Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil Hydroworld Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Hecla Reports Fourth Quarter and Full-Year 2022 Results By: Hecla Mining Company via Business Wire February 15, 2023 at 06:30 AM EST 10% silver production growth in 2022; Expect 18% growth in 2023 and 35% by 2025; Silver cost guidance achieved with 2023 set at similar levels Hecla Mining Company (NYSE:HL) today announced fourth quarter and full-year 2022 financial and operating results. ANNUAL HIGHLIGHTS Strategic Completed the acquisition of Alexco Resource Corp., adding nearly 50 million ounces of silver reserves; highest-grade and largest primary silver reserves in Canada. Operational Record silver reserves of 241 million ounces, gold reserves of 2.6 million ounces. Produced 14.2 million ounces of silver, Hecla's second highest, and 175,807 ounces of gold. Record lead production of 49 thousand tons and zinc production of 65 thousand tons. Achieved silver cost guidance with total silver cost of sales of $349.3 million and all-in sustaining cost after by-product credits ("AISC") of $11.25 per silver ounce.4 Increased Lucky Friday silver production by 24% to 4.4 million ounces using the Underhand Closed Bench (UCB) mining method. Achieved record mill throughput milestones at all three operations. Financial Reported sales of $718.9 million with almost 70% from Greens Creek and Lucky Friday. Net loss applicable to common stockholders of $37.9 million or $0.07 per share, and adjusted net income of $27.8 million or $0.05 per share.5 Adjusted EBITDA of $217.5 million, net debt to adjusted EBITDA ratio of 1.9.1 Strong balance sheet with $104.7 million in cash and cash equivalents with approximately $245 million in available liquidity. Dividends of $12.9 million, or 14% of cash flow from operations. Environmental, Social, Governance Strong safety performance with an All-Injury Frequency Rate of 1.22, which equals prior Company record and is 42% below the U.S. average. The San Sebastian mine received the 2022 Environmental and Sustainability Excellence Award given by AEMA. Lucky Friday received the SME Murray Innovation Award for 2023 for the pioneering UCB mining method. Ratified a 6-year contract agreement with the Union at the Lucky Friday. “Hecla is the world’s fastest growing established silver company,” said Phillips S. Baker Jr., President and CEO. “This growth has been built on the strong foundation of Greens Creek, the United States’ largest silver mine, and the Lucky Friday, a mine in production for 80 years whose throughput this year was the most in its history. Added to these growing mines is Keno Hill, one of the world’s highest grade silver mines, which we expect to be in production in the second half of this year." Baker continued, “In 2022, we achieved our largest silver reserves and second highest silver production in our history, and expect to set new records in 2023 and 2024. If our growth continues as expected, Hecla would produce not only 40% of all the silver mined in the US, but also 40% of all silver mined in Canada. In 2022, we had among the best silver margins in the industry with AISC a little more than half of our realized silver price allowing us to maintain a strong balance sheet even after significant investment in the Lucky Friday and Keno Hill. We expect silver AISC in 2023 to be about the same as 2022 despite inflationary pressures and increased investment in all our mines. With our largest silver reserves, our growing production in Canada and the US, and strong silver margins, we believe our shareholders are well-positioned for higher silver prices as the transition to renewables increases the need for silver as an energy metal." FINANCIAL OVERVIEW In the following table and throughout this release, "total cost of sales" is comprised of cost of sales and other direct production costs and depreciation, depletion and amortization. In Thousands unless stated otherwise 4Q-2022 3Q-2022 2Q-2022 1Q-2022 4Q-2021 FY 2022 FY 2021 FINANCIAL AND PRODUCTION SUMMARY Sales $ 194,825 $ 146,339 $ 191,242 $ 186,499 $ 185,078 $ 718,905 $ 807,473 Total cost of sales $ 169,807 $ 137,892 $ 153,979 $ 141,070 $ 131,837 $ 602,749 $ 589,672 Gross profit $ 25,018 $ 8,447 $ 37,263 $ 45,429 $ 53,241 $ 116,156 $ 217,801 Income (loss) applicable to common stockholders $ (4,590 ) $ (23,664 ) $ (13,661 ) $ 4,015 $ 11,737 $ (37,900 ) $ 34,543 Basic income (loss) per common share (in dollars) $ (0.01 ) $ (0.04 ) $ (0.03 ) $ 0.01 $ 0.02 $ (0.07 ) $ 0.06 Adjusted EBITDA1 $ 62,261 $ 26,554 $ 70,474 $ 58,202 $ 58,249 $ 217,492 $ 278,780 Net Debt to Adjusted EBITDA1 1.9 1.1 Cash provided by operating activities $ 36,120 $ (24,322 ) $ 40,183 $ 37,909 $ 53,355 $ 89,890 $ 220,337 Capital Expenditures $ (56,140 ) $ (37,430 ) $ (34,329 ) $ (21,478 ) $ (28,838 ) $ (149,378 ) $ (109,048 ) Free Cash Flow2 $ (20,020 ) $ (61,752 ) $ 5,854 $ 16,431 $ 24,517 $ (59,488 ) $ 111,289 Silver ounces produced 3,663,433 3,549,392 3,645,454 3,324,708 3,226,927 14,182,987 12,887,240 Silver payable ounces sold 3,756,701 2,479,724 3,387,909 2,687,261 2,606,622 12,311,595 11,633,802 Gold ounces produced 43,634 44,747 45,719 41,707 47,977 175,807 201,327 Gold payable ounces sold 40,097 40,443 44,225 41,053 44,156 165,818 201,610 Cash Costs and AISC, each after by-product credits Silver cash costs per ounce3 $ 4.79 $ 3.43 $ (1.14 ) $ 1.09 $ 1.69 $ 2.06 $ 1.37 Silver AISC per ounce4 $ 14.36 $ 14.20 $ 8.55 $ 7.64 $ 10.08 $ 11.25 $ 9.19 Gold cash costs per ounce3 $ 1,696 $ 1,349 $ 1,371 $ 1,516 $ 1,143 $ 1,478 $ 1,127 Gold AISC per ounce4 $ 2,132 $ 1,738 $ 1,641 $ 1,810 $ 1,494 $ 1,825 $ 1,374 Realized Prices Silver, $/ounce $ 22.03 $ 18.30 $ 20.68 $ 24.68 $ 23.49 $ 21.53 $ 25.24 Gold, $/ounce $ 1,757 $ 1,713 $ 1,855 $ 1,880 $ 1,802 $ 1,803 $ 1,796 Lead, $/pound $ 1.05 $ 0.95 $ 0.97 $ 1.08 $ 1.13 $ 1.01 $ 1.03 Zinc, $/pound $ 1.24 $ 1.23 $ 1.44 $ 1.79 $ 1.74 $ 1.41 $ 1.44 Loss applicable to common stockholders decreased to $4.6 million in the fourth quarter 2022 from $23.7 million in the third quarter due to: Increased gross profit of $16.6 million due to higher revenues arising from deferred silver concentrate shipments from Greens Creek and Lucky Friday to the fourth quarter, higher realized prices and production partially offset by higher cost of sales. Exploration and pre-development expense decreased by $8.2 million due to the completion of seasonal exploration programs in the prior quarter. The above items were partially offset by: Increase in general and administrative expenses of $3.4 million due to higher incentive compensation accruals and a full quarter of additional staffing as a result of the Alexco acquisition. Increase of $2.9 million in provision for closed operations reflecting updated costs for Troy mine reclamation. Higher ramp-up and suspension costs of $2.5 million related to the Keno Hill ramp-up. Consolidated silver cost of sales in 2022 increased 12% to $349.3 million from the prior year due to higher labor costs including contractor costs, and inflationary pressures for fuel, consumables, ground support and other inputs. Cash costs and AISC per silver ounce, each after by-product credits, were $2.06 and $11.25, respectively.3,4 The increase in cash costs and AISC per silver ounce was due to higher cost of sales, and increased sustaining capital, partially offset by higher by-product credits due to higher by-products and silver production.3,4 Consolidated gold cost of sales decreased by 9% to $253.0 million primarily due to Nevada operations were being on care and maintenance. Cash costs and AISC per gold ounce, each after by-product credits, were $1,478 and $1,825, respectively.3,4 The increase in total cash costs was due to higher labor, contractor costs, and inflation in diesel, reagents, and other key inputs as well as lower gold production with AISC also impacted by higher sustaining capital. Loss applicable to common stockholders was $37.9 million in 2022 compared to net income of $34.5 million in 2021 with decrease in profitability attributable to: Lower sales of $88.6 million due to lower gold production and lower metal prices for silver, lead, and zinc, partially offset by higher silver, lead and zinc production. Lower gross profit due to lower sales and higher production costs. Higher general and administrative expenses of $8.8 million due to higher incentive compensation accruals, compensation increases effective July 1, and additional staffing as a result of the Alexco acquisition. A decrease in income tax benefit of $22.0 million The above items were partially offset by: Decrease in exploration and pre-development expense of $1.9 million. Fair value adjustments that resulted in a loss of $4.7 million in 2022 compared to a loss of $35.8 million in 2021 as result of lower realized and unrealized losses on derivatives and investments. Decrease in provision for closed operations and environmental matters of $5.8 million. Adjusted EBITDA for the year was $217.5 million and decreased by $61.3 million over the prior year primarily due to lower revenues and higher production costs amidst inflationary pressures. The ratio of Net debt to adjusted EBITDA increased to 1.9 due to lower Adjusted EBITDA and use of cash as the Company invested in development of the Keno Hill mine.1 Cash provided by operating activities was $89.9 million for 2022 and decreased $130.5 million year over year due to lower net income and unfavorable working capital changes. When compared to the third quarter, cash provided by operating activities increased by $60.4 million due to increased gross margin and monetization of zinc hedges. Capital expenditures, net of leases, totaled $149.4 million in 2022 compared to $109.0 million in 2021. The increase was due to higher capital spend at Lucky Friday, as the Company invested in the infrastructure necessary to increase throughput, sustaining expenditures at Greens Creek, and development capital at the Keno Hill partially offset by lower spend at Casa Berardi. Fourth quarter capital expenditures totaled $56.1 million, including $12.2 million at Greens Creek, $13.0 million at Casa Berardi, $13.7 million at Lucky Friday, and $16.1 million at Keno Hill. Free cash flow for the year was negative $59.5 million, a decrease of $170.8 million over the prior year due to lower revenues, higher production costs, higher capital spend at Lucky Friday and Greens Creek, and investment in the Keno Hill development. Free cash flow for the fourth quarter was negative $20.0 million and increased by $41.7 million over the prior quarter primarily due to higher cash flow from operations partially offset by higher capital spend.2 Forward Sales Contracts for Base Metals and Foreign Currency The Company uses financially settled forward sales contracts to manage exposures to changes in prices of zinc and lead. At December 31, 2022, the Company had contracts covering approximately 36% of the forecasted payable zinc production for 2023 at an average price of $1.34 per pound, and 40% of the forecasted payable lead production (through 2024) at an average price of $0.99 per pound. In the fourth quarter, the Company monetized zinc hedges for cash proceeds of approximately $17.0 million. The Company also manages CAD exposure through forward contracts. At December 31, 2022, the Company had hedged approximately 46% of forecasted CAD direct production costs for Casa Berardi through 2026 at an average CAD/USD rate of 1.31. The Company has also hedged approximately 34% of capital costs for Casa Berardi for 2023 at 1.33. At Keno Hill, 74% of the planned spend for 2023 is hedged at an average CAD/USD rate of 1.38. OPERATIONS OVERVIEW Greens Creek Mine - Alaska Dollars are in thousands except cost per ton 4Q-2022 3Q-2022 2Q-2022 1Q-2022 4Q-2021 FY 2022 FY 2021 GREENS CREEK Tons of ore processed 230,225 229,975 209,558 211,687 221,814 881,445 841,967 Total production cost per ton $ 211.29 $ 185.34 $ 197.84 $ 192.16 $ 174.55 $ 196.73 $ 177.30 Ore grade milled - Silver (oz./ton) 13.1 13.6 14.0 13.8 12.6 13.6 13.5 Ore grade milled - Gold (oz./ton) 0.08 0.07 0.08 0.07 0.07 0.08 0.08 Ore grade milled - Lead (%) 2.6 2.4 3.0 2.8 2.6 2.7 2.9 Ore grade milled - Zinc (%) 6.7 6.3 7.2 6.6 6.3 6.7 7.1 Silver produced (oz.) 2,433,275 2,468,280 2,410,598 2,429,782 2,262,635 9,741,935 9,243,222 Gold produced (oz.) 12,989 11,412 12,413 11,402 10,229 48,216 46,088 Lead produced (tons) 4,985 4,428 5,184 4,883 4,731 19,480 19,873 Zinc produced (tons) 13,842 12,580 13,396 12,494 12,457 52,312 53,648 Sales $ 95,374 $ 60,875 $ 92,723 $ 86,090 $ 87,865 $ 335,062 $ 384,843 Total cost of sales $ (70,075 ) $ (52,502 ) $ (60,506 ) $ (49,636 ) $ (49,251 ) $ (232,718 ) $ (213,113 ) Gross profit $ 25,299 $ 8,373 $ 32,217 $ 36,453 $ 38,614 $ 102,344 $ 171,730 Cash flow from operations $ 44,769 $ 7,749 $ 41,808 $ 56,295 $ 50,632 $ 150,621 $ 208,715 Exploration $ 1,050 $ 3,776 $ 929 $ 165 $ 696 $ 5,920 $ 4,591 Capital additions $ (12,150 ) $ (6,988 ) $ (14,668 ) $ (3,092 ) $ (9,544 ) $ (36,898 ) $ (23,883 ) Free cash flow2 $ 33,669 $ 4,537 $ 28,069 $ 53,368 $ 41,784 $ 119,643 $ 189,423 Cash cost per ounce, after by-product credits3 $ 4.26 $ 2.65 $ (3.29 ) $ (0.90 ) $ 0.50 $ 0.70 $ (0.65 ) AISC per ounce, after by-product credits4 $ 9.04 $ 8.61 $ 3.48 $ 1.90 $ 5.66 $ 5.77 $ 3.19 Greens Creek produced 9.7 million ounces of silver in 2022, an increase of 5% over the prior year achieving record mill throughput. Fourth quarter sales were $95.4 million, and increased $34.5 million over the third quarter due to higher realized prices, increased by-product production and the favorable impact of a deferred silver concentrate shipment from the third quarter resulting in higher metals sold. Cost of sales for the quarter were $70.1 million, an increase of $17.6 million over the prior quarter with the increase attributable to higher costs related to higher volumes of metals sold and higher fuel and consumables costs. Cash costs and AISC per silver ounce, each after by-product credits, were $4.26 and $9.04 and increased quarter over quarter due to higher treatment and freight costs due to higher concentrate quantities shipped, and higher costs related to fuel and consumables as the mill achieved record throughput.3,4 Cash flow from operations increased by $37.0 million over the prior quarter due to increased sales and lower exploration spend partially offset by higher costs. Free cash flow for the fourth quarter was $33.7 million, an increase of $29.1 million over the prior quarter due to higher cash flow from operations partially offset by higher capital spend.2 2022 sales were $335.1 million, a decrease of $49.8 million compared to 2021 due to lower realized silver prices partially offset by higher silver and gold production. Cost of sales increased to $232.7 million compared to $213.1 million in 2021 due to higher labor and contractor costs due to record tons mined, inflationary pressures for fuel, reagents and other inputs, and higher volumes of consumables as the mill achieved record throughput in 2022. Cash costs and AISC per silver ounce (each after by-product credits) were $0.70 and $5.77, respectively, increasing year over year due to the reasons outlined above, partially offset by higher by-product credits.3,4 The increase in AISC was also impacted by higher exploration and sustaining capital spend during the year. Cash flow from operations for the year was $150.6 million, and decreased by $58.1 million over the prior year due to lower revenues and higher production costs. Free cash flow generation for the year was $119.6 million and declined by $69.8 million over the prior year due to lower cash flow from operations and higher planned capital spend.2 Lucky Friday Mine - Idaho Dollars are in thousands except cost per ton 4Q-2022 3Q-2022 2Q-2022 1Q-2022 4Q-2021 FY 2022 FY 2021 LUCKY FRIDAY Tons of ore processed 90,935 90,749 97,497 77,725 80,097 356,907 321,837 Total production cost per ton $ 232.73 $ 207.10 $ 211.45 $ 247.17 $ 198.83 $ 223.55 $ 191.50 Ore grade milled - Silver (oz./ton) 14.0 12.5 13.2 12.0 12.5 13.0 11.6 Ore grade milled - Lead (%) 9.1 8.5 8.8 8.2 8.1 8.7 7.6 Ore grade milled - Zinc (%) 4.1 4.2 3.9 3.6 3.3 3.9 3.4 Silver produced (oz.) 1,224,199 1,074,230 1,226,477 887,858 955,401 4,412,764 3,564,128 Lead produced (tons) 7,934 7,172 8,147 5,980 6,131 29,233 23,137 Zinc produced (tons) 3,335 3,279 3,370 2,452 2,296 12,436 9,969 Sales $ 45,434 $ 28,460 $ 35,880 $ 38,040 $ 32,938 $ 147,814 $ 131,488 Total cost of sales $ (32,819 ) $ (24,166 ) $ (30,348 ) $ (29,265 ) $ (23,252 ) $ (116,598 ) $ (97,538 ) Gross profit $ 12,615 $ 4,294 $ 5,532 $ 8,775 $ 9,686 $ 31,216 $ 33,950 Cash flow from operations $ (7,437 ) $ 11,624 $ 21,861 $ 11,765 $ 16,953 $ 37,813 $ 62,594 Capital additions $ (13,714 ) $ (16,125 ) $ (11,501 ) $ (9,652 ) $ (9,109 ) $ (50,992 ) $ (29,885 ) Free cash flow2 $ (21,151 ) $ (4,501 ) $ 10,360 $ 2,113 $ 7,844 $ (13,179 ) $ 32,709 Cash cost per ounce, after by-product credits3 $ 5.81 $ 5.23 $ 3.07 $ 6.57 $ 4.50 $ 5.06 $ 6.60 AISC per ounce, after by-product credits4 $ 12.88 $ 15.98 $ 9.91 $ 13.15 $ 12.54 $ 12.86 $ 14.34 Lucky Friday produced 4.4 million ounces of silver, an increase of 24% over the prior year due to record throughput, and higher mined grades. Silver production for the fourth quarter was 1.2 million ounces, an increase of 14% over the prior quarter due to higher grades mined. Fourth quarter sales were $45.4 million, an increase of $17.0 million over the prior quarter due to increased production, higher realized prices, and the sale of the silver concentrate shipment which was deferred from the third quarter. Cost of sales were $32.8 million and increased $8.7 million over the prior quarter due to costs associated with the deferred silver concentrate shipment inventoried in the third quarter, and higher labor costs as the mine continued to fill key positions. Cash costs after by-product credits per silver ounce were $5.81 and increased over the prior quarter due to higher labor costs and higher treatment and freight costs resulting from higher concentrate sales, partially offset by higher by-product credits and higher silver production. AISC after by-product credits per silver ounce was $12.88 and decreased over the prior quarter as the factors affecting cash cost per ounce were offset by lower capital spend in the fourth quarter.3,4 Cash flow from operations was negative $7.4 million, a decrease of $19.1 million over the prior quarter due to unfavorable working capital changes and receipt of $6.7 million related to the deferred silver concentrate shipment received in January 2023. Free cash flow was negative $21.2 million and decreased over the prior quarter primarily due to decreased cash flow from operations partially offset by lower capital spend.2 2022 sales were $147.8 million, an increase of $16.3 million over 2021 as higher metal production offset lower realized prices and higher treatment costs due to increased concentrate production. Cost of sales increased to $116.6 million compared to $97.5 million in 2021 reflecting higher costs related to increased tons mined and milled, as well as inflationary pressures for fuel, reagents and other input costs realized during the year. Cash costs and AISC per silver ounce, each after by-product credits, were $5.06 and $12.86, respectively, decreasing year over year due to higher production and by-product credits partially offset by higher costs and capital spend. 3,4 Cash flow from operations for the year was $37.8 million, a decrease of $24.8 million over the prior year due to higher production costs and unfavorable working capital changes. Free cash flow was negative $13.2 million due to lower cash flow from operations and increased capital spend for the year.2 Casa Berardi - Quebec Dollars are in thousands except cost per ton 4Q-2022 3Q-2022 2Q-2022 1Q-2022 4Q-2021 FY 2022 FY 2021 CASA BERARDI Tons of ore processed - underground 160,150 162,215 176,576 161,609 161,355 660,550 694,617 Tons of ore processed - surface pit 250,883 227,726 225,042 224,541 225,662 928,189 833,629 Tons of ore processed - total 411,033 389,941 401,618 386,150 387,017 1,588,739 1,528,246 Surface tons mined - ore and waste 2,657,638 2,822,906 2,149,412 1,892,339 1,507,457 9,522,295 7,015,178 Total production cost per ton $ 125.75 $ 114.52 $ 113.07 $ 117.96 $ 108.82 $ 117.89 $ 98.60 Ore grade milled - Gold (oz./ton) - underground 0.15 0.15 0.19 0.14 0.17 0.16 0.16 Ore grade milled - Gold (oz./ton) - surface pit 0.05 0.06 0.05 0.05 0.07 0.05 0.06 Ore grade milled - Gold (oz./ton) - combined 0.09 0.10 0.10 0.09 0.11 0.09 0.10 Gold produced (oz.) - underground 20,365 22,181 22,866 19,374 22,910 84,786 98,090 Gold produced (oz.) - surface pit 10,344 11,154 10,440 10,866 14,356 42,804 36,421 Gold produced (oz.) - total 30,709 33,335 33,306 30,240 37,266 127,590 134,511 Silver produced (oz.) - total 5,960 6,882 8,379 7,068 7,967 28,289 33,571 Sales $ 53,458 $ 56,939 $ 62,639 $ 62,101 $ 60,054 $ 235,136 $ 245,152 Total cost of sales $ (65,328 ) $ (59,532 ) $ (61,870 ) $ (62,168 ) $ (57,069 ) $ (248,898 ) $ (229,829 ) Gross profit (loss) $ (11,870 ) $ (2,593 ) $ 769 $ (67 ) $ 2,985 $ (13,762 ) $ 15,323 Cash flow from operations $ 10,188 $ 8,721 $ 7,417 $ 8,089 $ 10,029 $ 34,415 $ 73,791 Exploration $ 1,637 $ 2,624 $ 1,341 $ 2,635 $ 2,124 $ 8,237 $ 9,526 Capital additions $ (12,995 ) $ (10,771 ) $ (8,093 ) $ (7,808 ) $ (9,537 ) $ (39,667 ) $ (49,617 ) Free cash flow2 $ (1,170 ) $ 574 $ 665 $ 2,916 $ 2,616 $ 2,985 $ 33,700 Cash cost per ounce, after by-product credits3 $ 1,696 $ 1,349 $ 1,371 $ 1,516 $ 1,137 $ 1,478 $ 1,125 AISC per ounce, after by-product credits4 $ 2,132 $ 1,738 $ 1,641 $ 1,810 $ 1,470 $ 1,825 $ 1,399 Casa Berardi produced 127,590 and 30,709 ounces of gold in 2022 and the fourth quarter, respectively. Gold production for the year decreased by 5% compared to last year due to a 12% decrease in overall gold grade, partially offset by a 4% increase in tonnage and a 3% increase in mill recoveries. The lower grade was due to a higher ratio of lower grade ore sourced from the open pits. The mill continued to perform well, achieving record throughput of 4,468 tons per day (tpd) in the fourth quarter of 2022. Full year 2022 cost of sales was $248.9 million, an increase of $19.1 million over the prior year due to inflationary pressures and increased labor, consumables, and contractor costs. Cash costs and AISC per ounce, each after by-product credits, were $1,478 and $1,825, respectively.3,4 The year over year increase in cash costs and AISC per gold ounce was due to higher production costs and lower gold production in 2022, and AISC per ounce was also impacted by higher sustaining capital and higher exploration spending.3,4 Cash flow from operations for the year was $34.4 million and decreased year over year due a combination of lower production and higher operating costs. Free cash flow for the year was $3.0 million compared to $33.7 million in 2021.2 Keno Hill - Yukon Territory At Keno Hill, production is expected to commence in the third quarter 2023 with a phased ramp up projected to reach 440 tpd by the end of the year. Anticipated silver production for the year is 2.5-3 million ounces expected from the Bermingham and Flame & Moth deposits. As of the end of January 2023, approximately 40% of development required to achieve full production was completed. Capital spending to bring the mine to full production is estimated to be $35-$40 million in 2023. Some key capital projects underway include camp expansion, mill improvements and engineering, and other surface capital infrastructure projects. EXPLORATION AND PRE-DEVELOPMENT Exploration and pre-development expenses totaled $6.9 million for the fourth quarter and $46.0 million for the full year. Exploration activities during the fourth quarter focused on targets at Keno Hill, Casa Berardi, and Greens Creek. For the year ended 2022, the Company reported the highest silver reserves of more than 240 million ounces, an increase of 21% over 2021. The increase was primarily due to the acquisition of Keno Hill in Canada's Yukon territory. Gold reserves declined 6% to 2.6 million ounces compared to 2021 due to cost increases which increased the cut-off grade at Casa Berardi. A breakdown of the Company's reserves and resources is located in Table A at the end of this news release. For further details on Company's 2022 exploration and pre-development program and 2023 planned expenditures as well as reserves and resources at year-end 2022, please refer to the news release entitled "Hecla Reports Highest Silver Reserves in Company History" released on February 14, 2023. 2023 ESTIMATES6 The Company is providing a three-year production outlook and 2023 estimates of costs, capital and exploration and pre-development expenses. 2023 - 2025 Production Outlook Production guidance for 2023-2025 includes expected production from Keno Hill. Consolidated silver production is expected to increase over the three years to reach 18.5-20 million ounces by 2025. Consolidated gold production is expected to decrease to 160-170 thousand ounces in 2023 primarily due to Casa Berardi as an increase in the underground cut-off grade will lower gold production and reduce lower margin material and lower contractor costs. Casa Berardi's production is expected to be lower in the first half of 2023 and increase in the latter half of the year. Cash costs and AISC, each after by-product credits, per gold ounce are expected to be higher in the first half and trend lower in the second half of the year. Silver Production (Moz) Gold Production (Koz) Silver Equivalent (Moz) Gold Equivalent (Koz) 2023 Greens Creek * 9.0 - 9.5 50.0 - 55.0 21.0 - 22.0 255.0 - 265.0 2023 Lucky Friday * 4.5 - 5.0 N/A 8.5 - 9.0 105.0 - 110.0 2023 Casa Berardi N/A 110.0 - 115.0 9.0 - 9.5 110.0 - 115.0 2023 Keno Hill 2.5 - 3.0 N/A 2.5 - 3.0 35.0 - 40.0 2023 Total 16.0 - 17.5 160.0 - 170.0 41.5 - 44.0 505.0 - 535.0 2024 Total 17.5 - 18.5 145.0 - 161.0 42.5 - 44.5 510.0 - 540.0 2025 Total 18.5 - 20.0 142.0 - 161.5 41.0 - 44.0 495.0 - 535.0 *Equivalent ounces include lead and zinc production 2023 Cost Outlook Costs of Sales (million) Cash cost, after by- product credits, per silver/gold ounce3 AISC, after by- product credits, per produced silver/gold ounce4 Greens Creek 245 $0.00 - $0.25 $6.00 - $6.75 Lucky Friday 128 $2.00 - $2.50 $8.50 - $9.50 Keno Hill 40 $11.00 - $13.50 $12.25 - $14.75 Total Silver 413 $2.50 - $3.00 $10.25 - $11.50 Casa Berardi 220 $1450 - $1550 $1975 - $2050 2023 Capital and Exploration Outlook Capital spending in 2023 is expected to increase due to higher spending at Casa Berardi and Greens Creek, as well as development and infrastructure projects at Keno Hill. Casa Berardi's increased capital spending is primarily due to the expansion of tailings facility. Greens Creek's projected higher capital spend is due to additional equipment purchases as the mine targets throughput of 2,600 tons per day, and increased capital development. Capital expenditures $190 - $200 million Greens Creek $49 - $52 million Lucky Friday $48 - $51 million Casa Berardi $51 - $53 million Keno Hill $42 - $44 million Exploration and Pre-development expenditures $32.5 million Keno Hill Ramp Up Costs $9.0 million DIVIDENDS Common Stock The Board of Directors declared a quarterly cash dividend of $0.00625 per share of common stock, consisting of $0.00375 per share for the minimum dividend component and $0.0025 per share for the silver-linked component. The common stock dividend is payable on or about March 24, 2023, to stockholders of record on March 9, 2023. The realized silver price was $22.03 in the fourth quarter, satisfying the criterion for the silver-linked component under the Company's common stock dividend policy. Preferred Stock The Board of Directors elected to declare a quarterly cash dividend of $0.875 per share of preferred stock, payable on or about April 3, 2023, to stockholders of record on March 15, 2023. CONFERENCE CALL AND WEBCAST A conference call and webcast will be held Wednesday, February 15, at 10:00 a.m. Eastern Time to discuss these results. We recommend that you dial in at least 10 minutes before the call commencement. You may join the conference call by dialing toll-free 1-888-330-2391 or for international dialing 1-240-789-2702. The Conference ID is 4812168 and must be provided when dialing in. Hecla's live and archived webcast can be accessed at https://events.q4inc.com/attendee/180188973 or www.hecla-mining.com under Investors. VIRTUAL INVESTOR EVENT Hecla will be holding a Virtual Investor Event on Wednesday, February 15, from 12:00 p.m. to 2:00 p.m. Eastern Time. Hecla invites shareholders, investors, and other interested parties to schedule a personal, 30-minute virtual meeting (video or telephone) with a member of senior management to discuss Financials, Exploration, Operations, ESG or general matters. Click on the link below to schedule a call (or copy and paste the link into your web browser). You can select a topic once you have entered the meeting calendar. If you are unable to book a time, either due to high demand or for other reasons, please reach out to Anvita M. Patil, Vice President, Investor Relations and Treasurer at hmc-info@hecla-mining.com or 208-769-4100. One-on-One meeting URL: https://calendly.com/2023-february-vie ABOUT HECLA Founded in 1891, Hecla Mining Company (NYSE: HL) is the largest silver producer in the United States. In addition to operating mines in Alaska, Idaho, and Quebec, Canada, the Company is developing a mine in the Yukon, Canada, and owns a number of exploration and pre-development projects in world-class silver and gold mining districts throughout North America. NOTES Non-GAAP Financial Measures Non-GAAP financial measures are intended to provide additional information only and do not have any standard meaning prescribed by United States generally accepted accounting principles (GAAP). These measures should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. The non-GAAP financial measures cited in this release and listed below are reconciled to their most comparable GAAP measure at the end of this release. (1) Adjusted EBITDA is a non-GAAP measurement, a reconciliation of which to net income, the most comparable GAAP measure, can be found at the end of the release. Adjusted EBITDA is a measure used by management to evaluate the Company's operating performance but should not be considered an alternative to net income, or cash provided by operating activities as those terms are defined by GAAP, and does not necessarily indicate whether cash flows will be sufficient to fund cash needs. In addition, the Company may use it when formulating performance goals and targets under its incentive program. Net debt to adjusted EBITDA is a non-GAAP measurement, a reconciliation of which to debt and net income (loss), the most comparable GAAP measurements, can be found at the end of the release. It is an important measure for management to measure relative indebtedness and the ability to service the debt relative to its peers. It is calculated as total debt outstanding less total cash on hand divided by adjusted EBITDA. (2) Free cash flow is a non-GAAP measure calculated as cash provided by operating activities less additions to properties, plants and equipment. Cash provided by operating activities for the Greens Creek, Lucky Friday, Casa Berardi, and Nevada operating segments excludes exploration and pre-development expense, as it is a discretionary expenditure and not a component of the mines’ operating performance. (3) Cash cost, after by-product credits, per silver and gold ounce is a non-GAAP measurement, a reconciliation of which to cost of sales and other direct production costs and depreciation, depletion and amortization (sometimes referred to as "cost of sales" in this release), can be found at the end of the release. It is an important operating statistic that management utilizes to measure each mine's operating performance. It also allows the benchmarking of performance of each mine versus those of our competitors. As a primary silver mining company, management also uses the statistic on an aggregate basis - aggregating the Greens Creek and Lucky Friday mines - to compare performance with that of other silver mining companies, and aggregating Casa Berardi and the Nevada operations, to compare its performance with other gold mining companies. Similarly, the statistic is useful in identifying acquisition and investment opportunities as it provides a common tool for measuring the financial performance of other mines with varying geologic, metallurgical and operating characteristics. In addition, the Company may use it when formulating performance goals and targets under its incentive program. Cash cost, after by-product credits, per silver ounce is not presented for Lucky Friday for the first nine-months of 2020, as production was limited due to the strike and subsequent ramp-up and results are not comparable to those from prior periods and are not indicative of future operating results under full production. (4) All-in sustaining cost (AISC), after by-product credits, is a non-GAAP measurement, a reconciliation of which to cost of sales and other direct production costs and depreciation, depletion and amortization, the closest GAAP measurement, can be found in the end of the release. AISC, after by-product credits, includes cost of sales and other direct production costs, expenses for reclamation and exploration at the mines sites, corporate exploration related to sustaining operations, and all site sustaining capital costs. AISC, after by-product credits, is calculated net of depreciation, depletion, and amortization and by-product credits. (5) Adjusted net income (loss) applicable to common stockholders is a non-GAAP measurement, a reconciliation of which to net income (loss) applicable to common stockholders, the most comparable GAAP measure, can be found at the end of the release. Adjusted net income (loss) is a measure used by management to evaluate the Company's operating performance but should not be considered an alternative to net income (loss) as defined by GAAP. They exclude certain impacts which are of a nature which we believe are not reflective of our underlying performance. Management believes that adjusted net income (loss) per common share provides investors with the ability to better evaluate our underlying operating performance. 