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 Second Quarter 2023 Results By: Hecla Mining Company via Business Wire August 08, 2023 at 23:06 PM EDT Strong silver free cash flow generation affirming silver guidance Hecla Mining Company (NYSE:HL) today announced second quarter 2023 financial and operating results. SECOND QUARTER HIGHLIGHTS Operational Produced 3.8 million ounces of silver, 7.9 million ounces in the first half of the year; third highest silver production over a six-month period in Company history. Restarted the mill at Keno Hill, producing 184,264 ounces of silver, with full production expected by year-end. Lucky Friday's silver production of 1.3 million ounces was the highest since the first quarter of 2000. Silver production and cost guidance affirmed; gold production guidance adjusted based on reduced underground mining and wildfires-related suspension of operations at Casa Berardi. Financial Sales of $178.1 million, with 45% from silver and 35% from gold. Consolidated silver total cost of sales of $96.8 million and cash cost and AISC per silver ounce (each after by-product credits) of $3.32 and $11.63, respectively.3,4 Consolidated cash flow from operations of $23.8 million for the quarter, and year to date $64.4 million; with silver operations generating $62.2 million in cash flow from operations for the quarter and year to date $151.7 million. Silver operations generated $38.8 million in free cash flow for the quarter, and year to date $107.4 million.2 Since 2020, silver operations have generated cash flow from operations of $788 million and free cash flow of $566 million. Net loss applicable to common stockholders of $(15.8) million or $(0.03) per share and adjusted net income of $15.1 million or $0.03 per share.5 Strong balance sheet with $106.8 million in cash and cash equivalents, and available liquidity of $219 million. Environmental, Social, Governance Strong safety performance with an all-injury frequency rate of 1.18, the lowest in Company history. Strategic Acquired ATAC Resources on July 7th for $18.8 million in Hecla stock, adding a massive land package of over 700 square miles comprised of the Rackla and Connaught properties in the Yukon. "Our silver operations reported another solid quarter of operational and financial performance with strong free cash flow generation and our lowest all-injury frequency rate in our history," said Phillips S. Baker Jr., President and CEO. "Greens Creek continued its strong and consistent performance, Lucky Friday produced the most silver in a quarter since 2000, and with the service hoist now operational, this mine is closer to achieving 425,000 ore tons in annual throughput by year-end, and we restarted the Keno Hill mill during the quarter." Baker continued, "Our silver mines have generated $107 million in free cash flow in the first half of the year and in excess of $560 million since 2020. With this free cash flow, we are investing to extend the mine lives and increase the production of our mines making Hecla the fastest growing established silver producer with 17 million ounces of production expected this year and about 20 million ounces by 2025, all in the U.S. and Canada." Baker concluded, “Silver is an essential metal in powering the transition to a green economy, particularly photovoltaics, whose rapid growth is now using 15 to 20% of global annual silver production. Hecla, with our growing, long-lived, low-cost mines, is well positioned to reliably provide the silver the world needs." 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 2Q-2023 1Q-2023 4Q-2022 3Q-2022 2Q-2022 YTD-2023 YTD-2022 FINANCIAL AND PRODUCTION SUMMARY Sales $ 178,131 $ 199,500 $ 194,825 $ 146,339 $ 191,242 $ 377,631 $ 377,741 Total cost of sales $ 140,472 $ 164,552 $ 169,807 $ 137,892 $ 153,979 $ 305,024 $ 295,049 Gross profit $ 37,659 $ 34,948 $ 25,018 $ 8,447 $ 37,263 $ 72,607 $ 82,692 Net(loss) applicable to common stockholders $ (15,832 ) $ (3,311 ) $ (4,590 ) $ (23,664 ) $ (13,661 ) $ (19,143 ) $ (9,646 ) Basic (loss) per common share (in dollars) $ (0.03 ) $ (0.01 ) $ (0.01 ) $ (0.04 ) $ (0.03 ) $ (0.03 ) $ (0.02 ) Adjusted EBITDA1 $ 67,739 $ 61,903 $ 62,261 $ 26,555 $ 70,474 $ 129,642 $ 128,676 Net Debt to Adjusted EBITDA1 2.1 1.9 Cash provided by operating activities $ 23,777 $ 40,603 $ 36,120 $ (24,322 ) $ 40,183 $ 64,380 $ 78,092 Capital Expenditures $ (51,468 ) $ (54,443 ) $ (56,140 ) $ (37,430 ) $ (34,329 ) $ (105,911 ) $ (55,807 ) Free Cash Flow2 $ (27,691 ) $ (13,840 ) $ (20,020 ) $ (61,752 ) $ 5,854 $ (41,531 ) $ 22,285 Silver ounces produced 3,832,559 4,040,969 3,663,433 3,549,392 3,645,454 7,873,528 6,970,162 Silver payable ounces sold 3,360,694 3,604,494 3,756,701 2,479,724 3,387,909 6,965,188 6,075,170 Gold ounces produced 35,251 39,717 43,634 44,747 45,719 74,822 87,361 Gold payable ounces sold 31,961 39,619 40,097 40,443 44,225 71,580 85,278 Cash Costs and AISC, each after by-product credits Silver cash costs per ounce 3 $ 3.32 $ 2.14 $ 4.79 $ 3.43 $ (1.14 ) $ 2.70 $ (0.07 ) Silver AISC per ounce 4 $ 11.63 $ 8.96 $ 13.98 $ 12.93 $ 8.08 $ 10.21 $ 7.75 Gold cash costs per ounce 3 $ 1,658 $ 1,775 $ 1,696 $ 1,349 $ 1,371 $ 1,725 $ 1,440 Gold AISC per ounce 4 $ 2,147 $ 2,392 $ 2,075 $ 1,669 $ 1,605 $ 2,286 $ 1,680 Realized Prices Silver, $/ounce $ 23.67 $ 22.62 $ 22.03 $ 18.30 $ 20.68 $ 23.12 $ 22.45 Gold, $/ounce $ 1,969 $ 1,902 $ 1,757 $ 1,713 $ 1,855 $ 1,928 $ 1,867 Lead, $/pound $ 0.99 $ 1.02 $ 1.05 $ 0.95 $ 0.97 $ 1.00 $ 1.02 Zinc, $/pound $ 1.13 $ 1.39 $ 1.24 $ 1.23 $ 1.44 $ 1.26 $ 1.61 Sales in the second quarter declined by 11% to $178.1 million from the first quarter of 2023 ("prior quarter") due to lower quantities of all metals sold and lower realized lead and zinc prices, partially offset by higher precious metals prices. Gross profit increased to $37.7 million, an increase of 8% over the prior quarter, as lower total cost of sales attributable to lower quantities of metals sold offset lower sales. Net loss applicable to common stockholders was $(15.8) million in the second quarter due to: Increased ramp-up and suspension costs of $5.0 million, reflecting the impact of the suspension of operations at Casa Berardi in June due to wildfires in Quebec and the start-up of Keno Hill. Increased provision for closed operations and environmental matters of $2.1 million reflecting adjustments to the reclamation costs at the legacy Johnny M and Durita properties. An unrealized loss on investments of $5.6 million compared to a gain of $2.2 million, reflecting changes in the fair value of our marketable securities portfolio. A foreign exchange loss of $3.9 million compared to a gain of $0.1 million, reflecting the impact of the appreciation of the Canadian dollar on our monetary assets and liabilities. Increased income and mining tax expense of $1.9 million, reflecting increased taxable income from our U.S. assets. The above items were partly offset by: Lower adjustments of inventory to net realizable value of $1.5 million at our Casa Berardi and Nevada operations. Lower depreciation, depletion, and amortization expense of $6.3 million, reflecting the impact of the suspension of operations in June at Casa Berardi and lower silver sales. Consolidated silver’s total cost of sales in the second quarter decreased by 4% to $96.8 million from the prior quarter, primarily due to lower concentrate tons sold, partially offset by higher production costs at Lucky Friday. Cash costs and AISC per silver ounce, each after by-product credits, were $3.32 and $11.63, respectively.3,4 The increase in cash costs per ounce was due to higher production costs at Lucky Friday, lower consolidated silver production, and lower base metal by-product credits attributable to lower realized prices partially offset by higher Greens Creek gold production and realized price. AISC was further impacted by higher planned sustaining capital spending at the silver operations.3,4 Consolidated total gold cost of sales decreased by 32% to $43.6 million in the second quarter due to lower production costs attributable to the June wildfires-related suspension at Casa Berardi. Cash costs and AISC per gold ounce, each after by-product credits, were $1,658 and $2,147, respectively.3,4 The decrease in cash costs per ounce was attributable to lower production costs partially offset by lower gold production at Casa Berardi, with AISC also impacted by lower sustaining capital spend. Adjusted EBITDA for the second quarter increased by 9% to $67.7 million compared to the prior quarter due to higher gross profit, lower general and administrative expenses, and monetization of zinc hedges. During the quarter, average zinc prices declined to $1.15/lb., the lowest since April 2020 and a 19% decrease over the prior quarter. The Company monetized its zinc hedge contracts for proceeds of $7.6 million during the quarter. The ratio of net debt to Adjusted EBITDA increased to 2.1 for the second quarter due primarily to the wildfires-related suspension at the Casa Berardi mine. With Keno Hill's ongoing ramp-up to full production, and Casa Berardi resuming production, the Company expects net debt to Adjusted EBITDA ratio to decline to less than the Company's target of 2.1 Cash and cash equivalents at the end of the second quarter were $106.8 million and included $31 million drawn on the revolving credit facility. Available liquidity was $219 million as of the end of the quarter. Cash provided by operating activities was $23.8 million and decreased by $16.8 million over the prior quarter primarily due to unfavorable working capital changes partially attributable to the increase in product inventory at the Lucky Friday and Keno Hill as it commenced production during the quarter, and payment of 2022 incentive compensation. Capital expenditures were $51.5 million (net of finance leases of $15.2 million) in the second quarter, compared to $54.4 million in the prior quarter (net of finance leases of $0.9 million). Capital spend at Casa Berardi was for purchases of open pit equipment for approximately $11.9 million (partially financed by leases of $6.6 million) as the mine begins the transition from underground and open pit production to all production from surface operations. The increase in Greens Creek's capital spend was related to the timing of equipment purchases and seasonal surface projects, with the increase in Lucky Friday's capital spend also impacted by the timing of equipment purchases and the service hoist and coarse ore bunker projects. Keno Hill's capital spend was $3.5 million (net of finance leases of $6.7 million) and declined over the prior quarter as the mine began ramp-up to full production during the quarter. Free cash flow for the quarter was negative $27.7 million, compared to negative $13.8 million in the prior quarter. The decrease in free cash flow was attributable to lower cash flow from operations attributable to unfavorable working capital changes during the quarter.2 Forward Sales Contracts for Base Metals and Foreign Currency The Company uses financially settled forward sales contracts to manage exposures to zinc and lead price changes in forecasted concentrate shipments. On June 30, 2023, the Company had contracts covering approximately 39% of the forecasted payable lead production from 2023 - 2025 at an average price of $0.99 per pound. The Company also manages CAD exposure through forward contracts. At June 30, 2023, the Company had hedged approximately 48% of forecasted Casa Berardi CAD direct production costs through 2026 at an average CAD/USD rate of 1.32. The Company has also hedged approximately 22% of Casa Berardi capital costs through 2026 at 1.35. At Keno Hill, 54% of the total planned spend for 2023 and 2024 is hedged at an average CAD/USD rate of 1.36. OPERATIONS OVERVIEW Greens Creek Mine - Alaska Dollars are in thousands except cost per ton 2Q-2023 1Q-2023 4Q-2022 3Q-2022 2Q-2022 YTD-2023 YTD-2022 GREENS CREEK Tons of ore processed 232,465 233,167 230,225 229,975 209,558 465,632 421,245 Total production cost per ton $ 194.94 $ 198.60 $ 211.29 $ 185.34 $ 197.84 $ 196.77 $ 194.98 Ore grade milled - Silver (oz./ton) 12.8 14.4 13.1 13.6 14.0 13.6 13.9 Ore grade milled - Gold (oz./ton) 0.10 0.08 0.08 0.07 0.08 0.09 0.08 Ore grade milled - Lead (%) 2.5 2.6 2.6 2.4 3.0 2.6 2.9 Ore grade milled - Zinc (%) 6.5 6.0 6.7 6.3 7.2 6.2 6.9 Silver produced (oz.) 2,355,674 2,772,859 2,433,275 2,468,280 2,410,598 5,128,533 4,840,380 Gold produced (oz.) 16,351 14,884 12,989 11,412 12,413 31,235 23,815 Lead produced (tons) 4,726 5,202 4,985 4,428 5,184 9,928 10,067 Zinc produced (tons) 13,255 12,482 13,842 12,580 13,396 25,737 25,890 Sales $ 95,891 $ 98,611 $ 95,374 $ 60,875 $ 92,723 $ 194,502 $ 178,813 Total cost of sales $ (63,054 ) $ (66,288 ) $ (70,075 ) $ (52,502 ) $ (60,506 ) $ (129,342 ) $ (110,143 ) Gross profit $ 32,837 $ 32,323 $ 25,299 $ 8,373 $ 32,217 $ 65,160 $ 68,670 Cash flow from operations $ 43,302 $ 43,346 $ 44,769 $ 7,749 $ 41,808 $ 86,648 $ 98,103 Exploration $ 1,760 $ 448 $ 1,050 $ 3,776 $ 929 $ 2,208 $ 1,094 Capital additions $ (8,828 ) $ (6,658 ) $ (12,150 ) $ (6,988 ) $ (14,668 ) $ (15,486 ) $ (17,760 ) Free cash flow 2 $ 36,234 $ 37,136 $ 33,669 $ 4,537 $ 28,069 $ 73,370 $ 81,437 Cash cost per ounce, after by-product credits 3 $ 1.33 $ 1.16 $ 4.26 $ 2.65 $ (3.29 ) $ 1.23 $ (2.09 ) AISC per ounce, after by-product credits 4 $ 5.34 $ 3.82 $ 8.61 $ 7.07 $ 3.10 $ 4.51 $ 2.47 Greens Creek produced 2.4 million ounces of silver in the second quarter, a decrease of 15% over the prior quarter due to expected lower mined grades. Gold production increased by 10% to 16,351 ounces due to higher grades; zinc and lead production was consistent with the prior quarter. Throughput for the quarter was 2,555 tons per day ("tpd"), and the mine remains on track to achieve an annual throughput of 2,600 tpd by year-end. Sales in the second quarter were $95.9 million, a decrease of 3% over the prior quarter due to lower realized prices for base metals, primarily zinc, and lower payable metals sold (except gold), partially offset by higher realized prices for silver and gold. Total cost of sales were $63.1 million, and decreased by 5% over the prior quarter due to lower sales volumes, and lower production costs attributable to lower fuel prices. Cash costs and AISC per silver ounce, each after by-product credits, were $1.33 and $5.34 and increased over the prior quarter as lower production costs were offset by lower base metal by-product credits (primarily zinc, due to lower prices) and lower silver production. Increased AISC per silver ounce was attributable to higher sustaining capital spend of $8.8 million due to timing of equipment purchases and surface projects.3,4 Cash flow from operations was $43.3 million, in line with the prior quarter. Capital spend was $8.8 million (all sustaining) during the quarter, an increase of $2.2 million over the prior quarter due to the timing of equipment purchases and seasonal construction projects. Free cash flow for the quarter was $36.2 million, a slight decrease over the prior quarter due to higher exploration and capital spend. The Greens Creek mine generated $73.4 million in free cash flow during the first half of 2023.2 Lucky Friday Mine - Idaho Dollars are in thousands except cost per ton 2Q-2023 1Q-2023 4Q-2022 3Q-2022 2Q-2022 YTD-2023 YTD-2022 LUCKY FRIDAY Tons of ore processed 94,043 95,303 90,935 90,749 97,497 189,346 175,222 Total production cost per ton $ 248.65 $ 210.72 $ 232.73 $ 207.10 $ 211.45 $ 229.56 $ 227.30 Ore grade milled - Silver (oz./ton) 14.3 13.8 14.0 12.5 13.2 14.1 12.7 Ore grade milled - Lead (%) 9.1 8.8 9.1 8.5 8.8 9.0 8.5 Ore grade milled - Zinc (%) 4.2 4.1 4.1 4.2 3.9 4.2 3.8 Silver produced (oz.) 1,286,666 1,262,464 1,224,199 1,074,230 1,226,477 2,549,130 2,114,335 Lead produced (tons) 8,180 8,034 7,934 7,172 8,147 16,214 14,127 Zinc produced (tons) 3,338 3,313 3,335 3,279 3,370 6,651 5,822 Sales $ 42,648 $ 49,110 $ 45,434 $ 28,460 $ 35,880 $ 91,758 $ 73,920 Total cost of sales $ (32,190 ) $ (34,534 ) $ (32,819 ) $ (24,166 ) $ (30,348 ) $ (66,724 ) $ (59,613 ) Gross profit $ 10,458 $ 14,576 $ 12,615 $ 4,294 $ 5,532 $ 25,034 $ 14,307 Cash flow from operations $ 18,893 $ 46,132 $ (7,437 ) $ 11,624 $ 21,861 $ 65,025 $ 33,626 Capital additions $ (16,317 ) $ (14,707 ) $ (13,714 ) $ (16,125 ) $ (11,501 ) $ (31,024 ) $ (21,153 ) Free cash flow 2 $ 2,576 $ 31,425 $ (21,151 ) $ (4,501 ) $ 10,360 $ 34,001 $ 12,473 Cash cost per ounce, after by-product credits 3 $ 6.96 $ 4.30 $ 5.82 $ 5.23 $ 3.07 $ 5.64 $ 4.54 AISC per ounce, after by-product credits 4 $ 14.24 $ 10.69 $ 12.88 $ 15.98 $ 9.91 $ 12.48 $ 11.27 Lucky Friday produced 1.3 million ounces of silver, an increase of 2% over the prior quarter due to higher grades partially offset by lower throughput due to the local utility's unplanned replacement of the main electrical transformer. Second quarter silver production was the highest since the first quarter of 2000, marking the fifth consecutive quarter of silver production exceeding one million ounces. Throughput for the quarter was 1,033 tpd and is expected to increase to an annual rate of 425,000 tons by year end. Sales in the second quarter were $42.6 million, a decrease of 13% over the prior quarter, attributable to a combination of lower payable metals sold and lower realized base metals prices, partially offset by higher realized silver prices. Lower payable metals sold was due to an increase in silver concentrate inventory (impact of approximately $3 million) as maintenance activities impacted a smelter’s ability to take delivery of certain shipments at quarter end, with the sales deferred to the third quarter. Total cost of sales were $32.2 million, a decrease of 7% over the prior quarter primarily due to lower concentrate volumes sold. Production costs at the mine increased over the prior quarter due to higher labor costs related to the new Collective Bargaining Agreement ("CBA") signed in the first quarter of 2023 (CBA related costs are expected to be $2.5 million for the year), and higher consumables costs partially offset by lower fuel costs. Cash costs and AISC per silver ounce, each after by-product credits, were $6.96 and $14.24 respectively, with the increase primarily attributable to higher production costs, lower zinc by-product credits due to lower realized prices, partially offset by higher silver production.3,4 AISC per silver ounce was further unfavorably impacted by higher sustaining capital spend reflecting accelerated project completion.3,4 Cash flow from operations was $18.9 million, a decrease of $27.2 million over the prior quarter. The decrease was attributable to lower sales, higher production costs, unfavorable working capital changes and the prior quarter's favorable impact of $6.7 million receipt related to payment for a silver concentrate shipment shipped in the fourth quarter of 2022. Capital expenditures for the quarter totaled $16.3 million (net of $2.0 million in finance leases), comprised of approximately $9.2 million each in sustaining and growth capital, which included the coarse ore bunker and the service hoist projects. The service hoist project was completed in early August, and the coarse ore bunker project which will decouple the mill from the mine, is expected to be completed in the fourth quarter. Free cash flow was $2.6 million, a decrease of $28.8 million over the prior quarter primarily due to the decrease in cash flow from operations and higher capital spend during the quarter.2 Lucky Friday generated $34.0 million in free cash flow during the first half of 2023.2 Casa Berardi - Quebec Dollars are in thousands except cost per ton 2Q-2023 1Q-2023 4Q-2022 3Q-2022 2Q-2022 YTD-2023 YTD-2022 CASA BERARDI Tons of ore processed - underground 94,124 110,245 160,150 162,215 176,576 204,369 338,185 Tons of ore processed - surface pit 224,580 318,909 250,883 227,726 225,042 543,489 449,586 Tons of ore processed - total 318,704 429,154 411,033 389,941 401,618 747,858 787,771 Surface tons mined - ore and waste 2,461,196 2,136,993 2,657,638 2,822,906 2,149,412 4,598,189 4,041,751 Total production cost per ton $ 97.69 $ 107.95 $ 125.75 $ 114.52 $ 113.07 $ 103.58 $ 115.46 Ore grade milled - Gold (oz./ton) - underground 0.14 0.13 0.15 0.15 0.19 0.13 0.17 Ore grade milled - Gold (oz./ton) - surface pit 0.04 0.05 0.05 0.06 0.05 0.05 0.05 Ore grade milled - Gold (oz./ton) - combined 0.07 0.07 0.09 0.10 0.10 0.07 0.09 Gold produced (oz.) - underground 10,226 11,788 20,365 22,181 22,866 22,014 42,240 Gold produced (oz.) - surface pit 8,675 12,898 10,344 11,154 10,440 21,573 21,306 Gold produced (oz.) - total 18,901 24,686 30,709 33,335 33,306 43,587 63,546 Silver produced (oz.) - total 5,956 5,645 5,960 6,882 8,379 11,601 15,447 Sales $ 36,946 $ 50,998 $ 53,458 $ 56,939 $ 62,639 $ 87,944 $ 124,740 Total cost of sales $ (42,576 ) $ (62,998 ) $ (65,328 ) $ (59,532 ) $ (61,870 ) $ (105,574 ) $ (124,038 ) Gross (loss) profit $ (5,630 ) $ (12,000 ) $ (11,870 ) $ (2,593 ) $ 769 $ (17,630 ) $ 702 Cash flow from operations $ (8,148 ) $ (684 ) $ 10,188 $ 8,721 $ 7,417 $ (8,832 ) $ 15,506 Exploration $ 1,107 $ 1,054 $ 1,637 $ 2,624 $ 1,341 $ 2,161 $ 3,976 Capital additions $ (20,816 ) $ (17,086 ) $ (12,995 ) $ (10,771 ) $ (8,093 ) $ (37,902 ) $ (15,901 ) Free cash flow 2 $ (27,857 ) $ (16,716 ) $ (1,170 ) $ 574 $ 665 $ (44,573 ) $ 3,581 Cash cost per ounce, after by-product credits 3 $ 1,658 $ 1,775 $ 1,696 $ 1,349 $ 1,371 $ 1,725 $ 1,440 AISC per ounce, after by-product credits 4 $ 2,147 $ 2,392 $ 2,075 $ 1,669 $ 1,605 $ 2,286 $ 1,680 Casa Berardi produced 18,901 ounces of gold in the second quarter, a decrease of 23% over the prior quarter, primarily due to lower tons mined and milled because of wildfires-related suspension in June. The mill operated at an average of 4,600 tpd during the first two months of the quarter. Lower production during the quarter led to lower sales of $36.9 million, a 28% decrease over the prior quarter, and lower total cost of sales of $42.6 million, 32% lower compared to the prior quarter. Cash costs and AISC per gold ounce, each after by-product credits, were $1,658 and $2,147 respectively and decreased over the prior quarter due to lower production costs which offset the decline in gold production. AISC was further favorably impacted by lower sustaining capital spend as capital allocated to growth increased during the quarter.3,4 Cash flow from operations was negative $8.1 million, a decrease of $7.5 million over the prior quarter due to lower sales partially offset by lower costs. Capital spend for the quarter was $20.8 million (net of finance leases of $6.6 million) with $9.0 million and $18.4 million in sustaining and growth capital spend, respectively. Growth capital spend included the increase in equipment fleet of $11.9 million for the open pit operations as the mine is beginning to transition from an underground/open pit operation to an open pit only operation. Free cash flow for the quarter was negative $27.9 million, compared to negative free cash flow in the prior quarter of $16.7 million due to lower cash flow from operations and higher capital spending.2 The Company announced in May 2023 that the Casa Berardi mine is beginning to transition from an underground/open pit operation to an open pit only operation. As part of that transition, the lower margin East Mine underground operations were closed in July. The better margin stopes at the underground West Mine are planned to be mined until mid-2024, at which time most underground activity will stop except exploration. To increase the productivity of the surface operations, the Company has begun insourcing with the purchase of $11.9 million of mobile mining equipment, and another $4 million is expected to be spent in the third quarter. The Company expects to release an updated technical report in the first quarter of 2024. After closure of the underground operations in 2024, Casa Berardi will mine the 160 open pit until 2027 and is expected to be free cash flow positive. During a period of investment from 2028 to 2030, the Company expects no production while the permitting is being completed, investing in infrastructure and equipment, and exposing the first ore. Significant free cash flow is expected after 2030. East Mine closure and June’s wildfires have reduced production guidance by about 25,000 ounces in 2023 and have increased AISC per gold ounce (after by-product credits) guidance by approximately $200 per ounce. For further details, see the Guidance section of this release. Keno Hill - Yukon Territory At Keno Hill, the mill restarted and began processing lower grade, stockpiled ore in June, producing 184,264 ounces of silver for the quarter The mill operated as expected at 330 tpd, which is 73% of projected year-end throughput, processing stockpiled, lower-grade ore of 17 ounces per ton (“opt”). The mine advanced the primary development sufficiently to initiate ore mining. The mill reconciled well to the model in the quarter with slightly fewer tons and better grades resulting in the expected silver and lead content with more zinc. Silver production is expected to exceed 2.5 million ounces in 2023. Capital spend during the quarter was $3.4 million (net of $6.7 million in finance leases), and included mine development, surface infrastructure projects, and mill upgrades. Keno Hill will be included in silver operations reporting by the end of the year. EXPLORATION AND PRE-DEVELOPMENT Exploration and pre-development expenses totaled $6.9 million for the second quarter and $11.9 million for the first half of the year. Exploration activities during the quarter primarily focused on underground targets at Greens Creek, and Keno Hill. Highlights include: Keno Hill: Exploration drilling discovered high-grade mineralization in the Bermingham Townsite vein located within 500 feet of planned mine infrastructure. Greens Creek: Exploration and definition drilling continued to define and expand mineralization on strike of current mineralization with strong assay results from four targeted areas. Keno Hill, Yukon Territory At Keno Hill, $3.7 million of exploration is expected for the year. This quarter’s focus is on extending mineralization and resource conversion at the high-grade Bear Zone and defining new mineral resources at the Townsite Zone. During the first half, one underground drill completed over 11,000 feet of definition drilling, while two surface core drills completed over 13,000 feet of exploration drilling targeting the Bear and Townsite zones. Bear Zone: Definition drilling targeted extending the Bear Zone to the North towards the Ruby Fault, which is interpreted to constrain mineralization of both the Bermingham Main and Bear veins. At the Bear vein, drilling results suggest that grade continues and strengthens outside the currently programmed stopes and is open for expansion. Highlights include: 44.9 oz/ton silver, 1.7% lead, and 0.8% zinc over 11.1 feet 120.9 oz/ton silver, 1.5% lead, and 3.3% zinc over 2.8 feet 47.5 oz/ton silver, 0.8% lead, and 0.2% zinc over 7.8 feet 79.4 oz/ton silver, 3.0% lead, and 1.3% zinc over 6.1 feet Townsite Zone: High-grade mineralization was discovered in the Townsite vein approximately 2,000 feet southwest of the historical Townsite Mine stopes, and at a depth of 1,300 feet. This high-grade mineralization is open for expansion and continues to confirm the exploration potential within the district. Assay results to date include: 25.5 oz/ton silver, 0.9% lead, and 0.3% zinc over 9.2 feet, including 108.2 oz/ton silver, 4.5% lead, and 1.0% zinc over 1.7 feet Greens Creek, Alaska At Greens Creek, $8.0 million of exploration is focused on expanding mineralization both from surface and underground. Four underground core drills completed over 70,000 feet of drilling in 132 holes focused on resource conversion in the 200 South, East, Gallagher, Upper Plate, 9A, and West ore zones and exploration targeting the southern extensions of the 200 South, and Gallagher zones. Additionally, two helicopter supported core drills completed over 4,000 feet of drilling in 12 holes targeting near mine extensions to the Upper Plate and East ore zones. Assay results have been received for drilling in the 200 South, East, Gallagher, Upper Plate, and West areas, and results continue to confirm and expand mineral zones. Highlights include: 200 South Zone: 17.0 oz/ton silver, 0.19 oz/ton gold, 3.3% zinc, and 1.9% lead over 8.1 feet East Zone: 12.6 oz/ton silver, 0.05 oz/ton gold, 7.7% zinc, and 3.5% lead over 5.7 feet 20.9 oz/ton silver, 0.04 oz/ton gold, 3.4% zinc, and 2.2% lead over 3.6 feet Gallagher Zone: 7.9 oz/ton silver, 0.22 oz/ton gold, 10.5% zinc and 4.8% lead over 45.3 feet 15.0 oz/ton silver, 0.28 oz/ton gold, 2.6% zinc, and 1.3% lead over 9.0 feet 9.8 oz/ton silver, 0.19 oz/ton gold, 10.8% zinc, and 2.9% lead over 25.7 feet 21.6 oz/ton silver, 0.07 oz/ton gold, 0.6% zinc, and 0.4% lead over 41.3 feet Upper Plate Zone: Underground and surface drilling has expanded resources over 600 and 300 feet of strike length, respectively. Initial surface drillholes completed to date have intercepted significant lengths of base metal rich white ore lithologies. Assay results from these initial surface drillholes are expected in the third quarter. Results to date indicate that drilling is upgrading and expanding mineralization in the Upper Plate Zone. Highlights from this drilling include: 23.0 oz/ton silver, 0.05 oz/ton gold, 6.2% zinc and 3.1% lead over 13.2 feet 20.7 oz/ton silver, 0.06 oz/ton gold, 1.7% zinc, and 0.7% lead over 18.0 feet West Zone: Underground drilling expanded the strike length 550 feet with strong, high-grade mineralization over significant widths. Highlights from this drilling include: 63.4 oz/ton silver, 0.84 oz/ton gold, 11.9% zinc and 3.8% lead over 15.2 feet 13.0 oz/ton silver, 0.11 oz/ton gold, 14.4% zinc, and 3.4% lead over 8.3 feet Detailed complete drill assay highlights can be found in Table A at the end of the release. 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 September 7, 2023, to stockholders of record on August 24, 2023. The second quarter realized silver price was $23.67, satisfying the criterion for the Company’s common stock silver-linked dividend policy component. 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 October 2, 2023, to stockholders of record on September 15, 2023. 2023 GUIDANCE 6 The Company has updated its annual gold production, cost, and capital guidance as below. There is no change to silver production guidance. Gold production guidance for Greens Creek is increased to reflect higher gold production. Wildfires-related suspension of operations in June and the closure of the East Mine underground operations has resulted in lower expected gold production for 2023. Three-year gold production outlook has also decreased to include the closure of underground operations in mid-2024, and transition to full surface operations in 2024. 