Midas-Hollister Districts Demonstrate Potential For Epithermal Gold-Silver Discoveries & Deeper Mineralization

COEUR D'ALENE, ID - Hecla Mining Company reported that Keno Hill, in Yukon territory, posted its first profitable quarter under Hecla ownership, delivering $1.0 million of gross profit, helped by the elevated silver price. Confirmed and expanded mineralization at Keno Hill in the Bermingham Deposit through continued drilling. The mine continues to advance work to achieve commercial production status.

The Company generated record sales of $261.3 million, an increase of 5% over the prior quarter. Achieved record Adjusted EBITDA of $90.8 million during the quarter, $357.1 million during the last 12 months. Produced 4.1 million ounces of silver and 34,232 ounces of gold.

A new quarterly milling record established at the Lucky Friday, in Idaho, of 108,745 tons, beating the prior record set in the fourth quarter 2024.

Increased Keno Hill production to 772,430 ounces of silver, growing 23% over the fourth quarter of 2024.

"This quarter demonstrates the strength and growth potential of our business, with record sales of $261.3 million representing a 5% increase over the prior quarter," said Rob Krcmarov, President & Chief Executive Officer. "With record Adjusted EBITDA of $90.8 million this quarter and $357.1 million over the past year, we have improved our net leverage ratio to 1.5x, reinforcing our solid financial foundation. Our operational excellence continues to shine through, with Lucky Friday setting a new quarterly milling record and Keno Hill increasing silver production by 23% over the prior quarter. Looking ahead, we're focusing on four key strategic pillars: achieving operational excellence through standardized systems and continuous improvement; optimizing our portfolio through strategic reviews and focus capital allocation on high-return projects or those that enhance environmental or safety performance or reduce risk; intensifying our focus on financial discipline with a rigorous capital allocation framework; and leveraging our position as North America's largest silver producer to meet growing demand from green technology markets."

Gross profit was $74.0 million, an increase of 8% over the prior quarter. The increase is attributable to (i) Greens Creek, in Alaska, gross profit increasing by $4.4 million due to higher realized prices for precious metals, partially offset by lower sales volumes of all metals except zinc, (ii) Lucky Friday, in Idaho, gross profit increased by $1.6 million due to higher realized silver prices and volumes partially offset by higher production costs, and (iii) Keno Hill gross profit of $1 million (first profitable quarter under Hecla's ownership), reflecting the benefit of higher realized silver prices on 2% lower sales volumes over the prior quarter. At Casa Berardi, in Quebec, the gross profit decreased by $2.1 million as the benefit of higher realized gold prices was offset by lower gold sales volumes and higher production costs.

The Greens Creek Mine produced 2.0 million ounces of silver and 13,759 ounces of gold. Silver production increased 5% over the prior quarter due to a 10% increase in silver grade milled, partially offset by lower tons milled. Zinc and lead production declined 3% and 6% respectively, primarily due to lower mill throughput. The silver grade milled averaged higher month-over-month throughout the quarter, averaging nearly 13 ounce per ton (opt) in March. Backfill and development activities also continued to improve throughout the quarter. Production guidance for 2025 at Greens Creek is maintained at 8.1-8.8 million ounces of silver, 44.0-48.0 thousand ounces of gold, or 18.0-19.5 million silver equivalent ounces when factoring in all metals (silver, gold, lead, zinc and copper). Exploration drilling during the first quarter in the 200 South Zone expands mineralization an additional 400 feet along plunge to the south and is now the southern-most high-grade drillhole intercept. While this interval is narrow, the high-grade silver, zinc, and lead mineralization continues to highlight the prospectivity of the region. At Keno Hill, underground drilling continues to confirm and expand mineralization in the Bermingham Deposit.

The Lucky Friday Mine set a new quarterly milling record of 108,745 tons, beating the record set in the prior quarter. Silver production was 1.3 million ounces, flat over the prior quarter. Lead and zinc production was 8,480 tons and 3,681 tons, respectively, declining 2% and 3% respectively over the prior quarter, both impacted by modestly lower milled grades. There is no change to the 2025 production guidance for Lucky Friday, maintaining silver production guidance of 4.7-5.1 million ounces of silver, or 8.0-8.5 million silver equivalent ounces when factoring in all metals (silver, lead and zinc).

Keno Hill produced 772,430 ounces of silver, a 23% increase over the prior quarter due to higher mill throughput. Mill throughput for the first quarter averaged 305 tons per day (tpd), remaining below the permitted capacity of 440 tpd. The mill continues to rely on the existing ore stockpile as the mine continues to ramp up to higher tonnage rates (first quarter ore tons mined averaged 259 tpd). Work continues to advance to bring the asset into a state of commercial production.