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. Management believes that all-in sustaining costs is a non-GAAP measure that provides additional information to management, investors and analysts to help (i) in the understanding of the economics of our operations and performance compared to other producers and (ii) in the transparency by better defining the total costs associated with production. Similarly, the statistic is useful in identifying acquisition and investment opportunities as it provides a common tool for measuring the financial performance of other mines with varying geologic, metallurgical and operating characteristics. In addition, the Company may use it when formulating performance goals and targets under its incentive program. Other (6) Expectations for 2023 include silver, gold, lead and zinc production from Greens Creek, Lucky Friday, Keno Hill, and Casa Berardi converted using Au $1,800/oz, Ag $22/oz, Zn $1.15/lb, and Pb 0.90$/lb, CAD/USD 1.30. Numbers may be rounded. Cautionary Statement Regarding Forward-Looking Statements, Including 2023 Outlook This news release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbor created by such sections and other applicable laws, including Canadian securities laws. Words such as “may”, “will”, “should”, “expects”, “intends”, “projects”, “believes”, “estimates”, “targets”, “anticipates” and similar expressions are used to identify these forward-looking statements. Such forward-looking statements may include, without limitation: (i) increased demand for silver due to transition to clean energy; (ii) Keno Hill will be in production in the second half of the year with ramp-up to 440 tons per day by the end of 2023; (iii) the Company will set new production records in 2023 and 2024; (iv) Casa Berardi's costs will trend lower in the second half of 2023; and; (v) mine-specific and Company-wide 2023 estimates of future production (for 2024 and 2025), sales and costs of sales, as well as cash cost and AISC per ounce (in each case after by-product credits) and Company-wide estimated spending on capital, exploration and pre-development for 2023. The material factors or assumptions used to develop such forward-looking statements or forward-looking information include that the Company’s plans for development and production will proceed as expected and will not require revision as a result of risks or uncertainties, whether known, unknown or unanticipated, to which the Company’s operations are subject. Estimates or expectations of future events or results are based upon certain assumptions, which may prove to be incorrect, which could cause actual results to differ from forward-looking statements. Such assumptions, include, but are not limited to: (i) there being no significant change to current geotechnical, metallurgical, hydrological and other physical conditions; (ii) permitting, development, operations and expansion of the Company’s projects being consistent with current expectations and mine plans; (iii) political/regulatory developments in any jurisdiction in which the Company operates being consistent with its current expectations; (iv) the exchange rate for the USD/CAD and USD/MXN, being approximately consistent with current levels; (v) certain price assumptions for gold, silver, lead and zinc; (vi) prices for key supplies being approximately consistent with current levels; (vii) the accuracy of our current mineral reserve and mineral resource estimates; (viii) there being no significant changes to Company plans for 2023 and beyond due to COVID-19 or any other public health issue, including, but not limited to with respect to availability of employees, vendors and equipment; (ix) the Company’s plans for development and production will proceed as expected and will not require revision as a result of risks or uncertainties, whether known, unknown or unanticipated; (x) counterparties performing their obligations under hedging instruments and put option contracts; (xi) sufficient workforce is available and trained to perform assigned tasks; (xii) weather patterns and rain/snowfall within normal seasonal ranges so as not to impact operations; (xiii) relations with interested parties, including First Nations and Native Americans, remain productive; (xiv) maintaining availability of water rights; (xv) factors do not arise that reduce available cash balances; and (xvi) there being no material increases in our current requirements to post or maintain reclamation and performance bonds or collateral related thereto. In addition, material risks that could cause actual results to differ from forward-looking statements include, but are not limited to: (i) gold, silver and other metals price volatility; (ii) operating risks; (iii) currency fluctuations; (iv) increased production costs and variances in ore grade or recovery rates from those assumed in mining plans; (v) community relations; (vi) conflict resolution and outcome of projects or oppositions; (vii) litigation, political, regulatory, labor and environmental risks; (viii) exploration risks and results, including that mineral resources are not mineral reserves, they do not have demonstrated economic viability and there is no certainty that they can be upgraded to mineral reserves through continued exploration; (ix) the failure of counterparties to perform their obligations under hedging instruments; (x) we take a material impairment charge on any of our assets; and (xi) inflation causes our costs to rise more than we currently expect. For a more detailed discussion of such risks and other factors, see the Company’s (i) 2021 Annual Report on Form 10-K, filed with the Securities and Exchange Commission (SEC) on February 23, 2022, and (ii) other SEC filings, including its Quarterly Report on Form 10-Q filed with the SEC on August 5, 2022 and 2022 Form 10-K expected to be filed with the SEC by March 1, 2023. The Company does not undertake any obligation to release publicly, revisions to any “forward-looking statement,” including, without limitation, outlook, to reflect events or circumstances after the date of this presentation, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws. Investors should not assume that any lack of update to a previously issued “forward-looking statement” constitutes a reaffirmation of that statement. Continued reliance on “forward-looking statements” is at investors’ own risk. Qualified Person (QP) Kurt D. Allen, MSc., CPG, VP - Exploration of Hecla Mining Company and Keith Blair, MSc., CPG, Chief Geologist of Hecla Limited, who serve as a Qualified Person under S-K 1300 and NI 43-101, supervised the preparation of the scientific and technical information concerning Hecla’s mineral projects in this news release. Technical Report Summaries (each a “TRS”) for each of the Company’s material properties are filed as exhibits 96.1, 96.2 and 96.3 to the Company’s Form 10-K for the year ended December 31, 2022 and are incorporated by reference into the Company’s Form 10-K, expected to be filed with the SEC on February 15, 2023, and are available at www.sec.gov. Information regarding data verification, surveys and investigations, quality assurance program and quality control measures and a summary of analytical or testing procedures for (i) the Greens Creek Mine are contained in its TRS and in a NI 43-101 technical report titled “Technical Report for the Greens Creek Mine” effective date December 31, 2018, (ii) the Lucky Friday Mine are contained in its TRS and in its technical report titled “Technical Report for the Lucky Friday Mine Shoshone County, Idaho, USA” effective date April 2, 2014, (iii) Casa Berardi are contained in its TRS and in its technical report titled “Technical Report on the mineral resource and mineral reserve estimate for Casa Berardi Mine, Northwestern Quebec, Canada” effective date December 31, 2018, and (iv) the San Sebastian Mine, Mexico, are contained in a technical report prepared for Hecla titled “Technical Report for the San Sebastian Ag-Au Property, Durango, Mexico” effective date September 8, 2015. Also included in each TRS and the four technical reports is a description of the key assumptions, parameters and methods used to estimate mineral reserves and resources and a general discussion of the extent to which the estimates may be affected by any known environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant factors. Information regarding data verification, surveys and investigations, quality assurance program and quality control measures and a summary of sample, analytical or testing procedures and the key assumptions, parameters and methods used to estimate mineral reserves and resources and a general discussion of the extent to which the estimates may be affected by any known environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant factors are contained in technical reports prepared for Alexco Resource Corp. (“Alexco”) for Keno Hill (technical report dated April 1, 2021) and for Klondex Mines Ltd. for (i) the Fire Creek Mine (technical report dated March 31, 2018), (ii) the Hollister Mine (technical report dated May 31, 2017, amended August 9, 2017), and (iii) the Midas Mine (technical report dated August 31, 2014, amended April 2, 2015). Copies of these technical reports are available under Hecla’s profile on SEDAR, and in the case of Keno Hill, under Alexco’s profile, each at www.sedar.com. Mr. Allen and Mr. Blair reviewed and verified information regarding drill sampling, data verification of all digitally collected data, drill surveys and specific gravity determinations relating to all the mines. The review encompassed quality assurance programs and quality control measures including analytical or testing practice, chain-of-custody procedures, sample storage procedures and included independent sample collection and analysis. This review found the information and procedures meet industry standards and are adequate for Mineral Resource and Mineral Reserve estimation and mine planning purposes. HECLA MINING COMPANY Condensed Consolidated Statements of Income (Loss) (dollars and shares in thousands, except per share amounts - unaudited) Fourth Quarter Ended Third Quarter Ended Twelve Months Ended December 31, 2022 September 30, 2022 December 31, 2022 December 31, 2021 Sales of products $ 194,825 $ 146,339 $ 718,905 $ 807,473 Cost of sales and other direct production costs 132,232 104,900 458,811 417,879 Depreciation, depletion and amortization 37,575 32,992 143,938 171,793 Total cost of sales 169,807 137,892 602,749 589,672 Gross profit 25,018 8,447 116,156 217,801 Other operating expenses: General and administrative 14,396 11,003 43,384 34,570 Exploration and pre-development 6,905 15,128 46,041 47,901 Other operating expense 952 902 6,262 14,327 Ramp-up and suspension costs 7,575 5,092 24,114 23,012 Provision for closed operations and reclamation 4,639 1,781 8,793 14,571 34,467 33,906 128,594 134,381 Income (loss) from operations (9,448 ) (25,459 ) (12,438 ) 83,420 Other (expense) income: Fair value adjustments, net 9,980 (4,240 ) (4,723 ) (35,792 ) Foreign exchange (loss) gain, net (900 ) 5,667 7,211 417 Other net expense 1,353 1,853 7,829 (574 ) Interest expense (9,360 ) (10,874 ) (42,793 ) (41,945 ) 1,073 (7,594 ) (32,476 ) (77,894 ) (Loss) income before income taxes (8,376 ) (33,053 ) (44,914 ) 5,526 Income and mining tax benefit (provision) 3,924 9,527 7,566 29,569 Net income (loss) (4,452 ) (23,526 ) (37,348 ) 35,095 Preferred stock dividends (138 ) (138 ) (552 ) (552 ) Income (loss) applicable to common stockholders $ (4,590 ) $ (23,664 ) $ (37,900 ) $ 34,543 Basic income (loss) per common share after preferred dividends (in cents) $ (0.01 ) $ (0.04 ) $ (0.07 ) $ 0.06 Diluted income (loss) per common share after preferred dividends (in cents) $ (0.01 ) $ (0.04 ) $ (0.07 ) $ 0.06 Weighted average number of common shares outstanding basic 596,959 554,531 557,344 536,192 Weighted average number of common shares outstanding diluted 596,959 554,531 557,344 542,176 HECLA MINING COMPANY Condensed Consolidated Balance Sheets (dollars and shares in thousands - unaudited) December 31, 2022 December 31, 2021 ASSETS Current assets: Cash and cash equivalents $ 104,743 $ 210,010 Accounts receivable 55,841 44,586 Inventories 90,672 67,765 Other current assets 16,471 19,266 Total current assets 267,727 341,627 Investments 24,018 10,844 Restricted cash and investments 1,164 1,053 Properties, plants, equipment and mineral interests, net 2,569,790 2,310,810 Operating lease right-of-use assets 11,064 12,435 Deferred tax assets 21,105 45,562 Other non-current assets 32,304 6,477 Total assets $ 2,927,172 $ 2,728,808 LIABILITIES Current liabilities: Accounts payable and accrued liabilities $ 84,747 $ 68,100 Accrued payroll and related benefits 37,579 28,714 Accrued taxes 4,030 12,306 Finance leases 9,483 5,612 Accrued reclamation and closure costs 8,591 9,259 Accrued interest 14,454 14,454 Derivatives liabilities 16,125 19,353 Other current liabilities 3,457 2,585 Total current liabilities 178,466 160,383 Long-term debt including finance leases 517,742 515,871 Accrued reclamation and closure costs 108,408 103,972 Deferred income tax liability 125,846 149,706 Non-current pension liability — 4,673 Derivatives liabilities 6,066 18,528 Other non-current liabilities 11,677 14,888 Total liabilities 948,205 968,021 STOCKHOLDERS’ EQUITY Preferred stock 39 39 Common stock 151,819 136,391 Capital surplus 2,260,290 2,034,485 Accumulated deficit (403,931 ) (353,651 ) Accumulated other comprehensive (loss) 2,448 (28,456 ) Treasury stock (31,698 ) (28,021 ) Total stockholders’ equity 1,978,967 1,760,787 Total liabilities and stockholders’ equity $ 2,927,172 $ 2,728,808 Common shares outstanding 607,620 545,535 HECLA MINING COMPANY Condensed Consolidated Statements of Cash Flows (dollars in thousands - unaudited) Fourth Quarter Ended Third Quarter Ended Twelve Months Ended December 31, 2022 September 30, 2022 December 31, 2022 December 31, 2021 OPERATING ACTIVITIES Net income (loss) $ (4,452 ) $ (23,526 ) $ (37,348 ) $ 35,095 Non-cash elements included in net income (loss): Depreciation, depletion and amortization 38,404 33,087 145,147 172,651 Provision for reclamation and closure costs 4,783 1,518 9,572 11,514 Deferred income taxes (8,395 ) (16,538 ) (26,223 ) (48,049 ) Stock compensation 1,714 1,773 6,012 6,082 Fair value adjustments, net 20,696 17,671 24,182 15,040 Foreign exchange (gain) loss (857 ) (4,911 ) (9,210 ) (79 ) Adjustment of inventory to net realizable value 487 1,405 2,646 6,524 Other non-cash charges, net 1,282 1,472 3,736 2,663 Change in assets and liabilities: Accounts receivable (26,119 ) 15,589 8,669 (5,405 ) Inventories 1,242 (11,120 ) (18,230 ) 16,919 Other current and non-current assets (8,291 ) (2,526 ) (11,711 ) (1,678 ) Accounts payable and accrued liabilities (3,273 ) (38,827 ) (24,981 ) (795 ) Accrued payroll and related benefits 12,053 1,401 13,732 1,270 Accrued taxes (5,275 ) 3,031 (7,927 ) 6,457 Accrued reclamation and closure costs and other non-current liabilities 12,121 (3,821 ) 11,824 2,128 Cash provided by operating activities 36,120 (24,322 ) 89,890 220,337 INVESTING ACTIVITIES Additions to properties, plants, equipment and mineral interests (56,140 ) (37,430 ) (149,378 ) (109,048 ) Acquisition, net — 8,952 8,953 — Pre-acquisition advance to Alexco — (25,000 ) (25,000 ) — Changes in restricted cash and investment balances (2,010 ) 2,011 — — Purchase of carbon credits — — — (869 ) Proceeds from sale or exchange of investments — 6,888 9,375 1,811 Proceeds from disposition of properties, plants, equipment and mineral interests — 18 748 1,077 Purchases of investments (1,431 ) (8,641 ) (31,971 ) — Net cash used in investing activities (59,581 ) (53,202 ) (187,273 ) (107,029 ) FINANCING ACTIVITIES Acquisition of treasury shares — — (3,677 ) (4,525 ) Proceeds from issuance of stock, net of related costs 12,735 4,542 17,278 — Dividends paid to common and preferred stockholders (2,383 ) (3,522 ) (12,932 ) (20,672 ) Borrowings on debt — 25,000 25,000 — Payments on debt (25,000 ) — (25,000 ) — Debt issuance and loan origination fees paid (19 ) (443 ) (536 ) (116 ) Repayments of capital leases (2,411 ) (1,889 ) (7,633 ) (7,285 ) Net cash used in financing activities (17,078 ) 23,688 (7,500 ) (32,598 ) Effect of exchange rates on cash 531 517 (273 ) (530 ) Net (decrease) increase in cash, cash equivalents and restricted cash and cash equivalents (40,008 ) (53,319 ) (105,156 ) 80,180 Cash, cash equivalents and restricted cash and cash equivalents at beginning of period 145,915 199,234 211,063 130,883 Cash, cash equivalents and restricted cash and cash equivalents at end of period $ 105,907 $ 145,915 $ 105,907 $ 211,063 Non-GAAP Measures (Unaudited) Reconciliation of Cost of Sales and Other Direct Production Costs and Depreciation, Depletion and Amortization (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) The tables below present reconciliations between the most comparable GAAP measure of cost of sales and other direct production costs and depreciation, depletion and amortization 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 at Greens Creek, Lucky Friday, Casa Berardi and Nevada Operations and for the Company for the three- and twelve-month periods ended December 31, 2022 and 2021, and for estimated amounts for the twelve months ended December 31, 2023. Cash Cost, After By-product Credits, per Ounce is a measure developed by precious metals companies (including the Silver Institute) 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. Cash Cost, After By-product Credits, per Ounce is an important operating statistic that we utilize to measure each mine's operating performance. We have recently started reporting AISC, After By-product Credits, per Ounce which we use as a measure of our operation's net cash flow after costs for exploration, pre-development, 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 on-site exploration, 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 operations versus those of our competitors. As a primary silver and gold mining company, we also use these statistics on an aggregate basis. We aggregate Greens Creek and Lucky Friday to compare our performance with that of other primary silver mining companies and aggregate Casa Berardi and Nevada Operations to compare our performance with that of other primary gold mining companies. Similarly, these statistics are useful in identifying acquisition and investment opportunities as they provide a common tool for measuring the financial performance of other mines with varying geologic, metallurgical and operating characteristics. Cash Cost, Before By-product Credits and AISC, Before By-product Credits include all direct and indirect operating cash costs related directly to the physical activities of producing metals, including mining, processing and other plant costs, third-party refining expense, on-site general and administrative costs, royalties and mining production taxes. AISC, Before By-product Credits for each operation also includes on-site exploration, reclamation, and sustaining capital costs. AISC, Before By-product Credits for our consolidated silver properties also includes corporate costs for general and administrative expense, exploration and sustaining capital projects. By-product credits include revenues earned from all metals other than the primary metal produced at each operation. 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. However, comparability of Cash Cost, After By-product Credits, per Silver Ounce and AISC, After By-product Credits, per Silver Ounce for 2022 to 2021 is impacted by, among other factors, (i) the return to full production at Lucky Friday in the fourth quarter of 2020 and (ii) suspension of production at San Sebastian in the fourth quarter of 2020 and discontinuation of San Sebastian being reported as an operating segment in 2021. The Casa Berardi and Nevada Operations sections below report 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 and Nevada Operations. Only costs and ounces produced relating to operations 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 and Nevada Operations 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 Ounce for the total of Greens Creek and Lucky Friday, our combined silver properties. Similarly, the silver produced at our other two operations is not included as a by-product credit when calculating the similar gold metrics for Casa Berardi. In thousands (except per ounce amounts) Three Months Ended December 31, 2022 Three Months Ended September 30, 2022 Twelve Months Ended December 31, 2022 Twelve Months Ended December 31, 2021 Greens Creek Lucky Friday Corporate and other(3) Total Silver Greens Creek Lucky Friday Corporate and other(3) Total Silver Greens Creek Lucky Friday(2) Corporate and other(3) Total Silver Greens Creek Lucky Friday(2) Corporate and other(3) Total Silver Total cost of sales $70,074 $32,819 $0 $102,893 $52,502 $24,164 $76,666 $232,718 $116,598 $— $349,316 $213,113 $97,538 $247 $310,898 Depreciation, depletion and amortization (13,557) (9,549) - (23,106) (10,305) (7,261) (17,566) (48,911) (33,704) - (82,615) (48,710) (26,846) (152) (75,708) Treatment costs 10,467 5,334 - 15,801 9,477 4,791 14,268 37,836 18,605 - 56,441 36,099 16,723 - 52,822 Change in product inventory (4,014) (571) - (4,585) 4,464 3,022 7,486 5,885 2,049 - 7,934 80 (406) - (326) Reclamation and other costs 499 (265) - 234 (118) (152) (270) (1,489) (1,034) - (2,523) (3,466) (1,039) (95) (4,600) Cash Cost, Before By-product Credits(1) 63,469 27,768 - 91,237 56,020 24,564 80,584 226,039 102,514 - 328,553 197,116 85,970 - 283,086 Reclamation and other costs 706 282 988 705 282 987 2,821 1,128 - 3,949 3,390 1,056 - 4,446 Exploration 1,050 - 359 1,409 3,776 - 722 4,498 5,920 - 2,567 8,487 4,591 - 2,226 6,817 Sustaining capital 9,862 8,369 - 18,231 10,219 11,264 187 21,670 40,705 33,306 334 74,345 27,582 26,517 210 54,309 General and administrative 14,395 14,395 11,003 11,003 - - 43,384 43,384 34,570 34,570 AISC, Before By-product Credits(1) 75,087 36,419 14,754 126,260 70,720 36,110 11,912 118,742 275,485 136,948 46,285 458,718 232,679 113,543 37,006 383,228 By-product credits: Zinc (26,112) (6,249) (32,361) (26,244) (7,155) (33,399) (113,835) (27,607) - (141,442) (100,214) (19,479) - (119,693) Gold (19,630) (19,630) (17,019) (17,019) (75,596) - - (75,596) (72,011) - (72,011) Lead (7,351) (14,392) (21,743) (6,212) (11,796) (18,008) (29,800) (52,568) - (82,368) (30,922) (42,966) - (73,888) Total By-product credits (53,093) (20,641) — (73,734) (49,475) (18,951) — (68,426) (219,231) (80,175) — (299,406) (203,147) (62,445) — (265,592) Cash Cost, After By-product Credits $10,376 $7,127 $— $17,503 $6,545 $5,613 $— $12,158 $6,808 $22,339 $— $29,147 $(6,031) $23,525 $— $17,494 AISC, After By-product Credits $21,994 $15,777 $14,754 $52,526 $21,245 $17,159 $11,912 $50,316 $56,254 $56,773 $46,285 $159,312 $29,532 $51,098 $37,006 $117,636 Divided by ounces produced 2,433 1,224 3,657 2,469 1,075 3,544 9,742 4,413 14,155 9,243 3,564 12,807 Cash Cost, Before By-product Credits, per Silver Ounce $26.08 $22.68 $24.95 $22.69 $22.87 $22.74 $23.20 $23.23 $23.21 $21.33 $24.12 $22.11 By-product credits per ounce (21.82) (16.86) (20.16) (20.04) (17.64) (19.31) (22.50) (18.17) (21.15) (21.98) (17.52) (20.74) Cash Cost, After By-product Credits, per Silver Ounce $4.26 $5.81 $4.79 $2.65 $5.23 $3.43 $0.70 $5.06 $2.06 $(0.65) $6.60 $1.37 AISC, Before By-product Credits, per Silver Ounce $30.86 $29.74 $34.53 $28.65 $33.62 $33.51 $28.27 $31.03 $32.40 $25.17 $31.86 $29.93 By-product credits per ounce (21.82) (16.86) (20.16) (20.04) (17.64) (19.31) (22.50) (18.17) (21.15) (21.98) (17.52) (20.74) AISC, After By-product Credits, per Silver Ounce $9.04 $12.88 $14.37 $8.61 $15.98 $14.20 $5.77 $12.86 $11.25 $3.19 $14.34 $9.19 In thousands (except per ounce amounts) Three Months Ended December 31, 2022 Three Months Ended September 30, 2022 Twelve Months Ended December 31, 2022 Twelve Months Ended December 31, 2021 Casa Berardi Total Gold Casa Berardi Total Gold Casa Berardi Nevada and Other(2) Total Gold Casa Berardi Nevada Operations(2) Total Gold Total cost of sales $ 65,328 $ 65,328 $ 59,532 $ 59,532 $ 248,898 $ 4,535 $ 253,433 $ 229,829 $ 48,945 $ 278,774 Depreciation, depletion and amortization (14,568 ) (14,568 ) (15,089 ) (15,089 ) (60,962 ) (361 ) (61,323 ) (80,744 ) (15,341 ) (96,085 ) Treatment costs 521 521 429 429 1,866 — 1,866 1,513 1,731 3,244 Change in product inventory 1,122 1,122 420 420 186 — 186 2,439 (10,907 ) (8,468 ) Reclamation and other costs (196 ) (196 ) (203 ) (203 ) (819 ) — (819 ) (841 ) 300 (541 ) Exclusion of Nevada and Other costs — — — — — (4,174 ) (4,174 ) — — — Cash Cost, Before By-product Credits(1) 52,207 52,207 45,089 45,089 189,169 — 189,169 152,196 24,728 176,924 Reclamation and other costs 196 196 204 204 819 — 819 841 1,008 1,849 Exploration 1,741 1,741 2,314 2,314 6,627 — 6,627 5,326 — 5,326 Sustaining capital 11,438 11,438 10,457 10,457 36,883 — 36,883 30,643 511 31,154 AISC, Before By-product Credits(1) 65,582 65,582 58,064 58,064 233,498 — 233,498 189,006 26,247 215,253 By-product credits: Silver (124 ) (124 ) (131 ) (131 ) (610 ) — (610 ) (839 ) (1,152 ) (1,991 ) Total By-product credits (124 ) (124 ) (131 ) (131 ) (610 ) — (610 ) (839 ) (1,152 ) (1,991 ) Cash Cost, After By-product Credits $ 52,083 $ 52,083 $ 44,958 $ 44,958 $ 188,559 $ — $ 188,559 $ 151,357 $ 23,576 $ 174,933 AISC, After By-product Credits $ 65,458 $ 65,458 $ 57,933 $ 57,933 $ 232,888 $ — $ 232,888 $ 188,167 $ 25,095 $ 213,262 Divided by gold ounces produced 31 31 33 33 128 — 128 135 21 156 Cash Cost, Before By-product Credits, per Gold Ounce $ 1,700 $ 1,700 $ 1,353 $ 1,353 $ 1,483 $ — $ 1,483 $ 1,131 $ 1,193 $ 1,140 By-product credits per ounce (4 ) (4 ) (4 ) (4 ) (5 ) — (5 ) (6 ) (56 ) (13 ) Cash Cost, After By-product Credits, per Gold Ounce $ 1,696 $ 1,696 $ 1,349 $ 1,349 $ 1,478 $ — $ 1,478 $ 1,125 $ 1,137 $ 1,127 AISC, Before By-product Credits, per Gold Ounce $ 2,136 $ 2,136 $ 1,742 $ 1,742 $ 1,830 $ — $ 1,830 $ 1,405 $ 1,267 $ 1,387 By-product credits per ounce (4 ) (4 ) (4 ) (4 ) (5 ) — (5 ) (6 ) (56 ) (13 ) AISC, After By-product Credits, per Gold Ounce $ 2,132 $ 2,132 $ 1,738 $ 1,738 $ 1,825 $ — $ 1,825 $ 1,399 $ 1,211 $ 1,374 In thousands (except per ounce amounts) Three Months Ended December 31, 2022 Three Months Ended September 30, 2022 Twelve Months Ended December 31, 2022 Twelve Months Ended December 31, 2021 Total Silver Total Gold Total Total Silver Total Gold Total Total Silver Total Gold Total Total Silver Total Gold Total Total cost of sales $ 102,893 $ 65,328 $ 168,221 $ 76,666 $ 59,532 $ 136,198 $ 349,316 $ 253,433 $ 602,749 $ 310,898 $ 278,774 $ 589,672 Depreciation, depletion and amortization (23,106 ) (14,568 ) (37,674 ) (17,566 ) (15,089 ) (32,655 ) (82,615 ) (61,323 ) (143,938 ) (75,708 ) (96,085 ) (171,793 ) Treatment costs 15,801 521 16,322 14,268 429 14,697 56,441 1,866 58,307 52,822 3,244 56,066 Change in product inventory (4,585 ) 1,122 (3,463 ) 7,486 420 7,906 7,934 186 8,120 (326 ) (8,468 ) (8,794 ) Exclusion of Nevada and Other — — — — — — — (4,174 ) (4,174 ) — — — Reclamation and other costs 234 (196 ) 38 (270 ) (203 ) (473 ) (2,523 ) (819 ) (3,342 ) (4,600 ) (541 ) (5,141 ) Cash Cost, Before By-product Credits(1) 91,237 52,207 143,444 80,584 45,089 125,673 328,553 189,169 517,722 283,086 176,924 460,010 Reclamation and other costs 988 196 1,184 987 204 1,191 3,949 819 4,768 4,446 1,849 6,295 Exploration 1,409 1,741 3,150 4,498 2,314 6,812 8,487 6,627 15,114 6,817 5,326 12,143 Sustaining capital 18,231 11,438 29,669 21,670 10,457 32,127 74,345 36,883 111,228 54,309 31,154 85,463 General and administrative 14,395 — 14,395 11,003 11,003 43,384 — 43,384 34,570 — 34,570 AISC, Before By-product Credits(1) 126,260 65,582 191,842 118,742 58,064 176,806 458,718 233,498 692,216 383,228 215,253 598,481 By-product credits: Zinc (32,361 ) — (32,361 ) (33,399 ) — (33,399 ) (141,442 ) — (141,442 ) (119,693 ) — (119,693 ) Gold (19,630 ) — (19,630 ) (17,019 ) — (17,019 ) (75,596 ) — (75,596 ) (72,011 ) — (72,011 ) Lead (21,743 ) — (21,743 ) (18,008 ) — (18,008 ) (82,368 ) — (82,368 ) (73,888 ) — (73,888 ) Silver (124 ) (124 ) (131 ) (131 ) — (610 ) (610 ) — (1,991 ) (1,991 ) Total By-product credits (73,734 ) (124 ) (73,858 ) (68,426 ) (131 ) (68,557 ) (299,406 ) (610 ) (300,016 ) (265,592 ) (1,991 ) (267,583 ) Cash Cost, After By-product Credits $ 17,503 $ 52,083 $ 69,586 $ 12,158 $ 44,958 $ 57,116 $ 29,147 $ 188,559 $ 217,706 $ 17,494 $ 174,933 $ 192,427 AISC, After By-product Credits $ 52,526 $ 65,458 $ 117,984 $ 50,316 $ 57,933 $ 108,249 $ 159,312 $ 232,888 $ 392,200 $ 117,636 $ 213,262 $ 330,898 Divided by ounces produced 3,657 31 3,544 33 14,155 128 12,807 156 Cash Cost, Before By-product Credits, per Ounce $ 24.95 $ 1,700 $ 22.74 1,353 $ 23.21 $ 1,483 $ 22.11 $ 1,140 By-product credits per ounce (20.16 ) (4 ) (19.31 ) (4 ) (21.15 ) $ (5 ) (20.74 ) (13 ) Cash Cost, After By-product Credits, per Ounce $ 4.79 $ 1,696 $ 3.43 $ 1,349 $ 2.06 $ 1,478 $ 1.37 $ 1,127 AISC, Before By-product Credits, per Ounce $ 34.53 $ 2,136 $ 33.51 $ 1,742 $ 32.40 $ 1,830 $ 29.93 $ 1,387 By-product credits per ounce (20.16 ) (4 ) (19.31 ) (4 ) (21.15 ) $ (5 ) (20.74 ) (13 ) AISC, After By-product Credits, per Ounce $ 14.37 2,132 $ 14.20 $ 1,738 $ 11.24 $ 1,825 $ 9.19 $ 1,374 In thousands (except per ounce amounts) Three Months Ended December 31, 2021 Three Months Ended June 30, 2022 Three Months Ended March 31, 2022 Greens Creek Lucky Friday Corporate(3) Total Silver Greens Creek Lucky Friday Corporate(3) Total Silver Greens Creek Lucky Friday Corporate and other(3) Total Silver Cost of sales and other direct production costs and depreciation, depletion and amortization $ 49,252 $ 23,251 $ 152 $ 72,655 $ 60,506 $ 30,348 $ — $ 90,854 $ 49,638 $ 29,264 $ 0 $ 78,902 Depreciation, depletion and amortization (6,300 ) (6,518 ) (152 ) (12,970 ) (13,629 ) (8,862 ) — (22,491 ) (11,420 ) (8,032 ) — (19,452 ) Treatment costs 8,655 3,636 — 12,291 8,778 4,803 — 13,581 9,096 3,677 — 12,773 Change in product inventory 236 1,351 — 1,587 (1,102 ) 503 — (599 ) 6,538 (905 ) — 5,633 Reclamation and other costs(5) (1,689 ) (199 ) — (1,888 ) (1,005 ) (256 ) — (1,261 ) (850 ) (361 ) 0 (1,211 ) Cash Cost, Before By-product Credits(1) 50,154 21,521 — 71,675 53,548 26,536 — 80,084 53,002 23,643 — 76,645 Reclamation and other costs 847 264 — 1,111 705 282 — 987 705 282 — 987 Exploration 696 — 867 1,563 929 — 769 1,698 165 — 716 881 Sustaining capital 10,123 7,413 172 17,708 14,668 8,110 99 22,877 5,956 5,562 48 11,566 General and administrative(5) — — 6,585 6,585 — — 9,692 9,692 — — 8,294 8,294 AISC, Before By-product Credits(1) 61,820 29,198 7,624 98,642 69,850 34,928 10,560 115,338 59,828 29,487 9,058 98,373 By-product credits: Zinc (25,643 ) (5,022 ) (30,665 ) (32,828 ) (8,227 ) (41,055 ) (28,651 ) (5,977 ) (34,628 ) Gold (15,712 ) 0 (15,712 ) (20,364 ) — (20,364 ) (18,583 ) — (18,583 ) Lead (7,657 ) (12,204 ) (19,861 ) (8,271 ) (14,543 ) (22,814 ) (7,966 ) (11,836 ) (19,802 ) Total By-product credits (49,012 ) (17,226 ) — (66,238 ) (61,463 ) (22,770 ) — (84,233 ) (55,200 ) (17,813 ) — (73,013 ) Cash Cost, After By-product Credits $ 1,142 $ 4,295 $ — $ 5,437 $ (7,915 ) $ 3,766 $ — $ (4,149 ) $ (2,198 ) $ 5,830 $ — $ 3,632 AISC, After By-product Credits $ 12,808 $ 11,972 $ 7,624 $ 32,404 $ 8,387 $ 12,158 $ 10,560 $ 31,105 $ 4,628 $ 11,674 $ 9,058 $ 25,360 Divided by ounces produced 2,262 955 3,217 2,410 1,226 3,636 2,430 888 3,318 Cash Cost, Before By-product Credits, per Silver Ounce $ 22.18 $ 22.54 $ 22.28 $ 22.21 $ 21.65 $ 22.03 $ 21.82 $ 26.63 $ 23.10 By-product credits per ounce (21.68 ) (18.04 ) (20.59 ) (25.50 ) (18.58 ) (23.17 ) (22.72 ) (20.06 ) (22.01 ) Cash Cost, After By-product Credits, per Silver Ounce $ 0.50 $ 4.50 $ 1.69 $ (3.29 ) $ 3.07 $ (1.14 ) $ (0.90 ) $ 6.57 $ 1.09 AISC, Before By-product Credits, per Silver Ounce $ 27.34 $ 30.58 $ 30.67 $ 28.98 $ 28.49 $ 31.72 $ 24.62 $ 33.21 $ 29.65 By-product credits per ounce (21.68 ) (18.04 ) (20.59 ) (25.50 ) (18.58 ) (23.17 ) (22.72 ) (20.06 ) (22.01 ) AISC, After By-product Credits, per Silver Ounce $ 5.66 $ 12.54 $ 10.08 $ 3.48 $ 9.91 $ 8.55 $ 1.90 $ 13.15 $ 7.64 In thousands (except per ounce amounts) Three Months Ended December 31, 2021 Three Months Ended June 30, 2022 Three Months Ended March 31, 2022 Casa Berardi Nevada Operations(2) Total Gold Casa Berardi Total Gold Casa Berardi Total Gold Cost of sales and other direct production costs and depreciation, depletion and amortization $ 57,069 $ 2,113 $ 59,182 $ 61,870 $ 61,870 $ 62,168 $ 62,168 Depreciation, depletion and amortization (19,585 ) (320 ) (19,905 ) (15,459 ) (15,459 ) (15,846 ) (15,846 ) Treatment costs 423 — 423 457 457 458 458 Change in product inventory 4,839 (956 ) 3,883 (793 ) (793 ) (563 ) (563 ) Reclamation and other costs (208 ) 1 (207 ) (209 ) (209 ) (210 ) (210 ) Cash Cost, Before By-product Credits(1) 42,538 838 43,376 45,866 45,866 46,007 46,007 Reclamation and other costs 209 327 536 209 209 210 210 Exploration 1,775 — 1,775 1,178 1,178 1,394 1,394 Sustaining capital 10,459 316 10,775 7,597 7,597 7,281 7,281 AISC, Before By-product Credits(1) 54,981 1,481 56,462 54,850 54,850 54,892 54,892 By-product credits: Silver (183 ) (21 ) (204 ) (188 ) (188 ) (166 ) (166 ) Total By-product credits (183 ) (21 ) (204 ) (188 ) (188 ) (166 ) (166 ) Cash Cost, After By-product Credits $ 42,355 $ 817 $ 43,172 $ 45,678 $ 45,678 $ 45,841 $ 45,841 AISC, After By-product Credits $ 54,798 $ 1,460 $ 56,258 $ 54,662 $ 54,662 $ 54,726 $ 54,726 Divided by gold ounces produced 37 — 37 33 33 30 30 Cash Cost, Before By-product Credits, per Gold Ounce $ 1,142 $ 1,737 $ 1,148 $ 1,377 $ 1,377 $ 1,521 $ 1,521 By-product credits per ounce (5 ) (44 ) (5 ) (6 ) (6 ) (5 ) (5 ) Cash Cost, After By-product Credits, per Gold Ounce $ 1,137 $ 1,693 $ 1,143 $ 1,371 $ 1,371 $ 1,516 $ 1,516 AISC, Before By-product Credits, per Gold Ounce $ 1,475 $ 3,073 $ 1,499 $ 1,647 $ 1,647 $ 1,815 $ 1,815 By-product credits per ounce (5 ) (44 ) (5 ) (6 ) (6 ) (5 ) (5 ) AISC, After By-product Credits, per Gold Ounce $ 1,470 $ 3,029 $ 1,494 $ 1,641 $ 1,641 $ 1,810 $ 1,810 In thousands (except per ounce amounts) Three Months Ended December 31, 2021 Three Months Ended June 30, 2022 Three Months Ended March 31, 2022 Total Silver Total Gold Total Total Silver Total Gold Total Total Silver Total Gold Total Cost of sales and other direct production costs and depreciation, depletion and amortization $ 72,655 $ 59,182 $ 131,837 $ 90,854 $ 61,870 $ 152,724 $ 78,902 $ 62,168 $ 141,070 Depreciation, depletion and amortization (12,970 ) (19,905 ) (32,875 ) (22,491 ) (15,459 ) (37,950 ) (19,452 ) (15,846 ) (35,298 ) Treatment costs 12,291 423 12,714 13,581 457 14,038 12,773 458 13,231 Change in product inventory 1,587 3,883 5,470 (599 ) (793 ) (1,392 ) 5,633 (563 ) 5,070 Reclamation and other costs (1,888 ) (207 ) (2,095 ) (1,261 ) (209 ) (1,470 ) (1,211 ) (210 ) (1,421 ) Cash Cost, Before By-product Credits(1) 71,675 43,376 115,051 80,084 45,866 125,950 76,645 46,007 122,652 Reclamation and other costs 1,111 536 1,647 987 209 1,196 987 210 1,197 Exploration 1,563 1,775 3,338 1,698 1,178 2,876 881 1,394 2,275 Sustaining capital 17,708 10,775 28,483 22,877 7,597 30,474 11,566 7,281 18,847 General and administrative 6,585 — 6,585 9,692 9,692 8,294 — 8,294 AISC, Before By-product Credits(1) 98,642 56,462 155,104 115,338 54,850 170,188 98,373 54,892 153,265 By-product credits: Zinc (30,665 ) — (30,665 ) (41,055 ) — (41,055 ) (34,628 ) (34,628 ) Gold (15,712 ) — (15,712 ) (20,364 ) — (20,364 ) (18,583 ) (18,583 ) Lead (19,861 ) — (19,861 ) (22,814 ) — (22,814 ) (19,802 ) (19,802 ) Silver (204 ) (204 ) (188 ) (188 ) (166 ) (166 ) Total By-product credits (66,238 ) (204 ) (66,442 ) (84,233 ) (188 ) (84,421 ) (73,013 ) (166 ) (73,179 ) Cash Cost, After By-product Credits $ 5,437 $ 43,172 $ 48,609 $ (4,149 ) $ 45,678 $ 41,529 $ 3,632 $ 45,841 $ 49,473 AISC, After By-product Credits $ 32,404 $ 56,258 $ 88,662 $ 31,105 $ 54,662 $ 85,767 $ 25,360 $ 54,726 $ 80,086 Divided by ounces produced 3,217 37 3,636 33 3,318 30 Cash Cost, Before By-product Credits, per Ounce $ 22.28 $ 1,148 $ 22.03 1,377 $ 23.10 $ 1,521 By-product credits per ounce (20.59 ) (5 ) (23.17 ) (6 ) (22.01 ) (5 ) Cash Cost, After By-product Credits, per Ounce $ 1.69 $ 1,143 $ (1.14 ) $ 1,371 $ 1.09 $ 1,516 AISC, Before By-product Credits, per Ounce $ 30.67 $ 1,499 $ 31.72 $ 1,647 $ 29.65 $ 1,815 By-product credits per ounce (20.59 ) (5 ) (23.17 ) (6 ) (22.01 ) (5 ) AISC, After By-product Credits, per Ounce $ 10.08 $ 1,494 $ 8.55 $ 1,641 $ 7.64 $ 1,810 In thousands (except per ounce amounts) Estimate for Twelve Months Ended December 31, 2023 Greens Creek Lucky Friday Keno Hill Corporate(3) Total Silver Total cost of sales $ 245,000 $ 128,000 $ 40,000 $ 413,000 Depreciation, depletion and amortization (46,000 ) (37,900 ) (6,800 ) (90,700 ) Treatment costs 43,700 15,375 5,150 64,225 Change in product inventory (5,100 ) (750 ) 1,000 (4,850 ) Reclamation and other costs 1,000 1,000 750 2,750 Cash Cost, Before By-product Credits(1) 238,600 105,725 40,100 384,425 Reclamation and other costs 2,800 1,100 — 3,900 Exploration 5,900 — 2,600 2,250 10,750 Sustaining capital 48,500 30,200 550 79,250 General and administrative — — — 44,000 44,000 AISC, Before By-product Credits(1) 295,800 137,025 43,250 46,250 522,325 By-product credits: Zinc (113,500 ) (29,900 ) (2,400 ) (145,800 ) Gold (90,100 ) — — (90,100 ) Lead (34,800 ) (64,700 ) (4,500 ) (104,000 ) Total By-product credits (238,400 ) (94,600 ) (6,900 ) — (339,900 ) Cash Cost, After By-product Credits $ 200 $ 11,125 $ 33,200 $ — $ 44,525 AISC, After By-product Credits $ 57,400 $ 42,425 $ 36,350 $ 46,250 $ 182,425 Divided by silver ounces produced 9,250 4,750 2,750 16,750 Cash Cost, Before By-product Credits, per Silver Ounce $ 25.79 $ 22.26 $ 14.58 $ 22.95 By-product credits per silver ounce (25.77 ) (19.92 ) (2.51 ) (20.29 ) Cash Cost, After By-product Credits, per Silver Ounce $ 0.02 $ 2.34 $ 12.07 $ 2.66 AISC, Before By-product Credits, per Silver Ounce $ 31.98 $ 28.85 $ 15.73 $ 31.18 By-product credits per silver ounce (25.77 ) (19.92 ) (2.51 ) (20.29 ) AISC, After By-product Credits, per Silver Ounce $ 6.21 $ 8.93 $ 13.22 $ 10.89 In thousands (except per ounce amounts) Estimate for Twelve Months Ended December 31, 2023 Casa Berardi Total Gold Total cost of sales $ 220,000 $ 220,000 Depreciation, depletion and amortization (52,800 ) (52,800 ) Treatment costs 300 300 Change in product inventory (1,300 ) (1,300 ) Reclamation and other costs 500 500 Cash Cost, Before By-product Credits(1) 166,700 166,700 Reclamation and other costs 800 800 Exploration 5,400 5,400 Sustaining capital 52,200 52,200 AISC, Before By-product Credits(1) 225,100 225,100 By-product credits: Silver (600 ) (600 ) Total By-product credits (600 ) (600 ) Cash Cost, After By-product Credits $ 166,100 $ 166,100 AISC, After By-product Credits $ 224,500 $ 224,500 Divided by gold ounces produced 112.5 112.5 Cash Cost, Before By-product Credits, per Gold Ounce $ 1,482 $ 1,482 By-product credits per gold ounce (5 ) (5 ) Cash Cost, After By-product Credits, per Gold Ounce $ 1,477 $ 1,477 AISC, Before By-product Credits, per Gold Ounce $ 2,001 $ 2,001 By-product credits per gold ounce (5 ) (5 ) AISC, After By-product Credits, per Gold Ounce $ 1,996 $ 1,996 In thousands (except