its associated plant, equipment and mineral interests was approximately $517.5 million as of December 31, 2025. The vintage of the facilities at Greens Creek ranges from the 1980s to 2025.
The current mine plan at Greens Creek utilizes estimates of reserves and resources for approximately 11 years of production, through 2036.
Information with respect to Greens Creek's production, total cost of sales, average Cash Cost, After By-product Credits, Per Silver Ounce, All-In Sustaining Costs (“AISC”), After By-product Credits, Per Silver Ounce, and proven and probable mineral reserves for the past three years is set forth in the following table.
44
|
|
Years Ended December 31, |
|
|||||||||
Production |
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Ore milled (tons) |
|
|
871,659 |
|
|
|
895,318 |
|
|
|
914,796 |
|
Silver (ounces) |
|
|
8,724,996 |
|
|
|
8,480,877 |
|
|
|
9,731,752 |
|
Gold (ounces) |
|
|
59,349 |
|
|
|
55,275 |
|
|
|
60,896 |
|
Lead (tons) |
|
|
18,213 |
|
|
|
18,320 |
|
|
|
19,578 |
|
Zinc (tons) |
|
|
51,387 |
|
|
|
51,288 |
|
|
|
51,496 |
|
Copper (tons) |
|
|
1,804 |
|
|
|
1,874 |
|
|
|
1,823 |
|
|
|
|
|
|
|
|
|
|
|
|||
Total cost of sales |
|
$ |
290,180 |
|
|
$ |
268,127 |
|
|
$ |
259,895 |
|
Cash Cost, After By-product Credits, Per Silver Ounce (1) |
|
$ |
(8.02 |
) |
|
$ |
(0.05 |
) |
|
$ |
2.53 |
|
AISC, After By-Product Credits, per Silver Ounce (1) |
|
$ |
(2.36 |
) |
|
$ |
5.65 |
|
|
$ |
7.14 |
|
|
|
|
|
|
|
|
|
|
|
|||
Proven Mineral Reserves(2,3,4,5) |
|
|
|
|
|
|
|
|
|
|||
Total tons |
|
|
12,900 |
|
|
|
9,200 |
|
|
|
8,800 |
|
Silver (ounces per ton) |
|
|
23.9 |
|
|
|
7.6 |
|
|
|
11.3 |
|
Gold (ounces per ton) |
|
|
0.12 |
|
|
|
0.07 |
|
|
|
0.08 |
|
Zinc (percent) |
|
|
7.8 |
|
|
|
6.5 |
|
|
|
8.4 |
|
Lead (percent) |
|
|
3.0 |
|
|
|
2.4 |
|
|
|
3.5 |
|
Contained silver (ounces) |
|
|
308,900 |
|
|
|
69,800 |
|
|
|
99,500 |
|
Contained gold (ounces) |
|
|
1,500 |
|
|
|
700 |
|
|
|
700 |
|
Contained lead (tons) |
|
|
390 |
|
|
|
220 |
|
|
|
310 |
|
Contained zinc (tons) |
|
|
1,000 |
|
|
|
600 |
|
|
|
740 |
|
|
|
|
|
|
|
|
|
|
|
|||
Probable Mineral Reserves(2,3,4,5) |
|
|
|
|
|
|
|
|
|
|||
Total tons |
|
|
10,165,500 |
|
|
|
10,437,800 |
|
|
|
10,008,900 |
|
Silver (ounces per ton) |
|
|
10.4 |
|
|
|
9.9 |
|
|
|
10.5 |
|
Gold (ounces per ton) |
|
|
0.08 |
|
|
|
0.08 |
|
|
|
0.09 |
|
Zinc (percent) |
|
|
6.3 |
|
|
|
6.2 |
|
|
|
6.6 |
|
Lead (percent) |
|
|
2.3 |
|
|
|
2.3 |
|
|
|
2.5 |
|
Contained silver (ounces) |
|
|
105,788,100 |
|
|
|
103,640,900 |
|
|
|
105,121,700 |
|
Contained gold (ounces) |
|
|
840,800 |
|
|
|
864,300 |
|
|
|
879,700 |
|
Contained lead (tons) |
|
|
237,730 |
|
|
|
240,450 |
|
|
|
250,270 |
|
Contained zinc (tons) |
|
|
637,130 |
|
|
|
645,410 |
|
|
|
657,990 |
|
|
|
|
|
|
|
|
|
|
|
|||
Total Proven and Probable Mineral Reserves(2,3,4,5) |
|
|
|
|
|
|
|
|
|
|||
Total tons |
|
|
10,178,400 |
|
|
|
10,447,000 |
|
|
|
10,017,700 |
|
Silver (ounces per ton) |
|
|
10.4 |
|
|
|
9.9 |
|
|
|
10.5 |
|
Gold (ounces per ton) |
|
|
0.08 |
|
|
|
0.08 |
|
|
|
0.09 |
|
Zinc (percent) |
|
|
6.3 |
|
|
|
6.2 |
|
|
|
6.6 |
|
Lead (percent) |
|
|
2.3 |
|
|
|
2.3 |
|
|
|
2.5 |
|
Contained silver (ounces) |
|
|
106,097,000 |
|
|
|
103,710,700 |
|
|
|
105,221,200 |
|
Contained gold (ounces) |
|
|
842,300 |
|
|
|
865,000 |
|
|
|
880,400 |
|
Contained lead (tons) |
|
|
238,120 |
|
|
|
240,670 |
|
|
|
250,580 |
|
Contained zinc (tons) |
|
|
638,130 |
|
|
|
646,010 |
|
|
|
658,730 |
|
45
|
|
December 31, |
|
|||||||||
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Silver (per ounce) |
|
$ |
25.00 |
|
|
$ |
22.00 |
|
|
$ |
17.00 |
|
Gold (per ounce) |
|
$ |
2,100 |
|
|
$ |
1,900 |
|
|
$ |
1,600 |
|
Lead (per pound) |
|
$ |
0.90 |
|
|
$ |
0.90 |
|
|
$ |
0.90 |
|
Zinc (per pound) |
|
$ |
1.15 |
|
|
$ |
1.15 |
|
|
$ |
1.15 |
|
46
Information on in-situ mineral resources for Greens Creek excluding reserves for the past three years is set forth in the following table.
|
|
Years Ended December 31, |
|
|||||||||
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Measured Resources (1,2,3) |
|
|
|
|
|
|
|
|
|
|||
Total tons |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Silver (ounces per ton) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Gold (ounces per ton) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Zinc (percent) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Lead (percent) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Silver (ounces) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Gold (ounces) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Lead (tons) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Zinc (tons) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|||
Indicated Resources (1,2,3) |
|
|
|
|
|
|
|
|
|
|||
Total tons |
|
|
5,844,200 |
|
|
|
7,618,700 |
|
|
|
8,039,900 |
|
Silver (ounces per ton) |
|
|
15.2 |
|
|
|
14.1 |
|
|
|
13.9 |
|
Gold (ounces per ton) |
|
|
0.11 |
|
|
|
0.10 |
|
|
|
0.10 |
|
Zinc (percent) |
|
|
8.9 |
|
|
|
8.0 |
|
|
|
8.0 |
|
Lead (percent) |
|
|
3.4 |
|
|
|
3.0 |
|
|
|
3.0 |
|
Silver (ounces) |
|
|
88,654,700 |
|
|
|
107,226,000 |
|
|
|
111,526,000 |
|
Gold (ounces) |
|
|
653,000 |
|
|
|
760,000 |
|
|
|
800,000 |
|
Lead (tons) |
|
|
200,430 |
|
|
|
227,360 |
|
|
|
239,250 |
|
Zinc (tons) |
|
|
522,550 |
|
|
|
607,600 |
|
|
|
643,950 |
|
|
|
|
|
|
|
|
|
|
|
|||
Measured and Indicated Resources (1,2,3) |
|
|
|
|
|
|
|
|
|
|||
Total tons |
|
|
5,844,200 |
|
|
|
7,618,700 |
|
|
|
8,039,900 |
|
Silver (ounces per ton) |
|
|
15.2 |
|
|
|
14.1 |
|
|
|
13.9 |
|
Gold (ounces per ton) |
|
|
0.11 |
|
|
|
0.10 |
|
|
|
0.10 |
|
Zinc (percent) |
|
|
8.9 |
|
|
|
8.0 |
|
|
|
8.0 |
|
Lead (percent) |
|
|
3.4 |
|
|
|
3.0 |
|
|
|
3.0 |
|
Silver (ounces) |
|
|
88,654,700 |
|
|
|
107,226,000 |
|
|
|
111,526,000 |
|
Gold (ounces) |
|
|
653,000 |
|
|
|
760,000 |
|
|
|
800,000 |
|
Lead (tons) |
|
|
200,430 |
|
|
|
227,360 |
|
|
|
239,250 |
|
Zinc (tons) |
|
|
522,550 |
|
|
|
607,600 |
|
|
|
643,950 |
|
|
|
|
|
|
|
|
|
|
|
|||
Inferred Resources (1,2,3) |
|
|
|
|
|
|
|
|
|
|||
Total tons |
|
|
1,431,300 |
|
|
|
1,877,700 |
|
|
|
1,929,600 |
|
Silver (ounces per ton) |
|
|
16.3 |
|
|
|
13.4 |
|
|
|
13.4 |
|
Gold (ounces per ton) |
|
|
0.11 |
|
|
|
0.08 |
|
|
|
0.08 |
|
Zinc (percent) |
|
|
8.0 |
|
|
|
6.9 |
|
|
|
2.9 |
|
Lead (percent) |
|
|
3.2 |
|
|
|
2.9 |
|
|
|
6.9 |
|
Silver (ounces) |
|
|
23,314,000 |
|
|
|
25,106,100 |
|
|
|
25,891,000 |
|
Gold (ounces) |
|
|
153,400 |
|
|
|
151,400 |
|
|
|
154,000 |
|
Lead (tons) |
|
|
45,720 |
|
|
|
54,010 |
|
|
|
55,890 |
|
Zinc (tons) |
|
|
113,910 |
|
|
|
130,120 |
|
|
|
133,260 |
|
47
Lucky Friday
We have owned and operated the Lucky Friday mine since 1958, and have wholly owned it since 1964. Lucky Friday is a deep underground silver, lead and zinc mine located in the Coeur d’Alene Mining District in northern Idaho at 47°28'15.70”N Latitude, 115°47'0.44”W Longitude (WGS84). Lucky Friday is one-quarter mile east of Mullan, Idaho, and is adjacent to U.S. Interstate 90. We report Lucky Friday as a separate segment in our consolidated financial statements. See Note 4 of Notes to Consolidated Financial Statements and Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations - Results of Operations - Lucky Friday for information on its financial performance.
The Lucky Friday mine is comprised of 710 acres consisting of 43 patented mining claims and fee lands and 535 acres consisting of 53 unpatented mining claims. We also own or control approximately 26 square miles of mineral interests, which include patented mining and millsite claims, fee lands, and unpatented mining claims, that are adjacent to the Lucky Friday mine property. Below is a map illustrating the location and access to Lucky Friday:
The principal mineral-bearing structure at the Lucky Friday Mine through 1997 was the Lucky Friday Vein, a fissure vein typical of many in the Coeur d’Alene Mining District. The Revett Formation (quartzite) of late Precambrian age hosts the productive portion of the vein. The Lucky Friday Vein strikes northeast and dips nearly vertical with an average width of six to seven feet. Its principal ore minerals are galena and tetrahedrite with minor amounts of sphalerite and chalcopyrite. The ore occurs as a single, continuous ore zone in, and along the Lucky Friday Vein. In 1991, Hecla discovered several mineralized veins containing some high-grade silver ores in the Gold Hunter property, located about 5,000 feet northwest of the Lucky Friday Vein workings. Hecla finished a feasibility study in 1997 and achieved full production in 1998. The Gold Hunter veins are hosted in a 200-foot-thick siliceous lens within the Wallace Formation (quartzite, limestone, and argillite) that transitions to the St Regis Formation (quartzite and argillite) below the 5900-level. The veins are sub-parallel, and perhaps ‘en-echelon’ along strike and dip. The strike of the vein system is west-northwest with a dip of 85 degrees to the south. While the veins share many characteristics with the Lucky Friday Vein, there are some mineralogical and rock mechanics differences that currently make mining at Gold Hunter more attractive.
Access to the mining horizons from the surface is by shaft access. Once underground, trackless drifts and ramps are utilized to reach the mining areas. An internal, hoisting shaft was completed in 2017 to extend access at depth in the Gold Hunter area. The principal mining methods in use at Lucky Friday consist of underhand systems with integral paste fill and varying degrees of mechanization. In 2020, we tested and implemented the underhand closed bench ("UCB") mining method. The UCB method is a new and patented productive mining method developed by Hecla for proactive control of fault-slip seismicity in deep, high-stress, narrow-vein mining. The method uses bench drilling and blasting methods to fragment significant vertical and lateral extents of the vein beneath a top cut
48
taken along the strike of the vein and under engineered backfill. The method is accomplished without the use of drop raises or lower mucking drives which may result in local stress concentrations and increased exposure to seismic events. Large blasts using up to 45,000 lbs. of pumped emulsion and programmable electronic detonators fragment up to 500 feet of strike length to a depth of approximately 24 feet. These large blasts proactively induce fault-slip seismicity at the time of the blast and shortly after it. This blasted corridor is then mined underhand for two cuts. As these cuts are mined, little to no blasting is done to advance them. Dilution is controlled by supporting the hanging wall and footwall as the mining progresses through the blasted ore. The entire cycle repeats and stoping advances downdip, under fill, and in a destressed zone. The method allows for greater control of fault-slip seismic events significantly improving safety. In conjunction, a notable productivity increase has been achieved by reducing seismic delays and utilizing bulk mining activities. In 2025, 2024 and 2023, 88%, 86% and 87%, respectively of the tons mined were produced through the UCB method. The underhand cut and fill method was also utilized in 2025, 2024 and 2023. Under this method, once a cut is taken along the strike of the vein, it is backfilled with cemented tailings and the next cut is accessed below from the ramp system. Both methods utilize rubber-tired equipment to access the veins through ramps developed outside of the ore body.
Ore at Lucky Friday is processed using a conventional lead/zinc flotation flowsheet, and the plant capacity currently is estimated at 1,165 tons per day. During August 2023, the production at the mine was suspended due to a fire that occurred while repairing an unused station in the #2 ventilation shaft, which is also the secondary egress (required by MSHA regulations). By early September, the fire had been extinguished, normal ventilation was reestablished and the workforce recalled. Following evaluation of alternatives, it was determined that in order to safely bring the mine back into production in the most rapid and cost-effective way, a new secondary egress needed to be developed to bypass the damaged portion of the #2 shaft. The new egress involved extending an existing ramp 1,600 feet, installing a 290-foot-long manway raise, and developing an 850-foot ventilation raise. This work resulted in operations being suspended for the remainder of 2023, with the mine restarting production in January 2024, and ramping up to full production during the first quarter.