2023 Production Outlook Silver Production (Moz) Gold Production (Koz) Silver Equivalent (Moz) Gold Equivalent (Koz) Previous Current Previous Current Previous Current 2023 Greens Creek * 9.0 - 9.5 50.0 - 55.0 55.0 - 65.0 21.0 - 22.0 21.5 - 22.5 255 – 265 255 - 270 2023 Lucky Friday * 4.5 - 5.0 N/A N/A 8.5 - 9.0 8.5 - 9.0 105 - 110 105 - 110 2023 Casa Berardi N/A 110.0 - 115.0 85.0 - 95.0 9.0 - 9.5 7.0 - 8.0 110 – 115 85 – 95 2023 Keno Hill* 2.5 - 3.0 N/A N/A 2.5 - 3.0 2.5 - 3.0 35 - 40 35 - 40 2023 Total 16.0 - 17.5 160.0 - 170.0 140.0 - 160.0 41.0 - 44.5 40.0 - 43.0 505 – 535 480 – 520 2024 Total 17.5 - 18.5 145.0 - 161.0 105.0 - 125.0 42.5 - 44.5 38.5 - 41.5 510 - 540 465 - 505 2025 Total 18.5 - 20.0 142.0 - 161.5 100.0 - 115.0 41.0 - 44.0 38.0 - 41.0 495 - 535 460 – 495 * Equivalent ounces include Lead and Zinc production 2023 Cost Outlook At Greens Creek, guidance for cash costs, per silver ounce (net of by-products) has increased slightly to reflect lower zinc prices by-product credits due to lower zinc prices. Guidance for AISC, per silver ounce (each after by-product credits) has decreased due to higher expected gold production, and lower planned sustaining capital spend. At Lucky Friday, guidance for cash costs per silver ounce (each after by-product credits) is increased due to higher expected labor costs attributable to the CBA, and lower zinc by-product credits due to lower zinc prices. Lucky Friday guidance for AISC, per silver ounce (each after by-product credits) has been increased to reflect higher expected sustaining capital. Impact of the CBA changes on labor costs is approximately $2.5 million in 2023. Consolidated AISC per silver ounce (after by-product credits) is unchanged. At Casa Berardi mine, increase in cash costs and AISC, per gold ounce, each after by-product credits, is primarily due to lower gold production due to wildfires-related suspension of operations in June and closure of the East Mine operations. Costs of Sales (million) Cash cost, after by-product credits, per silver/gold ounce3 AISC, after by-product credits, per produced silver/gold ounce4 Previous Current Previous Current Previous Current Greens Creek 245 245 $0.00 - $0.25 $0.00 - $0.50 $6.00 - $6.75 $5.25 - $5.75 Lucky Friday 128 131 $2.00 - $2.50 $4.00 - $4.75 $8.50 - $9.50 $11.50 - $13.00 Keno Hill 40 40 $11.00 - $13.50 $11.00 - $13.50 $12.25 - $14.75 $12.25 - $14.75 Total Silver 413 416 $2.50 - $3.00 $3.00 - $4.00 $10.25 - $11.50 $10.25 - $11.50 Casa Berardi 220 215 $1,450 - $1,550 $1,750 - $1,950 $1,975 - $2,050 $2,000 - $2,250 2023 Capital and Exploration Outlook Consolidated capital guidance is increased for all operations except Greens Creek. At the Lucky Friday, increase in capital guidance is attributable to higher growth capital spend primarily related to the service hoist project, which was commissioned in early August. Increase in sustaining capital spend is attributable to increased development and timing of receipt of mobile equipment. At Keno Hill, increase in capital is attributable to mill upgrades, and increased underground development. At Casa Berardi, the increase in capital is primarily attributable to growth capital, which comprises the addition of surface equipment fleet (approximately $16 million) and capitalization of 160 pit waste stripping costs. Sustaining capital spend at the mine is guided lower due to the allocation of stripping costs to growth capital. Guidance for exploration and pre-development expenditures is unchanged at $32.5 million. (millions) Previous Current Current - Sustaining Current - Growth Capital expenditures $190 - $200 $225 - $235 $114 - $119 $111 - $116 Greens Creek $49 - $52 $47 - $50 $43 - $45 $4 - $5 Lucky Friday $48 - $51 $59 - $62 $34 - $36 $25 - $26 Casa Berardi $51 - $53 $72 - $74 $36 - $37 $36 - $37 Keno Hill $42 - $44 $47 - $49 $0.5 - $1 $46.5 - $48 Keno Hill Ramp Up Costs $9 $13 MANAGEMENT CHANGES Hecla today announced Lauren Roberts, Senior Vice President, and Chief Operating Officer, is retiring at the end of 2023 after 12 years of service. Lauren’s significant contributions during his tenure at Hecla include managing the challenges of COVID at our operations, implementing the underhand closed bench mining method at Lucky Friday, and acquiring Alexco. He began his career with Hecla in the 1980s and returned as the Chief Operating Officer five years ago; his leadership has been instrumental in Hecla’s production growth and improved safety performance. Carlos Aguiar will be appointed Vice President, Operations. Carlos has held several positions with the Company in the past 27 years and has been Vice President and General Manager of San Sebastian from 2016 to 2021 and Vice President and General Manager of Lucky Friday mine since 2021. Carlos will have the four operations reporting to him and will report to Lauren. CONFERENCE CALL AND WEBCAST A conference call and webcast will be held on Wednesday, August 9, 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/295670289 or www.hecla.com under Investors. VIRTUAL INVESTOR EVENT Hecla will be holding a Virtual Investor Event on Wednesday, August 9, 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 Financial, 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.com or 208-769-4100. One-on-One meeting URL: https://calendly.com/2023-aug-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, and Casa Berardi 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 total cost of sales, can be found at the end of the release. It is an important operating statistic that management utilizes to measure each mine's operating performance. It also allows the benchmarking of performance of each mine versus those of our competitors. As a primary silver mining company, management also uses the statistic on an aggregate basis - aggregating the Greens Creek and Lucky Friday mines - to compare performance with that of other silver mining companies, 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. (4) All-in sustaining cost (“AISC”), after by-product credits, is a non-GAAP measurement, a reconciliation of which to total cost of sales, the closest GAAP measurement, can be found at the end of the release. AISC, after by-product credits, includes total cost of sales and other direct production costs, expenses for reclamation at the mine sites and all site sustaining capital costs. AISC, after by-product credits, is calculated net of depreciation, depletion, and amortization and by-product credits. Prior year presentation has been adjusted to conform with current year presentation. (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) applicable to common stockholders is a measure used by management to evaluate the Company's operating performance but should not be considered an alternative to net income (loss) applicable to common stockholders 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) applicable to common stockholders 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 total cost of goods sold, do not capture all the expenditures incurred to discover, develop and sustain silver and gold production. Management believes that AISC is a non-GAAP measure that provides additional information to management, investors and analysts to help (i) in the understanding of the economics of our operations and performance compared to other producers and (ii) in the transparency by better defining the total costs associated with production. Similarly, the statistic is useful in identifying acquisition and investment opportunities as it provides a common tool for measuring the financial performance of other mines with varying geologic, metallurgical and operating characteristics. In addition, the Company may use it when formulating performance goals and targets under its incentive program. 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, for equivalent ounce calculations and Au $1,950/oz, Ag $24.50/oz, Zn $1.15/lb, and Pb 1.00$/lb, for by-product credit calculations. Numbers are 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) Lucky Friday will achieve annual production rate of 425,000 ore tons by the end of 2023 and will be able to complete capital projects (coarse ore bunker) on schedule; (ii) Greens Creek will achieve throughput of 2,600 tpd by the fourth quarter; (iii) Keno Hill will achieve full production by year-end, with expected throughput of approximately 440 tpd; (iv) regarding Casa Berardi: (1) it will be a full surface operation by 2024 and be free cash flow positive after the completion of stripping and Cell 7 of the tailings facility, (2) the Company expects to release the updated technical report for Casa Berardi in the first quarter of 2024, (3) after closure of the underground operations in 2024, Casa Berardi is projected to mine the 160 open pit until 2027, (4) permitting of the higher-grade Principal and West Mine Crown Pillar pits is expected over the next four years after which investment in stripping and dewatering is expected to occur, and (5) the Company expects a production gap of approximately two years between 2028 and 2030 and once the higher grade pits are in production, they are expected to generate significant free cash flow starting in 2030; (v) the Company will achieve silver production of 20 million ounces by 2025; (vi) the Company will be able to achieve Net Debt to Adjusted EBITDA ratio of <2.0; (vii) mine-specific and Company-wide estimates of future production, sales and total cost of sales, as well as cash cost and AISC per ounce (in each case after by-product credits); and (viii) 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, including with respect to the transition of Casa Berardi from an underground/open pit operation to an open pit only operation; (iii) political/regulatory developments in any jurisdiction in which the Company operates being consistent with its current expectations; (iv) the exchange rate for the USD/CAD being approximately consistent with current levels; (v) certain price assumptions for gold, silver, lead and zinc; (vi) prices for key supplies being approximately consistent with current levels; (vii) the accuracy of our current mineral reserve and mineral resource estimates; (viii) there being no significant changes to 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, including with respect to obtaining or renewing permits; (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) 2022 Annual Report on Form 10-K, filed with the Securities and Exchange Commission (“SEC”) on February 17, 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 Annual Report on Form 10-K for the year ended December 31, 2022 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 are contained in technical reports prepared for Klondex Mines Ltd. for (i) the Fire Creek Mine (technical report dated March 31, 2018), (ii) the Hollister Mine (technical report dated May 31, 2017, amended August 9, 2017), and (iii) the Midas Mine (technical report dated August 31, 2014, amended April 2, 2015). Copies of these technical reports are available under Hecla’s profile on SEDAR 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 Loss (dollars and shares in thousands, except per share amounts - unaudited) Three Months Ended Six Months Ended June 30, 2023 March 31, 2023 June 30, 2023 June 30, 2022 Sales $ 178,131 $ 199,500 $ 377,631 $ 377,741 Cost of sales and other direct production costs 107,754 125,550 233,304 221,679 Depreciation, depletion and amortization 32,718 39,002 71,720 73,370 Total cost of sales 140,472 164,552 305,024 295,049 Gross profit 37,659 34,948 72,607 82,692 Other operating expenses: General and administrative 10,783 12,070 22,853 17,986 Exploration and pre-development 6,893 4,967 11,860 24,008 Ramp-up and suspension costs 16,323 11,336 27,659 11,447 Provision for closed operations and environmental matters 3,111 1,044 4,155 2,373 Other operating (income) expense (4,262 ) (22 ) (4,284 ) 4,408 32,848 29,395 62,243 60,222 Income from operations 4,811 5,553 10,364 22,470 Other (expense) income: Interest expense (10,311 ) (10,165 ) (20,476 ) (20,911 ) Fair value adjustments, net (2,558 ) 3,181 623 (10,463 ) Foreign exchange gain (loss) (3,850 ) 108 (3,742 ) 2,444 Other income 1,376 1,392 2,768 2,975 (15,343 ) (5,484 ) (20,827 ) (25,955 ) Income (loss) before income taxes (10,532 ) 69 (10,463 ) (3,485 ) Income and mining tax (expense) benefit (5,162 ) (3,242 ) (8,404 ) (5,885 ) Net loss (15,694 ) (3,173 ) (18,867 ) (9,370 ) Preferred stock dividends (138 ) (138 ) (276 ) (276 ) Net loss applicable to common stockholders $ (15,832 ) $ (3,311 ) $ (19,143 ) $ (9,646 ) Basic and diluted loss per common share after preferred dividends (in cents) $ (0.03 ) $ (0.01 ) $ (0.03 ) $ (0.02 ) Weighted average number of common shares outstanding basic 604,088 600,075 602,077 538,943 Weighted average number of common shares outstanding diluted 604,088 600,075 602,077 538,943 HECLA MINING COMPANY Condensed Consolidated Statements of Cash Flows (dollars in thousands - unaudited) Quarter Ended Six Months Ended June 30, 2023 March 31, 2023 June 30, 2023 June 30, 2022 OPERATING ACTIVITIES Net loss $ (15,694 ) $ (3,173 ) $ (18,867 ) $ (9,370 ) Non-cash elements included in net income (loss): Depreciation, depletion and amortization 34,718 39,892 74,610 73,656 Adjustment of inventory to net realizable value 2,997 4,521 7,518 754 Fair value adjustments, net 2,558 (3,181 ) (623 ) (14,185 ) Provision for reclamation and closure costs 3,634 1,694 5,328 3,271 Stock compensation 1,498 1,190 2,688 2,525 Deferred income taxes 4,027 558 4,585 (1,290 ) Foreign exchange loss (gain) 6,025 (2,218 ) 3,807 (3,442 ) Other non-cash items, net 1,388 186 1,574 982 Change in assets and liabilities: Accounts receivable 13,087 15,477 28,564 19,199 Inventories (8,882 ) (9,239 ) (18,121 ) (8,352 ) Other current and non-current assets (5,207 ) (9,856 ) (15,063 ) (894 ) Accounts payable, accrued and other current liabilities 9,447 (9,304 ) 143 17,119 Accrued payroll and related benefits (14,248 ) 4,705 (9,543 ) 278 Accrued taxes (2,311 ) 2,226 (85 ) (5,683 ) Accrued reclamation and closure costs and other non-current liabilities (9,260 ) 7,125 (2,135 ) 3,524 Cash provided by operating activities 23,777 40,603 64,380 78,092 INVESTING ACTIVITIES Additions to properties, plants, equipment and mineral interests (51,468 ) (54,443 ) (105,911 ) (55,807 ) Proceeds from sale or exchange of investments — — — 2,487 Proceeds from disposition of properties, plants, equipment and mineral interests 80 — 80 730 Purchases of investments — — — (21,899 ) Net cash used in investing activities (51,388 ) (54,443 ) (105,831 ) (74,489 ) FINANCING ACTIVITIES Proceeds from issuance of stock, net of related costs 14,003 11,885 25,888 — Acquisition of treasury shares (1,554 ) (482 ) (2,036 ) (3,677 ) Borrowing of debt 43,000 13,000 56,000 — Repayment of debt (12,000 ) (13,000 ) (25,000 ) — Dividends paid to common and preferred stockholders (3,917 ) (3,891 ) (7,808 ) (7,027 ) Credit facility feed paid — 0 — (74 ) Repayments of finance leases (2,301 ) (2,464 ) (4,765 ) (3,333 ) Net cash provided by (used in) financing activities 37,231 5,048 42,279 (14,111 ) Effect of exchange rates on cash 1,046 171 1,217 (1,321 ) Net increase (decrease) in cash, cash equivalents and restricted cash and cash equivalents 10,666 (8,621 ) 2,045 (11,829 ) Cash, cash equivalents and restricted cash at beginning of period 97,286 105,907 105,907 211,063 Cash, cash equivalents and restricted cash at end of period $ 107,952 $ 97,286 $ 107,952 $ 199,234 HECLA MINING COMPANY Condensed Consolidated Balance Sheets (dollars and shares in thousands - unaudited) June 30, 2023 December 31, 2022 ASSETS Current assets: Cash and cash equivalents $ 106,786 $ 104,743 Accounts receivable 30,716 55,841 Inventories 94,613 90,672 Other current assets 27,040 16,471 Total current assets 259,155 267,727 Investments 20,778 24,018 Restricted cash 1,166 1,164 Properties, plants, equipment and mineral interests, net 2,615,747 2,569,790 Operating lease right-of-use assets 9,901 11,064 Deferred tax assets 2,703 21,105 Other non-current assets 36,009 32,304 Total assets $ 2,945,459 $ 2,927,172 LIABILITIES Current liabilities: Accounts payable and accrued liabilities $ 81,653 $ 84,747 Accrued payroll and related benefits 25,993 37,579 Accrued taxes 4,036 4,030 Finance leases 11,213 9,483 Accrued reclamation and closure costs 9,693 8,591 Accrued interest 14,404 14,454 Other current liabilities 4,348 19,582 Total current liabilities 151,340 178,466 Accrued reclamation and closure costs 110,236 108,408 Long-term debt including finance leases 559,817 517,742 Deferred tax liability 118,611 125,846 Other non-current liabilities 12,619 17,743 Total liabilities 952,623 948,205 STOCKHOLDERS’ EQUITY Preferred stock 39 39 Common stock 153,334 151,819 Capital surplus 2,289,607 2,260,290 Accumulated deficit (430,606 ) (403,931 ) Accumulated other comprehensive income, net 14,196 2,448 Treasury stock (33,734 ) (31,698 ) Total stockholders’ equity 1,992,836 1,978,967 Total liabilities and stockholders’ equity $ 2,945,459 $ 2,927,172 Common shares outstanding 613,682 607,620 Non-GAAP Measures (Unaudited) Reconciliation of Total Cost of Sales to Cash Cost, Before By-product Credits and Cash Cost, After By-product Credits (non-GAAP) and All-In Sustaining Cost, Before By-product Credits and All-In Sustaining Cost, After By-product Credits (non-GAAP) The tables below present reconciliations between the most comparable GAAP measure of total cost of sales to the non-GAAP measures of (i) Cash Cost, Before By-product Credits, (ii) Cash Cost, After By-product Credits, (iii) AISC, Before By-product Credits and (iv) AISC, After By-product Credits for our operations and for the Company for the three months and six months ended June 30, 2023 and 2022, the three months ended March 31, 2023 December 31, 2022, September 30, 2022 and June 30, 2022. Cash Cost, After By-product Credits, per Ounce and AISC, After By-product Credits, per Ounce are measures developed by precious metals companies (including the Silver Institute and the World Gold Council) in an effort to provide a uniform standard for comparison purposes. There can be no assurance, however, that these non-GAAP measures as we report them are the same as those reported by other mining companies. Cash Cost, After By-product Credits, per Ounce is an important operating statistic that we utilize to measure each mine's operating performance. We use AISC, After By-product Credits, per Ounce as a measure of our mines' net cash flow after costs for reclamation and sustaining capital. This is similar to the Cash Cost, After By-product Credits, per Ounce non-GAAP measure we report, but also includes reclamation and sustaining capital costs. Current GAAP measures used in the mining industry, such as cost of goods sold, do not capture all the expenditures incurred to discover, develop and sustain silver and gold production. Cash Cost, After By-product Credits, per Ounce and AISC, After By-product Credits, per Ounce also allow us to benchmark the performance of each of our mines versus those of our competitors. As a silver and gold mining company, we also use these statistics on an aggregate basis - aggregating the Greens Creek and Lucky Friday mines to compare our performance with that of other silver mining companies, and aggregating Casa Berardi and Nevada Operations for comparison with other 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 mine also includes reclamation and sustaining capital costs. AISC, Before By-product Credits for our consolidated silver properties also includes corporate costs for general and administrative expense and sustaining capital costs. By-product credits include revenues earned from all metals other than the primary metal produced at each unit. As depicted in the tables below, by-product credits comprise an essential element of our silver unit cost structure, distinguishing our silver operations due to the polymetallic nature of their orebodies. In addition to the uses described above, Cash Cost, After By-product Credits, per Ounce and AISC, After By-product Credits, per Ounce provide management and investors an indication of operating cash flow, after consideration of the average price, received from production. We also use these measurements for the comparative monitoring of performance of our mining operations period-to-period from a cash flow perspective. The Casa Berardi and Nevada Operations and combined gold properties information below reports Cash Cost, After By-product Credits, per Gold Ounce and AISC, After By-product Credits, per Gold Ounce for the production of gold, their primary product, and by-product revenues earned from silver, which is a by-product at Casa Berardi and Nevada Operations. Only costs and ounces produced relating to units with the same primary product are combined to represent Cash Cost, After By-product Credits, per Ounce and AISC, After By-product Credits, per Ounce. Thus, the gold produced at our Casa Berardi and Nevada Operations units 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 units is not included as a by-product credit when calculating the gold metrics for Casa Berardi and Nevada Operations. In thousands (except per ounce amounts) Three Months Ended June 30, 2023 Three Months Ended March 31, 2023 Six Months Ended June 30, 2023 Six Months Ended June 30, 2022 (5) Greens Creek Lucky Friday Keno Hill (6) Corporate (2) Total Silver Greens Creek Lucky Friday Corporate (2) Total Silver Greens Creek Lucky Friday Keno Hill (6) Corporate (2) Total Silver Greens Creek Lucky Friday(2) Corporate and other(3) Total Silver Total cost of sales $63,054 $32,190 $1,581 $— $96,825 $66,288 $34,534 $— $100,822 $129,342 $66,724 $1,581 $— 197,647 $110,143 $59,613 $— $169,756 Depreciation, depletion and amortization (13,078 ) (8,979 ) (261 ) — (22,318 ) (14,464 ) (10,456 ) — (24,920 ) (27,542 ) (19,435 ) (261 ) — (47,238 ) (25,049 ) (16,894 ) — (41,943 ) Treatment costs 10,376 4,187 113 — 14,676 10,369 5,276 — 15,645 20,745 9,464 113 — 30,322 17,892 8,480 — 26,372 Change in product inventory (1,242 ) 1,546 — — 304 (1,614 ) (2,409 ) — (4,023 ) (2,856 ) (863 ) — — (3,719 ) 5,436 (402 ) — 5,034 Reclamation and other costs 263 (250 ) — — 13 (129 ) (408 ) — (537 ) 134 (658 ) — — (524 ) — Exclusion of Keno Hill cash costs — — (1,433 ) — (1,433 ) — — - - (1,433 ) — (1,433 ) (1,872 ) (619 ) — (2,491 ) Cash Cost, Before By-product Credits (1) 59,373 28,694 — — 88,067 60,450 26,537 — 86,987 119,823 55,232 — — 175,055 106,550 50,178 — 156,728 Reclamation and other costs 722 285 — — 1,007 722 285 — 1,007 1,444 570 — — 2,014 1,410 564 — 1,974 Sustaining capital 8,714 9,081 — 688 18,483 6,641 7,784 — 14,425 15,355 16,865 — 594 32,814 20,624 13,671 147 34,442 General and administrative — — — 10,783 10,783 — — 12,070 12,070 — — — 22,853 22,853 — — 17,986 17,986 AISC, Before By-product Credits (1) 68,809 38,060 — 11,471 118,340 67,813 34,606 12,070 114,489 136,622 72,667 — 23,447 232,736 128,584 64,413 18,133 211,130 By-product credits: Zinc (20,923 ) (5,448 ) — — (26,371 ) (24,005 ) (6,816 ) — (30,821 ) (44,928 ) (12,264 ) — — (57,192 ) (61,479 ) (14,204 ) — (75,683 ) Gold (28,458 ) — — — (28,458 ) (25,286 ) — — (25,286 ) (53,744 ) - — — (53,744 ) (38,947 ) — — (38,947 ) Lead (6,860 ) (14,287 ) — — (21,147 ) (7,942 ) (14,299 ) — (22,241 ) (14,802 ) (28,586 ) — — (43,388 ) (16,237 ) (26,379 ) — (42,616 ) Total By-product credits (56,241 ) (19,735 ) — — (75,976 ) (57,233 ) (21,115 ) — (78,348 ) (113,474 ) (40,850 ) — — (154,324 ) (116,663 ) (40,583 ) — (157,246 ) Cash Cost, After By-product Credits $3,132 $8,959 $— $— $12,091 $3,217 $5,422 $— $8,639 $6,349 $14,382 $— $— $20,731 $(10,113 ) $9,595 $— $(518 ) AISC, After By-product Credits $12,568 $18,325 $— $11,471 $42,364 $10,580 $13,491 $12,070 $36,141 $23,148 $31,817 $— $23,447 $78,412 $11,921 $23,830 $18,133 $53,884 Divided by ounces produced 2,356 1,287 3,642 2,773 1,262 4,035 5,129 2,549 7,678 4,840 2,114 6,954 Cash Cost, Before By-product Credits, per Silver Ounce $25.20 $22.30 $24.18 $21.80 $21.03 $21.56 $23.36 $21.67 $22.80 $22.01 $23.74 $22.54 By-product credits per ounce (23.87 ) (15.34 ) (20.86 ) (20.64 ) (16.73 ) (19.42 ) (22.13 ) (16.03 ) (20.10 ) (24.10 ) (19.20 ) (22.61 ) Cash Cost, After By-product Credits, per Silver Ounce $1.33 $6.96 $3.32 $1.16 $4.30 $2.14 $1.23 $5.64 $2.70 $(2.09 ) $4.54 $(0.07 ) AISC, Before By-product Credits, per Silver Ounce $29.21 $29.58 $32.49 $24.46 $27.42 $28.38 $26.64 $28.51 $30.31 $26.57 $30.47 $30.36 By-product credits per ounce (23.87 ) (15.34 ) (20.86 ) (20.64 ) (16.73 ) (19.42 ) (22.13 ) (16.03 ) (20.10 ) (24.10 ) (19.20 ) (22.61 ) AISC, After By-product Credits, per Silver Ounce $5.34 $14.24 $11.63 $3.83 $10.69 $8.96 $4.51 $12.48 $10.21 $2.47 $11.27 $7.75 In thousands (except per ounce amounts) Three Months Ended June 30, 2023 Three Months Ended March 31, 2023 Six Months Ended June 30, 2023 Six Months Ended June 30, 2022 (5) Casa Berardi Nevada Operations and Other (4) Total Gold Casa Berardi Nevada Operations and Other (4) Total Gold Casa Berardi Nevada Operations and Other (4) Total Gold Casa Berardi Total Gold Total cost of sales $ 42,576 $ 1,071 $ 43,647 $ 62,998 $ 732 $ 63,730 $ 105,574 $ 1,803 $ 107,377 $ 124,038 $ 124,038 Depreciation, depletion and amortization (10,272 ) (127 ) (10,399 ) (14,036 ) (47 ) (14,083 ) (24,308 ) (174 ) (24,482 ) (31,305 ) (31,305 ) Treatment costs 351 — 351 467 — 467 818 — 818 915 915 Change in product inventory (951 ) — (951 ) (2,417 ) — (2,417 ) (3,368 ) — (3,368 ) (1,356 ) (1,356 ) Reclamation and other costs (219 ) — (219 ) (217 ) — (217 ) (436 ) — (436 ) (419 ) (419 ) Exclusion of Casa Berardi cash costs (3) — — — (2,851 ) — (2,851 ) (2,851 ) — (2,851 ) — — Exclusion of Nevada and Other costs — (944 ) (944 ) — (685 ) (685 ) — (1,629 ) (1,629 ) — — Cash Cost, Before By-product Credits (1) 31,485 — 31,485 43,944 — 43,944 75,429 — 75,429 91,873 91,873 Reclamation and other costs 219 — 219 217 — 217 436 — 436 419 419 Sustaining capital 9,025 — 9,025 15,015 — 15,015 24,041 — 24,041 14,878 14,878 AISC, Before By-product Credits (1) 40,729 — 40,729 59,176 — 59,176 99,906 — 99,906 107,170 107,170 By-product credits: Silver (144 ) (144 ) (127 ) — (127 ) (271 ) — (271 ) (354 ) (354 ) Total By-product credits (144 ) — (144 ) (127 ) — (127 ) (271 ) — (271 ) (354 ) (354 ) Cash Cost, After By-product Credits $ 31,341 $ — $ 31,341 $ 43,817 $ — $ 43,817 $ 75,158 $ — $ 75,158 $ 91,519 $ 91,519 AISC, After By-product Credits $ 40,585 $ — $ 40,585 $ 59,049 $ — $ 59,049 $ 99,635 $ — $ 99,635 $ 106,816 $ 106,816 Divided by gold ounces produced 19 — 19 25 — 25 44 — 44 64 64 Cash Cost, Before By-product Credits, per Gold Ounce $ 1,666 $ — $ 1,666 $ 1,780 $ — $ 1,780 $ 1,731 $ — $ 1,731 $ 1,446 $ 1,446 By-product credits per ounce (8 ) — (8 ) (5 ) — (5 ) (6 ) — (6 ) (6 ) (6 ) Cash Cost, After By-product Credits, per Gold Ounce $ 1,658 $ — $ 1,658 $ 1,775 $ — $ 1,775 $ 1,725 $ — $ 1,725 $ 1,440 $ 1,440 AISC, Before By-product Credits, per Gold Ounce $ 2,155 $ — $ 2,155 $ 2,397 $ — $ 2,397 $ 2,292 $ — $ 2,292 $ 1,686 $ 1,686 By-product credits per ounce (8 ) — (8 ) (5 ) — (5 ) (6 ) — (6 ) (6 ) (6 ) AISC, After By-product Credits, per Gold Ounce $ 2,147 $ — $ 2,147 $ 2,392 $ — $ 2,392 $ 2,286 $ — $ 2,286 $ 1,680 $ 1,680 In thousands (except per ounce amounts) Three Months Ended June 30, 2023 Three Months Ended March 31, 2023 Six Months Ended June 30, 2023 Six Months Ended June 30, 2022 (5) Total Silver Total Gold Total Total Silver Total Gold Total Total Silver Total Gold Total Total Silver Total Gold Total Total cost of sales $ 96,825 $ 43,647 $ 140,472 $ 100,822 $ 63,730 $ 164,552 $ 197,647 $ 107,377 $ 305,024 $ 169,756 $ 124,038 $ 293,794 Depreciation, depletion and amortization (22,318 ) (10,399 ) (32,717 ) (24,920 ) (14,083 ) (39,003 ) (47,238 ) (24,482 ) (71,720 ) (41,943 ) (31,305 ) (73,248 ) Treatment costs 14,676 351 15,027 15,645 467 16,112 30,322 818 31,140 26,372 915 27,287 Change in product inventory 304 (951 ) (647 ) (4,023 ) (2,417 ) (6,440 ) (3,719 ) (3,368 ) (7,087 ) 5,034 (1,356 ) 3,678 Reclamation and other costs 13 (219 ) (206 ) (537 ) (217 ) (754 ) (524 ) (436 ) (960 ) (2,491 ) (419 ) (2,910 ) Exclusion of Keno Hill cash costs (1,433 ) — (1,433 ) — — — (1,433 ) — (1,433 ) — — — Exclusion of Casa Berardi cash costs (3) — — — — (2,851 ) (2,851 ) — (2,851 ) (2,851 ) — — — Exclusion of Nevada and Other — (944 ) (944 ) — (685 ) (685 ) — (1,629 ) (1,629 ) — — — Cash Cost, Before By-product Credits (1) 88,067 31,485 119,552 86,987 43,944 130,931 175,055 75,429 250,484 156,728 91,873 248,601 Reclamation and other costs 1,007 219 1,226 1,007 217 1,224 2,014 436 2,450 1,974 419 2,393 Sustaining capital 18,483 9,025 27,508 14,425 15,015 29,440 32,814 24,041 56,855 34,442 14,878 49,320 General and administrative 10,783 — 10,783 12,070 — 12,070 22,853 — 22,853 17,986 — 17,986 AISC, Before By-product Credits (1) 118,340 40,729 159,069 114,489 59,176 173,665 232,736 99,906 332,642 211,130 107,170 318,300 By-product credits: Zinc (26,371 ) — (26,371 ) (30,821 ) — (30,821 ) (57,192 ) — (57,192 ) (75,683 ) — (75,683 ) Gold (28,458 ) — (28,458 ) (25,286 ) — (25,286 ) (53,744 ) — (53,744 ) (38,947 ) — (38,947 ) Lead (21,147 ) — (21,147 ) (22,241 ) — (22,241 ) (43,388 ) — (43,388 ) (42,616 ) — (42,616 ) Silver — (144 ) (144 ) — (127 ) (127 ) — (271 ) (271 ) — (354 ) (354 ) Total By-product credits (75,976 ) (144 ) (76,120 ) (78,348 ) (127 ) (78,475 ) (154,324 ) (271 ) (154,595 ) (157,246 ) (354 ) (157,600 ) Cash Cost, After By-product Credits $ 12,091 $ 31,341 $ 43,432 $ 8,639 $ 43,817 $ 52,456 $ 20,731 $ 75,158 $ 95,889 $ (518 ) $ 91,519 $ 91,001 AISC, After By-product Credits $ 42,364 $ 40,585 $ 82,949 $ 36,141 $ 59,049 $ 95,190 $ 78,412 $ 99,635 $ 178,047 $ 53,884 $ 106,816 $ 160,700 Divided by ounces produced 3,642 19 4,035 25 7,678 44 6,954 64 Cash Cost, Before By-product Credits, per Ounce $ 24.18 $ 1,666 $ 21.56 $ 1,780 $ 22.80 $ 1,731 $ 22.54 $ 1,446 By-product credits per ounce (20.86 ) (8 ) (19.42 ) (5 ) (20.10 ) (6 ) (22.61 ) (6 ) Cash Cost, After By-product Credits, per Ounce $ 3.32 $ 1,658 $ 2.14 $ 1,775 $ 2.70 $ 1,725 $ (0.07 ) $ 1,440 AISC, Before By-product Credits, per Ounce $ 32.49 $ 2,155 $ 28.38 $ 2,397 $ 30.31 $ 2,292 $ 30.36 $ 1,686 By-product credits per ounce (20.86 ) (8 ) (19.42 ) (5 ) (20.10 ) (6 ) (22.61 ) (6 ) AISC, After By-product Credits, per Ounce $ 11.63 2,147 $ 8.96 2,392 $ 10.21 2,286 $ 7.75 1,680 In thousands (except per ounce amounts) Three Months Ended December 31, 2022 (5) Three Months Ended September 30, 2022 (5) Three Months Ended June 30, 2022 (5) Greens Creek Lucky Friday Corporate (2) Total Silver Greens Creek Lucky Friday Corporate (2) Total Silver Greens Creek Lucky Friday Corporate (2) Total Silver Total cost of sales $ 70,074 $ 32,819 $ — $ 102,893 $ 52,502 $ 24,164 $ — $ 76,666 $ 60,506 $ 30,348 $ — $ 90,854 Depreciation, depletion and amortization (13,557 ) (9,549 ) — (23,106 ) (10,305 ) (7,261 ) — (17,566 ) (13,629 ) (8,862 ) — (22,491 ) Treatment costs 10,467 5,334 — 15,801 9,477 4,791 — 14,268 8,778 4,803 — 13,581 Change in product inventory (4,014 ) (571 ) — (4,585 ) 4,464 3,022 — 7,486 (1,102 ) 503 — (599 ) Reclamation and other costs 499 (265 ) — 234 (118 ) (152 ) — (270 ) (1,005 ) (256 ) — (1,261 ) Cash Cost, Before By-product Credits (1) 63,469 27,768 — 91,237 56,020 24,564 — 80,584 53,548 26,536 — 80,084 Reclamation and other costs 706 282 — 988 705 282 — 987 705 282 — 987 Sustaining capital 9,862 8,369 — 18,231 10,219 11,264 187 21,670 14,668 8,110 99 22,877 General and administrative — — 14,395 14,395 — — 11,003 11,003 — — 9,692 9,692 AISC, Before By-product Credits (1) 74,037 36,419 14,395 124,851 66,944 36,110 11,190 114,244 68,921 34,928 9,791 113,640 By-product credits: Zinc (26,112 ) (6,249 ) — (32,361 ) (26,244 ) (7,155 ) — (33,399 ) (32,828 ) (8,227 ) — (41,055 ) Gold (19,630 ) — — (19,630 ) (17,019 ) — — (17,019 ) (20,364 ) — — (20,364 ) Lead (7,351 ) (14,392 ) — (21,743 ) (6,212 ) (11,796 ) — (18,008 ) (8,271 ) (14,543 ) — (22,814 ) Total By-product credits (53,093 ) (20,641 ) — (73,734 ) (49,475 ) (18,951 ) — (68,426 ) (61,463 ) (22,770 ) — (84,233 ) Cash Cost, After By-product Credits $ 10,376 $ 7,127 $ — $ 17,503 $ 6,545 $ 5,613 $ — $ 12,158 $ (7,915 ) $ 3,766 $ — $ (4,149 ) AISC, After By-product Credits $ 20,944 $ 15,778 $ 14,395 $ 51,117 $ 17,469 $ 17,159 $ 11,190 $ 45,818 $ 7,458 $ 12,158 $ 9,791 $ 29,407 Divided by ounces produced 2,433 1,224 3,657 2,469 1,075 3,544 2,410 1,226 3,636 Cash Cost, Before By-product Credits, per Silver Ounce $ 26.08 $ 22.68 $ 24.95 $ 22.69 $ 22.87 $ 22.74 $ 22.21 $ 21.65 $ 22.03 By-product credits per ounce (21.82 ) (16.86 ) (20.16 ) (20.04 ) (17.64 ) (19.31 ) (25.50 ) (18.58 ) (23.17 ) Cash Cost, After By-product Credits, per Silver Ounce $ 4.26 $ 5.82 $ 4.79 $ 2.65 $ 5.23 $ 3.43 $ (3.29 ) $ 3.07 $ (1.14 ) AISC, Before By-product Credits, per Silver Ounce $ 30.43 $ 29.74 $ 34.14 $ 27.11 $ 33.62 $ 32.24 $ 28.60 $ 28.49 $ 31.25 By-product credits per ounce (21.82 ) (16.86 ) (20.16 ) (20.04 ) (17.64 ) (19.31 ) (25.50 ) (18.58 ) (23.17 ) AISC, After By-product Credits, per Silver Ounce $ 8.61 $ 12.88 $ 13.98 $ 7.07 $ 15.98 $ 12.93 $ 3.10 $ 9.91 $ 8.08 In thousands (except per ounce amounts) Three Months Ended December 31, 2022 (5) Three Months Ended September 30, 2022 (5) Three Months Ended June 30, 2022 (5) Casa Berardi Total Gold Casa Berardi Total Gold Casa Berardi Total Gold Total cost of sales $ 65,328 $ 65,328 $ 59,532 $ 59,532 $ 61,870 $ 61,870 Depreciation, depletion and amortization (14,568 ) (14,568 ) (15,089 ) (15,089 ) (15,459 ) (15,459 ) Treatment costs 521 521 429 429 457 457 Change in product inventory 1,122 1,122 420 420 (793 ) (793 ) Reclamation and other costs (196 ) (196 ) (203 ) (203 ) (209 ) (209 ) Cash Cost, Before By-product Credits (1) 52,207 52,207 45,089 45,089 45,866 45,866 Reclamation and other costs 196 196 204 204 209 209 Sustaining capital 11,438 11,438 10,457 10,457 7,597 7,597 AISC, Before By-product Credits (1) 63,841 63,841 55,750 55,750 53,672 53,672 By-product credits: Silver (124 ) (124 ) (131 ) (131 ) (188 ) (188 ) Total By-product credits (124 ) (124 ) (131 ) (131 ) (188 ) (188 ) Cash Cost, After By-product Credits $ 52,083 $ 52,083 $ 44,958 $ 44,958 $ 45,678 $ 45,678 AISC, After By-product Credits $ 63,717 $ 63,717 $ 55,619 $ 55,619 $ 53,484 $ 53,484 Divided by gold ounces produced 31 31 33 33 33 33 Cash Cost, Before By-product Credits, per Gold Ounce $ 1,700 $ 1,700 $ 1,353 $ 1,353 $ 1,377 $ 1,377 By-product credits per ounce (4 ) (4 ) (4 ) (4 ) (6 ) (6 ) Cash Cost, After By-product Credits, per Gold Ounce $ 1,696 $ 1,696 $ 1,349 $ 1,349 $ 1,371 $ 1,371 AISC, Before By-product Credits, per Gold Ounce $ 2,079 $ 2,079 $ 1,673 $ 1,673 $ 1,611 $ 1,611 By-product credits per ounce (4 ) (4 ) (4 ) (4 ) (6 ) (6 ) AISC, After By-product Credits, per Gold Ounce $ 2,075 $ 2,075 $ 1,669 $ 1,669 $ 1,605 $ 1,605 In thousands (except per ounce amounts) Three Months Ended December 31, 2022 (5) Three Months Ended September 30, 2022 (5) Three Months Ended June 30, 2022 (5) 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 $ 90,854 $ 61,870 $ 152,724 Depreciation, depletion and amortization (23,106 ) (14,568 ) (37,674 ) (17,566 ) (15,089 ) (32,655 ) (22,491 ) (15,459 ) (37,950 ) Treatment costs 15,801 521 16,322 14,268 429 14,697 13,581 457 14,038 Change in product inventory (4,585 ) 1,122 (3,463 ) 7,486 420 7,906 (599 ) (793 ) (1,392 ) Reclamation and other costs 234 (196 ) 38 (270 ) (203 ) (473 ) (1,261 ) (209 ) (1,470 ) Cash Cost, Before By-product Credits (1) 91,237 52,207 143,444 80,584 45,089 125,673 80,084 45,866 125,950 Reclamation and other costs 988 196 1,184 987 204 1,191 987 209 1,196 Sustaining capital 18,231 11,438 29,669 21,670 10,457 32,127 22,877 7,597 30,474 General and administrative 14,395 — 14,395 11,003 11,003 9,692 — 9,692 AISC, Before By-product Credits (1) 124,851 63,841 188,692 114,244 55,750 169,994 113,640 53,672 167,312 By-product credits: Zinc (32,361 ) — (32,361 ) (33,399 ) — (33,399 ) (41,055 ) — (41,055 ) Gold (19,630 ) — (19,630 ) (17,019 ) — (17,019 ) (20,364 ) — (20,364 ) Lead (21,743 ) — (21,743 ) (18,008 ) — (18,008 ) (22,814 ) — (22,814 ) Silver — (124 ) (124 ) (131 ) (131 ) (188 ) (188 ) Total By-product credits (73,734 ) (124 ) (73,858 ) (68,426 ) (131 ) (68,557 ) (84,233 ) (188 ) (84,421 ) Cash Cost, After By-product Credits $ 17,503 $ 52,083 $ 69,586 $ 12,158 $ 44,958 $ 57,116 $ (4,149 ) $ 45,678 $ 41,529 AISC, After By-product Credits $ 51,117 $ 63,717 $ 114,834 $ 45,818 $ 55,619 $ 101,437 $ 29,407 $ 53,484 $ 82,891 Divided by ounces produced 3,657 31 3,544 33 3,636 33 Cash Cost, Before By-product Credits, per Ounce $ 24.95 $ 1,700 $ 22.74 1,353 $ 22.03 $ 1,377 By-product credits per ounce (20.16 ) (4 ) (19.31 ) (4 ) (23.17 ) (6 ) Cash Cost, After By-product Credits, per Ounce $ 4.79 $ 1,696 $ 3.43 $ 1,349 $ (1.14 ) $ 1,371 AISC, Before By-product Credits, per Ounce $ 34.14 $ 2,079 $ 32.24 $ 1,673 $ 31.25 $ 1,611 By-product credits per ounce (20.16 ) (4 ) (19.31 ) (4 ) (23.17 ) (6 ) AISC, After By-product Credits, per Ounce $ 13.98 $ 2,075 $ 12.93 $ 1,669 $ 8.08 $ 1,605 (1) Includes all direct and indirect operating costs related to the physical activities of producing metals, including mining, processing and other plant costs, third-party refining and marketing expense, on-site general and administrative costs and royalties, before by-product revenues earned from all metals other than the primary metal produced at each operation. AISC, Before By-product Credits also includes reclamation and sustaining capital costs. (2) AISC, Before By-product Credits for our consolidated silver properties includes corporate costs for general and administrative expense, and sustaining capital. (3) During the three months ended March 31, 2023, the Company completed the necessary studies to conclude usage of the F-160 pit as a tailings storage facility after mining is complete. As a result, a portion of the mining costs have been excluded from Cash Cost, Before By-product Credits and AISC, Before By-product Credits. (4) Other includes $354,000 and $786,000 of total cost of sales for the three and six months ended June 30, 2023, respectively, related to the environmental services business acquired as part of the Alexco acquisition. (5) Prior year presentation has been adjusted to conform with current year presentation to eliminate exploration costs from the calculation of AISC, Before By-product Credits as exploration is an activity directed at the Corporate level to find new mineral reserve and resource deposits, and therefore we believe it is inappropriate to include exploration costs in the calculation of AISC, Before By-product Credits for a specific mining operation. (6) Keno Hill is in the ramp-up phase of production and as such costs associated with ramp up at this operation which amounted to $9.4 million and $15.3 million for the three and six months ended June 30, 2023 are excluded from the calculation of total cost of sales, Cash Cost, Before By-product Credits, Cash Cost, After By-product Credits, AISC, Before By-product Credits, and AISC, After By-product Credits. (7) Casa Berardi operations were suspended in June 2023 in response to the directive of the Quebec Ministry of Natural Resources and Forests. Suspension costs amounted to $2.2 million for the three and six month periods ended June 30, 2023 and are excluded from the calculation of total cost of sales, Cash Cost, Before By-product Credits, Cash Cost, After By-product Credits, AISC, Before By-product Credits, and AISC, After By-product Credits. 