per ounce amounts) Estimate for Twelve Months Ended December 31, 2023 Total Silver Total Gold Total Total cost of sales $ 413,000 $ 220,000 $ 633,000 Depreciation, depletion and amortization (90,700 ) (52,800 ) (143,500 ) Treatment costs 64,225 300 64,525 Change in product inventory (4,850 ) (1,300 ) (6,150 ) Reclamation and other costs 2,750 500 3,250 Cash Cost, Before By-product Credits(1) 384,425 166,700 551,125 Reclamation and other costs 3,900 800 4,700 Exploration 10,750 5,400 16,150 Sustaining capital 79,250 52,200 131,450 General and administrative 44,000 — 44,000 AISC, Before By-product Credits(1) 522,325 225,100 747,425 By-product credits: Zinc (145,800 ) — (145,800 ) Gold (90,100 ) — (90,100 ) Lead (104,000 ) — (104,000 ) Silver (600 ) (600 ) Total By-product credits (339,900 ) (600 ) (340,500 ) Cash Cost, After By-product Credits $ 44,525 $ 166,100 $ 210,625 AISC, After By-product Credits $ 182,425 $ 224,500 $ 406,925 Divided by ounces produced 16,750 112.5 Cash Cost, Before By-product Credits, per Ounce $ 22.95 $ 1,482 By-product credits per ounce (20.29 ) (5 ) Cash Cost, After By-product Credits, per Ounce $ 2.66 $ 1,477 AISC, Before By-product Credits, per Ounce $ 31.18 $ 2,001 By-product credits per ounce (20.29 ) (5 ) AISC, After By-product Credits, per Ounce $ 10.89 $ 1,996 (1) Includes all direct and indirect operating costs related to the physical activities of producing metals, including mining, processing and other plant costs, third-party refining and marketing expense, non-discretionary on-site general and administrative costs, royalties and mining production taxes, before by-product revenues earned from all metals other than the primary metal produced at each operation. AISC, Before By-product Credits also includes on-site exploration, reclamation, and sustaining capital costs. (2) Production was suspended at the Hollister mine in the third quarter of 2019 and at the Midas mine and Aurora mill in late 2019, and at the Midas mill and Fire Creek mine in mid-2021. Suspension-related costs at Nevada Operations totaling $19.7 million for 2022 and $20.4 million for 2021 are included in a separate line item on our consolidated statements of operations and excluded from the calculations of cost of sales and other direct production costs and depreciation, depletion and amortization and Cash Cost and AISC, After By-product Credits, per Gold Ounce. (3) AISC, Before By-product Credits for our consolidated silver properties includes corporate costs for general and administrative expense, exploration and sustaining capital. Reconciliation of Net Income (Loss) (GAAP) and Debt (GAAP) to Adjusted EBITDA (non-GAAP) and Net Debt (non-GAAP) This release refers to the non-GAAP measures of adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA"), which is a measure of our operating performance, and net debt to adjusted EBITDA for the last 12 months (or "LTM adjusted EBITDA"), which is a measure of our ability to service our debt. Adjusted EBITDA is calculated as net income (loss) before the following items: interest expense, income and mining taxes, depreciation, depletion, and amortization expense, ramp-up and suspension costs, gains and losses on disposition of properties, plants, equipment and mineral interests, foreign exchange gains and losses, unrealized gains and losses on derivative contracts, interest and other income, unrealized gains on investments, provisions for environmental matters, stock-based compensation, provisional price gains and losses, the grant of common shares to the Hecla Charitable Foundation, adjustments of inventory to net realizable value. Net debt is calculated as total debt, which consists of the liability balances for our Senior Notes, capital leases, and other notes payable, less the total of our cash and cash equivalents and short-term investments. Management believes that, when presented in conjunction with comparable GAAP measures, adjusted EBITDA and net debt to LTM adjusted EBITDA are useful to investors in evaluating our operating performance and ability to meet our debt obligations. The following table reconciles net loss and debt to adjusted EBITDA and net debt: Dollars are in thousands 4Q-2022 3Q-2022 2Q-2022 1Q-2022 4Q-2021 FY 2022 FY 2021 Net (loss) income $ (4,452 ) $ (23,526 ) $ (13,523 ) $ 4,153 $ 11,875 $ (37,348 ) $ 35,095 Interest expense 11,008 10,874 10,505 10,406 10,461 42,793 41,945 Income and mining taxes (3,924 ) (9,527 ) 254 5,631 (25,645 ) (7,566 ) (29,569 ) Depreciation, depletion and amortization 37,576 32,992 38,072 35,298 32,875 143,938 171,793 Ramp-up and suspension costs 7,575 5,092 5,242 6,205 5,998 24,114 23,012 Loss (gain) on disposition of properties, plants, equipment, and mineral interests 19 5 (8 ) 326 16 87 Foreign exchange loss (gain) 900 (5,667 ) (4,482 ) 2,038 (393 ) (7,211 ) (417 ) Unrealized loss (gain) on derivative contracts (864 ) (873 ) 689 204 25,840 (844 ) 11,903 Provisional price gain (625 ) 6,625 15,807 (968 ) (5,648 ) 20,839 (9,349 ) Provision for closed operations and environmental matters 3,741 1,781 1,628 1,643 3,693 8,793 17,964 Stock-based compensation 1,714 1,773 1,254 1,271 1,307 6,012 6,081 Unrealized (gain) loss on investments (9,121 ) 5,114 15,739 (6,100 ) (2,822 ) 5,632 4,295 Adjustments of inventory to net realizable value 487 1,405 754 0 — 2,646 6,524 Monetization of zinc hedges 16,664 16,664 Other 1,582 473 (1,470 ) (1,571 ) 382 (986 ) (584 ) Adjusted EBITDA $ 62,261 $ 26,555 $ 70,474 $ 58,202 $ 58,249 $ 217,492 $ 278,780 Total debt $ 517,742 $ 515,871 Less: Cash and cash equivalents 104,743 210,010 Net debt $ 412,999 $ 305,861 Net debt/LTM adjusted EBITDA (non-GAAP) 1.9 1.1 Reconciliation of Net (Loss) Income Applicable to Common Stockholders (GAAP) to Adjusted Net (Loss) Income Applicable to Common Shareholders (non-GAAP) This release refers to a non-GAAP measure of adjusted net income (loss) applicable to common stockholders and adjusted net income (loss) per share, which are indicators of our performance. They exclude certain impacts which are of a nature which we believe are not reflective of our underlying performance. Management believes that adjusted net income (loss) per common share provides investors with the ability to better evaluate our underlying operating performance. Dollars are in thousands 4Q-2022 3Q-2022 2Q-2022 1Q-2022 4Q-2021 FY 2022 FY 2021 Net (loss) income applicable to common stockholders (GAAP) $ (4,590 ) $ (23,664 ) $ (13,661 ) $ 4,015 $ 11,737 $ (37,900 ) $ 34,543 Adjusted for items below: Derivative contracts losses (gains) (864 ) (873 ) 689 204 25,840 $ (844 ) (32,655 ) Provisional pricing losses (gains) (625 ) 6,625 15,807 (968 ) (5,648 ) $ 20,839 (9,349 ) Unrealized losses (gains) on equity investments (9,117 ) 5,110 15,739 (6,100 ) (2,822 ) $ 5,632 (4,295 ) Environmental accruals 2,860 — — 14 — $ 2,874 2,882 Foreign exchange (gain) loss 900 (5,667 ) (4,482 ) 2,038 (393 ) $ (7,211 ) (417 ) Ramp-up and suspension Costs 7,575 5,092 5,242 6,205 5,998 $ 24,114 23,012 Loss (gain) on disposition of properties, plants, equipment and mineral interests — 19 5 (8 ) 326 $ 16 87 Adjustments of inventory to net realizable value 487 1,405 754 — — $ 2,646 6,524 Monetization of Zinc Hedges 16,664 — — — — $ 16,664 — Other 939 — — — — $ 939 — Adjustment income (loss) applicable to common stockholders $ 14,229 $ (11,953 ) $ 20,093 $ 5,400 $ 35,038 $ 27,769 $ 20,332 Weighted average shares – basic 596,959 554,531 539,401 538,490 538,124 557,344 536,192 Weighted average shares – diluted 596,959 554,531 539,401 544,061 543,134 557,344 542,176 Basic adjusted net income (loss) per common stock (in cents) 0.02 (0.02 ) 0.04 0.01 0.07 0.05 0.04 Diluted adjusted net income (loss) per common stock (in cents) 0.02 (0.02 ) 0.04 0.01 0.06 0.05 0.04 Reconciliation of Cash Provided by Operating Activities (GAAP) to Free Cash Flow (non-GAAP) This release refers to a non-GAAP measure of free cash flow, calculated as cash provided by operating activities, less additions to properties, plants, equipment and mineral interests. Management believes that, when presented in conjunction with comparable GAAP measures, free cash flow is useful to investors in evaluating our operating performance. The following table reconciles cash provided by operating activities to free cash flow: Dollars are in thousands Three Months Ended December 31, 2022 Twelve Months Ended December 31, 2022 2022 2021 2022 2021 Cash provided by operating activities $ 36,120 $ 53,355 $ 89,890 $ 220,337 Less: Additions to properties, plants equipment and mineral interests $ (56,140 ) $ (28,838 ) $ (149,378 ) $ (109,048 ) Free cash flow $ (20,020 ) $ 24,517 $ (59,488 ) $ 111,289 TABLE A Mineral Reserves – 12/31/2022(1) Proven Reserves(1) Asset Tons (000) Silver (oz/ton) Gold (oz/ton) Lead % Zinc % Silver (000 oz) Gold (000 oz) Lead Tons Zinc Tons Greens Creek(2,3) 7 16.1 0.07 2.3 5.4 108 0.4 150 360 Lucky Friday(2,4) 4,734 13.8 - 8.6 3.7 64,638 - 404,160 174,510 Casa Berardi Underground(2,5) 552 - 0.17 - - - 95 - - Casa Berardi Open Pit(2,5) 4,410 - 0.09 - - - 417 - - Keno Hill(2,6) - - - - - - - - - Total 9,703 64,746 512 404,310 174,870 Probable Reserves(7) Asset Tons (000) Silver (oz/ton) Gold (oz/ton) Lead % Zinc % Silver (000 oz) Gold (000 oz) Lead (Tons) Zinc (Tons) Greens Creek(2,3) 10,668 10.9 0.09 2.5 6.5 116,748 935 264,600 694,800 Lucky Friday(2,4) 840 12.8 - 8.1 3.2 9,978 - 63,510 25,030 Casa Berardi Underground(2,5) 989 - 0.17 - - - 166 - - Casa Berardi Open Pit(2,5) 12,434 - 0.08 - - - 936 - - Keno Hill(2,6) 2,197 22.5 0.01 2.4 2.2 49,473 13 52,520 49,320 Total 27,128 176,199 2,050 380,630 769,150 Proven and Probable Reserves Asset Tons (000) Silver (oz/ton) Gold (oz/ton) Lead % Zinc % Silver (000 oz) Gold (000 oz) Lead (Tons) Zinc (Tons) Greens Creek(2,3) 10,675 10.9 0.09 2.5 6.5 116,856 935 264,750 695,160 Lucky Friday(2,4) 5,574 13.4 - 8.4 3.6 74,616 - 467,670 199,530 Casa Berardi Underground(2,5) 1,541 - 0.17 - - - 261 - - Casa Berardi Open Pit(2,5) 16,844 - 0.08 - - - 1,353 - - Keno Hill(2,6) 2,197 22.5 0.01 2.4 2.2 49,473 13 52,520 49,320 Total 36,829 240,945 2,562 784,940 944,020 (1) The term “reserve” means an estimate of tonnage and grade or quality of indicated and measured mineral resources that, in the opinion of the qualified person, can be the basis of an economically viable project. More specifically, it is the economically mineable part of a measured or indicated mineral resource, which includes diluting materials and allowances for losses that may occur when the material is mined or extracted. The term “proven reserves” means the economically mineable part of a measured mineral resource and can only result from conversion of a measured mineral resource. See footnotes 8 and 9 below. (2) Mineral reserves are based on $17/oz silver, $1600/oz gold, $0.90/lb lead, $1.15/lb zinc, unless otherwise stated. All Mineral Reserves are reported in-situ with estimates of mining dilution and mining loss. (3) The reserve NSR cut-off values for Greens Creek are $210/ton for all zones except the Gallagher Zone at $215/ton; metallurgical recoveries (actual 2022): 81% for silver, 72% for gold, 82% for lead, and 89% for zinc. (4) The reserve NSR cut-off values for Lucky Friday are $241.34/ton for the 30 Vein and $268.67/ton for the Intermediate Veins; metallurgical recoveries (actual 2022): 95% for silver, 95% for lead, and 88% for zinc. (5) The average reserve cut-off grades at Casa Berardi are 0.12 oz/ton gold underground and 0.04 oz/ton gold for open pit. Metallurgical recovery (actual 2022): 87% for gold; US$/CAN$ exchange rate: 1:1.3. (6) The reserve NSR cut-off value at Keno Hill is $244.24/ton (CAN$350/tonne), Metallurgical recovery: 93% for silver, 25% for gold, 93% for lead, 72% for zinc; US$/CAN$ exchange rate: 1:1.3. (7) The term “probable reserves” means the economically mineable part of an indicated and, in some cases, a measured mineral resource. See footnotes 9 and 10 below. Totals may not represent the sum of parts due to rounding. Mineral Resources – 12/31/2022(8) Measured Resources(9) Asset Tons (000) Silver (oz/ton) Gold (oz/ton) Lead % Zinc % Copper % Silver (000 oz) Gold (000 oz) Lead (Tons) Zinc (Tons) Copper (Tons) Greens Creek(12,13) - - - - - - - - - - - Lucky Friday(12,14) 6,237 7.8 - 5.4 2.6 - 48,551 - 335,850 161,000 - Casa Berardi Underground(12,15) 2,440 - 0.22 - - - - 530 - - - Casa Berardi Open Pit(12,15) 483 - 0.04 - - - - 20 - - - Keno Hill(12,16) - - - - - - - - - - - San Sebastian - Oxide(17) - - - - - - - - - - - San Sebastian - Sulfide(17) - - - - - - - - - - - Fire Creek(18,19) - - - - - - - - - - - Hollister(18,20) 18 4.9 0.59 - - - 87 10 - - - Midas(18,21) 2 7.6 0.68 - - - 14 1 - - - Heva(22) - - - - - - - - - - - Hosco(22) - - - - - - - - - - - Star(12,23) - - - - - - - - - - - Total 9,180 48,652 561 335,850 161,000 - Indicated Resources(10) Asset Tons (000) Silver (oz/ton) Gold (oz/ton) Lead % Zinc % Copper % Silver (000 oz) Gold (000 oz) Lead (Tons) Zinc (Tons) Copper (Tons) Greens Creek(12,13) 8,421 12.9 0.10 2.9 8.0 - 108,717 810 245,990 675,740 - Lucky Friday(12,14) 1,194 8.0 - 5.4 2.2 - 9,581 - 64,390 26,200 - Casa Berardi Underground(12,15) 3,870 - 0.17 - - - - 660 - - - Casa Berardi Open Pit(12,15) 1,323 - 0.04 - - - - 48 - - - Keno Hill(12,16) 4,061 8.0 0.007 1.0 4.0 - 32,288 29 39,540 163,130 - San Sebastian - Oxide(17) 1,453 6.5 0.09 - - - 9,430 135 - - - San Sebastian - Sulfide(17) 1,187 5.5 0.01 1.9 2.9 1.2 6,579 16 22,420 34,100 14,650 Fire Creek(18,19) 112 1.1 0.53 - - - 122 59 - - - Hollister(18,20) 70 1.9 0.58 - - - 130 40 - - - Midas(18,21) 76 5.7 0.42 - - - 430 32 - - - Heva(22) 1,266 - 0.06 - - - - 76 - - - Hosco(22) 29,287 - 0.04 - - - - 1,202 - - - Star(12,23) 1,068 3.0 - 6.4 7.7 - 3,177 - 67,970 82,040 - Total 53,388 170,454 3,107 440,310 981,210 14,650 Measured & Indicated Resources Asset Tons (000) Silver (oz/ton) Gold (oz/ton) Lead % Zinc % Copper % Silver (000 oz) Gold (000 oz) Lead (Tons) Zinc (Tons) Copper (Tons) Greens Creek(12,13) 8,421 12.9 0.10 2.9 8.0 - 108,717 810 245,990 675,740 - Lucky Friday(12,14) 7,431 7.8 - 5.4 2.5 - 58,132 - 400,240 187,200 - Casa Berardi Underground(12,15) 6,310 - 0.19 - - - - 1,190 - - - Casa Berardi Open Pit(12,15) 1,806 - 0.04 - - - - 67 - - - Keno Hill(12,16) 4,061 8.0 0.007 1.0 4.0 - 32,288 29 39,540 163,130 - San Sebastian - Oxide(17) 1,453 6.5 0.09 - - - 9,430 135 - - - San Sebastian - Sulfide(17) 1,187 5.5 0.01 1.9 2.9 1.2 6,579 16 22,420 34,100 14,650 Fire Creek(18,19) 112 1.1 0.53 - - - 122 59 - - - Hollister(18,20) 88 2.5 0.58 - - - 217 51 - - - Midas(18,21) 78 5.7 0.43 - - - 444 33 - - - Heva(22) 1,266 - 0.06 - - - - 76 - - - Hosco(22) 29,287 - 0.04 - - - - 1,202 - - - Star(12,23) 1,068 3.0 - 6.4 7.7 - 3,177 - 67,970 82,040 - Total 62,568 219,106 3,668 776,160 1,142,210 14,650 Inferred Resources(11) Asset Tons (000) Silver (oz/ton) Gold (oz/ton) Lead % Zinc % Copper % Silver (000 oz) Gold (000 oz) Lead (Tons) Zinc (Tons) Copper (Tons) Greens Creek(12,13) 2,383 12.1 0.07 2.8 6.9 - 28,949 178 67,400 164,080 - Lucky Friday(12,14) 3,592 8.7 - 6.3 2.4 - 31,264 - 224,670 84,700 - Casa Berardi Underground(12,15) 2,221 - 0.19 - - - - 430 - - - Casa Berardi Open Pit(12,15) 7,828 - 0.05 - - - - 389 - - - Keno Hill(12,16) 2,441 10.4 0.003 0.9 2.1 - 25,478 8 22,380 51,000 - San Sebastian - Oxide(17) 3,490 6.4 0.05 - - - 22,353 182 - - - San Sebastian - Sulfide(17) 385 4.2 0.01 1.6 2.3 0.9 1,606 5 6,070 8,830 3,330 Fire Creek(18,19) 765 0.5 0.51 - - - 394 392 - - - Fire Creek - Open Pit(24) 74,584 0.1 0.03 - - - 5,232 2,178 - - - Hollister(18,20) 642 3.0 0.42 - - - 1,916 273 - - - Midas(18,21) 1,232 6.3 0.50 - - - 7,723 615 - - - Heva(22) 2,787 - 0.08 - - - - 216 - - - Hosco(22) 17,726 - 0.04 - - - - 663 - - - Star(12,23) 2,851 3.1 - 5.9 5.9 - 8,795 - 168,180 166,930 - San Juan Silver(12,25) 2,570 11.3 0.01 1.4 1.1 - 38,203 34 49,400 39,850 - Monte Cristo(26) 913 0.3 0.14 - - - 271 131 - - - Rock Creek(12,27) 100,086 1.5 - - - 0.7 148,736 - - - 658,680 Montanore(12,28) 112,185 1.6 - - - 0.7 183,346 - - - 759,420 Total 338,681 504,266 5,694 538,100 515,390 1,421,430 Note: All estimates are in-situ except for the proven reserves at Greens Creek which are in surface stockpiles. Mineral resources are exclusive of reserves. (8) The term "mineral resources" means a concentration or occurrence of material of economic interest in or on the Earth's crust in such form, grade or quality, and quantity that there are reasonable prospects for economic extraction. A mineral resource is a reasonable estimate of mineralization, taking into account relevant factors such as cut-off grade, likely mining dimensions, location or continuity, that, with the assumed and justifiable technical and economic conditions, is likely to, in whole or in part, become economically extractable. It is not merely an inventory of all mineralization drilled or sampled. (9) The term "measured resources" means that part of a mineral resource for which quantity and grade or quality are estimated on the basis of conclusive geological evidence and sampling. The level of geological certainty associated with a measured mineral resource is sufficient to allow a qualified person to apply modifying factors in sufficient detail to support detailed mine planning and final evaluation of the economic viability of the deposit. Because a measured mineral resource has a higher level of confidence than the level of confidence of either an indicated mineral resource or an inferred mineral resource, a measured mineral resource may be converted to a proven mineral reserve or to a probable mineral reserve. (10) The term "indicated resources" means that part of a mineral resource for which quantity and grade or quality are estimated on the basis of adequate geological evidence and sampling. The level of geological certainty associated with an indicated mineral resource is sufficient to allow a qualified person to apply modifying factors in sufficient detail to support mine planning and evaluation of the economic viability of the deposit. Because an indicated mineral resource has a lower level of confidence than the level of confidence of a measured mineral resource, an indicated mineral resource may only be converted to a probable mineral reserve. (11) The term "inferred resources" means that part of a mineral resource for which quantity and grade or quality are estimated on the basis of limited geological evidence and sampling. The level of geological uncertainty associated with an inferred mineral resource is too high to apply relevant technical and economic factors likely to influence the prospects of economic extraction in a manner useful for evaluation of economic viability. Because an inferred mineral resource has the lowest level of geological confidence of all mineral resources, which prevents the application of the modifying factors in a manner useful for evaluation of economic viability, an inferred mineral resource may not be considered when assessing the economic viability of a mining project, and may not be converted to a mineral reserve. (12) Mineral resources are based on $1700/oz gold, $21/oz silver, $1.15/lb lead, $1.35/lb zinc and $3.00/lb copper, unless otherwise stated. (13) The resource NSR cut-off values for Greens Creek are $210/ton for all zones except the Gallagher Zone at $215/ton; metallurgical recoveries (actual 2022): 81% for silver, 72% for gold, 82% for lead, and 89% for zinc. (14) The resource NSR cut-off values for Lucky Friday are $200.57/ton for the 30 Vein, $227.90/ton for the Intermediate Veins and $198.48/ton for the Lucky Friday Veins; metallurgical recoveries (actual 2022): 95% for silver, 95% for lead, and 88% for zinc. (15) The average resource cut-off grades at Casa Berardi are 0.11 oz/ton gold for underground and 0.034 oz/ton gold for open pit; metallurgical recovery (actual 2022): 87% for gold; US$/CAN$ exchange rate: 1:1.3. (16) The resource NSR cut-off value at Keno Hill is $129.10/ton (CAN$185/tonne); using minimum width of 4.9 feet (1.5m); metallurgical recovery: 93% for silver, 25% for gold, 93% for lead, 72% for zinc; US$/CAN$ exchange rate: 1:1.3 (17) Indicated resources for most zones at San Sebastian based on $1500/oz gold, $21/oz silver, $1.15/lb lead, $1.35/lb zinc and $3.00/lb copper using a cut-off grade of $90.72/ton ($100/tonne); $1700/oz gold used for Toro, Bronco, and Tigre zones. Metallurgical recoveries based on grade dependent recovery curves: recoveries at the mean resource grade average 89% for silver and 84% for gold for oxide material and 85% for silver, 83% for gold, 81% for lead, 86% for zinc, and 83% for copper for sulfide material. Resources reported at a minimum mining width of 8.2 feet (2.5m) for Middle Vein, North Vein, and East Francine, 6.5ft (1.98m) for El Toro, El Bronco, and El Tigre, and 4.9 feet (1.5 m) for Hugh Zone and Andrea. (18) Mineral resources for Fire Creek, Hollister and Midas are reported using $1500/oz gold and $21/oz silver prices, unless otherwise noted. A minimum mining width is defined as four feet or the vein true thickness plus two feet, whichever is greater. (19) Fire Creek mineral resources are reported at a gold equivalent cut-off grade of 0.283 oz/ton. Metallurgical recoveries: 90% for gold and 70% for silver. (20) Hollister mineral resources, including the Hatter Graben are reported at a gold equivalent cut-off grade of 0.238 oz/ton. Metallurgical recoveries: 88% for gold and 66% for silver (21) Midas mineral resources are reported at a gold equivalent cut-off grade of 0.237 oz/ton. Metallurgical recoveries: 90% for gold and 70% for silver. A gold-equivalent cut-off grade of 0.1 oz/ton and a gold price of $1700/oz used for Sinter Zone with resources undiluted. (22) Measured, indicated and inferred resources at Heva and Hosco are based on $1,500/oz gold. Resources are without dilution or material loss at a gold cut-off grade of 0.01 oz/ton for open pit and 0.088 oz/ton for underground. Metallurgical recovery: Heva: 95% for gold, Hosco: 87.7% for gold. (23) Indicated and Inferred resources at the Star property are reported using a minimum mining width of 4.3 feet and an NSR cut-off value of $150/ton; Metallurgical recovery: 93% for silver, 93% for lead, and 87% for zinc. (24) Inferred open-pit resources for Fire Creek calculated November 30, 2017 using gold and silver recoveries of 65% and 30% for oxide material and 60% and 25% for mixed oxide-sulfide material. Indicated Resources reclassified as Inferred in 2019. Open pit resources are calculated at $1400 gold and $19.83 silver and cut-off grade of 0.01 Au Equivalent oz/ton and is inclusive of 10% mining dilution and 5% ore loss. Open pit mineral resources exclusive of underground mineral resources. NI43-101 Technical Report for the Fire Creek Project, Lander County, Nevada; Effective Date March 31, 2018; prepared by Practical Mining LLC, Mark Odell, P.E. for Hecla Mining Company, June 28, 2018. (25) Inferred resources reported at a minimum mining width of 6.0 feet for Bulldog and an NSR cut-off value of $175/ton and 5.0 feet for Equity and North Amethyst veins at an NSR cut-off value of $100/ton; Metallurgical recoveries based on grade dependent recovery curves; metal recoveries at the mean resource grade average 89% silver, 74% lead, and 81% zinc for the Bulldog and a constant 85% gold and 85% silver for North Amethyst and Equity. (26) Inferred resource at Monte Cristo reported at a minimum mining width of 5.0 feet; resources based on $1400 Au, $26.50 Ag using a 0.06 oz/ton gold cut-off grade. Metallurgical recovery: 90% for gold and 90% silver. (27) Inferred resource at Rock Creek reported at a minimum thickness of 15 feet and an NSR cut-off value of $24.50/ton; Metallurgical recoveries: 88% for silver and 92% for copper. Resources adjusted based on mining restrictions as defined by U.S. Forest Service, Kootenai National Forest in the June 2003 'Record of Decision, Rock Creek Project' (28) Inferred resource at Montanore reported at a minimum thickness of 15 feet and an NSR cut-off value of $24.50/ton NSR; Metallurgical recoveries: 88% for silver and 92% copper. Resources adjusted based on mining restrictions as defined by U.S. Forest Service, Kootenai National Forest, Montana DEQ in December 2015 'Joint Final EIS, Montanore Project' and the February 2016 U.S Forest Service - Kootenai National Forest 'Record of Decision, Montanore Project'. Totals may not represent the sum of parts due to rounding Category: Earnings View source version on businesswire.com: https://www.businesswire.com/news/home/20230215005365/en/Contacts Anvita M. Patil Vice President - Investor Relations and Treasurer Cheryl Turner Communications Coordinator 800-HECLA91 (800-432-5291) Investor Relations Email: hmc-info@hecla-mining.com Website: http://www.hecla-mining.com Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions.
Hecla Reports Fourth Quarter and Full-Year 2022 Results By: Hecla Mining Company via Business Wire February 15, 2023 at 06:30 AM EST 10% silver production growth in 2022; Expect 18% growth in 2023 and 35% by 2025; Silver cost guidance achieved with 2023 set at similar levels Hecla Mining Company (NYSE:HL) today announced fourth quarter and full-year 2022 financial and operating results. ANNUAL HIGHLIGHTS Strategic Completed the acquisition of Alexco Resource Corp., adding nearly 50 million ounces of silver reserves; highest-grade and largest primary silver reserves in Canada. Operational Record silver reserves of 241 million ounces, gold reserves of 2.6 million ounces. Produced 14.2 million ounces of silver, Hecla's second highest, and 175,807 ounces of gold. Record lead production of 49 thousand tons and zinc production of 65 thousand tons. Achieved silver cost guidance with total silver cost of sales of $349.3 million and all-in sustaining cost after by-product credits ("AISC") of $11.25 per silver ounce.4 Increased Lucky Friday silver production by 24% to 4.4 million ounces using the Underhand Closed Bench (UCB) mining method. Achieved record mill throughput milestones at all three operations. Financial Reported sales of $718.9 million with almost 70% from Greens Creek and Lucky Friday. Net loss applicable to common stockholders of $37.9 million or $0.07 per share, and adjusted net income of $27.8 million or $0.05 per share.5 Adjusted EBITDA of $217.5 million, net debt to adjusted EBITDA ratio of 1.9.1 Strong balance sheet with $104.7 million in cash and cash equivalents with approximately $245 million in available liquidity. Dividends of $12.9 million, or 14% of cash flow from operations. Environmental, Social, Governance Strong safety performance with an All-Injury Frequency Rate of 1.22, which equals prior Company record and is 42% below the U.S. average. The San Sebastian mine received the 2022 Environmental and Sustainability Excellence Award given by AEMA. Lucky Friday received the SME Murray Innovation Award for 2023 for the pioneering UCB mining method. Ratified a 6-year contract agreement with the Union at the Lucky Friday. “Hecla is the world’s fastest growing established silver company,” said Phillips S. Baker Jr., President and CEO. “This growth has been built on the strong foundation of Greens Creek, the United States’ largest silver mine, and the Lucky Friday, a mine in production for 80 years whose throughput this year was the most in its history. Added to these growing mines is Keno Hill, one of the world’s highest grade silver mines, which we expect to be in production in the second half of this year." Baker continued, “In 2022, we achieved our largest silver reserves and second highest silver production in our history, and expect to set new records in 2023 and 2024. If our growth continues as expected, Hecla would produce not only 40% of all the silver mined in the US, but also 40% of all silver mined in Canada. In 2022, we had among the best silver margins in the industry with AISC a little more than half of our realized silver price allowing us to maintain a strong balance sheet even after significant investment in the Lucky Friday and Keno Hill. We expect silver AISC in 2023 to be about the same as 2022 despite inflationary pressures and increased investment in all our mines. With our largest silver reserves, our growing production in Canada and the US, and strong silver margins, we believe our shareholders are well-positioned for higher silver prices as the transition to renewables increases the need for silver as an energy metal." FINANCIAL OVERVIEW In the following table and throughout this release, "total cost of sales" is comprised of cost of sales and other direct production costs and depreciation, depletion and amortization. In Thousands unless stated otherwise 4Q-2022 3Q-2022 2Q-2022 1Q-2022 4Q-2021 FY 2022 FY 2021 FINANCIAL AND PRODUCTION SUMMARY Sales $ 194,825 $ 146,339 $ 191,242 $ 186,499 $ 185,078 $ 718,905 $ 807,473 Total cost of sales $ 169,807 $ 137,892 $ 153,979 $ 141,070 $ 131,837 $ 602,749 $ 589,672 Gross profit $ 25,018 $ 8,447 $ 37,263 $ 45,429 $ 53,241 $ 116,156 $ 217,801 Income (loss) applicable to common stockholders $ (4,590 ) $ (23,664 ) $ (13,661 ) $ 4,015 $ 11,737 $ (37,900 ) $ 34,543 Basic income (loss) per common share (in dollars) $ (0.01 ) $ (0.04 ) $ (0.03 ) $ 0.01 $ 0.02 $ (0.07 ) $ 0.06 Adjusted EBITDA1 $ 62,261 $ 26,554 $ 70,474 $ 58,202 $ 58,249 $ 217,492 $ 278,780 Net Debt to Adjusted EBITDA1 1.9 1.1 Cash provided by operating activities $ 36,120 $ (24,322 ) $ 40,183 $ 37,909 $ 53,355 $ 89,890 $ 220,337 Capital Expenditures $ (56,140 ) $ (37,430 ) $ (34,329 ) $ (21,478 ) $ (28,838 ) $ (149,378 ) $ (109,048 ) Free Cash Flow2 $ (20,020 ) $ (61,752 ) $ 5,854 $ 16,431 $ 24,517 $ (59,488 ) $ 111,289 Silver ounces produced 3,663,433 3,549,392 3,645,454 3,324,708 3,226,927 14,182,987 12,887,240 Silver payable ounces sold 3,756,701 2,479,724 3,387,909 2,687,261 2,606,622 12,311,595 11,633,802 Gold ounces produced 43,634 44,747 45,719 41,707 47,977 175,807 201,327 Gold payable ounces sold 40,097 40,443 44,225 41,053 44,156 165,818 201,610 Cash Costs and AISC, each after by-product credits Silver cash costs per ounce3 $ 4.79 $ 3.43 $ (1.14 ) $ 1.09 $ 1.69 $ 2.06 $ 1.37 Silver AISC per ounce4 $ 14.36 $ 14.20 $ 8.55 $ 7.64 $ 10.08 $ 11.25 $ 9.19 Gold cash costs per ounce3 $ 1,696 $ 1,349 $ 1,371 $ 1,516 $ 1,143 $ 1,478 $ 1,127 Gold AISC per ounce4 $ 2,132 $ 1,738 $ 1,641 $ 1,810 $ 1,494 $ 1,825 $ 1,374 Realized Prices Silver, $/ounce $ 22.03 $ 18.30 $ 20.68 $ 24.68 $ 23.49 $ 21.53 $ 25.24 Gold, $/ounce $ 1,757 $ 1,713 $ 1,855 $ 1,880 $ 1,802 $ 1,803 $ 1,796 Lead, $/pound $ 1.05 $ 0.95 $ 0.97 $ 1.08 $ 1.13 $ 1.01 $ 1.03 Zinc, $/pound $ 1.24 $ 1.23 $ 1.44 $ 1.79 $ 1.74 $ 1.41 $ 1.44 Loss applicable to common stockholders decreased to $4.6 million in the fourth quarter 2022 from $23.7 million in the third quarter due to: Increased gross profit of $16.6 million due to higher revenues arising from deferred silver concentrate shipments from Greens Creek and Lucky Friday to the fourth quarter, higher realized prices and production partially offset by higher cost of sales. Exploration and pre-development expense decreased by $8.2 million due to the completion of seasonal exploration programs in the prior quarter. The above items were partially offset by: Increase in general and administrative expenses of $3.4 million due to higher incentive compensation accruals and a full quarter of additional staffing as a result of the Alexco acquisition. Increase of $2.9 million in provision for closed operations reflecting updated costs for Troy mine reclamation. Higher ramp-up and suspension costs of $2.5 million related to the Keno Hill ramp-up. Consolidated silver cost of sales in 2022 increased 12% to $349.3 million from the prior year due to higher labor costs including contractor costs, and inflationary pressures for fuel, consumables, ground support and other inputs. Cash costs and AISC per silver ounce, each after by-product credits, were $2.06 and $11.25, respectively.3,4 The increase in cash costs and AISC per silver ounce was due to higher cost of sales, and increased sustaining capital, partially offset by higher by-product credits due to higher by-products and silver production.3,4 Consolidated gold cost of sales decreased by 9% to $253.0 million primarily due to Nevada operations were being on care and maintenance. Cash costs and AISC per gold ounce, each after by-product credits, were $1,478 and $1,825, respectively.3,4 The increase in total cash costs was due to higher labor, contractor costs, and inflation in diesel, reagents, and other key inputs as well as lower gold production with AISC also impacted by higher sustaining capital. Loss applicable to common stockholders was $37.9 million in 2022 compared to net income of $34.5 million in 2021 with decrease in profitability attributable to: Lower sales of $88.6 million due to lower gold production and lower metal prices for silver, lead, and zinc, partially offset by higher silver, lead and zinc production. Lower gross profit due to lower sales and higher production costs. Higher general and administrative expenses of $8.8 million due to higher incentive compensation accruals, compensation increases effective July 1, and additional staffing as a result of the Alexco acquisition. A decrease in income tax benefit of $22.0 million The above items were partially offset by: Decrease in exploration and pre-development expense of $1.9 million. Fair value adjustments that resulted in a loss of $4.7 million in 2022 compared to a loss of $35.8 million in 2021 as result of lower realized and unrealized losses on derivatives and investments. Decrease in provision for closed operations and environmental matters of $5.8 million. Adjusted EBITDA for the year was $217.5 million and decreased by $61.3 million over the prior year primarily due to lower revenues and higher production costs amidst inflationary pressures. The ratio of Net debt to adjusted EBITDA increased to 1.9 due to lower Adjusted EBITDA and use of cash as the Company invested in development of the Keno Hill mine.1 Cash provided by operating activities was $89.9 million for 2022 and decreased $130.5 million year over year due to lower net income and unfavorable working capital changes. When compared to the third quarter, cash provided by operating activities increased by $60.4 million due to increased gross margin and monetization of zinc hedges. Capital expenditures, net of leases, totaled $149.4 million in 2022 compared to $109.0 million in 2021. The increase was due to higher capital spend at Lucky Friday, as the Company invested in the infrastructure necessary to increase throughput, sustaining expenditures at Greens Creek, and development capital at the Keno Hill partially offset by lower spend at Casa Berardi. Fourth quarter capital expenditures totaled $56.1 million, including $12.2 million at Greens Creek, $13.0 million at Casa Berardi, $13.7 million at Lucky Friday, and $16.1 million at Keno Hill. Free cash flow for the year was negative $59.5 million, a decrease of $170.8 million over the prior year due to lower revenues, higher production costs, higher capital spend at Lucky Friday and Greens Creek, and investment in the Keno Hill development. Free cash flow for the fourth quarter was negative $20.0 million and increased by $41.7 million over the prior quarter primarily due to higher cash flow from operations partially offset by higher capital spend.2 Forward Sales Contracts for Base Metals and Foreign Currency The Company uses financially settled forward sales contracts to manage exposures to changes in prices of zinc and lead. At December 31, 2022, the Company had contracts covering approximately 36% of the forecasted payable zinc production for 2023 at an average price of $1.34 per pound, and 40% of the forecasted payable lead production (through 2024) at an average price of $0.99 per pound. In the fourth quarter, the Company monetized zinc hedges for cash proceeds of approximately $17.0 million. The Company also manages CAD exposure through forward contracts. At December 31, 2022, the Company had hedged approximately 46% of forecasted CAD direct production costs for Casa Berardi through 2026 at an average CAD/USD rate of 1.31. The Company has also hedged approximately 34% of capital costs for Casa Berardi for 2023 at 1.33. At Keno Hill, 74% of the planned spend for 2023 is hedged at an average CAD/USD rate of 1.38. OPERATIONS OVERVIEW Greens Creek Mine - Alaska Dollars are in thousands except cost per ton 4Q-2022 3Q-2022 2Q-2022 1Q-2022 4Q-2021 FY 2022 FY 2021 GREENS CREEK Tons of ore processed 230,225 229,975 209,558 211,687 221,814 881,445 841,967 Total production cost per ton $ 211.29 $ 185.34 $ 197.84 $ 192.16 $ 174.55 $ 196.73 $ 177.30 Ore grade milled - Silver (oz./ton) 13.1 13.6 14.0 13.8 12.6 13.6 13.5 Ore grade milled - Gold (oz./ton) 0.08 0.07 0.08 0.07 0.07 0.08 0.08 Ore grade milled - Lead (%) 2.6 2.4 3.0 2.8 2.6 2.7 2.9 Ore grade milled - Zinc (%) 6.7 6.3 7.2 6.6 6.3 6.7 7.1 Silver produced (oz.) 2,433,275 2,468,280 