For more information, see Exhibit 96.2, the Technical Report Summary on the Lucky Friday Mine, Idaho, U.S.A., prepared for the Company by the QP, SLR, with an effective date of December 31, 2021.
At December 31, 2025, there were 444 employees at Lucky Friday. The United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial, and Service Workers International Union is the bargaining agent for Lucky Friday’s 325 hourly employees as of December 31, 2025. During January 2023, the bargaining agent ratified a six-year labor agreement that expires in May 2029. Following a strike that started in March 2017 and ended in January 2020, re-staffing of the mine and ramp-up activities were completed during 2020, with a return to full production starting in the fourth quarter of 2020.
As of December 31, 2025, we have recorded a $14.9 million asset retirement obligation for reclamation and closure costs. The net book value of the Lucky Friday property and its associated plant, equipment and mineral interests was approximately $585.8 million as of December 31, 2025. The vintage of the facilities at Lucky Friday ranges from the 1950s to 2025.
The current mine plan at Lucky Friday utilizes estimates of reserves and resources for approximately 17 years of production, through 2044.
49
Information with respect to the Lucky Friday’s production, total cost of sales, average Cash Cost, After By-product Credits, Per Silver Ounce, AISC, After By-product Credits, Per Silver Ounce, and proven and probable in -situ mineral reserves for the past three years is set forth in the table below.
|
|
Years Ended December 31, |
|
|||||||||
Production |
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Ore milled (tons) |
|
|
427,048 |
|
|
|
406,541 |
|
|
|
231,129 |
|
Silver (ounces) |
|
|
5,260,686 |
|
|
|
4,890,949 |
|
|
|
3,086,119 |
|
Lead (tons) |
|
|
34,284 |
|
|
|
31,265 |
|
|
|
19,543 |
|
Zinc (tons) |
|
|
14,924 |
|
|
|
13,513 |
|
|
|
7,944 |
|
|
|
|
|
|
|
|
|
|
|
|||
Total cost of sales |
|
$ |
173,690 |
|
|
$ |
144,485 |
|
|
$ |
84,185 |
|
Cash Cost, After By-product Credits, Per Silver Ounce (1) |
|
$ |
8.66 |
|
|
$ |
7.80 |
|
|
$ |
5.51 |
|
AISC, After By-product Credits, Per Silver Ounce (1) |
|
$ |
21.98 |
|
|
$ |
16.50 |
|
|
$ |
12.21 |
|
|
|
|
|
|
|
|
|
|
|
|||
Proven Mineral Reserves(2,3,4) |
|
|
|
|
|
|
|
|
|
|||
Total tons |
|
|
4,746,900 |
|
|
|
5,285,400 |
|
|
|
5,298,600 |
|
Silver (ounces per ton) |
|
|
11.9 |
|
|
|
11.9 |
|
|
|
12.8 |
|
Lead (percent) |
|
|
7.5 |
|
|
|
7.6 |
|
|
|
8.0 |
|
Zinc (percent) |
|
|
3.8 |
|
|
|
3.6 |
|
|
|
3.8 |
|
Contained silver (ounces) |
|
|
56,096,400 |
|
|
|
62,824,900 |
|
|
|
67,594,600 |
|
Contained lead (tons) |
|
|
355,370 |
|
|
|
400,400 |
|
|
|
424,080 |
|
Contained zinc (tons) |
|
|
181,180 |
|
|
|
189,860 |
|
|
|
201,280 |
|
|
|
|
|
|
|
|
|
|
|
|||
Probable Mineral Reserves(2,3,4) |
|
|
|
|
|
|
|
|
|
|||
Total tons |
|
|
1,635,500 |
|
|
|
789,900 |
|
|
|
965,500 |
|
Silver (ounces per ton) |
|
|
9.5 |
|
|
|
11.4 |
|
|
|
10.8 |
|
Lead (percent) |
|
|
6.0 |
|
|
|
7.6 |
|
|
|
7.1 |
|
Zinc (percent) |
|
|
3.7 |
|
|
|
3.1 |
|
|
|
2.9 |
|
Contained silver (ounces) |
|
|
15,492,800 |
|
|
|
9,011,300 |
|
|
|
10,410,500 |
|
Contained lead (tons) |
|
|
97,590 |
|
|
|
60,210 |
|
|
|
68,320 |
|
Contained zinc (tons) |
|
|
60,710 |
|
|
|
24,620 |
|
|
|
28,100 |
|
|
|
|
|
|
|
|
|
|
|
|||
Total Proven and Probable Mineral Reserves(2,3,4) |
|
|
|
|
|
|
|
|
|
|||
Total tons |
|
|
6,382,400 |
|
|
|
6,075,300 |
|
|
|
6,264,100 |
|
Silver (ounces per ton) |
|
|
11.2 |
|
|
|
11.8 |
|
|
|
12.5 |
|
Lead (percent) |
|
|
7.1 |
|
|
|
7.6 |
|
|
|
7.9 |
|
Zinc (percent) |
|
|
3.8 |
|
|
|
3.5 |
|
|
|
3.7 |
|
Contained silver (ounces) |
|
|
71,589,200 |
|
|
|
71,836,200 |
|
|
|
78,005,100 |
|
Contained lead (tons) |
|
|
452,960 |
|
|
|
460,610 |
|
|
|
492,400 |
|
Contained zinc (tons) |
|
|
241,890 |
|
|
|
214,480 |
|
|
|
229,380 |
|
50
|
|
December 31, |
|
|||||||||
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Silver (per ounce) |
|
$ |
25.00 |
|
|
$ |
22.00 |
|
|
$ |
17.00 |
|
Lead (per pound) |
|
$ |
0.90 |
|
|
$ |
0.90 |
|
|
$ |
0.90 |
|
Zinc (per pound) |
|
$ |
1.15 |
|
|
$ |
1.15 |
|
|
$ |
1.15 |
|
Information on in-situ mineral resources excluding mineral reserves for Lucky Friday for the past three years is set forth in the following table.
|
|
Years Ended December 31, |
|
|||||||||
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Measured Resources (1,2,3) |
|
|
|
|
|
|
|
|
|
|||
Total tons |
|
|
1,805,600 |
|
|
|
3,781,400 |
|
|
|
5,325,500 |
|
Silver (ounces per ton) |
|
|
11.8 |
|
|
|
8.7 |
|
|
|
8.6 |
|
Lead (percent) |
|
|
7.4 |
|
|
|
5.8 |
|
|
|
5.6 |
|
Zinc (percent) |
|
|
2.1 |
|
|
|
2.6 |
|
|
|
2.8 |
|
Silver (ounces) |
|
|
21,327,700 |
|
|
|
32,794,700 |
|
|
|
45,784,900 |
|
Lead (tons) |
|
|
134,280 |
|
|
|
217,490 |
|
|
|
299,360 |
|
Zinc (tons) |
|
|
37,610 |
|
|
|
99,840 |
|
|
|
146,420 |
|
|
|
|
|
|
|
|
|
|
|
|||
Indicated Resources (1,2,3) |
|
|
|
|
|
|
|
|
|
|||
Total tons |
|
|
1,618,900 |
|
|
|
845,200 |
|
|
|
1,011,000 |
|
Silver (ounces per ton) |
|
|
11.9 |
|
|
|
8.7 |
|
|
|
8.1 |
|
Lead (percent) |
|
|
6.2 |
|
|
|
6.6 |
|
|
|
6.0 |
|
Zinc (percent) |
|
|
1.5 |
|
|
|
2.3 |
|
|
|
2.7 |
|
Silver (ounces) |
|
|
19,213,200 |
|
|
|
7,350,000 |
|
|
|
8,135,700 |
|
Lead (tons) |
|
|
100,200 |
|
|
|
55,890 |
|
|
|
60,200 |
|
Zinc (tons) |
|
|
24,850 |
|
|
|
19,700 |
|
|
|
26,910 |
|
|
|
|
|
|
|
|
|
|
|
|||
Measured and Indicated Resources (1,2,3) |
|
|
|
|
|
|
|
|
|
|||
Total tons |
|
|
3,424,500 |
|
|
|
4,626,600 |
|
|
|
6,336,500 |
|
Silver (ounces per ton) |
|
|
11.8 |
|
|
|
8.7 |
|
|
|
8.5 |
|
Lead (percent) |
|
|
6.8 |
|
|
|
6.2 |
|
|
|
5.7 |
|
Zinc (percent) |
|
|
1.8 |
|
|
|
2.5 |
|
|
|
2.7 |
|
Silver (ounces) |
|
|
40,540,900 |
|
|
|
40,144,700 |
|
|
|
53,920,600 |
|
Lead (tons) |
|
|
234,480 |
|
|
|
273,380 |
|
|
|
359,560 |
|
Zinc (tons) |
|
|
62,460 |
|
|
|
119,540 |
|
|
|
173,330 |
|
|
|
|
|
|
|
|
|
|
|
|||
Inferred Resources (1,2,3) |
|
|
|
|
|
|
|
|
|
|||
Total tons |
|
|
2,237,700 |
|
|
|
3,811,400 |
|
|
|
3,600,000 |
|
Silver (ounces per ton) |
|
|
11.6 |
|
|
|
10.3 |
|
|
|
7.8 |
|
Lead (percent) |
|
|
8.6 |
|
|
|
7.7 |
|
|
|
5.9 |
|
Zinc (percent) |
|
|
2.9 |
|
|
|
3.2 |
|
|
|
2.8 |
|
Silver (ounces) |
|
|
26,033,300 |
|
|
|
39,183,200 |
|
|
|
27,933,900 |
|
Lead (tons) |
|
|
192,010 |
|
|
|
293,010 |
|
|
|
211,340 |
|
Zinc (tons) |
|
|
65,770 |
|
|
|
121,710 |
|
|
|
100,630 |
|
51
Keno Hill
The Keno Hill unit is located in the central Yukon Territory, Canada, and covers an area of approximately 15,000 hectares (37,000 acres) in central Yukon (63° 54' 32" N, 135° 19’ 18” W; NTS 105M/14 and 105M/13). The operations are located in the traditional territory of the First Nation of Na-Cho Nyäk Dun (FNNND). We report Keno as a separate segment in our consolidated financial statements. See Note 4 of Notes to Consolidated Financial Statements and Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations - Results of Operations - Keno Hill for information on its financial performance.
The total Hecla Keno Hill mineral claims as of December 31, 2025, covers an area of 238.12 square kilometers (92 square miles) and comprises 717 quartz mining leases, 867 quartz mining claims and two Crown Grants. Below is a map illustrating the location and access to Keno Hill:
The Keno Hill property is a polymetallic silver-lead-zinc vein district with characteristics similar to other well-known mining districts in the world. Examples of this type of mineralization include the Kokanee Range (Slocan), British Columbia; Coeur d’Alene, Idaho; Freiberg and the Harz Mountains, Germany; and Príbram, Czech Republic.
The local geology is dominated by the Mississippian Keno Hill Quartzite comprising the Basal Quartzite Member and conformably overlying Sourdough Hill Member. Silver predominantly occurs in argentiferous galena and argentiferous tetrahedrite (freibergite). In some assemblages, silver is also found as native silver, in polybasite, stephanite, and pyrargyrite. Lead occurs in galena and zinc in sphalerite. Other sulfides include pyrite, pyrrhotite, arsenopyrite, and chalcopyrite. In general, common gangue minerals include siderite and, to a lesser extent, quartz, and calcite.
Keno Hill ore is mined with a mechanized cut and fill method ("MCF"). Where the ore width is wider than can be safely extracted in one cut, the ore will be mined in adjacent drifts. Lenses are predominantly mined in a bottom-up sequence and filled with cemented
52
rock fill ("CRF") with a 3%-8% binder content. CRF is used to introduce temporary sill levels or to fill initial drifts when multiple adjacent drifts are required. Temporary sill levels form a sequence interrupting pillar which allows for multiple mining fronts to be active on one lens at a time. The remainder of the lifts will be backfilled with unconsolidated rock fill. This mining method was chosen due to the narrow steeply dipping nature of the mineral bodies and to maximize safety and productivity. The various deposits require the use of mining methods that can adequately support the vein and that are flexible and selective while minimizing the direct mining costs. In the MCF method, an attack ramp is developed from the main ramp at a gradient of -15%. Upon reaching the orebody, an intersection is developed, and a lift is developed in both directions along strike, following the geological contact of the orebody. At the end of the lens, the void is backfilled using a Load Haul Dump ("LHD") machine. The LHD utilizes a bulldozer-like plate to push waste tight to the back of the drift. Once the level has been completely backfilled, the next lift above the previously mined lift is accessed by slashing down the back of the attack ramp and working off the muck pile/horizon. MCF drift sizes are on average 3.5 meters high x 3.5 meters wide. For areas wider than development equipment, a second parallel drift will be mined beside the backfilled drift to fully extract the material prior to accessing the lift above. In this situation, the first drift will be completely backfilled with cemented rock fill to ensure a stable wall to allow adjacent mining activity. The lifts are generally sequenced from the bottom-up within each panel.
The Keno Hill mill is based on a conventional sequential flotation process producing silver and precious metal concentrates. The silver concentrates are high in lead which typically accounts for approximately 90% to 95% of the mill feed silver values since given that is strongly associated with lead minerals. Overall, silver represents 70% to 80% of the value of the ores in the district.
For more information, see Exhibit 96.4, the Technical Report Summary on the Keno Hill Operations, Yukon, Canada, prepared for the Company by Mining Plus Canada Ltd., with an effective date of December 31, 2023.
At December 31, 2025, there were 261 employees at Keno Hill.
As of December 31, 2025, we have recorded a $3.7 million asset retirement obligation for reclamation and closure costs. The net book value of the Keno Hill property and its associated plant, equipment and mineral interests was approximately $408.0 million as of December 31, 2025. The active infrastructure in place at Keno Hill ranges from the 1980s to 2025.
The current mine plan at Keno Hill utilizes estimates of reserves and resources for approximately 16 years of production, through 2040.