2023 Guidance, Previous and Current Estimates: Reconciliation of Cost of Sales to Non-GAAP Measures In thousands (except per ounce amounts) Previous Estimate for Twelve Months Ended December 31, 2023 Greens Creek Lucky Friday Keno Hill Corporate(3) Total Silver Casa Berardi Total Gold Total cost of sales $ 245,000 $ 128,000 $ 40,000 $ — $ 413,000 $ 220,000 $ 220,000 Depreciation, depletion and amortization (46,000 ) (37,900 ) (6,800 ) — (90,700 ) (52,800 ) (52,800 ) Treatment costs 43,700 15,375 5,150 — 64,225 300 300 Change in product inventory (5,100 ) (750 ) 1,000 — (4,850 ) (1,300 ) (1,300 ) Reclamation and other costs 1,000 1,000 750 — 2,750 500 500 Cash Cost, Before By-product Credits (1) 238,600 105,725 40,100 — 384,425 166,700 166,700 Reclamation and other costs 2,800 1,100 — — 3,900 800 800 Exploration 5,900 — 2,600 2,250 10,750 5,400 5,400 Sustaining capital 48,500 30,200 550 — 79,250 52,200 52,200 General and administrative — — — 44,000 44,000 — — AISC, Before By-product Credits (1) 295,800 137,025 43,250 46,250 522,325 225,100 225,100 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 ) — — Silver — — — — — (600 ) (600 ) Total By-product credits (238,400 ) (94,600 ) (6,900 ) — (339,900 ) (600 ) (600 ) Cash Cost, After By-product Credits $ 200 $ 11,125 $ 33,200 $ — $ 44,525 $ 166,100 $ 166,100 AISC, After By-product Credits $ 57,400 $ 42,425 $ 36,350 $ 46,250 $ 182,425 $ 224,500 $ 224,500 Divided by silver ounces produced 9,250 4,750 2,750 16,750 112.5 112.5 Cash Cost, Before By-product Credits, per Silver Ounce $ 25.79 $ 22.26 $ 14.58 $ 22.95 $ 1,482 $ 1,482 By-product credits per silver ounce (25.77 ) (19.92 ) (2.51 ) (20.29 ) (5 ) (5 ) Cash Cost, After By-product Credits, per Silver Ounce $ 0.02 $ 2.34 $ 12.07 $ 2.66 $ 1,477 $ 1,477 AISC, Before By-product Credits, per Silver Ounce $ 31.98 $ 28.85 $ 15.73 $ 31.18 $ 2,001 $ 2,001 By-product credits per silver ounce (25.77 ) (19.92 ) (2.51 ) (20.29 ) (5 ) (5 ) AISC, After By-product Credits, per Silver Ounce $ 6.21 $ 8.93 $ 13.22 $ 10.89 $ 1,996 $ 1,996 In thousands (except per ounce amounts) Current Estimate for Twelve Months Ended December 31, 2023 Greens Creek Lucky Friday Keno Hill Corporate(2) Total Silver Casa Berardi Total Gold Total cost of sales $ 245,000 $ 130,600 $ 40,000 $ — $ 415,600 $ 215,000 $ 215,000 Depreciation, depletion and amortization (46,000 ) (38,500 ) (6,800 ) — (91,300 ) (52,800 ) (52,800 ) Treatment costs 43,700 18,900 5,150 — 67,750 300 300 Change in product inventory (5,100 ) (2,500 ) 1,000 — (6,600 ) (1,300 ) (1,300 ) Reclamation and other costs 1,000 500 750 — 2,250 500 500 Cash Cost, Before By-product Credits (1) 238,600 109,000 40,100 — 387,700 161,700 161,700 Reclamation and other costs 2,800 1,100 — — 3,900 800 800 Sustaining capital 44,350 35,600 550 — 80,500 37,900 37,900 General and administrative — — — 44,000 44,000 — — AISC, Before By-product Credits (1) 285,750 145,700 40,650 44,000 516,100 200,400 200,400 By-product credits: Zinc (92,700 ) (26,300 ) (1,800 ) — (120,800 ) — — Gold (110,000 ) — — — (110,000 ) — — Lead (32,800 ) (62,100 ) (3,200 ) — (98,100 ) — — Silver — — — — — (600 ) (600 ) Total By-product credits (235,500 ) (88,400 ) (5,000 ) — (328,900 ) (600 ) (600 ) Cash Cost, After By-product Credits $ 3,100 $ 20,600 $ 35,100 $ — $ 58,800 $ 161,100 $ 161,100 AISC, After By-product Credits $ 50,250 $ 57,300 $ 35,650 $ 44,000 $ 187,200 $ 199,800 $ 199,800 Divided by silver ounces produced 9,250 4,750 2,750 16,750 90.0 90.0 Cash Cost, Before By-product Credits, per Silver Ounce $ 25.79 $ 22.95 $ 14.58 $ 23.15 $ 1,797 $ 1,797 By-product credits per silver ounce (25.46 ) (18.61 ) (1.82 ) (19.64 ) (7 ) (7 ) Cash Cost, After By-product Credits, per Silver Ounce $ 0.34 $ 4.34 $ 12.76 $ 3.51 $ 1,790 $ 1,790 AISC, Before By-product Credits, per Silver Ounce $ 30.89 $ 30.67 $ 14.78 $ 30.81 $ 2,227 $ 2,227 By-product credits per silver ounce (25.46 ) (18.61 ) (1.82 ) (19.64 ) (7 ) (7 ) AISC, After By-product Credits, per Silver Ounce $ 5.43 $ 12.06 $ 12.96 $ 11.18 $ 2,220 $ 2,220 (1) Includes all direct and indirect operating costs related to the physical activities of producing metals, including mining, processing and other plant costs, third-party refining and marketing expense, on-site general and administrative costs and royalties, before by-product revenues earned from all metals other than the primary metal produced at each operation. AISC, Before By-product Credits also includes reclamation and sustaining capital costs. (2) AISC, Before By-product Credits for our consolidated silver properties includes corporate costs for general and administrative expense, and sustaining capital. 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, fair value adjustments, net, interest and other income, provisions for environmental matters, stock-based compensation, provisional price gains and losses, monetization of zinc hedges and 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 2Q-2023 1Q-2023 4Q-2022 3Q-2022 2Q-2022 LTM June 30, 2023 FY 2022 Net loss $ (15,694 ) $ (3,171 ) $ (4,452 ) $ (23,526 ) $ (13,523 ) $ (46,843 ) $ (37,348 ) Interest expense 10,311 10,165 11,008 10,874 10,505 42,358 42,793 Income and mining taxes 5,162 3,242 (3,924 ) (9,527 ) 254 (5,047 ) (7,566 ) Depreciation, depletion and amortization 34,718 39,892 37,576 32,992 38,072 145,178 143,938 Ramp-up and suspension costs 16,323 11,336 7,575 5,092 5,242 40,326 24,114 (Gain) loss on disposition of properties, plants, equipment, and mineral interests (75 ) — — 19 5 (56 ) 16 Foreign exchange loss (gain) 3,850 (108 ) 900 (5,667 ) (4,482 ) (1,025 ) (7,211 ) Fair value adjustments, net 2,558 (3,181 ) (9,985 ) 4,241 16,428 (6,368 ) 4,788 Provisional price (gains) losses (2,143 ) (2,093 ) (625 ) 6,625 15,807 1,764 20,839 Provision for closed operations and environmental matters 3,111 1,044 3,741 1,781 1,628 9,677 8,793 Stock-based compensation 1,498 1,190 1,714 1,773 1,254 6,175 6,012 Adjustments of inventory to net realizable value 2,997 4,521 487 1,405 754 9,410 2,646 Monetization of zinc hedges 5,467 (579 ) 16,664 — — 21,552 16,664 Other (343 ) (355 ) 1,582 473 (1,470 ) 1,357 (986 ) Adjusted EBITDA $ 67,739 $ 61,903 $ 62,261 $ 26,555 $ 70,474 $ 218,458 $ 217,492 Total debt $ 571,030 $ 527,225 Less: Cash and cash equivalents 106,786 104,743 Net debt $ 464,244 $ 422,482 Net debt/LTM adjusted EBITDA (non-GAAP) 2.1 1.9 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 2Q-2023 1Q-2023 4Q-2022 3Q-2022 2Q-2022 YTD-2023 YTD-2022 Net loss applicable to common stockholders $ (15,832 ) $ (3,309 ) $ (4,590 ) $ (23,664 ) $ (13,661 ) $ (19,143 ) $ (9,646 ) Adjusted for items below: Fair value adjustments, net 2,558 (3,181 ) (9,985 ) 4,241 16,428 $ (624 ) 10,532 Provisional pricing (gains) losses (2,143 ) (2,093 ) (625 ) 6,625 15,807 $ (4,236 ) 14,839 Environmental accruals 1,989 — 2,860 — — $ 1,989 14 Foreign exchange loss (gain) 3,850 (108 ) 900 (5,667 ) (4,482 ) $ 3,742 (2,444 ) Ramp-up and suspension costs 16,323 11,336 7,575 5,092 5,242 $ 27,659 11,447 (Gain) loss on disposition of properties, plants, equipment and mineral interests (75 ) — — 19 5 $ (75 ) (3 ) Adjustments of inventory to net realizable value 2,997 4,521 487 1,405 754 $ 7,518 754 Monetization of zinc hedges 5,467 (579 ) 16,664 — — $ 4,888 — Other — — 939 — — $ — — Adjusted income (loss) applicable to common stockholders $ 15,133 $ 6,587 $ 14,225 $ (11,949 ) $ 20,093 $ 21,720 $ 25,493 Weighted average shares - basic 604,088 600,075 596,959 554,531 539,401 602,077 538,943 Weighted average shares - diluted 604,088 600,075 596,959 554,531 539,401 602,077 539,401 Basic adjusted net income (loss) per common stock (in cents) 0.03 0.01 0.02 (0.02 ) 0.04 0.04 0.05 Diluted adjusted net income (loss) per common stock (in cents) 0.03 0.01 0.02 (0.02 ) 0.04 0.04 0.05 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 June 30, Six Months Ended June 30, 2023 2022 2023 2022 Cash provided by operating activities $ 23,777 $ 40,183 $ 64,380 $ 78,092 Less: Additions to properties, plants equipment and mineral interests $ (51,468 ) $ (34,329 ) $ (105,911 ) $ (55,807 ) Free cash flow $ (27,691 ) $ 5,854 $ (41,531 ) $ 22,285 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, and Casa Berardi operating segments excludes exploration and pre-development expense, as it is a discretionary expenditure and not a component of the mines’ operating performance. Dollars are in thousands Total Silver Operations Six Months Ended June 30, Years Ended December 31, 2023 2022 2021 2020 Cash provided by operating activities $ 787,521 $ 151,673 $ 188,434 $ 271,309 $ 176,105 Exploration $ 12,719 $ 2,208 $ 5,920 $ 4,591 $ - Less: Additions to properties, plants equipment and mineral interests $ (233,629 ) $ (46,510 ) $ (87,890 ) $ (53,768 ) $ (45,461 ) Free cash flow $ 566,611 $ 107,371 $ 106,464 $ 222,132 $ 130,644 TABLE A Assay Results – Q2 2023 Greens Creek (Alaska) Zone Drillhole Number Drillhole Azm/Dip Sample From (feet) Sample To (feet) Est. True Width (feet) Silver (oz/ton) Gold (oz/ton) Zinc (%) Lead (%) Depth From Mine Portal (feet) 9A GC6023 207/21 239.8 250.2 10.1 10.7 0.04 8.8 6.5 -19 200 South GC5854 243/-31 110.0 112.0 0.7 0.9 0.00 11.1 4.5 -1357 200 South GC5872 239/-89 1173.0 1188.0 15.0 10.6 0.09 0.2 0.1 -2477 200 South GC5891 157/-64 103.4 106.8 3.3 15.2 0.02 19.5 7.5 -1399 200 South GC5891 157/-64 715.0 725.0 8.1 17.0 0.19 3.3 1.9 -1950 200 South GC5891 157/-64 753.5 755.0 1.2 4.1 0.01 14.7 8.9 -1950 200 South GC5913 305/49 418.0 422.0 2.2 0.9 0.24 4.9 1.7 -1449 East Zone GC5926 74/21 573.5 577.0 2.4 8.1 0.08 1.0 0.5 860 East Zone GC5926 74/21 585.2 590.0 3.2 14.8 0.14 4.5 2.0 860 East Zone GC5937 63/-28 322.0 328.0 5.7 12.6 0.05 7.7 3.5 402 East Zone GC6027 49/47 145.0 151.8 3.6 20.9 0.04 3.4 2.2 10 East Zone GC6027 49/47 158.0 163.0 2.7 13.9 0.02 2.7 1.7 10 Gallagher Zone GC5931 63/-60 200.0 202.0 1.8 6.9 0.24 2.0 1.0 -926 Gallagher Zone GC5931 63/-60 211.0 260.5 45.3 7.9 0.22 10.5 4.8 -976 Gallagher Zone GC5931 63/-60 377.0 389.5 12.5 3.7 0.12 8.8 3.8 -1089 Gallagher Zone GC5931 63/-60 463.0 464.0 0.9 2.8 0.02 9.1 5.9 -1154 Gallagher Zone GC5931 63/-60 480.5 486.0 4.9 6.4 0.06 4.4 2.0 -1173 Gallagher Zone GC5945 75/-59 208.0 213.5 5.2 10.6 0.15 1.9 1.2 -992 Gallagher Zone GC5945 75/-59 235.0 237.0 1.9 27.0 0.19 5.4 3.4 -992 Gallagher Zone GC5945 75/-59 244.0 266.0 13.7 7.8 0.17 7.1 4.2 -1067 Gallagher Zone GC5957 67/-81 210.3 212.3 2.0 7.4 0.04 3.9 2.1 -957 Gallagher Zone GC5971 74/-51 427.0 432.0 4.4 9.5 0.21 7.0 3.3 -1088 Gallagher Zone GC5971 74/-51 469.3 484.2 14.9 9.0 0.07 2.6 1.3 -1127 Gallagher Zone GC5974 76/-39 268.8 298.0 22.4 3.6 0.07 6.0 2.6 -920 Gallagher Zone GC5985 63/-21 78.5 92.0 9.0 15.0 0.28 2.6 1.3 -752 Gallagher Zone GC5985 63/-21 212.0 242.0 24.9 3.9 0.09 8.4 3.5 -804 Gallagher Zone GC5985 63/-21 306.5 322.0 15.3 3.9 0.03 6.8 3.8 -835 Gallagher Zone GC5988 63/-36 75.0 80.3 5.0 26.1 0.08 4.7 2.4 -769 Gallagher Zone GC5988 63/-36 89.5 115.7 25.7 9.8 0.19 10.8 2.9 -786 Gallagher Zone GC5988 63/-36 202.0 222.7 20.6 4.8 0.11 5.5 2.6 -847 Gallagher Zone GC5988 63/-36 289.0 291.0 2.0 9.7 0.03 8.3 5.3 -897 Gallagher Zone GC5989 63/-59 57.0 61.5 4.3 7.3 0.10 7.7 4.0 -776 Gallagher Zone GC5989 63/-59 86.5 119.0 32.4 3.4 0.10 7.4 3.4 -812 Gallagher Zone GC5990 63/-87 53.0 62.0 9.0 4.1 0.06 9.7 3.9 -784 Gallagher Zone GC5993 73/-23 70.0 75.0 3.5 7.5 0.11 17.6 9.3 -758 Gallagher Zone GC5993 73/-23 150.5 250.5 74.0 4.7 0.13 6.9 2.6 -819 Gallagher Zone GC5993 73/-23 320.0 329.0 8.6 4.7 0.04 11.3 9.1 -876 Gallagher Zone GC5999 63/-49 57.5 67.0 9.5 2.8 0.06 8.1 4.2 -771 Gallagher Zone GC5999 63/-49 100.5 113.5 13.0 3.0 0.13 9.5 3.0 -806 Gallagher Zone GC6001 60/-29 95.7 233.0 111.1 4.2 0.13 9.2 3.9 -802 Gallagher Zone GC6003 63/-11 111.0 115.0 2.9 14.2 0.18 3.5 1.6 -832 Gallagher Zone GC6003 63/-11 450.0 452.0 1.9 20.0 0.08 0.5 0.3 -1197 Gallagher Zone GC6003 63/-11 455.0 458.0 2.4 14.5 0.03 0.7 0.3 -1177 Gallagher Zone GC6007 243/25 86.5 94.0 5.1 16.9 0.57 5.9 2.7 -668 Gallagher Zone GC6007 243/25 141.0 158.2 12.2 5.2 0.07 4.4 2.0 -649 Gallagher Zone GC6008 244/52 35.0 45.5 7.9 3.5 0.06 4.9 2.3 -669 Gallagher Zone GC6014 257/-84 43.0 51.4 8.3 5.0 0.06 4.7 2.6 -741 Gallagher Zone GC6014 257/-84 496.5 543.5 41.3 21.6 0.07 0.6 0.4 -1239 Gallagher Zone GC6014 257/-84 556.5 559.0 2.2 20.5 0.13 3.0 1.6 -1239 Gallagher Zone GC6021 57/-45 13.3 18.5 5.2 2.4 0.04 10.7 5.1 -735 Gallagher Zone GC6021 57/-45 124.0 132.0 4.6 7.2 0.08 3.6 1.8 -812 Gallagher Zone GC6021 57/-45 192.0 195.0 2.8 0.3 0.39 0.0 0.0 -859 Gallagher Zone GC6022 63/-11 17.8 33.4 12.4 12.5 0.21 9.5 4.6 -722 Gallagher Zone GC6022 63/-11 60.8 73.0 10.0 7.5 0.08 5.5 2.2 -730 Gallagher Zone GC6022 63/-11 160.0 190.0 26.9 4.1 0.10 3.9 1.8 -750 Upper Plate GC6004 313/77 500.5 502.2 1.7 24.3 0.00 1.1 0.6 306 Upper Plate GC6020 282/63 590.5 597.5 7.0 10.8 0.06 14.1 6.0 344 Upper Plate GC6025 27/47 750.4 752.6 2.1 26.1 0.26 16.6 6.6 372 Upper Plate GC6036 40/73 490.0 503.5 13.5 17.0 0.07 6.4 3.2 304 Upper Plate GC6036 40/73 526.5 529.0 2.5 13.6 0.03 13.4 4.1 336 Upper Plate GC6039 47/68 485.5 500.5 13.4 15.2 0.04 1.1 0.5 328 Upper Plate GC6039 47/68 534.0 537.5 3.4 21.2 0.02 18.0 6.5 288 Upper Plate GC6041 61/67 476.2 491.0 13.2 23.0 0.05 6.2 3.1 278 Upper Plate GC6041 61/67 512.5 515.3 2.8 13.6 0.02 23.4 6.9 302 Upper Plate GC6044 59/73 467.0 468.5 1.5 4.2 0.00 14.8 8.0 275 Upper Plate GC6044 59/73 478.8 489.0 10.1 12.2 0.06 5.2 2.7 295 Upper Plate GC6044 59/73 508.5 509.5 1.0 19.5 0.02 7.7 2.6 315 Upper Plate GC6048 75/67 461.0 462.0 1.0 25.7 0.02 14.8 2.1 251 Upper Plate GC6050 88/64 432.0 434.5 2.3 16.3 0.01 13.0 7.3 219 Upper Plate GC6054 100/71 499.0 502.0 2.9 0.3 2.35 0.2 0.2 295 Upper Plate GC5979 14/74 492.0 510.0 18.0 20.7 0.06 1.7 0.7 319 Upper Plate GC5979 14/74 545.0 549.5 4.3 33.3 0.03 13.8 5.4 263 Upper Plate GC6004 313/77 500.5 502.2 1.7 24.3 0.00 1.1 0.6 306 Upper Plate GC6025 27/47 750.4 752.6 2.1 26.1 0.26 16.6 6.6 372 West Definition GC5933 73/-19 169.0 194.0 23.3 4.5 0.21 5.9 0.9 -534 West Definition GC5933 73/-19 283.5 289.0 4.8 2.1 0.05 17.3 1.7 -570 West Definition GC5933 73/-19 500.3 502.0 1.6 9.5 0.01 3.2 1.4 -651 West Definition GC5933 73/-19 538.3 539.3 1.0 10.3 0.05 15.2 3.9 -669 West Definition GC5934 63/-43 321.5 322.5 1.0 14.5 0.03 3.7 1.7 332 West Definition GC5934 63/-43 327.5 328.5 1.0 8.3 0.04 2.6 1.2 332 West Definition GC5939 72/-14 176.5 202.5 21.9 4.7 0.23 10.2 1.9 -528 West Definition GC5939 72/-14 296.5 297.5 0.9 5.2 0.04 12.6 1.9 -565 West Definition GC5939 72/-14 527.0 530.5 3.3 7.9 0.03 6.4 2.9 -621 West Definition GC5940 45/-58 314.0 318.0 3.8 41.2 0.46 5.2 2.5 305 West Definition GC5944 49/-49 320.5 332.5 12.0 10.1 0.05 1.9 0.9 308 West Definition GC5947 34/-49 314.0 316.0 2.0 9.9 0.03 1.5 0.6 311 West Definition GC5948 72/-10 581.9 593.0 10.2 5.8 0.04 12.7 3.2 -590 West Definition GC5950 75/-47 327.5 340.0 12.2 8.8 0.05 3.5 1.9 304 West Definition GC5952 73/-40 309.0 312.0 3.0 5.4 0.02 5.4 2.6 345 West Definition GC5952 73/-40 334.7 355.0 17.6 5.9 0.01 3.4 2.1 318 West Definition GC5954 92/-56 342.0 344.0 1.9 38.2 0.20 4.3 0.8 -746 West Definition GC5954 92/-56 358.5 361.0 2.4 62.8 0.34 1.0 0.4 -741 West Definition GC5956 67/-11 558.0 563.0 4.8 10.5 0.04 11.5 3.6 -582 West Definition GC5956 67/-11 578.5 580.0 1.4 20.2 0.09 19.2 7.4 -587 West Definition GC5958 84/-42 343.0 355.0 11.4 6.6 0.09 2.4 1.4 285 West Definition GC5958 84/-42 360.0 372.0 11.4 14.0 0.08 7.6 5.1 267 West Definition GC5964 67/-20 168.0 182.0 11.2 6.3 0.15 8.9 1.5 -536 West Definition GC5964 67/-20 271.8 275.1 3.2 2.4 0.07 19.8 1.0 -571 West Definition GC5973 62/-15 537.0 542.0 4.2 4.4 0.09 17.7 4.9 -609 West Definition GC5973 62/-15 554.5 558.5 3.4 7.8 0.03 14.4 5.6 -613 West Definition GC5976 61/-22 162.0 179.0 15.8 4.4 0.22 6.7 0.8 -531 West Definition GC5976 61/-22 496.6 505.2 8.3 13.0 0.11 14.4 3.4 -635 West Definition GC5980 61/-27 477.5 486.0 8.1 7.7 0.04 8.0 3.3 -670 West Definition GC5982 56/-14 546.0 557.5 9.4 9.2 0.06 31.6 10.8 -579 West Definition GC5986 54/-28 455.9 461.8 5.7 10.3 0.05 16.4 2.5 -676 West Definition GC5987 57/-10 558.5 559.5 0.7 9.5 0.02 9.0 3.2 -544 West Definition GC5992 53/-34 443.2 449.4 6.2 2.9 0.03 14.3 2.3 -718 West Definition GC6000 50/-21 536.0 554.0 15.2 63.4 0.84 11.9 3.8 -641 West Definition GC6005 71/-7 606.5 620.0 11.6 7.4 0.04 12.3 2.6 -530 West Definition GC6009 47/-30 478.2 489.0 10.0 4.6 0.13 6.9 1.6 -704 West Definition GC6013 71/-2 613.2 621.6 7.4 23.9 0.04 8.9 3.6 -519 West Definition GC6019 54/-7 541.0 544.0 2.7 7.0 0.06 14.7 4.0 -543 West Definition GC6019 54/-7 548.5 549.5 0.9 12.2 0.06 5.6 2.8 -543 West Definition GC6019 54/-7 554.0 555.0 0.9 7.6 0.08 3.3 1.3 -543 West Definition GC6028 54/-11 515.8 519.0 3.1 22.3 0.29 8.8 3.3 -585 West Definition GC6032 55/-2 545.9 551.9 5.5 16.7 0.20 7.3 2.5 -517 West Definition GC6040 60/-5 545.0 546.5 1.3 18.6 0.04 10.1 5.4 -528 West Definition GC6042 65/-23 468.4 470.5 2.1 5.6 0.03 18.7 4.5 -678 West Definition GC6049 85/-12 563.0 571.1 6.0 2.2 0.02 19.0 2.8 -565 West Definition GC6055 65/-18 501.5 506.0 3.3 3.0 0.04 26.7 4.6 -603 West Definition GC6056 52/2 322.0 324.5 1.8 3.6 0.13 11.3 0.1 -451 West Definition GC6058 52/6 658.1 665.3 5.4 7.5 0.07 7.7 1.4 -391 West Definition GC6062 51/-13 495.5 501.0 5.1 4.6 0.05 20.6 4.6 -606 Keno Hill (Yukon) Zone Drillhole Number Drillhole Azm/Dip Sample From (feet) Sample To (feet) True Width (feet) Silver (oz/ton) Gold (oz/ton) Lead (%) Zinc (%) Depth From Surface (feet) Flame and Moth FMUG22-030 276/-10 164.7 167.6 2.6 4.9 0.01 1.5 0.3 368 Flame and Moth FMUG22-030 276/-10 193.4 197.1 3.4 16.5 0.00 2.5 0.5 372 Flame and Moth FMUG22-030 276/-10 209.3 220.1 10.4 9.7 0.01 2.6 1.7 374 Flame and Moth FMUG22-030 276/-10 227.4 228.1 0.8 34.4 0.00 2.0 3.3 377 Flame and Moth FMUG22-031 268/-16 200.0 207.8 5.9 16.0 0.00 0.9 0.2 398 Flame and Moth FMUG22-031 268/-16 216.2 222.3 5.2 4.1 0.00 1.6 0.4 400 Flame and Moth FMUG22-031 268/-16 230.6 231.7 0.9 7.4 0.00 1.6 0.6 404 Flame and Moth FMUG22-032 262/12 271.8 286.3 8.2 1.8 0.01 0.7 0.2 277 Flame and Moth FMUG22-032 262/12 293.8 305.1 8.8 9.6 0.00 1.1 1.3 270 Flame and Moth FMUG22-034 262/-6 191.9 193.2 0.7 1.2 0.00 1.9 0.1 360 Flame and Moth FMUG22-034 262/-6 206.0 207.2 0.6 6.3 0.01 0.1 0.2 361 Flame and Moth FMUG22-034 262/-6 230.9 253.3 16.5 1.7 0.00 0.5 0.3 365 Flame and Moth FMUG22-036 262/-25 202.9 207.0 2.6 8.4 0.00 0.9 0.2 429 Flame and Moth FMUG22-036 262/-25 215.9 241.6 21.3 5.9 0.00 2.5 0.5 440 Flame and Moth FMUG22-037 256/-2 255.1 257.7 1.1 2.7 0.00 0.6 0.2 346 Flame and Moth FMUG22-039 252/-6 276.2 276.9 0.4 4.1 0.00 0.9 0.8 366 Flame and Moth FMUG22-039 252/-6 292.7 295.3 1.5 15.3 0.00 0.7 2.6 367 Flame and Moth FMUG22-039 252/-6 301.8 303.3 0.8 11.9 0.00 0.1 0.3 368 Bermingham BMUG23-037 140/4 227.0 239.9 12.2 3.1 0.00 0.6 0.6 359 Bermingham BMUG23-037 140/4 259.6 262.5 2.8 2.2 0.00 0.1 1.1 357 Bermingham BMUG23-037 140/4 285.1 289.3 4.0 2.0 0.00 0.0 0.3 353 Bermingham BMUG23-037 140/4 425.2 426.2 0.5 10.6 0.00 0.1 0.3 339 Bermingham BMUG23-037 140/4 435.9 443.7 5.2 12.3 0.01 1.7 0.6 337 Bermingham BMUG23-038 140/-8 240.5 241.1 0.6 7.7 0.00 0.6 0.2 408 Bermingham BMUG23-038 140/-8 362.2 362.9 0.4 3.8 0.00 1.5 0.8 419 Bermingham BMUG23-038 140/-8 478.8 480.8 1.2 16.1 0.00 0.5 2.5 397 Bermingham BMUG23-038 140/-8 520.0 521.2 0.7 3.1 0.00 0.5 0.5 433 Bermingham BMUG23-039 137/-1 227.6 230.6 2.7 19.7 0.00 0.1 2.0 378 Bermingham BMUG23-039 137/-1 447.8 452.8 3.5 4.9 0.00 0.5 0.2 373 Bermingham BMUG23-040 134/-4 236.9 238.2 1.2 1.4 0.00 1.3 0.0 358 Bermingham BMUG23-040 134/-4 246.1 248.3 2.0 8.6 0.00 0.1 1.0 357 Bermingham BMUG23-040 134/-4 295.3 295.7 0.4 30.0 0.00 4.6 0.3 352 Bermingham BMUG23-040 134 / -4 406.1 414.8 4.2 1.6 0.00 0.5 1.0 326 Bermingham BMUG23-041 131 / 7 215.1 226.6 11.2 3.5 0.00 0.4 0.4 342 Bermingham BMUG23-041 131 / 7 245.2 246.1 0.8 23.6 0.00 1.9 0.2 339 Bermingham BMUG23-041 131 / 7 354.3 354.7 0.2 5.4 0.00 0.7 2.0 319 Bermingham BMUG23-042 131 / 1 226.4 233.4 6.6 1.2 0.00 0.5 0.2 373 Bermingham BMUG23-042 131 / 1 423.6 425.0 0.7 2.9 0.00 0.8 3.5 363 Bermingham BMUG23-043 128/4 220.7 221.8 1.1 4.6 0.00 1.6 0.2 359 Bermingham BMUG23-043 128/4 236.2 239.3 2.9 1.5 0.00 0.1 0.5 358 Bermingham BMUG23-043 128/4 319.9 320.8 0.8 18.2 0.00 16.3 0.1 350 Bermingham BMUG23-043 128/4 403.0 406.0 1.7 0.1 0.00 0.1 0.0 340 Bermingham BMUG23-044 120/7 219.1 226.6 7.1 1.8 0.00 0.1 0.1 349 Bermingham BMUG23-044 120/7 232.7 235.7 2.8 120.9 0.01 1.5 3.3 346 Bermingham BMUG23-045 116/1 246.1 255.9 8.9 6.3 0.00 0.6 0.2 379 Bermingham BMUG23-046 105/12 243.6 244.1 0.4 86.2 0.01 4.4 4.4 322 Bermingham BMUG23-046 105/12 357.9 359.4 1.0 1.6 0.00 0.6 0.5 295 Bermingham BMUG23-047 97/13 169.7 173.3 2.2 2.1 0.00 0.1 0.4 337 Bermingham BMUG23-047 97/13 291.3 300.6 5.7 18.4 0.00 0.9 1.1 312 Bermingham BMUG23-047 97/13 310.5 311.2 0.5 2.0 0.00 0.7 0.5 307 Bermingham BMUG23-047 97/13 367.2 370.5 1.7 1.9 0.00 0.8 1.2 292 Bermingham BMUG23-048 134/-18 268.2 278.3 7.5 4.2 0.00 0.3 2.1 463 Bermingham BMUG23-049 128/-7 228.4 232.9 4.1 41.7 0.00 1.9 2.9 402 Bermingham BMUG23-050 119/-6 224.4 233.6 8.3 21.3 0.00 1.7 2.5 400 Bermingham BMUG23-050 119/-6 225.1 226.4 1.2 87.9 0.01 7.9 8.7 400 Bermingham BMUG23-050 119/-6 276.0 278.1 1.5 18.2 0.00 0.7 1.1 403 Bermingham BMUG23-050 119/-6 290.4 295.1 3.5 13.3 0.00 3.2 3.6 404 Bermingham BMUG23-051 119/-9 228.0 243.8 14.1 9.7 0.00 0.7 0.8 419 Bermingham BMUG23-051 119/-9 228.0 233.4 4.8 22.1 0.00 1.6 1.4 419 Bermingham BMUG23-051 119/-9 343.7 345.0 1.2 48.5 0.00 2.1 3.5 433 Bermingham BMUG23-051 119/-9 458.2 470.6 11.2 2.8 0.00 0.8 0.5 447 Bermingham BMUG23-051 119/-9 482.1 490.0 7.1 1.0 0.00 0.2 0.4 450 Bermingham BMUG23-052 120/-19 244.5 255.0 7.8 47.5 0.00 0.8 0.2 457 Bermingham BMUG23-052 120/-19 244.5 245.0 0.4 40.3 0.00 2.1 0.1 457 Bermingham BMUG23-052 120/-19 254.1 255.0 0.7 531.9 0.02 8.0 0.2 461 Bermingham BMUG23-052 120/-19 266.2 267.7 1.1 6.3 0.00 3.6 0.0 465 Bermingham BMUG23-052 120/-19 276.6 283.9 5.5 22.6 0.00 0.5 1.8 470 Bermingham BMUG23-052 120/-19 536.0 565.0 21.8 2.5 0.01 0.4 0.2 555 Bermingham BMUG23-052 120/-19 538.5 544.9 4.8 5.0 0.02 0.9 0.1 555 Bermingham BMUG23-052 120/-19 573.4 590.6 11.1 44.9 0.01 1.7 0.8 569 Bermingham BMUG23-052 120/-19 576.9 586.5 6.1 79.4 0.02 3.0 1.3 569 Bermingham Main Vein K-23-0838 270/-55 1071.0 1080.9 9.2 0.5 0.00 0.1 0.3 780 Bermingham Townsite Vein K-23-0839 281/-66 1299.9 1312.1 9.2 25.5 0.00 0.9 0.3 1139 Bermingham Townsite Vein Including 1309.8 1312.1 1.7 108.2 0.01 4.5 1.0 1142 View source version on businesswire.com: https://www.businesswire.com/news/home/20230808153211/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.com Website: http://www.hecla.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 Second Quarter 2023 Results By: Hecla Mining Company via Business Wire August 08, 2023 at 23:06 PM EDT Strong silver free cash flow generation affirming silver guidance Hecla Mining Company (NYSE:HL) today announced second quarter 2023 financial and operating results. SECOND QUARTER HIGHLIGHTS Operational Produced 3.8 million ounces of silver, 7.9 million ounces in the first half of the year; third highest silver production over a six-month period in Company history. Restarted the mill at Keno Hill, producing 184,264 ounces of silver, with full production expected by year-end. Lucky Friday's silver production of 1.3 million ounces was the highest since the first quarter of 2000. Silver production and cost guidance affirmed; gold production guidance adjusted based on reduced underground mining and wildfires-related suspension of operations at Casa Berardi. Financial Sales of $178.1 million, with 45% from silver and 35% from gold. Consolidated silver total cost of sales of $96.8 million and cash cost and AISC per silver ounce (each after by-product credits) of $3.32 and $11.63, respectively.3,4 Consolidated cash flow from operations of $23.8 million for the quarter, and year to date $64.4 million; with silver operations generating $62.2 million in cash flow from operations for the quarter and year to date $151.7 million. Silver operations generated $38.8 million in free cash flow for the quarter, and year to date $107.4 million.2 Since 2020, silver operations have generated cash flow from operations of $788 million and free cash flow of $566 million. Net loss applicable to common stockholders of $(15.8) million or $(0.03) per share and adjusted net income of $15.1 million or $0.03 per share.5 Strong balance sheet with $106.8 million in cash and cash equivalents, and available liquidity of $219 million. Environmental, Social, Governance Strong safety performance with an all-injury frequency rate of 1.18, the lowest in Company history. Strategic Acquired ATAC Resources on July 7th for $18.8 million in Hecla stock, adding a massive land package of over 700 square miles comprised of the Rackla and Connaught properties in the Yukon. "Our silver operations reported another solid quarter of operational and financial performance with strong free cash flow generation and our lowest all-injury frequency rate in our history," said Phillips S. Baker Jr., President and CEO. "Greens Creek continued its strong and consistent performance, Lucky Friday produced the most silver in a quarter since 2000, and with the service hoist now operational, this mine is closer to achieving 425,000 ore tons in annual throughput by year-end, and we restarted the Keno Hill mill during the quarter." Baker continued, "Our silver mines have generated $107 million in free cash flow in the first half of the year and in excess of $560 million since 2020. With this free cash flow, we are investing to extend the mine lives and increase the production of our mines making Hecla the fastest growing established silver producer with 17 million ounces of production expected this year and about 20 million ounces by 2025, all in the U.S. and Canada." Baker concluded, “Silver is an essential metal in powering the transition to a green economy, particularly photovoltaics, whose rapid growth is now using 15 to 20% of global annual silver production. Hecla, with our growing, long-lived, low-cost mines, is well positioned to reliably provide the silver the world needs." 