2,410,598 2,429,782 2,262,635 9,741,935 9,243,222 Gold produced (oz.) 12,989 11,412 12,413 11,402 10,229 48,216 46,088 Lead produced (tons) 4,985 4,428 5,184 4,883 4,731 19,480 19,873 Zinc produced (tons) 13,842 12,580 13,396 12,494 12,457 52,312 53,648 Sales $ 95,374 $ 60,875 $ 92,723 $ 86,090 $ 87,865 $ 335,062 $ 384,843 Total cost of sales $ (70,075 ) $ (52,502 ) $ (60,506 ) $ (49,636 ) $ (49,251 ) $ (232,718 ) $ (213,113 ) Gross profit $ 25,299 $ 8,373 $ 32,217 $ 36,453 $ 38,614 $ 102,344 $ 171,730 Cash flow from operations $ 44,769 $ 7,749 $ 41,808 $ 56,295 $ 50,632 $ 150,621 $ 208,715 Exploration $ 1,050 $ 3,776 $ 929 $ 165 $ 696 $ 5,920 $ 4,591 Capital additions $ (12,150 ) $ (6,988 ) $ (14,668 ) $ (3,092 ) $ (9,544 ) $ (36,898 ) $ (23,883 ) Free cash flow2 $ 33,669 $ 4,537 $ 28,069 $ 53,368 $ 41,784 $ 119,643 $ 189,423 Cash cost per ounce, after by-product credits3 $ 4.26 $ 2.65 $ (3.29 ) $ (0.90 ) $ 0.50 $ 0.70 $ (0.65 ) AISC per ounce, after by-product credits4 $ 9.04 $ 8.61 $ 3.48 $ 1.90 $ 5.66 $ 5.77 $ 3.19 Greens Creek produced 9.7 million ounces of silver in 2022, an increase of 5% over the prior year achieving record mill throughput. Fourth quarter sales were $95.4 million, and increased $34.5 million over the third quarter due to higher realized prices, increased by-product production and the favorable impact of a deferred silver concentrate shipment from the third quarter resulting in higher metals sold. Cost of sales for the quarter were $70.1 million, an increase of $17.6 million over the prior quarter with the increase attributable to higher costs related to higher volumes of metals sold and higher fuel and consumables costs. Cash costs and AISC per silver ounce, each after by-product credits, were $4.26 and $9.04 and increased quarter over quarter due to higher treatment and freight costs due to higher concentrate quantities shipped, and higher costs related to fuel and consumables as the mill achieved record throughput.3,4 Cash flow from operations increased by $37.0 million over the prior quarter due to increased sales and lower exploration spend partially offset by higher costs. Free cash flow for the fourth quarter was $33.7 million, an increase of $29.1 million over the prior quarter due to higher cash flow from operations partially offset by higher capital spend.2 2022 sales were $335.1 million, a decrease of $49.8 million compared to 2021 due to lower realized silver prices partially offset by higher silver and gold production. Cost of sales increased to $232.7 million compared to $213.1 million in 2021 due to higher labor and contractor costs due to record tons mined, inflationary pressures for fuel, reagents and other inputs, and higher volumes of consumables as the mill achieved record throughput in 2022. Cash costs and AISC per silver ounce (each after by-product credits) were $0.70 and $5.77, respectively, increasing year over year due to the reasons outlined above, partially offset by higher by-product credits.3,4 The increase in AISC was also impacted by higher exploration and sustaining capital spend during the year. Cash flow from operations for the year was $150.6 million, and decreased by $58.1 million over the prior year due to lower revenues and higher production costs. Free cash flow generation for the year was $119.6 million and declined by $69.8 million over the prior year due to lower cash flow from operations and higher planned capital spend.2 Lucky Friday Mine - Idaho Dollars are in thousands except cost per ton 4Q-2022 3Q-2022 2Q-2022 1Q-2022 4Q-2021 FY 2022 FY 2021 LUCKY FRIDAY Tons of ore processed 90,935 90,749 97,497 77,725 80,097 356,907 321,837 Total production cost per ton $ 232.73 $ 207.10 $ 211.45 $ 247.17 $ 198.83 $ 223.55 $ 191.50 Ore grade milled - Silver (oz./ton) 14.0 12.5 13.2 12.0 12.5 13.0 11.6 Ore grade milled - Lead (%) 9.1 8.5 8.8 8.2 8.1 8.7 7.6 Ore grade milled - Zinc (%) 4.1 4.2 3.9 3.6 3.3 3.9 3.4 Silver produced (oz.) 1,224,199 1,074,230 1,226,477 887,858 955,401 4,412,764 3,564,128 Lead produced (tons) 7,934 7,172 8,147 5,980 6,131 29,233 23,137 Zinc produced (tons) 3,335 3,279 3,370 2,452 2,296 12,436 9,969 Sales $ 45,434 $ 28,460 $ 35,880 $ 38,040 $ 32,938 $ 147,814 $ 131,488 Total cost of sales $ (32,819 ) $ (24,166 ) $ (30,348 ) $ (29,265 ) $ (23,252 ) $ (116,598 ) $ (97,538 ) Gross profit $ 12,615 $ 4,294 $ 5,532 $ 8,775 $ 9,686 $ 31,216 $ 33,950 Cash flow from operations $ (7,437 ) $ 11,624 $ 21,861 $ 11,765 $ 16,953 $ 37,813 $ 62,594 Capital additions $ (13,714 ) $ (16,125 ) $ (11,501 ) $ (9,652 ) $ (9,109 ) $ (50,992 ) $ (29,885 ) Free cash flow2 $ (21,151 ) $ (4,501 ) $ 10,360 $ 2,113 $ 7,844 $ (13,179 ) $ 32,709 Cash cost per ounce, after by-product credits3 $ 5.81 $ 5.23 $ 3.07 $ 6.57 $ 4.50 $ 5.06 $ 6.60 AISC per ounce, after by-product credits4 $ 12.88 $ 15.98 $ 9.91 $ 13.15 $ 12.54 $ 12.86 $ 14.34 Lucky Friday produced 4.4 million ounces of silver, an increase of 24% over the prior year due to record throughput, and higher mined grades. Silver production for the fourth quarter was 1.2 million ounces, an increase of 14% over the prior quarter due to higher grades mined. Fourth quarter sales were $45.4 million, an increase of $17.0 million over the prior quarter due to increased production, higher realized prices, and the sale of the silver concentrate shipment which was deferred from the third quarter. Cost of sales were $32.8 million and increased $8.7 million over the prior quarter due to costs associated with the deferred silver concentrate shipment inventoried in the third quarter, and higher labor costs as the mine continued to fill key positions. Cash costs after by-product credits per silver ounce were $5.81 and increased over the prior quarter due to higher labor costs and higher treatment and freight costs resulting from higher concentrate sales, partially offset by higher by-product credits and higher silver production. AISC after by-product credits per silver ounce was $12.88 and decreased over the prior quarter as the factors affecting cash cost per ounce were offset by lower capital spend in the fourth quarter.3,4 Cash flow from operations was negative $7.4 million, a decrease of $19.1 million over the prior quarter due to unfavorable working capital changes and receipt of $6.7 million related to the deferred silver concentrate shipment received in January 2023. Free cash flow was negative $21.2 million and decreased over the prior quarter primarily due to decreased cash flow from operations partially offset by lower capital spend.2 2022 sales were $147.8 million, an increase of $16.3 million over 2021 as higher metal production offset lower realized prices and higher treatment costs due to increased concentrate production. Cost of sales increased to $116.6 million compared to $97.5 million in 2021 reflecting higher costs related to increased tons mined and milled, as well as inflationary pressures for fuel, reagents and other input costs realized during the year. Cash costs and AISC per silver ounce, each after by-product credits, were $5.06 and $12.86, respectively, decreasing year over year due to higher production and by-product credits partially offset by higher costs and capital spend. 3,4 Cash flow from operations for the year was $37.8 million, a decrease of $24.8 million over the prior year due to higher production costs and unfavorable working capital changes. Free cash flow was negative $13.2 million due to lower cash flow from operations and increased capital spend for the year.2 Casa Berardi - Quebec Dollars are in thousands except cost per ton 4Q-2022 3Q-2022 2Q-2022 1Q-2022 4Q-2021 FY 2022 FY 2021 CASA BERARDI Tons of ore processed - underground 160,150 162,215 176,576 161,609 161,355 660,550 694,617 Tons of ore processed - surface pit 250,883 227,726 225,042 224,541 225,662 928,189 833,629 Tons of ore processed - total 411,033 389,941 401,618 386,150 387,017 1,588,739 1,528,246 Surface tons mined - ore and waste 2,657,638 2,822,906 2,149,412 1,892,339 1,507,457 9,522,295 7,015,178 Total production cost per ton $ 125.75 $ 114.52 $ 113.07 $ 117.96 $ 108.82 $ 117.89 $ 98.60 Ore grade milled - Gold (oz./ton) - underground 0.15 0.15 0.19 0.14 0.17 0.16 0.16 Ore grade milled - Gold (oz./ton) - surface pit 0.05 0.06 0.05 0.05 0.07 0.05 0.06 Ore grade milled - Gold (oz./ton) - combined 0.09 0.10 0.10 0.09 0.11 0.09 0.10 Gold produced (oz.) - underground 20,365 22,181 22,866 19,374 22,910 84,786 98,090 Gold produced (oz.) - surface pit 10,344 11,154 10,440 10,866 14,356 42,804 36,421 Gold produced (oz.) - total 30,709 33,335 33,306 30,240 37,266 127,590 134,511 Silver produced (oz.) - total 5,960 6,882 8,379 7,068 7,967 28,289 33,571 Sales $ 53,458 $ 56,939 $ 62,639 $ 62,101 $ 60,054 $ 235,136 $ 245,152 Total cost of sales $ (65,328 ) $ (59,532 ) $ (61,870 ) $ (62,168 ) $ (57,069 ) $ (248,898 ) $ (229,829 ) Gross profit (loss) $ (11,870 ) $ (2,593 ) $ 769 $ (67 ) $ 2,985 $ (13,762 ) $ 15,323 Cash flow from operations $ 10,188 $ 8,721 $ 7,417 $ 8,089 $ 10,029 $ 34,415 $ 73,791 Exploration $ 1,637 $ 2,624 $ 1,341 $ 2,635 $ 2,124 $ 8,237 $ 9,526 Capital additions $ (12,995 ) $ (10,771 ) $ (8,093 ) $ (7,808 ) $ (9,537 ) $ (39,667 ) $ (49,617 ) Free cash flow2 $ (1,170 ) $ 574 $ 665 $ 2,916 $ 2,616 $ 2,985 $ 33,700 Cash cost per ounce, after by-product credits3 $ 1,696 $ 1,349 $ 1,371 $ 1,516 $ 1,137 $ 1,478 $ 1,125 AISC per ounce, after by-product credits4 $ 2,132 $ 1,738 $ 1,641 $ 1,810 $ 1,470 $ 1,825 $ 1,399 Casa Berardi produced 127,590 and 30,709 ounces of gold in 2022 and the fourth quarter, respectively. Gold production for the year decreased by 5% compared to last year due to a 12% decrease in overall gold grade, partially offset by a 4% increase in tonnage and a 3% increase in mill recoveries. The lower grade was due to a higher ratio of lower grade ore sourced from the open pits. The mill continued to perform well, achieving record throughput of 4,468 tons per day (tpd) in the fourth quarter of 2022. Full year 2022 cost of sales was $248.9 million, an increase of $19.1 million over the prior year due to inflationary pressures and increased labor, consumables, and contractor costs. Cash costs and AISC per ounce, each after by-product credits, were $1,478 and $1,825, respectively.3,4 The year over year increase in cash costs and AISC per gold ounce was due to higher production costs and lower gold production in 2022, and AISC per ounce was also impacted by higher sustaining capital and higher exploration spending.3,4 Cash flow from operations for the year was $34.4 million and decreased year over year due a combination of lower production and higher operating costs. Free cash flow for the year was $3.0 million compared to $33.7 million in 2021.2 Keno Hill - Yukon Territory At Keno Hill, production is expected to commence in the third quarter 2023 with a phased ramp up projected to reach 440 tpd by the end of the year. Anticipated silver production for the year is 2.5-3 million ounces expected from the Bermingham and Flame & Moth deposits. As of the end of January 2023, approximately 40% of development required to achieve full production was completed. Capital spending to bring the mine to full production is estimated to be $35-$40 million in 2023. Some key capital projects underway include camp expansion, mill improvements and engineering, and other surface capital infrastructure projects. EXPLORATION AND PRE-DEVELOPMENT Exploration and pre-development expenses totaled $6.9 million for the fourth quarter and $46.0 million for the full year. Exploration activities during the fourth quarter focused on targets at Keno Hill, Casa Berardi, and Greens Creek. For the year ended 2022, the Company reported the highest silver reserves of more than 240 million ounces, an increase of 21% over 2021. The increase was primarily due to the acquisition of Keno Hill in Canada's Yukon territory. Gold reserves declined 6% to 2.6 million ounces compared to 2021 due to cost increases which increased the cut-off grade at Casa Berardi. A breakdown of the Company's reserves and resources is located in Table A at the end of this news release. For further details on Company's 2022 exploration and pre-development program and 2023 planned expenditures as well as reserves and resources at year-end 2022, please refer to the news release entitled "Hecla Reports Highest Silver Reserves in Company History" released on February 14, 2023. 2023 ESTIMATES6 The Company is providing a three-year production outlook and 2023 estimates of costs, capital and exploration and pre-development expenses. 2023 - 2025 Production Outlook Production guidance for 2023-2025 includes expected production from Keno Hill. Consolidated silver production is expected to increase over the three years to reach 18.5-20 million ounces by 2025. Consolidated gold production is expected to decrease to 160-170 thousand ounces in 2023 primarily due to Casa Berardi as an increase in the underground cut-off grade will lower gold production and reduce lower margin material and lower contractor costs. Casa Berardi's production is expected to be lower in the first half of 2023 and increase in the latter half of the year. Cash costs and AISC, each after by-product credits, per gold ounce are expected to be higher in the first half and trend lower in the second half of the year. Silver Production (Moz) Gold Production (Koz) Silver Equivalent (Moz) Gold Equivalent (Koz) 2023 Greens Creek * 9.0 - 9.5 50.0 - 55.0 21.0 - 22.0 255.0 - 265.0 2023 Lucky Friday * 4.5 - 5.0 N/A 8.5 - 9.0 105.0 - 110.0 2023 Casa Berardi N/A 110.0 - 115.0 9.0 - 9.5 110.0 - 115.0 2023 Keno Hill 2.5 - 3.0 N/A 2.5 - 3.0 35.0 - 40.0 2023 Total 16.0 - 17.5 160.0 - 170.0 41.5 - 44.0 505.0 - 535.0 2024 Total 17.5 - 18.5 145.0 - 161.0 42.5 - 44.5 510.0 - 540.0 2025 Total 18.5 - 20.0 142.0 - 161.5 41.0 - 44.0 495.0 - 535.0 *Equivalent ounces include lead and zinc production 2023 Cost Outlook Costs of Sales (million) Cash cost, after by- product credits, per silver/gold ounce3 AISC, after by- product credits, per produced silver/gold ounce4 Greens Creek 245 $0.00 - $0.25 $6.00 - $6.75 Lucky Friday 128 $2.00 - $2.50 $8.50 - $9.50 Keno Hill 40 $11.00 - $13.50 $12.25 - $14.75 Total Silver 413 $2.50 - $3.00 $10.25 - $11.50 Casa Berardi 220 $1450 - $1550 $1975 - $2050 2023 Capital and Exploration Outlook Capital spending in 2023 is expected to increase due to higher spending at Casa Berardi and Greens Creek, as well as development and infrastructure projects at Keno Hill. Casa Berardi's increased capital spending is primarily due to the expansion of tailings facility. Greens Creek's projected higher capital spend is due to additional equipment purchases as the mine targets throughput of 2,600 tons per day, and increased capital development. Capital expenditures $190 - $200 million Greens Creek $49 - $52 million Lucky Friday $48 - $51 million Casa Berardi $51 - $53 million Keno Hill $42 - $44 million Exploration and Pre-development expenditures $32.5 million Keno Hill Ramp Up Costs $9.0 million DIVIDENDS Common Stock The Board of Directors declared a quarterly cash dividend of $0.00625 per share of common stock, consisting of $0.00375 per share for the minimum dividend component and $0.0025 per share for the silver-linked component. The common stock dividend is payable on or about March 24, 2023, to stockholders of record on March 9, 2023. The realized silver price was $22.03 in the fourth quarter, satisfying the criterion for the silver-linked component under the Company's common stock dividend policy. Preferred Stock The Board of Directors elected to declare a quarterly cash dividend of $0.875 per share of preferred stock, payable on or about April 3, 2023, to stockholders of record on March 15, 2023. CONFERENCE CALL AND WEBCAST A conference call and webcast will be held Wednesday, February 15, at 10:00 a.m. Eastern Time to discuss these results. We recommend that you dial in at least 10 minutes before the call commencement. You may join the conference call by dialing toll-free 1-888-330-2391 or for international dialing 1-240-789-2702. The Conference ID is 4812168 and must be provided when dialing in. Hecla's live and archived webcast can be accessed at https://events.q4inc.com/attendee/180188973 or www.hecla-mining.com under Investors. VIRTUAL INVESTOR EVENT Hecla will be holding a Virtual Investor Event on Wednesday, February 15, from 12:00 p.m. to 2:00 p.m. Eastern Time. Hecla invites shareholders, investors, and other interested parties to schedule a personal, 30-minute virtual meeting (video or telephone) with a member of senior management to discuss Financials, Exploration, Operations, ESG or general matters. Click on the link below to schedule a call (or copy and paste the link into your web browser). You can select a topic once you have entered the meeting calendar. If you are unable to book a time, either due to high demand or for other reasons, please reach out to Anvita M. Patil, Vice President, Investor Relations and Treasurer at hmc-info@hecla-mining.com or 208-769-4100. One-on-One meeting URL: https://calendly.com/2023-february-vie ABOUT HECLA Founded in 1891, Hecla Mining Company (NYSE: HL) is the largest silver producer in the United States. In addition to operating mines in Alaska, Idaho, and Quebec, Canada, the Company is developing a mine in the Yukon, Canada, and owns a number of exploration and pre-development projects in world-class silver and gold mining districts throughout North America. NOTES Non-GAAP Financial Measures Non-GAAP financial measures are intended to provide additional information only and do not have any standard meaning prescribed by United States generally accepted accounting principles (GAAP). These measures should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. The non-GAAP financial measures cited in this release and listed below are reconciled to their most comparable GAAP measure at the end of this release. (1) Adjusted EBITDA is a non-GAAP measurement, a reconciliation of which to net income, the most comparable GAAP measure, can be found at the end of the release. Adjusted EBITDA is a measure used by management to evaluate the Company's operating performance but should not be considered an alternative to net income, or cash provided by operating activities as those terms are defined by GAAP, and does not necessarily indicate whether cash flows will be sufficient to fund cash needs. In addition, the Company may use it when formulating performance goals and targets under its incentive program. Net debt to adjusted EBITDA is a non-GAAP measurement, a reconciliation of which to debt and net income (loss), the most comparable GAAP measurements, can be found at the end of the release. It is an important measure for management to measure relative indebtedness and the ability to service the debt relative to its peers. It is calculated as total debt outstanding less total cash on hand divided by adjusted EBITDA. (2) Free cash flow is a non-GAAP measure calculated as cash provided by operating activities less additions to properties, plants and equipment. Cash provided by operating activities for the Greens Creek, Lucky Friday, Casa Berardi, and Nevada operating segments excludes exploration and pre-development expense, as it is a discretionary expenditure and not a component of the mines’ operating performance. (3) Cash cost, after by-product credits, per silver and gold ounce is a non-GAAP measurement, a reconciliation of which to cost of sales and other direct production costs and depreciation, depletion and amortization (sometimes referred to as "cost of sales" in this release), can be found at the end of the release. It is an important operating statistic that management utilizes to measure each mine's operating performance. It also allows the benchmarking of performance of each mine versus those of our competitors. As a primary silver mining company, management also uses the statistic on an aggregate basis - aggregating the Greens Creek and Lucky Friday mines - to compare performance with that of other silver mining companies, and aggregating Casa Berardi and the Nevada operations, to compare its performance with other gold mining companies. Similarly, the statistic is useful in identifying acquisition and investment opportunities as it provides a common tool for measuring the financial performance of other mines with varying geologic, metallurgical and operating characteristics. In addition, the Company may use it when formulating performance goals and targets under its incentive program. Cash cost, after by-product credits, per silver ounce is not presented for Lucky Friday for the first nine-months of 2020, as production was limited due to the strike and subsequent ramp-up and results are not comparable to those from prior periods and are not indicative of future operating results under full production. (4) All-in sustaining cost (AISC), after by-product credits, is a non-GAAP measurement, a reconciliation of which to cost of sales and other direct production costs and depreciation, depletion and amortization, the closest GAAP measurement, can be found in the end of the release. AISC, after by-product credits, includes cost of sales and other direct production costs, expenses for reclamation and exploration at the mines sites, corporate exploration related to sustaining operations, and all site sustaining capital costs. AISC, after by-product credits, is calculated net of depreciation, depletion, and amortization and by-product credits. (5) Adjusted net income (loss) applicable to common stockholders is a non-GAAP measurement, a reconciliation of which to net income (loss) applicable to common stockholders, the most comparable GAAP measure, can be found at the end of the release. Adjusted net income (loss) is a measure used by management to evaluate the Company's operating performance but should not be considered an alternative to net income (loss) as defined by GAAP. They exclude certain impacts which are of a nature which we believe are not reflective of our underlying performance. Management believes that adjusted net income (loss) per common share provides investors with the ability to better evaluate our underlying operating performance. 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. Management believes that all-in sustaining costs is a non-GAAP measure that provides additional information to management, investors and analysts to help (i) in the understanding of the economics of our operations and performance compared to other producers and (ii) in the transparency by better defining the total costs associated with production. Similarly, the statistic is useful in identifying acquisition and investment opportunities as it provides a common tool for measuring the financial performance of other mines with varying geologic, metallurgical and operating characteristics. In addition, the Company may use it when formulating performance goals and targets under its incentive program. Other (6) Expectations for 2023 include silver, gold, lead and zinc production from Greens Creek, Lucky Friday, Keno Hill, and Casa Berardi converted using Au $1,800/oz, Ag $22/oz, Zn $1.15/lb, and Pb 0.90$/lb, CAD/USD 1.30. Numbers may be rounded. Cautionary Statement Regarding Forward-Looking Statements, Including 2023 Outlook This news release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbor created by such sections and other applicable laws, including Canadian securities laws. Words such as “may”, “will”, “should”, “expects”, “intends”, “projects”, “believes”, “estimates”, “targets”, “anticipates” and similar expressions are used to identify these forward-looking statements. Such forward-looking statements may include, without limitation: (i) increased demand for silver due to transition to clean energy; (ii) Keno Hill will be in production in the second half of the year with ramp-up to 440 tons per day by the end of 2023; (iii) the Company will set new production records in 2023 and 2024; (iv) Casa Berardi's costs will trend lower in the second half of 2023; and; (v) mine-specific and Company-wide 2023 estimates of future production (for 2024 and 2025), sales and costs of sales, as well as cash cost and AISC per ounce (in each case after by-product credits) and Company-wide estimated spending on capital, exploration and pre-development for 2023. The material factors or assumptions used to develop such forward-looking statements or forward-looking information include that the Company’s plans for development and production will proceed as expected and will not require revision as a result of risks or uncertainties, whether known, unknown or unanticipated, to which the Company’s operations are subject. Estimates or expectations of future events or results are based upon certain assumptions, which may prove to be incorrect, which could cause actual results to differ from forward-looking statements. Such assumptions, include, but are not limited to: (i) there being no significant change to current geotechnical, metallurgical, hydrological and other physical conditions; (ii) permitting, development, operations and expansion of the Company’s projects being consistent with current expectations and mine plans; (iii) political/regulatory developments in any jurisdiction in which the Company operates being consistent with its current expectations; (iv) the exchange rate for the USD/CAD and USD/MXN, being approximately consistent with current levels; (v) certain price assumptions for gold, silver, lead and zinc; (vi) prices for key supplies being approximately consistent with current levels; (vii) the accuracy of our current mineral reserve and mineral resource estimates; (viii) there being no significant changes to Company plans for 2023 and beyond due to COVID-19 or any other public health issue, including, but not limited to with respect to availability of employees, vendors and equipment; (ix) the Company’s plans for development and production will proceed as expected and will not require revision as a result of risks or uncertainties, whether known, unknown or unanticipated; (x) counterparties performing their obligations under hedging instruments and put option contracts; (xi) sufficient workforce is available and trained to perform assigned tasks; (xii) weather patterns and rain/snowfall within normal seasonal ranges so as not to impact operations; (xiii) relations with interested parties, including First Nations and Native Americans, remain productive; (xiv) maintaining availability of water rights; (xv) factors do not arise that reduce available cash balances; and (xvi) there being no material increases in our current requirements to post or maintain reclamation and performance bonds or collateral related thereto. In addition, material risks that could cause actual results to differ from forward-looking statements include, but are not limited to: (i) gold, silver and other metals price volatility; (ii) operating risks; (iii) currency fluctuations; (iv) increased production costs and variances in ore grade or recovery rates from those assumed in mining plans; (v) community relations; (vi) conflict resolution and outcome of projects or oppositions; (vii) litigation, political, regulatory, labor and environmental risks; (viii) exploration risks and results, including that mineral resources are not mineral reserves, they do not have demonstrated economic viability and there is no certainty that they can be upgraded to mineral reserves through continued exploration; (ix) the failure of counterparties to perform their obligations under hedging instruments; (x) we take a material impairment charge on any of our assets; and (xi) inflation causes our costs to rise more than we currently expect. For a more detailed discussion of such risks and other factors, see the Company’s (i) 2021 Annual Report on Form 10-K, filed with the Securities and Exchange Commission (SEC) on February 23, 2022, and (ii) other SEC filings, including its Quarterly Report on Form 10-Q filed with the SEC on August 5, 2022 and 2022 Form 10-K expected to be filed with the SEC by March 1, 2023. The Company does not undertake any obligation to release publicly, revisions to any “forward-looking statement,” including, without limitation, outlook, to reflect events or circumstances after the date of this presentation, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws. Investors should not assume that any lack of update to a previously issued “forward-looking statement” constitutes a reaffirmation of that statement. Continued reliance on “forward-looking statements” is at investors’ own risk. Qualified Person (QP) Kurt D. Allen, MSc., CPG, VP - Exploration of Hecla Mining Company and Keith Blair, MSc., CPG, Chief Geologist of Hecla Limited, who serve as a Qualified Person under S-K 1300 and NI 43-101, supervised the preparation of the scientific and technical information concerning Hecla’s mineral projects in this news release. Technical Report Summaries (each a “TRS”) for each of the Company’s material properties are filed as exhibits 96.1, 96.2 and 96.3 to the Company’s Form 10-K for the year ended December 31, 2022 and are incorporated by reference into the Company’s Form 10-K, expected to be filed with the SEC on February 15, 2023, and are available at www.sec.gov. Information regarding data verification, surveys and investigations, quality assurance program and quality control measures and a summary of analytical or testing procedures for (i) the Greens Creek Mine are contained in its TRS and in a NI 43-101 technical report titled “Technical Report for the Greens Creek Mine” effective date December 31, 2018, (ii) the Lucky Friday Mine are contained in its TRS and in its technical report titled “Technical Report for the Lucky Friday Mine Shoshone County, Idaho, USA” effective date April 2, 2014, (iii) Casa Berardi are contained in its TRS and in its technical report titled “Technical Report on the mineral resource and mineral reserve estimate for Casa Berardi Mine, Northwestern Quebec, Canada” effective date December 31, 2018, and (iv) the San Sebastian Mine, Mexico, are contained in a technical report prepared for Hecla titled “Technical Report for the San Sebastian Ag-Au Property, Durango, Mexico” effective date September 8, 2015. Also included in each TRS and the four technical reports is a description of the key assumptions, parameters and methods used to estimate mineral reserves and resources and a general discussion of the extent to which the estimates may be affected by any known environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant factors. Information regarding data verification, surveys and investigations, quality assurance program and quality control measures and a summary of sample, analytical or testing procedures and the key assumptions, parameters and methods used to estimate mineral reserves and resources and a general discussion of the extent to which the estimates may be affected by any known environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant factors are contained in technical reports prepared for Alexco Resource Corp. (“Alexco”) for Keno Hill (technical report dated April 1, 2021) and for Klondex Mines Ltd. for (i) the Fire Creek Mine (technical report dated March 31, 2018), (ii) the Hollister Mine (technical report dated May 31, 2017, amended August 9, 2017), and (iii) the Midas Mine (technical report dated August 31, 2014, amended April 2, 2015). Copies of these technical reports are available under Hecla’s profile on SEDAR, and in the case of Keno Hill, under Alexco’s profile, each at www.sedar.com. Mr. Allen and Mr. Blair reviewed and verified information regarding drill sampling, data verification of all digitally collected data, drill surveys and specific gravity determinations relating to all the mines. The review encompassed quality assurance programs and quality control measures including analytical or testing practice, chain-of-custody procedures, sample storage procedures and included independent sample collection and analysis. This review found the information and procedures meet industry standards and are adequate for Mineral Resource and Mineral Reserve estimation and mine planning purposes. HECLA MINING COMPANY Condensed Consolidated Statements of Income (Loss) (dollars and shares in thousands, except per share amounts - unaudited) Fourth Quarter Ended Third Quarter Ended Twelve Months Ended December 31, 2022 September 30, 2022 December 31, 2022 December 31, 2021 Sales of products $ 194,825 $ 146,339 $ 718,905 $ 807,473 Cost of sales and other direct production costs 132,232 104,900 458,811 417,879 Depreciation, depletion and amortization 37,575 32,992 143,938 171,793 Total cost of sales 169,807 137,892 602,749 589,672 Gross profit 25,018 8,447 116,156 217,801 Other operating expenses: General and administrative 14,396 11,003 43,384 34,570 Exploration and pre-development 6,905 15,128 46,041 47,901 Other operating expense 952 902 6,262 14,327 Ramp-up and suspension costs 7,575 5,092 24,114 23,012 Provision for closed operations and reclamation 4,639 1,781 8,793 14,571 34,467 33,906 128,594 134,381 Income (loss) from operations (9,448 ) (25,459 ) (12,438 ) 83,420 Other (expense) income: Fair value adjustments, net 9,980 (4,240 ) (4,723 ) (35,792 ) Foreign exchange (loss) gain, net (900 ) 5,667 7,211 417 Other net expense 1,353 1,853 7,829 (574 ) Interest expense (9,360 ) (10,874 ) (42,793 ) (41,945 ) 1,073 (7,594 ) (32,476 ) (77,894 ) (Loss) income before income taxes (8,376 ) (33,053 ) (44,914 ) 5,526 Income and mining tax benefit (provision) 3,924 9,527 7,566 29,569 Net income (loss) (4,452 ) (23,526 ) (37,348 ) 35,095 Preferred stock dividends (138 ) (138 ) (552 ) (552 ) Income (loss) applicable to common stockholders $ (4,590 ) $ (23,664 ) $ (37,900 ) $ 34,543 Basic income (loss) per common share after preferred dividends (in cents) $ (0.01 ) $ (0.04 ) $ (0.07 ) $ 0.06 Diluted income (loss) per common share after preferred dividends (in cents) $ (0.01 ) $ (0.04 ) $ (0.07 ) $ 0.06 Weighted average number of common shares outstanding basic 596,959 554,531 557,344 536,192 Weighted average number of common shares outstanding diluted 596,959 554,531 557,344 542,176 HECLA MINING COMPANY Condensed Consolidated Balance Sheets (dollars and shares in thousands - unaudited) December 31, 2022 December 31, 2021 ASSETS Current assets: Cash and cash equivalents $ 104,743 $ 210,010 Accounts receivable 55,841 44,586 Inventories 90,672 67,765 Other current assets 16,471 19,266 Total current assets 267,727 341,627 Investments 24,018 10,844 Restricted cash and investments 1,164 1,053 Properties, plants, equipment and mineral interests, net 2,569,790 2,310,810 Operating lease right-of-use assets 11,064 12,435 Deferred tax assets 21,105 45,562 Other non-current assets 32,304 6,477 Total assets $ 2,927,172 $ 2,728,808 LIABILITIES Current liabilities: Accounts payable and accrued liabilities $ 84,747 $ 68,100 Accrued payroll and related benefits 37,579 28,714 Accrued taxes 4,030 12,306 Finance leases 9,483 5,612 Accrued reclamation and closure costs 8,591 9,259 Accrued interest 14,454 14,454 Derivatives liabilities 16,125 19,353 Other current liabilities 3,457 2,585 Total current liabilities 178,466 160,383 Long-term debt including finance leases 517,742 515,871 Accrued reclamation and closure costs 108,408 103,972 Deferred income tax liability 125,846 149,706 Non-current pension liability — 4,673 Derivatives liabilities 6,066 18,528 Other non-current liabilities 11,677 14,888 Total liabilities 948,205 968,021 STOCKHOLDERS’ EQUITY Preferred stock 39 39 Common stock 151,819 136,391 Capital surplus 2,260,290 2,034,485 Accumulated deficit (403,931 ) (353,651 ) Accumulated other comprehensive (loss) 2,448 (28,456 ) Treasury stock (31,698 ) (28,021 ) Total stockholders’ equity 1,978,967 1,760,787 Total liabilities and stockholders’ equity $ 2,927,172 $ 2,728,808 Common shares outstanding 607,620 545,535 HECLA MINING COMPANY Condensed Consolidated Statements of Cash Flows (dollars in thousands - unaudited) Fourth Quarter Ended Third Quarter Ended Twelve Months Ended December 31, 2022 September 30, 2022 December 31, 2022 December 31, 2021 OPERATING ACTIVITIES Net income (loss) $ (4,452 ) $ (23,526 ) $ (37,348 ) $ 35,095 Non-cash elements included in net income (loss): Depreciation, depletion and amortization 38,404 33,087 145,147 172,651 Provision for reclamation and closure costs 4,783 1,518 9,572 11,514 Deferred income taxes (8,395 ) (16,538 ) (26,223 ) (48,049 ) Stock compensation 1,714 1,773 6,012 6,082 Fair value adjustments, net 20,696 17,671 24,182 15,040 Foreign exchange (gain) loss (857 ) (4,911 ) (9,210 ) (79 ) Adjustment of inventory to net realizable value 487 1,405 2,646 6,524 Other non-cash charges, net 1,282 1,472 3,736 2,663 Change in assets and liabilities: Accounts receivable (26,119 ) 15,589 8,669 (5,405 ) Inventories 1,242 (11,120 ) (18,230 ) 16,919 Other current and non-current assets (8,291 ) (2,526 ) (11,711 ) (1,678 ) Accounts payable and accrued liabilities (3,273 ) (38,827 ) (24,981 ) (795 ) Accrued payroll and related benefits 12,053 1,401 13,732 1,270 Accrued taxes (5,275 ) 3,031 (7,927 ) 6,457 Accrued reclamation and closure costs and other non-current liabilities 12,121 (3,821 ) 11,824 2,128 Cash provided by operating activities 36,120 (24,322 ) 89,890 220,337 INVESTING ACTIVITIES Additions to properties, plants, equipment and mineral interests (56,140 ) (37,430 ) (149,378 ) (109,048 ) Acquisition, net — 8,952 8,953 — Pre-acquisition advance to Alexco — (25,000 ) (25,000 ) — Changes in restricted cash and investment balances (2,010 ) 2,011 — — Purchase of carbon credits — — — (869 ) Proceeds from sale or exchange of investments — 6,888 9,375 1,811 Proceeds from disposition of properties, plants, equipment and mineral interests — 18 748 1,077 Purchases of investments (1,431 ) (8,641 ) (31,971 ) — Net cash used in investing activities (59,581 ) (53,202 ) (187,273 ) (107,029 ) FINANCING ACTIVITIES Acquisition of treasury shares — — (3,677 ) (4,525 ) Proceeds from issuance of stock, net of related costs 12,735 4,542 17,278 — Dividends paid to common and preferred stockholders (2,383 ) (3,522 ) (12,932 ) (20,672 ) Borrowings on debt — 25,000 25,000 — Payments on debt (25,000 ) — (25,000 ) — Debt issuance and loan origination fees paid (19 ) (443 ) (536 ) (116 ) Repayments of capital leases (2,411 ) (1,889 ) (7,633 ) (7,285 ) Net cash used in financing activities (17,078 ) 23,688 (7,500 ) (32,598 ) Effect of exchange rates on cash 531 517 (273 ) (530 ) Net (decrease) increase in cash, cash equivalents and restricted cash and cash equivalents (40,008 ) (53,319 ) (105,156 ) 80,180 Cash, cash equivalents and restricted cash and cash equivalents at beginning of period 145,915 199,234 211,063 130,883 Cash, cash equivalents and restricted cash and cash equivalents at end of period $ 105,907 $ 145,915 $ 105,907 $ 211,063 Non-GAAP Measures (Unaudited) Reconciliation of Cost of Sales and Other Direct Production Costs and Depreciation, Depletion and Amortization (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) The tables below present reconciliations between the most comparable GAAP measure of cost of sales and other direct production costs and depreciation, depletion and amortization 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 at Greens Creek, Lucky Friday, Casa Berardi and Nevada Operations and for the Company for the three- and twelve-month periods ended December 31, 2022 and 2021, and for estimated amounts for the twelve months ended December 31, 2023. Cash Cost, After By-product Credits, per Ounce is a measure developed by precious metals companies (including the Silver Institute) 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. Cash Cost, After By-product Credits, per Ounce is an important operating statistic that we utilize to measure each mine's operating performance. We have recently started reporting AISC, After By-product Credits, per Ounce which we use as a measure of our operation's net cash flow after costs for exploration, pre-development, 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 on-site exploration, 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 operations versus those of our competitors. As a primary silver and gold mining company, we also use these statistics on an aggregate basis. We aggregate Greens Creek and Lucky Friday to compare our performance with that of other primary silver mining companies and aggregate Casa Berardi and Nevada Operations to compare our performance with that of other primary gold mining companies. Similarly, these statistics are useful in identifying acquisition and investment opportunities as they provide a common tool for measuring the financial performance of other mines with varying geologic, metallurgical and operating characteristics. Cash Cost, Before By-product Credits and AISC, Before By-product Credits include all direct and indirect operating cash costs related directly to the physical activities of producing metals, including mining, processing and other plant costs, third-party refining expense, on-site general and administrative costs, royalties and mining production taxes. AISC, Before By-product Credits for each operation also includes on-site exploration, reclamation, and sustaining capital costs. AISC, Before By-product Credits for our consolidated silver properties also includes corporate costs for general and administrative expense, exploration and sustaining capital projects. By-product credits include revenues earned from all metals other than the primary metal produced at each operation. 