Mill throughput during the quarter was impacted by power curtailments by Yukon Energy Corporation ("YEC"), which was carrying out powerline maintenance. YEC also experienced a turbine failure at its hydroelectric plant in Whitehorse in late October 2024, which is scheduled to be repaired in August of 2025. Power curtailment by YEC at Keno Hill has improved in 2025, with the previously reported eight days of operational stoppage remaining unchanged through quarter end. Further disruptions are not expected during warmer weather months, during which time it is expected YEC's generating demand is lower. The Company estimates the power curtailments during planned August YEC maintenance downtime could lower production by approximately 90,000 ounces of silver in the third quarter, which was previously known and factored into our initial 2025 guidance released in February. Keno Hill is expected to have 3-6 days of planned maintenance in the second quarter, which is the historical norm for quarterly maintenance downtime at the mine.

Keno Hill has generated marginal profits for the company 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, is expected to generate positive free cash flow. The Company estimates that to be sustainably profitable at our current long-range metals prices (which are significantly lower than current prices), throughput rates would need to reach approximately 500 to 600 tons per day, due to Keno Hill's high fixed costs. 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). Achieving 440 or higher tons per day would require ore from both the Bermingham deposit and the lower grade Flame & Moth deposit, significant capital expenditures, obtaining permits, executing projects, mine development and maintaining community support. If any one of these were not to occur, particularly if prices were to decrease from current prices, Keno Hill as currently configured would not be profitable, and placing the operation on care and maintenance would be an option. Underground drilling continues to confirm and expand mineralization in the Bermingham Deposit.

At Casa Berardi production is 20,473 ounces of gold, a decrease of 2% over the prior quarter, due to lower underground grades mined and total milled tons. Mined tons (ore and waste) in the 160 pit decreased 20% over the prior quarter, with operating costs 2% lower than the prior quarter. The stripping ratio for the 160 pit is expected to decline in the second half of 2025, and is expected to further reduce costs.

Casa Berardi is advancing toward a more streamlined and efficient surface-only operation, with plans to focus exclusively on the 160 pit by mid-2025. This transition follows the successful extraction of higher-margin stopes from the west underground mine, positioning the Company for continued productivity and cost-effective mining. Currently there is no change to the Casa Berardi production guidance of 76.0-82.0koz of gold production in 2025.

Casa Berardi is expected to produce gold from the 160 pit and associated stockpiles until 2027.

Given the expected hiatus in future production and the uncertainty surrounding permitting and timing of construction of the new open pits, the Company continues to consider strategic alternatives for Casa Berardi.

Increased exploration spend is anticipated in the second and third quarters as exploration ramps-up during the warmer months. At Greens Creek, two helicopter supported surface core drills are planned to test near mine targets located within potential drifting distance from the current underground infrastructure. At Keno Hill, three surface core drills are focused on expanding resources in the Bermingham Deep target area.

Exploration activities at Midas in Nevada commenced with two surface core drills testing multiple high-priority targets. These targets are strategically positioned to test down-dip extensions of mapped or inferred structures within an expansive nine-square-mile envelope of high-level favorable alteration. Recent sampling has identified several anomalies coincident with favorable structural settings, significantly enhancing our targeting precision. The Company's combined Midas and Hollister districts located within the Northern Nevada Rift and along the northern extension of the Carlin Trend continues to demonstrate potential for both epithermal gold-silver discoveries and deeper Carlin-type mineralization in areas previously unexplored.

The Libby Exploration Project in Montana was included in the Trump Administration’s announcement of advancing critical mineral projects under Executive Order 14241, Immediate Measures to Increase American Mineral Production. As a result, the Project has been placed on the Federal Permitting Improvement Steering Council’s FAST-41 permitting dashboard, which will ensure the environmental review and authorizations schedule for the project is publicly available and allows all stakeholders to benefit from increased transparency. The project is a large silver and copper deposit located 50 miles from the Company’s Lucky Friday mine. A Plan of Operations is currently under an Environmental Assessment review by the U.S. Forest Service, which review is expected to be completed later this year. Upon successful completion of that process, the Company would have the authority to dewater and rehabilitate approximately 7,000 feet of the existing 14,000 foot Libby Adit, extend the adit by approximately 4,200 feet, and construct lateral drifts to conduct exploration activities. As of December 31, 2024, the project had Inferred resources of 183.3 million ounces of silver and 759 thousand tons of copper. The Company continues to analyze the feasibility of developing a mine at the Libby Exploration Project and capital allocation decisions will be disciplined and focused on delivering shareholder value.