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 2Q-2023 1Q-2023 4Q-2022 3Q-2022 2Q-2022 YTD-2023 YTD-2022 FINANCIAL AND PRODUCTION SUMMARY Sales $ 178,131 $ 199,500 $ 194,825 $ 146,339 $ 191,242 $ 377,631 $ 377,741 Total cost of sales $ 140,472 $ 164,552 $ 169,807 $ 137,892 $ 153,979 $ 305,024 $ 295,049 Gross profit $ 37,659 $ 34,948 $ 25,018 $ 8,447 $ 37,263 $ 72,607 $ 82,692 Net(loss) applicable to common stockholders $ (15,832 ) $ (3,311 ) $ (4,590 ) $ (23,664 ) $ (13,661 ) $ (19,143 ) $ (9,646 ) Basic (loss) per common share (in dollars) $ (0.03 ) $ (0.01 ) $ (0.01 ) $ (0.04 ) $ (0.03 ) $ (0.03 ) $ (0.02 ) Adjusted EBITDA1 $ 67,739 $ 61,903 $ 62,261 $ 26,555 $ 70,474 $ 129,642 $ 128,676 Net Debt to Adjusted EBITDA1 2.1 1.9 Cash provided by operating activities $ 23,777 $ 40,603 $ 36,120 $ (24,322 ) $ 40,183 $ 64,380 $ 78,092 Capital Expenditures $ (51,468 ) $ (54,443 ) $ (56,140 ) $ (37,430 ) $ (34,329 ) $ (105,911 ) $ (55,807 ) Free Cash Flow2 $ (27,691 ) $ (13,840 ) $ (20,020 ) $ (61,752 ) $ 5,854 $ (41,531 ) $ 22,285 Silver ounces produced 3,832,559 4,040,969 3,663,433 3,549,392 3,645,454 7,873,528 6,970,162 Silver payable ounces sold 3,360,694 3,604,494 3,756,701 2,479,724 3,387,909 6,965,188 6,075,170 Gold ounces produced 35,251 39,717 43,634 44,747 45,719 74,822 87,361 Gold payable ounces sold 31,961 39,619 40,097 40,443 44,225 71,580 85,278 Cash Costs and AISC, each after by-product credits Silver cash costs per ounce 3 $ 3.32 $ 2.14 $ 4.79 $ 3.43 $ (1.14 ) $ 2.70 $ (0.07 ) Silver AISC per ounce 4 $ 11.63 $ 8.96 $ 13.98 $ 12.93 $ 8.08 $ 10.21 $ 7.75 Gold cash costs per ounce 3 $ 1,658 $ 1,775 $ 1,696 $ 1,349 $ 1,371 $ 1,725 $ 1,440 Gold AISC per ounce 4 $ 2,147 $ 2,392 $ 2,075 $ 1,669 $ 1,605 $ 2,286 $ 1,680 Realized Prices Silver, $/ounce $ 23.67 $ 22.62 $ 22.03 $ 18.30 $ 20.68 $ 23.12 $ 22.45 Gold, $/ounce $ 1,969 $ 1,902 $ 1,757 $ 1,713 $ 1,855 $ 1,928 $ 1,867 Lead, $/pound $ 0.99 $ 1.02 $ 1.05 $ 0.95 $ 0.97 $ 1.00 $ 1.02 Zinc, $/pound $ 1.13 $ 1.39 $ 1.24 $ 1.23 $ 1.44 $ 1.26 $ 1.61 Sales in the second quarter declined by 11% to $178.1 million from the first quarter of 2023 ("prior quarter") due to lower quantities of all metals sold and lower realized lead and zinc prices, partially offset by higher precious metals prices. Gross profit increased to $37.7 million, an increase of 8% over the prior quarter, as lower total cost of sales attributable to lower quantities of metals sold offset lower sales. Net loss applicable to common stockholders was $(15.8) million in the second quarter due to: Increased ramp-up and suspension costs of $5.0 million, reflecting the impact of the suspension of operations at Casa Berardi in June due to wildfires in Quebec and the start-up of Keno Hill. Increased provision for closed operations and environmental matters of $2.1 million reflecting adjustments to the reclamation costs at the legacy Johnny M and Durita properties. An unrealized loss on investments of $5.6 million compared to a gain of $2.2 million, reflecting changes in the fair value of our marketable securities portfolio. A foreign exchange loss of $3.9 million compared to a gain of $0.1 million, reflecting the impact of the appreciation of the Canadian dollar on our monetary assets and liabilities. Increased income and mining tax expense of $1.9 million, reflecting increased taxable income from our U.S. assets. The above items were partly offset by: Lower adjustments of inventory to net realizable value of $1.5 million at our Casa Berardi and Nevada operations. Lower depreciation, depletion, and amortization expense of $6.3 million, reflecting the impact of the suspension of operations in June at Casa Berardi and lower silver sales. Consolidated silver’s total cost of sales in the second quarter decreased by 4% to $96.8 million from the prior quarter, primarily due to lower concentrate tons sold, partially offset by higher production costs at Lucky Friday. Cash costs and AISC per silver ounce, each after by-product credits, were $3.32 and $11.63, respectively.3,4 The increase in cash costs per ounce was due to higher production costs at Lucky Friday, lower consolidated silver production, and lower base metal by-product credits attributable to lower realized prices partially offset by higher Greens Creek gold production and realized price. AISC was further impacted by higher planned sustaining capital spending at the silver operations.3,4 Consolidated total gold cost of sales decreased by 32% to $43.6 million in the second quarter due to lower production costs attributable to the June wildfires-related suspension at Casa Berardi. Cash costs and AISC per gold ounce, each after by-product credits, were $1,658 and $2,147, respectively.3,4 The decrease in cash costs per ounce was attributable to lower production costs partially offset by lower gold production at Casa Berardi, with AISC also impacted by lower sustaining capital spend. Adjusted EBITDA for the second quarter increased by 9% to $67.7 million compared to the prior quarter due to higher gross profit, lower general and administrative expenses, and monetization of zinc hedges. During the quarter, average zinc prices declined to $1.15/lb., the lowest since April 2020 and a 19% decrease over the prior quarter. The Company monetized its zinc hedge contracts for proceeds of $7.6 million during the quarter. The ratio of net debt to Adjusted EBITDA increased to 2.1 for the second quarter due primarily to the wildfires-related suspension at the Casa Berardi mine. With Keno Hill's ongoing ramp-up to full production, and Casa Berardi resuming production, the Company expects net debt to Adjusted EBITDA ratio to decline to less than the Company's target of 2.1 Cash and cash equivalents at the end of the second quarter were $106.8 million and included $31 million drawn on the revolving credit facility. Available liquidity was $219 million as of the end of the quarter. Cash provided by operating activities was $23.8 million and decreased by $16.8 million over the prior quarter primarily due to unfavorable working capital changes partially attributable to the increase in product inventory at the Lucky Friday and Keno Hill as it commenced production during the quarter, and payment of 2022 incentive compensation. Capital expenditures were $51.5 million (net of finance leases of $15.2 million) in the second quarter, compared to $54.4 million in the prior quarter (net of finance leases of $0.9 million). Capital spend at Casa Berardi was for purchases of open pit equipment for approximately $11.9 million (partially financed by leases of $6.6 million) as the mine begins the transition from underground and open pit production to all production from surface operations. The increase in Greens Creek's capital spend was related to the timing of equipment purchases and seasonal surface projects, with the increase in Lucky Friday's capital spend also impacted by the timing of equipment purchases and the service hoist and coarse ore bunker projects. Keno Hill's capital spend was $3.5 million (net of finance leases of $6.7 million) and declined over the prior quarter as the mine began ramp-up to full production during the quarter. Free cash flow for the quarter was negative $27.7 million, compared to negative $13.8 million in the prior quarter. The decrease in free cash flow was attributable to lower cash flow from operations attributable to unfavorable working capital changes during the quarter.2 Forward Sales Contracts for Base Metals and Foreign Currency The Company uses financially settled forward sales contracts to manage exposures to zinc and lead price changes in forecasted concentrate shipments. On June 30, 2023, the Company had contracts covering approximately 39% of the forecasted payable lead production from 2023 - 2025 at an average price of $0.99 per pound. The Company also manages CAD exposure through forward contracts. At June 30, 2023, the Company had hedged approximately 48% of forecasted Casa Berardi CAD direct production costs through 2026 at an average CAD/USD rate of 1.32. The Company has also hedged approximately 22% of Casa Berardi capital costs through 2026 at 1.35. At Keno Hill, 54% of the total planned spend for 2023 and 2024 is hedged at an average CAD/USD rate of 1.36. OPERATIONS OVERVIEW Greens Creek Mine - Alaska Dollars are in thousands except cost per ton 2Q-2023 1Q-2023 4Q-2022 3Q-2022 2Q-2022 YTD-2023 YTD-2022 GREENS CREEK Tons of ore processed 232,465 233,167 230,225 229,975 209,558 465,632 421,245 Total production cost per ton $ 194.94 $ 198.60 $ 211.29 $ 185.34 $ 197.84 $ 196.77 $ 194.98 Ore grade milled - Silver (oz./ton) 12.8 14.4 13.1 13.6 14.0 13.6 13.9 Ore grade milled - Gold (oz./ton) 0.10 0.08 0.08 0.07 0.08 0.09 0.08 Ore grade milled - Lead (%) 2.5 2.6 2.6 2.4 3.0 2.6 2.9 Ore grade milled - Zinc (%) 6.5 6.0 6.7 6.3 7.2 6.2 6.9 Silver produced (oz.) 2,355,674 2,772,859 2,433,275 2,468,280 2,410,598 5,128,533 4,840,380 Gold produced (oz.) 16,351 14,884 12,989 11,412 12,413 31,235 23,815 Lead produced (tons) 4,726 5,202 4,985 4,428 5,184 9,928 10,067 Zinc produced (tons) 13,255 12,482 13,842 12,580 13,396 25,737 25,890 Sales $ 95,891 $ 98,611 $ 95,374 $ 60,875 $ 92,723 $ 194,502 $ 178,813 Total cost of sales $ (63,054 ) $ (66,288 ) $ (70,075 ) $ (52,502 ) $ (60,506 ) $ (129,342 ) $ (110,143 ) Gross profit $ 32,837 $ 32,323 $ 25,299 $ 8,373 $ 32,217 $ 65,160 $ 68,670 Cash flow from operations $ 43,302 $ 43,346 $ 44,769 $ 7,749 $ 41,808 $ 86,648 $ 98,103 Exploration $ 1,760 $ 448 $ 1,050 $ 3,776 $ 929 $ 2,208 $ 1,094 Capital additions $ (8,828 ) $ (6,658 ) $ (12,150 ) $ (6,988 ) $ (14,668 ) $ (15,486 ) $ (17,760 ) Free cash flow 2 $ 36,234 $ 37,136 $ 33,669 $ 4,537 $ 28,069 $ 73,370 $ 81,437 Cash cost per ounce, after by-product credits 3 $ 1.33 $ 1.16 $ 4.26 $ 2.65 $ (3.29 ) $ 1.23 $ (2.09 ) AISC per ounce, after by-product credits 4 $ 5.34 $ 3.82 $ 8.61 $ 7.07 $ 3.10 $ 4.51 $ 2.47 Greens Creek produced 2.4 million ounces of silver in the second quarter, a decrease of 15% over the prior quarter due to expected lower mined grades. Gold production increased by 10% to 16,351 ounces due to higher grades; zinc and lead production was consistent with the prior quarter. Throughput for the quarter was 2,555 tons per day ("tpd"), and the mine remains on track to achieve an annual throughput of 2,600 tpd by year-end. Sales in the second quarter were $95.9 million, a decrease of 3% over the prior quarter due to lower realized prices for base metals, primarily zinc, and lower payable metals sold (except gold), partially offset by higher realized prices for silver and gold. Total cost of sales were $63.1 million, and decreased by 5% over the prior quarter due to lower sales volumes, and lower production costs attributable to lower fuel prices. Cash costs and AISC per silver ounce, each after by-product credits, were $1.33 and $5.34 and increased over the prior quarter as lower production costs were offset by lower base metal by-product credits (primarily zinc, due to lower prices) and lower silver production. Increased AISC per silver ounce was attributable to higher sustaining capital spend of $8.8 million due to timing of equipment purchases and surface projects.3,4 Cash flow from operations was $43.3 million, in line with the prior quarter. Capital spend was $8.8 million (all sustaining) during the quarter, an increase of $2.2 million over the prior quarter due to the timing of equipment purchases and seasonal construction projects. Free cash flow for the quarter was $36.2 million, a slight decrease over the prior quarter due to higher exploration and capital spend. The Greens Creek mine generated $73.4 million in free cash flow during the first half of 2023.2 Lucky Friday Mine - Idaho Dollars are in thousands except cost per ton 2Q-2023 1Q-2023 4Q-2022 3Q-2022 2Q-2022 YTD-2023 YTD-2022 LUCKY FRIDAY Tons of ore processed 94,043 95,303 90,935 90,749 97,497 189,346 175,222 Total production cost per ton $ 248.65 $ 210.72 $ 232.73 $ 207.10 $ 211.45 $ 229.56 $ 227.30 Ore grade milled - Silver (oz./ton) 14.3 13.8 14.0 12.5 13.2 14.1 12.7 Ore grade milled - Lead (%) 9.1 8.8 9.1 8.5 8.8 9.0 8.5 Ore grade milled - Zinc (%) 4.2 4.1 4.1 4.2 3.9 4.2 3.8 Silver produced (oz.) 1,286,666 1,262,464 1,224,199 1,074,230 1,226,477 2,549,130 2,114,335 Lead produced (tons) 8,180 8,034 7,934 7,172 8,147 16,214 14,127 Zinc produced (tons) 3,338 3,313 3,335 3,279 3,370 6,651 5,822 Sales $ 42,648 $ 49,110 $ 45,434 $ 28,460 $ 35,880 $ 91,758 $ 73,920 Total cost of sales $ (32,190 ) $ (34,534 ) $ (32,819 ) $ (24,166 ) $ (30,348 ) $ (66,724 ) $ (59,613 ) Gross profit $ 10,458 $ 14,576 $ 12,615 $ 4,294 $ 5,532 $ 25,034 $ 14,307 Cash flow from operations $ 18,893 $ 46,132 $ (7,437 ) $ 11,624 $ 21,861 $ 65,025 $ 33,626 Capital additions $ (16,317 ) $ (14,707 ) $ (13,714 ) $ (16,125 ) $ (11,501 ) $ (31,024 ) $ (21,153 ) Free cash flow 2 $ 2,576 $ 31,425 $ (21,151 ) $ (4,501 ) $ 10,360 $ 34,001 $ 12,473 Cash cost per ounce, after by-product credits 3 $ 6.96 $ 4.30 $ 5.82 $ 5.23 $ 3.07 $ 5.64 $ 4.54 AISC per ounce, after by-product credits 4 $ 14.24 $ 10.69 $ 12.88 $ 15.98 $ 9.91 $ 12.48 $ 11.27 Lucky Friday produced 1.3 million ounces of silver, an increase of 2% over the prior quarter due to higher grades partially offset by lower throughput due to the local utility's unplanned replacement of the main electrical transformer. Second quarter silver production was the highest since the first quarter of 2000, marking the fifth consecutive quarter of silver production exceeding one million ounces. Throughput for the quarter was 1,033 tpd and is expected to increase to an annual rate of 425,000 tons by year end. Sales in the second quarter were $42.6 million, a decrease of 13% over the prior quarter, attributable to a combination of lower payable metals sold and lower realized base metals prices, partially offset by higher realized silver prices. Lower payable metals sold was due to an increase in silver concentrate inventory (impact of approximately $3 million) as maintenance activities impacted a smelter’s ability to take delivery of certain shipments at quarter end, with the sales deferred to the third quarter. Total cost of sales were $32.2 million, a decrease of 7% over the prior quarter primarily due to lower concentrate volumes sold. Production costs at the mine increased over the prior quarter due to higher labor costs related to the new Collective Bargaining Agreement ("CBA") signed in the first quarter of 2023 (CBA related costs are expected to be $2.5 million for the year), and higher consumables costs partially offset by lower fuel costs. Cash costs and AISC per silver ounce, each after by-product credits, were $6.96 and $14.24 respectively, with the increase primarily attributable to higher production costs, lower zinc by-product credits due to lower realized prices, partially offset by higher silver production.3,4 AISC per silver ounce was further unfavorably impacted by higher sustaining capital spend reflecting accelerated project completion.3,4 Cash flow from operations was $18.9 million, a decrease of $27.2 million over the prior quarter. The decrease was attributable to lower sales, higher production costs, unfavorable working capital changes and the prior quarter's favorable impact of $6.7 million receipt related to payment for a silver concentrate shipment shipped in the fourth quarter of 2022. Capital expenditures for the quarter totaled $16.3 million (net of $2.0 million in finance leases), comprised of approximately $9.2 million each in sustaining and growth capital, which included the coarse ore bunker and the service hoist projects. The service hoist project was completed in early August, and the coarse ore bunker project which will decouple the mill from the mine, is expected to be completed in the fourth quarter. Free cash flow was $2.6 million, a decrease of $28.8 million over the prior quarter primarily due to the decrease in cash flow from operations and higher capital spend during the quarter.2 Lucky Friday generated $34.0 million in free cash flow during the first half of 2023.2 Casa Berardi - Quebec Dollars are in thousands except cost per ton 2Q-2023 1Q-2023 4Q-2022 3Q-2022 2Q-2022 YTD-2023 YTD-2022 CASA BERARDI Tons of ore processed - underground 94,124 110,245 160,150 162,215 176,576 204,369 338,185 Tons of ore processed - surface pit 224,580 318,909 250,883 227,726 225,042 543,489 449,586 Tons of ore processed - total 318,704 429,154 411,033 389,941 401,618 747,858 787,771 Surface tons mined - ore and waste 2,461,196 2,136,993 2,657,638 2,822,906 2,149,412 4,598,189 4,041,751 Total production cost per ton $ 97.69 $ 107.95 $ 125.75 $ 114.52 $ 113.07 $ 103.58 $ 115.46 Ore grade milled - Gold (oz./ton) - underground 0.14 0.13 0.15 0.15 0.19 0.13 0.17 Ore grade milled - Gold (oz./ton) - surface pit 0.04 0.05 0.05 0.06 0.05 0.05 0.05 Ore grade milled - Gold (oz./ton) - combined 0.07 0.07 0.09 0.10 0.10 0.07 0.09 Gold produced (oz.) - underground 10,226 11,788 20,365 22,181 22,866 22,014 42,240 Gold produced (oz.) - surface pit 8,675 12,898 10,344 11,154 10,440 21,573 21,306 Gold produced (oz.) - total 18,901 24,686 30,709 33,335 33,306 43,587 63,546 Silver produced (oz.) - total 5,956 5,645 5,960 6,882 8,379 11,601 15,447 Sales $ 36,946 $ 50,998 $ 53,458 $ 56,939 $ 62,639 $ 87,944 $ 124,740 Total cost of sales $ (42,576 ) $ (62,998 ) $ (65,328 ) $ (59,532 ) $ (61,870 ) $ (105,574 ) $ (124,038 ) Gross (loss) profit $ (5,630 ) $ (12,000 ) $ (11,870 ) $ (2,593 ) $ 769 $ (17,630 ) $ 702 Cash flow from operations $ (8,148 ) $ (684 ) $ 10,188 $ 8,721 $ 7,417 $ (8,832 ) $ 15,506 Exploration $ 1,107 $ 1,054 $ 1,637 $ 2,624 $ 1,341 $ 2,161 $ 3,976 Capital additions $ (20,816 ) $ (17,086 ) $ (12,995 ) $ (10,771 ) $ (8,093 ) $ (37,902 ) $ (15,901 ) Free cash flow 2 $ (27,857 ) $ (16,716 ) $ (1,170 ) $ 574 $ 665 $ (44,573 ) $ 3,581 Cash cost per ounce, after by-product credits 3 $ 1,658 $ 1,775 $ 1,696 $ 1,349 $ 1,371 $ 1,725 $ 1,440 AISC per ounce, after by-product credits 4 $ 2,147 $ 2,392 $ 2,075 $ 1,669 $ 1,605 $ 2,286 $ 1,680 Casa Berardi produced 18,901 ounces of gold in the second quarter, a decrease of 23% over the prior quarter, primarily due to lower tons mined and milled because of wildfires-related suspension in June. The mill operated at an average of 4,600 tpd during the first two months of the quarter. Lower production during the quarter led to lower sales of $36.9 million, a 28% decrease over the prior quarter, and lower total cost of sales of $42.6 million, 32% lower compared to the prior quarter. Cash costs and AISC per gold ounce, each after by-product credits, were $1,658 and $2,147 respectively and decreased over the prior quarter due to lower production costs which offset the decline in gold production. AISC was further favorably impacted by lower sustaining capital spend as capital allocated to growth increased during the quarter.3,4 Cash flow from operations was negative $8.1 million, a decrease of $7.5 million over the prior quarter due to lower sales partially offset by lower costs. Capital spend for the quarter was $20.8 million (net of finance leases of $6.6 million) with $9.0 million and $18.4 million in sustaining and growth capital spend, respectively. Growth capital spend included the increase in equipment fleet of $11.9 million for the open pit operations as the mine is beginning to transition from an underground/open pit operation to an open pit only operation. Free cash flow for the quarter was negative $27.9 million, compared to negative free cash flow in the prior quarter of $16.7 million due to lower cash flow from operations and higher capital spending.2 The Company announced in May 2023 that the Casa Berardi mine is beginning to transition from an underground/open pit operation to an open pit only operation. As part of that transition, the lower margin East Mine underground operations were closed in July. The better margin stopes at the underground West Mine are planned to be mined until mid-2024, at which time most underground activity will stop except exploration. To increase the productivity of the surface operations, the Company has begun insourcing with the purchase of $11.9 million of mobile mining equipment, and another $4 million is expected to be spent in the third quarter. The Company expects to release an updated technical report in the first quarter of 2024. After closure of the underground operations in 2024, Casa Berardi will mine the 160 open pit until 2027 and is expected to be free cash flow positive. During a period of investment from 2028 to 2030, the Company expects no production while the permitting is being completed, investing in infrastructure and equipment, and exposing the first ore. Significant free cash flow is expected after 2030. East Mine closure and June’s wildfires have reduced production guidance by about 25,000 ounces in 2023 and have increased AISC per gold ounce (after by-product credits) guidance by approximately $200 per ounce. For further details, see the Guidance section of this release. Keno Hill - Yukon Territory At Keno Hill, the mill restarted and began processing lower grade, stockpiled ore in June, producing 184,264 ounces of silver for the quarter The mill operated as expected at 330 tpd, which is 73% of projected year-end throughput, processing stockpiled, lower-grade ore of 17 ounces per ton (“opt”). The mine advanced the primary development sufficiently to initiate ore mining. The mill reconciled well to the model in the quarter with slightly fewer tons and better grades resulting in the expected silver and lead content with more zinc. Silver production is expected to exceed 2.5 million ounces in 2023. Capital spend during the quarter was $3.4 million (net of $6.7 million in finance leases), and included mine development, surface infrastructure projects, and mill upgrades. Keno Hill will be included in silver operations reporting by the end of the year. EXPLORATION AND PRE-DEVELOPMENT Exploration and pre-development expenses totaled $6.9 million for the second quarter and $11.9 million for the first half of the year. Exploration activities during the quarter primarily focused on underground targets at Greens Creek, and Keno Hill. Highlights include: Keno Hill: Exploration drilling discovered high-grade mineralization in the Bermingham Townsite vein located within 500 feet of planned mine infrastructure. Greens Creek: Exploration and definition drilling continued to define and expand mineralization on strike of current mineralization with strong assay results from four targeted areas. Keno Hill, Yukon Territory At Keno Hill, $3.7 million of exploration is expected for the year. This quarter’s focus is on extending mineralization and resource conversion at the high-grade Bear Zone and defining new mineral resources at the Townsite Zone. During the first half, one underground drill completed over 11,000 feet of definition drilling, while two surface core drills completed over 13,000 feet of exploration drilling targeting the Bear and Townsite zones. Bear Zone: Definition drilling targeted extending the Bear Zone to the North towards the Ruby Fault, which is interpreted to constrain mineralization of both the Bermingham Main and Bear veins. At the Bear vein, drilling results suggest that grade continues and strengthens outside the currently programmed stopes and is open for expansion. Highlights include: 44.9 oz/ton silver, 1.7% lead, and 0.8% zinc over 11.1 feet 120.9 oz/ton silver, 1.5% lead, and 3.3% zinc over 2.8 feet 47.5 oz/ton silver, 0.8% lead, and 0.2% zinc over 7.8 feet 79.4 oz/ton silver, 3.0% lead, and 1.3% zinc over 6.1 feet Townsite Zone: High-grade mineralization was discovered in the Townsite vein approximately 2,000 feet southwest of the historical Townsite Mine stopes, and at a depth of 1,300 feet. This high-grade mineralization is open for expansion and continues to confirm the exploration potential within the district. Assay results to date include: 25.5 oz/ton silver, 0.9% lead, and 0.3% zinc over 9.2 feet, including 108.2 oz/ton silver, 4.5% lead, and 1.0% zinc over 1.7 feet Greens Creek, Alaska At Greens Creek, $8.0 million of exploration is focused on expanding mineralization both from surface and underground. Four underground core drills completed over 70,000 feet of drilling in 132 holes focused on resource conversion in the 200 South, East, Gallagher, Upper Plate, 9A, and West ore zones and exploration targeting the southern extensions of the 200 South, and Gallagher zones. Additionally, two helicopter supported core drills completed over 4,000 feet of drilling in 12 holes targeting near mine extensions to the Upper Plate and East ore zones. Assay results have been received for drilling in the 200 South, East, Gallagher, Upper Plate, and West areas, and results continue to confirm and expand mineral zones. Highlights include: 200 South Zone: 17.0 oz/ton silver, 0.19 oz/ton gold, 3.3% zinc, and 1.9% lead over 8.1 feet East Zone: 12.6 oz/ton silver, 0.05 oz/ton gold, 7.7% zinc, and 3.5% lead over 5.7 feet 20.9 oz/ton silver, 0.04 oz/ton gold, 3.4% zinc, and 2.2% lead over 3.6 feet Gallagher Zone: 7.9 oz/ton silver, 0.22 oz/ton gold, 10.5% zinc and 4.8% lead over 45.3 feet 15.0 oz/ton silver, 0.28 oz/ton gold, 2.6% zinc, and 1.3% lead over 9.0 feet 9.8 oz/ton silver, 0.19 oz/ton gold, 10.8% zinc, and 2.9% lead over 25.7 feet 21.6 oz/ton silver, 0.07 oz/ton gold, 0.6% zinc, and 0.4% lead over 41.3 feet Upper Plate Zone: Underground and surface drilling has expanded resources over 600 and 300 feet of strike length, respectively. Initial surface drillholes completed to date have intercepted significant lengths of base metal rich white ore lithologies. Assay results from these initial surface drillholes are expected in the third quarter. Results to date indicate that drilling is upgrading and expanding mineralization in the Upper Plate Zone. Highlights from this drilling include: 23.0 oz/ton silver, 0.05 oz/ton gold, 6.2% zinc and 3.1% lead over 13.2 feet 20.7 oz/ton silver, 0.06 oz/ton gold, 1.7% zinc, and 0.7% lead over 18.0 feet West Zone: Underground drilling expanded the strike length 550 feet with strong, high-grade mineralization over significant widths. Highlights from this drilling include: 63.4 oz/ton silver, 0.84 oz/ton gold, 11.9% zinc and 3.8% lead over 15.2 feet 13.0 oz/ton silver, 0.11 oz/ton gold, 14.4% zinc, and 3.4% lead over 8.3 feet Detailed complete drill assay highlights can be found in Table A at the end of the release. 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 September 7, 2023, to stockholders of record on August 24, 2023. The second quarter realized silver price was $23.67, satisfying the criterion for the Company’s common stock silver-linked dividend policy component. 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 October 2, 2023, to stockholders of record on September 15, 2023. 2023 GUIDANCE 6 The Company has updated its annual gold production, cost, and capital guidance as below. There is no change to silver production guidance. Gold production guidance for Greens Creek is increased to reflect higher gold production. Wildfires-related suspension of operations in June and the closure of the East Mine underground operations has resulted in lower expected gold production for 2023. Three-year gold production outlook has also decreased to include the closure of underground operations in mid-2024, and transition to full surface operations in 2024. 2023 Production Outlook Silver Production (Moz) Gold Production (Koz) Silver Equivalent (Moz) Gold Equivalent (Koz) Previous Current Previous Current Previous Current 2023 Greens Creek * 9.0 - 9.5 50.0 - 55.0 55.0 - 65.0 21.0 - 22.0 21.5 - 22.5 255 – 265 255 - 270 2023 Lucky Friday * 4.5 - 5.0 N/A N/A 8.5 - 9.0 8.5 - 9.0 105 - 110 105 - 110 2023 Casa Berardi N/A 110.0 - 115.0 85.0 - 95.0 9.0 - 9.5 7.0 - 8.0 110 – 115 85 – 95 2023 Keno Hill* 2.5 - 3.0 N/A N/A 2.5 - 3.0 2.5 - 3.0 35 - 40 35 - 40 2023 Total 16.0 - 17.5 160.0 - 170.0 140.0 - 160.0 41.0 - 44.5 40.0 - 43.0 505 – 535 480 – 520 2024 Total 17.5 - 18.5 145.0 - 161.0 105.0 - 125.0 42.5 - 44.5 38.5 - 41.5 510 - 540 465 - 505 2025 Total 18.5 - 20.0 142.0 - 161.5 100.0 - 115.0 41.0 - 44.0 38.0 - 41.0 495 - 535 460 – 495 * Equivalent ounces include Lead and Zinc production 2023 Cost Outlook At Greens Creek, guidance for cash costs, per silver ounce (net of by-products) has increased slightly to reflect lower zinc prices by-product credits due to lower zinc prices. Guidance for AISC, per silver ounce (each after by-product credits) has decreased due to higher expected gold production, and lower planned sustaining capital spend. At Lucky Friday, guidance for cash costs per silver ounce (each after by-product credits) is increased due to higher expected labor costs attributable to the CBA, and lower zinc by-product credits due to lower zinc prices. Lucky Friday guidance for AISC, per silver ounce (each after by-product credits) has been increased to reflect higher expected sustaining capital. Impact of the CBA changes on labor costs is approximately $2.5 million in 2023. Consolidated AISC per silver ounce (after by-product credits) is unchanged. At Casa Berardi mine, increase in cash costs and AISC, per gold ounce, each after by-product credits, is primarily due to lower gold production due to wildfires-related suspension of operations in June and closure of the East Mine operations. Costs of Sales (million) Cash cost, after by-product credits, per silver/gold ounce3 AISC, after by-product credits, per produced silver/gold ounce4 Previous Current Previous Current Previous Current Greens Creek 245 245 $0.00 - $0.25 $0.00 - $0.50 $6.00 - $6.75 $5.25 - $5.75 Lucky Friday 128 131 $2.00 - $2.50 $4.00 - $4.75 $8.50 - $9.50 $11.50 - $13.00 Keno Hill 40 40 $11.00 - $13.50 $11.00 - $13.50 $12.25 - $14.75 $12.25 - $14.75 Total Silver 413 416 $2.50 - $3.00 $3.00 - $4.00 $10.25 - $11.50 $10.25 - $11.50 Casa Berardi 220 215 $1,450 - $1,550 $1,750 - $1,950 $1,975 - $2,050 $2,000 - $2,250 2023 Capital and Exploration Outlook Consolidated capital guidance is increased for all operations except Greens Creek. At the Lucky Friday, increase in capital guidance is attributable to higher growth capital spend primarily related to the service hoist project, which was commissioned in early August. Increase in sustaining capital spend is attributable to increased development and timing of receipt of mobile equipment. At Keno Hill, increase in capital is attributable to mill upgrades, and increased underground development. At Casa Berardi, the increase in capital is primarily attributable to growth capital, which comprises the addition of surface equipment fleet (approximately $16 million) and capitalization of 160 pit waste stripping costs. Sustaining capital spend at the mine is guided lower due to the allocation of stripping costs to growth capital. Guidance for exploration and pre-development expenditures is unchanged at $32.5 million. (millions) Previous Current Current - Sustaining Current - Growth Capital expenditures $190 - $200 $225 - $235 $114 - $119 $111 - $116 Greens Creek $49 - $52 $47 - $50 $43 - $45 $4 - $5 Lucky Friday $48 - $51 $59 - $62 $34 - $36 $25 - $26 Casa Berardi $51 - $53 $72 - $74 $36 - $37 $36 - $37 Keno Hill $42 - $44 $47 - $49 $0.5 - $1 $46.5 - $48 Keno Hill Ramp Up Costs $9 $13 MANAGEMENT CHANGES Hecla today announced Lauren Roberts, Senior Vice President, and Chief Operating Officer, is retiring at the end of 2023 after 12 years of service. Lauren’s significant contributions during his tenure at Hecla include managing the challenges of COVID at our operations, implementing the underhand closed bench mining method at Lucky Friday, and acquiring Alexco. He began his career with Hecla in the 1980s and returned as the Chief Operating Officer five years ago; his leadership has been instrumental in Hecla’s production growth and improved safety performance. Carlos Aguiar will be appointed Vice President, Operations. Carlos has held several positions with the Company in the past 27 years and has been Vice President and General Manager of San Sebastian from 2016 to 2021 and Vice President and General Manager of Lucky Friday mine since 2021. Carlos will have the four operations reporting to him and will report to Lauren. CONFERENCE CALL AND WEBCAST A conference call and webcast will be held on Wednesday, August 9, 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/295670289 or www.hecla.com under Investors. VIRTUAL INVESTOR EVENT Hecla will be holding a Virtual Investor Event on Wednesday, August 9, 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 Financial, 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.com or 208-769-4100. One-on-One meeting URL: https://calendly.com/2023-aug-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, and Casa Berardi 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 total cost of sales, can be found at the end of the release. It is an important operating statistic that management utilizes to measure each mine's operating performance. It also allows the benchmarking of performance of each mine versus those of our competitors. As a primary silver mining company, management also uses the statistic on an aggregate basis - aggregating the Greens Creek and Lucky Friday mines - to compare performance with that of other silver mining companies, 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. (4) All-in sustaining cost (“AISC”), after by-product credits, is a non-GAAP measurement, a reconciliation of which to total cost of sales, the closest GAAP measurement, can be found at the end of the release. AISC, after by-product credits, includes total cost of sales and other direct production costs, expenses for reclamation at the mine sites and all site sustaining capital costs. AISC, after by-product credits, is calculated net of depreciation, depletion, and amortization and by-product credits. Prior year presentation has been adjusted to conform with current year presentation. (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) applicable to common stockholders is a measure used by management to evaluate the Company's operating performance but should not be considered an alternative to net income (loss) applicable to common stockholders 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) applicable to common stockholders 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 total cost of goods sold, do not capture all the expenditures incurred to discover, develop and sustain silver and gold production. Management believes that AISC is a non-GAAP measure that provides additional information to management, investors and analysts to help (i) in the understanding of the economics of our operations and performance compared to other producers and (ii) in the transparency by better defining the total costs associated with production. Similarly, the statistic is useful in identifying acquisition and investment opportunities as it provides a common tool for measuring the financial performance of other mines with varying geologic, metallurgical and operating characteristics. In addition, the Company may use it when formulating performance goals and targets under its incentive program. 