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. However, comparability of Cash Cost, After By-product Credits, per Silver Ounce and AISC, After By-product Credits, per Silver Ounce for 2022 to 2021 is impacted by, among other factors, (i) the return to full production at Lucky Friday in the fourth quarter of 2020 and (ii) suspension of production at San Sebastian in the fourth quarter of 2020 and discontinuation of San Sebastian being reported as an operating segment in 2021. The Casa Berardi and Nevada Operations sections below report 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 and Nevada Operations. Only costs and ounces produced relating to operations 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 and Nevada Operations 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 Ounce for the total of Greens Creek and Lucky Friday, our combined silver properties. Similarly, the silver produced at our other two operations is not included as a by-product credit when calculating the similar gold metrics for Casa Berardi. In thousands (except per ounce amounts) Three Months Ended December 31, 2022 Three Months Ended September 30, 2022 Twelve Months Ended December 31, 2022 Twelve Months Ended December 31, 2021 Greens Creek Lucky Friday Corporate and other(3) Total Silver Greens Creek Lucky Friday Corporate and other(3) Total Silver Greens Creek Lucky Friday(2) Corporate and other(3) Total Silver Greens Creek Lucky Friday(2) Corporate and other(3) Total Silver Total cost of sales $70,074 $32,819 $0 $102,893 $52,502 $24,164 $76,666 $232,718 $116,598 $— $349,316 $213,113 $97,538 $247 $310,898 Depreciation, depletion and amortization (13,557) (9,549) - (23,106) (10,305) (7,261) (17,566) (48,911) (33,704) - (82,615) (48,710) (26,846) (152) (75,708) Treatment costs 10,467 5,334 - 15,801 9,477 4,791 14,268 37,836 18,605 - 56,441 36,099 16,723 - 52,822 Change in product inventory (4,014) (571) - (4,585) 4,464 3,022 7,486 5,885 2,049 - 7,934 80 (406) - (326) Reclamation and other costs 499 (265) - 234 (118) (152) (270) (1,489) (1,034) - (2,523) (3,466) (1,039) (95) (4,600) Cash Cost, Before By-product Credits(1) 63,469 27,768 - 91,237 56,020 24,564 80,584 226,039 102,514 - 328,553 197,116 85,970 - 283,086 Reclamation and other costs 706 282 988 705 282 987 2,821 1,128 - 3,949 3,390 1,056 - 4,446 Exploration 1,050 - 359 1,409 3,776 - 722 4,498 5,920 - 2,567 8,487 4,591 - 2,226 6,817 Sustaining capital 9,862 8,369 - 18,231 10,219 11,264 187 21,670 40,705 33,306 334 74,345 27,582 26,517 210 54,309 General and administrative 14,395 14,395 11,003 11,003 - - 43,384 43,384 34,570 34,570 AISC, Before By-product Credits(1) 75,087 36,419 14,754 126,260 70,720 36,110 11,912 118,742 275,485 136,948 46,285 458,718 232,679 113,543 37,006 383,228 By-product credits: Zinc (26,112) (6,249) (32,361) (26,244) (7,155) (33,399) (113,835) (27,607) - (141,442) (100,214) (19,479) - (119,693) Gold (19,630) (19,630) (17,019) (17,019) (75,596) - - (75,596) (72,011) - (72,011) Lead (7,351) (14,392) (21,743) (6,212) (11,796) (18,008) (29,800) (52,568) - (82,368) (30,922) (42,966) - (73,888) Total By-product credits (53,093) (20,641) — (73,734) (49,475) (18,951) — (68,426) (219,231) (80,175) — (299,406) (203,147) (62,445) — (265,592) Cash Cost, After By-product Credits $10,376 $7,127 $— $17,503 $6,545 $5,613 $— $12,158 $6,808 $22,339 $— $29,147 $(6,031) $23,525 $— $17,494 AISC, After By-product Credits $21,994 $15,777 $14,754 $52,526 $21,245 $17,159 $11,912 $50,316 $56,254 $56,773 $46,285 $159,312 $29,532 $51,098 $37,006 $117,636 Divided by ounces produced 2,433 1,224 3,657 2,469 1,075 3,544 9,742 4,413 14,155 9,243 3,564 12,807 Cash Cost, Before By-product Credits, per Silver Ounce $26.08 $22.68 $24.95 $22.69 $22.87 $22.74 $23.20 $23.23 $23.21 $21.33 $24.12 $22.11 By-product credits per ounce (21.82) (16.86) (20.16) (20.04) (17.64) (19.31) (22.50) (18.17) (21.15) (21.98) (17.52) (20.74) Cash Cost, After By-product Credits, per Silver Ounce $4.26 $5.81 $4.79 $2.65 $5.23 $3.43 $0.70 $5.06 $2.06 $(0.65) $6.60 $1.37 AISC, Before By-product Credits, per Silver Ounce $30.86 $29.74 $34.53 $28.65 $33.62 $33.51 $28.27 $31.03 $32.40 $25.17 $31.86 $29.93 By-product credits per ounce (21.82) (16.86) (20.16) (20.04) (17.64) (19.31) (22.50) (18.17) (21.15) (21.98) (17.52) (20.74) AISC, After By-product Credits, per Silver Ounce $9.04 $12.88 $14.37 $8.61 $15.98 $14.20 $5.77 $12.86 $11.25 $3.19 $14.34 $9.19 In thousands (except per ounce amounts) Three Months Ended December 31, 2022 Three Months Ended September 30, 2022 Twelve Months Ended December 31, 2022 Twelve Months Ended December 31, 2021 Casa Berardi Total Gold Casa Berardi Total Gold Casa Berardi Nevada and Other(2) Total Gold Casa Berardi Nevada Operations(2) Total Gold Total cost of sales $ 65,328 $ 65,328 $ 59,532 $ 59,532 $ 248,898 $ 4,535 $ 253,433 $ 229,829 $ 48,945 $ 278,774 Depreciation, depletion and amortization (14,568 ) (14,568 ) (15,089 ) (15,089 ) (60,962 ) (361 ) (61,323 ) (80,744 ) (15,341 ) (96,085 ) Treatment costs 521 521 429 429 1,866 — 1,866 1,513 1,731 3,244 Change in product inventory 1,122 1,122 420 420 186 — 186 2,439 (10,907 ) (8,468 ) Reclamation and other costs (196 ) (196 ) (203 ) (203 ) (819 ) — (819 ) (841 ) 300 (541 ) Exclusion of Nevada and Other costs — — — — — (4,174 ) (4,174 ) — — — Cash Cost, Before By-product Credits(1) 52,207 52,207 45,089 45,089 189,169 — 189,169 152,196 24,728 176,924 Reclamation and other costs 196 196 204 204 819 — 819 841 1,008 1,849 Exploration 1,741 1,741 2,314 2,314 6,627 — 6,627 5,326 — 5,326 Sustaining capital 11,438 11,438 10,457 10,457 36,883 — 36,883 30,643 511 31,154 AISC, Before By-product Credits(1) 65,582 65,582 58,064 58,064 233,498 — 233,498 189,006 26,247 215,253 By-product credits: Silver (124 ) (124 ) (131 ) (131 ) (610 ) — (610 ) (839 ) (1,152 ) (1,991 ) Total By-product credits (124 ) (124 ) (131 ) (131 ) (610 ) — (610 ) (839 ) (1,152 ) (1,991 ) Cash Cost, After By-product Credits $ 52,083 $ 52,083 $ 44,958 $ 44,958 $ 188,559 $ — $ 188,559 $ 151,357 $ 23,576 $ 174,933 AISC, After By-product Credits $ 65,458 $ 65,458 $ 57,933 $ 57,933 $ 232,888 $ — $ 232,888 $ 188,167 $ 25,095 $ 213,262 Divided by gold ounces produced 31 31 33 33 128 — 128 135 21 156 Cash Cost, Before By-product Credits, per Gold Ounce $ 1,700 $ 1,700 $ 1,353 $ 1,353 $ 1,483 $ — $ 1,483 $ 1,131 $ 1,193 $ 1,140 By-product credits per ounce (4 ) (4 ) (4 ) (4 ) (5 ) — (5 ) (6 ) (56 ) (13 ) Cash Cost, After By-product Credits, per Gold Ounce $ 1,696 $ 1,696 $ 1,349 $ 1,349 $ 1,478 $ — $ 1,478 $ 1,125 $ 1,137 $ 1,127 AISC, Before By-product Credits, per Gold Ounce $ 2,136 $ 2,136 $ 1,742 $ 1,742 $ 1,830 $ — $ 1,830 $ 1,405 $ 1,267 $ 1,387 By-product credits per ounce (4 ) (4 ) (4 ) (4 ) (5 ) — (5 ) (6 ) (56 ) (13 ) AISC, After By-product Credits, per Gold Ounce $ 2,132 $ 2,132 $ 1,738 $ 1,738 $ 1,825 $ — $ 1,825 $ 1,399 $ 1,211 $ 1,374 In thousands (except per ounce amounts) Three Months Ended December 31, 2022 Three Months Ended September 30, 2022 Twelve Months Ended December 31, 2022 Twelve Months Ended December 31, 2021 Total Silver Total Gold Total Total Silver Total Gold Total Total Silver Total Gold Total Total Silver Total Gold Total Total cost of sales $ 102,893 $ 65,328 $ 168,221 $ 76,666 $ 59,532 $ 136,198 $ 349,316 $ 253,433 $ 602,749 $ 310,898 $ 278,774 $ 589,672 Depreciation, depletion and amortization (23,106 ) (14,568 ) (37,674 ) (17,566 ) (15,089 ) (32,655 ) (82,615 ) (61,323 ) (143,938 ) (75,708 ) (96,085 ) (171,793 ) Treatment costs 15,801 521 16,322 14,268 429 14,697 56,441 1,866 58,307 52,822 3,244 56,066 Change in product inventory (4,585 ) 1,122 (3,463 ) 7,486 420 7,906 7,934 186 8,120 (326 ) (8,468 ) (8,794 ) Exclusion of Nevada and Other — — — — — — — (4,174 ) (4,174 ) — — — Reclamation and other costs 234 (196 ) 38 (270 ) (203 ) (473 ) (2,523 ) (819 ) (3,342 ) (4,600 ) (541 ) (5,141 ) Cash Cost, Before By-product Credits(1) 91,237 52,207 143,444 80,584 45,089 125,673 328,553 189,169 517,722 283,086 176,924 460,010 Reclamation and other costs 988 196 1,184 987 204 1,191 3,949 819 4,768 4,446 1,849 6,295 Exploration 1,409 1,741 3,150 4,498 2,314 6,812 8,487 6,627 15,114 6,817 5,326 12,143 Sustaining capital 18,231 11,438 29,669 21,670 10,457 32,127 74,345 36,883 111,228 54,309 31,154 85,463 General and administrative 14,395 — 14,395 11,003 11,003 43,384 — 43,384 34,570 — 34,570 AISC, Before By-product Credits(1) 126,260 65,582 191,842 118,742 58,064 176,806 458,718 233,498 692,216 383,228 215,253 598,481 By-product credits: Zinc (32,361 ) — (32,361 ) (33,399 ) — (33,399 ) (141,442 ) — (141,442 ) (119,693 ) — (119,693 ) Gold (19,630 ) — (19,630 ) (17,019 ) — (17,019 ) (75,596 ) — (75,596 ) (72,011 ) — (72,011 ) Lead (21,743 ) — (21,743 ) (18,008 ) — (18,008 ) (82,368 ) — (82,368 ) (73,888 ) — (73,888 ) Silver (124 ) (124 ) (131 ) (131 ) — (610 ) (610 ) — (1,991 ) (1,991 ) Total By-product credits (73,734 ) (124 ) (73,858 ) (68,426 ) (131 ) (68,557 ) (299,406 ) (610 ) (300,016 ) (265,592 ) (1,991 ) (267,583 ) Cash Cost, After By-product Credits $ 17,503 $ 52,083 $ 69,586 $ 12,158 $ 44,958 $ 57,116 $ 29,147 $ 188,559 $ 217,706 $ 17,494 $ 174,933 $ 192,427 AISC, After By-product Credits $ 52,526 $ 65,458 $ 117,984 $ 50,316 $ 57,933 $ 108,249 $ 159,312 $ 232,888 $ 392,200 $ 117,636 $ 213,262 $ 330,898 Divided by ounces produced 3,657 31 3,544 33 14,155 128 12,807 156 Cash Cost, Before By-product Credits, per Ounce $ 24.95 $ 1,700 $ 22.74 1,353 $ 23.21 $ 1,483 $ 22.11 $ 1,140 By-product credits per ounce (20.16 ) (4 ) (19.31 ) (4 ) (21.15 ) $ (5 ) (20.74 ) (13 ) Cash Cost, After By-product Credits, per Ounce $ 4.79 $ 1,696 $ 3.43 $ 1,349 $ 2.06 $ 1,478 $ 1.37 $ 1,127 AISC, Before By-product Credits, per Ounce $ 34.53 $ 2,136 $ 33.51 $ 1,742 $ 32.40 $ 1,830 $ 29.93 $ 1,387 By-product credits per ounce (20.16 ) (4 ) (19.31 ) (4 ) (21.15 ) $ (5 ) (20.74 ) (13 ) AISC, After By-product Credits, per Ounce $ 14.37 2,132 $ 14.20 $ 1,738 $ 11.24 $ 1,825 $ 9.19 $ 1,374 In thousands (except per ounce amounts) Three Months Ended December 31, 2021 Three Months Ended June 30, 2022 Three Months Ended March 31, 2022 Greens Creek Lucky Friday Corporate(3) Total Silver Greens Creek Lucky Friday Corporate(3) Total Silver Greens Creek Lucky Friday Corporate and other(3) Total Silver Cost of sales and other direct production costs and depreciation, depletion and amortization $ 49,252 $ 23,251 $ 152 $ 72,655 $ 60,506 $ 30,348 $ — $ 90,854 $ 49,638 $ 29,264 $ 0 $ 78,902 Depreciation, depletion and amortization (6,300 ) (6,518 ) (152 ) (12,970 ) (13,629 ) (8,862 ) — (22,491 ) (11,420 ) (8,032 ) — (19,452 ) Treatment costs 8,655 3,636 — 12,291 8,778 4,803 — 13,581 9,096 3,677 — 12,773 Change in product inventory 236 1,351 — 1,587 (1,102 ) 503 — (599 ) 6,538 (905 ) — 5,633 Reclamation and other costs(5) (1,689 ) (199 ) — (1,888 ) (1,005 ) (256 ) — (1,261 ) (850 ) (361 ) 0 (1,211 ) Cash Cost, Before By-product Credits(1) 50,154 21,521 — 71,675 53,548 26,536 — 80,084 53,002 23,643 — 76,645 Reclamation and other costs 847 264 — 1,111 705 282 — 987 705 282 — 987 Exploration 696 — 867 1,563 929 — 769 1,698 165 — 716 881 Sustaining capital 10,123 7,413 172 17,708 14,668 8,110 99 22,877 5,956 5,562 48 11,566 General and administrative(5) — — 6,585 6,585 — — 9,692 9,692 — — 8,294 8,294 AISC, Before By-product Credits(1) 61,820 29,198 7,624 98,642 69,850 34,928 10,560 115,338 59,828 29,487 9,058 98,373 By-product credits: Zinc (25,643 ) (5,022 ) (30,665 ) (32,828 ) (8,227 ) (41,055 ) (28,651 ) (5,977 ) (34,628 ) Gold (15,712 ) 0 (15,712 ) (20,364 ) — (20,364 ) (18,583 ) — (18,583 ) Lead (7,657 ) (12,204 ) (19,861 ) (8,271 ) (14,543 ) (22,814 ) (7,966 ) (11,836 ) (19,802 ) Total By-product credits (49,012 ) (17,226 ) — (66,238 ) (61,463 ) (22,770 ) — (84,233 ) (55,200 ) (17,813 ) — (73,013 ) Cash Cost, After By-product Credits $ 1,142 $ 4,295 $ — $ 5,437 $ (7,915 ) $ 3,766 $ — $ (4,149 ) $ (2,198 ) $ 5,830 $ — $ 3,632 AISC, After By-product Credits $ 12,808 $ 11,972 $ 7,624 $ 32,404 $ 8,387 $ 12,158 $ 10,560 $ 31,105 $ 4,628 $ 11,674 $ 9,058 $ 25,360 Divided by ounces produced 2,262 955 3,217 2,410 1,226 3,636 2,430 888 3,318 Cash Cost, Before By-product Credits, per Silver Ounce $ 22.18 $ 22.54 $ 22.28 $ 22.21 $ 21.65 $ 22.03 $ 21.82 $ 26.63 $ 23.10 By-product credits per ounce (21.68 ) (18.04 ) (20.59 ) (25.50 ) (18.58 ) (23.17 ) (22.72 ) (20.06 ) (22.01 ) Cash Cost, After By-product Credits, per Silver Ounce $ 0.50 $ 4.50 $ 1.69 $ (3.29 ) $ 3.07 $ (1.14 ) $ (0.90 ) $ 6.57 $ 1.09 AISC, Before By-product Credits, per Silver Ounce $ 27.34 $ 30.58 $ 30.67 $ 28.98 $ 28.49 $ 31.72 $ 24.62 $ 33.21 $ 29.65 By-product credits per ounce (21.68 ) (18.04 ) (20.59 ) (25.50 ) (18.58 ) (23.17 ) (22.72 ) (20.06 ) (22.01 ) AISC, After By-product Credits, per Silver Ounce $ 5.66 $ 12.54 $ 10.08 $ 3.48 $ 9.91 $ 8.55 $ 1.90 $ 13.15 $ 7.64 In thousands (except per ounce amounts) Three Months Ended December 31, 2021 Three Months Ended June 30, 2022 Three Months Ended March 31, 2022 Casa Berardi Nevada Operations(2) Total Gold Casa Berardi Total Gold Casa Berardi Total Gold Cost of sales and other direct production costs and depreciation, depletion and amortization $ 57,069 $ 2,113 $ 59,182 $ 61,870 $ 61,870 $ 62,168 $ 62,168 Depreciation, depletion and amortization (19,585 ) (320 ) (19,905 ) (15,459 ) (15,459 ) (15,846 ) (15,846 ) Treatment costs 423 — 423 457 457 458 458 Change in product inventory 4,839 (956 ) 3,883 (793 ) (793 ) (563 ) (563 ) Reclamation and other costs (208 ) 1 (207 ) (209 ) (209 ) (210 ) (210 ) Cash Cost, Before By-product Credits(1) 42,538 838 43,376 45,866 45,866 46,007 46,007 Reclamation and other costs 209 327 536 209 209 210 210 Exploration 1,775 — 1,775 1,178 1,178 1,394 1,394 Sustaining capital 10,459 316 10,775 7,597 7,597 7,281 7,281 AISC, Before By-product Credits(1) 54,981 1,481 56,462 54,850 54,850 54,892 54,892 By-product credits: Silver (183 ) (21 ) (204 ) (188 ) (188 ) (166 ) (166 ) Total By-product credits (183 ) (21 ) (204 ) (188 ) (188 ) (166 ) (166 ) Cash Cost, After By-product Credits $ 42,355 $ 817 $ 43,172 $ 45,678 $ 45,678 $ 45,841 $ 45,841 AISC, After By-product Credits $ 54,798 $ 1,460 $ 56,258 $ 54,662 $ 54,662 $ 54,726 $ 54,726 Divided by gold ounces produced 37 — 37 33 33 30 30 Cash Cost, Before By-product Credits, per Gold Ounce $ 1,142 $ 1,737 $ 1,148 $ 1,377 $ 1,377 $ 1,521 $ 1,521 By-product credits per ounce (5 ) (44 ) (5 ) (6 ) (6 ) (5 ) (5 ) Cash Cost, After By-product Credits, per Gold Ounce $ 1,137 $ 1,693 $ 1,143 $ 1,371 $ 1,371 $ 1,516 $ 1,516 AISC, Before By-product Credits, per Gold Ounce $ 1,475 $ 3,073 $ 1,499 $ 1,647 $ 1,647 $ 1,815 $ 1,815 By-product credits per ounce (5 ) (44 ) (5 ) (6 ) (6 ) (5 ) (5 ) AISC, After By-product Credits, per Gold Ounce $ 1,470 $ 3,029 $ 1,494 $ 1,641 $ 1,641 $ 1,810 $ 1,810 In thousands (except per ounce amounts) Three Months Ended December 31, 2021 Three Months Ended June 30, 2022 Three Months Ended March 31, 2022 Total Silver Total Gold Total Total Silver Total Gold Total Total Silver Total Gold Total Cost of sales and other direct production costs and depreciation, depletion and amortization $ 72,655 $ 59,182 $ 131,837 $ 90,854 $ 61,870 $ 152,724 $ 78,902 $ 62,168 $ 141,070 Depreciation, depletion and amortization (12,970 ) (19,905 ) (32,875 ) (22,491 ) (15,459 ) (37,950 ) (19,452 ) (15,846 ) (35,298 ) Treatment costs 12,291 423 12,714 13,581 457 14,038 12,773 458 13,231 Change in product inventory 1,587 3,883 5,470 (599 ) (793 ) (1,392 ) 5,633 (563 ) 5,070 Reclamation and other costs (1,888 ) (207 ) (2,095 ) (1,261 ) (209 ) (1,470 ) (1,211 ) (210 ) (1,421 ) Cash Cost, Before By-product Credits(1) 71,675 43,376 115,051 80,084 45,866 125,950 76,645 46,007 122,652 Reclamation and other costs 1,111 536 1,647 987 209 1,196 987 210 1,197 Exploration 1,563 1,775 3,338 1,698 1,178 2,876 881 1,394 2,275 Sustaining capital 17,708 10,775 28,483 22,877 7,597 30,474 11,566 7,281 18,847 General and administrative 6,585 — 6,585 9,692 9,692 8,294 — 8,294 AISC, Before By-product Credits(1) 98,642 56,462 155,104 115,338 54,850 170,188 98,373 54,892 153,265 By-product credits: Zinc (30,665 ) — (30,665 ) (41,055 ) — (41,055 ) (34,628 ) (34,628 ) Gold (15,712 ) — (15,712 ) (20,364 ) — (20,364 ) (18,583 ) (18,583 ) Lead (19,861 ) — (19,861 ) (22,814 ) — (22,814 ) (19,802 ) (19,802 ) Silver (204 ) (204 ) (188 ) (188 ) (166 ) (166 ) Total By-product credits (66,238 ) (204 ) (66,442 ) (84,233 ) (188 ) (84,421 ) (73,013 ) (166 ) (73,179 ) Cash Cost, After By-product Credits $ 5,437 $ 43,172 $ 48,609 $ (4,149 ) $ 45,678 $ 41,529 $ 3,632 $ 45,841 $ 49,473 AISC, After By-product Credits $ 32,404 $ 56,258 $ 88,662 $ 31,105 $ 54,662 $ 85,767 $ 25,360 $ 54,726 $ 80,086 Divided by ounces produced 3,217 37 3,636 33 3,318 30 Cash Cost, Before By-product Credits, per Ounce $ 22.28 $ 1,148 $ 22.03 1,377 $ 23.10 $ 1,521 By-product credits per ounce (20.59 ) (5 ) (23.17 ) (6 ) (22.01 ) (5 ) Cash Cost, After By-product Credits, per Ounce $ 1.69 $ 1,143 $ (1.14 ) $ 1,371 $ 1.09 $ 1,516 AISC, Before By-product Credits, per Ounce $ 30.67 $ 1,499 $ 31.72 $ 1,647 $ 29.65 $ 1,815 By-product credits per ounce (20.59 ) (5 ) (23.17 ) (6 ) (22.01 ) (5 ) AISC, After By-product Credits, per Ounce $ 10.08 $ 1,494 $ 8.55 $ 1,641 $ 7.64 $ 1,810 In thousands (except per ounce amounts) Estimate for Twelve Months Ended December 31, 2023 Greens Creek Lucky Friday Keno Hill Corporate(3) Total Silver Total cost of sales $ 245,000 $ 128,000 $ 40,000 $ 413,000 Depreciation, depletion and amortization (46,000 ) (37,900 ) (6,800 ) (90,700 ) Treatment costs 43,700 15,375 5,150 64,225 Change in product inventory (5,100 ) (750 ) 1,000 (4,850 ) Reclamation and other costs 1,000 1,000 750 2,750 Cash Cost, Before By-product Credits(1) 238,600 105,725 40,100 384,425 Reclamation and other costs 2,800 1,100 — 3,900 Exploration 5,900 — 2,600 2,250 10,750 Sustaining capital 48,500 30,200 550 79,250 General and administrative — — — 44,000 44,000 AISC, Before By-product Credits(1) 295,800 137,025 43,250 46,250 522,325 By-product credits: Zinc (113,500 ) (29,900 ) (2,400 ) (145,800 ) Gold (90,100 ) — — (90,100 ) Lead (34,800 ) (64,700 ) (4,500 ) (104,000 ) Total By-product credits (238,400 ) (94,600 ) (6,900 ) — (339,900 ) Cash Cost, After By-product Credits $ 200 $ 11,125 $ 33,200 $ — $ 44,525 AISC, After By-product Credits $ 57,400 $ 42,425 $ 36,350 $ 46,250 $ 182,425 Divided by silver ounces produced 9,250 4,750 2,750 16,750 Cash Cost, Before By-product Credits, per Silver Ounce $ 25.79 $ 22.26 $ 14.58 $ 22.95 By-product credits per silver ounce (25.77 ) (19.92 ) (2.51 ) (20.29 ) Cash Cost, After By-product Credits, per Silver Ounce $ 0.02 $ 2.34 $ 12.07 $ 2.66 AISC, Before By-product Credits, per Silver Ounce $ 31.98 $ 28.85 $ 15.73 $ 31.18 By-product credits per silver ounce (25.77 ) (19.92 ) (2.51 ) (20.29 ) AISC, After By-product Credits, per Silver Ounce $ 6.21 $ 8.93 $ 13.22 $ 10.89 In thousands (except per ounce amounts) Estimate for Twelve Months Ended December 31, 2023 Casa Berardi Total Gold Total cost of sales $ 220,000 $ 220,000 Depreciation, depletion and amortization (52,800 ) (52,800 ) Treatment costs 300 300 Change in product inventory (1,300 ) (1,300 ) Reclamation and other costs 500 500 Cash Cost, Before By-product Credits(1) 166,700 166,700 Reclamation and other costs 800 800 Exploration 5,400 5,400 Sustaining capital 52,200 52,200 AISC, Before By-product Credits(1) 225,100 225,100 By-product credits: Silver (600 ) (600 ) Total By-product credits (600 ) (600 ) Cash Cost, After By-product Credits $ 166,100 $ 166,100 AISC, After By-product Credits $ 224,500 $ 224,500 Divided by gold ounces produced 112.5 112.5 Cash Cost, Before By-product Credits, per Gold Ounce $ 1,482 $ 1,482 By-product credits per gold ounce (5 ) (5 ) Cash Cost, After By-product Credits, per Gold Ounce $ 1,477 $ 1,477 AISC, Before By-product Credits, per Gold Ounce $ 2,001 $ 2,001 By-product credits per gold ounce (5 ) (5 ) AISC, After By-product Credits, per Gold Ounce $ 1,996 $ 1,996 In thousands (except per ounce amounts) Estimate for Twelve Months Ended December 31, 2023 Total Silver Total Gold Total Total cost of sales $ 413,000 $ 220,000 $ 633,000 Depreciation, depletion and amortization (90,700 ) (52,800 ) (143,500 ) Treatment costs 64,225 300 64,525 Change in product inventory (4,850 ) (1,300 ) (6,150 ) Reclamation and other costs 2,750 500 3,250 Cash Cost, Before By-product Credits(1) 384,425 166,700 551,125 Reclamation and other costs 3,900 800 4,700 Exploration 10,750 5,400 16,150 Sustaining capital 79,250 52,200 131,450 General and administrative 44,000 — 44,000 AISC, Before By-product Credits(1) 522,325 225,100 747,425 By-product credits: Zinc (145,800 ) — (145,800 ) Gold (90,100 ) — (90,100 ) Lead (104,000 ) — (104,000 ) Silver (600 ) (600 ) Total By-product credits (339,900 ) (600 ) (340,500 ) Cash Cost, After By-product Credits $ 44,525 $ 166,100 $ 210,625 AISC, After By-product Credits $ 182,425 $ 224,500 $ 406,925 Divided by ounces produced 16,750 112.5 Cash Cost, Before By-product Credits, per Ounce $ 22.95 $ 1,482 By-product credits per ounce (20.29 ) (5 ) Cash Cost, After By-product Credits, per Ounce $ 2.66 $ 1,477 AISC, Before By-product Credits, per Ounce $ 31.18 $ 2,001 By-product credits per ounce (20.29 ) (5 ) AISC, After By-product Credits, per Ounce $ 10.89 $ 1,996 (1) Includes all direct and indirect operating costs related to the physical activities of producing metals, including mining, processing and other plant costs, third-party refining and marketing expense, non-discretionary on-site general and administrative costs, royalties and mining production taxes, before by-product revenues earned from all metals other than the primary metal produced at each operation. AISC, Before By-product Credits also includes on-site exploration, reclamation, and sustaining capital costs. (2) Production was suspended at the Hollister mine in the third quarter of 2019 and at the Midas mine and Aurora mill in late 2019, and at the Midas mill and Fire Creek mine in mid-2021. Suspension-related costs at Nevada Operations totaling $19.7 million for 2022 and $20.4 million for 2021 are included in a separate line item on our consolidated statements of operations and excluded from the calculations of cost of sales and other direct production costs and depreciation, depletion and amortization and Cash Cost and AISC, After By-product Credits, per Gold Ounce. (3) AISC, Before By-product Credits for our consolidated silver properties includes corporate costs for general and administrative expense, exploration and sustaining capital. Reconciliation of Net Income (Loss) (GAAP) and Debt (GAAP) to Adjusted EBITDA (non-GAAP) and Net Debt (non-GAAP) This release refers to the non-GAAP measures of adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA"), which is a measure of our operating performance, and net debt to adjusted EBITDA for the last 12 months (or "LTM adjusted EBITDA"), which is a measure of our ability to service our debt. Adjusted EBITDA is calculated as net income (loss) before the following items: interest expense, income and mining taxes, depreciation, depletion, and amortization expense, ramp-up and suspension costs, gains and losses on disposition of properties, plants, equipment and mineral interests, foreign exchange gains and losses, unrealized gains and losses on derivative contracts, interest and other income, unrealized gains on investments, provisions for environmental matters, stock-based compensation, provisional price gains and losses, the grant of common shares to the Hecla Charitable Foundation, adjustments of inventory to net realizable value. Net debt is calculated as total debt, which consists of the liability balances for our Senior Notes, capital leases, and other notes payable, less the total of our cash and cash equivalents and short-term investments. Management believes that, when presented in conjunction with comparable GAAP measures, adjusted EBITDA and net debt to LTM adjusted EBITDA are useful to investors in evaluating our operating performance and ability to meet our debt obligations. The following table reconciles net loss and debt to adjusted EBITDA and net debt: Dollars are in thousands 4Q-2022 3Q-2022 2Q-2022 1Q-2022 4Q-2021 FY 2022 FY 2021 Net (loss) income $ (4,452 ) $ (23,526 ) $ (13,523 ) $ 4,153 $ 11,875 $ (37,348 ) $ 35,095 Interest expense 11,008 10,874 10,505 10,406 10,461 42,793 41,945 Income and mining taxes (3,924 ) (9,527 ) 254 5,631 (25,645 ) (7,566 ) (29,569 ) Depreciation, depletion and amortization 37,576 32,992 38,072 35,298 32,875 143,938 171,793 Ramp-up and suspension costs 7,575 5,092 5,242 6,205 5,998 24,114 23,012 Loss (gain) on disposition of properties, plants, equipment, and mineral interests 19 5 (8 ) 326 16 87 Foreign exchange loss (gain) 900 (5,667 ) (4,482 ) 2,038 (393 ) (7,211 ) (417 ) Unrealized loss (gain) on derivative contracts (864 ) (873 ) 689 204 25,840 (844 ) 11,903 Provisional price gain (625 ) 6,625 15,807 (968 ) (5,648 ) 20,839 (9,349 ) Provision for closed operations and environmental matters 3,741 1,781 1,628 1,643 3,693 8,793 17,964 Stock-based compensation 1,714 1,773 1,254 1,271 1,307 6,012 6,081 Unrealized (gain) loss on investments (9,121 ) 5,114 15,739 (6,100 ) (2,822 ) 5,632 4,295 Adjustments of inventory to net realizable value 487 1,405 754 0 — 2,646 6,524 Monetization of zinc hedges 16,664 16,664 Other 1,582 473 (1,470 ) (1,571 ) 382 (986 ) (584 ) Adjusted EBITDA $ 62,261 $ 26,555 $ 70,474 $ 58,202 $ 58,249 $ 217,492 $ 278,780 Total debt $ 517,742 $ 515,871 Less: Cash and cash equivalents 104,743 210,010 Net debt $ 412,999 $ 305,861 Net debt/LTM adjusted EBITDA (non-GAAP) 1.9 1.1 Reconciliation of Net (Loss) Income Applicable to Common Stockholders (GAAP) to Adjusted Net (Loss) Income Applicable to Common Shareholders (non-GAAP) This release refers to a non-GAAP measure of adjusted net income (loss) applicable to common stockholders and adjusted net income (loss) per share, which are indicators of our performance. They exclude certain impacts which are of a nature which we believe are not reflective of our underlying performance. Management believes that adjusted net income (loss) per common share provides investors with the ability to better evaluate our underlying operating performance. Dollars are in thousands 4Q-2022 3Q-2022 2Q-2022 1Q-2022 4Q-2021 FY 2022 FY 2021 Net (loss) income applicable to common stockholders (GAAP) $ (4,590 ) $ (23,664 ) $ (13,661 ) $ 4,015 $ 11,737 $ (37,900 ) $ 34,543 Adjusted for items below: Derivative contracts losses (gains) (864 ) (873 ) 689 204 25,840 $ (844 ) (32,655 ) Provisional pricing losses (gains) (625 ) 6,625 15,807 (968 ) (5,648 ) $ 20,839 (9,349 ) Unrealized losses (gains) on equity investments (9,117 ) 5,110 15,739 (6,100 ) (2,822 ) $ 5,632 (4,295 ) Environmental accruals 2,860 — — 14 — $ 2,874 2,882 Foreign exchange (gain) loss 900 (5,667 ) (4,482 ) 2,038 (393 ) $ (7,211 ) (417 ) Ramp-up and suspension Costs 7,575 5,092 5,242 6,205 5,998 $ 24,114 23,012 Loss (gain) on disposition of properties, plants, equipment and mineral interests — 19 5 (8 ) 326 $ 16 87 Adjustments of inventory to net realizable value 487 1,405 754 — — $ 2,646 6,524 Monetization of Zinc Hedges 16,664 — — — — $ 16,664 — Other 939 — — — — $ 939 — Adjustment income (loss) applicable to common stockholders $ 14,229 $ (11,953 ) $ 20,093 $ 5,400 $ 35,038 $ 27,769 $ 20,332 Weighted average shares – basic 596,959 554,531 539,401 538,490 538,124 557,344 536,192 Weighted average shares – diluted 596,959 554,531 539,401 544,061 543,134 557,344 542,176 Basic adjusted net income (loss) per common stock (in cents) 0.02 (0.02 ) 0.04 0.01 0.07 0.05 0.04 Diluted adjusted net income (loss) per common stock (in cents) 0.02 (0.02 ) 0.04 0.01 0.06 0.05 0.04 Reconciliation of Cash Provided by Operating Activities (GAAP) to Free Cash Flow (non-GAAP) This release refers to a non-GAAP measure of free cash flow, calculated as cash provided by operating activities, less additions to properties, plants, equipment and mineral interests. Management believes that, when presented in conjunction with comparable GAAP measures, free cash flow is useful to investors in evaluating our operating performance. The following table reconciles cash provided by operating activities to free cash flow: Dollars are in thousands Three Months Ended December 31, 2022 Twelve Months Ended December 31, 2022 2022 2021 2022 2021 Cash provided by operating activities $ 36,120 $ 53,355 $ 89,890 $ 220,337 Less: Additions to properties, plants equipment and mineral interests $ (56,140 ) $ (28,838 ) $ (149,378 ) $ (109,048 ) Free cash flow $ (20,020 ) $ 24,517 $ (59,488 ) $ 111,289 TABLE A Mineral Reserves – 12/31/2022(1) Proven Reserves(1) Asset Tons (000) Silver (oz/ton) Gold (oz/ton) Lead % Zinc % Silver (000 oz) Gold (000 oz) Lead Tons Zinc Tons Greens Creek(2,3) 7 16.1 0.07 2.3 5.4 108 0.4 150 360 Lucky Friday(2,4) 4,734 13.8 - 8.6 3.7 64,638 - 404,160 174,510 Casa Berardi Underground(2,5) 552 - 0.17 - - - 95 - - Casa Berardi Open Pit(2,5) 4,410 - 0.09 - - - 417 - - Keno Hill(2,6) - - - - - - - - - Total 9,703 64,746 512 404,310 174,870 Probable Reserves(7) Asset Tons (000) Silver (oz/ton) Gold (oz/ton) Lead % Zinc % Silver (000 oz) Gold (000 oz) Lead (Tons) Zinc (Tons) Greens Creek(2,3) 10,668 10.9 0.09 2.5 6.5 116,748 935 264,600 694,800 Lucky Friday(2,4) 840 12.8 - 8.1 3.2 9,978 - 63,510 25,030 Casa Berardi Underground(2,5) 989 - 0.17 - - - 166 - - Casa Berardi Open Pit(2,5) 12,434 - 0.08 - - - 936 - - Keno Hill(2,6) 2,197 22.5 0.01 2.4 2.2 49,473 13 52,520 49,320 Total 27,128 176,199 2,050 380,630 769,150 Proven and Probable Reserves Asset Tons (000) Silver (oz/ton) Gold (oz/ton) Lead % Zinc % Silver (000 oz) Gold (000 oz) Lead (Tons) Zinc (Tons) Greens Creek(2,3) 10,675 10.9 0.09 2.5 6.5 116,856 935 264,750 695,160 Lucky Friday(2,4) 5,574 13.4 - 8.4 3.6 74,616 - 467,670 199,530 Casa Berardi Underground(2,5) 1,541 - 0.17 - - - 261 - - Casa Berardi Open Pit(2,5) 16,844 - 0.08 - - - 1,353 - - Keno Hill(2,6) 2,197 22.5 0.01 2.4 2.2 49,473 13 52,520 49,320 Total 36,829 240,945 2,562 784,940 944,020 (1) The term “reserve” means an estimate of tonnage and grade or quality of indicated and measured mineral resources that, in the opinion of the qualified person, can be the basis of an economically viable project. More specifically, it is the economically mineable part of a measured or indicated mineral resource, which includes diluting materials and allowances for losses that may occur when the material is mined or extracted. The term “proven reserves” means the economically mineable part of a measured mineral resource and can only result from conversion of a measured mineral resource. See footnotes 8 and 9 below. (2) Mineral reserves are based on $17/oz silver, $1600/oz gold, $0.90/lb lead, $1.15/lb zinc, unless otherwise stated. All Mineral Reserves are reported in-situ with estimates of mining dilution and mining loss. (3) The reserve NSR cut-off values for Greens Creek are $210/ton for all zones except the Gallagher Zone at $215/ton; metallurgical recoveries (actual 2022): 81% for silver, 72% for gold, 82% for lead, and 89% for zinc. (4) The reserve NSR cut-off values for Lucky Friday are $241.34/ton for the 30 Vein and $268.67/ton for the Intermediate Veins; metallurgical recoveries (actual 2022): 95% for silver, 95% for lead, and 88% for zinc. (5) The average reserve cut-off grades at Casa Berardi are 0.12 oz/ton gold underground and 0.04 oz/ton gold for open pit. Metallurgical recovery (actual 2022): 87% for gold; US$/CAN$ exchange rate: 1:1.3. (6) The reserve NSR cut-off value at Keno Hill is $244.24/ton (CAN$350/tonne), Metallurgical recovery: 93% for silver, 25% for gold, 93% for lead, 72% for zinc; US$/CAN$ exchange rate: 1:1.3. (7) The term “probable reserves” means the economically mineable part of an indicated and, in some cases, a measured mineral resource. See footnotes 9 and 10 below. Totals may not represent the sum of parts due to rounding. Mineral Resources – 12/31/2022(8) Measured Resources(9) Asset Tons (000) Silver (oz/ton) Gold (oz/ton) Lead % Zinc % Copper % Silver (000 oz) Gold (000 oz) Lead (Tons) Zinc (Tons) Copper (Tons) Greens Creek(12,13) - - - - - - - - - - - Lucky Friday(12,14) 6,237 7.8 - 5.4 2.6 - 48,551 - 335,850 