Information with respect to the Keno Hill’s production and proven and probable in -situ mineral reserves for the past three years is set forth in the table below. Information with respect to Keno Hill’s average Cash Cost, After By-product Credits, Per Silver Ounce, AISC, After By-product Credits, Per Silver Ounce were not reported as the mine has not reached commercial production. At the time
53
the mine reaches commercial production, these metrics will be reported, as until this time costs are allocated to total cost of sales to the extent there are sales.
|
|
Years Ended December 31, |
|
|||||||||
Production |
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Ore milled (tons) |
|
|
108,339 |
|
|
|
109,292 |
|
|
|
56,331 |
|
Silver (ounces) |
|
|
3,018,490 |
|
|
|
2,773,873 |
|
|
|
1,502,577 |
|
Lead (tons) |
|
|
3,633 |
|
|
|
2,930 |
|
|
|
1,225 |
|
Zinc (tons) |
|
|
2,247 |
|
|
|
1,507 |
|
|
|
1,139 |
|
|
|
|
|
|
|
|
|
|
|
|||
Proven Mineral Reserves(2,3,4) |
|
|
|
|
|
|
|
|
|
|||
Total tons |
|
|
9,100 |
|
|
|
12,900 |
|
|
|
— |
|
Silver (ounces per ton) |
|
|
23.5 |
|
|
|
28.1 |
|
|
|
— |
|
Gold (ounces per ton) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Lead (percent) |
|
|
2.4 |
|
|
|
3.0 |
|
|
|
— |
|
Zinc (percent) |
|
|
6.2 |
|
|
|
1.6 |
|
|
|
— |
|
Contained silver (ounces) |
|
|
235,100 |
|
|
|
364,200 |
|
|
|
— |
|
Contained gold (ounces) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Contained lead (tons) |
|
|
220 |
|
|
|
380 |
|
|
|
— |
|
Contained zinc (tons) |
|
|
600 |
|
|
|
200 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|||
Probable Mineral Reserves(2,3,4) |
|
|
|
|
|
|
|
|
|
|||
Total tons |
|
|
2,103,500 |
|
|
|
2,629,700 |
|
|
|
2,069,400 |
|
Silver (ounces per ton) |
|
|
25.3 |
|
|
|
24.3 |
|
|
|
26.6 |
|
Gold (ounces per ton) |
|
|
0.01 |
|
|
|
0.01 |
|
|
|
0.01 |
|
Lead (percent) |
|
|
2.9 |
|
|
|
2.4 |
|
|
|
2.8 |
|
Zinc (percent) |
|
|
2.9 |
|
|
|
2.4 |
|
|
|
2.5 |
|
Contained silver (ounces) |
|
|
53,171,700 |
|
|
|
63,913,700 |
|
|
|
55,068,000 |
|
Contained gold (ounces) |
|
|
15,600 |
|
|
|
17,000 |
|
|
|
13,400 |
|
Contained lead (tons) |
|
|
61,600 |
|
|
|
63,440 |
|
|
|
58,170 |
|
Contained zinc (tons) |
|
|
61,230 |
|
|
|
62,790 |
|
|
|
52,380 |
|
|
|
|
|
|
|
|
|
|
|
|||
Total Proven and Probable Mineral Reserves(2,3,4) |
|
|
|
|
|
|
|
|
|
|||
Total tons |
|
|
2,112,600 |
|
|
|
2,642,600 |
|
|
|
2,069,400 |
|
Silver (ounces per ton) |
|
|
25.3 |
|
|
|
24.3 |
|
|
|
26.6 |
|
Gold (ounces per ton) |
|
|
0.01 |
|
|
|
0.01 |
|
|
|
0.01 |
|
Lead (percent) |
|
|
2.9 |
|
|
|
2.4 |
|
|
|
2.8 |
|
Zinc (percent) |
|
|
2.9 |
|
|
|
2.4 |
|
|
|
2.5 |
|
Contained silver (ounces) |
|
|
53,406,800 |
|
|
|
64,277,900 |
|
|
|
55,068,000 |
|
Contained gold (ounces) |
|
|
15,600 |
|
|
|
17,000 |
|
|
|
13,400 |
|
Contained lead (tons) |
|
|
61,820 |
|
|
|
63,820 |
|
|
|
58,170 |
|
Contained zinc (tons) |
|
|
61,830 |
|
|
|
62,990 |
|
|
|
52,380 |
|
|
|
December 31, |
|
|||||||||
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Silver (per ounce) |
|
$ |
25.00 |
|
|
$ |
22.00 |
|
|
$ |
17.00 |
|
Lead (per pound) |
|
$ |
0.90 |
|
|
$ |
0.90 |
|
|
$ |
0.90 |
|
Zinc (per pound) |
|
$ |
1.15 |
|
|
$ |
1.15 |
|
|
$ |
1.15 |
|
54
Information on in-situ mineral resources excluding mineral reserves for Keno Hill for the past three years is set forth in the following table.
|
|
Years Ended December 31, |
|
|||||||||
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Measured Resources (1,2,3) |
|
|
|
|
|
|
|
|
|
|||
Total tons |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Silver (ounces per ton) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Gold (ounces per ton) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Lead (percent) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Zinc (percent) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Silver (ounces) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Gold (ounces) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Lead (tons) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Zinc (tons) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|||
Indicated Resources (1,2,3) |
|
|
|
|
|
|
|
|
|
|||
Total tons |
|
|
582,800 |
|
|
|
1,050,300 |
|
|
|
4,504,200 |
|
Silver (ounces per ton) |
|
|
24.1 |
|
|
|
13.7 |
|
|
|
7.5 |
|
Gold (ounces per ton) |
|
|
0.01 |
|
|
|
0.01 |
|
|
|
0.01 |
|
Lead (percent) |
|
|
2.5 |
|
|
|
1.1 |
|
|
|
0.9 |
|
Zinc (percent) |
|
|
6.3 |
|
|
|
2.1 |
|
|
|
3.5 |
|
Silver (ounces) |
|
|
14,039,200 |
|
|
|
14,430,700 |
|
|
|
33,926,400 |
|
Gold (ounces) |
|
|
5,200 |
|
|
|
12,200 |
|
|
|
26,200 |
|
Lead (tons) |
|
|
14,460 |
|
|
|
11,610 |
|
|
|
41,120 |
|
Zinc (tons) |
|
|
36,710 |
|
|
|
22,460 |
|
|
|
157,350 |
|
|
|
|
|
|
|
|
|
|
|
|||
Measured and Indicated Resources (1,2,3) |
|
|
|
|
|
|
|
|
|
|||
Total tons |
|
|
582,800 |
|
|
|
1,050,300 |
|
|
|
4,504,200 |
|
Silver (ounces per ton) |
|
|
24.1 |
|
|
|
13.7 |
|
|
|
7.5 |
|
Gold (ounces per ton) |
|
|
0.01 |
|
|
|
0.01 |
|
|
|
0.01 |
|
Lead (percent) |
|
|
2.5 |
|
|
|
1.1 |
|
|
|
0.9 |
|
Zinc (percent) |
|
|
6.3 |
|
|
|
2.1 |
|
|
|
3.5 |
|
Silver (ounces) |
|
|
14,039,200 |
|
|
|
14,430,700 |
|
|
|
33,926,400 |
|
Gold (ounces) |
|
|
5,200 |
|
|
|
12,200 |
|
|
|
26,200 |
|
Lead (tons) |
|
|
14,460 |
|
|
|
11,610 |
|
|
|
41,120 |
|
Zinc (tons) |
|
|
36,710 |
|
|
|
22,460 |
|
|
|
157,350 |
|
|
|
|
|
|
|
|
|
|
|
|||
Inferred Resources (1,2,3) |
|
|
|
|
|
|
|
|
|
|||
Total tons |
|
|
661,800 |
|
|
|
1,299,600 |
|
|
|
2,835,900 |
|
Silver (ounces per ton) |
|
|
16.7 |
|
|
|
14.8 |
|
|
|
11.2 |
|
Gold (ounces per ton) |
|
|
0.01 |
|
|
|
0.00 |
|
|
|
0.00 |
|
Lead (percent) |
|
|
1.9 |
|
|
|
1.3 |
|
|
|
1.1 |
|
Zinc (percent) |
|
|
3.8 |
|
|
|
2.7 |
|
|
|
1.8 |
|
Silver (ounces) |
|
|
11,043,600 |
|
|
|
19,269,800 |
|
|
|
31,790,500 |
|
Gold (ounces) |
|
|
3,500 |
|
|
|
6,100 |
|
|
|
8,600 |
|
Lead (tons) |
|
|
12,450 |
|
|
|
16,450 |
|
|
|
32,040 |
|
Zinc (tons) |
|
|
25,350 |
|
|
|
34,940 |
|
|
|
51,870 |
|
55
Casa Berardi
We have wholly owned and operated Casa Berardi since June 2013. Casa Berardi is located 95 kilometers (59 miles) north of La Sarre in the Abitibi Region of northwestern Quebec, Canada at 49°34'0.72”N Latitude, 79°15'56.05”W Longitude (WGS84). The property borders Ontario to the west and covers parts of Casa Berardi, Dieppe, Raymond, D'Estrees, and Puiseaux townships. We report Casa Berardi as a separate segment in our consolidated financial statements. See Note 4 of Notes to Consolidated Financial Statements and Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations - Results of Operations - Casa Berardi for information on its financial performance. On January 26, 2026, following a review of how Casa Berardi fits into our future strategy, we announced that we agreed to sell our subsidiary that owns the Casa Berardi operation to Orezone. The transaction is expected to close in the first quarter of 2026, subject to the satisfaction of customary closing conditions. There can be no assurance that the transaction will be completed on the expected timeline or at all, or that we will receive the full anticipated consideration. For additional information regarding the pending transaction, see Item 7. Management’s Discussion and Analysis of Consolidated Financial Condition and Results of Operations, as well as the Consolidated Financial Statements and Notes thereto.
The Casa Berardi Property is in the northern part of the Abitibi Sub province, a subdivision of the Superior Province, the Archean core of the Canadian Shield. The regional geology is characterized by a mixed assemblage of mafic volcanic rocks, flysch-type sedimentary rocks, iron formation, and graphitic mudstone that are limited by a large granodioritic to granitic batholith. Structurally, the property is enclosed in the Casa Berardi Tectonic Zone, a 15 km wide corridor that can be traced over 200 km. Mineralized zones are closely associated with the Casa Berardi Fault and are found on both sides of the fault and are currently restricted to a 500 m wide corridor. Gold mineralization is primarily located in quartz veining in the form of veins of 1 m to multi-meter widths, small-scale veins, or veinlet networks/stockworks. Veins contain only minor sulfides (1% to 3%); sulfides include arsenopyrite, pyrite, and traces of sphalerite, chalcopyrite, pyrrhotite, tetrahedrite, galena, and gold. Arsenopyrite is the main gold-bearing sulfide present in all veins of the deposit
The mine and mill complex are permitted to process 1,600,000 dry metric tonnes (approximately 1,764,000 tons) of ore per year (4,900 tons per day). The mining operations consist of underground and open pit mines. The surface infrastructures include a cyanidation processing mill (carbon-in-leach), tailings impoundment areas, and other support facilities and infrastructure. The map below illustrates the location and access to Casa Berardi:
56
Current reserves at the Casa Berardi mine comprise eight zones at the West Mine, spread over a moderate horizontal distance from each other and located at different mine elevations.
The ore at Casa Berardi is extracted using a combination of underground and open pit mining methods. The mill utilizes a combination of gravity recovery for coarse gold and cyanidation for fine gold. The ore is crushed and ground to produce a slurry suitable for the subsequent recovery processes. Crushing and grinding is accomplished by a jaw crusher followed by a SAG mill and ball mill. Coarse gold reports to the gravity circuit consisting of Knelson concentrators followed by high intensity leaching and electrowinning. Fine gold reports to the cyanide leach train. Due to the presence of naturally occurring organic carbon in the ore, the Carbon-In-Leach (“CIL”) approach is used in a cyanidation circuit. Gold is adsorbed onto carbon in the leach train and later desorbed for electrowinning. Sludge from the electrowinning cells is melted in a furnace to produce doré, the final product produced at Casa Berardi. In 2025, the mill processed 1,533,800 tons, for an average of 4,202 tons per day.
For more information, see Exhibit 96.3, the Technical Report Summary on the Casa Berardi Mine, Northwestern Québec, Canada, prepared for the Company by the QP, RESPEC, with an effective date of December 31, 2023.
The employees at Casa Berardi are employees of Hecla Quebec Inc., our wholly-owned subsidiary, and are not represented by a bargaining agent. There were 476 employees at Casa Berardi at December 31, 2025. We also utilize third-party contractors, which use their employees and equipment, for some of the mining activities at Casa Berardi.
The current mine plan at Casa Berardi utilizes estimates of reserves and resources for approximately 12 years of active production by underground and open pit methods of mining.
The net book value of the Casa Berardi property and its associated plant, equipment and mineral interests was approximately $710.2 million as of December 31, 2025. As of December 31, 2025, we have recorded a $76.0 million asset retirement obligation for reclamation and closure costs at Casa Berardi. We maintain a surety bond as financial guarantee for future reclamation and closure work.
Information with respect to the Casa Berardi’s production, total cost of sales, average Cash Cost, After By-product Credits, Per Gold Ounce, AISC, After By-product Credits, Per Gold Ounce, and proven and probable in-situ mineral reserves for the past three years is set forth in the table below.
57
|
|
Year Ended December 31, |
|
|||||||||
Production |
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Ore milled (tons) |
|
|
1,533,800 |
|
|
|
1,523,420 |
|
|
|
1,446,488 |
|
Gold (ounces) |
|
|
91,160 |
|
|
|
86,648 |
|
|
|
90,363 |
|
Silver (ounces) |
|
|
22,613 |
|
|
|
24,231 |
|
|
|
22,415 |
|
|
|
|
|
|
|
|
|
|
|
|||
Total cost of sales |
|
$ |
206,720 |
|
|
$ |
223,614 |
|
|
$ |
221,341 |
|
Cash Cost, After By-product Credits, Per Gold Ounce (1) |
|
$ |
1,851 |
|
|
$ |
1,762 |
|
|
$ |
1,652 |
|
AISC, After By-product Credits, Per Gold Ounce (1) |
|
$ |
2,029 |
|
|
$ |
1,990 |
|
|
$ |
2,048 |
|
|
|
|
|
|
|
|
|
|
|
|||
Proven Mineral Reserves(2,3,4) |
|
|
|
|
|
|
|
|
|
|||
Total tons |
|
|
6,142,500 |
|
|
|
5,045,500 |
|
|
|
4,294,900 |
|
Gold (ounces per ton) |
|
|
0.08 |
|
|
|
0.08 |
|
|
|
0.09 |
|
Contained gold (ounces) |
|
|
462,700 |
|
|
|
428,400 |
|
|
|
386,100 |
|
|
|
|
|
|
|
|
|
|
|
|||
Probable Mineral Reserves(2,3,4) |
|
|
|
|
|
|
|
|
|
|||
Total tons |
|
|
7,935,000 |
|
|
|
10,848,400 |
|
|
|
11,559,400 |
|
Gold (ounces per ton) |
|
|
0.09 |
|
|
|
0.08 |
|
|
|
0.08 |
|
Contained gold (ounces) |
|
|
694,800 |
|
|
|
863,400 |
|
|
|
884,400 |
|
|
|
|
|
|
|
|
|
|
|
|||
Total Proven and Probable Mineral Reserves(2,3,4) |
|
|
|
|
|
|
|
|
|
|||
Total tons |
|
|
14,077,500 |
|
|
|
15,893,900 |
|
|
|
15,854,300 |
|
Gold (ounces per ton) |
|
|
0.08 |
|
|
|
0.08 |
|
|
|
0.08 |
|
Contained gold (ounces) |
|
|
1,157,500 |
|
|
|
1,291,800 |
|
|
|
1,270,500 |
|
58
Information on in-situ mineral resources excluding minerals reserves for Casa Berardi for the past three years is set forth in the following table.
