HL 10-K & 10-Q changes, risk factors and insider trading

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 7,12, 2025,2026, the closing prices for silver, gold, lead, zinc and copper were $31.78$83.52 per ounce, $2,860.10$5,043.15 per ounce, $0.90$0.88 per pound, $1.28$1.54 per pound, and$and 4.16$5.80 per pound, respectively.

We determined there were no impairmentsimpairment was required for atest triggering eventevents identified during 2024.2025. For more discussion, see the below 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. Such write-downs may adversely affect our results of operations and financial condition.” 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.

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 lossesloss of $84.2 million and $37.3 million in 2023 and 2022, respectively.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.

valuation of business combinations or divestitures;

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.

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 forwardrisk contractmanagement programs.activities.

Our ability to recognize the benefits of deferred tax assets related to net operating loss carryforwards and other items is dependentdependent, among other things, on future cash flows generating taxable income.

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. In addition, we have a supplemental excess retirement plan which was funded as of December 31, 2024. 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 to a greater extent than anticipated. See Note 6 of Notes to Consolidated Financial Statements for more information on our pension plans.

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 Greens Creek unit hasmines periodically experiencedexperience). These latter twoprecipitation 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 below 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."

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 closures or the unavailability of smelterssuch and/or refining facilities for other reasons.facilities.

For the fiscal year ended December 31, 2024,2025, our three largest customers accounted for approximately 28%,25%, 19%23% and 17%,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 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.

unfavorable currency fluctuations, particularly in the exchange rate between the U.S. dollar and the Canadian dollar and Mexican Peso;

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”). We have mineral projects in Quebec, the Yukon and British Columbia that are or may be in areas with a First Nations presence. 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 toto, traditional territory,competing title claims and/or claims of cultural significance, and such claims and the attendant obligations of the federal government to those tribal communities and stakeholders may affect our current and future operations.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, British Columbia, the YukonAlaska and Quebec.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.

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, recentlyoccasionally experienced a turbine failure at its hydroelectric plant in Whitehorse. That failure, combined with cold temperatures in the Yukon, has caused Yukon Energy to reducereduces power to Keno Hill, which does not have sufficient backup generation capacity to fully power the mine and the mill. AsThis a result, on several occasions in late 2024can, and earlyhas, 2025,led Keno Hill has hadto insufficient power to run the mine and the mill. Although such power disruptions have not yet had a material impact on Keno Hill’s operations, we expect that power interruptions will continue throughout the cold weather months of 2025 until the turbine is repaired by Yukon Energy (currently expected in summer 2025), and such interruptionsthey could have a material adverse impact on the financial condition of and results of operations at Keno Hill.

See the risk factor below,factor, “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. Such write-downs may adversely affect our results of operations and financial condition.

We identified a triggering event at Casa Berardi due to the operation's gross loss for the year ended December 31, 2024. Although we concluded the carrying value assessment indicated no impairment at the time the analysis was undertaken, each analysis was, and any future analysis will be, based on estimates, judgments and assumptions which may turn out to be incorrect or inaccurate. Though production remains suspended at our Nevada assets, we did not identify a triggering event for our Nevada long-lived assets in 2024,2025, as our budgeted exploration program for 20252026, due to positive results, has significantly increased compared to the level of exploration expenditures incurred in 2024.2025.

AtAs Nevada,an mine production at Fire Creek continued through the first half of 2021, and was then suspended as we continue studies of hydrology, mining and milling. Revenues exceeded total capital and production costsexample, in 2020 and 2021. However, we anticipate incurring care-and-maintenance costs in the future unless and until we have enough exploration success and development to resume mining operations. 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 2024,2025, permitting and other delays and the lack of energy provided by Yukon Energy have prevented us from declaring "commercial production." High silver prices have buoyed Keno Hill's performance and , despite not reaching anticipated"commercial production" levels,yet, whichKeno Hill, was profitable in 2025. However, should silver prices fall or we estimateexperience issues like we did in the past, such as 130,000sustained ouncespower duringoutages 2024.imposed Further,by the mine has required capital expenditures higher than we anticipated. As a result of the foregoing factors and their economic impacts,utility, it is possible that we may have to suspend production and other operations at Keno Hill and place Keno Hillit on care and maintenance until such time as conditions improve sufficiently to allow us to approach or reach profitability at the site.improve. See the risk factors above,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 traditional territory,competing title claims and/or claims of cultural significance, and such claims and the attendant obligations of the federal government to those tribal communities and stakeholders may affect our current and future operations,” "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. Such write-downs may adversely affect our results of operations and financial condition.”