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, for equivalent ounce calculations and Au $1,950/oz, Ag $24.50/oz, Zn $1.15/lb, and Pb 1.00$/lb, for by-product credit calculations. Numbers are 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) Lucky Friday will achieve annual production rate of 425,000 ore tons by the end of 2023 and will be able to complete capital projects (coarse ore bunker) on schedule; (ii) Greens Creek will achieve throughput of 2,600 tpd by the fourth quarter; (iii) Keno Hill will achieve full production by year-end, with expected throughput of approximately 440 tpd; (iv) regarding Casa Berardi: (1) it will be a full surface operation by 2024 and be free cash flow positive after the completion of stripping and Cell 7 of the tailings facility, (2) the Company expects to release the updated technical report for Casa Berardi in the first quarter of 2024, (3) after closure of the underground operations in 2024, Casa Berardi is projected to mine the 160 open pit until 2027, (4) permitting of the higher-grade Principal and West Mine Crown Pillar pits is expected over the next four years after which investment in stripping and dewatering is expected to occur, and (5) the Company expects a production gap of approximately two years between 2028 and 2030 and once the higher grade pits are in production, they are expected to generate significant free cash flow starting in 2030; (v) the Company will achieve silver production of 20 million ounces by 2025; (vi) the Company will be able to achieve Net Debt to Adjusted EBITDA ratio of <2.0; (vii) mine-specific and Company-wide estimates of future production, sales and total cost of sales, as well as cash cost and AISC per ounce (in each case after by-product credits); and (viii) 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, including with respect to the transition of Casa Berardi from an underground/open pit operation to an open pit only operation; (iii) political/regulatory developments in any jurisdiction in which the Company operates being consistent with its current expectations; (iv) the exchange rate for the USD/CAD being approximately consistent with current levels; (v) certain price assumptions for gold, silver, lead and zinc; (vi) prices for key supplies being approximately consistent with current levels; (vii) the accuracy of our current mineral reserve and mineral resource estimates; (viii) there being no significant changes to 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, including with respect to obtaining or renewing permits; (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) 2022 Annual Report on Form 10-K, filed with the Securities and Exchange Commission (“SEC”) on February 17, 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 Annual Report on Form 10-K for the year ended December 31, 2022 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 are contained in technical reports prepared for Klondex Mines Ltd. for (i) the Fire Creek Mine (technical report dated March 31, 2018), (ii) the Hollister Mine (technical report dated May 31, 2017, amended August 9, 2017), and (iii) the Midas Mine (technical report dated August 31, 2014, amended April 2, 2015). Copies of these technical reports are available under Hecla’s profile on SEDAR 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 Loss (dollars and shares in thousands, except per share amounts - unaudited) Three Months Ended Six Months Ended June 30, 2023 March 31, 2023 June 30, 2023 June 30, 2022 Sales $ 178,131 $ 199,500 $ 377,631 $ 377,741 Cost of sales and other direct production costs 107,754 125,550 233,304 221,679 Depreciation, depletion and amortization 32,718 39,002 71,720 73,370 Total cost of sales 140,472 164,552 305,024 295,049 Gross profit 37,659 34,948 72,607 82,692 Other operating expenses: General and administrative 10,783 12,070 22,853 17,986 Exploration and pre-development 6,893 4,967 11,860 24,008 Ramp-up and suspension costs 16,323 11,336 27,659 11,447 Provision for closed operations and environmental matters 3,111 1,044 4,155 2,373 Other operating (income) expense (4,262 ) (22 ) (4,284 ) 4,408 32,848 29,395 62,243 60,222 Income from operations 4,811 5,553 10,364 22,470 Other (expense) income: Interest expense (10,311 ) (10,165 ) (20,476 ) (20,911 ) Fair value adjustments, net (2,558 ) 3,181 623 (10,463 ) Foreign exchange gain (loss) (3,850 ) 108 (3,742 ) 2,444 Other income 1,376 1,392 2,768 2,975 (15,343 ) (5,484 ) (20,827 ) (25,955 ) Income (loss) before income taxes (10,532 ) 69 (10,463 ) (3,485 ) Income and mining tax (expense) benefit (5,162 ) (3,242 ) (8,404 ) (5,885 ) Net loss (15,694 ) (3,173 ) (18,867 ) (9,370 ) Preferred stock dividends (138 ) (138 ) (276 ) (276 ) Net loss applicable to common stockholders $ (15,832 ) $ (3,311 ) $ (19,143 ) $ (9,646 ) Basic and diluted loss per common share after preferred dividends (in cents) $ (0.03 ) $ (0.01 ) $ (0.03 ) $ (0.02 ) Weighted average number of common shares outstanding basic 604,088 600,075 602,077 538,943 Weighted average number of common shares outstanding diluted 604,088 600,075 602,077 538,943 HECLA MINING COMPANY Condensed Consolidated Statements of Cash Flows (dollars in thousands - unaudited) Quarter Ended Six Months Ended June 30, 2023 March 31, 2023 June 30, 2023 June 30, 2022 OPERATING ACTIVITIES Net loss $ (15,694 ) $ (3,173 ) $ (18,867 ) $ (9,370 ) Non-cash elements included in net income (loss): Depreciation, depletion and amortization 34,718 39,892 74,610 73,656 Adjustment of inventory to net realizable value 2,997 4,521 7,518 754 Fair value adjustments, net 2,558 (3,181 ) (623 ) (14,185 ) Provision for reclamation and closure costs 3,634 1,694 5,328 3,271 Stock compensation 1,498 1,190 2,688 2,525 Deferred income taxes 4,027 558 4,585 (1,290 ) Foreign exchange loss (gain) 6,025 (2,218 ) 3,807 (3,442 ) Other non-cash items, net 1,388 186 1,574 982 Change in assets and liabilities: Accounts receivable 13,087 15,477 28,564 19,199 Inventories (8,882 ) (9,239 ) (18,121 ) (8,352 ) Other current and non-current assets (5,207 ) (9,856 ) (15,063 ) (894 ) Accounts payable, accrued and other current liabilities 9,447 (9,304 ) 143 17,119 Accrued payroll and related benefits (14,248 ) 4,705 (9,543 ) 278 Accrued taxes (2,311 ) 2,226 (85 ) (5,683 ) Accrued reclamation and closure costs and other non-current liabilities (9,260 ) 7,125 (2,135 ) 3,524 Cash provided by operating activities 23,777 40,603 64,380 78,092 INVESTING ACTIVITIES Additions to properties, plants, equipment and mineral interests (51,468 ) (54,443 ) (105,911 ) (55,807 ) Proceeds from sale or exchange of investments — — — 2,487 Proceeds from disposition of properties, plants, equipment and mineral interests 80 — 80 730 Purchases of investments — — — (21,899 ) Net cash used in investing activities (51,388 ) (54,443 ) (105,831 ) (74,489 ) FINANCING ACTIVITIES Proceeds from issuance of stock, net of related costs 14,003 11,885 25,888 — Acquisition of treasury shares (1,554 ) (482 ) (2,036 ) (3,677 ) Borrowing of debt 43,000 13,000 56,000 — Repayment of debt (12,000 ) (13,000 ) (25,000 ) — Dividends paid to common and preferred stockholders (3,917 ) (3,891 ) (7,808 ) (7,027 ) Credit facility feed paid — 0 — (74 ) Repayments of finance leases (2,301 ) (2,464 ) (4,765 ) (3,333 ) Net cash provided by (used in) financing activities 37,231 5,048 42,279 (14,111 ) Effect of exchange rates on cash 1,046 171 1,217 (1,321 ) Net increase (decrease) in cash, cash equivalents and restricted cash and cash equivalents 10,666 (8,621 ) 2,045 (11,829 ) Cash, cash equivalents and restricted cash at beginning of period 97,286 105,907 105,907 211,063 Cash, cash equivalents and restricted cash at end of period $ 107,952 $ 97,286 $ 107,952 $ 199,234 HECLA MINING COMPANY Condensed Consolidated Balance Sheets (dollars and shares in thousands - unaudited) June 30, 2023 December 31, 2022 ASSETS Current assets: Cash and cash equivalents $ 106,786 $ 104,743 Accounts receivable 30,716 55,841 Inventories 94,613 90,672 Other current assets 27,040 16,471 Total current assets 259,155 267,727 Investments 20,778 24,018 Restricted cash 1,166 1,164 Properties, plants, equipment and mineral interests, net 2,615,747 2,569,790 Operating lease right-of-use assets 9,901 11,064 Deferred tax assets 2,703 21,105 Other non-current assets 36,009 32,304 Total assets $ 2,945,459 $ 2,927,172 LIABILITIES Current liabilities: Accounts payable and accrued liabilities $ 81,653 $ 84,747 Accrued payroll and related benefits 25,993 37,579 Accrued taxes 4,036 4,030 Finance leases 11,213 9,483 Accrued reclamation and closure costs 9,693 8,591 Accrued interest 14,404 14,454 Other current liabilities 4,348 19,582 Total current liabilities 151,340 178,466 Accrued reclamation and closure costs 110,236 108,408 Long-term debt including finance leases 559,817 517,742 Deferred tax liability 118,611 125,846 Other non-current liabilities 12,619 17,743 Total liabilities 952,623 948,205 STOCKHOLDERS’ EQUITY Preferred stock 39 39 Common stock 153,334 151,819 Capital surplus 2,289,607 2,260,290 Accumulated deficit (430,606 ) (403,931 ) Accumulated other comprehensive income, net 14,196 2,448 Treasury stock (33,734 ) (31,698 ) Total stockholders’ equity 1,992,836 1,978,967 Total liabilities and stockholders’ equity $ 2,945,459 $ 2,927,172 Common shares outstanding 613,682 607,620 Non-GAAP Measures (Unaudited) Reconciliation of Total Cost of Sales to Cash Cost, Before By-product Credits and Cash Cost, After By-product Credits (non-GAAP) and All-In Sustaining Cost, Before By-product Credits and All-In Sustaining Cost, After By-product Credits (non-GAAP) The tables below present reconciliations between the most comparable GAAP measure of total cost of sales to the non-GAAP measures of (i) Cash Cost, Before By-product Credits, (ii) Cash Cost, After By-product Credits, (iii) AISC, Before By-product Credits and (iv) AISC, After By-product Credits for our operations and for the Company for the three months and six months ended June 30, 2023 and 2022, the three months ended March 31, 2023 December 31, 2022, September 30, 2022 and June 30, 2022. Cash Cost, After By-product Credits, per Ounce and AISC, After By-product Credits, per Ounce are measures developed by precious metals companies (including the Silver Institute and the World Gold Council) in an effort to provide a uniform standard for comparison purposes. There can be no assurance, however, that these non-GAAP measures as we report them are the same as those reported by other mining companies. Cash Cost, After By-product Credits, per Ounce is an important operating statistic that we utilize to measure each mine's operating performance. We use AISC, After By-product Credits, per Ounce as a measure of our mines' net cash flow after costs for reclamation and sustaining capital. This is similar to the Cash Cost, After By-product Credits, per Ounce non-GAAP measure we report, but also includes reclamation and sustaining capital costs. Current GAAP measures used in the mining industry, such as cost of goods sold, do not capture all the expenditures incurred to discover, develop and sustain silver and gold production. Cash Cost, After By-product Credits, per Ounce and AISC, After By-product Credits, per Ounce also allow us to benchmark the performance of each of our mines versus those of our competitors. As a silver and gold mining company, we also use these statistics on an aggregate basis - aggregating the Greens Creek and Lucky Friday mines to compare our performance with that of other silver mining companies, and aggregating Casa Berardi and Nevada Operations for comparison with other 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 mine also includes reclamation and sustaining capital costs. AISC, Before By-product Credits for our consolidated silver properties also includes corporate costs for general and administrative expense and sustaining capital costs. By-product credits include revenues earned from all metals other than the primary metal produced at each unit. As depicted in the tables below, by-product credits comprise an essential element of our silver unit cost structure, distinguishing our silver operations due to the polymetallic nature of their orebodies. In addition to the uses described above, Cash Cost, After By-product Credits, per Ounce and AISC, After By-product Credits, per Ounce provide management and investors an indication of operating cash flow, after consideration of the average price, received from production. We also use these measurements for the comparative monitoring of performance of our mining operations period-to-period from a cash flow perspective. The Casa Berardi and Nevada Operations and combined gold properties information below reports Cash Cost, After By-product Credits, per Gold Ounce and AISC, After By-product Credits, per Gold Ounce for the production of gold, their primary product, and by-product revenues earned from silver, which is a by-product at Casa Berardi and Nevada Operations. Only costs and ounces produced relating to units with the same primary product are combined to represent Cash Cost, After By-product Credits, per Ounce and AISC, After By-product Credits, per Ounce. Thus, the gold produced at our Casa Berardi and Nevada Operations units 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 units is not included as a by-product credit when calculating the gold metrics for Casa Berardi and Nevada Operations. In thousands (except per ounce amounts) Three Months Ended June 30, 2023 Three Months Ended March 31, 2023 Six Months Ended June 30, 2023 Six Months Ended June 30, 2022 (5) Greens Creek Lucky Friday Keno Hill (6) Corporate (2) Total Silver Greens Creek Lucky Friday Corporate (2) Total Silver Greens Creek Lucky Friday Keno Hill (6) Corporate (2) Total Silver Greens Creek Lucky Friday(2) Corporate and other(3) Total Silver Total cost of sales $63,054 $32,190 $1,581 $— $96,825 $66,288 $34,534 $— $100,822 $129,342 $66,724 $1,581 $— 197,647 $110,143 $59,613 $— $169,756 Depreciation, depletion and amortization (13,078 ) (8,979 ) (261 ) — (22,318 ) (14,464 ) (10,456 ) — (24,920 ) (27,542 ) (19,435 ) (261 ) — (47,238 ) (25,049 ) (16,894 ) — (41,943 ) Treatment costs 10,376 4,187 113 — 14,676 10,369 5,276 — 15,645 20,745 9,464 113 — 30,322 17,892 8,480 — 26,372 Change in product inventory (1,242 ) 1,546 — — 304 (1,614 ) (2,409 ) — (4,023 ) (2,856 ) (863 ) — — (3,719 ) 5,436 (402 ) — 5,034 Reclamation and other costs 263 (250 ) — — 13 (129 ) (408 ) — (537 ) 134 (658 ) — — (524 ) — Exclusion of Keno Hill cash costs — — (1,433 ) — (1,433 ) — — - - (1,433 ) — (1,433 ) (1,872 ) (619 ) — (2,491 ) Cash Cost, Before By-product Credits (1) 59,373 28,694 — — 88,067 60,450 26,537 — 86,987 119,823 55,232 — — 175,055 106,550 50,178 — 156,728 Reclamation and other costs 722 285 — — 1,007 722 285 — 1,007 1,444 570 — — 2,014 1,410 564 — 1,974 Sustaining capital 8,714 9,081 — 688 18,483 6,641 7,784 — 14,425 15,355 16,865 — 594 32,814 20,624 13,671 147 34,442 General and administrative — — — 10,783 10,783 — — 12,070 12,070 — — — 22,853 22,853 — — 17,986 17,986 AISC, Before By-product Credits (1) 68,809 38,060 — 11,471 118,340 67,813 34,606 12,070 114,489 136,622 72,667 — 23,447 232,736 128,584 64,413 18,133 211,130 By-product credits: Zinc (20,923 ) (5,448 ) — — (26,371 ) (24,005 ) (6,816 ) — (30,821 ) (44,928 ) (12,264 ) — — (57,192 ) (61,479 ) (14,204 ) — (75,683 ) Gold (28,458 ) — — — (28,458 ) (25,286 ) — — (25,286 ) (53,744 ) - — — (53,744 ) (38,947 ) — — (38,947 ) Lead (6,860 ) (14,287 ) — — (21,147 ) (7,942 ) (14,299 ) — (22,241 ) (14,802 ) (28,586 ) — — (43,388 ) (16,237 ) (26,379 ) — (42,616 ) Total By-product credits (56,241 ) (19,735 ) — — (75,976 ) (57,233 ) (21,115 ) — (78,348 ) (113,474 ) (40,850 ) — — (154,324 ) (116,663 ) (40,583 ) — (157,246 ) Cash Cost, After By-product Credits $3,132 $8,959 $— $— $12,091 $3,217 $5,422 $— $8,639 $6,349 $14,382 $— $— $20,731 $(10,113 ) $9,595 $— $(518 ) AISC, After By-product Credits $12,568 $18,325 $— $11,471 $42,364 $10,580 $13,491 $12,070 $36,141 $23,148 $31,817 $— $23,447 $78,412 $11,921 $23,830 $18,133 $53,884 Divided by ounces produced 2,356 1,287 3,642 2,773 1,262 4,035 5,129 2,549 7,678 4,840 2,114 6,954 Cash Cost, Before By-product Credits, per Silver Ounce $25.20 $22.30 $24.18 $21.80 $21.03 $21.56 $23.36 $21.67 $22.80 $22.01 $23.74 $22.54 By-product credits per ounce (23.87 ) (15.34 ) (20.86 ) (20.64 ) (16.73 ) (19.42 ) (22.13 ) (16.03 ) (20.10 ) (24.10 ) (19.20 ) (22.61 ) Cash Cost, After By-product Credits, per Silver Ounce $1.33 $6.96 $3.32 $1.16 $4.30 $2.14 $1.23 $5.64 $2.70 $(2.09 ) $4.54 $(0.07 ) AISC, Before By-product Credits, per Silver Ounce $29.21 $29.58 $32.49 $24.46 $27.42 $28.38 $26.64 $28.51 $30.31 $26.57 $30.47 $30.36 By-product credits per ounce (23.87 ) (15.34 ) (20.86 ) (20.64 ) (16.73 ) (19.42 ) (22.13 ) (16.03 ) (20.10 ) (24.10 ) (19.20 ) (22.61 ) AISC, After By-product Credits, per Silver Ounce $5.34 $14.24 $11.63 $3.83 $10.69 $8.96 $4.51 $12.48 $10.21 $2.47 $11.27 $7.75 In thousands (except per ounce amounts) Three Months Ended June 30, 2023 Three Months Ended March 31, 2023 Six Months Ended June 30, 2023 Six Months Ended June 30, 2022 (5) Casa Berardi Nevada Operations and Other (4) Total Gold Casa Berardi Nevada Operations and Other (4) Total Gold Casa Berardi Nevada Operations and Other (4) Total Gold Casa Berardi Total Gold Total cost of sales $ 42,576 $ 1,071 $ 43,647 $ 62,998 $ 732 $ 63,730 $ 105,574 $ 1,803 $ 107,377 $ 124,038 $ 124,038 Depreciation, depletion and amortization (10,272 ) (127 ) (10,399 ) (14,036 ) (47 ) (14,083 ) (24,308 ) (174 ) (24,482 ) (31,305 ) (31,305 ) Treatment costs 351 — 351 467 — 467 818 — 818 915 915 Change in product inventory (951 ) — (951 ) (2,417 ) — (2,417 ) (3,368 ) — (3,368 ) (1,356 ) (1,356 ) Reclamation and other costs (219 ) — (219 ) (217 ) — (217 ) (436 ) — (436 ) (419 ) (419 ) Exclusion of Casa Berardi cash costs (3) — — — (2,851 ) — (2,851 ) (2,851 ) — (2,851 ) — — Exclusion of Nevada and Other costs — (944 ) (944 ) — (685 ) (685 ) — (1,629 ) (1,629 ) — — Cash Cost, Before By-product Credits (1) 31,485 — 31,485 43,944 — 43,944 75,429 — 75,429 91,873 91,873 Reclamation and other costs 219 — 219 217 — 217 436 — 436 419 419 Sustaining capital 9,025 — 9,025 15,015 — 15,015 24,041 — 24,041 14,878 14,878 AISC, Before By-product Credits (1) 40,729 — 40,729 59,176 — 59,176 99,906 — 99,906 107,170 107,170 By-product credits: Silver (144 ) (144 ) (127 ) — (127 ) (271 ) — (271 ) (354 ) (354 ) Total By-product credits (144 ) — (144 ) (127 ) — (127 ) (271 ) — (271 ) (354 ) (354 ) Cash Cost, After By-product Credits $ 31,341 $ — $ 31,341 $ 43,817 $ — $ 43,817 $ 75,158 $ — $ 75,158 $ 91,519 $ 91,519 AISC, After By-product Credits $ 40,585 $ — $ 40,585 $ 59,049 $ — $ 59,049 $ 99,635 $ — $ 99,635 $ 106,816 $ 106,816 Divided by gold ounces produced 19 — 19 25 — 25 44 — 44 64 64 Cash Cost, Before By-product Credits, per Gold Ounce $ 1,666 $ — $ 1,666 $ 1,780 $ — $ 1,780 $ 1,731 $ — $ 1,731 $ 1,446 $ 1,446 By-product credits per ounce (8 ) — (8 ) (5 ) — (5 ) (6 ) — (6 ) (6 ) (6 ) Cash Cost, After By-product Credits, per Gold Ounce $ 1,658 $ — $ 1,658 $ 1,775 $ — $ 1,775 $ 1,725 $ — $ 1,725 $ 1,440 $ 1,440 AISC, Before By-product Credits, per Gold Ounce $ 2,155 $ — $ 2,155 $ 2,397 $ — $ 2,397 $ 2,292 $ — $ 2,292 $ 1,686 $ 1,686 By-product credits per ounce (8 ) — (8 ) (5 ) — (5 ) (6 ) — (6 ) (6 ) (6 ) AISC, After By-product Credits, per Gold Ounce $ 2,147 $ — $ 2,147 $ 2,392 $ — $ 2,392 $ 2,286 $ — $ 2,286 $ 1,680 $ 1,680 In thousands (except per ounce amounts) Three Months Ended June 30, 2023 Three Months Ended March 31, 2023 Six Months Ended June 30, 2023 Six Months Ended June 30, 2022 (5) Total Silver Total Gold Total Total Silver Total Gold Total Total Silver Total Gold Total Total Silver Total Gold Total Total cost of sales $ 96,825 $ 43,647 $ 140,472 $ 100,822 $ 63,730 $ 164,552 $ 197,647 $ 107,377 $ 305,024 $ 169,756 $ 124,038 $ 293,794 Depreciation, depletion and amortization (22,318 ) (10,399 ) (32,717 ) (24,920 ) (14,083 ) (39,003 ) (47,238 ) (24,482 ) (71,720 ) (41,943 ) (31,305 ) (73,248 ) Treatment costs 14,676 351 15,027 15,645 467 16,112 30,322 818 31,140 26,372 915 27,287 Change in product inventory 304 (951 ) (647 ) (4,023 ) (2,417 ) (6,440 ) (3,719 ) (3,368 ) (7,087 ) 5,034 (1,356 ) 3,678 Reclamation and other costs 13 (219 ) (206 ) (537 ) (217 ) (754 ) (524 ) (436 ) (960 ) (2,491 ) (419 ) (2,910 ) Exclusion of Keno Hill cash costs (1,433 ) — (1,433 ) — — — (1,433 ) — (1,433 ) — — — Exclusion of Casa Berardi cash costs (3) — — — — (2,851 ) (2,851 ) — (2,851 ) (2,851 ) — — — Exclusion of Nevada and Other — (944 ) (944 ) — (685 ) (685 ) — (1,629 ) (1,629 ) — — — Cash Cost, Before By-product Credits (1) 88,067 31,485 119,552 86,987 43,944 130,931 175,055 75,429 250,484 156,728 91,873 248,601 Reclamation and other costs 1,007 219 1,226 1,007 217 1,224 2,014 436 2,450 1,974 419 2,393 Sustaining capital 18,483 9,025 27,508 14,425 15,015 29,440 32,814 24,041 56,855 34,442 14,878 49,320 General and administrative 10,783 — 10,783 12,070 — 12,070 22,853 — 22,853 17,986 — 17,986 AISC, Before By-product Credits (1) 118,340 40,729 159,069 114,489 59,176 173,665 232,736 99,906 332,642 211,130 107,170 318,300 By-product credits: Zinc (26,371 ) — (26,371 ) (30,821 ) — (30,821 ) (57,192 ) — (57,192 ) (75,683 ) — (75,683 ) Gold (28,458 ) — (28,458 ) (25,286 ) — (25,286 ) (53,744 ) — (53,744 ) (38,947 ) — (38,947 ) Lead (21,147 ) — (21,147 ) (22,241 ) — (22,241 ) (43,388 ) — (43,388 ) (42,616 ) — (42,616 ) Silver — (144 ) (144 ) — (127 ) (127 ) — (271 ) (271 ) — (354 ) (354 ) Total By-product credits (75,976 ) (144 ) (76,120 ) (78,348 ) (127 ) (78,475 ) (154,324 ) (271 ) (154,595 ) (157,246 ) (354 ) (157,600 ) Cash Cost, After By-product Credits $ 12,091 $ 31,341 $ 43,432 $ 8,639 $ 43,817 $ 52,456 $ 20,731 $ 75,158 $ 95,889 $ (518 ) $ 91,519 $ 91,001 AISC, After By-product Credits $ 42,364 $ 40,585 $ 82,949 $ 36,141 $ 59,049 $ 95,190 $ 78,412 $ 99,635 $ 178,047 $ 53,884 $ 106,816 $ 160,700 Divided by ounces produced 3,642 19 4,035 25 7,678 44 6,954 64 Cash Cost, Before By-product Credits, per Ounce $ 24.18 $ 1,666 $ 21.56 $ 1,780 $ 22.80 $ 1,731 $ 22.54 $ 1,446 By-product credits per ounce (20.86 ) (8 ) (19.42 ) (5 ) (20.10 ) (6 ) (22.61 ) (6 ) Cash Cost, After By-product Credits, per Ounce $ 3.32 $ 1,658 $ 2.14 $ 1,775 $ 2.70 $ 1,725 $ (0.07 ) $ 1,440 AISC, Before By-product Credits, per Ounce $ 32.49 $ 2,155 $ 28.38 $ 2,397 $ 30.31 $ 2,292 $ 30.36 $ 1,686 By-product credits per ounce (20.86 ) (8 ) (19.42 ) (5 ) (20.10 ) (6 ) (22.61 ) (6 ) AISC, After By-product Credits, per Ounce $ 11.63 2,147 $ 8.96 2,392 $ 10.21 2,286 $ 7.75 1,680 In thousands (except per ounce amounts) Three Months Ended December 31, 2022 (5) Three Months Ended September 30, 2022 (5) Three Months Ended June 30, 2022 (5) Greens Creek Lucky Friday Corporate (2) Total Silver Greens Creek Lucky Friday Corporate (2) Total Silver Greens Creek Lucky Friday Corporate (2) Total Silver Total cost of sales $ 70,074 $ 32,819 $ — $ 102,893 $ 52,502 $ 24,164 $ — $ 76,666 $ 60,506 $ 30,348 $ — $ 90,854 Depreciation, depletion and amortization (13,557 ) (9,549 ) — (23,106 ) (10,305 ) (7,261 ) — (17,566 ) (13,629 ) (8,862 ) — (22,491 ) Treatment costs 10,467 5,334 — 15,801 9,477 4,791 — 14,268 8,778 4,803 — 13,581 Change in product inventory (4,014 ) (571 ) — (4,585 ) 4,464 3,022 — 7,486 (1,102 ) 503 — (599 ) Reclamation and other costs 499 (265 ) — 234 (118 ) (152 ) — (270 ) (1,005 ) (256 ) — (1,261 ) Cash Cost, Before By-product Credits (1) 63,469 27,768 — 91,237 56,020 24,564 — 80,584 53,548 26,536 — 80,084 Reclamation and other costs 706 282 — 988 705 282 — 987 705 282 — 987 Sustaining capital 9,862 8,369 — 18,231 10,219 11,264 187 21,670 14,668 8,110 99 22,877 General and administrative — — 14,395 14,395 — — 11,003 11,003 — — 9,692 9,692 AISC, Before By-product Credits (1) 74,037 36,419 14,395 124,851 66,944 36,110 11,190 114,244 68,921 34,928 9,791 113,640 By-product credits: Zinc (26,112 ) (6,249 ) — (32,361 ) (26,244 ) (7,155 ) — (33,399 ) (32,828 ) (8,227 ) — (41,055 ) Gold (19,630 ) — — (19,630 ) (17,019 ) — — (17,019 ) (20,364 ) — — (20,364 ) Lead (7,351 ) (14,392 ) — (21,743 ) (6,212 ) (11,796 ) — (18,008 ) (8,271 ) (14,543 ) — (22,814 ) Total By-product credits (53,093 ) (20,641 ) — (73,734 ) (49,475 ) (18,951 ) — (68,426 ) (61,463 ) (22,770 ) — (84,233 ) Cash Cost, After By-product Credits $ 10,376 $ 7,127 $ — $ 17,503 $ 6,545 $ 5,613 $ — $ 12,158 $ (7,915 ) $ 3,766 $ — $ (4,149 ) AISC, After By-product Credits $ 20,944 $ 15,778 $ 14,395 $ 51,117 $ 17,469 $ 17,159 $ 11,190 $ 45,818 $ 7,458 $ 12,158 $ 9,791 $ 29,407 Divided by ounces produced 2,433 1,224 3,657 2,469 1,075 3,544 2,410 1,226 3,636 Cash Cost, Before By-product Credits, per Silver Ounce $ 26.08 $ 22.68 $ 24.95 $ 22.69 $ 22.87 $ 22.74 $ 22.21 $ 21.65 $ 22.03 By-product credits per ounce (21.82 ) (16.86 ) (20.16 ) (20.04 ) (17.64 ) (19.31 ) (25.50 ) (18.58 ) (23.17 ) Cash Cost, After By-product Credits, per Silver Ounce $ 4.26 $ 5.82 $ 4.79 $ 2.65 $ 5.23 $ 3.43 $ (3.29 ) $ 3.07 $ (1.14 ) AISC, Before By-product Credits, per Silver Ounce $ 30.43 $ 29.74 $ 34.14 $ 27.11 $ 33.62 $ 32.24 $ 28.60 $ 28.49 $ 31.25 By-product credits per ounce (21.82 ) (16.86 ) (20.16 ) (20.04 ) (17.64 ) (19.31 ) (25.50 ) (18.58 ) (23.17 ) AISC, After By-product Credits, per Silver Ounce $ 8.61 $ 12.88 $ 13.98 $ 7.07 $ 15.98 $ 12.93 $ 3.10 $ 9.91 $ 8.08 In thousands (except per ounce amounts) Three Months Ended December 31, 2022 (5) Three Months Ended September 30, 2022 (5) Three Months Ended June 30, 2022 (5) Casa Berardi Total Gold Casa Berardi Total Gold Casa Berardi Total Gold Total cost of sales $ 65,328 $ 65,328 $ 59,532 $ 59,532 $ 61,870 $ 61,870 Depreciation, depletion and amortization (14,568 ) (14,568 ) (15,089 ) (15,089 ) (15,459 ) (15,459 ) Treatment costs 521 521 429 429 457 457 Change in product inventory 1,122 1,122 420 420 (793 ) (793 ) Reclamation and other costs (196 ) (196 ) (203 ) (203 ) (209 ) (209 ) Cash Cost, Before By-product Credits (1) 52,207 52,207 45,089 45,089 45,866 45,866 Reclamation and other costs 196 196 204 204 209 209 Sustaining capital 11,438 11,438 10,457 10,457 7,597 7,597 AISC, Before By-product Credits (1) 63,841 63,841 55,750 55,750 53,672 53,672 By-product credits: Silver (124 ) (124 ) (131 ) (131 ) (188 ) (188 ) Total By-product credits (124 ) (124 ) (131 ) (131 ) (188 ) (188 ) Cash Cost, After By-product Credits $ 52,083 $ 52,083 $ 44,958 $ 44,958 $ 45,678 $ 45,678 AISC, After By-product Credits $ 63,717 $ 63,717 $ 55,619 $ 55,619 $ 53,484 $ 53,484 Divided by gold ounces produced 31 31 33 33 33 33 Cash Cost, Before By-product Credits, per Gold Ounce $ 1,700 $ 1,700 $ 1,353 $ 1,353 $ 1,377 $ 1,377 By-product credits per ounce (4 ) (4 ) (4 ) (4 ) (6 ) (6 ) Cash Cost, After By-product Credits, per Gold Ounce $ 1,696 $ 1,696 $ 1,349 $ 1,349 $ 1,371 $ 1,371 AISC, Before By-product Credits, per Gold Ounce $ 2,079 $ 2,079 $ 1,673 $ 1,673 $ 1,611 $ 1,611 By-product credits per ounce (4 ) (4 ) (4 ) (4 ) (6 ) (6 ) AISC, After By-product Credits, per Gold Ounce $ 2,075 $ 2,075 $ 1,669 $ 1,669 $ 1,605 $ 1,605 In thousands (except per ounce amounts) Three Months Ended December 31, 2022 (5) Three Months Ended September 30, 2022 (5) Three Months Ended June 30, 2022 (5) 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 $ 90,854 $ 61,870 $ 152,724 Depreciation, depletion and amortization (23,106 ) (14,568 ) (37,674 ) (17,566 ) (15,089 ) (32,655 ) (22,491 ) (15,459 ) (37,950 ) Treatment costs 15,801 521 16,322 14,268 429 14,697 13,581 457 14,038 Change in product inventory (4,585 ) 1,122 (3,463 ) 7,486 420 7,906 (599 ) (793 ) (1,392 ) Reclamation and other costs 234 (196 ) 38 (270 ) (203 ) (473 ) (1,261 ) (209 ) (1,470 ) Cash Cost, Before By-product Credits (1) 91,237 52,207 143,444 80,584 45,089 125,673 80,084 45,866 125,950 Reclamation and other costs 988 196 1,184 987 204 1,191 987 209 1,196 Sustaining capital 18,231 11,438 29,669 21,670 10,457 32,127 22,877 7,597 30,474 General and administrative 14,395 — 14,395 11,003 11,003 9,692 — 9,692 AISC, Before By-product Credits (1) 124,851 63,841 188,692 114,244 55,750 169,994 113,640 53,672 167,312 By-product credits: Zinc (32,361 ) — (32,361 ) (33,399 ) — (33,399 ) (41,055 ) — (41,055 ) Gold (19,630 ) — (19,630 ) (17,019 ) — (17,019 ) (20,364 ) — (20,364 ) Lead (21,743 ) — (21,743 ) (18,008 ) — (18,008 ) (22,814 ) — (22,814 ) Silver — (124 ) (124 ) (131 ) (131 ) (188 ) (188 ) Total By-product credits (73,734 ) (124 ) (73,858 ) (68,426 ) (131 ) (68,557 ) (84,233 ) (188 ) (84,421 ) Cash Cost, After By-product Credits $ 17,503 $ 52,083 $ 69,586 $ 12,158 $ 44,958 $ 57,116 $ (4,149 ) $ 45,678 $ 41,529 AISC, After By-product Credits $ 51,117 $ 63,717 $ 114,834 $ 45,818 $ 55,619 $ 101,437 $ 29,407 $ 53,484 $ 82,891 Divided by ounces produced 3,657 31 3,544 33 3,636 33 Cash Cost, Before By-product Credits, per Ounce $ 24.95 $ 1,700 $ 22.74 1,353 $ 22.03 $ 1,377 By-product credits per ounce (20.16 ) (4 ) (19.31 ) (4 ) (23.17 ) (6 ) Cash Cost, After By-product Credits, per Ounce $ 4.79 $ 1,696 $ 3.43 $ 1,349 $ (1.14 ) $ 1,371 AISC, Before By-product Credits, per Ounce $ 34.14 $ 2,079 $ 32.24 $ 1,673 $ 31.25 $ 1,611 By-product credits per ounce (20.16 ) (4 ) (19.31 ) (4 ) (23.17 ) (6 ) AISC, After By-product Credits, per Ounce $ 13.98 $ 2,075 $ 12.93 $ 1,669 $ 8.08 $ 1,605 (1) Includes all direct and indirect operating costs related to the physical activities of producing metals, including mining, processing and other plant costs, third-party refining and marketing expense, on-site general and administrative costs and royalties, before by-product revenues earned from all metals other than the primary metal produced at each operation. AISC, Before By-product Credits also includes reclamation and sustaining capital costs. (2) AISC, Before By-product Credits for our consolidated silver properties includes corporate costs for general and administrative expense, and sustaining capital. (3) During the three months ended March 31, 2023, the Company completed the necessary studies to conclude usage of the F-160 pit as a tailings storage facility after mining is complete. As a result, a portion of the mining costs have been excluded from Cash Cost, Before By-product Credits and AISC, Before By-product Credits. (4) Other includes $354,000 and $786,000 of total cost of sales for the three and six months ended June 30, 2023, respectively, related to the environmental services business acquired as part of the Alexco acquisition. (5) Prior year presentation has been adjusted to conform with current year presentation to eliminate exploration costs from the calculation of AISC, Before By-product Credits as exploration is an activity directed at the Corporate level to find new mineral reserve and resource deposits, and therefore we believe it is inappropriate to include exploration costs in the calculation of AISC, Before By-product Credits for a specific mining operation. (6) Keno Hill is in the ramp-up phase of production and as such costs associated with ramp up at this operation which amounted to $9.4 million and $15.3 million for the three and six months ended June 30, 2023 are excluded from the calculation of total cost of sales, Cash Cost, Before By-product Credits, Cash Cost, After By-product Credits, AISC, Before By-product Credits, and AISC, After By-product Credits. (7) Casa Berardi operations were suspended in June 2023 in response to the directive of the Quebec Ministry of Natural Resources and Forests. Suspension costs amounted to $2.2 million for the three and six month periods ended June 30, 2023 and are excluded from the calculation of total cost of sales, Cash Cost, Before By-product Credits, Cash Cost, After By-product Credits, AISC, Before By-product Credits, and AISC, After By-product Credits. 2023 Guidance, Previous and Current Estimates: Reconciliation of Cost of Sales to Non-GAAP Measures In thousands (except per ounce amounts) Previous Estimate for Twelve Months Ended December 31, 2023 Greens Creek Lucky Friday Keno Hill Corporate(3) Total Silver Casa Berardi Total Gold Total cost of sales $ 245,000 $ 128,000 $ 40,000 $ — $ 413,000 $ 220,000 $ 220,000 Depreciation, depletion and amortization (46,000 ) (37,900 ) (6,800 ) — (90,700 ) (52,800 ) (52,800 ) Treatment costs 43,700 15,375 5,150 — 64,225 300 300 Change in product inventory (5,100 ) (750 ) 1,000 — (4,850 ) (1,300 ) (1,300 ) Reclamation and other costs 1,000 1,000 750 — 2,750 500 500 Cash Cost, Before By-product Credits (1) 238,600 105,725 40,100 — 384,425 166,700 166,700 Reclamation and other costs 2,800 1,100 — — 3,900 800 800 Exploration 5,900 — 2,600 2,250 10,750 5,400 5,400 Sustaining capital 48,500 30,200 550 — 79,250 52,200 52,200 General and administrative — — — 44,000 44,000 — — AISC, Before By-product Credits (1) 295,800 137,025 43,250 46,250 522,325 225,100 225,100 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 ) — — Silver — — — — — (600 ) (600 ) Total By-product credits (238,400 ) (94,600 ) (6,900 ) — (339,900 ) (600 ) (600 ) Cash Cost, After By-product Credits $ 200 $ 11,125 $ 33,200 $ — $ 44,525 $ 166,100 $ 166,100 AISC, After By-product Credits $ 57,400 $ 42,425 $ 36,350 $ 46,250 $ 182,425 $ 224,500 $ 224,500 Divided by silver ounces produced 9,250 4,750 2,750 16,750 112.5 112.5 Cash Cost, Before By-product Credits, per Silver Ounce $ 25.79 $ 22.26 $ 14.58 $ 22.95 $ 1,482 $ 1,482 By-product credits per silver ounce (25.77 ) (19.92 ) (2.51 ) (20.29 ) (5 ) (5 ) Cash Cost, After By-product Credits, per Silver Ounce $ 0.02 $ 2.34 $ 12.07 $ 2.66 $ 1,477 $ 1,477 AISC, Before By-product Credits, per Silver Ounce $ 31.98 $ 28.85 $ 15.73 $ 31.18 $ 2,001 $ 2,001 By-product credits per silver ounce (25.77 ) (19.92 ) (2.51 ) (20.29 ) (5 ) (5 ) AISC, After By-product Credits, per Silver Ounce $ 6.21 $ 8.93 $ 13.22 $ 10.89 $ 1,996 $ 1,996 In thousands (except per ounce amounts) Current Estimate for Twelve Months Ended December 31, 2023 Greens Creek Lucky Friday Keno Hill Corporate(2) Total Silver Casa Berardi Total Gold Total cost of sales $ 245,000 $ 130,600 $ 40,000 $ — $ 415,600 $ 215,000 $ 215,000 Depreciation, depletion and amortization (46,000 ) (38,500 ) (6,800 ) — (91,300 ) (52,800 ) (52,800 ) Treatment costs 43,700 18,900 5,150 — 67,750 300 300 Change in product inventory (5,100 ) (2,500 ) 1,000 — (6,600 ) (1,300 ) (1,300 ) Reclamation and other costs 1,000 500 750 — 2,250 500 500 Cash Cost, Before By-product Credits (1) 238,600 109,000 40,100 — 387,700 161,700 161,700 Reclamation and other costs 2,800 1,100 — — 3,900 800 800 Sustaining capital 44,350 35,600 550 — 80,500 37,900 37,900 General and administrative — — — 44,000 44,000 — — AISC, Before By-product Credits (1) 285,750 145,700 40,650 44,000 516,100 200,400 200,400 By-product credits: Zinc (92,700 ) (26,300 ) (1,800 ) — (120,800 ) — — Gold (110,000 ) — — — (110,000 ) — — Lead (32,800 ) (62,100 ) (3,200 ) — (98,100 ) — — Silver — — — — — (600 ) (600 ) Total By-product credits (235,500 ) (88,400 ) (5,000 ) — (328,900 ) (600 ) (600 ) Cash Cost, After By-product Credits $ 3,100 $ 20,600 $ 35,100 $ — $ 58,800 $ 161,100 $ 161,100 AISC, After By-product Credits $ 50,250 $ 57,300 $ 35,650 $ 44,000 $ 187,200 $ 199,800 $ 199,800 Divided by silver ounces produced 9,250 4,750 2,750 16,750 90.0 90.0 Cash Cost, Before By-product Credits, per Silver Ounce $ 25.79 $ 22.95 $ 14.58 $ 23.15 $ 1,797 $ 1,797 By-product credits per silver ounce (25.46 ) (18.61 ) (1.82 ) (19.64 ) (7 ) (7 ) Cash Cost, After By-product Credits, per Silver Ounce $ 0.34 $ 4.34 $ 12.76 $ 3.51 $ 1,790 $ 1,790 AISC, Before By-product Credits, per Silver Ounce $ 30.89 $ 30.67 $ 14.78 $ 30.81 $ 2,227 $ 2,227 By-product credits per silver ounce (25.46 ) (18.61 ) (1.82 ) (19.64 ) (7 ) (7 ) AISC, After By-product Credits, per Silver Ounce $ 5.43 $ 12.06 $ 12.96 $ 11.18 $ 2,220 $ 2,220 (1) Includes all direct and indirect operating costs related to the physical activities of producing metals, including mining, processing and other plant costs, third-party refining and marketing expense, on-site general and administrative costs and royalties, before by-product revenues earned from all metals other than the primary metal produced at each operation. AISC, Before By-product Credits also includes reclamation and sustaining capital costs. (2) AISC, Before By-product Credits for our consolidated silver properties includes corporate costs for general and administrative expense, and sustaining capital. 