|
|
Years Ended December 31, |
|
|||||||||
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Measured Resources (1,2,3) |
|
|
|
|
|
|
|
|
|
|||
Total tons |
|
|
4,196,700 |
|
|
|
1,570,000 |
|
|
|
1,166,300 |
|
Gold (ounces per ton) |
|
|
0.12 |
|
|
|
0.19 |
|
|
|
0.20 |
|
Gold (ounces) |
|
|
498,800 |
|
|
|
302,900 |
|
|
|
235,900 |
|
|
|
|
|
|
|
|
|
|
|
|||
Indicated Resources (1,2,3) |
|
|
|
|
|
|
|
|
|
|||
Total tons |
|
|
4,678,300 |
|
|
|
3,647,700 |
|
|
|
3,359,400 |
|
Gold (ounces per ton) |
|
|
0.15 |
|
|
|
0.16 |
|
|
|
0.18 |
|
Gold (ounces) |
|
|
683,000 |
|
|
|
598,200 |
|
|
|
607,400 |
|
|
|
|
|
|
|
|
|
|
|
|||
Measured and Indicated Resources (1,2,3) |
|
|
|
|
|
|
|
|
|
|||
Total tons |
|
|
8,875,000 |
|
|
|
5,217,700 |
|
|
|
4,525,700 |
|
Gold (ounces per ton) |
|
|
0.13 |
|
|
|
0.17 |
|
|
|
0.19 |
|
Gold (ounces) |
|
|
1,181,800 |
|
|
|
901,100 |
|
|
|
843,300 |
|
|
|
|
|
|
|
|
|
|
|
|||
Inferred Resources (1,2,3) |
|
|
|
|
|
|
|
|
|
|||
Total tons |
|
|
2,755,800 |
|
|
|
2,652,600 |
|
|
|
2,302,700 |
|
Gold (ounces per ton) |
|
|
0.18 |
|
|
|
0.18 |
|
|
|
0.17 |
|
Gold (ounces) |
|
|
492,800 |
|
|
|
465,100 |
|
|
|
395,600 |
|
59
Internal Controls on Exploration and Development Drilling Programs
Exploration and development drilling programs are performed using Industry Standard quality control methods for drilling, sampling, and analytical procedures. Standard operating procedure manuals for geology logging, sampling, and assaying are kept at the operations and updated as required. A secure sample chain-of-custody is established to promote the security of samples during transport from the projects to the analytical facilities. All primary analytical laboratories are ISO 9001 certified and sample preparation and analytical procedures are Industry Standard methods for the metals of interest.
Sample batches sent for analysis are controlled by a system of reference samples of known grade inserted into the sample stream and other control samples. Coarse and fine ‘blank,’ sterile, sample materials are used to monitor contamination at the sample preparation and analytical stages; Standard Reference Materials (“SRM”) of known grades are used to measure accuracy of the analytical results; and pulp duplicate samples and coarse reject duplicate samples are used to monitor precision of the analytical results. Blanks and SRM are inserted according to the analytical batch size and overall number of samples but normally result in a 1:10 to 1:20 insertion rate. Duplicate samples are inserted or requested using a similar 1:10 to 1:20 inclusion rate. As a final measure of assay quality, 5% to 10% of the original samples are sent to a second analytical laboratory for check analysis. Periodically, the Company retains experts to perform audits of the commercial laboratories used in the United States, Mexico and Canada.
The main operating properties store data in SQL-based relational database utilities with built-in logic checks that are implemented as new data is imported. Accurate data entry into the database is confirmed by verification upon data entry/import and again before use in final geology interpretation and resource modeling with checks of new data collected during yearly drilling programs.
Geology and mineral control interpretations, grade estimation parameters, grade and density models, reserve estimation parameters, and modifying factors are peer reviewed within the company. Resource grade models are validated using Industry Standard methods and appropriate documentation and reporting are completed to summarize methods and results. All resource and reserve tabulations at the operations are approved by the local management, with their own sets of controls, and then are compiled by the corporate office which also performs its own set of checks on the final numbers.
All personnel responsible for the management of mineral resource and mineral reserve modeling and approval and reporting of mineral resource and mineral reserve statements are QPs with relevant experience in the type of mineralization and deposit under consideration and in the specific type of activity undertaken for the company. All are eligible members or licensees in good standing of a recognized professional organization based on their academic qualifications and experience and comply with professional standards of competence and ethics. We encourage continuing professional development and training for current QPs as well as others in the Company to develop other QPs within the various departments.
As projects advance toward development and production, data density and the geological understanding of the mineral deposit increases. The Company’s internal controls limit some risk in the resource estimation process, but there is inherent risk in resource modeling due to mineral deposit heterogeneity, sample size and distribution, mining style and mining factor assumptions, and mineral processing issues. Independent audits of reserve models from an outside specialist are arranged on a periodic basis for an operating property. The senior technical staff can also determine when changes in mineral resource and reserve models or negative mine reconciliations are material and recommend internal or external auditing of the models and modifying factors.
Item 3. Legal Proceedings
For a discussion of our legal proceedings, see Note 16 of Notes to Consolidated Financial Statements.
Item 4. Mine Safety Disclosures
The information concerning mine safety violations or other regulatory matters required by Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Item 104 of SEC Regulation S-K is included in exhibit 95 to this report.
60
PART II
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
Shares of our common stock are traded on the New York Stock Exchange, Inc. under the symbol “HL.” As of February 12, 2026, there were 2,567 stockholders of record of our common stock.
The following table provides information as of December 31, 2025 regarding our compensation plans under which equity securities are authorized for issuance:
|
|
Number of |
|
|
Weighted-Average |
|
Number of |
|
||
Equity Compensation Plans Approved by Security Holders: |
|
|
|
|
|
|
|
|
||
2010 Stock Incentive Plan |
|
|
— |
|
|
N/A |
|
|
7,435,880 |
|
Stock Plan for Non-Employee Directors |
|
|
— |
|
|
N/A |
|
|
1,874,764 |
|
Key Employee Deferred Compensation Plan |
|
|
— |
|
|
N/A |
|
|
1,665,037 |
|
Total |
|
|
— |
|
|
N/A |
|
|
10,975,681 |
|
See Note 12 of Notes to Consolidated Financial Statements for information regarding the above plans.
During the year ended December 31, 2023, we issued shares of our common stock on multiple occasions to three of our employee benefit plans in order to fund our obligations under those plans. Each issuance was made pursuant to an exemption from registration under the Securities Act pursuant to Section 4(a)(2) of that Act and was followed by the filing of a shelf registration statement on SEC Form S-3 allowing for the public resales of those shares. We did not receive any cash proceeds from any of the above issuances of shares of common stock and nor will we from any resales. The issuances were as follows:
Date |
|
Purchaser |
|
Number of Shares |
|
|
Value of Shares at Issuance ($) |
|
October 16, 2023 |
|
Hecla Mining Company Pre-2005 Supplemental Excess Retirement Plan and the Hecla Mining Company Post-2004 Supplemental Excess Retirement Plan ("SERP") |
|
|
200,000 |
|
|
$0.8 million |
|
|
Hecla Mining Company Retirement Plan Trust (“Hecla Plan”) |
|
|
45,000 |
|
|
$0.2 million |
|
|
Lucky Friday Pension Plan Trust (“Lucky Friday Plan”) |
|
|
4,500 |
|
|
$0.0 million |
61
The following performance graph compares the performance of our common stock during the period beginning December 31, 2020 and ending December 31, 2025 to the S&P 500 and the Philadelphia Gold and Silver Index. The graph assumes a $100 investment in our common stock and in each of the indexes at the beginning of the period, and a reinvestment of dividends paid on such investments on a quarterly basis throughout the period.
Comparison of 5 Year Cumulative Total Return
Among Hecla Mining Company, the S&P 500, and the Philadelphia Gold and Silver Index
Date |
|
Hecla Mining |
|
|
S&P 500 |
|
|
Philadelphia Gold |
|
|||
December 2020 |
|
$ |
100.00 |
|
|
$ |
100.00 |
|
|
$ |
100.00 |
|
December 2021 |
|
|
81.04 |
|
|
|
126.92 |
|
|
|
91.86 |
|
December 2022 |
|
|
86.67 |
|
|
|
102.36 |
|
|
|
85.03 |
|
December 2023 |
|
|
75.36 |
|
|
|
126.05 |
|
|
|
87.17 |
|
December 2024 |
|
|
77.56 |
|
|
|
156.81 |
|
|
|
95.14 |
|
December 2025 |
|
|
303.38 |
|
|
|
181.84 |
|
|
|
237.38 |
|
The stock performance information above is “furnished” and shall not be deemed to be “soliciting material” or subject to Rule 14A of the Exchange Act, shall not be deemed “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that section, and shall not be deemed incorporated by reference in any filing under the Securities Act or the Exchange Act, whether made before or after the date of this report and irrespective of any general incorporation by reference language in any such filing, except to the extent that it specifically incorporates the information by reference.
On May 8, 2012, we announced that our Board of Directors approved a stock repurchase program. Under the program, we are authorized to repurchase up to 20 million shares of our outstanding common stock from time to time in open market or privately negotiated transactions. See Note 12 of Notes to Consolidated Financial Statements for more information. We made no purchases of our outstanding common stock during the year ended December 31, 2025.
Item 6. Reserved
Not applicable
62
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations
The following Management’s Discussion and Analysis (“MD&A”) provides information that management believes is relevant to an assessment and understanding of the consolidated financial condition and results of operations of Hecla Mining Company and its subsidiaries (collectively the “Company,” “our,” or “we”). We use certain non-GAAP financial performance measures in our MD&A. For a detailed description of these measures, please see “Non-GAAP Financial Performance Measures” at the end of this item. This item should be read in conjunction with our Consolidated Financial Statements and the notes thereto included in this annual report.
Overview
Hecla Mining Company stands as the premier silver producer, with a rich heritage dating back to 1891. Our operations at Greens Creek, Lucky Friday and Keno Hill combined to produce 37% of 2024 silver production in the U.S. and Canada, complemented by significant gold production from Casa Berardi and Greens Creek. We began ramp-up of the Keno Hill mill during the second quarter of 2023. Our strategic positioning in the stable jurisdictions of U.S. and Canada provides us with distinct operational advantages and reduced political risk compared to our global peers. Our operational and strategic framework centers on four core pillars:
Recent Developments
On January 26, 2026, we announced the sale of our Hecla Quebec Inc. subsidiary which owns the Casa Berardi segment to Orezone for up to $593 million in total consideration. The transaction is expected to close in the first quarter of 2026, subject to the satisfaction of customary closing conditions. There can be no assurance that the transaction will be completed on the expected timeline or at all, or that we will receive the full anticipated consideration. Details of the consideration to be received are as follows:
The sale of Casa Berardi represents a disciplined portfolio optimization and focuses capital allocation on our differentiated silver assets, which we believe to represent significant growth and value creation opportunities. Upon closing, we will further solidify our position as a leading silver multi-asset mining company with what we believe to be the best revenue exposure to silver amongst our immediate peers and focused on operating in what we view to be the most favorable jurisdictions. We anticipate using the cash proceeds from the transaction for debt reduction and balance sheet strengthening, enhancing our financial flexibility and capacity to invest in strategic growth investments, positioning us to maximize value from our world-class silver portfolio. We are confident in Orezone's operational expertise and believe they are well-positioned to create additional value from Casa Berardi.
2025 Highlights
Operational Achievements:
63
Financial Performance:
Our average realized prices for silver, gold and zinc increased in both 2025 and 2024 compared to 2024 and 2023 respectively. See the Consolidated Results of Operations section below for information on our average realized metals prices for 2025, 2024 and 2023. Lead and zinc represent important by-products at all our silver operations, and gold is also a significant by-product at Greens Creek. Copper is a minor by-product credit at Greens Creek.
See the Consolidated Results of Operations section below for a discussion of the factors impacting income applicable to common stockholders for the three years ended December 31, 2025, 2024 and 2023.
Key Issues Impacting our Business
Our current business strategy is to focus our financial and human resources in the following areas:
64
We strive to achieve excellent safety and health performance everywhere we work. We seek to implement this goal by: training employees in safe work practices; establishing, following and improving safety standards; investigating accidents, incidents and losses to avoid recurrence; involving employees in the establishment of safety standards; and participating in the National Mining Association’s CORESafety program. We strive for continuous improvement in mine safety and emergency preparedness by staying current with industry best practices, while implementing measures that are appropriate for our operations and the risks we face. We respond to issues outlined in investigations and inspections by MSHA, the Commission of Labor Standards, Pay Equity and Occupational Health and Safety in Quebec, the Workers' Safety and Compensation Board in the Yukon and the Mexico Ministry of Economy and Mining and continue to evaluate our safety practices. There can be no assurance that our practices will mitigate or eliminate all safety risks. Achieving and maintaining compliance with regulations will be challenging and may increase our operating costs. See Item 1A. Risk Factors - We face substantial governmental regulation, including in the United States the Mine Safety and Health Act, various environmental laws and regulations and the 1872 Mining Law.
A number of key factors may impact the execution of our strategy, including regulatory issues, metals prices and inflationary pressures on input costs. Metals prices can be very volatile and are influenced by a number of factors beyond our control (except on a limited basis through the use of derivative contracts). See Item 7. Critical Accounting Estimates and Note 10 of Notes to Consolidated Financial Statements. While we believe longer-term global economic and industrial trends could result in continued demand for the metals we produce, prices have been volatile and there can be no assurance that current prices will continue.
Volatility in global financial markets and other factors can pose a significant challenge to our ability to access credit and equity markets, should we need to do so. We utilize forward contracts and options to manage exposure to declines in the prices of (i) silver, gold, zinc and lead contained in our concentrates that have been shipped but have not yet settled, and (ii) from time to time silver, zinc and lead that we forecast for future concentrate shipments. In addition, we have in place a $225.0 million revolving credit agreement. As of December 31, 2025, no amount was drawn on the facility, with $6.7 million being used for letters of credit, no amount was drawn on the facility, leaving approximately $218.3 million available for borrowing.
Another challenge for us is the risk associated with environmental litigation and ongoing reclamation activities. As described in Item 1A. Risk Factors and in Note 16 of Notes to Consolidated Financial Statements, it is possible that our estimate of these liabilities may change in the future, affecting our strategic plans. We are involved in various environmental legal matters and the estimate of our environmental liabilities and liquidity needs, as well as our strategic plans, may be significantly impacted as a result of these matters or new matters that may arise. We strive to ensure that our activities are conducted in compliance with applicable laws and regulations and attempt to resolve environmental litigation on terms as favorable to us as possible.
Reserve and resource estimation is a major risk inherent in mining. Our reserve and resource estimates, which underlie (i) our mining and investment plans, (ii) the valuation of a significant portion of our long-term assets and (iii) depreciation, depletion and amortization expense, may change based on economic factors and actual production experience. Until ore is mined and processed, the volumes and grades of our reserves and resources must be considered as estimates. Our reserves are depleted as we mine. Reserves and resources can also change as a result of changes in economic and operating assumptions. See Item 1A. Risk Factors - Our mineral reserve and resource estimates may be imprecise.