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 above,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 toto, traditional territory,competing title claims and/or claims of cultural significance, and such claims and the attendant obligations of the federal government to those tribal communities and stakeholders may affect our current and future operationssignificance” 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.”

U.S. mines like those at 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 below 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.”

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 factor above,factors “We are required to obtain governmental permits and other approvals in order to conduct mining operations” and the risk factor below, “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. 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. 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 below,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 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.”

At Casa Berardi, if we continue to own it, obtaining new or modified permits and modifications to the mine license area will be required to successfully develop the planned open pit extensions at the site and for long term management of tailings and waste rock generated through mining operations.

At Hollister in Nevada, state and federal approvals will be required for waste rock and underground water management from development of the Hatter Graben or other mine expansions. This permitting will require coordination with the Western Shoshone who have long-standing ties to this land area. Other potential projects in Nevada, including the Midas and Aurora properties, would require additional state and potentially federal permits before they could be returned to production.

At Keno Hill, new permits or permit modifications will be required for it to reach future projected production necessary for the operation to become sustainably profitable. Such modification to existing permits or the requirement for new permits could be a lengthy process, and there can be no assurance we will receive any such modified or new permits. See the risk factors above, “Certain of our mines and exploration properties are located on land that is or may become subject to traditional territory, title claims and/or claims of cultural significance, and such claims and the attendant obligations of the federal government to those tribal communities and stakeholders may affect our current and future operations” and “Legal challenges could prevent our projects in Montana from ever being developed.”

See the risk factors above,factors, “Certain of our mines and exploration properties are located on land that is or may become subject toto, traditional territory,competing title claims and/or claims of cultural significance, and such claims and the attendant obligations of the federal government to those tribal communities and stakeholders may affect our current and future operationssignificance” and “Legal challenges could prevent ourexploration projects infrom Montanabeing developed or existing mines from everfuture being developed.expansion.”

We arecould currentlybe involvedsubject in ongoingto legal disputes that may materially adversely affect us.

There are several ongoing legal disputes in which we are involved, including a putative class action lawsuit filed against us and certain current and former directors and officers involving our Nevada Operations. Further, weWe 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,compliance and (iv) safety conditions or other matters at our mines. The outcomesoutcome of theseany pending and potentialsuch claims arewould 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.

We are subject to significant environmental obligations. At December 31, 2024,2025, we had accrued $124.9$202.3 million as a provision for environmental and asset retirement obligations. We cannot assurebe yousure 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.

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 aremay seekingcommence to exploreexploration at the Libby Exploration project, and possibly develop depending on the results of exploration activities, and may in the future seek to explore or develop the Rock Creek project. While both a salmon initiative in Alaska and a water treatment initiative in Montana were defeated by voters in November 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.

Hecla Mining Company stands as Norththe America's leadingpremier silver producer, with a rich heritage dating back to 1891. Our operations at Greens CreekCreek, Lucky Friday and LuckyKeno Friday,Hill producedcombined 45%to produce 37% of 20232024 silver production in the U.S. silverand production,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 threefour core pillars:

ResourceRecent developmentDevelopments

Strong Production - Delivered 16.217.0 million ounces of silver and 141,923150,509 ounces of gold. Gold production benefited from higher grades and recoveries at Greens Creek and the continuation of underground mining at Casa Berardi. See Consolidated Results of Operations below for information on total cost of sales, as well as cash costs and AISC, each after by-product credits, per silver and gold ounce for 2024,2025, 20232024 and 2022.2023.

Keno Hill SuccessConsistent Production - Produced 2.83.0 million ounces of silver, meeting production guidance of 2.72.9 - 3.03.1 million ounces, despitewhich reducedrepresents fourtha quarter9% throughputincrease duefrom the prior year, while continuing to powerimprove conservationthe measuresdeveloped bystate Yukonof Energythe Corp.mine and invest in infrastructure needed to advance toward commercial production.