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, fair value adjustments, net, interest and other income, provisions for environmental matters, stock-based compensation, provisional price gains and losses, monetization of zinc hedges and 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 2Q-2023 1Q-2023 4Q-2022 3Q-2022 2Q-2022 LTM June 30, 2023 FY 2022 Net loss $ (15,694 ) $ (3,171 ) $ (4,452 ) $ (23,526 ) $ (13,523 ) $ (46,843 ) $ (37,348 ) Interest expense 10,311 10,165 11,008 10,874 10,505 42,358 42,793 Income and mining taxes 5,162 3,242 (3,924 ) (9,527 ) 254 (5,047 ) (7,566 ) Depreciation, depletion and amortization 34,718 39,892 37,576 32,992 38,072 145,178 143,938 Ramp-up and suspension costs 16,323 11,336 7,575 5,092 5,242 40,326 24,114 (Gain) loss on disposition of properties, plants, equipment, and mineral interests (75 ) — — 19 5 (56 ) 16 Foreign exchange loss (gain) 3,850 (108 ) 900 (5,667 ) (4,482 ) (1,025 ) (7,211 ) Fair value adjustments, net 2,558 (3,181 ) (9,985 ) 4,241 16,428 (6,368 ) 4,788 Provisional price (gains) losses (2,143 ) (2,093 ) (625 ) 6,625 15,807 1,764 20,839 Provision for closed operations and environmental matters 3,111 1,044 3,741 1,781 1,628 9,677 8,793 Stock-based compensation 1,498 1,190 1,714 1,773 1,254 6,175 6,012 Adjustments of inventory to net realizable value 2,997 4,521 487 1,405 754 9,410 2,646 Monetization of zinc hedges 5,467 (579 ) 16,664 — — 21,552 16,664 Other (343 ) (355 ) 1,582 473 (1,470 ) 1,357 (986 ) Adjusted EBITDA $ 67,739 $ 61,903 $ 62,261 $ 26,555 $ 70,474 $ 218,458 $ 217,492 Total debt $ 571,030 $ 527,225 Less: Cash and cash equivalents 106,786 104,743 Net debt $ 464,244 $ 422,482 Net debt/LTM adjusted EBITDA (non-GAAP) 2.1 1.9 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 2Q-2023 1Q-2023 4Q-2022 3Q-2022 2Q-2022 YTD-2023 YTD-2022 Net loss applicable to common stockholders $ (15,832 ) $ (3,309 ) $ (4,590 ) $ (23,664 ) $ (13,661 ) $ (19,143 ) $ (9,646 ) Adjusted for items below: Fair value adjustments, net 2,558 (3,181 ) (9,985 ) 4,241 16,428 $ (624 ) 10,532 Provisional pricing (gains) losses (2,143 ) (2,093 ) (625 ) 6,625 15,807 $ (4,236 ) 14,839 Environmental accruals 1,989 — 2,860 — — $ 1,989 14 Foreign exchange loss (gain) 3,850 (108 ) 900 (5,667 ) (4,482 ) $ 3,742 (2,444 ) Ramp-up and suspension costs 16,323 11,336 7,575 5,092 5,242 $ 27,659 11,447 (Gain) loss on disposition of properties, plants, equipment and mineral interests (75 ) — — 19 5 $ (75 ) (3 ) Adjustments of inventory to net realizable value 2,997 4,521 487 1,405 754 $ 7,518 754 Monetization of zinc hedges 5,467 (579 ) 16,664 — — $ 4,888 — Other — — 939 — — $ — — Adjusted income (loss) applicable to common stockholders $ 15,133 $ 6,587 $ 14,225 $ (11,949 ) $ 20,093 $ 21,720 $ 25,493 Weighted average shares - basic 604,088 600,075 596,959 554,531 539,401 602,077 538,943 Weighted average shares - diluted 604,088 600,075 596,959 554,531 539,401 602,077 539,401 Basic adjusted net income (loss) per common stock (in cents) 0.03 0.01 0.02 (0.02 ) 0.04 0.04 0.05 Diluted adjusted net income (loss) per common stock (in cents) 0.03 0.01 0.02 (0.02 ) 0.04 0.04 0.05 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 June 30, Six Months Ended June 30, 2023 2022 2023 2022 Cash provided by operating activities $ 23,777 $ 40,183 $ 64,380 $ 78,092 Less: Additions to properties, plants equipment and mineral interests $ (51,468 ) $ (34,329 ) $ (105,911 ) $ (55,807 ) Free cash flow $ (27,691 ) $ 5,854 $ (41,531 ) $ 22,285 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, and Casa Berardi operating segments excludes exploration and pre-development expense, as it is a discretionary expenditure and not a component of the mines’ operating performance. Dollars are in thousands Total Silver Operations Six Months Ended June 30, Years Ended December 31, 2023 2022 2021 2020 Cash provided by operating activities $ 787,521 $ 151,673 $ 188,434 $ 271,309 $ 176,105 Exploration $ 12,719 $ 2,208 $ 5,920 $ 4,591 $ - Less: Additions to properties, plants equipment and mineral interests $ (233,629 ) $ (46,510 ) $ (87,890 ) $ (53,768 ) $ (45,461 ) Free cash flow $ 566,611 $ 107,371 $ 106,464 $ 222,132 $ 130,644 TABLE A Assay Results – Q2 2023 Greens Creek (Alaska) Zone Drillhole Number Drillhole Azm/Dip Sample From (feet) Sample To (feet) Est. True Width (feet) Silver (oz/ton) Gold (oz/ton) Zinc (%) Lead (%) Depth From Mine Portal (feet) 9A GC6023 207/21 239.8 250.2 10.1 10.7 0.04 8.8 6.5 -19 200 South GC5854 243/-31 110.0 112.0 0.7 0.9 0.00 11.1 4.5 -1357 200 South GC5872 239/-89 1173.0 1188.0 15.0 10.6 0.09 0.2 0.1 -2477 200 South GC5891 157/-64 103.4 106.8 3.3 15.2 0.02 19.5 7.5 -1399 200 South GC5891 157/-64 715.0 725.0 8.1 17.0 0.19 3.3 1.9 -1950 200 South GC5891 157/-64 753.5 755.0 1.2 4.1 0.01 14.7 8.9 -1950 200 South GC5913 305/49 418.0 422.0 2.2 0.9 0.24 4.9 1.7 -1449 East Zone GC5926 74/21 573.5 577.0 2.4 8.1 0.08 1.0 0.5 860 East Zone GC5926 74/21 585.2 590.0 3.2 14.8 0.14 4.5 2.0 860 East Zone GC5937 63/-28 322.0 328.0 5.7 12.6 0.05 7.7 3.5 402 East Zone GC6027 49/47 145.0 151.8 3.6 20.9 0.04 3.4 2.2 10 East Zone GC6027 49/47 158.0 163.0 2.7 13.9 0.02 2.7 1.7 10 Gallagher Zone GC5931 63/-60 200.0 202.0 1.8 6.9 0.24 2.0 1.0 -926 Gallagher Zone GC5931 63/-60 211.0 260.5 45.3 7.9 0.22 10.5 4.8 -976 Gallagher Zone GC5931 63/-60 377.0 389.5 12.5 3.7 0.12 8.8 3.8 -1089 Gallagher Zone GC5931 63/-60 463.0 464.0 0.9 2.8 0.02 9.1 5.9 -1154 Gallagher Zone GC5931 63/-60 480.5 486.0 4.9 6.4 0.06 4.4 2.0 -1173 Gallagher Zone GC5945 75/-59 208.0 213.5 5.2 10.6 0.15 1.9 1.2 -992 Gallagher Zone GC5945 75/-59 235.0 237.0 1.9 27.0 0.19 5.4 3.4 -992 Gallagher Zone GC5945 75/-59 244.0 266.0 13.7 7.8 0.17 7.1 4.2 -1067 Gallagher Zone GC5957 67/-81 210.3 212.3 2.0 7.4 0.04 3.9 2.1 -957 Gallagher Zone GC5971 74/-51 427.0 432.0 4.4 9.5 0.21 7.0 3.3 -1088 Gallagher Zone GC5971 74/-51 469.3 484.2 14.9 9.0 0.07 2.6 1.3 -1127 Gallagher Zone GC5974 76/-39 268.8 298.0 22.4 3.6 0.07 6.0 2.6 -920 Gallagher Zone GC5985 63/-21 78.5 92.0 9.0 15.0 0.28 2.6 1.3 -752 Gallagher Zone GC5985 63/-21 212.0 242.0 24.9 3.9 0.09 8.4 3.5 -804 Gallagher Zone GC5985 63/-21 306.5 322.0 15.3 3.9 0.03 6.8 3.8 -835 Gallagher Zone GC5988 63/-36 75.0 80.3 5.0 26.1 0.08 4.7 2.4 -769 Gallagher Zone GC5988 63/-36 89.5 115.7 25.7 9.8 0.19 10.8 2.9 -786 Gallagher Zone GC5988 63/-36 202.0 222.7 20.6 4.8 0.11 5.5 2.6 -847 Gallagher Zone GC5988 63/-36 289.0 291.0 2.0 9.7 0.03 8.3 5.3 -897 Gallagher Zone GC5989 63/-59 57.0 61.5 4.3 7.3 0.10 7.7 4.0 -776 Gallagher Zone GC5989 63/-59 86.5 119.0 32.4 3.4 0.10 7.4 3.4 -812 Gallagher Zone GC5990 63/-87 53.0 62.0 9.0 4.1 0.06 9.7 3.9 -784 Gallagher Zone GC5993 73/-23 70.0 75.0 3.5 7.5 0.11 17.6 9.3 -758 Gallagher Zone GC5993 73/-23 150.5 250.5 74.0 4.7 0.13 6.9 2.6 -819 Gallagher Zone GC5993 73/-23 320.0 329.0 8.6 4.7 0.04 11.3 9.1 -876 Gallagher Zone GC5999 63/-49 57.5 67.0 9.5 2.8 0.06 8.1 4.2 -771 Gallagher Zone GC5999 63/-49 100.5 113.5 13.0 3.0 0.13 9.5 3.0 -806 Gallagher Zone GC6001 60/-29 95.7 233.0 111.1 4.2 0.13 9.2 3.9 -802 Gallagher Zone GC6003 63/-11 111.0 115.0 2.9 14.2 0.18 3.5 1.6 -832 Gallagher Zone GC6003 63/-11 450.0 452.0 1.9 20.0 0.08 0.5 0.3 -1197 Gallagher Zone GC6003 63/-11 455.0 458.0 2.4 14.5 0.03 0.7 0.3 -1177 Gallagher Zone GC6007 243/25 86.5 94.0 5.1 16.9 0.57 5.9 2.7 -668 Gallagher Zone GC6007 243/25 141.0 158.2 12.2 5.2 0.07 4.4 2.0 -649 Gallagher Zone GC6008 244/52 35.0 45.5 7.9 3.5 0.06 4.9 2.3 -669 Gallagher Zone GC6014 257/-84 43.0 51.4 8.3 5.0 0.06 4.7 2.6 -741 Gallagher Zone GC6014 257/-84 496.5 543.5 41.3 21.6 0.07 0.6 0.4 -1239 Gallagher Zone GC6014 257/-84 556.5 559.0 2.2 20.5 0.13 3.0 1.6 -1239 Gallagher Zone GC6021 57/-45 13.3 18.5 5.2 2.4 0.04 10.7 5.1 -735 Gallagher Zone GC6021 57/-45 124.0 132.0 4.6 7.2 0.08 3.6 1.8 -812 Gallagher Zone GC6021 57/-45 192.0 195.0 2.8 0.3 0.39 0.0 0.0 -859 Gallagher Zone GC6022 63/-11 17.8 33.4 12.4 12.5 0.21 9.5 4.6 -722 Gallagher Zone GC6022 63/-11 60.8 73.0 10.0 7.5 0.08 5.5 2.2 -730 Gallagher Zone GC6022 63/-11 160.0 190.0 26.9 4.1 0.10 3.9 1.8 -750 Upper Plate GC6004 313/77 500.5 502.2 1.7 24.3 0.00 1.1 0.6 306 Upper Plate GC6020 282/63 590.5 597.5 7.0 10.8 0.06 14.1 6.0 344 Upper Plate GC6025 27/47 750.4 752.6 2.1 26.1 0.26 16.6 6.6 372 Upper Plate GC6036 40/73 490.0 503.5 13.5 17.0 0.07 6.4 3.2 304 Upper Plate GC6036 40/73 526.5 529.0 2.5 13.6 0.03 13.4 4.1 336 Upper Plate GC6039 47/68 485.5 500.5 13.4 15.2 0.04 1.1 0.5 328 Upper Plate GC6039 47/68 534.0 537.5 3.4 21.2 0.02 18.0 6.5 288 Upper Plate GC6041 61/67 476.2 491.0 13.2 23.0 0.05 6.2 3.1 278 Upper Plate GC6041 61/67 512.5 515.3 2.8 13.6 0.02 23.4 6.9 302 Upper Plate GC6044 59/73 467.0 468.5 1.5 4.2 0.00 14.8 8.0 275 Upper Plate GC6044 59/73 478.8 489.0 10.1 12.2 0.06 5.2 2.7 295 Upper Plate GC6044 59/73 508.5 509.5 1.0 19.5 0.02 7.7 2.6 315 Upper Plate GC6048 75/67 461.0 462.0 1.0 25.7 0.02 14.8 2.1 251 Upper Plate GC6050 88/64 432.0 434.5 2.3 16.3 0.01 13.0 7.3 219 Upper Plate GC6054 100/71 499.0 502.0 2.9 0.3 2.35 0.2 0.2 295 Upper Plate GC5979 14/74 492.0 510.0 18.0 20.7 0.06 1.7 0.7 319 Upper Plate GC5979 14/74 545.0 549.5 4.3 33.3 0.03 13.8 5.4 263 Upper Plate GC6004 313/77 500.5 502.2 1.7 24.3 0.00 1.1 0.6 306 Upper Plate GC6025 27/47 750.4 752.6 2.1 26.1 0.26 16.6 6.6 372 West Definition GC5933 73/-19 169.0 194.0 23.3 4.5 0.21 5.9 0.9 -534 West Definition GC5933 73/-19 283.5 289.0 4.8 2.1 0.05 17.3 1.7 -570 West Definition GC5933 73/-19 500.3 502.0 1.6 9.5 0.01 3.2 1.4 -651 West Definition GC5933 73/-19 538.3 539.3 1.0 10.3 0.05 15.2 3.9 -669 West Definition GC5934 63/-43 321.5 322.5 1.0 14.5 0.03 3.7 1.7 332 West Definition GC5934 63/-43 327.5 328.5 1.0 8.3 0.04 2.6 1.2 332 West Definition GC5939 72/-14 176.5 202.5 21.9 4.7 0.23 10.2 1.9 -528 West Definition GC5939 72/-14 296.5 297.5 0.9 5.2 0.04 12.6 1.9 -565 West Definition GC5939 72/-14 527.0 530.5 3.3 7.9 0.03 6.4 2.9 -621 West Definition GC5940 45/-58 314.0 318.0 3.8 41.2 0.46 5.2 2.5 305 West Definition GC5944 49/-49 320.5 332.5 12.0 10.1 0.05 1.9 0.9 308 West Definition GC5947 34/-49 314.0 316.0 2.0 9.9 0.03 1.5 0.6 311 West Definition GC5948 72/-10 581.9 593.0 10.2 5.8 0.04 12.7 3.2 -590 West Definition GC5950 75/-47 327.5 340.0 12.2 8.8 0.05 3.5 1.9 304 West Definition GC5952 73/-40 309.0 312.0 3.0 5.4 0.02 5.4 2.6 345 West Definition GC5952 73/-40 334.7 355.0 17.6 5.9 0.01 3.4 2.1 318 West Definition GC5954 92/-56 342.0 344.0 1.9 38.2 0.20 4.3 0.8 -746 West Definition GC5954 92/-56 358.5 361.0 2.4 62.8 0.34 1.0 0.4 -741 West Definition GC5956 67/-11 558.0 563.0 4.8 10.5 0.04 11.5 3.6 -582 West Definition GC5956 67/-11 578.5 580.0 1.4 20.2 0.09 19.2 7.4 -587 West Definition GC5958 84/-42 343.0 355.0 11.4 6.6 0.09 2.4 1.4 285 West Definition GC5958 84/-42 360.0 372.0 11.4 14.0 0.08 7.6 5.1 267 West Definition GC5964 67/-20 168.0 182.0 11.2 6.3 0.15 8.9 1.5 -536 West Definition GC5964 67/-20 271.8 275.1 3.2 2.4 0.07 19.8 1.0 -571 West Definition GC5973 62/-15 537.0 542.0 4.2 4.4 0.09 17.7 4.9 -609 West Definition GC5973 62/-15 554.5 558.5 3.4 7.8 0.03 14.4 5.6 -613 West Definition GC5976 61/-22 162.0 179.0 15.8 4.4 0.22 6.7 0.8 -531 West Definition GC5976 61/-22 496.6 505.2 8.3 13.0 0.11 14.4 3.4 -635 West Definition GC5980 61/-27 477.5 486.0 8.1 7.7 0.04 8.0 3.3 -670 West Definition GC5982 56/-14 546.0 557.5 9.4 9.2 0.06 31.6 10.8 -579 West Definition GC5986 54/-28 455.9 461.8 5.7 10.3 0.05 16.4 2.5 -676 West Definition GC5987 57/-10 558.5 559.5 0.7 9.5 0.02 9.0 3.2 -544 West Definition GC5992 53/-34 443.2 449.4 6.2 2.9 0.03 14.3 2.3 -718 West Definition GC6000 50/-21 536.0 554.0 15.2 63.4 0.84 11.9 3.8 -641 West Definition GC6005 71/-7 606.5 620.0 11.6 7.4 0.04 12.3 2.6 -530 West Definition GC6009 47/-30 478.2 489.0 10.0 4.6 0.13 6.9 1.6 -704 West Definition GC6013 71/-2 613.2 621.6 7.4 23.9 0.04 8.9 3.6 -519 West Definition GC6019 54/-7 541.0 544.0 2.7 7.0 0.06 14.7 4.0 -543 West Definition GC6019 54/-7 548.5 549.5 0.9 12.2 0.06 5.6 2.8 -543 West Definition GC6019 54/-7 554.0 555.0 0.9 7.6 0.08 3.3 1.3 -543 West Definition GC6028 54/-11 515.8 519.0 3.1 22.3 0.29 8.8 3.3 -585 West Definition GC6032 55/-2 545.9 551.9 5.5 16.7 0.20 7.3 2.5 -517 West Definition GC6040 60/-5 545.0 546.5 1.3 18.6 0.04 10.1 5.4 -528 West Definition GC6042 65/-23 468.4 470.5 2.1 5.6 0.03 18.7 4.5 -678 West Definition GC6049 85/-12 563.0 571.1 6.0 2.2 0.02 19.0 2.8 -565 West Definition GC6055 65/-18 501.5 506.0 3.3 3.0 0.04 26.7 4.6 -603 West Definition GC6056 52/2 322.0 324.5 1.8 3.6 0.13 11.3 0.1 -451 West Definition GC6058 52/6 658.1 665.3 5.4 7.5 0.07 7.7 1.4 -391 West Definition GC6062 51/-13 495.5 501.0 5.1 4.6 0.05 20.6 4.6 -606 Keno Hill (Yukon) Zone Drillhole Number Drillhole Azm/Dip Sample From (feet) Sample To (feet) True Width (feet) Silver (oz/ton) Gold (oz/ton) Lead (%) Zinc (%) Depth From Surface (feet) Flame and Moth FMUG22-030 276/-10 164.7 167.6 2.6 4.9 0.01 1.5 0.3 368 Flame and Moth FMUG22-030 276/-10 193.4 197.1 3.4 16.5 0.00 2.5 0.5 372 Flame and Moth FMUG22-030 276/-10 209.3 220.1 10.4 9.7 0.01 2.6 1.7 374 Flame and Moth FMUG22-030 276/-10 227.4 228.1 0.8 34.4 0.00 2.0 3.3 377 Flame and Moth FMUG22-031 268/-16 200.0 207.8 5.9 16.0 0.00 0.9 0.2 398 Flame and Moth FMUG22-031 268/-16 216.2 222.3 5.2 4.1 0.00 1.6 0.4 400 Flame and Moth FMUG22-031 268/-16 230.6 231.7 0.9 7.4 0.00 1.6 0.6 404 Flame and Moth FMUG22-032 262/12 271.8 286.3 8.2 1.8 0.01 0.7 0.2 277 Flame and Moth FMUG22-032 262/12 293.8 305.1 8.8 9.6 0.00 1.1 1.3 270 Flame and Moth FMUG22-034 262/-6 191.9 193.2 0.7 1.2 0.00 1.9 0.1 360 Flame and Moth FMUG22-034 262/-6 206.0 207.2 0.6 6.3 0.01 0.1 0.2 361 Flame and Moth FMUG22-034 262/-6 230.9 253.3 16.5 1.7 0.00 0.5 0.3 365 Flame and Moth FMUG22-036 262/-25 202.9 207.0 2.6 8.4 0.00 0.9 0.2 429 Flame and Moth FMUG22-036 262/-25 215.9 241.6 21.3 5.9 0.00 2.5 0.5 440 Flame and Moth FMUG22-037 256/-2 255.1 257.7 1.1 2.7 0.00 0.6 0.2 346 Flame and Moth FMUG22-039 252/-6 276.2 276.9 0.4 4.1 0.00 0.9 0.8 366 Flame and Moth FMUG22-039 252/-6 292.7 295.3 1.5 15.3 0.00 0.7 2.6 367 Flame and Moth FMUG22-039 252/-6 301.8 303.3 0.8 11.9 0.00 0.1 0.3 368 Bermingham BMUG23-037 140/4 227.0 239.9 12.2 3.1 0.00 0.6 0.6 359 Bermingham BMUG23-037 140/4 259.6 262.5 2.8 2.2 0.00 0.1 1.1 357 Bermingham BMUG23-037 140/4 285.1 289.3 4.0 2.0 0.00 0.0 0.3 353 Bermingham BMUG23-037 140/4 425.2 426.2 0.5 10.6 0.00 0.1 0.3 339 Bermingham BMUG23-037 140/4 435.9 443.7 5.2 12.3 0.01 1.7 0.6 337 Bermingham BMUG23-038 140/-8 240.5 241.1 0.6 7.7 0.00 0.6 0.2 408 Bermingham BMUG23-038 140/-8 362.2 362.9 0.4 3.8 0.00 1.5 0.8 419 Bermingham BMUG23-038 140/-8 478.8 480.8 1.2 16.1 0.00 0.5 2.5 397 Bermingham BMUG23-038 140/-8 520.0 521.2 0.7 3.1 0.00 0.5 0.5 433 Bermingham BMUG23-039 137/-1 227.6 230.6 2.7 19.7 0.00 0.1 2.0 378 Bermingham BMUG23-039 137/-1 447.8 452.8 3.5 4.9 0.00 0.5 0.2 373 Bermingham BMUG23-040 134/-4 236.9 238.2 1.2 1.4 0.00 1.3 0.0 358 Bermingham BMUG23-040 134/-4 246.1 248.3 2.0 8.6 0.00 0.1 1.0 357 Bermingham BMUG23-040 134/-4 295.3 295.7 0.4 30.0 0.00 4.6 0.3 352 Bermingham BMUG23-040 134 / -4 406.1 414.8 4.2 1.6 0.00 0.5 1.0 326 Bermingham BMUG23-041 131 / 7 215.1 226.6 11.2 3.5 0.00 0.4 0.4 342 Bermingham BMUG23-041 131 / 7 245.2 246.1 0.8 23.6 0.00 1.9 0.2 339 Bermingham BMUG23-041 131 / 7 354.3 354.7 0.2 5.4 0.00 0.7 2.0 319 Bermingham BMUG23-042 131 / 1 226.4 233.4 6.6 1.2 0.00 0.5 0.2 373 Bermingham BMUG23-042 131 / 1 423.6 425.0 0.7 2.9 0.00 0.8 3.5 363 Bermingham BMUG23-043 128/4 220.7 221.8 1.1 4.6 0.00 1.6 0.2 359 Bermingham BMUG23-043 128/4 236.2 239.3 2.9 1.5 0.00 0.1 0.5 358 Bermingham BMUG23-043 128/4 319.9 320.8 0.8 18.2 0.00 16.3 0.1 350 Bermingham BMUG23-043 128/4 403.0 406.0 1.7 0.1 0.00 0.1 0.0 340 Bermingham BMUG23-044 120/7 219.1 226.6 7.1 1.8 0.00 0.1 0.1 349 Bermingham BMUG23-044 120/7 232.7 235.7 2.8 120.9 0.01 1.5 3.3 346 Bermingham BMUG23-045 116/1 246.1 255.9 8.9 6.3 0.00 0.6 0.2 379 Bermingham BMUG23-046 105/12 243.6 244.1 0.4 86.2 0.01 4.4 4.4 322 Bermingham BMUG23-046 105/12 357.9 359.4 1.0 1.6 0.00 0.6 0.5 295 Bermingham BMUG23-047 97/13 169.7 173.3 2.2 2.1 0.00 0.1 0.4 337 Bermingham BMUG23-047 97/13 291.3 300.6 5.7 18.4 0.00 0.9 1.1 312 Bermingham BMUG23-047 97/13 310.5 311.2 0.5 2.0 0.00 0.7 0.5 307 Bermingham BMUG23-047 97/13 367.2 370.5 1.7 1.9 0.00 0.8 1.2 292 Bermingham BMUG23-048 134/-18 268.2 278.3 7.5 4.2 0.00 0.3 2.1 463 Bermingham BMUG23-049 128/-7 228.4 232.9 4.1 41.7 0.00 1.9 2.9 402 Bermingham BMUG23-050 119/-6 224.4 233.6 8.3 21.3 0.00 1.7 2.5 400 Bermingham BMUG23-050 119/-6 225.1 226.4 1.2 87.9 0.01 7.9 8.7 400 Bermingham BMUG23-050 119/-6 276.0 278.1 1.5 18.2 0.00 0.7 1.1 403 Bermingham BMUG23-050 119/-6 290.4 295.1 3.5 13.3 0.00 3.2 3.6 404 Bermingham BMUG23-051 119/-9 228.0 243.8 14.1 9.7 0.00 0.7 0.8 419 Bermingham BMUG23-051 119/-9 228.0 233.4 4.8 22.1 0.00 1.6 1.4 419 Bermingham BMUG23-051 119/-9 343.7 345.0 1.2 48.5 0.00 2.1 3.5 433 Bermingham BMUG23-051 119/-9 458.2 470.6 11.2 2.8 0.00 0.8 0.5 447 Bermingham BMUG23-051 119/-9 482.1 490.0 7.1 1.0 0.00 0.2 0.4 450 Bermingham BMUG23-052 120/-19 244.5 255.0 7.8 47.5 0.00 0.8 0.2 457 Bermingham BMUG23-052 120/-19 244.5 245.0 0.4 40.3 0.00 2.1 0.1 457 Bermingham BMUG23-052 120/-19 254.1 255.0 0.7 531.9 0.02 8.0 0.2 461 Bermingham BMUG23-052 120/-19 266.2 267.7 1.1 6.3 0.00 3.6 0.0 465 Bermingham BMUG23-052 120/-19 276.6 283.9 5.5 22.6 0.00 0.5 1.8 470 Bermingham BMUG23-052 120/-19 536.0 565.0 21.8 2.5 0.01 0.4 0.2 555 Bermingham BMUG23-052 120/-19 538.5 544.9 4.8 5.0 0.02 0.9 0.1 555 Bermingham BMUG23-052 120/-19 573.4 590.6 11.1 44.9 0.01 1.7 0.8 569 Bermingham BMUG23-052 120/-19 576.9 586.5 6.1 79.4 0.02 3.0 1.3 569 Bermingham Main Vein K-23-0838 270/-55 1071.0 1080.9 9.2 0.5 0.00 0.1 0.3 780 Bermingham Townsite Vein K-23-0839 281/-66 1299.9 1312.1 9.2 25.5 0.00 0.9 0.3 1139 Bermingham Townsite Vein Including 1309.8 1312.1 1.7 108.2 0.01 4.5 1.0 1142 View source version on businesswire.com: https://www.businesswire.com/news/home/20230808153211/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.com Website: http://www.hecla.com
Hecla Mining Company (NYSE:HL) today announced second quarter 2023 financial and operating results. SECOND QUARTER HIGHLIGHTS Operational Produced 3.8 million ounces of silver, 7.9 million ounces in the first half of the year; third highest silver production over a six-month period in Company history. Restarted the mill at Keno Hill, producing 184,264 ounces of silver, with full production expected by year-end. Lucky Friday's silver production of 1.3 million ounces was the highest since the first quarter of 2000. Silver production and cost guidance affirmed; gold production guidance adjusted based on reduced underground mining and wildfires-related suspension of operations at Casa Berardi. Financial Sales of $178.1 million, with 45% from silver and 35% from gold. Consolidated silver total cost of sales of $96.8 million and cash cost and AISC per silver ounce (each after by-product credits) of $3.32 and $11.63, respectively.3,4 Consolidated cash flow from operations of $23.8 million for the quarter, and year to date $64.4 million; with silver operations generating $62.2 million in cash flow from operations for the quarter and year to date $151.7 million. Silver operations generated $38.8 million in free cash flow for the quarter, and year to date $107.4 million.2 Since 2020, silver operations have generated cash flow from operations of $788 million and free cash flow of $566 million. Net loss applicable to common stockholders of $(15.8) million or $(0.03) per share and adjusted net income of $15.1 million or $0.03 per share.5 Strong balance sheet with $106.8 million in cash and cash equivalents, and available liquidity of $219 million. Environmental, Social, Governance Strong safety performance with an all-injury frequency rate of 1.18, the lowest in Company history. Strategic Acquired ATAC Resources on July 7th for $18.8 million in Hecla stock, adding a massive land package of over 700 square miles comprised of the Rackla and Connaught properties in the Yukon. "Our silver operations reported another solid quarter of operational and financial performance with strong free cash flow generation and our lowest all-injury frequency rate in our history," said Phillips S. Baker Jr., President and CEO. "Greens Creek continued its strong and consistent performance, Lucky Friday produced the most silver in a quarter since 2000, and with the service hoist now operational, this mine is closer to achieving 425,000 ore tons in annual throughput by year-end, and we restarted the Keno Hill mill during the quarter." Baker continued, "Our silver mines have generated $107 million in free cash flow in the first half of the year and in excess of $560 million since 2020. With this free cash flow, we are investing to extend the mine lives and increase the production of our mines making Hecla the fastest growing established silver producer with 17 million ounces of production expected this year and about 20 million ounces by 2025, all in the U.S. and Canada." Baker concluded, “Silver is an essential metal in powering the transition to a green economy, particularly photovoltaics, whose rapid growth is now using 15 to 20% of global annual silver production. Hecla, with our growing, long-lived, low-cost mines, is well positioned to reliably provide the silver the world needs." 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 2Q-2023 1Q-2023 4Q-2022 3Q-2022 2Q-2022 YTD-2023 YTD-2022 FINANCIAL AND PRODUCTION SUMMARY Sales $ 178,131 $ 199,500 $ 194,825 $ 146,339 $ 191,242 $ 377,631 $ 377,741 Total cost of sales $ 140,472 $ 164,552 $ 169,807 $ 137,892 $ 153,979 $ 305,024 $ 295,049 Gross profit $ 37,659 $ 34,948 $ 25,018 $ 8,447 $ 37,263 $ 72,607 $ 82,692 Net(loss) applicable to common stockholders $ (15,832 ) $ (3,311 ) $ (4,590 ) $ (23,664 ) $ (13,661 ) $ (19,143 ) $ (9,646 ) Basic (loss) per common share (in dollars) $ (0.03 ) $ (0.01 ) $ (0.01 ) $ (0.04 ) $ (0.03 ) $ (0.03 ) $ (0.02 ) Adjusted EBITDA1 $ 67,739 $ 61,903 $ 62,261 $ 26,555 $ 70,474 $ 129,642 $ 128,676 Net Debt to Adjusted EBITDA1 2.1 1.9 Cash provided by operating activities $ 23,777 $ 40,603 $ 36,120 $ (24,322 ) $ 40,183 $ 64,380 $ 78,092 Capital Expenditures $ (51,468 ) $ (54,443 ) $ (56,140 ) $ (37,430 ) $ (34,329 ) $ (105,911 ) $ (55,807 ) Free Cash Flow2 $ (27,691 ) $ (13,840 ) $ (20,020 ) $ (61,752 ) $ 5,854 $ (41,531 ) $ 22,285 Silver ounces produced 3,832,559 4,040,969 3,663,433 3,549,392 3,645,454 7,873,528 6,970,162 Silver payable ounces sold 3,360,694 3,604,494 3,756,701 2,479,724 3,387,909 6,965,188 6,075,170 Gold ounces produced 35,251 39,717 43,634 44,747 45,719 74,822 87,361 Gold payable ounces sold 31,961 39,619 40,097 40,443 44,225 71,580 85,278 Cash Costs and AISC, each after by-product credits Silver cash costs per ounce 3 $ 3.32 $ 2.14 $ 4.79 $ 3.43 $ (1.14 ) $ 2.70 $ (0.07 ) Silver AISC per ounce 4 $ 11.63 $ 8.96 $ 13.98 $ 12.93 $ 8.08 $ 10.21 $ 7.75 Gold cash costs per ounce 3 $ 1,658 $ 1,775 $ 1,696 $ 1,349 $ 1,371 $ 1,725 $ 1,440 Gold AISC per ounce 4 $ 2,147 $ 2,392 $ 2,075 $ 1,669 $ 1,605 $ 2,286 $ 1,680 Realized Prices Silver, $/ounce $ 23.67 $ 22.62 $ 22.03 $ 18.30 $ 20.68 $ 23.12 $ 22.45 Gold, $/ounce $ 1,969 $ 1,902 $ 1,757 $ 1,713 $ 1,855 $ 1,928 $ 1,867 Lead, $/pound $ 0.99 $ 1.02 $ 1.05 $ 0.95 $ 0.97 $ 1.00 $ 1.02 Zinc, $/pound $ 1.13 $ 1.39 $ 1.24 $ 1.23 $ 1.44 $ 1.26 $ 1.61 Sales in the second quarter declined by 11% to $178.1 million from the first quarter of 2023 ("prior quarter") due to lower quantities of all metals sold and lower realized lead and zinc prices, partially offset by higher precious metals prices. Gross profit increased to $37.7 million, an increase of 8% over the prior quarter, as lower total cost of sales attributable to lower quantities of metals sold offset lower sales. Net loss applicable to common stockholders was $(15.8) million in the second quarter due to: Increased ramp-up and suspension costs of $5.0 million, reflecting the impact of the suspension of operations at Casa Berardi in June due to wildfires in Quebec and the start-up of Keno Hill. Increased provision for closed operations and environmental matters of $2.1 million reflecting adjustments to the reclamation costs at the legacy Johnny M and Durita properties. An unrealized loss on investments of $5.6 million compared to a gain of $2.2 million, reflecting changes in the fair value of our marketable securities portfolio. A foreign exchange loss of $3.9 million compared to a gain of $0.1 million, reflecting the impact of the appreciation of the Canadian dollar on our monetary assets and liabilities. Increased income and mining tax expense of $1.9 million, reflecting increased taxable income from our U.S. assets. The above items were partly offset by: Lower adjustments of inventory to net realizable value of $1.5 million at our Casa Berardi and Nevada operations. Lower depreciation, depletion, and amortization expense of $6.3 million, reflecting the impact of the suspension of operations in June at Casa Berardi and lower silver sales. Consolidated silver’s total cost of sales in the second quarter decreased by 4% to $96.8 million from the prior quarter, primarily due to lower concentrate tons sold, partially offset by higher production costs at Lucky Friday. Cash costs and AISC per silver ounce, each after by-product credits, were $3.32 and $11.63, respectively.3,4 The increase in cash costs per ounce was due to higher production costs at Lucky Friday, lower consolidated silver production, and lower base metal by-product credits attributable to lower realized prices partially offset by higher Greens Creek gold production and realized price. AISC was further impacted by higher planned sustaining capital spending at the silver operations.3,4 Consolidated total gold cost of sales decreased by 32% to $43.6 million in the second quarter due to lower production costs attributable to the June wildfires-related suspension at Casa Berardi. Cash costs and AISC per gold ounce, each after by-product credits, were $1,658 and $2,147, respectively.3,4 The decrease in cash costs per ounce was attributable to lower production costs partially offset by lower gold production at Casa Berardi, with AISC also impacted by lower sustaining capital spend. Adjusted EBITDA for the second quarter increased by 9% to $67.7 million compared to the prior quarter due to higher gross profit, lower general and administrative expenses, and monetization of zinc hedges. During the quarter, average zinc prices declined to $1.15/lb., the lowest since April 2020 and a 19% decrease over the prior quarter. The Company monetized its zinc hedge contracts for proceeds of $7.6 million during the quarter. The ratio of net debt to Adjusted EBITDA increased to 2.1 for the second quarter due primarily to the wildfires-related suspension at the Casa Berardi mine. With Keno Hill's ongoing ramp-up to full production, and Casa Berardi resuming production, the Company expects net debt to Adjusted EBITDA ratio to decline to less than the Company's target of 2.1 Cash and cash equivalents at the end of the second quarter were $106.8 million and included $31 million drawn on the revolving credit facility. Available liquidity was $219 million as of the end of the quarter. Cash provided by operating activities was $23.8 million and decreased by $16.8 million over the prior quarter primarily due to unfavorable working capital changes partially attributable to the increase in product inventory at the Lucky Friday and Keno Hill as it commenced production during the quarter, and payment of 2022 incentive compensation. Capital expenditures were $51.5 million (net of finance leases of $15.2 million) in the second quarter, compared to $54.4 million in the prior quarter (net of finance leases of $0.9 million). Capital spend at Casa Berardi was for purchases of open pit equipment for approximately $11.9 million (partially financed by leases of $6.6 million) as the mine begins the transition from underground and open pit production to all production from surface operations. The increase in Greens Creek's capital spend was related to the timing of equipment purchases and seasonal surface projects, with the increase in Lucky Friday's capital spend also impacted by the timing of equipment purchases and the service hoist and coarse ore bunker projects. Keno Hill's capital spend was $3.5 million (net of finance leases of $6.7 million) and declined over the prior quarter as the mine began ramp-up to full production during the quarter. Free cash flow for the quarter was negative $27.7 million, compared to negative $13.8 million in the prior quarter. The decrease in free cash flow was attributable to lower cash flow from operations attributable to unfavorable working capital changes during the quarter.2 Forward Sales Contracts for Base Metals and Foreign Currency The Company uses financially settled forward sales contracts to manage exposures to zinc and lead price changes in forecasted concentrate shipments. On June 30, 2023, the Company had contracts covering approximately 39% of the forecasted payable lead production from 2023 - 2025 at an average price of $0.99 per pound. The Company also manages CAD exposure through forward contracts. At June 30, 2023, the Company had hedged approximately 48% of forecasted Casa Berardi CAD direct production costs through 2026 at an average CAD/USD rate of 1.32. The Company has also hedged approximately 22% of Casa Berardi capital costs through 2026 at 1.35. At Keno Hill, 54% of the total planned spend for 2023 and 2024 is hedged at an average CAD/USD rate of 1.36. OPERATIONS OVERVIEW Greens Creek Mine - Alaska Dollars are in thousands except cost per ton 2Q-2023 1Q-2023 4Q-2022 3Q-2022 2Q-2022 YTD-2023 YTD-2022 GREENS CREEK Tons of ore processed 232,465 233,167 230,225 229,975 209,558 465,632 421,245 Total production cost per ton $ 194.94 $ 198.60 $ 211.29 $ 185.34 $ 197.84 $ 196.77 $ 194.98 Ore grade milled - Silver (oz./ton) 12.8 14.4 13.1 13.6 14.0 13.6 13.9 Ore grade milled - Gold (oz./ton) 0.10 0.08 0.08 0.07 0.08 0.09 0.08 Ore grade milled - Lead (%) 2.5 2.6 2.6 2.4 3.0 2.6 2.9 Ore grade milled - Zinc (%) 6.5 6.0 6.7 6.3 7.2 6.2 6.9 Silver produced (oz.) 2,355,674 2,772,859 2,433,275 2,468,280 2,410,598 5,128,533 4,840,380 Gold produced (oz.) 16,351 14,884 12,989 11,412 12,413 31,235 23,815 Lead produced (tons) 4,726 5,202 4,985 4,428 5,184 9,928 10,067 Zinc produced (tons) 13,255 12,482 13,842 12,580 13,396 25,737 25,890 Sales $ 95,891 $ 98,611 $ 95,374 $ 60,875 $ 92,723 $ 194,502 $ 178,813 Total cost of sales $ (63,054 ) $ (66,288 ) $ (70,075 ) $ (52,502 ) $ (60,506 ) $ (129,342 ) $ (110,143 ) Gross profit $ 32,837 $ 32,323 $ 25,299 $ 8,373 $ 32,217 $ 65,160 $ 68,670 Cash flow from operations $ 43,302 $ 43,346 $ 44,769 $ 7,749 $ 41,808 $ 86,648 $ 98,103 Exploration $ 1,760 $ 448 $ 1,050 $ 3,776 $ 929 $ 2,208 $ 1,094 Capital additions $ (8,828 ) $ (6,658 ) $ (12,150 ) $ (6,988 ) $ (14,668 ) $ (15,486 ) $ (17,760 ) Free cash flow 2 $ 36,234 $ 37,136 $ 33,669 $ 4,537 $ 28,069 $ 73,370 $ 81,437 Cash cost per