65
Consolidated Results of Operations
Total metal sales for the years ended December 31, 2025, 2024 and 2023, and the approximate variances attributed to differences in metals prices, sales volumes and smelter terms, were as follows:
(in thousands) |
|
Silver |
|
Gold |
|
Base metals |
|
Less: smelter and refining charges |
|
Total sales of products |
2023 |
|
$302,284 |
|
$274,611 |
|
$188,958 |
|
$(50,909) |
|
$714,944 |
Variances - 2024 versus 2023: |
|
|
|
|
|
|
|
|
|
|
Price |
|
76,019 |
|
61,309 |
|
(2,873) |
|
10,743 |
|
145,198 |
Volume |
|
35,677 |
|
(17,664) |
|
32,321 |
|
(2,485) |
|
47,849 |
Smelter terms |
|
— |
|
— |
|
— |
|
1,378 |
|
1,378 |
2024 |
|
$413,980 |
|
$318,256 |
|
$218,406 |
|
$(41,273) |
|
$909,369 |
Variances - 2025 versus 2024: |
|
|
|
|
|
|
|
|
|
|
Price |
|
253,909 |
|
150,800 |
|
(5,131) |
|
17,822 |
|
417,400 |
Volume |
|
21,517 |
|
15,034 |
|
13,145 |
|
208 |
|
49,904 |
Smelter terms |
|
— |
|
— |
|
— |
|
7,228 |
|
7,228 |
2025 |
|
$689,406 |
|
$484,090 |
|
$226,420 |
|
$(16,015) |
|
$1,383,901 |
Average market and realized metals prices for 2025, 2024 and 2023 were as follows:
|
|
|
|
Average price for the year ended December 31, |
||||
|
|
|
|
2025 |
|
2024 |
|
2023 |
Silver |
|
Realized price per ounce |
|
$45.25 |
|
$28.58 |
|
$23.33 |
|
|
London PM Fix ($/ounce) |
|
39.94 |
|
28.24 |
|
23.39 |
Gold |
|
Realized price per ounce |
|
3,490 |
|
2,403 |
|
1,939 |
|
|
London PM Fix ($/ounce) |
|
3,435 |
|
2,387 |
|
1,943 |
Lead |
|
Realized price per pound |
|
0.94 |
|
0.97 |
|
1.03 |
|
|
LME Final Cash Buyer ($/pound) |
|
0.89 |
|
0.94 |
|
0.97 |
Zinc |
|
Realized price per pound |
|
1.39 |
|
1.37 |
|
1.35 |
|
|
LME Final Cash Buyer ($/pound) |
|
1.30 |
|
1.26 |
|
1.20 |
Copper |
|
Realized price per pound |
|
4.75 |
|
4.20 |
|
— |
|
|
LME Final Cash Buyer ($/pound) |
|
4.51 |
|
$4.15 |
|
NA |
Average realized prices differ from average market prices primarily because concentrate sales are generally recorded as revenues at the time of shipment at forward prices for the estimated month of settlement, which differ from average market prices. Due to the time elapsed between shipment of concentrates and final settlement with customers, we must estimate the prices at which sales of our metals will be settled. Previously recorded sales are adjusted to estimated settlement metals prices each period through final settlement. For 2025, 2024, and 2023, we recorded net positive price adjustments to provisional settlements of $51.0 million, $22.9 million and $18.2 million, respectively. The price adjustments related to silver, gold, zinc and lead contained in our concentrate sales were partially offset by gains and losses on derivative instruments for those metals for each year (see Note 10 of Notes to Consolidated Financial Statements for more information). The gains and losses on these contracts are included in revenues and impact the realized prices for silver, gold, lead and zinc. Realized prices are calculated by dividing gross revenues for each metal (which include the price adjustments and gains and losses on the forward contracts discussed above) by the payable quantities of each metal included in products sold during the period.
66
Total metals production and sales volumes for each period are shown in the following table:
|
|
|
|
Year Ended December 31, |
|
|||||||||
|
|
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Silver - |
|
Ounces produced |
|
|
17,026,785 |
|
|
|
16,169,930 |
|
|
|
14,342,863 |
|
|
|
Payable ounces sold |
|
|
15,236,377 |
|
|
|
14,485,158 |
|
|
|
12,955,006 |
|
Gold - |
|
Ounces produced |
|
|
150,509 |
|
|
|
141,923 |
|
|
|
151,259 |
|
|
|
Payable ounces sold |
|
|
138,709 |
|
|
|
132,442 |
|
|
|
141,602 |
|
Lead - |
|
Tons produced |
|
|
56,130 |
|
|
|
52,515 |
|
|
|
40,347 |
|
|
|
Payable tons sold |
|
|
48,727 |
|
|
|
44,795 |
|
|
|
35,429 |
|
Zinc - |
|
Tons produced |
|
|
68,558 |
|
|
|
66,308 |
|
|
|
60,579 |
|
|
|
Payable tons sold |
|
|
47,553 |
|
|
|
47,593 |
|
|
|
43,050 |
|
Copper - |
|
Tons produced |
|
|
1,804 |
|
|
|
1,874 |
|
|
|
1,823 |
|
|
|
Payable tons sold |
|
|
337 |
|
|
|
50 |
|
|
|
— |
|
The difference between what we report as “ounces/tons produced” and “payable ounces/tons sold” is attributable to the difference between the quantities of metals contained in our products versus the portion of those metals actually paid for by our customers pursuant to of our sales contract terms. Differences can also arise from inventory changes incidental to shipping schedules, or variances in ore grades which impact the amount of metals contained in concentrates produced and sold.
Sales, total cost of sales, gross profit (loss), Cash Cost, After By-product Credits, per Ounce (“Cash Cost”) (non-GAAP) and AISC (non-GAAP) at our operating units for 2025, 2024 and 2023 were as follows (in thousands, except for Cash Cost and AISC):
|
|
Silver |
|
|
Gold |
|
||||||||||||||||||||||
|
|
Greens Creek |
|
|
Lucky Friday |
|
|
Keno Hill |
|
|
Total Silver (2) |
|
|
Casa Berardi |
|
|
Other (3) |
|
|
Total Gold and other |
|
|||||||
2025: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Sales |
|
$ |
612,827 |
|
|
$ |
306,640 |
|
|
$ |
145,317 |
|
|
$ |
1,064,784 |
|
|
$ |
319,117 |
|
|
$ |
39,118 |
|
|
$ |
358,235 |
|
Total cost of sales |
|
|
(290,180 |
) |
|
|
(173,690 |
) |
|
|
(91,652 |
) |
|
|
(555,522 |
) |
|
|
(206,720 |
) |
|
|
(38,574 |
) |
|
|
(245,294 |
) |
Gross profit |
|
$ |
322,647 |
|
|
$ |
132,950 |
|
|
$ |
53,665 |
|
|
$ |
509,262 |
|
|
$ |
112,397 |
|
|
$ |
544 |
|
|
$ |
112,941 |
|
Cash Cost, After By-product Credits, per Silver or Gold Ounce (1) |
|
$ |
(8.02 |
) |
|
$ |
8.66 |
|
|
|
|
|
$ |
(1.75 |
) |
|
$ |
1,851 |
|
|
|
|
|
$ |
1,851 |
|
||
AISC, After By-product Credits, per Silver or Gold Ounce (1) |
|
$ |
(2.36 |
) |
|
$ |
21.98 |
|
|
|
|
|
$ |
11.28 |
|
|
$ |
2,029 |
|
|
|
|
|
$ |
2,029 |
|
||
2024: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Sales |
|
$ |
421,574 |
|
|
$ |
203,154 |
|
|
$ |
74,962 |
|
|
$ |
699,690 |
|
|
$ |
209,679 |
|
|
$ |
20,556 |
|
|
$ |
230,235 |
|
Total cost of sales |
|
|
(268,127 |
) |
|
|
(144,485 |
) |
|
|
(74,962 |
) |
|
|
(487,574 |
) |
|
|
(223,614 |
) |
|
|
(20,527 |
) |
|
|
(244,141 |
) |
Gross profit (loss) |
|
$ |
153,447 |
|
|
$ |
58,669 |
|
|
$ |
— |
|
|
$ |
212,116 |
|
|
$ |
(13,935 |
) |
|
$ |
29 |
|
|
$ |
(13,906 |
) |
Cash Cost, After By-product Credits, per Silver or Gold Ounce (1) |
|
$ |
(0.05 |
) |
|
$ |
7.80 |
|
|
|
|
|
$ |
2.72 |
|
|
$ |
1,762 |
|
|
|
|
|
$ |
1,762 |
|
||
AISC, After By-product Credits, per Silver or Gold Ounce (1) |
|
$ |
5.65 |
|
|
$ |
16.50 |
|
|
|
|
|
|
13.06 |
|
|
$ |
1,990 |
|
|
|
|
|
$ |
1,990 |
|
||
2023: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Sales |
|
$ |
384,504 |
|
|
$ |
116,284 |
|
|
$ |
35,518 |
|
|
$ |
536,306 |
|
|
$ |
177,678 |
|
|
$ |
6,243 |
|
|
$ |
183,921 |
|
Total cost of sales |
|
|
(259,895 |
) |
|
|
(84,185 |
) |
|
|
(35,518 |
) |
|
|
(379,598 |
) |
|
|
(221,341 |
) |
|
|
(6,339 |
) |
|
|
(227,680 |
) |
Gross profit (loss) |
|
$ |
124,609 |
|
|
$ |
32,099 |
|
|
$ |
— |
|
|
$ |
156,708 |
|
|
$ |
(43,663 |
) |
|
$ |
(96 |
) |
|
$ |
(43,759 |
) |
Cash Cost, After By-product Credits, per Silver or Gold Ounce (1) |
|
$ |
2.53 |
|
|
$ |
5.51 |
|
|
|
|
|
$ |
3.23 |
|
|
$ |
1,652 |
|
|
|
|
|
$ |
1,652 |
|
||
AISC, After By-product Credits, per Silver or Gold Ounce (1) |
|
$ |
7.14 |
|
|
$ |
12.21 |
|
|
|
|
|
$ |
11.76 |
|
|
$ |
2,048 |
|
|
|
|
|
$ |
2,048 |
|
||
67
While revenue from zinc, lead and gold by-products is significant, we believe that identification of silver as the primary product of Greens Creek, Lucky Friday, and Keno Hill is appropriate because:
Accordingly, we believe the identification of gold, lead, zinc and copper as by-product credits at Greens Creek, Lucky Friday and Keno Hill is appropriate because of their lower economic value compared to silver and due to the fact that silver is the primary product we intend to produce at those locations. In addition, we have not consistently received sufficient revenue from any single by-product metal to warrant classification of such as a co-product.
We periodically review our revenues to ensure that reporting of primary products and by-products is appropriate. Because for Greens Creek, Lucky Friday and Keno Hill we consider zinc, lead, gold and copper to be by-products of our silver production, the values of these metals from Greens Creek and Keno Hill only offset operating costs within our calculations of Cash Cost, After By-product Credits, per Silver Ounce and AISC, After By-product Credits, per Silver Ounce. We currently do not report Cash Cost, After By-product Credits, per Silver Ounce and AISC, After By-product Credits, per Silver Ounce for our Keno Hill operation as it is in the production ramp-up phase and has not met our definition of commercial production. We define an operation as being in commercial production upon achievement of the following criteria:
Currently we meet only one of the above criteria - silver recoveries are at expected steady-state production levels. Determination of when these criteria have been met requires the use of judgment, and our definition of commercial production may differ from that of other mining companies.
As Keno Hill has not yet been determined to be in commercial production, it's costs and by-product credits are excluded from our consolidated Cash Cost, After By-product Credits, per Silver Ounce and AISC, After By-product Credits, per Silver Ounce because (i) by definition it has not reached the sustaining stage and (ii) including its costs and by-product credits we believe would distort consolidated Cash Cost, After By-product Credits, per Silver Ounce and AISC, After By-product Credits, per Silver Ounce of our operating silver mines that are in commercial production and operating as designed, and not facilitate a meaningful comparison of our performance versus that of our peers.
We believe the identification of silver as a by-product credit is appropriate at Casa Berardi because of its lower economic value compared to gold and due to the fact that gold is the primary product we intend to produce. In addition, we do not receive sufficient revenue from silver at the Casa Berardi to warrant classification of such as a co-product. Because we consider silver to be a by-product of our gold production at Casa Berardi, the value of silver offsets operating costs within our calculations of Cash Cost, After By-product Credits, per Gold Ounce and AISC, After By-product Credits, per Gold Ounce.
68
For the year ended December 31, 2025 and 2024, we reported net income applicable to common stockholders of $321.2 million and $35.3 million, respectively, and a net loss of $84.8 million in 2023. The following factors contributed to those differences:
|
|
Year Ended December 31, |
|
|||||||||
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Keno Hill |
|
$ |
— |
|
|
$ |
26,754 |
|
|
$ |
29,793 |
|
Lucky Friday |
|
|
— |
|
|
|
2,207 |
|
|
|
25,548 |
|
Nevada |
|
|
11,885 |
|
|
|
12,304 |
|
|
|
16,549 |
|
Casa Berardi |
|
|
— |
|
|
|
— |
|
|
|
2,228 |
|
San Sebastian |
|
|
2,120 |
|
|
|
2,042 |
|
|
|
2,134 |
|
Total ramp-up and suspension costs |
|
$ |
14,005 |
|
|
$ |
43,307 |
|
|
$ |
76,252 |
|
While ramping up an operation, costs incurred to generate revenue during the ramp up phase in excess of the revenue generated, are reclassified to ramp up and suspension costs on our statement of operations, which amounted to $26.8 million and $29.8 million in 2024 and 2023, respectively. Operations at Lucky Friday were suspended from August 2023 to January 9, 2024, due to a fire in the secondary egress. Costs incurred during this period amounted to $2.2 million and $25.5 million during 2024 and 2023, respectively. Casa Berardi incurred $2.2 million as operations were suspended for 20 days in June, 2023, due to Quebec wildfires. The costs incurred at San Sebastian and Nevada are holding costs as all operations at these sites were suspended during these periods.