Revenue Generation - Achieved record sales of $929.9more million.than $1.4 billion.

Shareholder Returns - Generated net income applicable to common stockholders of $35.3$321.2 million and returned $24.9$10.4 million to our common stockholders through dividend payments. Contributing to net income was $50.0 million in insurance proceeds related to the Lucky Friday fire.

Continued Investment in Operations - Made capital expendituresinvestments of approximately $214.5$252.4 million, including $47.8$54.6 million at Greens Creek, $49.6$72.9 million at Lucky Friday, $60.7$61.5 million at Casa Berardi and $54.9$58.2 million at Keno Hill.

Our average realized prices for silver, gold and zinc increased in both 2025 and 2024 compared to 2023 while lead decreased. Our average realized silver, gold2024 and lead increased while zinc decreased in 2023 compared to 2022.respectively. See the Consolidated Results of Operations section below for information on our average realized metals prices for 2024,2025, 20232024 and 2022.2023. Lead and zinc represent important by-products at all our Greenssilver Creek and Lucky Friday segments,operations, and gold is also a significant by-product at Greens Creek. Copper is a minor by-product credit at Greens Creek, in addition to lead and zinc at Keno Hill.Creek.

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

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

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

We strive to achieve excellent mine safety and health performance.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 seekstrive tofor implementcontinuous reasonableimprovement best practices with respect toin mine safety and emergency preparedness.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.

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, 2024,2025, $29.2no millionamount ofwas drawn on the facility was utilized,facility, with $6.2$6.7 million being used for letters of credit, $23.0no millionamount was drawn on the facility, leaving approximately $195.8$218.3 million available for borrowing.

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 20242025, 2024, and 2023, we recorded net positive price adjustments to provisional settlements of $51.0 million, $22.9 million and $18.2 million, respectively, and $20.8 million in net negative price adjustments to provisional settlements in 2022.respectively. The price adjustments related to silver, gold, zinc and lead contained in our concentrate sales were partially offset by gains and losses on forwardderivative contractsinstruments 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.

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.

For the year ended December 31, 2025 and 2024, we reported net income applicable to common stockholders of $35.3$321.2 million comparedand to$35.3 million, respectively, and a net loss of $84.8 million and net loss of $37.9 million in 2023 and 2022, respectively.2023. The following factors contributed to those differences:

Exploration and pre-development expense was $27.7 million, $27.3 million,million and $32.5 million and $46.0 million in 2024,2025, 20232024 and 2022,2023, respectively. In 2024 exploration and pre-development expense decreased by $5.2 millionmillion, compared to 2023, as exploration activities were focused primarily at Greens Creek and Keno Hill, with additional pre-development work at the Libby Exploration project.

TheWhile ramping up an operation, costs incurred atto Kenogenerate Hillrevenue during allthe periodsramp wereup phase in excess of the revenue generated, are reclassified to ramp itup upand suspension costs on our statement of operations, which amounted to full$26.8 production.million Theand costs$29.8 incurredmillion in 2024 and 2023, respectively. Operations at Lucky Friday were suspended from August 2023 to January 9, 2024, due to a fire in 2024the (secondary egress. Costs incurred during this period amounted to $2.2 million) were to ramp it up to full production, while in 2023,and $25.5 million relatedduring to2024 theand suspension2023, ofrespectively. productionCasa followingBerardi the underground fire that occurred in the #2 shaft.incurred $2.2 million was incurred at Casa Berardi due itsas operations beingwere suspended for 20 days in June, 20232023, due to Quebec wildfires. The costs incurred at San Sebastian and Nevada are holding costs as all operations at these sites were suspended during these periods.

Other operating expense was $0.2 million in 2025, compared to other operating income wasof $45.5 million,million and $1.4 million in 2024 and an2023, respectively. Within 2025 other operating expense of $6.3$0.2 million inare 2024,$5.5 2023million andof 2022,insurance respectively.proceeds relating to Casa Berardi. The income in 2024 is primarily related to the Lucky Friday business interruption insurance proceeds of $50 million related to the aforementioned fire. The income in 2023 compared to the expense in 2022 was primarily due to the receipt of $5.9 million in insurance proceeds in May related to an insurance coverage lawsuit.