ounce, after by-product credits 3 $ 1.33 $ 1.16 $ 4.26 $ 2.65 $ (3.29 ) $ 1.23 $ (2.09 ) AISC per ounce, after by-product credits 4 $ 5.34 $ 3.82 $ 8.61 $ 7.07 $ 3.10 $ 4.51 $ 2.47 Greens Creek produced 2.4 million ounces of silver in the second quarter, a decrease of 15% over the prior quarter due to expected lower mined grades. Gold production increased by 10% to 16,351 ounces due to higher grades; zinc and lead production was consistent with the prior quarter. Throughput for the quarter was 2,555 tons per day ("tpd"), and the mine remains on track to achieve an annual throughput of 2,600 tpd by year-end. Sales in the second quarter were $95.9 million, a decrease of 3% over the prior quarter due to lower realized prices for base metals, primarily zinc, and lower payable metals sold (except gold), partially offset by higher realized prices for silver and gold. Total cost of sales were $63.1 million, and decreased by 5% over the prior quarter due to lower sales volumes, and lower production costs attributable to lower fuel prices. Cash costs and AISC per silver ounce, each after by-product credits, were $1.33 and $5.34 and increased over the prior quarter as lower production costs were offset by lower base metal by-product credits (primarily zinc, due to lower prices) and lower silver production. Increased AISC per silver ounce was attributable to higher sustaining capital spend of $8.8 million due to timing of equipment purchases and surface projects.3,4 Cash flow from operations was $43.3 million, in line with the prior quarter. Capital spend was $8.8 million (all sustaining) during the quarter, an increase of $2.2 million over the prior quarter due to the timing of equipment purchases and seasonal construction projects. Free cash flow for the quarter was $36.2 million, a slight decrease over the prior quarter due to higher exploration and capital spend. The Greens Creek mine generated $73.4 million in free cash flow during the first half of 2023.2 Lucky Friday Mine - Idaho Dollars are in thousands except cost per ton 2Q-2023 1Q-2023 4Q-2022 3Q-2022 2Q-2022 YTD-2023 YTD-2022 LUCKY FRIDAY Tons of ore processed 94,043 95,303 90,935 90,749 97,497 189,346 175,222 Total production cost per ton $ 248.65 $ 210.72 $ 232.73 $ 207.10 $ 211.45 $ 229.56 $ 227.30 Ore grade milled - Silver (oz./ton) 14.3 13.8 14.0 12.5 13.2 14.1 12.7 Ore grade milled - Lead (%) 9.1 8.8 9.1 8.5 8.8 9.0 8.5 Ore grade milled - Zinc (%) 4.2 4.1 4.1 4.2 3.9 4.2 3.8 Silver produced (oz.) 1,286,666 1,262,464 1,224,199 1,074,230 1,226,477 2,549,130 2,114,335 Lead produced (tons) 8,180 8,034 7,934 7,172 8,147 16,214 14,127 Zinc produced (tons) 3,338 3,313 3,335 3,279 3,370 6,651 5,822 Sales $ 42,648 $ 49,110 $ 45,434 $ 28,460 $ 35,880 $ 91,758 $ 73,920 Total cost of sales $ (32,190 ) $ (34,534 ) $ (32,819 ) $ (24,166 ) $ (30,348 ) $ (66,724 ) $ (59,613 ) Gross profit $ 10,458 $ 14,576 $ 12,615 $ 4,294 $ 5,532 $ 25,034 $ 14,307 Cash flow from operations $ 18,893 $ 46,132 $ (7,437 ) $ 11,624 $ 21,861 $ 65,025 $ 33,626 Capital additions $ (16,317 ) $ (14,707 ) $ (13,714 ) $ (16,125 ) $ (11,501 ) $ (31,024 ) $ (21,153 ) Free cash flow 2 $ 2,576 $ 31,425 $ (21,151 ) $ (4,501 ) $ 10,360 $ 34,001 $ 12,473 Cash cost per ounce, after by-product credits 3 $ 6.96 $ 4.30 $ 5.82 $ 5.23 $ 3.07 $ 5.64 $ 4.54 AISC per ounce, after by-product credits 4 $ 14.24 $ 10.69 $ 12.88 $ 15.98 $ 9.91 $ 12.48 $ 11.27 Lucky Friday produced 1.3 million ounces of silver, an increase of 2% over the prior quarter due to higher grades partially offset by lower throughput due to the local utility's unplanned replacement of the main electrical transformer. Second quarter silver production was the highest since the first quarter of 2000, marking the fifth consecutive quarter of silver production exceeding one million ounces. Throughput for the quarter was 1,033 tpd and is expected to increase to an annual rate of 425,000 tons by year end. Sales in the second quarter were $42.6 million, a decrease of 13% over the prior quarter, attributable to a combination of lower payable metals sold and lower realized base metals prices, partially offset by higher realized silver prices. Lower payable metals sold was due to an increase in silver concentrate inventory (impact of approximately $3 million) as maintenance activities impacted a smelter’s ability to take delivery of certain shipments at quarter end, with the sales deferred to the third quarter. Total cost of sales were $32.2 million, a decrease of 7% over the prior quarter primarily due to lower concentrate volumes sold. Production costs at the mine increased over the prior quarter due to higher labor costs related to the new Collective Bargaining Agreement ("CBA") signed in the first quarter of 2023 (CBA related costs are expected to be $2.5 million for the year), and higher consumables costs partially offset by lower fuel costs. Cash costs and AISC per silver ounce, each after by-product credits, were $6.96 and $14.24 respectively, with the increase primarily attributable to higher production costs, lower zinc by-product credits due to lower realized prices, partially offset by higher silver production.3,4 AISC per silver ounce was further unfavorably impacted by higher sustaining capital spend reflecting accelerated project completion.3,4 Cash flow from operations was $18.9 million, a decrease of $27.2 million over the prior quarter. The decrease was attributable to lower sales, higher production costs, unfavorable working capital changes and the prior quarter's favorable impact of $6.7 million receipt related to payment for a silver concentrate shipment shipped in the fourth quarter of 2022. Capital expenditures for the quarter totaled $16.3 million (net of $2.0 million in finance leases), comprised of approximately $9.2 million each in sustaining and growth capital, which included the coarse ore bunker and the service hoist projects. The service hoist project was completed in early August, and the coarse ore bunker project which will decouple the mill from the mine, is expected to be completed in the fourth quarter. Free cash flow was $2.6 million, a decrease of $28.8 million over the prior quarter primarily due to the decrease in cash flow from operations and higher capital spend during the quarter.2 Lucky Friday generated $34.0 million in free cash flow during the first half of 2023.2 Casa Berardi - Quebec Dollars are in thousands except cost per ton 2Q-2023 1Q-2023 4Q-2022 3Q-2022 2Q-2022 YTD-2023 YTD-2022 CASA BERARDI Tons of ore processed - underground 94,124 110,245 160,150 162,215 176,576 204,369 338,185 Tons of ore processed - surface pit 224,580 318,909 250,883 227,726 225,042 543,489 449,586 Tons of ore processed - total 318,704 429,154 411,033 389,941 401,618 747,858 787,771 Surface tons mined - ore and waste 2,461,196 2,136,993 2,657,638 2,822,906 2,149,412 4,598,189 4,041,751 Total production cost per ton $ 97.69 $ 107.95 $ 125.75 $ 114.52 $ 113.07 $ 103.58 $ 115.46 Ore grade milled - Gold (oz./ton) - underground 0.14 0.13 0.15 0.15 0.19 0.13 0.17 Ore grade milled - Gold (oz./ton) - surface pit 0.04 0.05 0.05 0.06 0.05 0.05 0.05 Ore grade milled - Gold (oz./ton) - combined 0.07 0.07 0.09 0.10 0.10 0.07 0.09 Gold produced (oz.) - underground 10,226 11,788 20,365 22,181 22,866 22,014 42,240 Gold produced (oz.) - surface pit 8,675 12,898 10,344 11,154 10,440 21,573 21,306 Gold produced (oz.) - total 18,901 24,686 30,709 33,335 33,306 43,587 63,546 Silver produced (oz.) - total 5,956 5,645 5,960 6,882 8,379 11,601 15,447 Sales $ 36,946 $ 50,998 $ 53,458 $ 56,939 $ 62,639 $ 87,944 $ 124,740 Total cost of sales $ (42,576 ) $ (62,998 ) $ (65,328 ) $ (59,532 ) $ (61,870 ) $ (105,574 ) $ (124,038 ) Gross (loss) profit $ (5,630 ) $ (12,000 ) $ (11,870 ) $ (2,593 ) $ 769 $ (17,630 ) $ 702 Cash flow from operations $ (8,148 ) $ (684 ) $ 10,188 $ 8,721 $ 7,417 $ (8,832 ) $ 15,506 Exploration $ 1,107 $ 1,054 $ 1,637 $ 2,624 $ 1,341 $ 2,161 $ 3,976 Capital additions $ (20,816 ) $ (17,086 ) $ (12,995 ) $ (10,771 ) $ (8,093 ) $ (37,902 ) $ (15,901 ) Free cash flow 2 $ (27,857 ) $ (16,716 ) $ (1,170 ) $ 574 $ 665 $ (44,573 ) $ 3,581 Cash cost per ounce, after by-product credits 3 $ 1,658 $ 1,775 $ 1,696 $ 1,349 $ 1,371 $ 1,725 $ 1,440 AISC per ounce, after by-product credits 4 $ 2,147 $ 2,392 $ 2,075 $ 1,669 $ 1,605 $ 2,286 $ 1,680 Casa Berardi produced 18,901 ounces of gold in the second quarter, a decrease of 23% over the prior quarter, primarily due to lower tons mined and milled because of wildfires-related suspension in June. The mill operated at an average of 4,600 tpd during the first two months of the quarter. Lower production during the quarter led to lower sales of $36.9 million, a 28% decrease over the prior quarter, and lower total cost of sales of $42.6 million, 32% lower compared to the prior quarter. Cash costs and AISC per gold ounce, each after by-product credits, were $1,658 and $2,147 respectively and decreased over the prior quarter due to lower production costs which offset the decline in gold production. AISC was further favorably impacted by lower sustaining capital spend as capital allocated to growth increased during the quarter.3,4 Cash flow from operations was negative $8.1 million, a decrease of $7.5 million over the prior quarter due to lower sales partially offset by lower costs. Capital spend for the quarter was $20.8 million (net of finance leases of $6.6 million) with $9.0 million and $18.4 million in sustaining and growth capital spend, respectively. Growth capital spend included the increase in equipment fleet of $11.9 million for the open pit operations as the mine is beginning to transition from an underground/open pit operation to an open pit only operation. Free cash flow for the quarter was negative $27.9 million, compared to negative free cash flow in the prior quarter of $16.7 million due to lower cash flow from operations and higher capital spending.2 The Company announced in May 2023 that the Casa Berardi mine is beginning to transition from an underground/open pit operation to an open pit only operation. As part of that transition, the lower margin East Mine underground operations were closed in July. The better margin stopes at the underground West Mine are planned to be mined until mid-2024, at which time most underground activity will stop except exploration. To increase the productivity of the surface operations, the Company has begun insourcing with the purchase of $11.9 million of mobile mining equipment, and another $4 million is expected to be spent in the third quarter. The Company expects to release an updated technical report in the first quarter of 2024. After closure of the underground operations in 2024, Casa Berardi will mine the 160 open pit until 2027 and is expected to be free cash flow positive. During a period of investment from 2028 to 2030, the Company expects no production while the permitting is being completed, investing in infrastructure and equipment, and exposing the first ore. Significant free cash flow is expected after 2030. East Mine closure and June’s wildfires have reduced production guidance by about 25,000 ounces in 2023 and have increased AISC per gold ounce (after by-product credits) guidance by approximately $200 per ounce. For further details, see the Guidance section of this release. Keno Hill - Yukon Territory At Keno Hill, the mill restarted and began processing lower grade, stockpiled ore in June, producing 184,264 ounces of silver for the quarter The mill operated as expected at 330 tpd, which is 73% of projected year-end throughput, processing stockpiled, lower-grade ore of 17 ounces per ton (“opt”). The mine advanced the primary development sufficiently to initiate ore mining. The mill reconciled well to the model in the quarter with slightly fewer tons and better grades resulting in the expected silver and lead content with more zinc. Silver production is expected to exceed 2.5 million ounces in 2023. Capital spend during the quarter was $3.4 million (net of $6.7 million in finance leases), and included mine development, surface infrastructure projects, and mill upgrades. Keno Hill will be included in silver operations reporting by the end of the year. EXPLORATION AND PRE-DEVELOPMENT Exploration and pre-development expenses totaled $6.9 million for the second quarter and $11.9 million for the first half of the year. Exploration activities during the quarter primarily focused on underground targets at Greens Creek, and Keno Hill. Highlights include: Keno Hill: Exploration drilling discovered high-grade mineralization in the Bermingham Townsite vein located within 500 feet of planned mine infrastructure. Greens Creek: Exploration and definition drilling continued to define and expand mineralization on strike of current mineralization with strong assay results from four targeted areas. Keno Hill, Yukon Territory At Keno Hill, $3.7 million of exploration is expected for the year. This quarter’s focus is on extending mineralization and resource conversion at the high-grade Bear Zone and defining new mineral resources at the Townsite Zone. During the first half, one underground drill completed over 11,000 feet of definition drilling, while two surface core drills completed over 13,000 feet of exploration drilling targeting the Bear and Townsite zones. Bear Zone: Definition drilling targeted extending the Bear Zone to the North towards the Ruby Fault, which is interpreted to constrain mineralization of both the Bermingham Main and Bear veins. At the Bear vein, drilling results suggest that grade continues and strengthens outside the currently programmed stopes and is open for expansion. Highlights include: 44.9 oz/ton silver, 1.7% lead, and 0.8% zinc over 11.1 feet 120.9 oz/ton silver, 1.5% lead, and 3.3% zinc over 2.8 feet 47.5 oz/ton silver, 0.8% lead, and 0.2% zinc over 7.8 feet 79.4 oz/ton silver, 3.0% lead, and 1.3% zinc over 6.1 feet Townsite Zone: High-grade mineralization was discovered in the Townsite vein approximately 2,000 feet southwest of the historical Townsite Mine stopes, and at a depth of 1,300 feet. This high-grade mineralization is open for expansion and continues to confirm the exploration potential within the district. Assay results to date include: 25.5 oz/ton silver, 0.9% lead, and 0.3% zinc over 9.2 feet, including 108.2 oz/ton silver, 4.5% lead, and 1.0% zinc over 1.7 feet Greens Creek, Alaska At Greens Creek, $8.0 million of exploration is focused on expanding mineralization both from surface and underground. Four underground core drills completed over 70,000 feet of drilling in 132 holes focused on resource conversion in the 200 South, East, Gallagher, Upper Plate, 9A, and West ore zones and exploration targeting the southern extensions of the 200 South, and Gallagher zones. Additionally, two helicopter supported core drills completed over 4,000 feet of drilling in 12 holes targeting near mine extensions to the Upper Plate and East ore zones. Assay results have been received for drilling in the 200 South, East, Gallagher, Upper Plate, and West areas, and results continue to confirm and expand mineral zones. Highlights include: 200 South Zone: 17.0 oz/ton silver, 0.19 oz/ton gold, 3.3% zinc, and 1.9% lead over 8.1 feet East Zone: 12.6 oz/ton silver, 0.05 oz/ton gold, 7.7% zinc, and 3.5% lead over 5.7 feet 20.9 oz/ton silver, 0.04 oz/ton gold, 3.4% zinc, and 2.2% lead over 3.6 feet Gallagher Zone: 7.9 oz/ton silver, 0.22 oz/ton gold, 10.5% zinc and 4.8% lead over 45.3 feet 15.0 oz/ton silver, 0.28 oz/ton gold, 2.6% zinc, and 1.3% lead over 9.0 feet 9.8 oz/ton silver, 0.19 oz/ton gold, 10.8% zinc, and 2.9% lead over 25.7 feet 21.6 oz/ton silver, 0.07 oz/ton gold, 0.6% zinc, and 0.4% lead over 41.3 feet Upper Plate Zone: Underground and surface drilling has expanded resources over 600 and 300 feet of strike length, respectively. Initial surface drillholes completed to date have intercepted significant lengths of base metal rich white ore lithologies. Assay results from these initial surface drillholes are expected in the third quarter. Results to date indicate that drilling is upgrading and expanding mineralization in the Upper Plate Zone. Highlights from this drilling include: 23.0 oz/ton silver, 0.05 oz/ton gold, 6.2% zinc and 3.1% lead over 13.2 feet 20.7 oz/ton silver, 0.06 oz/ton gold, 1.7% zinc, and 0.7% lead over 18.0 feet West Zone: Underground drilling expanded the strike length 550 feet with strong, high-grade mineralization over significant widths. Highlights from this drilling include: 63.4 oz/ton silver, 0.84 oz/ton gold, 11.9% zinc and 3.8% lead over 15.2 feet 13.0 oz/ton silver, 0.11 oz/ton gold, 14.4% zinc, and 3.4% lead over 8.3 feet Detailed complete drill assay highlights can be found in Table A at the end of the release. 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 September 7, 2023, to stockholders of record on August 24, 2023. The second quarter realized silver price was $23.67, satisfying the criterion for the Company’s common stock silver-linked dividend policy component. 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 October 2, 2023, to stockholders of record on September 15, 2023. 2023 GUIDANCE 6 The Company has updated its annual gold production, cost, and capital guidance as below. There is no change to silver production guidance. Gold production guidance for Greens Creek is increased to reflect higher gold production. Wildfires-related suspension of operations in June and the closure of the East Mine underground operations has resulted in lower expected gold production for 2023. Three-year gold production outlook has also decreased to include the closure of underground operations in mid-2024, and transition to full surface operations in 2024. 2023 Production Outlook Silver Production (Moz) Gold Production (Koz) Silver Equivalent (Moz) Gold Equivalent (Koz) Previous Current Previous Current Previous Current 2023 Greens Creek * 9.0 - 9.5 50.0 - 55.0 55.0 - 65.0 21.0 - 22.0 21.5 - 22.5 255 – 265 255 - 270 2023 Lucky Friday * 4.5 - 5.0 N/A N/A 8.5 - 9.0 8.5 - 9.0 105 - 110 105 - 110 2023 Casa Berardi N/A 110.0 - 115.0 85.0 - 95.0 9.0 - 9.5 7.0 - 8.0 110 – 115 85 – 95 2023 Keno Hill* 2.5 - 3.0 N/A N/A 2.5 - 3.0 2.5 - 3.0 35 - 40 35 - 40 2023 Total 16.0 - 17.5 160.0 - 170.0 140.0 - 160.0 41.0 - 44.5 40.0 - 43.0 505 – 535 480 – 520 2024 Total 17.5 - 18.5 145.0 - 161.0 105.0 - 125.0 42.5 - 44.5 38.5 - 41.5 510 - 540 465 - 505 2025 Total 18.5 - 20.0 142.0 - 161.5 100.0 - 115.0 41.0 - 44.0 38.0 - 41.0 495 - 535 460 – 495 * Equivalent ounces include Lead and Zinc production 2023 Cost Outlook At Greens Creek, guidance for cash costs, per silver ounce (net of by-products) has increased slightly to reflect lower zinc prices by-product credits due to lower zinc prices. Guidance for AISC, per silver ounce (each after by-product credits) has decreased due to higher expected gold production, and lower planned sustaining capital spend. At Lucky Friday, guidance for cash costs per silver ounce (each after by-product credits) is increased due to higher expected labor costs attributable to the CBA, and lower zinc by-product credits due to lower zinc prices. Lucky Friday guidance for AISC, per silver ounce (each after by-product credits) has been increased to reflect higher expected sustaining capital. Impact of the CBA changes on labor costs is approximately $2.5 million in 2023. Consolidated AISC per silver ounce (after by-product credits) is unchanged. At Casa Berardi mine, increase in cash costs and AISC, per gold ounce, each after by-product credits, is primarily due to lower gold production due to wildfires-related suspension of operations in June and closure of the East Mine operations. Costs of Sales (million) Cash cost, after by-product credits, per silver/gold ounce3 AISC, after by-product credits, per produced silver/gold ounce4 Previous Current Previous Current Previous Current Greens Creek 245 245 $0.00 - $0.25 $0.00 - $0.50 $6.00 - $6.75 $5.25 - $5.75 Lucky Friday 128 131 $2.00 - $2.50 $4.00 - $4.75 $8.50 - $9.50 $11.50 - $13.00 Keno Hill 40 40 $11.00 - $13.50 $11.00 - $13.50 $12.25 - $14.75 $12.25 - $14.75 Total Silver 413 416 $2.50 - $3.00 $3.00 - $4.00 $10.25 - $11.50 $10.25 - $11.50 Casa Berardi 220 215 $1,450 - $1,550 $1,750 - $1,950 $1,975 - $2,050 $2,000 - $2,250 2023 Capital and Exploration Outlook Consolidated capital guidance is increased for all operations except Greens Creek. At the Lucky Friday, increase in capital guidance is attributable to higher growth capital spend primarily related to the service hoist project, which was commissioned in early August. Increase in sustaining capital spend is attributable to increased development and timing of receipt of mobile equipment. At Keno Hill, increase in capital is attributable to mill upgrades, and increased underground development. At Casa Berardi, the increase in capital is primarily attributable to growth capital, which comprises the addition of surface equipment fleet (approximately $16 million) and capitalization of 160 pit waste stripping costs. Sustaining capital spend at the mine is guided lower due to the allocation of stripping costs to growth capital. Guidance for exploration and pre-development expenditures is unchanged at $32.5 million. (millions) Previous Current Current - Sustaining Current - Growth Capital expenditures $190 - $200 $225 - $235 $114 - $119 $111 - $116 Greens Creek $49 - $52 $47 - $50 $43 - $45 $4 - $5 Lucky Friday $48 - $51 $59 - $62 $34 - $36 $25 - $26 Casa Berardi $51 - $53 $72 - $74 $36 - $37 $36 - $37 Keno Hill $42 - $44 $47 - $49 $0.5 - $1 $46.5 - $48 Keno Hill Ramp Up Costs $9 $13 MANAGEMENT CHANGES Hecla today announced Lauren Roberts, Senior Vice President, and Chief Operating Officer, is retiring at the end of 2023 after 12 years of service. Lauren’s significant contributions during his tenure at Hecla include managing the challenges of COVID at our operations, implementing the underhand closed bench mining method at Lucky Friday, and acquiring Alexco. He began his career with Hecla in the 1980s and returned as the Chief Operating Officer five years ago; his leadership has been instrumental in Hecla’s production growth and improved safety performance. Carlos Aguiar will be appointed Vice President, Operations. Carlos has held several positions with the Company in the past 27 years and has been Vice President and General Manager of San Sebastian from 2016 to 2021 and Vice President and General Manager of Lucky Friday mine since 2021. Carlos will have the four operations reporting to him and will report to Lauren. CONFERENCE CALL AND WEBCAST A conference call and webcast will be held on Wednesday, August 9, 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/295670289 or www.hecla.com under Investors. VIRTUAL INVESTOR EVENT Hecla will be holding a Virtual Investor Event on Wednesday, August 9, 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 Financial, 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.com or 208-769-4100. One-on-One meeting URL: https://calendly.com/2023-aug-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, and Casa Berardi 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 total cost of sales, can be found at the end of the release. It is an important operating statistic that management utilizes to measure each mine's operating performance. It also allows the benchmarking of performance of each mine versus those of our competitors. As a primary silver mining company, management also uses the statistic on an aggregate basis - aggregating the Greens Creek and Lucky Friday mines - to compare performance with that of other silver mining companies, 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. (4) All-in sustaining cost (“AISC”), after by-product credits, is a non-GAAP measurement, a reconciliation of which to total cost of sales, the closest GAAP measurement, can be found at the end of the release. AISC, after by-product credits, includes total cost of sales and other direct production costs, expenses for reclamation at the mine sites and all site sustaining capital costs. AISC, after by-product credits, is calculated net of depreciation, depletion, and amortization and by-product credits. Prior year presentation has been adjusted to conform with current year presentation. (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) applicable to common stockholders is a measure used by management to evaluate the Company's operating performance but should not be considered an alternative to net income (loss) applicable to common stockholders 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) applicable to common stockholders 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 total cost of goods sold, do not capture all the expenditures incurred to discover, develop and sustain silver and gold production. Management believes that AISC is a non-GAAP measure that provides additional information to management, investors and analysts to help (i) in the understanding of the economics of our operations and performance compared to other producers and (ii) in the transparency by better defining the total costs associated with production. Similarly, the statistic is useful in identifying acquisition and investment opportunities as it provides a common tool for measuring the financial performance of other mines with varying geologic, metallurgical and operating characteristics. In addition, the Company may use it when formulating performance goals and targets under its incentive program. 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, for equivalent ounce calculations and Au $1,950/oz, Ag $24.50/oz, Zn $1.15/lb, and Pb 1.00$/lb, for by-product credit calculations. Numbers are 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) Lucky Friday will achieve annual production rate of 425,000 ore tons by the end of 2023 and will be able to complete capital projects (coarse ore bunker) on schedule; (ii) Greens Creek will achieve throughput of 2,600 tpd by the fourth quarter; (iii) Keno Hill will achieve full production by year-end, with expected throughput of approximately 440 tpd; (iv) regarding Casa Berardi: (1) it will be a full surface operation by 2024 and be free cash flow positive after the completion of stripping and Cell 7 of the tailings facility, (2) the Company expects to release the updated technical report for Casa Berardi in the first quarter of 2024, (3) after closure of the underground operations in 2024, Casa Berardi is projected to mine the 160 open pit until 2027, (4) permitting of the higher-grade Principal and West Mine Crown Pillar pits is expected over the next four years after which investment in stripping and dewatering is expected to occur, and (5) the Company expects a production gap of approximately two years between 2028 and 2030 and once the higher grade pits are in production, they are expected to generate significant free cash flow starting in 2030; (v) the Company will achieve silver production of 20 million ounces by 2025; (vi) the Company will be able to achieve Net Debt to Adjusted EBITDA ratio of <2.0; (vii) mine-specific and Company-wide estimates of future production, sales and total cost of sales, as well as cash cost and AISC per ounce (in each case after by-product credits); and (viii) 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, including with respect to the transition of Casa Berardi from an underground/open pit operation to an open pit only operation; (iii) political/regulatory developments in any jurisdiction in which the Company operates being consistent with its current expectations; (iv) the exchange rate for the USD/CAD being approximately consistent with current levels; (v) certain price assumptions for gold, silver, lead and zinc; (vi) prices for key supplies being approximately consistent with current levels; (vii) the accuracy of our current mineral reserve and mineral resource estimates; (viii) there being no significant changes to 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, including with respect to obtaining or renewing permits; (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) 2022 Annual Report on Form 10-K, filed with the Securities and Exchange Commission (“SEC”) on February 17, 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 Annual Report on Form 10-K for the year ended December 31, 2022 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 are contained in technical reports prepared for Klondex Mines Ltd. for (i) the Fire Creek Mine (technical report dated March 31, 2018), (ii) the Hollister Mine (technical report dated May 31, 2017, amended August 9, 2017), and (iii) the Midas Mine (technical report dated August 31, 2014, amended April 2, 2015). Copies of these technical reports are available under Hecla’s profile on SEDAR 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 Loss (dollars and shares in thousands, except per share amounts - unaudited) Three Months Ended Six Months Ended June 30, 2023 March 31, 2023 June 30, 2023 June 30, 2022 Sales $ 178,131 $ 199,500 $ 377,631 $ 377,741 Cost of sales and other direct production costs 107,754 125,550 233,304 221,679 Depreciation, depletion and amortization 32,718 39,002 71,720 73,370 Total cost of sales 140,472 164,552 305,024 295,049 Gross profit 37,659 34,948 72,607 82,692 Other operating expenses: General and administrative 10,783 12,070 22,853 17,986 Exploration and pre-development 6,893 4,967 11,860 24,008 Ramp-up and suspension costs 16,323 11,336 27,659 11,447 Provision for closed operations and environmental matters 3,111 1,044 4,155 2,373 Other operating (income) expense (4,262 ) (22 ) (4,284 ) 4,408 32,848 29,395 62,243 60,222 Income from operations 4,811 5,553 10,364 22,470 Other (expense) income: Interest expense (10,311 ) (10,165 ) (20,476 ) (20,911 ) Fair value adjustments, net (2,558 ) 3,181 623 (10,463 ) Foreign exchange gain (loss) (3,850 ) 108 (3,742 ) 2,444 Other income 1,376 1,392 2,768 2,975 (15,343 ) (5,484 ) (20,827 ) (25,955 ) Income (loss) before income taxes (10,532 ) 69 (10,463 ) (3,485 ) Income and mining tax (expense) benefit (5,162 ) (3,242 ) (8,404 ) (5,885 ) Net loss (15,694 ) (3,173 ) (18,867 ) (9,370 ) Preferred stock dividends (138 ) (138 ) (276 ) (276 ) Net loss applicable to common stockholders $ (15,832 ) $ (3,311 ) $ (19,143 ) $ (9,646 ) Basic and diluted loss per common share after preferred dividends (in cents) $ (0.03 ) $ (0.01 ) $ (0.03 ) $ (0.02 ) Weighted average number of common shares outstanding basic 604,088 600,075 602,077 538,943 Weighted average number of common shares outstanding diluted 604,088 600,075 602,077 538,943 HECLA MINING COMPANY Condensed Consolidated Statements of Cash Flows (dollars in thousands - unaudited) Quarter Ended Six Months Ended June 30, 2023 March 31, 2023 June 30, 2023 June 30, 2022 OPERATING ACTIVITIES Net loss $ (15,694 ) $ (3,173 ) $ (18,867 ) $ (9,370 ) Non-cash elements included in net income (loss): Depreciation, depletion and amortization 34,718 39,892 74,610 73,656 Adjustment of inventory to net realizable value 2,997 4,521 7,518 754 Fair value adjustments, net 2,558 (3,181 ) (623 ) (14,185 ) Provision for reclamation and closure costs 3,634 1,694 5,328 3,271 Stock compensation 1,498 1,190 2,688 2,525 Deferred income taxes 4,027 558 4,585 (1,290 ) Foreign exchange loss (gain) 6,025 (2,218 ) 3,807 (3,442 ) Other non-cash items, net 1,388 186 1,574 982 Change in assets and liabilities: Accounts receivable 13,087 15,477 28,564 19,199 Inventories (8,882 ) (9,239 ) (18,121 ) (8,352 ) Other current and non-current assets (5,207 ) (9,856 ) (15,063 ) (894 ) Accounts payable, accrued and other current liabilities 9,447 (9,304 ) 143 17,119 Accrued payroll and related benefits (14,248 ) 4,705 (9,543 ) 278 Accrued taxes (2,311 ) 2,226 (85 ) (5,683 ) Accrued reclamation and closure costs and other non-current liabilities (9,260 ) 7,125 (2,135 ) 3,524 Cash provided by operating activities 23,777 40,603 64,380 78,092 INVESTING ACTIVITIES Additions to properties, plants, equipment and mineral interests (51,468 ) (54,443 ) (105,911 ) (55,807 ) Proceeds from sale or exchange of investments — — — 2,487 Proceeds from disposition of properties, plants, equipment and mineral interests 80 — 80 730 Purchases of investments — — — (21,899 ) Net cash used in investing activities (51,388 ) (54,443 ) (105,831 ) (74,489 ) FINANCING ACTIVITIES Proceeds from issuance of stock, net of related costs 14,003 11,885 25,888 — Acquisition of treasury shares (1,554 ) (482 ) (2,036 ) (3,677 ) Borrowing of debt 43,000 13,000 56,000 — Repayment of debt (12,000 ) (13,000 ) (25,000 ) — Dividends paid to common and preferred stockholders (3,917 ) (3,891 ) (7,808 ) (7,027 ) Credit facility feed paid — 0 — (74 ) Repayments of finance leases (2,301 ) (2,464 ) (4,765 ) (3,333 ) Net cash provided by (used in) financing activities 37,231 5,048 42,279 (14,111 ) Effect of exchange rates on cash 1,046 171 1,217 (1,321 ) Net increase (decrease) in cash, cash equivalents and restricted cash and cash equivalents 10,666 (8,621 ) 2,045 (11,829 ) Cash, cash equivalents and restricted cash at beginning of period 97,286 105,907 105,907 211,063 Cash, cash equivalents and restricted cash at end of period $ 107,952 $ 97,286 $ 107,952 $ 199,234 HECLA