|
|
Year Ended December 31, |
|
|||||||||
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
(Loss) gain on derivative contracts |
|
$ |
(39,445 |
) |
|
$ |
(5,907 |
) |
|
$ |
3,168 |
|
Unrealized gain (loss) on investments in equity securities |
|
$ |
40,914 |
|
|
|
3,703 |
|
|
|
(243 |
) |
Gain on disposition or exchange of investments |
|
$ |
10,986 |
|
|
|
— |
|
|
|
— |
|
Total fair value adjustments, net |
|
$ |
12,455 |
|
|
$ |
(2,204 |
) |
|
$ |
2,925 |
|
69
Greens Creek
Dollars are in thousands (except per ounce and per ton amounts) |
|
Years Ended December 31, |
|
|||||||||
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Sales |
|
$ |
612,827 |
|
|
$ |
421,574 |
|
|
$ |
384,504 |
|
Cost of sales and other direct production costs |
|
|
(234,221 |
) |
|
|
(214,677 |
) |
|
|
(205,900 |
) |
Depreciation, depletion and amortization |
|
|
(55,959 |
) |
|
|
(53,450 |
) |
|
|
(53,995 |
) |
Total cost of sales |
|
|
(290,180 |
) |
|
|
(268,127 |
) |
|
|
(259,895 |
) |
Gross profit |
|
$ |
322,647 |
|
|
$ |
153,447 |
|
|
$ |
124,609 |
|
|
|
|
|
|
|
|
|
|
|
|||
Tons of ore milled |
|
|
871,659 |
|
|
|
895,318 |
|
|
|
914,796 |
|
Production: |
|
|
|
|
|
|
|
|
|
|||
Silver (ounces) |
|
|
8,724,996 |
|
|
|
8,480,877 |
|
|
|
9,731,752 |
|
Gold (ounces) |
|
|
59,349 |
|
|
|
55,275 |
|
|
|
60,896 |
|
Lead (tons) |
|
|
18,213 |
|
|
|
18,320 |
|
|
|
19,578 |
|
Zinc (tons) |
|
|
51,387 |
|
|
|
51,288 |
|
|
|
51,496 |
|
Copper (tons) |
|
|
1,804 |
|
|
|
1,874 |
|
|
|
1,823 |
|
Payable metal quantities sold: |
|
|
|
|
|
|
|
|
|
|||
Silver (ounces) |
|
|
7,375,295 |
|
|
|
7,331,502 |
|
|
|
8,493,040 |
|
Gold (ounces) |
|
|
46,873 |
|
|
|
45,201 |
|
|
|
49,790 |
|
Lead (tons) |
|
|
13,585 |
|
|
|
13,706 |
|
|
|
15,247 |
|
Zinc (tons) |
|
|
35,957 |
|
|
|
36,725 |
|
|
|
36,042 |
|
Copper (tons) |
|
|
337 |
|
|
|
50 |
|
|
|
— |
|
Ore grades: |
|
|
|
|
|
|
|
|
|
|||
Silver ounces per ton |
|
|
12.6 |
|
|
|
12.0 |
|
|
|
13.3 |
|
Gold ounces per ton |
|
|
0.092 |
|
|
|
0.086 |
|
|
|
0.089 |
|
Lead percent |
|
|
2.5 |
|
|
|
2.5 |
|
|
|
2.6 |
|
Zinc percent |
|
|
6.6 |
|
|
|
6.4 |
|
|
|
6.4 |
|
Copper percent |
|
|
0.3 |
|
|
|
0.3 |
|
|
|
0.3 |
|
Total production cost per ton |
|
$ |
249.77 |
|
|
$ |
216.15 |
|
|
$ |
204.20 |
|
Cash Cost, After By-product Credits, per Silver Ounce (1) |
|
$ |
(8.02 |
) |
|
$ |
(0.05 |
) |
|
$ |
2.53 |
|
AISC, After By-Product Credits, per Silver Ounce (1) |
|
$ |
(2.36 |
) |
|
$ |
5.65 |
|
|
$ |
7.14 |
|
Capital additions |
|
$ |
54,617 |
|
|
$ |
47,795 |
|
|
$ |
43,542 |
|
Gross profit increased by $169.2 million to $322.6 million in 2025 from $153.4 million in 2024, due to higher realized prices for all metals sold (other than lead) and higher sales volumes, except for lead and zinc which drove record annual revenues, partially offset by higher production costs which were primarily attributable to higher labor, contractor costs and materials and consumables. See Item 1A. Risk Factors - Our profitability could be affected by inflation, including the prices of other commodities for a discussion of certain risks related to our operations profitability.
70
Gross profit increased by $28.8 million to $153.4 million in 2024 from $124.6 million in 2023, due to higher realized prices for all metals sold other than lead, partly offset by lower sales volumes for all metals, except zinc, and higher production costs which primarily consist of higher labor and contractor costs and higher equipment maintenance. See Item 1A. Risk Factors - Our profitability could be affected by inflation, including the prices of other commodities for a discussion of certain risks related to our operations profitability.
Capital additions increased by $6.8 million in 2025 to $54.6 million compared to 2024. Significant components of the 2025 capital additions were $17.9 million on mine and primary ore access development, $14.0 million on mine equipment, $7.7 million on surface equipment and infrastructure, $5.8 million on mill improvements and $4.0 million of definition drilling.
The chart below illustrates the factors contributing to the variances in Cash Cost, After By-product Credits, Per Silver Ounce for 2025 compared to 2024 and 2023:
The following table summarizes the components of Cash Cost, After By-product Credits, per Silver Ounce:
|
|
Years Ended December 31, |
|
|||||||||
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Cash Cost, Before By-product Credits, per Silver Ounce |
|
$ |
26.64 |
|
|
$ |
27.19 |
|
|
$ |
24.85 |
|
By-product credits per silver ounce |
|
|
(34.66 |
) |
|
|
(27.24 |
) |
|
|
(22.32 |
) |
Cash Cost, After By-product Credits, per Silver Ounce |
|
$ |
(8.02 |
) |
|
$ |
(0.05 |
) |
|
$ |
2.53 |
|
The following table summarizes the components of AISC, After By-product Credits, per Silver Ounce:
|
|
Years Ended December 31, |
|
|||||||||
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
AISC, Before By-product Credits, per Silver Ounce |
|
$ |
32.30 |
|
|
$ |
32.89 |
|
|
$ |
29.46 |
|
By-product credits per silver ounce |
|
|
(34.66 |
) |
|
|
(27.24 |
) |
|
|
(22.32 |
) |
AISC, After By-product Credits, per Silver Ounce |
|
$ |
(2.36 |
) |
|
$ |
5.65 |
|
|
$ |
7.14 |
|
The decrease in Cash Cost, After By-product Credits and AISC, After By-product Credits per Silver Ounce in 2025 compared to 2024 was primarily due to higher by-product credits, primarily due to higher realized gold prices and higher silver production. The decrease in Cash Cost, After By-product Credits, per Silver Ounce in 2024 compared to 2023 was primarily due to higher by-product credits, primarily due to higher realized gold prices, partly offset by lower silver production due to 7 days of unplanned maintenance on
71
the Semi-Autogenous Grinding ("SAG") mill variable frequency drive and lower grade material mined and higher production costs primarily related to higher labor and contractor costs driven by inflation and higher equipment maintenance costs. AISC, After By-product Credits, decreased due to lower cash costs per ounce, partly offset by higher sustaining capital expenditures in 2024 compared to 2023.
Lucky Friday
Dollars are in thousands (except per ounce and per ton amounts) |
|
Years Ended December 31, |
|
|||||||||
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Sales |
|
$ |
306,640 |
|
|
$ |
203,154 |
|
|
$ |
116,284 |
|
Cost of sales and other direct production costs |
|
|
(122,635 |
) |
|
|
(103,436 |
) |
|
|
(59,860 |
) |
Depreciation, depletion and amortization |
|
|
(51,055 |
) |
|
|
(41,049 |
) |
|
|
(24,325 |
) |
Total cost of sales |
|
|
(173,690 |
) |
|
|
(144,485 |
) |
|
|
(84,185 |
) |
Gross profit |
|
$ |
132,950 |
|
|
$ |
58,669 |
|
|
$ |
32,099 |
|
|
|
|
|
|
|
|
|
|
|
|||
Tons of ore milled |
|
|
427,048 |
|
|
|
406,541 |
|
|
|
231,129 |
|
Production: |
|
|
|
|
|
|
|
|
|
|||
Silver (ounces) |
|
|
5,260,686 |
|
|
|
4,890,949 |
|
|
|
3,086,119 |
|
Lead (tons) |
|
|
34,284 |
|
|
|
31,265 |
|
|
|
19,543 |
|
Zinc (tons) |
|
|
14,924 |
|
|
|
13,513 |
|
|
|
7,944 |
|
Payable metal quantities sold: |
|
|
|
|
|
|
|
|
|
|||
Silver (ounces) |
|
|
4,925,162 |
|
|
|
4,506,632 |
|
|
|
3,020,116 |
|
Lead (tons) |
|
|
31,828 |
|
|
|
28,577 |
|
|
|
19,079 |
|
Zinc (tons) |
|
|
11,596 |
|
|
|
9,735 |
|
|
|
6,160 |
|
Ore grades: |
|
|
|
|
|
|
|
|
|
|||
Silver ounces per ton |
|
|
13.0 |
|
|
|
12.7 |
|
|
|
14.0 |
|
Lead percent |
|
|
8.5 |
|
|
|
8.2 |
|
|
|
8.9 |
|
Zinc percent |
|
|
4.1 |
|
|
|
3.9 |
|
|
|
4.1 |
|
Total production cost per ton |
|
$ |
272.09 |
|
|
$ |
245.19 |
|
|
$ |
218.45 |
|
Cash Cost, After By-product Credits, per Silver Ounce (1) |
|
$ |
8.66 |
|
|
$ |
7.80 |
|
|
$ |
5.51 |
|
AISC, After By-product Credits, per Silver Ounce (1) |
|
$ |
21.98 |
|
|
$ |
16.50 |
|
|
$ |
12.21 |
|
Capital additions |
|
$ |
72,933 |
|
|
$ |
49,592 |
|
|
$ |
65,337 |
|
Gross profit in 2025 of $133.0 million, was $74.3 million higher than 2024, primarily due to higher realized prices for silver, and higher sales volumes for all metals produced driven by record production and the suspension of mining operations mentioned above. However, the benefit of higher production and prices has been partly offset by higher costs, reflected in higher production costs per ton which have increased by 11%. For the year, the higher costs relate to: (i) hourly employee profit sharing costs due to higher silver prices and production; (ii) property and liability insurance resulting from higher asset values and coverage limits; (iii) higher employee medical costs related to headcount growth and inflation in medical care costs; (iv) consumables and repairs to support increased production; (v) an increase in mine hourly headcount to reduce reliance on more expensive contractors and support higher production; (vi) higher equipment maintenance costs related to parts as the mine continued to execute our equipment maintenance standards while supporting increased tonnage; and (vii) higher waste rock removal haulage costs.
While certain cost elements will persist as the mine maintains steady and consistent production, we have identified potential cost mitigation plans. These plans include further reduction of contractors, mining method optimization to improve production efficiency and reduction of consumables usage, mine and mill infrastructure upgrades to increase production and reduce maintenance, and consolidation of sourcing of some high-volume consumables to improve pricing. However, there can be no assurance these efforts will be successful in reducing costs or offsetting the potential future impacts of inflation or other factors impacting profitability.
During August 2023, the production at the mine was suspended due to a fire that occurred while repairing an unused station in the #2 ventilation shaft. It was determined that a secondary egress needed to be developed and as a result, the mine did not restart
72
production until January 9, 2024, and ramped up to full production during the first quarter. The Company had property and business interruption insurance coverage with an underground sub-limit of $50.0 million, and received the full coverage amount of $50.0 million in 2024. The discussion of Lucky Friday's results below for the years ended December 31, 2024 and 2023 has been impacted by this prior suspension of operations.
Gross profit in 2024 of $58.7 million, was $26.6 million higher than 2023, primarily due to higher realized prices for silver, and higher sales volumes for all metals produced due to the suspension of mining operations mentioned above. For the year ended December 31, 2024, $2.2 million of site specific suspension costs were included within Ramp-up and suspension costs on our consolidated statements of operations and comprehensive income (loss), compared to $25.5 million in 2023.
Total capital additions increased by $23.3 million in 2025 to $72.9 million compared to 2024 due to significant projects including $24.5 million for development, $12.1 million for surface cooling project, $11.7 million for pond 5 construction, $6.8 million for definition drilling, $4.4 million for shaft renovation, $2.1 million for bolters, $1.9 million for ramp work and $1.5 million for jumbo replacements.
The chart below illustrates the factors contributing to the variances in Cash Cost, After By-product Credits, Per Silver Ounce for 2025, 2024 and 2023.
The following table summarizes the components of Cash Cost, After By-product Credits, per Silver Ounce:
|
|
Years Ended December 31, |
|
|||||||||
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Cash Cost, Before By-product Credits, per Silver Ounce |
|
$ |
25.00 |
|
|
$ |
24.48 |
|
|
|
21.45 |
|
By-product credits per silver ounce |
|
|
(16.34 |
) |
|
|
(16.68 |
) |
|
|
(15.94 |
) |
Cash Cost, After By-product Credits, per Silver Ounce |
|
$ |
8.66 |
|
|
$ |
7.80 |
|
|
$ |
5.51 |
|
The following table summarizes the components of AISC, After By-product Credits, per Silver Ounce:
|
|
Years Ended December 31, |
|
|||||||||
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
AISC, Before By-product Credits, per Silver Ounce |
|
$ |
38.32 |
|
|
$ |
33.18 |
|
|
$ |
28.15 |
|
By-product credits per silver ounce |
|
|
(16.34 |
) |
|
|
(16.68 |
) |
|
|
(15.94 |
) |
AISC, After By-product Credits, per Silver Ounce |
|
$ |
21.98 |
|
|
$ |
16.50 |
|
|
$ |
12.21 |
|
73
The increase in Cash Cost and AISC, each After By-product Credits, per Silver Ounce in 2025 compared to 2024 was due to higher production costs, and higher sustaining capital for AISC, partly offset by higher silver production.
The increase in Cash Cost and AISC, each After By-product Credits, per Silver Ounce in 2024 compared to 2023 was due to higher production costs, and higher sustaining capital for AISC, partly offset by higher silver production and higher by-product credits.
Keno Hill
Dollars are in thousands (except per ounce and per ton amounts) |
|
Year Ended |
|
|||||||||
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Sales |
|
$ |
145,317 |
|
|
$ |
74,962 |
|
|
$ |
35,518 |
|
Cost of sales and other direct production costs |
|
|
(71,883 |
) |
|
|
(58,826 |
) |
|
|
(31,241 |
) |
Depreciation, depletion and amortization |
|
|
(19,769 |
) |
|
|
(16,136 |
) |
|
|
(4,277 |
) |
Total cost of sales |
|
|
(91,652 |
) |
|
|
(74,962 |
) |
|
|
(35,518 |
) |
Gross profit |
|
$ |
53,665 |
|
|
$ |
— |
|
|
$ |
— |
|
Tons of ore milled |
|
|
108,339 |
|
|
|
109,292 |
|
|
|
56,331 |
|
Production: |
|
|
|
|
|
|
|
|
|
|||
Silver (ounces) |
|
|
3,018,490 |
|
|
|
2,773,873 |
|
|
|
1,502,577 |
|
Lead (tons) |
|
|
3,633 |
|
|
|
2,930 |
|
|
|
1,225 |
|
Zinc (tons) |
|
|
2,247 |
|
|
|
1,507 |
|
|
|
1,139 |
|
Payable metal quantities sold: |
|
|
|
|
|
|
|
|
|
|||
Silver (ounces) |
|
|
2,925,368 |
|
|
|
2,623,469 |
|
|
|
1,419,173 |
|
Lead (tons) |
|
|
3,314 |
|
|
|
2,513 |
|
|
|
848 |
|
Zinc (tons) |
|
|
1,696 |
|
|
|
1,132 |
|
|
|
1,102 |
|
Ore grades: |
|
|
|
|
|
|
|
|
|
|||
Silver ounces per ton |
|
|
29.0 |
|
|
|
26.2 |
|
|
|
27.7 |
|
Lead percent |
|
|
3.6 |
% |
|
|
2.8 |
% |
|
|
2.3 |
% |
Zinc percent |
|
|
2.6 |
% |
|
|
1.6 |
% |
|
|
2.5 |
% |
Capital additions |
|
$ |
58,192 |
|
|
$ |
54,869 |
|
|
$ |
44,672 |
|
We have not disclosed cost per ounce statistics for the Keno Hill operation as it is in the production ramp-up phase and has not met our definition of commercial production. See above "Consolidated Results of Operations" for our definition of commercial production. Determination of when those criteria have been met requires the use of judgment, and our definition of commercial production may differ from that of other mining companies.