161,000 - Casa Berardi Underground(12,15) 2,440 - 0.22 - - - - 530 - - - Casa Berardi Open Pit(12,15) 483 - 0.04 - - - - 20 - - - Keno Hill(12,16) - - - - - - - - - - - San Sebastian - Oxide(17) - - - - - - - - - - - San Sebastian - Sulfide(17) - - - - - - - - - - - Fire Creek(18,19) - - - - - - - - - - - Hollister(18,20) 18 4.9 0.59 - - - 87 10 - - - Midas(18,21) 2 7.6 0.68 - - - 14 1 - - - Heva(22) - - - - - - - - - - - Hosco(22) - - - - - - - - - - - Star(12,23) - - - - - - - - - - - Total 9,180 48,652 561 335,850 161,000 - Indicated Resources(10) Asset Tons (000) Silver (oz/ton) Gold (oz/ton) Lead % Zinc % Copper % Silver (000 oz) Gold (000 oz) Lead (Tons) Zinc (Tons) Copper (Tons) Greens Creek(12,13) 8,421 12.9 0.10 2.9 8.0 - 108,717 810 245,990 675,740 - Lucky Friday(12,14) 1,194 8.0 - 5.4 2.2 - 9,581 - 64,390 26,200 - Casa Berardi Underground(12,15) 3,870 - 0.17 - - - - 660 - - - Casa Berardi Open Pit(12,15) 1,323 - 0.04 - - - - 48 - - - Keno Hill(12,16) 4,061 8.0 0.007 1.0 4.0 - 32,288 29 39,540 163,130 - San Sebastian - Oxide(17) 1,453 6.5 0.09 - - - 9,430 135 - - - San Sebastian - Sulfide(17) 1,187 5.5 0.01 1.9 2.9 1.2 6,579 16 22,420 34,100 14,650 Fire Creek(18,19) 112 1.1 0.53 - - - 122 59 - - - Hollister(18,20) 70 1.9 0.58 - - - 130 40 - - - Midas(18,21) 76 5.7 0.42 - - - 430 32 - - - Heva(22) 1,266 - 0.06 - - - - 76 - - - Hosco(22) 29,287 - 0.04 - - - - 1,202 - - - Star(12,23) 1,068 3.0 - 6.4 7.7 - 3,177 - 67,970 82,040 - Total 53,388 170,454 3,107 440,310 981,210 14,650 Measured & Indicated Resources Asset Tons (000) Silver (oz/ton) Gold (oz/ton) Lead % Zinc % Copper % Silver (000 oz) Gold (000 oz) Lead (Tons) Zinc (Tons) Copper (Tons) Greens Creek(12,13) 8,421 12.9 0.10 2.9 8.0 - 108,717 810 245,990 675,740 - Lucky Friday(12,14) 7,431 7.8 - 5.4 2.5 - 58,132 - 400,240 187,200 - Casa Berardi Underground(12,15) 6,310 - 0.19 - - - - 1,190 - - - Casa Berardi Open Pit(12,15) 1,806 - 0.04 - - - - 67 - - - Keno Hill(12,16) 4,061 8.0 0.007 1.0 4.0 - 32,288 29 39,540 163,130 - San Sebastian - Oxide(17) 1,453 6.5 0.09 - - - 9,430 135 - - - San Sebastian - Sulfide(17) 1,187 5.5 0.01 1.9 2.9 1.2 6,579 16 22,420 34,100 14,650 Fire Creek(18,19) 112 1.1 0.53 - - - 122 59 - - - Hollister(18,20) 88 2.5 0.58 - - - 217 51 - - - Midas(18,21) 78 5.7 0.43 - - - 444 33 - - - Heva(22) 1,266 - 0.06 - - - - 76 - - - Hosco(22) 29,287 - 0.04 - - - - 1,202 - - - Star(12,23) 1,068 3.0 - 6.4 7.7 - 3,177 - 67,970 82,040 - Total 62,568 219,106 3,668 776,160 1,142,210 14,650 Inferred Resources(11) Asset Tons (000) Silver (oz/ton) Gold (oz/ton) Lead % Zinc % Copper % Silver (000 oz) Gold (000 oz) Lead (Tons) Zinc (Tons) Copper (Tons) Greens Creek(12,13) 2,383 12.1 0.07 2.8 6.9 - 28,949 178 67,400 164,080 - Lucky Friday(12,14) 3,592 8.7 - 6.3 2.4 - 31,264 - 224,670 84,700 - Casa Berardi Underground(12,15) 2,221 - 0.19 - - - - 430 - - - Casa Berardi Open Pit(12,15) 7,828 - 0.05 - - - - 389 - - - Keno Hill(12,16) 2,441 10.4 0.003 0.9 2.1 - 25,478 8 22,380 51,000 - San Sebastian - Oxide(17) 3,490 6.4 0.05 - - - 22,353 182 - - - San Sebastian - Sulfide(17) 385 4.2 0.01 1.6 2.3 0.9 1,606 5 6,070 8,830 3,330 Fire Creek(18,19) 765 0.5 0.51 - - - 394 392 - - - Fire Creek - Open Pit(24) 74,584 0.1 0.03 - - - 5,232 2,178 - - - Hollister(18,20) 642 3.0 0.42 - - - 1,916 273 - - - Midas(18,21) 1,232 6.3 0.50 - - - 7,723 615 - - - Heva(22) 2,787 - 0.08 - - - - 216 - - - Hosco(22) 17,726 - 0.04 - - - - 663 - - - Star(12,23) 2,851 3.1 - 5.9 5.9 - 8,795 - 168,180 166,930 - San Juan Silver(12,25) 2,570 11.3 0.01 1.4 1.1 - 38,203 34 49,400 39,850 - Monte Cristo(26) 913 0.3 0.14 - - - 271 131 - - - Rock Creek(12,27) 100,086 1.5 - - - 0.7 148,736 - - - 658,680 Montanore(12,28) 112,185 1.6 - - - 0.7 183,346 - - - 759,420 Total 338,681 504,266 5,694 538,100 515,390 1,421,430 Note: All estimates are in-situ except for the proven reserves at Greens Creek which are in surface stockpiles. Mineral resources are exclusive of reserves. (8) The term "mineral resources" means a concentration or occurrence of material of economic interest in or on the Earth's crust in such form, grade or quality, and quantity that there are reasonable prospects for economic extraction. A mineral resource is a reasonable estimate of mineralization, taking into account relevant factors such as cut-off grade, likely mining dimensions, location or continuity, that, with the assumed and justifiable technical and economic conditions, is likely to, in whole or in part, become economically extractable. It is not merely an inventory of all mineralization drilled or sampled. (9) The term "measured resources" means that part of a mineral resource for which quantity and grade or quality are estimated on the basis of conclusive geological evidence and sampling. The level of geological certainty associated with a measured mineral resource is sufficient to allow a qualified person to apply modifying factors in sufficient detail to support detailed mine planning and final evaluation of the economic viability of the deposit. Because a measured mineral resource has a higher level of confidence than the level of confidence of either an indicated mineral resource or an inferred mineral resource, a measured mineral resource may be converted to a proven mineral reserve or to a probable mineral reserve. (10) The term "indicated resources" means that part of a mineral resource for which quantity and grade or quality are estimated on the basis of adequate geological evidence and sampling. The level of geological certainty associated with an indicated mineral resource is sufficient to allow a qualified person to apply modifying factors in sufficient detail to support mine planning and evaluation of the economic viability of the deposit. Because an indicated mineral resource has a lower level of confidence than the level of confidence of a measured mineral resource, an indicated mineral resource may only be converted to a probable mineral reserve. (11) The term "inferred resources" means that part of a mineral resource for which quantity and grade or quality are estimated on the basis of limited geological evidence and sampling. The level of geological uncertainty associated with an inferred mineral resource is too high to apply relevant technical and economic factors likely to influence the prospects of economic extraction in a manner useful for evaluation of economic viability. Because an inferred mineral resource has the lowest level of geological confidence of all mineral resources, which prevents the application of the modifying factors in a manner useful for evaluation of economic viability, an inferred mineral resource may not be considered when assessing the economic viability of a mining project, and may not be converted to a mineral reserve. (12) Mineral resources are based on $1700/oz gold, $21/oz silver, $1.15/lb lead, $1.35/lb zinc and $3.00/lb copper, unless otherwise stated. (13) The resource NSR cut-off values for Greens Creek are $210/ton for all zones except the Gallagher Zone at $215/ton; metallurgical recoveries (actual 2022): 81% for silver, 72% for gold, 82% for lead, and 89% for zinc. (14) The resource NSR cut-off values for Lucky Friday are $200.57/ton for the 30 Vein, $227.90/ton for the Intermediate Veins and $198.48/ton for the Lucky Friday Veins; metallurgical recoveries (actual 2022): 95% for silver, 95% for lead, and 88% for zinc. (15) The average resource cut-off grades at Casa Berardi are 0.11 oz/ton gold for underground and 0.034 oz/ton gold for open pit; metallurgical recovery (actual 2022): 87% for gold; US$/CAN$ exchange rate: 1:1.3. (16) The resource NSR cut-off value at Keno Hill is $129.10/ton (CAN$185/tonne); using minimum width of 4.9 feet (1.5m); metallurgical recovery: 93% for silver, 25% for gold, 93% for lead, 72% for zinc; US$/CAN$ exchange rate: 1:1.3 (17) Indicated resources for most zones at San Sebastian based on $1500/oz gold, $21/oz silver, $1.15/lb lead, $1.35/lb zinc and $3.00/lb copper using a cut-off grade of $90.72/ton ($100/tonne); $1700/oz gold used for Toro, Bronco, and Tigre zones. Metallurgical recoveries based on grade dependent recovery curves: recoveries at the mean resource grade average 89% for silver and 84% for gold for oxide material and 85% for silver, 83% for gold, 81% for lead, 86% for zinc, and 83% for copper for sulfide material. Resources reported at a minimum mining width of 8.2 feet (2.5m) for Middle Vein, North Vein, and East Francine, 6.5ft (1.98m) for El Toro, El Bronco, and El Tigre, and 4.9 feet (1.5 m) for Hugh Zone and Andrea. (18) Mineral resources for Fire Creek, Hollister and Midas are reported using $1500/oz gold and $21/oz silver prices, unless otherwise noted. A minimum mining width is defined as four feet or the vein true thickness plus two feet, whichever is greater. (19) Fire Creek mineral resources are reported at a gold equivalent cut-off grade of 0.283 oz/ton. Metallurgical recoveries: 90% for gold and 70% for silver. (20) Hollister mineral resources, including the Hatter Graben are reported at a gold equivalent cut-off grade of 0.238 oz/ton. Metallurgical recoveries: 88% for gold and 66% for silver (21) Midas mineral resources are reported at a gold equivalent cut-off grade of 0.237 oz/ton. Metallurgical recoveries: 90% for gold and 70% for silver. A gold-equivalent cut-off grade of 0.1 oz/ton and a gold price of $1700/oz used for Sinter Zone with resources undiluted. (22) Measured, indicated and inferred resources at Heva and Hosco are based on $1,500/oz gold. Resources are without dilution or material loss at a gold cut-off grade of 0.01 oz/ton for open pit and 0.088 oz/ton for underground. Metallurgical recovery: Heva: 95% for gold, Hosco: 87.7% for gold. (23) Indicated and Inferred resources at the Star property are reported using a minimum mining width of 4.3 feet and an NSR cut-off value of $150/ton; Metallurgical recovery: 93% for silver, 93% for lead, and 87% for zinc. (24) Inferred open-pit resources for Fire Creek calculated November 30, 2017 using gold and silver recoveries of 65% and 30% for oxide material and 60% and 25% for mixed oxide-sulfide material. Indicated Resources reclassified as Inferred in 2019. Open pit resources are calculated at $1400 gold and $19.83 silver and cut-off grade of 0.01 Au Equivalent oz/ton and is inclusive of 10% mining dilution and 5% ore loss. Open pit mineral resources exclusive of underground mineral resources. NI43-101 Technical Report for the Fire Creek Project, Lander County, Nevada; Effective Date March 31, 2018; prepared by Practical Mining LLC, Mark Odell, P.E. for Hecla Mining Company, June 28, 2018. (25) Inferred resources reported at a minimum mining width of 6.0 feet for Bulldog and an NSR cut-off value of $175/ton and 5.0 feet for Equity and North Amethyst veins at an NSR cut-off value of $100/ton; Metallurgical recoveries based on grade dependent recovery curves; metal recoveries at the mean resource grade average 89% silver, 74% lead, and 81% zinc for the Bulldog and a constant 85% gold and 85% silver for North Amethyst and Equity. (26) Inferred resource at Monte Cristo reported at a minimum mining width of 5.0 feet; resources based on $1400 Au, $26.50 Ag using a 0.06 oz/ton gold cut-off grade. Metallurgical recovery: 90% for gold and 90% silver. (27) Inferred resource at Rock Creek reported at a minimum thickness of 15 feet and an NSR cut-off value of $24.50/ton; Metallurgical recoveries: 88% for silver and 92% for copper. Resources adjusted based on mining restrictions as defined by U.S. Forest Service, Kootenai National Forest in the June 2003 'Record of Decision, Rock Creek Project' (28) Inferred resource at Montanore reported at a minimum thickness of 15 feet and an NSR cut-off value of $24.50/ton NSR; Metallurgical recoveries: 88% for silver and 92% copper. Resources adjusted based on mining restrictions as defined by U.S. Forest Service, Kootenai National Forest, Montana DEQ in December 2015 'Joint Final EIS, Montanore Project' and the February 2016 U.S Forest Service - Kootenai National Forest 'Record of Decision, Montanore Project'. Totals may not represent the sum of parts due to rounding Category: Earnings View source version on businesswire.com: https://www.businesswire.com/news/home/20230215005365/en/Contacts Anvita M. Patil Vice President - Investor Relations and Treasurer Cheryl Turner Communications Coordinator 800-HECLA91 (800-432-5291) Investor Relations Email: hmc-info@hecla-mining.com Website: http://www.hecla-mining.com
10% silver production growth in 2022; Expect 18% growth in 2023 and 35% by 2025; Silver cost guidance achieved with 2023 set at similar levels
Hecla Mining Company (NYSE:HL) today announced fourth quarter and full-year 2022 financial and operating results. ANNUAL HIGHLIGHTS Strategic Completed the acquisition of Alexco Resource Corp., adding nearly 50 million ounces of silver reserves; highest-grade and largest primary silver reserves in Canada. Operational Record silver reserves of 241 million ounces, gold reserves of 2.6 million ounces. Produced 14.2 million ounces of silver, Hecla's second highest, and 175,807 ounces of gold. Record lead production of 49 thousand tons and zinc production of 65 thousand tons. Achieved silver cost guidance with total silver cost of sales of $349.3 million and all-in sustaining cost after by-product credits ("AISC") of $11.25 per silver ounce.4 Increased Lucky Friday silver production by 24% to 4.4 million ounces using the Underhand Closed Bench (UCB) mining method. Achieved record mill throughput milestones at all three operations. Financial Reported sales of $718.9 million with almost 70% from Greens Creek and Lucky Friday. Net loss applicable to common stockholders of $37.9 million or $0.07 per share, and adjusted net income of $27.8 million or $0.05 per share.5 Adjusted EBITDA of $217.5 million, net debt to adjusted EBITDA ratio of 1.9.1 Strong balance sheet with $104.7 million in cash and cash equivalents with approximately $245 million in available liquidity. Dividends of $12.9 million, or 14% of cash flow from operations. Environmental, Social, Governance Strong safety performance with an All-Injury Frequency Rate of 1.22, which equals prior Company record and is 42% below the U.S. average. The San Sebastian mine received the 2022 Environmental and Sustainability Excellence Award given by AEMA. Lucky Friday received the SME Murray Innovation Award for 2023 for the pioneering UCB mining method. Ratified a 6-year contract agreement with the Union at the Lucky Friday. “Hecla is the world’s fastest growing established silver company,” said Phillips S. Baker Jr., President and CEO. “This growth has been built on the strong foundation of Greens Creek, the United States’ largest silver mine, and the Lucky Friday, a mine in production for 80 years whose throughput this year was the most in its history. Added to these growing mines is Keno Hill, one of the world’s highest grade silver mines, which we expect to be in production in the second half of this year." Baker continued, “In 2022, we achieved our largest silver reserves and second highest silver production in our history, and expect to set new records in 2023 and 2024. If our growth continues as expected, Hecla would produce not only 40% of all the silver mined in the US, but also 40% of all silver mined in Canada. In 2022, we had among the best silver margins in the industry with AISC a little more than half of our realized silver price allowing us to maintain a strong balance sheet even after significant investment in the Lucky Friday and Keno Hill. We expect silver AISC in 2023 to be about the same as 2022 despite inflationary pressures and increased investment in all our mines. With our largest silver reserves, our growing production in Canada and the US, and strong silver margins, we believe our shareholders are well-positioned for higher silver prices as the transition to renewables increases the need for silver as an energy metal." FINANCIAL OVERVIEW In the following table and throughout this release, "total cost of sales" is comprised of cost of sales and other direct production costs and depreciation, depletion and amortization. In Thousands unless stated otherwise 4Q-2022 3Q-2022 2Q-2022 1Q-2022 4Q-2021 FY 2022 FY 2021 FINANCIAL AND PRODUCTION SUMMARY Sales $ 194,825 $ 146,339 $ 191,242 $ 186,499 $ 185,078 $ 718,905 $ 807,473 Total cost of sales $ 169,807 $ 137,892 $ 153,979 $ 141,070 $ 131,837 $ 602,749 $ 589,672 Gross profit $ 25,018 $ 8,447 $ 37,263 $ 45,429 $ 53,241 $ 116,156 $ 217,801 Income (loss) applicable to common stockholders $ (4,590 ) $ (23,664 ) $ (13,661 ) $ 4,015 $ 11,737 $ (37,900 ) $ 34,543 Basic income (loss) per common share (in dollars) $ (0.01 ) $ (0.04 ) $ (0.03 ) $ 0.01 $ 0.02 $ (0.07 ) $ 0.06 Adjusted EBITDA1 $ 62,261 $ 26,554 $ 70,474 $ 58,202 $ 58,249 $ 217,492 $ 278,780 Net Debt to Adjusted EBITDA1 1.9 1.1 Cash provided by operating activities $ 36,120 $ (24,322 ) $ 40,183 $ 37,909 $ 53,355 $ 89,890 $ 220,337 Capital Expenditures $ (56,140 ) $ (37,430 ) $ (34,329 ) $ (21,478 ) $ (28,838 ) $ (149,378 ) $ (109,048 ) Free Cash Flow2 $ (20,020 ) $ (61,752 ) $ 5,854 $ 16,431 $ 24,517 $ (59,488 ) $ 111,289 Silver ounces produced 3,663,433 3,549,392 3,645,454 3,324,708 3,226,927 14,182,987 12,887,240 Silver payable ounces sold 3,756,701 2,479,724 3,387,909 2,687,261 2,606,622 12,311,595 11,633,802 Gold ounces produced 43,634 44,747 45,719 41,707 47,977 175,807 201,327 Gold payable ounces sold 40,097 40,443 44,225 41,053 44,156 165,818 201,610 Cash Costs and AISC, each after by-product credits Silver cash costs per ounce3 $ 4.79 $ 3.43 $ (1.14 ) $ 1.09 $ 1.69 $ 2.06 $ 1.37 Silver AISC per ounce4 $ 14.36 $ 14.20 $ 8.55 $ 7.64 $ 10.08 $ 11.25 $ 9.19 Gold cash costs per ounce3 $ 1,696 $ 1,349 $ 1,371 $ 1,516 $ 1,143 $ 1,478 $ 1,127 Gold AISC per ounce4 $ 2,132 $ 1,738 $ 1,641 $ 1,810 $ 1,494 $ 1,825 $ 1,374 Realized Prices Silver, $/ounce $ 22.03 $ 18.30 $ 20.68 $ 24.68 $ 23.49 $ 21.53 $ 25.24 Gold, $/ounce $ 1,757 $ 1,713 $ 1,855 $ 1,880 $ 1,802 $ 1,803 $ 1,796 Lead, $/pound $ 1.05 $ 0.95 $ 0.97 $ 1.08 $ 1.13 $ 1.01 $ 1.03 Zinc, $/pound $ 1.24 $ 1.23 $ 1.44 $ 1.79 $ 1.74 $ 1.41 $ 1.44 Loss applicable to common stockholders decreased to $4.6 million in the fourth quarter 2022 from $23.7 million in the third quarter due to: Increased gross profit of $16.6 million due to higher revenues arising from deferred silver concentrate shipments from Greens Creek and Lucky Friday to the fourth quarter, higher realized prices and production partially offset by higher cost of sales. Exploration and pre-development expense decreased by $8.2 million due to the completion of seasonal exploration programs in the prior quarter. The above items were partially offset by: Increase in general and administrative expenses of $3.4 million due to higher incentive compensation accruals and a full quarter of additional staffing as a result of the Alexco acquisition. Increase of $2.9 million in provision for closed operations reflecting updated costs for Troy mine reclamation. Higher ramp-up and suspension costs of $2.5 million related to the Keno Hill ramp-up. Consolidated silver cost of sales in 2022 increased 12% to $349.3 million from the prior year due to higher labor costs including contractor costs, and inflationary pressures for fuel, consumables, ground support and other inputs. Cash costs and AISC per silver ounce, each after by-product credits, were $2.06 and $11.25, respectively.3,4 The increase in cash costs and AISC per silver ounce was due to higher cost of sales, and increased sustaining capital, partially offset by higher by-product credits due to higher by-products and silver production.3,4 Consolidated gold cost of sales decreased by 9% to $253.0 million primarily due to Nevada operations were being on care and maintenance. Cash costs and AISC per gold ounce, each after by-product credits, were $1,478 and $1,825, respectively.3,4 The increase in total cash costs was due to higher labor, contractor costs, and inflation in diesel, reagents, and other key inputs as well as lower gold production with AISC also impacted by higher sustaining capital. Loss applicable to common stockholders was $37.9 million in 2022 compared to net income of $34.5 million in 2021 with decrease in profitability attributable to: Lower sales of $88.6 million due to lower gold production and lower metal prices for silver, lead, and zinc, partially offset by higher silver, lead and zinc production. Lower gross profit due to lower sales and higher production costs. Higher general and administrative expenses of $8.8 million due to higher incentive compensation accruals, compensation increases effective July 1, and additional staffing as a result of the Alexco acquisition. A decrease in income tax benefit of $22.0 million The above items were partially offset by: Decrease in exploration and pre-development expense of $1.9 million. Fair value adjustments that resulted in a loss of $4.7 million in 2022 compared to a loss of $35.8 million in 2021 as result of lower realized and unrealized losses on derivatives and investments. Decrease in provision for closed operations and environmental matters of $5.8 million. Adjusted EBITDA for the year was $217.5 million and decreased by $61.3 million over the prior year primarily due to lower revenues and higher production costs amidst inflationary pressures. The ratio of Net debt to adjusted EBITDA increased to 1.9 due to lower Adjusted EBITDA and use of cash as the Company invested in development of the Keno Hill mine.1 Cash provided by operating activities was $89.9 million for 2022 and decreased $130.5 million year over year due to lower net income and unfavorable working capital changes. When compared to the third quarter, cash provided by operating activities increased by $60.4 million due to increased gross margin and monetization of zinc hedges. Capital expenditures, net of leases, totaled $149.4 million in 2022 compared to $109.0 million in 2021. The increase was due to higher capital spend at Lucky Friday, as the Company invested in the infrastructure necessary to increase throughput, sustaining expenditures at Greens Creek, and development capital at the Keno Hill partially offset by lower spend at Casa Berardi. Fourth quarter capital expenditures totaled $56.1 million, including $12.2 million at Greens Creek, $13.0 million at Casa Berardi, $13.7 million at Lucky Friday, and $16.1 million at Keno Hill. Free cash flow for the year was negative $59.5 million, a decrease of $170.8 million over the prior year due to lower revenues, higher production costs, higher capital spend at Lucky Friday and Greens Creek, and investment in the Keno Hill development. Free cash flow for the fourth quarter was negative $20.0 million and increased by $41.7 million over the prior quarter primarily due to higher cash flow from operations partially offset by higher capital spend.2 Forward Sales Contracts for Base Metals and Foreign Currency The Company uses financially settled forward sales contracts to manage exposures to changes in prices of zinc and lead. At December 31, 2022, the Company had contracts covering approximately 36% of the forecasted payable zinc production for 2023 at an average price of $1.34 per pound, and 40% of the forecasted payable lead production (through 2024) at an average price of $0.99 per pound. In the fourth quarter, the Company monetized zinc hedges for cash proceeds of approximately $17.0 million. The Company also manages CAD exposure through forward contracts. At December 31, 2022, the Company had hedged approximately 46% of forecasted CAD direct production costs for Casa Berardi through 2026 at an average CAD/USD rate of 1.31. The Company has also hedged approximately 34% of capital costs for Casa Berardi for 2023 at 1.33. At Keno Hill, 74% of the planned spend for 2023 is hedged at an average CAD/USD rate of 1.38. OPERATIONS OVERVIEW Greens Creek Mine - Alaska Dollars are in thousands except cost per ton 4Q-2022 3Q-2022 2Q-2022 1Q-2022 4Q-2021 FY 2022 FY 2021 GREENS CREEK Tons of ore processed 230,225 229,975 209,558 211,687 221,814 881,445 841,967 Total production cost per ton $ 211.29 $ 185.34 $ 197.84 $ 192.16 $ 174.55 $ 196.73 $ 177.30 Ore grade milled - Silver (oz./ton) 13.1 13.6 14.0 13.8 12.6 13.6 13.5 Ore grade milled - Gold (oz./ton) 0.08 0.07 0.08 0.07 0.07 0.08 0.08 Ore grade milled - Lead (%) 2.6 2.4 3.0 2.8 2.6 2.7 2.9 Ore grade milled - Zinc (%) 6.7 6.3 7.2 6.6 6.3 6.7 7.1 Silver produced (oz.) 2,433,275 2,468,280 2,410,598 2,429,782 2,262,635 9,741,935 9,243,222 Gold produced (oz.) 12,989 11,412 12,413 11,402 10,229 48,216 46,088 Lead produced (tons) 4,985 4,428 5,184 4,883 4,731 19,480 19,873 Zinc produced (tons) 13,842 12,580 13,396 12,494 12,457 52,312 53,648 Sales $ 95,374 $ 60,875 $ 92,723 $ 86,090 $ 87,865 $ 335,062 $ 384,843 Total cost of sales $ (70,075 ) $ (52,502 ) $ (60,506 ) $ (49,636 ) $ (49,251 ) $ (232,718 ) $ (213,113 ) Gross profit $ 25,299 $ 8,373 $ 32,217 $ 36,453 $ 38,614 $ 102,344 $ 171,730 Cash flow from operations $ 44,769 $ 7,749 $ 41,808 $ 56,295 $ 50,632 $ 150,621 $ 208,715 Exploration $ 1,050 $ 3,776 $ 929 $ 165 $ 696 $ 5,920 $ 4,591 Capital additions $ (12,150 ) $ (6,988 ) $ (14,668 ) $ (3,092 ) $ (9,544 ) $ (36,898 ) $ (23,883 ) Free cash flow2 $ 33,669 $ 4,537 $ 28,069 $ 53,368 $ 41,784 $ 119,643 $ 189,423 Cash cost per ounce, after by-product credits3 $ 4.26 $ 2.65 $ (3.29 ) $ (0.90 ) $ 0.50 $ 0.70 $ (0.65 ) AISC per ounce, after by-product credits4 $ 9.04 $ 8.61 $ 3.48 $ 1.90 $ 5.66 $ 5.77 $ 3.19 Greens Creek produced 9.7 million ounces of silver in 2022, an increase of 5% over the prior year achieving record mill throughput. Fourth quarter sales were $95.4 million, and increased $34.5 million over the third quarter due to higher realized prices, increased by-product production and the favorable impact of a deferred silver concentrate shipment from the third quarter resulting in higher metals sold. Cost of sales for the quarter were $70.1 million, an increase of $17.6 million over the prior quarter with the increase attributable to higher costs related to higher volumes of metals sold and higher fuel and consumables costs. Cash costs and AISC per silver ounce, each after by-product credits, were $4.26 and $9.04 and increased quarter over quarter due to higher treatment and freight costs due to higher concentrate quantities shipped, and higher costs related to fuel and consumables as the mill achieved record throughput.3,4 Cash flow from operations increased by $37.0 million over the prior quarter due to increased sales and lower exploration spend partially offset by higher costs. Free cash flow for the fourth quarter was $33.7 million, an increase of $29.1 million over the prior quarter due to higher cash flow from operations partially offset by higher capital spend.2 2022 sales were $335.1 million, a decrease of $49.8 million compared to 2021 due to lower realized silver prices partially offset by higher silver and gold production. Cost of sales increased to $232.7 million compared to $213.1 million in 2021 due to higher labor and contractor costs due to record tons mined, inflationary pressures for fuel, reagents and other inputs, and higher volumes of consumables as the mill achieved record throughput in 2022. Cash costs and AISC per silver ounce (each after by-product credits) were $0.70 and $5.77, respectively, increasing year over year due to the reasons outlined above, partially offset by higher by-product credits.3,4 The increase in AISC was also impacted by higher exploration and sustaining capital spend during the year. Cash flow from operations for the year was $150.6 million, and decreased by $58.1 million over the prior year due to lower revenues and higher production costs. Free cash flow generation for the year was $119.6 million and declined by $69.8 million over the prior year due to lower cash flow from operations and higher planned capital spend.2 Lucky Friday Mine - Idaho Dollars are in thousands except cost per ton 4Q-2022 3Q-2022 2Q-2022 1Q-2022 4Q-2021 FY 2022 FY 2021 LUCKY FRIDAY Tons of ore processed 90,935 90,749 97,497 77,725 80,097 356,907 321,837 Total production cost per ton $ 232.73 $ 207.10 $ 211.45 $ 247.17 $ 198.83 $ 223.55 $ 191.50 Ore grade milled - Silver (oz./ton) 14.0 12.5 13.2 12.0 12.5 13.0 11.6 Ore grade milled - Lead (%) 9.1 8.5 8.8 8.2 8.1 8.7 7.6 Ore grade milled - Zinc (%) 4.1 4.2 3.9 3.6 3.3 3.9 3.4 Silver produced (oz.) 1,224,199 1,074,230 1,226,477 887,858 955,401 4,412,764 3,564,128 Lead produced (tons) 7,934 7,172 8,147 5,980 6,131 29,233 23,137 Zinc produced (tons) 3,335 3,279 3,370 2,452 2,296 12,436 9,969 Sales $ 45,434 $ 28,460 $ 35,880 $ 38,040 $ 32,938 $ 147,814 $ 131,488 Total cost of sales $ (32,819 ) $ (24,166 ) $ (30,348 ) $ (29,265 ) $ (23,252 ) $ (116,598 ) $ (97,538 ) Gross profit $ 12,615 $ 4,294 $ 5,532 $ 8,775 $ 9,686 $ 31,216 $ 33,950 Cash flow from operations $ (7,437 ) $ 11,624 $ 21,861 $ 11,765 $ 16,953 $ 37,813 $ 62,594 Capital additions $ (13,714 ) $ (16,125 ) $ (11,501 ) $ (9,652 ) $ (9,109 ) $ (50,992 ) $ (29,885 ) Free cash flow2 $ (21,151 ) $ (4,501 ) $ 10,360 $ 2,113 $ 7,844 $ (13,179 ) $ 32,709 Cash cost per ounce, after by-product credits3 $ 5.81 $ 5.23 $ 3.07 $ 6.57 $ 4.50 $ 5.06 $ 6.60 AISC per ounce, after by-product credits4 $ 12.88 $ 15.98 $ 9.91 $ 13.15 $ 12.54 $ 12.86 $ 14.34 Lucky Friday produced 4.4 million ounces of silver, an increase of 24% over the prior year due to record throughput, and higher mined grades. Silver production for the fourth quarter was 1.2 million ounces, an increase of 14% over the prior quarter due to higher grades mined. Fourth quarter sales were $45.4 million, an increase of $17.0 million over the prior quarter due to increased production, higher realized prices, and the sale of the silver concentrate shipment which was deferred from the third quarter. Cost of sales were $32.8 million and increased $8.7 million over the prior quarter due to costs associated with the deferred silver concentrate shipment inventoried in the third quarter, and higher labor costs as the mine continued to fill key positions. Cash costs after by-product credits per silver ounce were $5.81 and increased over the prior quarter due to higher labor costs and higher treatment and freight costs resulting from higher concentrate sales, partially offset by higher by-product credits and higher silver production. AISC after by-product credits per silver ounce was $12.88 and decreased over the prior quarter as the factors affecting cash cost per ounce were offset by lower capital spend in the fourth quarter.3,4 Cash flow from operations was negative $7.4 million, a decrease of $19.1 million over the prior quarter due to unfavorable working capital changes and receipt of $6.7 million related to the deferred silver concentrate shipment received in January 2023. Free cash flow was negative $21.2 million and decreased over the prior quarter primarily due to decreased cash flow from operations partially offset by lower capital spend.2 2022 sales were $147.8 million, an increase of $16.3 million over 2021 as higher metal production offset lower realized prices and higher treatment costs due to increased concentrate production. Cost of sales increased to $116.6 million compared to $97.5 million in 2021 reflecting higher costs related to increased tons mined and milled, as well as inflationary pressures for fuel, reagents and other input costs realized during the year. Cash costs and AISC per silver ounce, each after by-product credits, were $5.06 and $12.86, respectively, decreasing year over year due to higher production and by-product credits partially offset by higher costs and capital spend. 3,4 Cash flow from operations for the year was $37.8 million, a decrease of $24.8 million over the prior year due to higher production costs and unfavorable working capital changes. Free cash flow was negative $13.2 million due to lower cash flow from operations and increased capital spend for the year.2 Casa Berardi - Quebec Dollars are in thousands except cost per ton 4Q-2022 3Q-2022 2Q-2022 1Q-2022 4Q-2021 FY 2022 FY 2021 CASA BERARDI Tons of ore processed - underground 160,150 162,215 176,576 161,609 161,355 660,550 694,617 Tons of ore processed - surface pit 250,883 227,726 225,042 224,541 225,662 928,189 833,629 Tons of ore processed - total 411,033 389,941 401,618 386,150 387,017 1,588,739 1,528,246 Surface tons mined - ore and waste 2,657,638 2,822,906 2,149,412 1,892,339 1,507,457 9,522,295 7,015,178 Total production cost per ton $ 125.75 $ 114.52 $ 113.07 $ 117.96 $ 108.82 $ 117.89 $ 98.60 Ore grade milled - Gold (oz./ton) - underground 0.15 0.15 0.19 0.14 0.17 0.16 0.16 Ore grade milled - Gold (oz./ton) - surface pit 0.05 0.06 0.05 0.05 0.07 0.05 0.06 Ore grade milled - Gold (oz./ton) - combined 0.09 0.10 0.10 0.09 0.11 0.09 0.10 Gold produced (oz.) - underground 20,365 22,181 22,866 19,374 22,910 84,786 98,090 Gold produced (oz.) - surface pit 10,344 11,154 10,440 10,866 14,356 42,804 36,421 Gold produced (oz.) - total 30,709 33,335 33,306 30,240 37,266 127,590 134,511 Silver produced (oz.) - total 5,960 6,882 8,379 7,068 7,967 28,289 33,571 Sales $ 53,458 $ 56,939 $ 62,639 $ 62,101 $ 60,054 $ 235,136 $ 245,152 Total cost of sales $ (65,328 ) $ (59,532 ) $ (61,870 ) $ (62,168 ) $ (57,069 ) $ (248,898 ) $ (229,829 ) Gross profit (loss) $ (11,870 ) $ (2,593 ) $ 769 $ (67 ) $ 2,985 $ (13,762 ) $ 15,323 Cash flow from operations $ 10,188 $ 8,721 $ 7,417 $ 8,089 $ 10,029 $ 34,415 $ 73,791 Exploration $ 1,637 $ 2,624 $ 1,341 $ 2,635 $ 2,124 $ 8,237 $ 9,526 Capital additions $ (12,995 ) $ (10,771 ) $ (8,093 ) $ (7,808 ) $ (9,537 ) $ (39,667 ) $ (49,617 ) Free cash flow2 $ (1,170 ) $ 574 $ 665 $ 2,916 $ 2,616 $ 2,985 $ 33,700 Cash cost per ounce, after by-product credits3 $ 1,696 $ 1,349 $ 1,371 $ 1,516 $ 1,137 $ 1,478 $ 1,125 AISC per ounce, after by-product credits4 $ 2,132 $ 1,738 $ 1,641 $ 1,810 $ 1,470 $ 1,825 $ 1,399 Casa Berardi produced 127,590 and 30,709 ounces of gold in 2022 and the fourth quarter, respectively. Gold production for the year decreased by 5% compared to last year due to a 12% decrease in overall gold grade, partially offset by a 4% increase in tonnage and a 3% increase in mill recoveries. The lower grade was due to a higher ratio of lower grade ore sourced from the open pits. The mill continued to perform well, achieving record throughput of 4,468 tons per day (tpd) in the fourth quarter of 2022. Full year 2022 cost of sales was $248.9 million, an increase of $19.1 million over the prior year due to inflationary pressures and increased labor, consumables, and contractor costs. Cash costs and AISC per ounce, each after by-product credits, were $1,478 and $1,825, respectively.3,4 The year over year increase in cash costs and AISC per gold ounce was due to higher production costs and lower gold production in 2022, and AISC per ounce was also impacted by higher sustaining capital and higher exploration spending.3,4 Cash flow from operations for the year was $34.4 million and decreased year over year due a combination of lower production and higher operating costs. Free cash flow for the year was $3.0 million compared to $33.7 million in 2021.2 Keno Hill - Yukon Territory At Keno Hill, production is expected to commence in the third quarter 2023 with a phased ramp up projected to reach 440 tpd by the end of the year. Anticipated silver production for the year is 2.5-3 million ounces expected from the Bermingham and Flame & Moth deposits. As of the end of January 2023, approximately 40% of development required to achieve full production was completed. Capital spending to bring the mine to full production is estimated to be $35-$40 million in 2023. Some key capital projects underway include camp expansion, mill improvements and engineering, and other surface capital infrastructure projects. EXPLORATION AND PRE-DEVELOPMENT Exploration and pre-development expenses totaled $6.9 million for the fourth quarter and $46.0 million for the full year. Exploration activities during the fourth quarter focused on targets at Keno Hill, Casa Berardi, and Greens Creek. For the year ended 2022, the Company reported the highest silver reserves of more than 240 million ounces, an increase of 21% over 2021. The increase was primarily due to the acquisition of Keno Hill in Canada's Yukon territory. Gold reserves declined 6% to 2.6 million ounces compared to 2021 due to cost increases which increased the cut-off grade at Casa Berardi. A breakdown of the Company's reserves and resources is located in Table A at the end of this news release. For further details on Company's 2022 exploration and pre-development program and 2023 planned expenditures as well as reserves and resources at year-end 2022, please refer to the news release entitled "Hecla Reports Highest Silver Reserves in Company History" released on February 14, 2023. 2023 ESTIMATES6 The Company is providing a three-year production outlook and 2023 estimates of costs, capital and exploration and pre-development expenses. 