Fair value adjustments, net resulted in a gain of $12.5 million, loss of $2.2 million, and a gain of $2.9 million, and losses of $4.7 million in 2024,2025, 20232024 and 2022,2023, respectively. The components for each period are summarized in the following table (in thousands):

Net foreign exchange loss of $5.8 million in 2025, compared to a gain of $7.6 million in 2024,2024 compared toand a loss of $3.8 million and gain of $7.2 million in 2023 and 2022,2023, respectively, on translation of non US our monetary assets and liabilities at Casa Berardi, Keno Hill and San Sebastian.

A reconciliation of these non-GAAP measures to total cost of sales, the most comparable GAAP measure, can be found below in Reconciliation of Total Cost of Sales (GAAP) to Cash Cost, Before By-product Credits and Cash Cost, After By-product Credits (non-GAAP) and All-In Sustaining Cost, Before By-product Credits and All-In Sustaining Cost, After By-product Credits (non-GAAP). At Greens Creek, gold, zinczinc, lead and leadcopper are considered to be by-products of our silver production, and the values of those metals therefore offset operating costs within our calculations of Cash Cost and AISC, After By-product Credits, per Silver Ounce.

Capital additions increased by $4.3$6.8 million in 20242025 to $47.8$54.6 million compared to 2023.2024. Significant components of the 20242025 capital additions were $15.1 million on mobile equipment, a $5.3 million increase over 2023, $16.9$17.9 million on mine and primary ore access development, $6.5$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, and $3.8 million towards a concentrator.drilling.

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 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.

Item 1A. – Risk Factors of our 2025 Form 10-K set forth information relating to important risks and uncertainties that could materially adversely affect our business, financial conditioncondition, or operating results.

In this Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”), “Hecla,” “the Company,” “we,” “us”, and “our” refer to Hecla Mining Company and its consolidated subsidiaries, except where the context requires otherwise. You should read this discussion in conjunction with our consolidated financial statements, the related MD&AA, and the discussion of our Business and Properties in our Annual Report on Form 10-K for the year ended December 31, 2025 ("2025 Form 10-K"), filed with the United States Securities and Exchange Commission (the “SEC”). The results of operations reported and summarized below are not necessarily indicative of future operating results (refer to “Forward-Looking Statements” above for further discussion). References to “Notes” are Notes included in our Notes to Condensed Consolidated Financial Statements (Unaudited). Throughout this MD&A, all references to income or losses per share are on a diluted basis.

Hecla Mining Company stands as North America's premier silver producer, with a rich heritage dating back to 1891. Our operations at Greens Creek, Lucky FridayFriday, and Keno Hill combined to produce 37% of total 2025 silver production in the U.S. and Canada, complemented by significant gold production from Greens Creek and our former Casa Berardi operation.Creek. Our strategic positioning in the stable jurisdictions of the U.S. and Canada provides us with distinct operational advantages and reduced political risk compared to our global peers. Our operational and strategic framework centers on four core pillars:

Accounts receivable related to working capital adjustments of $16.6 million of which $15.6 million was received during April and the remaining $1.0 million is expected to be received in May 65,757,265 Orezone common shares valued at $106.1 million on closing Deferred cash consideration ("Deferred Cash Consideration") with a fair value of $57.1 million for the cash payments of $30 million and $50 million to be received 18 months and 30 months after closing, respectively Contingent cash consideration ("Contingent Cash Consideration") with a fair value of $35.9 million for a total of up to $241 million of undiscounted payments consisting of:

A fair value of $3.3 million for two annual gold-price related payments of $5 million each should the average gold price exceed $4,200/oz for the first and second years following closing A fair value of $9.9 million for two contingent payments of $10 million each due upon issuance of certain permits to open pit mine two additional identified orebodies A fair value of $22.7 million for certain future gold production-based royalty payments with an undiscounted value of up to $211 million ($80/ounce for the first 500,000 ounces, then $180/ounce thereafter from future open pit operations) Orezone has a set-off right to reduce the unpaid balance of the Deferred Contingent Cash or the Contingent Cash Consideration payments by 50% of the amount by which the financial assurance required by the Quebec government under the updated Casa Berardi closure plan exceeds $150 million, excluding increases caused by Orezone's post-closing actions. OurThe current estimate of thatclosure excess amount has been included in determining the fair valuesvalue of the Deferred Cash consideration and Contingent Cash Consideration for the first gold-priced payment.Consideration.