We acquired our Keno Hill operations as part of the Alexco acquisition in September 2022 and have focused on development activities and began ramp-up of the mill during the second quarter of 2023. The average throughput during the year ended December 31, 2025, was 297 tons per day (the mine is currently permitted to a maximum of an average of 440 tons per day), with silver grades milled of 29.0 ounces per ton. In 2025, the mill relied on existing ore stockpiles as the mine continues to focus on development and ramp up to higher tonnage rates with mining rates of 297 tons per day, with material sourced from both the Bermingham and Flame and Moth deposits. Mill throughput, while currently steady, has been negatively impacted by last year's events as described below.
During the twelve months ended December 31, 2025 and 2024, Keno Hill recorded sales of $145.3 million and $75.0 million, respectively, with the increase due primarily to higher metals sales volumes and realized prices. As a result of higher revenues, Keno Hill generated gross profit of $53.7 million during the twelve months ended December 31, 2025, and did not transfer any total cost of sales to ramp-up and suspension costs, whereas in 2024, total cost of sales in excess of sales of $26.8 million were reclassified to ramp-up and suspension costs in the Condensed Consolidated Statements of Operations and Comprehensive Income. During 2025, Keno Hill recorded capital additions of $58.2 million, of which $32.8 million related to mine development, $6.7 million for a backfill plant, $5.2 million related to the dry stack tailings facility ("DSTF"), $4.6 million for surface and general plant additions and $1.4 million for definition drilling. During 2024, Capital additions were $54.9 million, of which $28.1 million related to mine development, $8.8 million related to the DSTF, $5.9 million related to mine mobile equipment, $3.2 million for camp upgrades and $2.9 million for the surface backfill plant.
During 2023, Keno Hill recorded sales and total cost of sales of $35.5 million, related to the concentrate produced and sold during ramp up. During the year ended December 31, 2023, $29.8 million of site specific ramp up costs were included within Ramp-up and suspension costs and $4.7 million of site specific exploration costs were included within Exploration and pre-development as reported
74
on our consolidated statements of operations and comprehensive (loss) income. Capital additions were $44.7 million, of which $29.6 million related to mine development and $11.3 million to mobile equipment purchases, crusher modifications and camp upgrades.
From commencement of production until late August, 2024, ore production and mill throughput generally increased as planned, leading to increased levels of production (though still not reaching the permitted capacity at the mill). However, starting in mid-2024 and continuing today, Keno Hill has been impacted by external events which have affected permitting, projects and production, and delayed our ability to reach sustained, profitable production. In late June 2024, an unrelated, third party, Victoria Gold, experienced a heap leach failure at its Eagle Mine which is located near Keno Hill. This incident had several immediate and ongoing impacts on our operations. The primary impact was that we were forced to suspend milling operations at Keno Hill between August 27 and October 26, 2024 due to delays in receiving authorizations and permits because the focus of the Yukon Government and the First Nation of Na-Cho Nyäk Dun (“FNNND”) on the Eagle Mine incident response and not on routine permitting matters. Mill operations and design and construction projects resumed during the fourth quarter of 2024. Our original planned schedule for permitting and projects has been extended, but we are taking steps, including working with regulators, to establish a viable schedule for our operational plans.
An ongoing impact of the Eagle Mine incident is the FNNND's public position on mining, which has evolved from a call to halt all mining activity to support of environmentally responsible mining practices. We continue to strengthen our partnership with the FNNND - which is important because Keno Hill is within their Traditional Territory - through enhanced environmental stewardship and community engagement initiatives, building on their support for responsible mining practices.
Then, starting in late October 2024, Keno Hill began experiencing power curtailments when the utility, Yukon Energy, experienced a turbine failure at its Aishihik hydroelectric plant in Whitehorse. That failure and Yukon Energy's resulting focus on line maintenance, combined with cold temperatures in the Yukon (and the resulting increase in demand for power), caused Yukon Energy to reduce power to Keno Hill, resulting in the operation's inability to fully power the mine and mill on several occasions in late 2024 and for 8 days in the first quarter of 2025. These power constraints impacted approximately 130,000 ounces of silver production and labor costs for idled employees of approximately $0.5 million in 2025. During December 2025, due to extreme cold weather, Yukon Energy again curtailed power supply to us for 16 days, which continued through December 30, 2025.
Permitting is one of the most important factors in our ability to reach sustainable, profitable production at Keno Hill. Increased production means a need for increased tailings storage, waste storage, water treatment and discharge, camp space and reliable power, all of which are typical requirements for mines in the expansion phase. These projects require new or modified permits, as well as the capital to implement them. Although we continue to make progress on these ordinary-course permitting matters, we have yet to make up for the delays described above. In addition, as we develop new zones for ore production at Keno Hill (and our other mines), we are frequently confronted with challenging conditions such as rock quality and ground water volumes. Currently, we are developing new headings at Keno Hill to supplement existing, or replace mined out headings. At some of these new headings, we are encountering more groundwater than expected. The mine's water license has limits on the amount of water that can be discharged from the mine. Although we currently are within permitted water discharge limits, if production from these new zones would cause water discharges greater than the license allows we will need to make alternative arrangements, which likely includes seeking an amendment to our current water license. There can be no assurances that the Yukon Water Board will grant such an amendment. If we confirm that continued mining in these new zones would lead to discharges in excess of license limits and are unable to amend our license in a timely manner, our options would then include developing a different operating plan to reduce discharges and/or curtailing production to remain within existing permitted discharge limits. Although we consider it unlikely, if none of these potential solutions is achieved, it is possible we would consider pausing production and other mining activities at the impacted areas and reassess our permitting strategy and other future operational aspects of the mine. See the Item 1A. Risk Factors - "We are required to obtain governmental permits and other approvals in order to conduct mining operations."
We also continue to face operational challenges such as work force availability, dilution, execution of projects, limited camp space, and the ramp-up of ERDC environmental remediation activities (which adds incremental demand on Keno Hill's infrastructure and resources, most notably camp space). As a result, we project 2026 silver production to be comparable to 2025 levels. The projected flat production levels at Keno Hill for 2026 should allow us to focus on (i) permitting, (ii) stakeholder outreach and ensuring we have local support, (iii) projects such as tailings storage expansion and the construction of a cemented tails batch plant, (iv) mine development and (v) meeting the above-mentioned operational challenges.
As stated above, Keno Hill has generated profits at current throughput rates and prices. Our immediate focus is to advance permits and successfully execute infrastructure projects, with the goal of putting the mine on a path toward achieving its current permitted capacity of 440 tons per day which, at current prices, we project would generate sustained, positive free cash flow, while preserving expansion optionality beyond 440 tons per day. However, currently, Keno Hill is not configured to sustainably produce 440 tons per day (although the mill has achieved that rate for multiple weeks on end during test run periods). To reach 440 tons per day throughput, we would need to continue to mine ore from both the Bermingham deposit and the lower grade Flame & Moth deposit. Achieving 440 or higher tons per day would require targeted infrastructure investments, obtaining permits, executing projects, mine development and
75
maintaining social license to operate. If any one of these were not to occur, or if prices were to decrease from our current budgeted prices, Keno Hill as currently configured would not be profitable, and placing the operation on care and maintenance would be an option. See Item 1A. Risk Factor - We may not realize all of the anticipated benefits from our acquisitions, including our 2022 acquisition of Alexco.
Casa Berardi
Dollars are in thousands (except per ounce and per ton amounts) |
|
Years Ended December 31, |
|
|||||||||
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Sales |
|
$ |
319,117 |
|
|
$ |
209,679 |
|
|
$ |
177,678 |
|
Cost of sales and other direct production costs |
|
|
(173,486 |
) |
|
|
(150,779 |
) |
|
|
(155,304 |
) |
Depreciation, depletion and amortization |
|
|
(33,234 |
) |
|
|
(72,835 |
) |
|
|
(66,037 |
) |
Total cost of sales |
|
|
(206,720 |
) |
|
|
(223,614 |
) |
|
|
(221,341 |
) |
Gross profit (loss) |
|
$ |
112,397 |
|
|
$ |
(13,935 |
) |
|
$ |
(43,663 |
) |
|
|
|
|
|
|
|
|
|
|
|||
Tons of ore milled |
|
|
1,533,800 |
|
|
|
1,523,420 |
|
|
|
1,446,488 |
|
Production: |
|
|
|
|
|
|
|
|
|
|||
Gold (ounces) |
|
|
91,160 |
|
|
|
86,648 |
|
|
|
90,363 |
|
Silver (ounces) |
|
|
22,613 |
|
|
|
24,231 |
|
|
|
22,415 |
|
Payable metal quantities sold: |
|
|
|
|
|
|
|
|
|
|||
Gold (ounces) |
|
|
91,836 |
|
|
|
87,242 |
|
|
|
91,268 |
|
Silver (ounces) |
|
|
22,456 |
|
|
|
23,554 |
|
|
|
22,566 |
|
Ore grades: |
|
|
|
|
|
|
|
|
|
|||
Gold ounces per ton |
|
|
0.068 |
|
|
|
0.067 |
|
|
|
0.073 |
|
Silver ounces per ton |
|
|
0.02 |
|
|
|
0.02 |
|
|
|
0.02 |
|
Total production cost per ton |
|
$ |
110.46 |
|
|
$ |
100.58 |
|
|
$ |
104.75 |
|
Cash Cost, After By-product Credits, per Gold Ounce (1) |
|
$ |
1,851 |
|
|
$ |
1,762 |
|
|
$ |
1,652 |
|
AISC, After By-product Credits, per Gold Ounce (1) |
|
$ |
2,029 |
|
|
$ |
1,990 |
|
|
$ |
2,048 |
|
Capital additions |
|
$ |
61,514 |
|
|
$ |
60,704 |
|
|
$ |
70,056 |
|
Since late 2024, as underground mining neared completion before transitioning to production coming only from the 160 open pit, we conducted a strategic review of Casa Berardi's role within our operating mine portfolio. This review coincided with a significant increase in gold prices and created opportunities to revise our plans for Casa Berardi, including extending underground mining throughout 2025, which resulted in higher gold production in 2025 compared to 2024. However, severe weather conditions in December 2025 froze the mill feeder system, negatively impacting production during late December and into January 2026.
On January 26, 2026, we announced the sale of our Hecla Quebec Inc. subsidiary which owns the Casa Berardi segment to Orezone. For a description of the material terms of the sale see "Recent Developments" above.
Gross profit increased by $126.3 million to $112.4 million in 2025 compared to a gross loss of $13.9 million in 2024. The increase in gross profit primarily relates to significantly higher realized gold prices in addition to higher gold sales volumes. For 2025, gross profit also benefited from lower depreciation expense resulting from the west underground mine being fully depreciated in 2024, partly offset by higher production costs. See Item 1A. Risk Factors - Our profitability could be affected by inflation, including the prices of other commodities for a discussion of certain risks related to our operation's profitability.
Gross loss decreased by $29.7 million to $13.9 million in 2024 compared to $43.7 million in 2023. The decrease in gross loss primarily relates to an increase in realized gold prices, partly offset by lower gold sales volumes. For 2024, the benefit of lower production costs due to the closure of the east mine in July 2023, was largely offset by increased depreciation expense from the accelerated amortization of the west underground mine in the first half of 2024. See Item 1A. Risk Factors - Our profitability could be affected by inflation, including the prices of other commodities for a discussion of certain risks related to our operation's profitability.
76
In 2025, total capital additions increased by $0.8 million to $61.5 million compared to 2024, and in the current year primarily related to tailings facility construction. Total capital additions decreased by $9.4 million in 2024 compared to 2023 as the prior year contained a significant amount of purchases of new surface fleet equipment as the mine transitioned from an underground to an open pit operation. The majority of 2024 capital expenditures consisted of tailings dam construction costs.
The chart below illustrates the factors contributing to Cash Cost, After By-product Credits, Per Gold Ounce for 2025, 2024 and 2023:
The following table summarizes the components of Cash Cost, After By-product Credits, per Gold Ounce:
|
|
Years Ended December 31, |
|
|||||||||
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Cash Cost, Before By-product Credits, per Gold Ounce |
|
$ |
1,861 |
|
|
$ |
1,770 |
|
|
$ |
1,658 |
|
By-product credits per gold ounce |
|
|
(10 |
) |
|
|
(8 |
) |
|
|
(6 |
) |
Cash Cost, After By-product Credits, per Gold Ounce |
|
$ |
1,851 |
|
|
$ |
1,762 |
|
|
$ |
1,652 |
|
The following table summarizes the components of AISC, After By-product Credits, per Gold Ounce:
|
|
Years Ended December 31, |
|
|||||||||
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
AISC, Before By-product Credits, per Gold Ounce |
|
$ |
2,039 |
|
|
$ |
1,998 |
|
|
$ |
2,054 |
|
By-product credits per gold ounce |
|
|
(10 |
) |
|
|
(8 |
) |
|
|
(6 |
) |
AISC, After By-product Credits, per Gold Ounce |
|
$ |
2,029 |
|
|
$ |
1,990 |
|
|
$ |
2,048 |
|
The increase in Cash Cost, After By-product Credits, per Gold Ounce and AISC, After By-product Credits, per Gold Ounce for 2025 compared to 2024 was primarily driven by higher production costs, partly offset by higher gold production. For 2024, Cash Cost, After By-product Credits, per Gold Ounce was higher primarily due to lower production compared to 2023. The increase in AISC, After By-product Credits, per Gold Ounce for 2025 compared to 2024 was partly offset by sustaining capital expenditures that were $4.0 million lower than 2024.
77
Corporate Matters
Employee Benefit Plans
Our defined benefit pension plans, while providing a significant benefit to our employees, have historically represented a significant liability to us. At December 31, 2025, our plans are in an underfunded status of $0.1 million. We do not expect to be required to contribute to our defined benefit plans in 2026, but we may choose to do so. See Note 6 of Notes to Consolidated Financial Statements for more information. We periodically examine the defined benefit pension plans and supplemental excess retirement plan for affordability and competitiveness.