2023 - 2025 Production Outlook Production guidance for 2023-2025 includes expected production from Keno Hill. Consolidated silver production is expected to increase over the three years to reach 18.5-20 million ounces by 2025. Consolidated gold production is expected to decrease to 160-170 thousand ounces in 2023 primarily due to Casa Berardi as an increase in the underground cut-off grade will lower gold production and reduce lower margin material and lower contractor costs. Casa Berardi's production is expected to be lower in the first half of 2023 and increase in the latter half of the year. Cash costs and AISC, each after by-product credits, per gold ounce are expected to be higher in the first half and trend lower in the second half of the year. Silver Production (Moz) Gold Production (Koz) Silver Equivalent (Moz) Gold Equivalent (Koz) 2023 Greens Creek * 9.0 - 9.5 50.0 - 55.0 21.0 - 22.0 255.0 - 265.0 2023 Lucky Friday * 4.5 - 5.0 N/A 8.5 - 9.0 105.0 - 110.0 2023 Casa Berardi N/A 110.0 - 115.0 9.0 - 9.5 110.0 - 115.0 2023 Keno Hill 2.5 - 3.0 N/A 2.5 - 3.0 35.0 - 40.0 2023 Total 16.0 - 17.5 160.0 - 170.0 41.5 - 44.0 505.0 - 535.0 2024 Total 17.5 - 18.5 145.0 - 161.0 42.5 - 44.5 510.0 - 540.0 2025 Total 18.5 - 20.0 142.0 - 161.5 41.0 - 44.0 495.0 - 535.0 *Equivalent ounces include lead and zinc production 2023 Cost Outlook Costs of Sales (million) Cash cost, after by- product credits, per silver/gold ounce3 AISC, after by- product credits, per produced silver/gold ounce4 Greens Creek 245 $0.00 - $0.25 $6.00 - $6.75 Lucky Friday 128 $2.00 - $2.50 $8.50 - $9.50 Keno Hill 40 $11.00 - $13.50 $12.25 - $14.75 Total Silver 413 $2.50 - $3.00 $10.25 - $11.50 Casa Berardi 220 $1450 - $1550 $1975 - $2050 2023 Capital and Exploration Outlook Capital spending in 2023 is expected to increase due to higher spending at Casa Berardi and Greens Creek, as well as development and infrastructure projects at Keno Hill. Casa Berardi's increased capital spending is primarily due to the expansion of tailings facility. Greens Creek's projected higher capital spend is due to additional equipment purchases as the mine targets throughput of 2,600 tons per day, and increased capital development. Capital expenditures $190 - $200 million Greens Creek $49 - $52 million Lucky Friday $48 - $51 million Casa Berardi $51 - $53 million Keno Hill $42 - $44 million Exploration and Pre-development expenditures $32.5 million Keno Hill Ramp Up Costs $9.0 million DIVIDENDS Common Stock The Board of Directors declared a quarterly cash dividend of $0.00625 per share of common stock, consisting of $0.00375 per share for the minimum dividend component and $0.0025 per share for the silver-linked component. The common stock dividend is payable on or about March 24, 2023, to stockholders of record on March 9, 2023. The realized silver price was $22.03 in the fourth quarter, satisfying the criterion for the silver-linked component under the Company's common stock dividend policy. Preferred Stock The Board of Directors elected to declare a quarterly cash dividend of $0.875 per share of preferred stock, payable on or about April 3, 2023, to stockholders of record on March 15, 2023. CONFERENCE CALL AND WEBCAST A conference call and webcast will be held Wednesday, February 15, at 10:00 a.m. Eastern Time to discuss these results. We recommend that you dial in at least 10 minutes before the call commencement. You may join the conference call by dialing toll-free 1-888-330-2391 or for international dialing 1-240-789-2702. The Conference ID is 4812168 and must be provided when dialing in. Hecla's live and archived webcast can be accessed at https://events.q4inc.com/attendee/180188973 or www.hecla-mining.com under Investors. VIRTUAL INVESTOR EVENT Hecla will be holding a Virtual Investor Event on Wednesday, February 15, from 12:00 p.m. to 2:00 p.m. Eastern Time. Hecla invites shareholders, investors, and other interested parties to schedule a personal, 30-minute virtual meeting (video or telephone) with a member of senior management to discuss Financials, Exploration, Operations, ESG or general matters. Click on the link below to schedule a call (or copy and paste the link into your web browser). You can select a topic once you have entered the meeting calendar. If you are unable to book a time, either due to high demand or for other reasons, please reach out to Anvita M. Patil, Vice President, Investor Relations and Treasurer at hmc-info@hecla-mining.com or 208-769-4100. One-on-One meeting URL: https://calendly.com/2023-february-vie ABOUT HECLA Founded in 1891, Hecla Mining Company (NYSE: HL) is the largest silver producer in the United States. In addition to operating mines in Alaska, Idaho, and Quebec, Canada, the Company is developing a mine in the Yukon, Canada, and owns a number of exploration and pre-development projects in world-class silver and gold mining districts throughout North America. NOTES Non-GAAP Financial Measures Non-GAAP financial measures are intended to provide additional information only and do not have any standard meaning prescribed by United States generally accepted accounting principles (GAAP). These measures should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. The non-GAAP financial measures cited in this release and listed below are reconciled to their most comparable GAAP measure at the end of this release. (1) Adjusted EBITDA is a non-GAAP measurement, a reconciliation of which to net income, the most comparable GAAP measure, can be found at the end of the release. Adjusted EBITDA is a measure used by management to evaluate the Company's operating performance but should not be considered an alternative to net income, or cash provided by operating activities as those terms are defined by GAAP, and does not necessarily indicate whether cash flows will be sufficient to fund cash needs. In addition, the Company may use it when formulating performance goals and targets under its incentive program. Net debt to adjusted EBITDA is a non-GAAP measurement, a reconciliation of which to debt and net income (loss), the most comparable GAAP measurements, can be found at the end of the release. It is an important measure for management to measure relative indebtedness and the ability to service the debt relative to its peers. It is calculated as total debt outstanding less total cash on hand divided by adjusted EBITDA. (2) Free cash flow is a non-GAAP measure calculated as cash provided by operating activities less additions to properties, plants and equipment. Cash provided by operating activities for the Greens Creek, Lucky Friday, Casa Berardi, and Nevada operating segments excludes exploration and pre-development expense, as it is a discretionary expenditure and not a component of the mines’ operating performance. (3) Cash cost, after by-product credits, per silver and gold ounce is a non-GAAP measurement, a reconciliation of which to cost of sales and other direct production costs and depreciation, depletion and amortization (sometimes referred to as "cost of sales" in this release), can be found at the end of the release. It is an important operating statistic that management utilizes to measure each mine's operating performance. It also allows the benchmarking of performance of each mine versus those of our competitors. As a primary silver mining company, management also uses the statistic on an aggregate basis - aggregating the Greens Creek and Lucky Friday mines - to compare performance with that of other silver mining companies, and aggregating Casa Berardi and the Nevada operations, to compare its performance with other gold mining companies. Similarly, the statistic is useful in identifying acquisition and investment opportunities as it provides a common tool for measuring the financial performance of other mines with varying geologic, metallurgical and operating characteristics. In addition, the Company may use it when formulating performance goals and targets under its incentive program. Cash cost, after by-product credits, per silver ounce is not presented for Lucky Friday for the first nine-months of 2020, as production was limited due to the strike and subsequent ramp-up and results are not comparable to those from prior periods and are not indicative of future operating results under full production. (4) All-in sustaining cost (AISC), after by-product credits, is a non-GAAP measurement, a reconciliation of which to cost of sales and other direct production costs and depreciation, depletion and amortization, the closest GAAP measurement, can be found in the end of the release. AISC, after by-product credits, includes cost of sales and other direct production costs, expenses for reclamation and exploration at the mines sites, corporate exploration related to sustaining operations, and all site sustaining capital costs. AISC, after by-product credits, is calculated net of depreciation, depletion, and amortization and by-product credits. (5) Adjusted net income (loss) applicable to common stockholders is a non-GAAP measurement, a reconciliation of which to net income (loss) applicable to common stockholders, the most comparable GAAP measure, can be found at the end of the release. Adjusted net income (loss) is a measure used by management to evaluate the Company's operating performance but should not be considered an alternative to net income (loss) as defined by GAAP. They exclude certain impacts which are of a nature which we believe are not reflective of our underlying performance. Management believes that adjusted net income (loss) per common share provides investors with the ability to better evaluate our underlying operating performance. 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. Management believes that all-in sustaining costs is a non-GAAP measure that provides additional information to management, investors and analysts to help (i) in the understanding of the economics of our operations and performance compared to other producers and (ii) in the transparency by better defining the total costs associated with production. Similarly, the statistic is useful in identifying acquisition and investment opportunities as it provides a common tool for measuring the financial performance of other mines with varying geologic, metallurgical and operating characteristics. In addition, the Company may use it when formulating performance goals and targets under its incentive program. Other (6) Expectations for 2023 include silver, gold, lead and zinc production from Greens Creek, Lucky Friday, Keno Hill, and Casa Berardi converted using Au $1,800/oz, Ag $22/oz, Zn $1.15/lb, and Pb 0.90$/lb, CAD/USD 1.30. Numbers may be rounded. Cautionary Statement Regarding Forward-Looking Statements, Including 2023 Outlook This news release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbor created by such sections and other applicable laws, including Canadian securities laws. Words such as “may”, “will”, “should”, “expects”, “intends”, “projects”, “believes”, “estimates”, “targets”, “anticipates” and similar expressions are used to identify these forward-looking statements. Such forward-looking statements may include, without limitation: (i) increased demand for silver due to transition to clean energy; (ii) Keno Hill will be in production in the second half of the year with ramp-up to 440 tons per day by the end of 2023; (iii) the Company will set new production records in 2023 and 2024; (iv) Casa Berardi's costs will trend lower in the second half of 2023; and; (v) mine-specific and Company-wide 2023 estimates of future production (for 2024 and 2025), sales and costs of sales, as well as cash cost and AISC per ounce (in each case after by-product credits) and Company-wide estimated spending on capital, exploration and pre-development for 2023. The material factors or assumptions used to develop such forward-looking statements or forward-looking information include that the Company’s plans for development and production will proceed as expected and will not require revision as a result of risks or uncertainties, whether known, unknown or unanticipated, to which the Company’s operations are subject. Estimates or expectations of future events or results are based upon certain assumptions, which may prove to be incorrect, which could cause actual results to differ from forward-looking statements. Such assumptions, include, but are not limited to: (i) there being no significant change to current geotechnical, metallurgical, hydrological and other physical conditions; (ii) permitting, development, operations and expansion of the Company’s projects being consistent with current expectations and mine plans; (iii) political/regulatory developments in any jurisdiction in which the Company operates being consistent with its current expectations; (iv) the exchange rate for the USD/CAD and USD/MXN, being approximately consistent with current levels; (v) certain price assumptions for gold, silver, lead and zinc; (vi) prices for key supplies being approximately consistent with current levels; (vii) the accuracy of our current mineral reserve and mineral resource estimates; (viii) there being no significant changes to Company plans for 2023 and beyond due to COVID-19 or any other public health issue, including, but not limited to with respect to availability of employees, vendors and equipment; (ix) the Company’s plans for development and production will proceed as expected and will not require revision as a result of risks or uncertainties, whether known, unknown or unanticipated; (x) counterparties performing their obligations under hedging instruments and put option contracts; (xi) sufficient workforce is available and trained to perform assigned tasks; (xii) weather patterns and rain/snowfall within normal seasonal ranges so as not to impact operations; (xiii) relations with interested parties, including First Nations and Native Americans, remain productive; (xiv) maintaining availability of water rights; (xv) factors do not arise that reduce available cash balances; and (xvi) there being no material increases in our current requirements to post or maintain reclamation and performance bonds or collateral related thereto. In addition, material risks that could cause actual results to differ from forward-looking statements include, but are not limited to: (i) gold, silver and other metals price volatility; (ii) operating risks; (iii) currency fluctuations; (iv) increased production costs and variances in ore grade or recovery rates from those assumed in mining plans; (v) community relations; (vi) conflict resolution and outcome of projects or oppositions; (vii) litigation, political, regulatory, labor and environmental risks; (viii) exploration risks and results, including that mineral resources are not mineral reserves, they do not have demonstrated economic viability and there is no certainty that they can be upgraded to mineral reserves through continued exploration; (ix) the failure of counterparties to perform their obligations under hedging instruments; (x) we take a material impairment charge on any of our assets; and (xi) inflation causes our costs to rise more than we currently expect. For a more detailed discussion of such risks and other factors, see the Company’s (i) 2021 Annual Report on Form 10-K, filed with the Securities and Exchange Commission (SEC) on February 23, 2022, and (ii) other SEC filings, including its Quarterly Report on Form 10-Q filed with the SEC on August 5, 2022 and 2022 Form 10-K expected to be filed with the SEC by March 1, 2023. The Company does not undertake any obligation to release publicly, revisions to any “forward-looking statement,” including, without limitation, outlook, to reflect events or circumstances after the date of this presentation, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws. Investors should not assume that any lack of update to a previously issued “forward-looking statement” constitutes a reaffirmation of that statement. Continued reliance on “forward-looking statements” is at investors’ own risk. Qualified Person (QP) Kurt D. Allen, MSc., CPG, VP - Exploration of Hecla Mining Company and Keith Blair, MSc., CPG, Chief Geologist of Hecla Limited, who serve as a Qualified Person under S-K 1300 and NI 43-101, supervised the preparation of the scientific and technical information concerning Hecla’s mineral projects in this news release. Technical Report Summaries (each a “TRS”) for each of the Company’s material properties are filed as exhibits 96.1, 96.2 and 96.3 to the Company’s Form 10-K for the year ended December 31, 2022 and are incorporated by reference into the Company’s Form 10-K, expected to be filed with the SEC on February 15, 2023, and are available at www.sec.gov. Information regarding data verification, surveys and investigations, quality assurance program and quality control measures and a summary of analytical or testing procedures for (i) the Greens Creek Mine are contained in its TRS and in a NI 43-101 technical report titled “Technical Report for the Greens Creek Mine” effective date December 31, 2018, (ii) the Lucky Friday Mine are contained in its TRS and in its technical report titled “Technical Report for the Lucky Friday Mine Shoshone County, Idaho, USA” effective date April 2, 2014, (iii) Casa Berardi are contained in its TRS and in its technical report titled “Technical Report on the mineral resource and mineral reserve estimate for Casa Berardi Mine, Northwestern Quebec, Canada” effective date December 31, 2018, and (iv) the San Sebastian Mine, Mexico, are contained in a technical report prepared for Hecla titled “Technical Report for the San Sebastian Ag-Au Property, Durango, Mexico” effective date September 8, 2015. Also included in each TRS and the four technical reports is a description of the key assumptions, parameters and methods used to estimate mineral reserves and resources and a general discussion of the extent to which the estimates may be affected by any known environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant factors. Information regarding data verification, surveys and investigations, quality assurance program and quality control measures and a summary of sample, analytical or testing procedures and the key assumptions, parameters and methods used to estimate mineral reserves and resources and a general discussion of the extent to which the estimates may be affected by any known environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant factors are contained in technical reports prepared for Alexco Resource Corp. (“Alexco”) for Keno Hill (technical report dated April 1, 2021) and for Klondex Mines Ltd. for (i) the Fire Creek Mine (technical report dated March 31, 2018), (ii) the Hollister Mine (technical report dated May 31, 2017, amended August 9, 2017), and (iii) the Midas Mine (technical report dated August 31, 2014, amended April 2, 2015). Copies of these technical reports are available under Hecla’s profile on SEDAR, and in the case of Keno Hill, under Alexco’s profile, each at www.sedar.com. Mr. Allen and Mr. Blair reviewed and verified information regarding drill sampling, data verification of all digitally collected data, drill surveys and specific gravity determinations relating to all the mines. The review encompassed quality assurance programs and quality control measures including analytical or testing practice, chain-of-custody procedures, sample storage procedures and included independent sample collection and analysis. This review found the information and procedures meet industry standards and are adequate for Mineral Resource and Mineral Reserve estimation and mine planning purposes. HECLA MINING COMPANY Condensed Consolidated Statements of Income (Loss) (dollars and shares in thousands, except per share amounts - unaudited) Fourth Quarter Ended Third Quarter Ended Twelve Months Ended December 31, 2022 September 30, 2022 December 31, 2022 December 31, 2021 Sales of products $ 194,825 $ 146,339 $ 718,905 $ 807,473 Cost of sales and other direct production costs 132,232 104,900 458,811 417,879 Depreciation, depletion and amortization 37,575 32,992 143,938 171,793 Total cost of sales 169,807 137,892 602,749 589,672 Gross profit 25,018 8,447 116,156 217,801 Other operating expenses: General and administrative 14,396 11,003 43,384 34,570 Exploration and pre-development 6,905 15,128 46,041 47,901 Other operating expense 952 902 6,262 14,327 Ramp-up and suspension costs 7,575 5,092 24,114 23,012 Provision for closed operations and reclamation 4,639 1,781 8,793 14,571 34,467 33,906 128,594 134,381 Income (loss) from operations (9,448 ) (25,459 ) (12,438 ) 83,420 Other (expense) income: Fair value adjustments, net 9,980 (4,240 ) (4,723 ) (35,792 ) Foreign exchange (loss) gain, net (900 ) 5,667 7,211 417 Other net expense 1,353 1,853 7,829 (574 ) Interest expense (9,360 ) (10,874 ) (42,793 ) (41,945 ) 1,073 (7,594 ) (32,476 ) (77,894 ) (Loss) income before income taxes (8,376 ) (33,053 ) (44,914 ) 5,526 Income and mining tax benefit (provision) 3,924 9,527 7,566 29,569 Net income (loss) (4,452 ) (23,526 ) (37,348 ) 35,095 Preferred stock dividends (138 ) (138 ) (552 ) (552 ) Income (loss) applicable to common stockholders $ (4,590 ) $ (23,664 ) $ (37,900 ) $ 34,543 Basic income (loss) per common share after preferred dividends (in cents) $ (0.01 ) $ (0.04 ) $ (0.07 ) $ 0.06 Diluted income (loss) per common share after preferred dividends (in cents) $ (0.01 ) $ (0.04 ) $ (0.07 ) $ 0.06 Weighted average number of common shares outstanding basic 596,959 554,531 557,344 536,192 Weighted average number of common shares outstanding diluted 596,959 554,531 557,344 542,176 HECLA MINING COMPANY Condensed Consolidated Balance Sheets (dollars and shares in thousands - unaudited) December 31, 2022 December 31, 2021 ASSETS Current assets: Cash and cash equivalents $ 104,743 $ 210,010 Accounts receivable 55,841 44,586 Inventories 90,672 67,765 Other current assets 16,471 19,266 Total current assets 267,727 341,627 Investments 24,018 10,844 Restricted cash and investments 1,164 1,053 Properties, plants, equipment and mineral interests, net 2,569,790 2,310,810 Operating lease right-of-use assets 11,064 12,435 Deferred tax assets 21,105 45,562 Other non-current assets 32,304 6,477 Total assets $ 2,927,172 $ 2,728,808 LIABILITIES Current liabilities: Accounts payable and accrued liabilities $ 84,747 $ 68,100 Accrued payroll and related benefits 37,579 28,714 Accrued taxes 4,030 12,306 Finance leases 9,483 5,612 Accrued reclamation and closure costs 8,591 9,259 Accrued interest 14,454 14,454 Derivatives liabilities 16,125 19,353 Other current liabilities 3,457 2,585 Total current liabilities 178,466 160,383 Long-term debt including finance leases 517,742 515,871 Accrued reclamation and closure costs 108,408 103,972 Deferred income tax liability 125,846 149,706 Non-current pension liability — 4,673 Derivatives liabilities 6,066 18,528 Other non-current liabilities 11,677 14,888 Total liabilities 948,205 968,021 STOCKHOLDERS’ EQUITY Preferred stock 39 39 Common stock 151,819 136,391 Capital surplus 2,260,290 2,034,485 Accumulated deficit (403,931 ) (353,651 ) Accumulated other comprehensive (loss) 2,448 (28,456 ) Treasury stock (31,698 ) (28,021 ) Total stockholders’ equity 1,978,967 1,760,787 Total liabilities and stockholders’ equity $ 2,927,172 $ 2,728,808 Common shares outstanding 607,620 545,535 HECLA MINING COMPANY Condensed Consolidated Statements of Cash Flows (dollars in thousands - unaudited) Fourth Quarter Ended Third Quarter Ended Twelve Months Ended December 31, 2022 September 30, 2022 December 31, 2022 December 31, 2021 OPERATING ACTIVITIES Net income (loss) $ (4,452 ) $ (23,526 ) $ (37,348 ) $ 35,095 Non-cash elements included in net income (loss): Depreciation, depletion and amortization 38,404 33,087 145,147 172,651 Provision for reclamation and closure costs 4,783 1,518 9,572 11,514 Deferred income taxes (8,395 ) (16,538 ) (26,223 ) (48,049 ) Stock compensation 1,714 1,773 6,012 6,082 Fair value adjustments, net 20,696 17,671 24,182 15,040 Foreign exchange (gain) loss (857 ) (4,911 ) (9,210 ) (79 ) Adjustment of inventory to net realizable value 487 1,405 2,646 6,524 Other non-cash charges, net 1,282 1,472 3,736 2,663 Change in assets and liabilities: Accounts receivable (26,119 ) 15,589 8,669 (5,405 ) Inventories 1,242 (11,120 ) (18,230 ) 16,919 Other current and non-current assets (8,291 ) (2,526 ) (11,711 ) (1,678 ) Accounts payable and accrued liabilities (3,273 ) (38,827 ) (24,981 ) (795 ) Accrued payroll and related benefits 12,053 1,401 13,732 1,270 Accrued taxes (5,275 ) 3,031 (7,927 ) 6,457 Accrued reclamation and closure costs and other non-current liabilities 12,121 (3,821 ) 11,824 2,128 Cash provided by operating activities 36,120 (24,322 ) 89,890 220,337 INVESTING ACTIVITIES Additions to properties, plants, equipment and mineral interests (56,140 ) (37,430 ) (149,378 ) (109,048 ) Acquisition, net — 8,952 8,953 — Pre-acquisition advance to Alexco — (25,000 ) (25,000 ) — Changes in restricted cash and investment balances (2,010 ) 2,011 — — Purchase of carbon credits — — — (869 ) Proceeds from sale or exchange of investments — 6,888 9,375 1,811 Proceeds from disposition of properties, plants, equipment and mineral interests — 18 748 1,077 Purchases of investments (1,431 ) (8,641 ) (31,971 ) — Net cash used in investing activities (59,581 ) (53,202 ) (187,273 ) (107,029 ) FINANCING ACTIVITIES Acquisition of treasury shares — — (3,677 ) (4,525 ) Proceeds from issuance of stock, net of related costs 12,735 4,542 17,278 — Dividends paid to common and preferred stockholders (2,383 ) (3,522 ) (12,932 ) (20,672 ) Borrowings on debt — 25,000 25,000 — Payments on debt (25,000 ) — (25,000 ) — Debt issuance and loan origination fees paid (19 ) (443 ) (536 ) (116 ) Repayments of capital leases (2,411 ) (1,889 ) (7,633 ) (7,285 ) Net cash used in financing activities (17,078 ) 23,688 (7,500 ) (32,598 ) Effect of exchange rates on cash 531 517 (273 ) (530 ) Net (decrease) increase in cash, cash equivalents and restricted cash and cash equivalents (40,008 ) (53,319 ) (105,156 ) 80,180 Cash, cash equivalents and restricted cash and cash equivalents at beginning of period 145,915 199,234 211,063 130,883 Cash, cash equivalents and restricted cash and cash equivalents at end of period $ 105,907 $ 145,915 $ 105,907 $ 211,063 Non-GAAP Measures (Unaudited) Reconciliation of Cost of Sales and Other Direct Production Costs and Depreciation, Depletion and Amortization (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) The tables below present reconciliations between the most comparable GAAP measure of cost of sales and other direct production costs and depreciation, depletion and amortization 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 at Greens Creek, Lucky Friday, Casa Berardi and Nevada Operations and for the Company for the three- and twelve-month periods ended December 31, 2022 and 2021, and for estimated amounts for the twelve months ended December 31, 2023. Cash Cost, After By-product Credits, per Ounce is a measure developed by precious metals companies (including the Silver Institute) 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. Cash Cost, After By-product Credits, per Ounce is an important operating statistic that we utilize to measure each mine's operating performance. We have recently started reporting AISC, After By-product Credits, per Ounce which we use as a measure of our operation's net cash flow after costs for exploration, pre-development, 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 on-site exploration, 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 operations versus those of our competitors. As a primary silver and gold mining company, we also use these statistics on an aggregate basis. We aggregate Greens Creek and Lucky Friday to compare our performance with that of other primary silver mining companies and aggregate Casa Berardi and Nevada Operations to compare our performance with that of other primary gold mining companies. Similarly, these statistics are useful in identifying acquisition and investment opportunities as they provide a common tool for measuring the financial performance of other mines with varying geologic, metallurgical and operating characteristics. Cash Cost, Before By-product Credits and AISC, Before By-product Credits include all direct and indirect operating cash costs related directly to the physical activities of producing metals, including mining, processing and other plant costs, third-party refining expense, on-site general and administrative costs, royalties and mining production taxes. AISC, Before By-product Credits for each operation also includes on-site exploration, reclamation, and sustaining capital costs. AISC, Before By-product Credits for our consolidated silver properties also includes corporate costs for general and administrative expense, exploration and sustaining capital projects. By-product credits include revenues earned from all metals other than the primary metal produced at each operation. 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. However, comparability of Cash Cost, After By-product Credits, per Silver Ounce and AISC, After By-product Credits, per Silver Ounce for 2022 to 2021 is impacted by, among other factors, (i) the return to full production at Lucky Friday in the fourth quarter of 2020 and (ii) suspension of production at San Sebastian in the fourth quarter of 2020 and discontinuation of San Sebastian being reported as an operating segment in 2021. The Casa Berardi and Nevada Operations sections below report 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 and Nevada Operations. Only costs and ounces produced relating to operations 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 and Nevada Operations 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 Ounce for the total of Greens Creek and Lucky Friday, our combined silver properties. Similarly, the silver produced at our other two operations is not included as a by-product credit when calculating the similar gold metrics for Casa Berardi. In thousands (except per ounce amounts) Three Months Ended December 31, 2022 Three Months Ended September 30, 2022 Twelve Months Ended December 31, 2022 Twelve Months Ended December 31, 2021 Greens Creek Lucky Friday Corporate and other(3) Total Silver Greens Creek Lucky Friday Corporate and other(3) Total Silver Greens Creek Lucky Friday(2) Corporate and other(3) Total Silver Greens Creek Lucky Friday(2) Corporate and other(3) Total Silver Total cost of sales $70,074 $32,819 $0 $102,893 $52,502 $24,164 $76,666 $232,718 $116,598 $— $349,316 $213,113 $97,538 $247 $310,898 Depreciation, depletion and amortization (13,557) (9,549) - (23,106) (10,305) (7,261) (17,566) (48,911) (33,704) - (82,615) (48,710) (26,846) (152) (75,708) Treatment costs 10,467 5,334 - 15,801 9,477 4,791 14,268 37,836 18,605 - 56,441 36,099 16,723 - 52,822 Change in product inventory (4,014) (571) - (4,585) 4,464 3,022 7,486 5,885 2,049 - 7,934 80 (406) - (326) Reclamation and other costs 499 (265) - 234 (118) (152) (270) (1,489) (1,034) - (2,523) (3,466) (1,039) (95) (4,600) Cash Cost, Before By-product Credits(1) 63,469 27,768 - 91,237 56,020 24,564 80,584 226,039 102,514 - 328,553 197,116 85,970 - 283,086 Reclamation and other costs 706 282 988 705 282 987 2,821 1,128 - 3,949 3,390 1,056 - 4,446 Exploration 1,050 - 359 1,409 3,776 - 722 4,498 5,920 - 2,567 8,487 4,591 - 2,226 6,817 Sustaining capital 9,862 8,369 - 18,231 10,219 11,264 187 21,670 40,705 33,306 334 74,345 27,582 26,517 210 54,309 General and administrative 14,395 14,395 11,003 11,003 - - 43,384 43,384 34,570 34,570 AISC, Before By-product Credits(1) 75,087 36,419 14,754 126,260 70,720 36,110 11,912 118,742 275,485 136,948 46,285 458,718 232,679 113,543 37,006 383,228 By-product credits: Zinc (26,112) (6,249) (32,361) (26,244) (7,155) (33,399) (113,835) (27,607) - (141,442) (100,214) (19,479) - (119,693) Gold (19,630) (19,630) (17,019) (17,019) (75,596) - - (75,596) (72,011) - (72,011) Lead (7,351) (14,392) (21,743) (6,212) (11,796) (18,008) (29,800) (52,568) - (82,368) (30,922) (42,966) - (73,888) Total By-product credits (53,093) (20,641) — (73,734) (49,475) (18,951) — (68,426) (219,231) (80,175) — (299,406) (203,147) (62,445) — (265,592) Cash Cost, After By-product Credits $10,376 $7,127 $— $17,503 $6,545 $5,613 $— $12,158 $6,808 $22,339 $— $29,147 $(6,031) $23,525 $— $17,494 AISC, After By-product Credits $21,994 $15,777 $14,754 $52,526 $21,245 $17,159 $11,912 $50,316 $56,254 $56,773 $46,285 $159,312 $29,532 $51,098 $37,006 $117,636 Divided by ounces produced 2,433 1,224 3,657 2,469 1,075 3,544 9,742 4,413 14,155 9,243 3,564 12,807 Cash Cost, Before By-product Credits, per Silver Ounce $26.08 $22.68 $24.95 $22.69 $22.87 $22.74 $23.20 $23.23 $23.21 $21.33 $24.12 $22.11 By-product credits per ounce (21.82) (16.86) (20.16) (20.04) (17.64) (19.31) (22.50) (18.17) (21.15) (21.98) (17.52) (20.74) Cash Cost, After By-product Credits, per Silver Ounce $4.26 $5.81 $4.79 $2.65 $5.23 $3.43 $0.70 $5.06 $2.06 $(0.65) $6.60 $1.37 AISC, Before By-product Credits, per Silver Ounce $30.86 $29.74 $34.53 $28.65 $33.62 $33.51 $28.27 $31.03 $32.40 $25.17 $31.86 $29.93 By-product credits per ounce (21.82) (16.86) (20.16) (20.04) (17.64) (19.31) (22.50) (18.17) (21.15) (21.98) (17.52) (20.74) AISC, After By-product Credits, per Silver Ounce $9.04 $12.88 $14.37 $8.61 $15.98 $14.20 $5.77 $12.86 $11.25 $3.19 $14.34 $9.19 In thousands (except per ounce amounts) Three Months Ended December 31, 2022 Three Months Ended September 30, 2022 Twelve Months Ended December 31, 2022 Twelve Months Ended December 31, 2021 Casa Berardi Total Gold Casa Berardi Total Gold Casa Berardi Nevada and Other(2) Total Gold Casa Berardi Nevada Operations(2) Total Gold Total cost of sales $ 65,328 $ 65,328 $ 59,532 $ 59,532 $ 248,898 $ 4,535 $ 253,433 $ 229,829 $ 48,945 $ 278,774 Depreciation, depletion and amortization (14,568 ) (14,568 ) (15,089 ) (15,089 ) (60,962 ) (361 ) (61,323 ) (80,744 ) (15,341 ) (96,085 ) Treatment costs 521 521 429 429 1,866 — 1,866 1,513 1,731 3,244 Change in product inventory 1,122 1,122 420 420 186 — 186 2,439 (10,907 ) (8,468 ) Reclamation and other costs (196 ) (196 ) (203 ) (203 ) (819 ) — (819 ) (841 ) 300 (541 ) Exclusion of Nevada and Other costs — — — — — (4,174 ) (4,174 ) — — — Cash Cost, Before By-product Credits(1) 52,207 52,207 45,089 45,089 189,169 — 189,169 152,196 24,728 176,924 Reclamation and other costs 196 196 204 204 819 — 819 841 1,008 1,849 Exploration 1,741 1,741 2,314 2,314 6,627 — 6,627 5,326 — 5,326 Sustaining capital 11,438 11,438 10,457 10,457 36,883 — 36,883 30,643 511 31,154 AISC, Before By-product Credits(1) 65,582 65,582 58,064 58,064 233,498 — 233,498 189,006 26,247 215,253 By-product credits: Silver (124 ) (124 ) (131 ) (131 ) (610 ) — (610 ) (839 ) (1,152 ) (1,991 ) Total By-product credits (124 ) (124 ) (131 ) (131 ) (610 ) — (610 ) (839 ) (1,152 ) (1,991 ) Cash Cost, After By-product Credits $ 52,083 $ 52,083 $ 44,958 $ 44,958 $ 188,559 $ — $ 188,559 $ 151,357 $ 23,576 $ 174,933 AISC, After By-product Credits $ 65,458 $ 65,458 $ 57,933 $ 57,933 $ 232,888 $ — $ 232,888 $ 188,167 $ 25,095 $ 213,262 Divided by gold ounces produced 31 31 33 33 128 — 128 135 21 156 Cash Cost, Before By-product Credits, per Gold Ounce $ 1,700 $ 1,700 $ 1,353 $ 1,353 $ 1,483 $ — $ 1,483 $ 1,131 $ 1,193 $ 1,140 By-product credits per ounce (4 ) (4 ) (4 ) (4 ) (5 ) — (5 ) (6 ) (56 ) (13 ) Cash Cost, After By-product Credits, per Gold Ounce $ 1,696 $ 1,696 $ 1,349 $ 1,349 $ 1,478 $ — $ 1,478 $ 1,125 $ 1,137 $ 1,127 AISC, Before By-product Credits, per Gold Ounce $ 2,136 $ 2,136 $ 1,742 $ 1,742 $ 1,830 $ — $ 1,830 $ 1,405 $ 1,267 $ 1,387 By-product credits per ounce (4 ) (4 ) (4 ) (4 ) (5 ) — (5 ) (6 ) (56 ) (13 ) AISC, After By-product Credits, per Gold Ounce $ 2,132 $ 2,132 $ 1,738 $ 1,738 $ 1,825 $ — $ 1,825 $ 1,399 $ 1,211 $ 1,374 In thousands (except per ounce amounts) Three Months Ended December 31, 2022 Three Months Ended September 30, 2022 Twelve Months Ended December 31, 2022 Twelve Months Ended December 31, 2021 Total Silver Total Gold Total Total Silver Total Gold Total Total Silver Total Gold Total Total Silver Total Gold Total Total cost of sales $ 102,893 $ 65,328 $ 168,221 $ 76,666 $ 59,532 $ 136,198 $ 349,316 $ 253,433 $ 602,749 $ 310,898 $ 278,774 $ 589,672 Depreciation, depletion and amortization (23,106 ) (14,568 ) (37,674 ) (17,566 ) (15,089 ) (32,655 ) (82,615 ) (61,323 ) (143,938 ) (75,708 ) (96,085 ) (171,793 ) Treatment costs 15,801 521 16,322 14,268 429 14,697 56,441 1,866 58,307 52,822 3,244 56,066 Change in product inventory (4,585 ) 1,122 (3,463 ) 7,486 420 7,906 7,934 186 8,120 (326 ) (8,468 ) (8,794 ) Exclusion of Nevada and Other — — — — — — — (4,174 ) (4,174 ) — — — Reclamation and other costs 234 (196 ) 38 (270 ) (203 ) (473 ) (2,523 ) (819 ) (3,342 ) (4,600 ) (541 ) (5,141 ) Cash Cost, Before By-product Credits(1) 91,237 52,207 143,444 80,584 45,089 125,673 328,553 189,169 517,722 283,086 176,924 460,010 Reclamation and other costs 988 196 1,184 987 204 1,191 3,949 819 4,768 4,446 1,849 6,295 Exploration 1,409 1,741 3,150 4,498 2,314 6,812 8,487 6,627 15,114 6,817 5,326 12,143 Sustaining capital 18,231 11,438 29,669 21,670 10,457 32,127 74,345 36,883 111,228 54,309 31,154 85,463 General and administrative 14,395 — 14,395 11,003 11,003 43,384 — 43,384 34,570 — 34,570 AISC, Before By-product Credits(1) 126,260 65,582 191,842 118,742 58,064 176,806 458,718 233,498 692,216 383,228 215,253 598,481 By-product credits: Zinc (32,361 ) — (32,361 ) (33,399 ) — (33,399 ) (141,442 ) — (141,442 ) (119,693 ) — (119,693 ) Gold (19,630 ) — (19,630 ) (17,019 ) — (17,019 ) (75,596 ) — (75,596 ) (72,011 ) — (72,011 ) Lead (21,743 ) — (21,743 ) (18,008 ) — (18,008 ) (82,368 ) — (82,368 ) (73,888 ) — (73,888 ) Silver (124 ) (124 ) (131 ) (131 ) — (610 ) (610 ) — (1,991 ) (1,991 ) Total By-product credits (73,734 ) (124 ) (73,858 ) (68,426 ) (131 ) (68,557 ) (299,406 ) (610 ) (300,016 ) (265,592 ) (1,991 ) (267,583 ) Cash Cost, After By-product Credits $ 17,503 $ 52,083 $ 69,586 $ 12,158 $ 44,958 $ 57,116 $ 29,147 $ 188,559 $ 217,706 $ 17,494 $ 174,933 $ 192,427 AISC, After By-product Credits $ 52,526 $ 65,458 $ 117,984 $ 50,316 $ 57,933 $ 108,249 $ 159,312 $ 232,888 $ 392,200 $ 117,636 $ 213,262 $ 330,898 Divided by ounces produced 3,657 31 3,544 33 14,155 128 12,807 156 Cash Cost, Before By-product Credits, per Ounce $ 24.95 $ 1,700 $ 22.74 1,353 $ 23.21 $ 1,483 $ 22.11 $ 1,140 By-product credits per ounce (20.16 ) (4 ) (19.31 ) (4 ) (21.15 ) $ (5 ) (20.74 ) (13 ) Cash Cost, After By-product Credits, per Ounce $ 4.79 $ 1,696 $ 3.43 $ 1,349 $ 2.06 $ 1,478 $ 1.37 $ 1,127 AISC, Before By-product Credits, per Ounce $ 34.53 $ 2,136 $ 33.51 $ 1,742 $ 32.40 $ 1,830 $ 29.93 $ 1,387 By-product credits per ounce (20.16 ) (4 ) (19.31 ) (4 ) (21.15 ) $ (5 ) (20.74 ) (13 ) AISC, After By-product Credits, per Ounce $ 14.37 2,132 $ 14.20 $ 1,738 $ 11.24 $ 1,825 $ 9.19 $ 1,374 In thousands (except per ounce amounts) Three Months Ended December 31, 2021 Three Months Ended June 30, 2022 Three Months Ended March 31, 2022 Greens Creek Lucky Friday Corporate(3) Total Silver Greens Creek Lucky Friday Corporate(3) Total Silver Greens Creek Lucky Friday Corporate and other(3) Total Silver Cost of sales and other direct production costs and depreciation, depletion and amortization $ 49,252 $ 23,251 $ 152 $ 72,655 $ 60,506 $ 30,348 $ — $ 90,854 $ 49,638 $ 29,264 $ 0 $ 78,902 Depreciation, depletion and amortization (6,300 ) (6,518 ) (152 ) (12,970 ) (13,629 ) (8,862 ) — (22,491 ) (11,420 ) (8,032 ) — (19,452 ) Treatment costs 8,655 3,636 — 12,291 8,778 4,803 — 13,581 9,096 3,677 — 12,773 Change in product inventory 236 1,351 — 1,587 (1,102 ) 503 — (599 ) 6,538 (905 ) — 5,633 Reclamation and other costs(5) (1,689 ) (199 ) — (1,888 ) (1,005 ) (256 ) — (1,261 ) (850 ) (361 ) 0 (1,211 ) Cash Cost, Before By-product Credits(1) 50,154 21,521 — 71,675 53,548 26,536 — 80,084 53,002 23,643 — 76,645 Reclamation and other costs 847 264 — 1,111 705 282 — 987 705 282 — 987 Exploration 696 — 867 1,563 929 — 769 1,698 165 — 716 881 Sustaining capital 10,123 7,413 172 17,708 14,668 8,110 99 22,877 5,956 5,562 48 11,566 General and administrative(5) — — 6,585 6,585 — — 9,692 9,692 — — 8,294 8,294 AISC, Before By-product Credits(1) 61,820 29,198 7,624 98,642 69,850 34,928 10,560 115,338 59,828 29,487 9,058 98,373 By-product credits: Zinc (25,643 ) (5,022 ) (30,665 ) (32,828 ) (8,227 ) (41,055 ) (28,651 ) (5,977 ) (34,628 ) Gold (15,712 ) 0 (15,712 ) (20,364 ) — (20,364 ) (18,583 ) — (18,583 ) Lead (7,657 ) (12,204 ) (19,861 ) (8,271 ) (14,543 ) (22,814 ) (7,966 ) (11,836 ) (19,802 ) Total By-product credits (49,012 ) (17,226 ) — (66,238 ) (61,463 ) (22,770 ) — (84,233 ) (55,200 ) (17,813 ) — (73,013 ) Cash Cost, After By-product Credits $ 1,142 $ 4,295 $ — $ 5,437 $ (7,915 ) $ 3,766 $ — $ (4,149 ) $ (2,198 ) $ 5,830 $ — $ 3,632 AISC, After By-product Credits $ 12,808 $ 11,972 $ 7,624 $ 32,404 $ 8,387 $ 12,158 $ 10,560 $ 31,105 $ 4,628 $ 11,674 $ 9,058 $ 25,360 Divided by ounces produced 2,262 955 3,217 2,410 1,226 3,636 2,430 888 3,318 Cash Cost, Before By-product Credits, per Silver Ounce $ 22.18 $ 22.54 $ 22.28 $ 22.21 $ 21.65 $ 22.03 $ 21.82 $ 26.63 $ 23.10 By-product credits per ounce (21.68 ) (18.04 ) (20.59 ) (25.50 ) (18.58 ) (23.17 ) (22.72 ) (20.06 ) (22.01 ) Cash Cost, After By-product Credits, per Silver Ounce $ 0.50 $ 4.50 $ 1.69 $ (3.29 ) $ 3.07 $ (1.14 ) $ (0.90 ) $ 6.57 $ 1.09 AISC, Before By-product Credits, per Silver Ounce $ 27.34 $ 30.58 $ 30.67 $ 28.98 $ 28.49 $ 31.72 $ 24.62 $ 33.21 $ 29.65 By-product credits per ounce (21.68 ) (18.04 ) (20.59 ) (25.50 ) (18.58 ) (23.17 ) (22.72 ) (20.06 ) (22.01 ) AISC, After By-product Credits, per Silver Ounce $ 5.66 $ 12.54 $ 10.08 $ 3.48 $ 9.91 $ 8.55 $ 1.90 $ 13.15 $ 7.64 In thousands (except per ounce amounts) Three Months Ended December 31, 2021 Three Months Ended June 30, 2022 Three Months Ended March 31, 2022 Casa Berardi Nevada Operations(2) Total Gold Casa Berardi Total Gold Casa Berardi Total Gold Cost of sales and other direct production costs and depreciation, depletion and amortization $ 57,069 $ 2,113 $ 59,182 $ 61,870 $ 61,870 $ 62,168 $ 62,168 Depreciation, depletion and amortization (19,585 ) (320 ) (19,905 ) (15,459 ) (15,459 ) (15,846 ) (15,846 ) Treatment costs 423 — 423 457 457 458 458 Change in product inventory 4,839 (956 ) 3,883 (793 ) (793 ) (563 ) (563 ) Reclamation and other costs (208 ) 1 (207 ) (209 ) (209 ) (210 ) (210 ) Cash Cost, Before By-product Credits(1) 42,538 838 43,376 45,866 45,866 46,007 46,007 Reclamation and other costs 209 327 536 209 209 210 210 Exploration 1,775 — 1,775 1,178 1,178 1,394 1,394 Sustaining capital 10,459 316 10,775 7,597 7,597 7,281 7,281 AISC, Before By-product Credits(1) 54,981 1,481 56,462 54,850 54,850 54,892 54,892 By-product credits: Silver (183 ) (21 ) (204 ) (188 ) (188 ) (166 ) (166 ) Total By-product credits (183 ) (21 ) (204 ) (188 ) (188 ) (166 ) (166 ) Cash Cost, After By-product Credits $ 42,355 $ 817 $ 43,172 $ 45,678 $ 45,678 $ 45,841 $ 45,841 AISC, After By-product Credits $ 54,798 $ 1,460 $ 56,258 $ 54,662 $ 54,662 $ 54,726 $ 54,726 Divided by gold ounces produced 37 — 37 33 33 30 30 Cash Cost, Before By-product Credits, per Gold Ounce $ 1,142 $ 1,737 $ 1,148 $ 1,377 $ 1,377 $ 1,521 $ 1,521 By-product credits per ounce (5 ) (44 ) (5 ) (6 ) (6 ) (5 ) (5 ) Cash Cost, After By-product Credits, per Gold Ounce $ 1,137 $ 1,693 $ 1,143 $ 1,371 $ 1,371 $ 1,516 $ 1,516 AISC, Before By-product Credits, per Gold Ounce $ 1,475 $ 3,073 $ 1,499 $ 1,647 $ 1,647 $ 1,815 $ 1,815 By-product credits per ounce (5 ) (44 ) (5 ) (6 ) (6 ) (5 ) (5 ) AISC, After By-product Credits, per Gold Ounce $ 1,470 $ 3,029 $ 1,494 $ 1,641 $ 1,641 $ 1,810 $ 1,810 In thousands (except per ounce amounts) Three Months Ended December 31, 2021 Three Months Ended June 30, 2022 Three Months Ended March 31, 2022 Total Silver Total Gold Total Total Silver Total Gold Total Total Silver Total Gold Total Cost of sales and other direct production costs and depreciation, depletion and amortization $ 72,655 $ 59,182 $ 131,837 $ 90,854 $ 61,870 $ 152,724 $ 78,902 $ 62,168 $ 141,070 Depreciation, depletion and amortization (12,970 ) (19,905 ) (32,875 ) (22,491 ) (15,459 ) (37,950 ) (19,452 ) (15,846 ) (35,298 ) Treatment costs 12,291 423 12,714 13,581 457 14,038 12,773 458 13,231 Change in product inventory 1,587 3,883 5,470 (599 ) (793 ) (1,392 ) 5,633 (563 ) 5,070 Reclamation and other costs (1,888 ) (207 ) (2,095 ) (1,261 ) (209 ) (1,470 ) (1,211 ) (210 ) (1,421 ) Cash Cost, Before By-product Credits(1) 71,675 43,376 115,051 80,084 45,866 125,950 76,645 46,007 122,652 Reclamation and other costs 1,111 536 1,647 987 209 1,196 987 210 1,197 Exploration 1,563 1,775 3,338 1,698 1,178 2,876 881 1,394 2,275 Sustaining capital 17,708 10,775 28,483 22,877 7,597 30,474 11,566 7,281 18,847 General and administrative 6,585 — 6,585 9,692 9,692 8,294 — 8,294 AISC, Before By-product Credits(1) 98,642 56,462 155,104 115,338 54,850 170,188 98,373 54,892 153,265 By-product credits: Zinc (30,665 ) — (30,665 ) (41,055 ) — (41,055 ) (34,628 ) (34,628 ) Gold (15,712 ) — (15,712 ) (20,364 ) — (20,364 ) (18,583 ) (18,583 ) Lead (19,861 ) — (19,861 ) (22,814 ) — (22,814 ) (19,802 ) (19,802 ) Silver (204 ) (204 ) (188 ) (188 ) (166 ) (166 ) Total By-product credits (66,238 ) (204 ) (66,442 ) (84,233 ) (188 ) (84,421 ) (73,013 ) (166 ) (73,179 ) Cash Cost, After By-product Credits $ 5,437 $ 43,172 $ 48,609 $ (4,149 ) $ 45,678 $ 41,529 $ 3,632 $ 45,841 $ 49,473 AISC, After By-product Credits $ 32,404 $ 56,258 $ 88,662 $ 31,105 $ 54,662 $ 85,767 $ 25,360 $ 54,726 $ 80,086 Divided by ounces produced 3,217 37 3,636 33 3,318 30 Cash Cost, Before By-product Credits, per Ounce $ 22.28 $ 1,148 $ 22.03 1,377 $ 23.10 $ 1,521 By-product credits per ounce (20.59 ) (5 ) (23.17 ) (6 ) (22.01 ) (5 ) Cash Cost, After By-product Credits, per Ounce $ 1.69 $ 1,143 $ (1.14 ) $ 1,371 $ 1.09 $ 1,516 AISC, Before By-product Credits, per Ounce $ 30.67 $ 1,499 $ 31.72 $ 1,647 $ 29.65 $ 1,815 By-product credits per ounce (20.59 ) (5 ) (23.17 ) (6 ) (22.01 ) (5 ) AISC, After By-product Credits, per Ounce $ 10.08 $ 1,494 $ 8.55 $ 1,641 $ 7.64 $ 1,810 In thousands (except per ounce amounts) Estimate for Twelve Months Ended December 31, 2023 Greens Creek Lucky Friday Keno Hill Corporate(3) Total Silver Total cost of sales $ 245,000 $ 128,000 $ 40,000 $ 413,000 Depreciation, depletion and amortization (46,000 ) (37,900 ) (6,800 ) (90,700 ) Treatment costs 43,700 15,375 5,150 64,225 Change in product inventory (5,100 ) (750 ) 1,000 (4,850 ) Reclamation and other costs 1,000 1,000 750 2,750 Cash Cost, Before By-product Credits(1) 238,600 105,725 40,100 384,425 Reclamation and other costs 2,800 1,100 — 3,900 Exploration 5,900 — 2,600 2,250 10,750 Sustaining capital 48,500 30,200 550 79,250 General and administrative — — — 44,000 44,000 AISC, Before By-product Credits(1) 295,800 137,025 43,250 46,250 522,325 By-product credits: Zinc (113,500 ) (29,900 ) (2,400 ) (145,800 ) Gold (90,100 ) — — (90,100 ) Lead (34,800 ) (64,700 ) (4,500 ) (104,000 ) Total By-product credits (238,400 ) (94,600 ) (6,900 ) — (339,900 ) Cash Cost, After By-product Credits $ 200 $ 11,125 $ 33,200 $ — $ 44,525 AISC, After By-product Credits $ 57,400 $ 42,425 $ 36,350 $ 46,250 $ 182,425 Divided by silver ounces produced 9,250 4,750 2,750 16,750 Cash Cost, Before By-product Credits, per Silver Ounce $ 25.79 $ 22.26 $ 14.58 $ 22.95 By-product credits per silver ounce (25.77 ) (19.92 ) (2.51 ) (20.29 ) Cash Cost, After By-product Credits, per Silver Ounce $ 0.02 $ 2.34 $ 12.07 $ 2.66 AISC, Before By-product Credits, per Silver Ounce $ 31.98 $ 28.85 $ 15.73 $ 31.18 By-product credits per silver ounce (25.77 ) (19.92 ) (2.51 ) (20.29 ) AISC, After By-product Credits, per Silver Ounce $ 6.21 $ 8.93 $ 13.22 $ 10.89 In thousands (except per ounce amounts) Estimate for Twelve Months Ended December 31, 2023 Casa Berardi Total Gold Total cost of sales $ 220,000 $ 220,000 Depreciation, depletion and amortization (52,800 ) (52,800 ) Treatment costs 300 300 Change in product inventory (1,300 ) (1,300 ) Reclamation and other costs 500 500 Cash Cost, Before By-product Credits(1) 166,700 166,700 Reclamation and other costs 800 800 Exploration 5,400 5,400 Sustaining capital 52,200 52,200 AISC, Before By-product Credits(1) 225,100 225,100 By-product credits: Silver (600 ) (600 ) Total By-product credits (600 ) (600 ) Cash Cost, After By-product Credits $ 166,100 $ 166,100 AISC, After By-product Credits $ 224,500 $ 224,500 Divided by gold ounces produced 112.5 112.5 Cash Cost, Before By-product Credits, per Gold Ounce $ 1,482 $ 1,482 By-product credits per gold ounce (5 ) (5 ) Cash Cost, After By-product Credits, per Gold Ounce $ 1,477 $ 1,477 AISC, Before By-product Credits, per Gold Ounce $ 2,001 $ 2,001 By-product credits per gold ounce (5 ) (5 ) AISC, After By-product Credits, per Gold Ounce $ 1,996 $ 1,996 In thousands (except per ounce amounts) Estimate for Twelve Months Ended December 31, 2023 Total Silver Total Gold Total Total cost of sales $ 413,000 $ 220,000 $ 633,000 Depreciation, depletion and amortization (90,700 ) (52,800 ) (143,500 ) Treatment costs 64,225 300 64,525 Change in product inventory (4,850 ) (1,300 ) (6,150 ) Reclamation and other costs 2,750 500 3,250 Cash Cost, Before By-product Credits(1) 384,425 166,700 551,125 Reclamation and other costs 3,900 800 4,700 Exploration 10,750 5,400 16,150 Sustaining capital 79,250 52,200 131,450 General and administrative 44,000 — 44,000 AISC, Before By-product Credits(1) 522,325 225,100 747,425 By-product credits: Zinc (145,800 ) — (145,800 ) Gold (90,100 ) — (90,100 ) Lead (104,000 ) — (104,000 ) Silver (600 ) (600 ) Total By-product credits (339,900 ) (600 ) (340,500 ) Cash Cost, After By-product Credits $ 44,525 $ 166,100 $ 210,625 AISC, After By-product Credits $ 182,425 $ 224,500 $ 406,925 Divided by ounces produced 16,750 112.5 Cash Cost, Before By-product Credits, per Ounce $ 22.95 $ 1,482 By-product credits per ounce (20.29 ) (5 ) Cash Cost, After By-product Credits, per Ounce $ 2.66 $ 1,477 AISC, Before By-product Credits, per Ounce $ 31.18 $ 2,001 By-product credits per ounce (20.29 ) (5 ) AISC, After By-product Credits, per Ounce $ 10.89 $ 1,996 (1) Includes all direct and indirect operating costs related to the physical activities of producing metals, including mining, processing and other plant costs, third-party refining and marketing expense, non-discretionary on-site general and administrative costs, royalties and mining production taxes, before by-product revenues earned from all metals other than the primary metal produced at each operation. AISC, Before By-product Credits also includes on-site exploration, reclamation, and sustaining capital costs. (2) Production was suspended at the Hollister mine in the third quarter of 2019 and at the Midas mine and Aurora mill in late 2019, and at the Midas mill and Fire Creek mine in mid-2021. Suspension-related costs at Nevada Operations totaling $19.7 million for 2022 and $20.4 million for 2021 are included in a separate line item on our consolidated statements of operations and excluded from the calculations of cost of sales and other direct production costs and depreciation, depletion and amortization and Cash Cost and AISC, After By-product Credits, per Gold Ounce. (3) AISC, Before By-product Credits for our consolidated silver properties includes corporate costs for general and administrative expense, exploration and sustaining capital. Reconciliation of Net Income (Loss) (GAAP) and Debt (GAAP) to Adjusted EBITDA (non-GAAP) and Net Debt (non-GAAP) This release refers to the non-GAAP measures of adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA"), which is a measure of our operating performance, and net debt to adjusted EBITDA for the last 12 months (or "LTM adjusted EBITDA"), which is a measure of our ability to service our debt. Adjusted EBITDA is calculated as net income (loss) before the following items: interest expense, income and mining taxes, depreciation, depletion, and amortization expense, ramp-up and suspension costs, gains and losses on disposition of properties, plants, equipment and mineral interests, foreign exchange gains and losses, unrealized gains and losses on derivative contracts, interest and other income, unrealized gains on investments, provisions for environmental matters, stock-based compensation, provisional price gains and losses, the grant of common shares to the Hecla Charitable Foundation, adjustments of inventory to net realizable value. Net debt is calculated as total debt, which consists of the liability balances for our Senior Notes, capital leases, and other notes payable, less the total of our cash and cash equivalents and short-term investments. Management believes that, when presented in conjunction with comparable GAAP measures, adjusted EBITDA and net debt to LTM adjusted EBITDA are useful to investors in evaluating our operating performance and ability to meet our debt obligations. The following table reconciles net loss and debt to adjusted EBITDA and net debt: Dollars are in thousands 4Q-2022 3Q-2022 2Q-2022 1Q-2022 4Q-2021 FY 2022 FY 2021 Net (loss) income $ (4,452 ) $ (23,526 ) $ (13,523 ) $ 4,153 $ 11,875 $ (37,348 ) $ 35,095 Interest expense 11,008 10,874 10,505 10,406 10,461 42,793 41,945 Income and mining taxes (3,924 ) (9,527 ) 254 5,631 (25,645 ) (7,566 ) (29,569 ) Depreciation, depletion and amortization 37,576 32,992 38,072 35,298 32,875 143,938 171,793 Ramp-up and suspension costs 7,575 5,092 5,242 6,205 5,998 24,114 23,012 Loss (gain) on disposition of properties, plants, equipment, and mineral interests 19 5 (8 ) 326 16 87 Foreign exchange loss (gain) 900 (5,667 ) (4,482 ) 2,038 (393 ) (7,211 ) (417 ) Unrealized loss (gain) on derivative contracts (864 ) (873 ) 689 204 25,840 (844 ) 11,903 Provisional price gain (625 ) 6,625 15,807 (968 ) (5,648 ) 20,839 (9,349 ) Provision for closed operations and environmental matters 3,741 1,781 1,628 1,643 3,693 8,793 17,964 Stock-based compensation 1,714 1,773 1,254 1,271 1,307 6,012 6,081 Unrealized (gain) loss on investments (9,121 ) 5,114 15,739 (6,100 ) (2,822 ) 5,632 4,295 Adjustments of inventory to net realizable value 487 1,405 754 0 — 2,646 6,524 Monetization of zinc hedges 16,664 16,664 Other 1,582 473 (1,470 ) (1,571 ) 382 (986 ) (584 ) Adjusted EBITDA $ 62,261 $ 26,555 $ 70,474 $ 58,202 $ 58,249 $ 217,492 $ 278,780 Total debt $ 517,742 $ 515,871 Less: Cash and cash equivalents 104,743 210,010 Net debt $ 412,999 $ 305,861 Net debt/LTM adjusted EBITDA (non-GAAP) 1.9 1.1 Reconciliation of Net (Loss) Income Applicable to Common Stockholders (GAAP) to Adjusted Net (Loss) Income Applicable to Common Shareholders (non-GAAP) This release refers to a non-GAAP measure of adjusted net income (loss) applicable to common stockholders and adjusted net income (loss) per share, which are indicators of our performance. They exclude certain impacts which are of a nature which we believe are not reflective of our underlying performance. Management believes that adjusted net income (loss) per common share provides investors with the ability to better evaluate our underlying operating performance. Dollars are in thousands 4Q-2022 3Q-2022 2Q-2022 1Q-2022 4Q-2021 FY 2022 FY 2021 Net (loss) income applicable to common stockholders (GAAP) $ (4,590 ) $ (23,664 ) $ (13,661 ) $ 4,015 $ 11,737 $ (37,900 ) $ 34,543 Adjusted for items below: Derivative contracts losses (gains) (864 ) (873 ) 689 204 25,840 $ (844 ) (32,655 ) Provisional pricing losses (gains) (625 ) 6,625 15,807 (968 ) (5,648 ) $ 20,839 (9,349 ) Unrealized losses (gains) on equity investments (9,117 ) 5,110 15,739 (6,100 ) (2,822 ) $ 5,632 (4,295 ) Environmental accruals 2,860 — — 14 — $ 2,874 2,882 Foreign exchange (gain) loss 900 (5,667 ) (4,482 ) 2,038 (393 ) $ (7,211 ) (417 ) Ramp-up and suspension Costs 7,575 5,092 5,242 6,205 5,998 $ 24,114 23,012 Loss (gain) on disposition of properties, plants, equipment and mineral interests — 19 5 (8 ) 326 $ 16 87 Adjustments of inventory to net realizable value 487 1,405 754 — — $ 2,646 6,524 Monetization of Zinc Hedges 16,664 — — — — $ 16,664 — Other 939 — — — — $ 939 — Adjustment income (loss) applicable to common stockholders $ 14,229 $ (11,953 ) $ 20,093 $ 5,400 $ 35,038 $ 27,769 $ 20,332 Weighted average shares – basic 596,959 554,531 539,401 538,490 538,124 557,344 536,192 Weighted average shares – diluted 596,959 554,531 539,401 544,061 543,134 557,344 542,176 Basic adjusted net income (loss) per common stock (in cents) 0.02 (0.02 ) 0.04 0.01 0.07 0.05 0.04 Diluted adjusted net income (loss) per common stock (in cents) 0.02 (0.02 ) 0.04 0.01 0.06 0.05 0.04 Reconciliation of Cash Provided by Operating Activities (GAAP) to Free Cash Flow (non-GAAP) This release refers to a non-GAAP measure of free cash flow, calculated as cash provided by operating activities, less additions to properties, plants, equipment and mineral interests. Management believes that, when presented in conjunction with comparable GAAP measures, free cash flow is useful to investors in evaluating our operating performance. The following table reconciles cash provided by operating activities to free cash flow: Dollars are in thousands Three Months Ended December 31, 2022 Twelve Months Ended December 31, 2022 2022 2021 2022 2021 Cash provided by operating activities $ 36,120 $ 53,355 $ 89,890 $ 220,337 Less: Additions to properties, plants equipment and mineral interests $ (56,140 ) $ (28,838 ) $ (149,378 ) $ (109,048 ) Free cash flow $ (20,020 ) $ 24,517 $ (59,488 ) $ 111,289 TABLE A Mineral Reserves – 12/31/2022(1) Proven Reserves(1) Asset Tons (000) Silver (oz/ton) Gold (oz/ton) Lead % Zinc % Silver (000 oz) Gold (000 oz) Lead Tons Zinc Tons Greens Creek(2,3) 7 16.1 0.07 2.3 5.4 108 0.4 150 360 Lucky Friday(2,4) 4,734 13.8 - 8.6 3.7 64,638 - 404,160 174,510 Casa Berardi Underground(2,5) 552 - 0.17 - - - 95 - - Casa Berardi Open Pit(2,5) 4,410 - 0.09 - - - 417 - - Keno Hill(2,6) - - - - - - - - - Total 9,703 64,746 512 404,310 174,870 Probable Reserves(7) Asset Tons (000) Silver (oz/ton) Gold (oz/ton) Lead % Zinc % Silver (000 oz) Gold (000 oz) Lead (Tons) Zinc (Tons) Greens Creek(2,3) 10,668 10.9 0.09 2.5 6.5 116,748 935 264,600 694,800 Lucky Friday(2,4) 840 12.8 - 8.1 3.2 9,978 - 63,510 25,030 Casa Berardi Underground(2,5) 989 - 0.17 - - - 166 - - Casa Berardi Open Pit(2,5) 12,434 - 0.08 - - - 936 - - Keno Hill(2,6) 2,197 22.5 0.01 2.4 2.2 49,473 13 52,520 49,320 Total 27,128 176,199 2,050 380,630 769,150 Proven and Probable Reserves Asset Tons (000) Silver (oz/ton) Gold (oz/ton) Lead % Zinc % Silver (000 oz) Gold (000 oz) Lead (Tons) Zinc (Tons) Greens Creek(2,3) 10,675 10.9 0.09 2.5 6.5 116,856 935 264,750 695,160 Lucky Friday(2,4) 5,574 13.4 - 8.4 3.6 74,616 - 467,670 199,530 Casa Berardi Underground(2,5) 1,541 - 0.17 - - - 261 - - Casa Berardi Open Pit(2,5) 16,844 - 0.08 - - - 1,353 - - Keno Hill(2,6) 2,197 22.5 0.01 2.4 2.2 49,473 13 52,520 49,320 Total 36,829 240,945 2,562 784,940 944,020 (1) The term “reserve” means an estimate of tonnage and grade or quality of indicated and measured mineral resources that, in the opinion of the qualified person, can be the basis of an economically viable project. More specifically, it is the economically mineable part of a measured or indicated mineral resource, which includes diluting materials and allowances for losses that may occur when the material is mined or extracted. The term “proven reserves” means the economically mineable part of a measured mineral resource and can only result from conversion of a measured mineral resource. See footnotes 8 and 9 below. (2) Mineral reserves are based on $17/oz silver, $1600/oz gold, $0.90/lb lead, $1.15/lb zinc, unless otherwise stated. All Mineral Reserves are reported in-situ with estimates of mining dilution and mining loss. (3) The reserve NSR cut-off values for Greens Creek are $210/ton for all zones except the Gallagher Zone at $215/ton; metallurgical recoveries (actual 2022): 81% for silver, 72% for gold, 82% for lead, and 89% for zinc. (4) The reserve NSR cut-off values for Lucky Friday are $241.34/ton for the 30 Vein and $268.67/ton for the Intermediate Veins; metallurgical recoveries (actual 2022): 95% for silver, 95% for lead, and 88% for zinc. (5) The average reserve cut-off grades at Casa Berardi are 0.12 oz/ton gold underground and 0.04 oz/ton gold for open pit. Metallurgical recovery (actual 2022): 87% for gold; US$/CAN$ exchange rate: 1:1.3. (6) The reserve NSR cut-off value at Keno Hill is $244.24/ton (CAN$350/tonne), Metallurgical recovery: 93% for silver, 25% for gold, 93% for lead, 72% for zinc; US$/CAN$ exchange rate: 1:1.3. (7) The term “probable reserves” means the economically mineable part of an indicated and, in some cases, a measured mineral resource. See footnotes 9 and 10 below. Totals may not represent the sum of parts due to rounding. Mineral Resources – 12/31/2022(8) Measured Resources(9) Asset Tons (000) Silver (oz/ton) Gold (oz/ton) Lead % Zinc % Copper % Silver (000 oz) Gold (000 oz) Lead (Tons) Zinc (Tons) Copper (Tons) Greens Creek(12,13) - - - - - - - - - - - Lucky Friday(12,14) 6,237 7.8 - 5.4 2.6 - 48,551 - 335,850 161,000 - Casa Berardi Underground(12,15) 2,440 - 0.22 - - - - 530 - - - Casa Berardi Open Pit(12,15) 483 - 0.04 - - - - 20 - - - Keno Hill(12,16) - - - - - - - - - - - San Sebastian - Oxide(17) - - - - - - - - - - - San Sebastian - Sulfide(17) - - - - - - - - - - - Fire Creek(18,19) - - - - - - - - - - - Hollister(18,20) 18 4.9 0.59 - - - 87 10 - - - Midas(18,21) 2 7.6 0.68 - - - 14 1 - - - Heva(22) - - - - - - - - - - - Hosco(22) - - - - - - - - - - - Star(12,23) - - - - - - - - - - - Total 9,180 48,652 561 335,850 161,000 - Indicated Resources(10) Asset Tons (000) Silver (oz/ton) Gold (oz/ton) Lead % Zinc % Copper % Silver (000 oz) Gold (000 oz) Lead (Tons) Zinc (Tons) Copper (Tons) Greens Creek(12,13) 8,421 12.9 0.10 2.9 8.0 - 108,717 810 245,990 675,740 - Lucky Friday(12,14) 1,194 8.0 - 5.4 2.2 - 9,581 - 64,390 26,200 - Casa Berardi Underground(12,15) 3,870 - 0.17 - - - - 660 - - - Casa Berardi Open Pit(12,15) 1,323 - 0.04 - - - - 48 - - - Keno Hill(12,16) 4,061 8.0 0.007 1.0 4.0 - 32,288 29 39,540 163,130 - San Sebastian - Oxide(17) 1,453 6.5 0.09 - - - 9,430 135 - - - San Sebastian - Sulfide(17) 1,187 5.5 0.01 1.9 2.9 1.2 6,579 16 22,420 34,100 14,650 Fire Creek(18,19) 112 1.1 0.53 - - - 122 59 - - - Hollister(18,20) 70 1.9 0.58 - - - 130 40 - - - Midas(18,21) 76 5.7 0.42 - - - 430 32 - - - Heva(22) 1,266 - 0.06 - - - - 76 - - - Hosco(22) 29,287 - 0.04 - - - - 1,202 - - - Star(12,23) 1,068 3.0 - 6.4 7.7 - 3,177 - 67,970 82,040 - Total 53,388 170,454 3,107 440,310 981,210 14,650 Measured & Indicated Resources Asset Tons (000) Silver (oz/ton) Gold (oz/ton) Lead % Zinc % Copper % Silver (000 oz) Gold (000 oz) Lead (Tons) Zinc (Tons) Copper (Tons) Greens Creek(12,13) 8,421 12.9 0.10 2.9 8.0 - 108,717 810 245,990 675,740 - Lucky Friday(12,14) 7,431 7.8 - 5.4 2.5 - 58,132 - 400,240 187,200 - Casa Berardi Underground(12,15) 6,310 - 0.19 - - - - 1,190 - - - Casa Berardi Open Pit(12,15) 1,806 - 0.04 - - - - 67 - - - Keno Hill(12,16) 4,061 8.0 0.007 1.0 4.0 - 32,288 29 39,540 163,130 - San Sebastian - Oxide(17) 1,453 6.5 0.09 - - - 9,430 135 - - - San Sebastian - Sulfide(17) 1,187 5.5 0.01 1.9 2.9 1.2 6,579 16 22,420 34,100 14,650 Fire Creek(18,19) 112 1.1 0.53 - - - 122 59 - - - Hollister(18,20) 88 2.5 0.58 - - - 217 51 - - - Midas(18,21) 78 5.7 0.43 - - - 444 33 - - - Heva(22) 1,266 - 0.06 - - - - 76 - - - Hosco(22) 29,287 - 0.04 - - - - 1,202 - - - Star(12,23) 1,068 3.0 - 6.4 7.7 - 3,177 - 67,970 82,040 - Total 62,568 219,106 3,668 776,160 1,142,210 14,650 Inferred Resources(11) Asset Tons (000) Silver (oz/ton) Gold (oz/ton) Lead % Zinc % Copper % Silver (000 oz) Gold (000 oz) Lead (Tons) Zinc (Tons) Copper (Tons) Greens Creek(12,13) 2,383 12.1 0.07 2.8 6.9 - 28,949 178 67,400 164,080 - Lucky Friday(12,14) 3,592 8.7 - 6.3 2.4 - 31,264 - 224,670 84,700 - Casa Berardi Underground(12,15) 2,221 - 0.19 - - - - 430 - - - Casa Berardi Open Pit(12,15) 7,828 - 0.05 - - - - 389 - - - Keno Hill(12,16) 2,441 10.4 0.003 0.9 2.1 - 25,478 8 22,380 51,000 - San Sebastian - Oxide(17) 3,490 6.4 0.05 - - - 22,353 182 - - - San Sebastian - Sulfide(17) 385 4.2 0.01 1.6 2.3 0.9 1,606 5 6,070 8,830 3,330 Fire Creek(18,19) 765 0.5 0.51 - - - 394 392 - - - Fire Creek - Open Pit(24) 74,584 0.1 0.03 - - - 5,232 2,178 - - - Hollister(18,20) 642 3.0 0.42 - - - 1,916 273 - - - Midas(18,21) 1,232 6.3 0.50 - - - 7,723 615 - - - Heva(22) 2,787 - 0.08 - - - - 216 - - - Hosco(22) 17,726 - 0.04 - - - - 663 - - - Star(12,23) 2,851 3.1 - 5.9 5.9 - 8,795 - 168,180 166,930 - San Juan Silver(12,25) 2,570 11.3 0.01 1.4 1.1 - 38,203 34 49,400 39,850 - Monte Cristo(26) 913 0.3 0.14 - - - 271 131 - - - Rock Creek(12,27) 100,086 1.5 - - - 0.7 148,736 - - - 658,680 Montanore(12,28) 112,185 1.6 - - - 0.7 183,346 - - - 759,420 Total 338,681 504,266 5,694 538,100 515,390 1,421,430 Note: All estimates are in-situ except for the proven reserves at Greens Creek which are in surface stockpiles. Mineral resources are exclusive of reserves. (8) The term "mineral resources" means a concentration or occurrence of material of economic interest in or on the Earth's crust in such form, grade or quality, and quantity that there are reasonable prospects for economic extraction. A mineral resource is a reasonable estimate of mineralization, taking into account relevant factors such as cut-off grade, likely mining dimensions, location or continuity, that, with the assumed and justifiable technical and economic conditions, is likely to, in whole or in part, become economically extractable. It is not merely an inventory of all mineralization drilled or sampled. (9) The term "measured resources" means that part of a mineral resource for which quantity and grade or quality are estimated on the basis of conclusive geological evidence and sampling. The level of geological certainty associated with a measured mineral resource is sufficient to allow a qualified person to apply modifying factors in sufficient detail to support detailed mine planning and final evaluation of the economic viability of the deposit. Because a measured mineral resource has a higher level of confidence than the level of confidence of either an indicated mineral resource or an inferred mineral resource, a measured mineral resource may be converted to a proven mineral reserve or to a probable mineral reserve. (10) The term "indicated resources" means that part of a mineral resource for which quantity and grade or quality are estimated on the basis of adequate geological evidence and sampling. The level of geological certainty associated with an indicated mineral resource is sufficient to allow a qualified person to apply modifying factors in sufficient detail to support mine planning and evaluation of the economic viability of the deposit. Because an indicated mineral resource has a lower level of confidence than the level of confidence of a measured mineral resource, an indicated mineral resource may only be converted to a probable mineral reserve. (11) The term "inferred resources" means that part of a mineral resource for which quantity and grade or quality are estimated on the basis of limited geological evidence and sampling. The level of geological uncertainty associated with an inferred mineral resource is too high to apply relevant technical and economic factors likely to influence the prospects of economic extraction in a manner useful for evaluation of economic viability. Because an inferred mineral resource has the lowest level of geological confidence of all mineral resources, which prevents the application of the modifying factors in a manner useful for evaluation of economic viability, an inferred mineral resource may not be considered when assessing the economic viability of a mining project, and may not be converted to a mineral reserve. (12) Mineral resources are based on $1700/oz gold, $21/oz silver, $1.15/lb lead, $1.35/lb zinc and $3.00/lb copper, unless otherwise stated. (13) The resource NSR cut-off values for Greens Creek are $210/ton for all zones except the Gallagher Zone at $215/ton; metallurgical recoveries (actual 2022): 81% for silver, 72% for gold, 82% for lead, and 89% for zinc. (14) The resource NSR cut-off values for Lucky Friday are $200.57/ton for the 30 Vein, $227.90/ton for the Intermediate Veins and $198.48/ton for the Lucky Friday Veins; metallurgical recoveries (actual 2022): 95% for silver, 95% for lead, and 88% for zinc. (15) The average resource cut-off grades at Casa Berardi are 0.11 oz/ton gold for underground and 0.034 oz/ton gold for open pit; metallurgical recovery (actual 2022): 87% for gold; US$/CAN$ exchange rate: 1:1.3. (16) The resource NSR cut-off value at Keno Hill is $129.10/ton (CAN$185/tonne); using minimum width of 4.9 feet (1.5m); metallurgical recovery: 93% for silver, 25% for gold, 93% for lead, 72% for zinc; US$/CAN$ exchange rate: 1:1.3 (17) Indicated resources for most zones at San Sebastian based on $1500/oz gold, $21/oz silver, $1.15/lb lead, $1.35/lb zinc and $3.00/lb copper using a cut-off grade of $90.72/ton ($100/tonne); $1700/oz gold used for Toro, Bronco, and Tigre zones. Metallurgical recoveries based on grade dependent recovery curves: recoveries at the mean resource grade average 89% for silver and 84% for gold for oxide material and 85% for silver, 83% for gold, 81% for lead, 86% for zinc, and 83% for copper for sulfide material. Resources reported at a minimum mining width of 8.2 feet (2.5m) for Middle Vein, North Vein, and East Francine, 6.5ft (1.98m) for El Toro, El Bronco, and El Tigre, and 4.9 feet (1.5 m) for Hugh Zone and Andrea. (18) Mineral resources for Fire Creek, Hollister and Midas are reported using $1500/oz gold and $21/oz silver prices, unless otherwise noted. A minimum mining width is defined as four feet or the vein true thickness plus two feet, whichever is greater. (19) Fire Creek mineral resources are reported at a gold equivalent cut-off grade of 0.283 oz/ton. Metallurgical recoveries: 90% for gold and 70% for silver. (20) Hollister mineral resources, including the Hatter Graben are reported at a gold equivalent cut-off grade of 0.238 oz/ton. Metallurgical recoveries: 88% for gold and 66% for silver (21) Midas mineral resources are reported at a gold equivalent cut-off grade of 0.237 oz/ton. Metallurgical recoveries: 90% for gold and 70% for silver. A gold-equivalent cut-off grade of 0.1 oz/ton and a gold price of $1700/oz used for Sinter Zone with resources undiluted. (22) Measured, indicated and inferred resources at Heva and Hosco are based on $1,500/oz gold. Resources are without dilution or material loss at a gold cut-off grade of 0.01 oz/ton for open pit and 0.088 oz/ton for underground. Metallurgical recovery: Heva: 95% for gold, Hosco: 87.7% for gold. (23) Indicated and Inferred resources at the Star property are reported using a minimum mining width of 4.3 feet and an NSR cut-off value of $150/ton; Metallurgical recovery: 93% for silver, 93% for lead, and 87% for zinc. (24) Inferred open-pit resources for Fire Creek calculated November 30, 2017 using gold and silver recoveries of 65% and 30% for oxide material and 60% and 25% for mixed oxide-sulfide material. Indicated Resources reclassified as Inferred in 2019. Open pit resources are calculated at $1400 gold and $19.83 silver and cut-off grade of 0.01 Au Equivalent oz/ton and is inclusive of 10% mining dilution and 5% ore loss. Open pit mineral resources exclusive of underground mineral resources. NI43-101 Technical Report for the Fire Creek Project, Lander County, Nevada; Effective Date March 31, 2018; prepared by Practical Mining LLC, Mark Odell, P.E. for Hecla Mining Company, June 28, 2018. (25) Inferred resources reported at a minimum mining width of 6.0 feet for Bulldog and an NSR cut-off value of $175/ton and 5.0 feet for Equity and North Amethyst veins at an NSR cut-off value of $100/ton; Metallurgical recoveries based on grade dependent recovery curves; metal recoveries at the mean resource grade average 89% silver, 74% lead, and 81% zinc for the Bulldog and a constant 85% gold and 85% silver for North Amethyst and Equity. (26) Inferred resource at Monte Cristo reported at a minimum mining width of 5.0 feet; resources based on $1400 Au, $26.50 Ag using a 0.06 oz/ton gold cut-off grade. Metallurgical recovery: 90% for gold and 90% silver. (27) Inferred resource at Rock Creek reported at a minimum thickness of 15 feet and an NSR cut-off value of $24.50/ton; Metallurgical recoveries: 88% for silver and 92% for copper. Resources adjusted based on mining restrictions as defined by U.S. Forest Service, Kootenai National Forest in the June 2003 'Record of Decision, Rock Creek Project' (28) Inferred resource at Montanore reported at a minimum thickness of 15 feet and an NSR cut-off value of $24.50/ton NSR; Metallurgical recoveries: 88% for silver and 92% copper. Resources adjusted based on mining restrictions as defined by U.S. Forest Service, Kootenai National Forest, Montana DEQ in December 2015 'Joint Final EIS, Montanore Project' and the February 2016 U.S Forest Service - Kootenai National Forest 'Record of Decision, Montanore Project'. Totals may not represent the sum of parts due to rounding Category: Earnings View source version on businesswire.com: https://www.businesswire.com/news/home/20230215005365/en/
Anvita M. Patil Vice President - Investor Relations and Treasurer Cheryl Turner Communications Coordinator 800-HECLA91 (800-432-5291) Investor Relations Email: hmc-info@hecla-mining.com Website: http://www.hecla-mining.com