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

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

FirstSecond Quarter 2026 Highlights

Production - We produced 3.94.2 million ounces of silver at our primary silver operations,silver, compared to 4.14.5 million ounces of silver in the firstsecond quarter of 2025.2025, Atprimarily due to lower throughput and grades at Greens Creek,Creek. weWe produced 12,88614,199 ounces of gold,gold at Greens Creek, a decrease compared to 13,75917,750 ounces of gold produced in the firstsecond quarter of 2025, driven primarily by lower throughput.throughput and grades.

Revenue Generation - Generated sales of $411.4$333.9 million, a 100%52% increase over the firstsecond quarter of 2025.

Net incomeIncome from continuing operations and shareholder returns - Generated net income from continuing operations of $164.7$117.9 million, compared to $24.3$26.9 million in the firstsecond quarter of 2025 and returned $2.5 million in dividends to common stockholders.

Our financial results vary as a result of fluctuations in market prices primarily for silver and gold and, to a lesser extent, gold, zinc, leadlead, and copper. World market prices for these commodities have fluctuated historically and are affected by numerous factors beyond our control. To date, tariffs have not materially impacted our financial results. However, future tariffs or other global trade restraints could impact our performance. Historically our US operations have had significant sales into China and Canada, and each of those countries is or could be subject to tariffs, and each has or may retaliate in kind. Notwithstanding these recent developments, we believe that the outlook for precious metals fundamentals is favorable due to macro-economic factors such as lower interest rate expectations, geopolitical uncertainty and global growth expectations, which have resulted in significant volatility in the financial and commodities markets, including the precious metals market. See Item 1A. “Risk Factors” contained in Part I of our 2025 Form 10-K for further discussion. Because we cannot control the price of our products, except to the extent we have entered into hedging transactions, the key measures that management focuses on in operating our business are production volumes, payable sales volumes, Cash Cost, After By-product Credits, per Ounce (non-GAAP) and All-In Sustaining Cost, After By-product Credits, per Ounce (“AISC”) (non-GAAP), operating cash flows, capital expenditures,investments, free cash flow (non-GAAP), and adjusted EBITDA (non-GAAP). The average realized prices for all metals sold by us continued to exhibit significant volatility during the period. We have also experienced significant cost inflation across our operations, principally associated with higher energy prices, increased costs for other consumables such as reagents, explosives andexplosives, steel, and higher labor and contractor costs.

Total sales for the three and six months ended MarchJune 31,30, 2026 and 2025 were as follows:

Environmental remediation services revenue is generated by performing remediation work in the historical Yukon Territory mining district on behalf of the Canadian government. The scope and estimated cost of all work is agreed to in advance by the Canadian government, and the expenses incurred are passed through to the government for reimbursement with minimal marginoperating income generated by us in performing this work.

Total metal sales for the three and six months ended MarchJune 31,30, 2026 and 2025, and the approximate variances attributed to differences in metals prices, sales volumesvolumes, and smelter terms, were as follows:

The fluctuation in sales for the three and six months ended MarchJune 31,30, 2026 compared to the same periods in 2025 was primarily due to the following:

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

Average realized prices typically differ from average market prices primarily because concentrate sales are generally recorded as revenues at the time of shipment at forward prices for the estimated month of settlement, which differ from average market prices. Due to the time elapsed between shipment of concentrates and final settlement with the customers, we must estimate the prices at which sales of our metals will be settled. Previously recorded sales are adjusted to estimated settlement metals prices each period through final settlement. We recorded net positivenegative price adjustments to provisional settlements of $0.8$13.1 million and $6.9$6.2 million for the three and six months ended MarchJune 31,30, 20262026, respectively, (three and 2025,six respectively.months ended June 30, 2025: $4.2 million and $11.1 million positive adjustments, respectively). The price adjustments related to silver, gold, zinc, leadlead, and copper contained in our concentrate shipments were partially offset by gains and losses on forward contracts and collars for those metals. See Note 98 of Notes to Condensed Consolidated Financial Statements (Unaudited) 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 forwardmetals derivative contracts and collars discussed abovebelow) by the payable quantities of each metal included in concentrate, dorédoré, and carbon material shipped during the period.