Income and Mining Taxes
Our deferred tax assets and liabilities are measured at the currently enacted tax rates that are expected to apply in years in which they are expected to be paid for or realized. Each reporting period we assess the realizability of our tax assets. In assessing the need for a valuation allowance, we evaluate all significant available positive and negative evidence, including historical operating results, estimates of future sources of taxable income, carry-forward periods available, the existence of prudent and feasible tax planning strategies and other relevant factors.
Our organizational structure requires us to have two U.S. tax groups that do not consolidate. One of those U.S. tax groups is Hecla Mining Company and subsidiaries (“Hecla U.S. Group”) which has a net deferred tax liability of $117.2 million at December 31, 2025 compared to a net deferred tax liability of $21.7 million at December 31, 2024. The increase of $95.5 million is primarily related to taxable income and the utilization of net operating losses carried forward from prior periods as well as the election of bonus depreciation and other accelerated tax deductions.
Klondex Mines Ltd (“Klondex”) is the other separate U.S. tax group (“Nevada U.S. Group”) that has a net deferred tax liability of $30.6 million and $30.8 million at December 31, 2025 and 2024, respectively.
Our net Canadian deferred tax liability at December 31, 2025 was $98.6 million, an increase of $40.8 million from the $57.8 million net deferred tax liability at December 31, 2024. The increase was due to higher Canadian taxable income.
Our Mexican net deferred tax asset at December 31, 2025 remains at zero with no change from December 31, 2024. The valuation allowance increased to $13.7 million.
As a result of the Tax Cuts and Jobs Act (“TCJA”) enacted in December 2017, under Internal Revenue Code Section 174, a requirement to capitalize and amortize research and experimental expenditures for tax years beginning after December 31, 2021 is now effective. This modification has not had a material impact.
As discussed in Note 7 of Notes to Consolidated Financial Statements, our effective tax rate for 2025 was 33%, reflecting a tax expense of $157.5 million on pre-tax income of $479.2 million, compared to 46% for 2024, reflecting a tax expense of $30.4 million on pre-tax income of $66.2 million. We are subject to income taxes in the United States and other foreign jurisdictions. The overall effective tax rate will continue to be dependent upon the geographic distribution of our earnings in different jurisdictions, the U.S. deduction for percentage depletion, fluctuation in foreign currency exchange rates and deferred tax asset valuation allowance changes. As a result, the 2025 effective tax rate varies significantly from that of 2024. The other relevant provisions of the TCJA that became effective in 2018 consist of global intangible low-taxed income tax ("GILTI"), base erosion and anti-abuse tax ("BEAT") and foreign-derived intangible income ("FDII"). Hecla U.S. Group recorded a current expense for GILTI in 2025 due to earning in foreign jurisdictions. The BEAT and FDII provisions have not had a material impact.
Reconciliation of Total Cost of Sales to Cash Cost, Before By-product Credits and Cash Cost, After By-product Credits (non-GAAP) and All-In Sustaining Cost, Before By-product Credits and All-In Sustaining Cost, After By-product Credits (non-GAAP)
The tables below present reconciliations between the most comparable GAAP measure of total cost of sales to the non-GAAP measures of (i) Cash Cost, Before By-product Credits, (ii) Cash Cost, After By-product Credits, (iii) AISC, Before By-product Credits and (iv) AISC, After By-product Credits for our operations and for the Company for the years ended December 31, 2025, 2024 and 2023.
Cash Cost, After By-product Credits, per Ounce and AISC, After By-product Credits, per Ounce are measures developed by precious metals companies (including the Silver Institute and the World Gold Council) in an effort to provide a uniform standard for comparison purposes. There can be no assurance, however, that these non-GAAP measures as we report them are the same as those reported by other mining companies.
78
Cash Cost, After By-product Credits, per Ounce is an important operating statistic that we utilize to measure each mine's operating performance. We use AISC, After By-product Credits, per Ounce as a measure of our mines' net cash flow after costs for reclamation and sustaining capital. This is similar to the Cash Cost, After By-product Credits, per Ounce non-GAAP measure we report, but also includes reclamation and sustaining capital costs. Current GAAP measures used in the mining industry, such as cost of goods sold, do not capture all the expenditures incurred to discover, develop and sustain silver and gold production. Cash Cost, After By-product Credits, per Ounce and AISC, After By-product Credits, per Ounce also allow us to benchmark the performance of each of our mines versus those of our competitors. As a silver and gold mining company, we also use these statistics on an aggregate basis - aggregating the Greens Creek and Lucky Friday mines to compare our performance with that of other silver mining companies. Similarly, these statistics are useful in identifying acquisition and investment opportunities as they provide a common tool for measuring the financial performance of other mines with varying geologic, metallurgical and operating characteristics.
We have not disclosed cost per ounce statistics for the Keno Hill operation as it is in the production ramp-up phase and has not met our definition of commercial production. See above "Consolidated Results of Operations" for our definition of commercial production. Determination of when those criteria have been met requires the use of judgment, and our definition of commercial production may differ from that of other mining companies.
Cash Cost, Before By-product Credits and AISC, Before By-product Credits include all direct and indirect operating cash costs related directly to the physical activities of producing metals, including mining, processing and other plant costs, third-party refining expense, on-site general and administrative costs, royalties and mining production taxes. AISC, Before By-product Credits for each mine also includes reclamation and sustaining capital costs. AISC, Before By-product Credits for our consolidated silver properties also includes corporate costs for general and administrative expense and sustaining capital costs. By-product credits include revenues earned from all metals other than the primary metal produced at each unit. As depicted in the tables below, by-product credits comprise an essential element of our silver unit cost structure, distinguishing our silver operations due to the polymetallic nature of their orebodies.
In addition to the uses described above, Cash Cost, After By-product Credits, per Ounce and AISC, After By-product Credits, per Ounce provide management and investors an indication of operating cash flow, after consideration of the average price received from production. We also use these measurements for the comparative monitoring of performance of our mining operations period-to-period from a cash flow perspective.
Casa Berardi reports Cash Cost, After By-product Credits, per Gold Ounce and AISC, After By-product Credits, per Gold Ounce for the production of gold, their primary product, and by-product revenues earned from silver, which is a by-product at Casa Berardi. Only costs and ounces produced relating to units with the same primary product are combined to represent Cash Cost, After By-product Credits, per Ounce and AISC, After By-product Credits, per Ounce. Thus, the gold produced at Casa Berardi is not included as a by-product credit when calculating Cash Cost, After By-product Credits, per Silver Ounce and AISC, After By-product Credits, per Silver
79
Ounce for the total of Greens Creek and Lucky Friday, our combined silver properties. Similarly, the silver produced at our other three units is not included as a by-product credit when calculating the gold metrics for Casa Berardi
In thousands (except per ounce amounts) |
|
Year Ended December 31, 2025 |
|
|||||||||||||||||
|
|
Greens Creek |
|
|
Lucky Friday |
|
|
Keno Hill |
|
|
Corporate(2) |
|
|
Total Silver |
|
|||||
Total cost of sales |
|
$ |
290,180 |
|
|
$ |
173,690 |
|
|
$ |
91,652 |
|
|
$ |
— |
|
|
$ |
555,522 |
|
Depreciation, depletion and amortization |
|
|
(55,959 |
) |
|
|
(51,055 |
) |
|
|
(19,769 |
) |
|
|
— |
|
|
|
(126,783 |
) |
Treatment costs |
|
|
948 |
|
|
|
9,734 |
|
|
|
— |
|
|
|
— |
|
|
|
10,682 |
|
Change in product inventory |
|
|
(1,258 |
) |
|
|
(6 |
) |
|
|
— |
|
|
|
— |
|
|
|
(1,264 |
) |
Reclamation and other costs |
|
|
(1,502 |
) |
|
|
(857 |
) |
|
|
— |
|
|
|
— |
|
|
|
(2,359 |
) |
Exclusion of Keno Hill cash costs (5) |
|
|
— |
|
|
|
— |
|
|
|
(71,883 |
) |
|
|
— |
|
|
|
(71,883 |
) |
Cash Cost, Before By-product Credits (1) |
|
|
232,409 |
|
|
|
131,506 |
|
|
|
— |
|
|
|
— |
|
|
|
363,915 |
|
Reclamation |
|
|
3,029 |
|
|
|
780 |
|
|
|
— |
|
|
|
— |
|
|
|
3,809 |
|
Sustaining capital |
|
|
46,362 |
|
|
|
69,316 |
|
|
|
— |
|
|
|
5,165 |
|
|
|
120,843 |
|
General and administrative |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
57,626 |
|
|
|
57,626 |
|
AISC, Before By-product Credits (1) |
|
|
281,800 |
|
|
|
201,602 |
|
|
|
— |
|
|
|
62,791 |
|
|
|
546,193 |
|
By-product credits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Zinc |
|
|
(93,495 |
) |
|
|
(28,939 |
) |
|
|
— |
|
|
|
— |
|
|
|
(122,434 |
) |
Gold |
|
|
(180,497 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(180,497 |
) |
Lead |
|
|
(24,963 |
) |
|
|
(57,036 |
) |
|
|
— |
|
|
|
— |
|
|
|
(81,999 |
) |
Copper |
|
|
(3,465 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(3,465 |
) |
Total By-product credits |
|
|
(302,420 |
) |
|
|
(85,975 |
) |
|
|
— |
|
|
|
— |
|
|
|
(388,395 |
) |
Cash Cost, After By-product Credits |
|
$ |
(70,011 |
) |
|
$ |
45,531 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(24,480 |
) |
AISC, After By-product Credits |
|
$ |
(20,620 |
) |
|
$ |
115,627 |
|
|
$ |
— |
|
|
$ |
62,791 |
|
|
$ |
157,798 |
|
Divided by silver ounces produced |
|
|
8,725 |
|
|
|
5,261 |
|
|
|
|
|
|
|
|
|
13,986 |
|
||
Cash Cost, Before By-product Credits, per Silver Ounce |
|
$ |
26.64 |
|
|
$ |
25.00 |
|
|
|
|
|
|
|
|
$ |
26.02 |
|
||
By-product credits per ounce |
|
|
(34.66 |
) |
|
|
(16.34 |
) |
|
|
|
|
|
|
|
|
(27.77 |
) |
||
Cash Cost, After By-product Credits, per Silver Ounce |
|
$ |
(8.02 |
) |
|
$ |
8.66 |
|
|
|
|
|
|
|
|
$ |
(1.75 |
) |
||
AISC, Before By-product Credits, per Silver Ounce |
|
$ |
32.30 |
|
|
$ |
38.32 |
|
|
|
|
|
|
|
|
$ |
39.05 |
|
||
By-product credits per ounce |
|
|
(34.66 |
) |
|
|
(16.34 |
) |
|
|
|
|
|
|
|
|
(27.77 |
) |
||
AISC, After By-product Credits, per Silver Ounce |
|
$ |
(2.36 |
) |
|
$ |
21.98 |
|
|
|
|
|
|
|
|
$ |
11.28 |
|
||
80
In thousands (except per ounce amounts) |
|
Year Ended December 31, 2025 |
|
|||||||||
|
|
Casa Berardi |
|
|
Other(4) |
|
|
Total Gold and Other |
|
|||
Total cost of sales |
|
$ |
206,720 |
|
|
$ |
38,574 |
|
|
$ |
245,294 |
|
Depreciation, depletion and amortization |
|
|
(33,234 |
) |
|
|
— |
|
|
|
(33,234 |
) |
Treatment costs |
|
|
169 |
|
|
|
— |
|
|
|
169 |
|
Change in product inventory |
|
|
(2,774 |
) |
|
|
— |
|
|
|
(2,774 |
) |
Reclamation and other costs |
|
|
(1,283 |
) |
|
|
— |
|
|
|
(1,283 |
) |
Exclusion of Other costs |
|
|
— |
|
|
|
(38,574 |
) |
|
|
(38,574 |
) |
Cash Cost, Before By-product Credits (1) |
|
|
169,598 |
|
|
|
— |
|
|
|
169,598 |
|
Reclamation and other costs |
|
|
1,283 |
|
|
|
— |
|
|
|
1,283 |
|
Sustaining capital |
|
|
14,995 |
|
|
|
— |
|
|
|
14,995 |
|
AISC, Before By-product Credits (1) |
|
|
185,876 |
|
|
|
— |
|
|
|
185,876 |
|
By-product credits: |
|
|
|
|
|
|
|
|
|
|||
Silver |
|
|
(888 |
) |
|
|
— |
|
|
|
(888 |
) |
Total By-product credits |
|
|
(888 |
) |
|
|
— |
|
|
|
(888 |
) |
Cash Cost, After By-product Credits |
|
$ |
168,710 |
|
|
$ |
— |
|
|
$ |
168,710 |
|
AISC, After By-product Credits |
|
$ |
184,988 |
|
|
$ |
— |
|
|
$ |
184,988 |
|
Divided by gold ounces produced |
|
|
91 |
|
|
|
|
|
|
91 |
|
|
Cash Cost, Before By-product Credits, per Gold Ounce |
|
$ |
1,861 |
|
|
$ |
— |
|
|
$ |
1,861 |
|
By-product credits per ounce |
|
|
(10 |
) |
|
|
— |
|
|
|
(10 |
) |
Cash Cost, After By-product Credits, per Gold Ounce |
|
$ |
1,851 |
|
|
$ |
— |
|
|
$ |
1,851 |
|
AISC, Before By-product Credits, per Gold Ounce |
|
$ |
2,039 |
|
|
|
|
|
$ |
2,039 |
|
|
By-product credits per ounce |
|
|
(10 |
) |
|
|
— |
|
|
|
(10 |
) |
AISC, After By-product Credits, per Gold Ounce |
|
$ |
2,029 |
|
|
$ |
— |
|
|
$ |
2,029 |
|
81
In thousands (except per ounce amounts) |
|
Year Ended December 31, 2025 |
|
|||||||||
|
|
Total Silver |
|
|
Total Gold and Other |
|
|
Total |
|
|||
Total cost of sales |
|
$ |
555,522 |
|
|
$ |
245,294 |
|
|
$ |
800,816 |
|
Depreciation, depletion and amortization |
|
|
(126,783 |
) |
|
|
(33,234 |
) |
|
|
(160,017 |
) |
Treatment costs |
|
|
10,682 |
|
|
|
169 |
|
|
|
10,851 |
|
Change in product inventory |
|
|
(1,264 |
) |
|
|
(2,774 |
) |
|
|
(4,038 |
) |
Reclamation and other costs |
|
|
(2,359 |
) |
|
|
(1,283 |
) |
|
|
(3,642 |
) |
Exclusion of Keno Hill cash costs (5) |
|
|
(71,883 |
) |
|
|
— |
|
|
|
(71,883 |
) |
Exclusion of Other costs |
|
|
— |
|
|
|
(38,574 |
) |
|
|
(38,574 |
) |
Cash Cost, Before By-product Credits (1) |
|
|
363,915 |
|
|
|
169,598 |
|
|
|
533,513 |
|
Reclamation and other costs |
|
|
3,809 |
|
|
|
1,283 |
|
|
|
5,092 |
|
Sustaining capital |
|
|
120,843 |
|
|
|
14,995 |
|
||||