HigherThe quantitiespositive effect of higher metal prices was partially offset by lower sales volumes of all metals sold from continuing operations, except lead and copper,lead, during the three monthsand six month period ended MarchJune 31,30, 2026 compared to the comparable 2025 period. See The Greens Creek Segment, The Lucky Friday Segment, and The Keno Hill Segment sections below for more information on metal production and sales volumes at each of our operating segments. Total metals production and sales volumes for each period are shown in the following table:

Sales, totalcosts costapplicable ofto sales, depreciation, depletion and amortization, gross profit (loss),profit, Cash Cost, After By-product Credits, per Ounce (“Cash Cost”) (non-GAAP) and AISC (non-GAAP) at our operating segments for the three and six months ended MarchJune 31,30, 2026 and 2025 were as follows (in thousands, except for Cash Cost and AISC):

A reconciliation of these non-GAAP measures to totalcosts costapplicable ofto sales, the most comparable GAAP measure, can be found below in Reconciliation of TotalCosts CostApplicable ofto Sales (GAAP) to Cash Cost, Before By-product Credits and Cash Cost, After By-product Credits (non-GAAP) and All-In Sustaining Cost, Before By-product Credits and All-In Sustaining Cost, After By-product Credits (non-GAAP).

For the three and six months ended MarchJune 31,30, 2026, Other includes sales of $4.7$10.8 million (2025: $6.6 million) and total$15.5 costmillion of(2025: $13.7 million) and costs applicable to sales of $4.9$10.3 million (2025: $6.6 million) and $15.2 million (2025: $13.7 million), respectively, from our environmental remediation services in the Yukon. For the three months ended March 31, 2025, Other includes sales and total cost of sales of $7.1 million.

While revenue from gold, zinc, lead, copper and goldcopper by-products is significant, we believe that identification of silver as the primary product of Greens Creek, Lucky FridayFriday, and Keno Hill is appropriate because:

the Greens Creek, Lucky FridayFriday, and Keno Hill deposits are massive sulfide deposits containing an unusually high proportion of silver; and in most of their working areas, Greens Creek, Lucky FridayFriday, and Keno Hill utilize selective mining methods in which silver is the metal targeted for highest recovery.

Accordingly, we believe the identification of gold, lead, zinczinc, and copper as by-product credits at Greens Creek, Lucky FridayFriday, and Keno Hill is appropriate because of their lower economic value compared to silver and due to the fact thatbecause 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, goldgold, and copper at Greens Creek, Lucky Friday, and Keno Hill to be by-products of our silver production, the values of these metals 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 has not met our definition of commercial production. We define an operation as being in commercial production upon achievement of the following criteria:

For the three months ended MarchJune 31,30, 2026,2026 we reported net income from continuing operations of $164.7$117.9 million (2025: $24.3$26.9 million) and a net lossincome applicable to common stockholders of $19.2$117.7 million (2025: - $28.7$57.6 million). Net loss applicable to common stockholders is lower than net income from continuing operations, due to the recognition of a loss from discontinued operations of $183.7 million, primarily due to the loss of $192.5 million on the sale of Hecla Quebec. The following were the significant drivers of the increase in net income from continuing operations:

ConsolidatedVariances in gross profit increasedat byour $184.6operations million.as illustrated in the table above. See The Greens Creek Segment, The Lucky Friday Segment, and The Keno Hill Segment sections below for a discussion on the key drivers by operation.

Interest expense decreased by $5.7$8.5 million primarily due to lower total debt levels compared to the same period of 2025.2025 following redemption of $263 million and $212 million of Senior Notes in April 2026 and August 2025 respectively.

Other income increased by $2.6$5.7 million primarily due to higher interest earned on the increased cash position and accretion income on our deferred cash consideration received as a resultpart of athe higherconsideration cashfor position.the Hecla Quebec sale.

IncomeGeneral and mining taxadministrative expense increased by $35.3$2.6 million due to higherincreased taxable income generated primarily by our US operations.headcount.