MINING COMPANY Condensed Consolidated Balance Sheets (dollars and shares in thousands - unaudited) June 30, 2023 December 31, 2022 ASSETS Current assets: Cash and cash equivalents $ 106,786 $ 104,743 Accounts receivable 30,716 55,841 Inventories 94,613 90,672 Other current assets 27,040 16,471 Total current assets 259,155 267,727 Investments 20,778 24,018 Restricted cash 1,166 1,164 Properties, plants, equipment and mineral interests, net 2,615,747 2,569,790 Operating lease right-of-use assets 9,901 11,064 Deferred tax assets 2,703 21,105 Other non-current assets 36,009 32,304 Total assets $ 2,945,459 $ 2,927,172 LIABILITIES Current liabilities: Accounts payable and accrued liabilities $ 81,653 $ 84,747 Accrued payroll and related benefits 25,993 37,579 Accrued taxes 4,036 4,030 Finance leases 11,213 9,483 Accrued reclamation and closure costs 9,693 8,591 Accrued interest 14,404 14,454 Other current liabilities 4,348 19,582 Total current liabilities 151,340 178,466 Accrued reclamation and closure costs 110,236 108,408 Long-term debt including finance leases 559,817 517,742 Deferred tax liability 118,611 125,846 Other non-current liabilities 12,619 17,743 Total liabilities 952,623 948,205 STOCKHOLDERS’ EQUITY Preferred stock 39 39 Common stock 153,334 151,819 Capital surplus 2,289,607 2,260,290 Accumulated deficit (430,606 ) (403,931 ) Accumulated other comprehensive income, net 14,196 2,448 Treasury stock (33,734 ) (31,698 ) Total stockholders’ equity 1,992,836 1,978,967 Total liabilities and stockholders’ equity $ 2,945,459 $ 2,927,172 Common shares outstanding 613,682 607,620 Non-GAAP Measures (Unaudited) Reconciliation of Total Cost of Sales to Cash Cost, Before By-product Credits and Cash Cost, After By-product Credits (non-GAAP) and All-In Sustaining Cost, Before By-product Credits and All-In Sustaining Cost, After By-product Credits (non-GAAP) The tables below present reconciliations between the most comparable GAAP measure of total cost of sales to the non-GAAP measures of (i) Cash Cost, Before By-product Credits, (ii) Cash Cost, After By-product Credits, (iii) AISC, Before By-product Credits and (iv) AISC, After By-product Credits for our operations and for the Company for the three months and six months ended June 30, 2023 and 2022, the three months ended March 31, 2023 December 31, 2022, September 30, 2022 and June 30, 2022. Cash Cost, After By-product Credits, per Ounce and AISC, After By-product Credits, per Ounce are measures developed by precious metals companies (including the Silver Institute and the World Gold Council) in an effort to provide a uniform standard for comparison purposes. There can be no assurance, however, that these non-GAAP measures as we report them are the same as those reported by other mining companies. Cash Cost, After By-product Credits, per Ounce is an important operating statistic that we utilize to measure each mine's operating performance. We use AISC, After By-product Credits, per Ounce as a measure of our mines' net cash flow after costs for reclamation and sustaining capital. This is similar to the Cash Cost, After By-product Credits, per Ounce non-GAAP measure we report, but also includes reclamation and sustaining capital costs. Current GAAP measures used in the mining industry, such as cost of goods sold, do not capture all the expenditures incurred to discover, develop and sustain silver and gold production. Cash Cost, After By-product Credits, per Ounce and AISC, After By-product Credits, per Ounce also allow us to benchmark the performance of each of our mines versus those of our competitors. As a silver and gold mining company, we also use these statistics on an aggregate basis - aggregating the Greens Creek and Lucky Friday mines to compare our performance with that of other silver mining companies, and aggregating Casa Berardi and Nevada Operations for comparison with other 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 mine also includes reclamation and sustaining capital costs. AISC, Before By-product Credits for our consolidated silver properties also includes corporate costs for general and administrative expense and sustaining capital costs. By-product credits include revenues earned from all metals other than the primary metal produced at each unit. As depicted in the tables below, by-product credits comprise an essential element of our silver unit cost structure, distinguishing our silver operations due to the polymetallic nature of their orebodies. In addition to the uses described above, Cash Cost, After By-product Credits, per Ounce and AISC, After By-product Credits, per Ounce provide management and investors an indication of operating cash flow, after consideration of the average price, received from production. We also use these measurements for the comparative monitoring of performance of our mining operations period-to-period from a cash flow perspective. The Casa Berardi and Nevada Operations and combined gold properties information below reports Cash Cost, After By-product Credits, per Gold Ounce and AISC, After By-product Credits, per Gold Ounce for the production of gold, their primary product, and by-product revenues earned from silver, which is a by-product at Casa Berardi and Nevada Operations. Only costs and ounces produced relating to units with the same primary product are combined to represent Cash Cost, After By-product Credits, per Ounce and AISC, After By-product Credits, per Ounce. Thus, the gold produced at our Casa Berardi and Nevada Operations units 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 units is not included as a by-product credit when calculating the gold metrics for Casa Berardi and Nevada Operations. In thousands (except per ounce amounts) Three Months Ended June 30, 2023 Three Months Ended March 31, 2023 Six Months Ended June 30, 2023 Six Months Ended June 30, 2022 (5) Greens Creek Lucky Friday Keno Hill (6) Corporate (2) Total Silver Greens Creek Lucky Friday Corporate (2) Total Silver Greens Creek Lucky Friday Keno Hill (6) Corporate (2) Total Silver Greens Creek Lucky Friday(2) Corporate and other(3) Total Silver Total cost of sales $63,054 $32,190 $1,581 $— $96,825 $66,288 $34,534 $— $100,822 $129,342 $66,724 $1,581 $— 197,647 $110,143 $59,613 $— $169,756 Depreciation, depletion and amortization (13,078 ) (8,979 ) (261 ) — (22,318 ) (14,464 ) (10,456 ) — (24,920 ) (27,542 ) (19,435 ) (261 ) — (47,238 ) (25,049 ) (16,894 ) — (41,943 ) Treatment costs 10,376 4,187 113 — 14,676 10,369 5,276 — 15,645 20,745 9,464 113 — 30,322 17,892 8,480 — 26,372 Change in product inventory (1,242 ) 1,546 — — 304 (1,614 ) (2,409 ) — (4,023 ) (2,856 ) (863 ) — — (3,719 ) 5,436 (402 ) — 5,034 Reclamation and other costs 263 (250 ) — — 13 (129 ) (408 ) — (537 ) 134 (658 ) — — (524 ) — Exclusion of Keno Hill cash costs — — (1,433 ) — (1,433 ) — — - - (1,433 ) — (1,433 ) (1,872 ) (619 ) — (2,491 ) Cash Cost, Before By-product Credits (1) 59,373 28,694 — — 88,067 60,450 26,537 — 86,987 119,823 55,232 — — 175,055 106,550 50,178 — 156,728 Reclamation and other costs 722 285 — — 1,007 722 285 — 1,007 1,444 570 — — 2,014 1,410 564 — 1,974 Sustaining capital 8,714 9,081 — 688 18,483 6,641 7,784 — 14,425 15,355 16,865 — 594 32,814 20,624 13,671 147 34,442 General and administrative — — — 10,783 10,783 — — 12,070 12,070 — — — 22,853 22,853 — — 17,986 17,986 AISC, Before By-product Credits (1) 68,809 38,060 — 11,471 118,340 67,813 34,606 12,070 114,489 136,622 72,667 — 23,447 232,736 128,584 64,413 18,133 211,130 By-product credits: Zinc (20,923 ) (5,448 ) — — (26,371 ) (24,005 ) (6,816 ) — (30,821 ) (44,928 ) (12,264 ) — — (57,192 ) (61,479 ) (14,204 ) — (75,683 ) Gold (28,458 ) — — — (28,458 ) (25,286 ) — — (25,286 ) (53,744 ) - — — (53,744 ) (38,947 ) — — (38,947 ) Lead (6,860 ) (14,287 ) — — (21,147 ) (7,942 ) (14,299 ) — (22,241 ) (14,802 ) (28,586 ) — — (43,388 ) (16,237 ) (26,379 ) — (42,616 ) Total By-product credits (56,241 ) (19,735 ) — — (75,976 ) (57,233 ) (21,115 ) — (78,348 ) (113,474 ) (40,850 ) — — (154,324 ) (116,663 ) (40,583 ) — (157,246 ) Cash Cost, After By-product Credits $3,132 $8,959 $— $— $12,091 $3,217 $5,422 $— $8,639 $6,349 $14,382 $— $— $20,731 $(10,113 ) $9,595 $— $(518 ) AISC, After By-product Credits $12,568 $18,325 $— $11,471 $42,364 $10,580 $13,491 $12,070 $36,141 $23,148 $31,817 $— $23,447 $78,412 $11,921 $23,830 $18,133 $53,884 Divided by ounces produced 2,356 1,287 3,642 2,773 1,262 4,035 5,129 2,549 7,678 4,840 2,114 6,954 Cash Cost, Before By-product Credits, per Silver Ounce $25.20 $22.30 $24.18 $21.80 $21.03 $21.56 $23.36 $21.67 $22.80 $22.01 $23.74 $22.54 By-product credits per ounce (23.87 ) (15.34 ) (20.86 ) (20.64 ) (16.73 ) (19.42 ) (22.13 ) (16.03 ) (20.10 ) (24.10 ) (19.20 ) (22.61 ) Cash Cost, After By-product Credits, per Silver Ounce $1.33 $6.96 $3.32 $1.16 $4.30 $2.14 $1.23 $5.64 $2.70 $(2.09 ) $4.54 $(0.07 ) AISC, Before By-product Credits, per Silver Ounce $29.21 $29.58 $32.49 $24.46 $27.42 $28.38 $26.64 $28.51 $30.31 $26.57 $30.47 $30.36 By-product credits per ounce (23.87 ) (15.34 ) (20.86 ) (20.64 ) (16.73 ) (19.42 ) (22.13 ) (16.03 ) (20.10 ) (24.10 ) (19.20 ) (22.61 ) AISC, After By-product Credits, per Silver Ounce $5.34 $14.24 $11.63 $3.83 $10.69 $8.96 $4.51 $12.48 $10.21 $2.47 $11.27 $7.75 In thousands (except per ounce amounts) Three Months Ended June 30, 2023 Three Months Ended March 31, 2023 Six Months Ended June 30, 2023 Six Months Ended June 30, 2022 (5) Casa Berardi Nevada Operations and Other (4) Total Gold Casa Berardi Nevada Operations and Other (4) Total Gold Casa Berardi Nevada Operations and Other (4) Total Gold Casa Berardi Total Gold Total cost of sales $ 42,576 $ 1,071 $ 43,647 $ 62,998 $ 732 $ 63,730 $ 105,574 $ 1,803 $ 107,377 $ 124,038 $ 124,038 Depreciation, depletion and amortization (10,272 ) (127 ) (10,399 ) (14,036 ) (47 ) (14,083 ) (24,308 ) (174 ) (24,482 ) (31,305 ) (31,305 ) Treatment costs 351 — 351 467 — 467 818 — 818 915 915 Change in product inventory (951 ) — (951 ) (2,417 ) — (2,417 ) (3,368 ) — (3,368 ) (1,356 ) (1,356 ) Reclamation and other costs (219 ) — (219 ) (217 ) — (217 ) (436 ) — (436 ) (419 ) (419 ) Exclusion of Casa Berardi cash costs (3) — — — (2,851 ) — (2,851 ) (2,851 ) — (2,851 ) — — Exclusion of Nevada and Other costs — (944 ) (944 ) — (685 ) (685 ) — (1,629 ) (1,629 ) — — Cash Cost, Before By-product Credits (1) 31,485 — 31,485 43,944 — 43,944 75,429 — 75,429 91,873 91,873 Reclamation and other costs 219 — 219 217 — 217 436 — 436 419 419 Sustaining capital 9,025 — 9,025 15,015 — 15,015 24,041 — 24,041 14,878 14,878 AISC, Before By-product Credits (1) 40,729 — 40,729 59,176 — 59,176 99,906 — 99,906 107,170 107,170 By-product credits: Silver (144 ) (144 ) (127 ) — (127 ) (271 ) — (271 ) (354 ) (354 ) Total By-product credits (144 ) — (144 ) (127 ) — (127 ) (271 ) — (271 ) (354 ) (354 ) Cash Cost, After By-product Credits $ 31,341 $ — $ 31,341 $ 43,817 $ — $ 43,817 $ 75,158 $ — $ 75,158 $ 91,519 $ 91,519 AISC, After By-product Credits $ 40,585 $ — $ 40,585 $ 59,049 $ — $ 59,049 $ 99,635 $ — $ 99,635 $ 106,816 $ 106,816 Divided by gold ounces produced 19 — 19 25 — 25 44 — 44 64 64 Cash Cost, Before By-product Credits, per Gold Ounce $ 1,666 $ — $ 1,666 $ 1,780 $ — $ 1,780 $ 1,731 $ — $ 1,731 $ 1,446 $ 1,446 By-product credits per ounce (8 ) — (8 ) (5 ) — (5 ) (6 ) — (6 ) (6 ) (6 ) Cash Cost, After By-product Credits, per Gold Ounce $ 1,658 $ — $ 1,658 $ 1,775 $ — $ 1,775 $ 1,725 $ — $ 1,725 $ 1,440 $ 1,440 AISC, Before By-product Credits, per Gold Ounce $ 2,155 $ — $ 2,155 $ 2,397 $ — $ 2,397 $ 2,292 $ — $ 2,292 $ 1,686 $ 1,686 By-product credits per ounce (8 ) — (8 ) (5 ) — (5 ) (6 ) — (6 ) (6 ) (6 ) AISC, After By-product Credits, per Gold Ounce $ 2,147 $ — $ 2,147 $ 2,392 $ — $ 2,392 $ 2,286 $ — $ 2,286 $ 1,680 $ 1,680 In thousands (except per ounce amounts) Three Months Ended June 30, 2023 Three Months Ended March 31, 2023 Six Months Ended June 30, 2023 Six Months Ended June 30, 2022 (5) Total Silver Total Gold Total Total Silver Total Gold Total Total Silver Total Gold Total Total Silver Total Gold Total Total cost of sales $ 96,825 $ 43,647 $ 140,472 $ 100,822 $ 63,730 $ 164,552 $ 197,647 $ 107,377 $ 305,024 $ 169,756 $ 124,038 $ 293,794 Depreciation, depletion and amortization (22,318 ) (10,399 ) (32,717 ) (24,920 ) (14,083 ) (39,003 ) (47,238 ) (24,482 ) (71,720 ) (41,943 ) (31,305 ) (73,248 ) Treatment costs 14,676 351 15,027 15,645 467 16,112 30,322 818 31,140 26,372 915 27,287 Change in product inventory 304 (951 ) (647 ) (4,023 ) (2,417 ) (6,440 ) (3,719 ) (3,368 ) (7,087 ) 5,034 (1,356 ) 3,678 Reclamation and other costs 13 (219 ) (206 ) (537 ) (217 ) (754 ) (524 ) (436 ) (960 ) (2,491 ) (419 ) (2,910 ) Exclusion of Keno Hill cash costs (1,433 ) — (1,433 ) — — — (1,433 ) — (1,433 ) — — — Exclusion of Casa Berardi cash costs (3) — — — — (2,851 ) (2,851 ) — (2,851 ) (2,851 ) — — — Exclusion of Nevada and Other — (944 ) (944 ) — (685 ) (685 ) — (1,629 ) (1,629 ) — — — Cash Cost, Before By-product Credits (1) 88,067 31,485 119,552 86,987 43,944 130,931 175,055 75,429 250,484 156,728 91,873 248,601 Reclamation and other costs 1,007 219 1,226 1,007 217 1,224 2,014 436 2,450 1,974 419 2,393 Sustaining capital 18,483 9,025 27,508 14,425 15,015 29,440 32,814 24,041 56,855 34,442 14,878 49,320 General and administrative 10,783 — 10,783 12,070 — 12,070 22,853 — 22,853 17,986 — 17,986 AISC, Before By-product Credits (1) 118,340 40,729 159,069 114,489 59,176 173,665 232,736 99,906 332,642 211,130 107,170 318,300 By-product credits: Zinc (26,371 ) — (26,371 ) (30,821 ) — (30,821 ) (57,192 ) — (57,192 ) (75,683 ) — (75,683 ) Gold (28,458 ) — (28,458 ) (25,286 ) — (25,286 ) (53,744 ) — (53,744 ) (38,947 ) — (38,947 ) Lead (21,147 ) — (21,147 ) (22,241 ) — (22,241 ) (43,388 ) — (43,388 ) (42,616 ) — (42,616 ) Silver — (144 ) (144 ) — (127 ) (127 ) — (271 ) (271 ) — (354 ) (354 ) Total By-product credits (75,976 ) (144 ) (76,120 ) (78,348 ) (127 ) (78,475 ) (154,324 ) (271 ) (154,595 ) (157,246 ) (354 ) (157,600 ) Cash Cost, After By-product Credits $ 12,091 $ 31,341 $ 43,432 $ 8,639 $ 43,817 $ 52,456 $ 20,731 $ 75,158 $ 95,889 $ (518 ) $ 91,519 $ 91,001 AISC, After By-product Credits $ 42,364 $ 40,585 $ 82,949 $ 36,141 $ 59,049 $ 95,190 $ 78,412 $ 99,635 $ 178,047 $ 53,884 $ 106,816 $ 160,700 Divided by ounces produced 3,642 19 4,035 25 7,678 44 6,954 64 Cash Cost, Before By-product Credits, per Ounce $ 24.18 $ 1,666 $ 21.56 $ 1,780 $ 22.80 $ 1,731 $ 22.54 $ 1,446 By-product credits per ounce (20.86 ) (8 ) (19.42 ) (5 ) (20.10 ) (6 ) (22.61 ) (6 ) Cash Cost, After By-product Credits, per Ounce $ 3.32 $ 1,658 $ 2.14 $ 1,775 $ 2.70 $ 1,725 $ (0.07 ) $ 1,440 AISC, Before By-product Credits, per Ounce $ 32.49 $ 2,155 $ 28.38 $ 2,397 $ 30.31 $ 2,292 $ 30.36 $ 1,686 By-product credits per ounce (20.86 ) (8 ) (19.42 ) (5 ) (20.10 ) (6 ) (22.61 ) (6 ) AISC, After By-product Credits, per Ounce $ 11.63 2,147 $ 8.96 2,392 $ 10.21 2,286 $ 7.75 1,680 In thousands (except per ounce amounts) Three Months Ended December 31, 2022 (5) Three Months Ended September 30, 2022 (5) Three Months Ended June 30, 2022 (5) Greens Creek Lucky Friday Corporate (2) Total Silver Greens Creek Lucky Friday Corporate (2) Total Silver Greens Creek Lucky Friday Corporate (2) Total Silver Total cost of sales $ 70,074 $ 32,819 $ — $ 102,893 $ 52,502 $ 24,164 $ — $ 76,666 $ 60,506 $ 30,348 $ — $ 90,854 Depreciation, depletion and amortization (13,557 ) (9,549 ) — (23,106 ) (10,305 ) (7,261 ) — (17,566 ) (13,629 ) (8,862 ) — (22,491 ) Treatment costs 10,467 5,334 — 15,801 9,477 4,791 — 14,268 8,778 4,803 — 13,581 Change in product inventory (4,014 ) (571 ) — (4,585 ) 4,464 3,022 — 7,486 (1,102 ) 503 — (599 ) Reclamation and other costs 499 (265 ) — 234 (118 ) (152 ) — (270 ) (1,005 ) (256 ) — (1,261 ) Cash Cost, Before By-product Credits (1) 63,469 27,768 — 91,237 56,020 24,564 — 80,584 53,548 26,536 — 80,084 Reclamation and other costs 706 282 — 988 705 282 — 987 705 282 — 987 Sustaining capital 9,862 8,369 — 18,231 10,219 11,264 187 21,670 14,668 8,110 99 22,877 General and administrative — — 14,395 14,395 — — 11,003 11,003 — — 9,692 9,692 AISC, Before By-product Credits (1) 74,037 36,419 14,395 124,851 66,944 36,110 11,190 114,244 68,921 34,928 9,791 113,640 By-product credits: Zinc (26,112 ) (6,249 ) — (32,361 ) (26,244 ) (7,155 ) — (33,399 ) (32,828 ) (8,227 ) — (41,055 ) Gold (19,630 ) — — (19,630 ) (17,019 ) — — (17,019 ) (20,364 ) — — (20,364 ) Lead (7,351 ) (14,392 ) — (21,743 ) (6,212 ) (11,796 ) — (18,008 ) (8,271 ) (14,543 ) — (22,814 ) Total By-product credits (53,093 ) (20,641 ) — (73,734 ) (49,475 ) (18,951 ) — (68,426 ) (61,463 ) (22,770 ) — (84,233 ) Cash Cost, After By-product Credits $ 10,376 $ 7,127 $ — $ 17,503 $ 6,545 $ 5,613 $ — $ 12,158 $ (7,915 ) $ 3,766 $ — $ (4,149 ) AISC, After By-product Credits $ 20,944 $ 15,778 $ 14,395 $ 51,117 $ 17,469 $ 17,159 $ 11,190 $ 45,818 $ 7,458 $ 12,158 $ 9,791 $ 29,407 Divided by ounces produced 2,433 1,224 3,657 2,469 1,075 3,544 2,410 1,226 3,636 Cash Cost, Before By-product Credits, per Silver Ounce $ 26.08 $ 22.68 $ 24.95 $ 22.69 $ 22.87 $ 22.74 $ 22.21 $ 21.65 $ 22.03 By-product credits per ounce (21.82 ) (16.86 ) (20.16 ) (20.04 ) (17.64 ) (19.31 ) (25.50 ) (18.58 ) (23.17 ) Cash Cost, After By-product Credits, per Silver Ounce $ 4.26 $ 5.82 $ 4.79 $ 2.65 $ 5.23 $ 3.43 $ (3.29 ) $ 3.07 $ (1.14 ) AISC, Before By-product Credits, per Silver Ounce $ 30.43 $ 29.74 $ 34.14 $ 27.11 $ 33.62 $ 32.24 $ 28.60 $ 28.49 $ 31.25 By-product credits per ounce (21.82 ) (16.86 ) (20.16 ) (20.04 ) (17.64 ) (19.31 ) (25.50 ) (18.58 ) (23.17 ) AISC, After By-product Credits, per Silver Ounce $ 8.61 $ 12.88 $ 13.98 $ 7.07 $ 15.98 $ 12.93 $ 3.10 $ 9.91 $ 8.08 In thousands (except per ounce amounts) Three Months Ended December 31, 2022 (5) Three Months Ended September 30, 2022 (5) Three Months Ended June 30, 2022 (5) Casa Berardi Total Gold Casa Berardi Total Gold Casa Berardi Total Gold Total cost of sales $ 65,328 $ 65,328 $ 59,532 $ 59,532 $ 61,870 $ 61,870 Depreciation, depletion and amortization (14,568 ) (14,568 ) (15,089 ) (15,089 ) (15,459 ) (15,459 ) Treatment costs 521 521 429 429 457 457 Change in product inventory 1,122 1,122 420 420 (793 ) (793 ) Reclamation and other costs (196 ) (196 ) (203 ) (203 ) (209 ) (209 ) Cash Cost, Before By-product Credits (1) 52,207 52,207 45,089 45,089 45,866 45,866 Reclamation and other costs 196 196 204 204 209 209 Sustaining capital 11,438 11,438 10,457 10,457 7,597 7,597 AISC, Before By-product Credits (1) 63,841 63,841 55,750 55,750 53,672 53,672 By-product credits: Silver (124 ) (124 ) (131 ) (131 ) (188 ) (188 ) Total By-product credits (124 ) (124 ) (131 ) (131 ) (188 ) (188 ) Cash Cost, After By-product Credits $ 52,083 $ 52,083 $ 44,958 $ 44,958 $ 45,678 $ 45,678 AISC, After By-product Credits $ 63,717 $ 63,717 $ 55,619 $ 55,619 $ 53,484 $ 53,484 Divided by gold ounces produced 31 31 33 33 33 33 Cash Cost, Before By-product Credits, per Gold Ounce $ 1,700 $ 1,700 $ 1,353 $ 1,353 $ 1,377 $ 1,377 By-product credits per ounce (4 ) (4 ) (4 ) (4 ) (6 ) (6 ) Cash Cost, After By-product Credits, per Gold Ounce $ 1,696 $ 1,696 $ 1,349 $ 1,349 $ 1,371 $ 1,371 AISC, Before By-product Credits, per Gold Ounce $ 2,079 $ 2,079 $ 1,673 $ 1,673 $ 1,611 $ 1,611 By-product credits per ounce (4 ) (4 ) (4 ) (4 ) (6 ) (6 ) AISC, After By-product Credits, per Gold Ounce $ 2,075 $ 2,075 $ 1,669 $ 1,669 $ 1,605 $ 1,605 In thousands (except per ounce amounts) Three Months Ended December 31, 2022 (5) Three Months Ended September 30, 2022 (5) Three Months Ended June 30, 2022 (5) 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 $ 90,854 $ 61,870 $ 152,724 Depreciation, depletion and amortization (23,106 ) (14,568 ) (37,674 ) (17,566 ) (15,089 ) (32,655 ) (22,491 ) (15,459 ) (37,950 ) Treatment costs 15,801 521 16,322 14,268 429 14,697 13,581 457 14,038 Change in product inventory (4,585 ) 1,122 (3,463 ) 7,486 420 7,906 (599 ) (793 ) (1,392 ) Reclamation and other costs 234 (196 ) 38 (270 ) (203 ) (473 ) (1,261 ) (209 ) (1,470 ) Cash Cost, Before By-product Credits (1) 91,237 52,207 143,444 80,584 45,089 125,673 80,084 45,866 125,950 Reclamation and other costs 988 196 1,184 987 204 1,191 987 209 1,196 Sustaining capital 18,231 11,438 29,669 21,670 10,457 32,127 22,877 7,597 30,474 General and administrative 14,395 — 14,395 11,003 11,003 9,692 — 9,692 AISC, Before By-product Credits (1) 124,851 63,841 188,692 114,244 55,750 169,994 113,640 53,672 167,312 By-product credits: Zinc (32,361 ) — (32,361 ) (33,399 ) — (33,399 ) (41,055 ) — (41,055 ) Gold (19,630 ) — (19,630 ) (17,019 ) — (17,019 ) (20,364 ) — (20,364 ) Lead (21,743 ) — (21,743 ) (18,008 ) — (18,008 ) (22,814 ) — (22,814 ) Silver — (124 ) (124 ) (131 ) (131 ) (188 ) (188 ) Total By-product credits (73,734 ) (124 ) (73,858 ) (68,426 ) (131 ) (68,557 ) (84,233 ) (188 ) (84,421 ) Cash Cost, After By-product Credits $ 17,503 $ 52,083 $ 69,586 $ 12,158 $ 44,958 $ 57,116 $ (4,149 ) $ 45,678 $ 41,529 AISC, After By-product Credits $ 51,117 $ 63,717 $ 114,834 $ 45,818 $ 55,619 $ 101,437 $ 29,407 $ 53,484 $ 82,891 Divided by ounces produced 3,657 31 3,544 33 3,636 33 Cash Cost, Before By-product Credits, per Ounce $ 24.95 $ 1,700 $ 22.74 1,353 $ 22.03 $ 1,377 By-product credits per ounce (20.16 ) (4 ) (19.31 ) (4 ) (23.17 ) (6 ) Cash Cost, After By-product Credits, per Ounce $ 4.79 $ 1,696 $ 3.43 $ 1,349 $ (1.14 ) $ 1,371 AISC, Before By-product Credits, per Ounce $ 34.14 $ 2,079 $ 32.24 $ 1,673 $ 31.25 $ 1,611 By-product credits per ounce (20.16 ) (4 ) (19.31 ) (4 ) (23.17 ) (6 ) AISC, After By-product Credits, per Ounce $ 13.98 $ 2,075 $ 12.93 $ 1,669 $ 8.08 $ 1,605 (1) Includes all direct and indirect operating costs related to the physical activities of producing metals, including mining, processing and other plant costs, third-party refining and marketing expense, on-site general and administrative costs and royalties, before by-product revenues earned from all metals other than the primary metal produced at each operation. AISC, Before By-product Credits also includes reclamation and sustaining capital costs. (2) AISC, Before By-product Credits for our consolidated silver properties includes corporate costs for general and administrative expense, and sustaining capital. (3) During the three months ended March 31, 2023, the Company completed the necessary studies to conclude usage of the F-160 pit as a tailings storage facility after mining is complete. As a result, a portion of the mining costs have been excluded from Cash Cost, Before By-product Credits and AISC, Before By-product Credits. (4) Other includes $354,000 and $786,000 of total cost of sales for the three and six months ended June 30, 2023, respectively, related to the environmental services business acquired as part of the Alexco acquisition. (5) Prior year presentation has been adjusted to conform with current year presentation to eliminate exploration costs from the calculation of AISC, Before By-product Credits as exploration is an activity directed at the Corporate level to find new mineral reserve and resource deposits, and therefore we believe it is inappropriate to include exploration costs in the calculation of AISC, Before By-product Credits for a specific mining operation. (6) Keno Hill is in the ramp-up phase of production and as such costs associated with ramp up at this operation which amounted to $9.4 million and $15.3 million for the three and six months ended June 30, 2023 are excluded from the calculation of total cost of sales, Cash Cost, Before By-product Credits, Cash Cost, After By-product Credits, AISC, Before By-product Credits, and AISC, After By-product Credits. (7) Casa Berardi operations were suspended in June 2023 in response to the directive of the Quebec Ministry of Natural Resources and Forests. Suspension costs amounted to $2.2 million for the three and six month periods ended June 30, 2023 and are excluded from the calculation of total cost of sales, Cash Cost, Before By-product Credits, Cash Cost, After By-product Credits, AISC, Before By-product Credits, and AISC, After By-product Credits. 2023 Guidance, Previous and Current Estimates: Reconciliation of Cost of Sales to Non-GAAP Measures In thousands (except per ounce amounts) Previous Estimate for Twelve Months Ended December 31, 2023 Greens Creek Lucky Friday Keno Hill Corporate(3) Total Silver Casa Berardi Total Gold Total cost of sales $ 245,000 $ 128,000 $ 40,000 $ — $ 413,000 $ 220,000 $ 220,000 Depreciation, depletion and amortization (46,000 ) (37,900 ) (6,800 ) — (90,700 ) (52,800 ) (52,800 ) Treatment costs 43,700 15,375 5,150 — 64,225 300 300 Change in product inventory (5,100 ) (750 ) 1,000 — (4,850 ) (1,300 ) (1,300 ) Reclamation and other costs 1,000 1,000 750 — 2,750 500 500 Cash Cost, Before By-product Credits (1) 238,600 105,725 40,100 — 384,425 166,700 166,700 Reclamation and other costs 2,800 1,100 — — 3,900 800 800 Exploration 5,900 — 2,600 2,250 10,750 5,400 5,400 Sustaining capital 48,500 30,200 550 — 79,250 52,200 52,200 General and administrative — — — 44,000 44,000 — — AISC, Before By-product Credits (1) 295,800 137,025 43,250 46,250 522,325 225,100 225,100 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 ) — — Silver — — — — — (600 ) (600 ) Total By-product credits (238,400 ) (94,600 ) (6,900 ) — (339,900 ) (600 ) (600 ) Cash Cost, After By-product Credits $ 200 $ 11,125 $ 33,200 $ — $ 44,525 $ 166,100 $ 166,100 AISC, After By-product Credits $ 57,400 $ 42,425 $ 36,350 $ 46,250 $ 182,425 $ 224,500 $ 224,500 Divided by silver ounces produced 9,250 4,750 2,750 16,750 112.5 112.5 Cash Cost, Before By-product Credits, per Silver Ounce $ 25.79 $ 22.26 $ 14.58 $ 22.95 $ 1,482 $ 1,482 By-product credits per silver ounce (25.77 ) (19.92 ) (2.51 ) (20.29 ) (5 ) (5 ) Cash Cost, After By-product Credits, per Silver Ounce $ 0.02 $ 2.34 $ 12.07 $ 2.66 $ 1,477 $ 1,477 AISC, Before By-product Credits, per Silver Ounce $ 31.98 $ 28.85 $ 15.73 $ 31.18 $ 2,001 $ 2,001 By-product credits per silver ounce (25.77 ) (19.92 ) (2.51 ) (20.29 ) (5 ) (5 ) AISC, After By-product Credits, per Silver Ounce $ 6.21 $ 8.93 $ 13.22 $ 10.89 $ 1,996 $ 1,996 In thousands (except per ounce amounts) Current Estimate for Twelve Months Ended December 31, 2023 Greens Creek Lucky Friday Keno Hill Corporate(2) Total Silver Casa Berardi Total Gold Total cost of sales $ 245,000 $ 130,600 $ 40,000 $ — $ 415,600 $ 215,000 $ 215,000 Depreciation, depletion and amortization (46,000 ) (38,500 ) (6,800 ) — (91,300 ) (52,800 ) (52,800 ) Treatment costs 43,700 18,900 5,150 — 67,750 300 300 Change in product inventory (5,100 ) (2,500 ) 1,000 — (6,600 ) (1,300 ) (1,300 ) Reclamation and other costs 1,000 500 750 — 2,250 500 500 Cash Cost, Before By-product Credits (1) 238,600 109,000 40,100 — 387,700 161,700 161,700 Reclamation and other costs 2,800 1,100 — — 3,900 800 800 Sustaining capital 44,350 35,600 550 — 80,500 37,900 37,900 General and administrative — — — 44,000 44,000 — — AISC, Before By-product Credits (1) 285,750 145,700 40,650 44,000 516,100 200,400 200,400 By-product credits: Zinc (92,700 ) (26,300 ) (1,800 ) — (120,800 ) — — Gold (110,000 ) — — — (110,000 ) — — Lead (32,800 ) (62,100 ) (3,200 ) — (98,100 ) — — Silver — — — — — (600 ) (600 ) Total By-product credits (235,500 ) (88,400 ) (5,000 ) — (328,900 ) (600 ) (600 ) Cash Cost, After By-product Credits $ 3,100 $ 20,600 $ 35,100 $ — $ 58,800 $ 161,100 $ 161,100 AISC, After By-product Credits $ 50,250 $ 57,300 $ 35,650 $ 44,000 $ 187,200 $ 199,800 $ 199,800 Divided by silver ounces produced 9,250 4,750 2,750 16,750 90.0 90.0 Cash Cost, Before By-product Credits, per Silver Ounce $ 25.79 $ 22.95 $ 14.58 $ 23.15 $ 1,797 $ 1,797 By-product credits per silver ounce (25.46 ) (18.61 ) (1.82 ) (19.64 ) (7 ) (7 ) Cash Cost, After By-product Credits, per Silver Ounce $ 0.34 $ 4.34 $ 12.76 $ 3.51 $ 1,790 $ 1,790 AISC, Before By-product Credits, per Silver Ounce $ 30.89 $ 30.67 $ 14.78 $ 30.81 $ 2,227 $ 2,227 By-product credits per silver ounce (25.46 ) (18.61 ) (1.82 ) (19.64 ) (7 ) (7 ) AISC, After By-product Credits, per Silver Ounce $ 5.43 $ 12.06 $ 12.96 $ 11.18 $ 2,220 $ 2,220 (1) Includes all direct and indirect operating costs related to the physical activities of producing metals, including mining, processing and other plant costs, third-party refining and marketing expense, on-site general and administrative costs and royalties, before by-product revenues earned from all metals other than the primary metal produced at each operation. AISC, Before By-product Credits also includes reclamation and sustaining capital costs. (2) AISC, Before By-product Credits for our consolidated silver properties includes corporate costs for general and administrative expense, and sustaining capital. 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, fair value adjustments, net, interest and other income, provisions for environmental matters, stock-based compensation, provisional price gains and losses, monetization of zinc hedges and 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 2Q-2023 1Q-2023 4Q-2022 3Q-2022 2Q-2022 LTM June 30, 2023 FY 2022 Net loss $ (15,694 ) $ (3,171 ) $ (4,452 ) $ (23,526 ) $ (13,523 ) $ (46,843 ) $ (37,348 ) Interest expense 10,311 10,165 11,008 10,874 10,505 42,358 42,793 Income and mining taxes 5,162 3,242 (3,924 ) (9,527 ) 254 (5,047 ) (7,566 ) Depreciation, depletion and amortization 34,718 39,892 37,576 32,992 38,072 145,178 143,938 Ramp-up and suspension costs 16,323 11,336 7,575 5,092 5,242 40,326 24,114 (Gain) loss on disposition of properties, plants, equipment, and mineral interests (75 ) — — 19 5 (56 ) 16 Foreign exchange loss (gain) 3,850 (108 ) 900 (5,667 ) (4,482 ) (1,025 ) (7,211 ) Fair value adjustments, net 2,558 (3,181 ) (9,985 ) 4,241 16,428 (6,368 ) 4,788 Provisional price (gains) losses (2,143 ) (2,093 ) (625 ) 6,625 15,807 1,764 20,839 Provision for closed operations and environmental matters 3,111 1,044 3,741 1,781 1,628 9,677 8,793 Stock-based compensation 1,498 1,190 1,714 1,773 1,254 6,175 6,012 Adjustments of inventory to net realizable value 2,997 4,521 487 1,405 754 9,410 2,646 Monetization of zinc hedges 5,467 (579 ) 16,664 — — 21,552 16,664 Other (343 ) (355 ) 1,582 473 (1,470 ) 1,357 (986 ) Adjusted EBITDA $ 67,739 $ 61,903 $ 62,261 $ 26,555 $ 70,474 $ 218,458 $ 217,492 Total debt $ 571,030 $ 527,225 Less: Cash and cash equivalents 106,786 104,743 Net debt $ 464,244 $ 422,482 Net debt/LTM adjusted EBITDA (non-GAAP) 2.1 1.9 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 2Q-2023 1Q-2023 4Q-2022 3Q-2022 2Q-2022 YTD-2023 YTD-2022 Net loss applicable to common stockholders $ (15,832 ) $ (3,309 ) $ (4,590 ) $ (23,664 ) $ (13,661 ) $ (19,143 ) $ (9,646 ) Adjusted for items below: Fair value adjustments, net 2,558 (3,181 ) (9,985 ) 4,241 16,428 $ (624 ) 10,532 Provisional pricing (gains) losses (2,143 ) (2,093 ) (625 ) 6,625 15,807 $ (4,236 ) 14,839 Environmental accruals 1,989 — 2,860 — — $ 1,989 14 Foreign exchange loss (gain) 3,850 (108 ) 900 (5,667 ) (4,482 ) $ 3,742 (2,444 ) Ramp-up and suspension costs 16,323 11,336 7,575 5,092 5,242 $ 27,659 11,447 (Gain) loss on disposition of properties, plants, equipment and mineral interests (75 ) — — 19 5 $ (75 ) (3 ) Adjustments of inventory to net realizable value 2,997 4,521 487 1,405 754 $ 7,518 754 Monetization of zinc hedges 5,467 (579 ) 16,664 — — $ 4,888 — Other — — 939 — — $ — — Adjusted income (loss) applicable to common stockholders $ 15,133 $ 6,587 $ 14,225 $ (11,949 ) $ 20,093 $ 21,720 $ 25,493 Weighted average shares - basic 604,088 600,075 596,959 554,531 539,401 602,077 538,943 Weighted average shares - diluted 604,088 600,075 596,959 554,531 539,401 602,077 539,401 Basic adjusted net income (loss) per common stock (in cents) 0.03 0.01 0.02 (0.02 ) 0.04 0.04 0.05 Diluted adjusted net income (loss) per common stock (in cents) 0.03 0.01 0.02 (0.02 ) 0.04 0.04 0.05 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 June 30, Six Months Ended June 30, 2023 2022 2023 2022 Cash provided by operating activities $ 23,777 $ 40,183 $ 64,380 $ 78,092 Less: Additions to properties, plants equipment and mineral interests $ (51,468 ) $ (34,329 ) $ (105,911 ) $ (55,807 ) Free cash flow $ (27,691 ) $ 5,854 $ (41,531 ) $ 22,285 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, and Casa Berardi operating segments excludes exploration and pre-development expense, as it is a discretionary expenditure and not a component of the mines’ operating performance. Dollars are in thousands Total Silver Operations Six Months Ended June 30, Years Ended December 31, 2023 2022 2021 2020 Cash provided by operating activities $ 787,521 $ 151,673 $ 188,434 $ 271,309 $ 176,105 Exploration $ 12,719 $ 2,208 $ 5,920 $ 4,591 $ - Less: Additions to properties, plants equipment and mineral interests $ (233,629 ) $ (46,510 ) $ (87,890 ) $ (53,768 ) $ (45,461 ) Free cash flow $ 566,611 $ 107,371 $ 106,464 $ 222,132 $ 130,644 TABLE A Assay Results – Q2 2023 Greens Creek (Alaska) Zone Drillhole Number Drillhole Azm/Dip Sample From (feet) Sample To (feet) Est. True Width (feet) Silver (oz/ton) Gold (oz/ton) Zinc (%) Lead (%) Depth From Mine Portal (feet) 9A GC6023 207/21 239.8 250.2 10.1 10.7 0.04 8.8 6.5 -19 200 South GC5854 243/-31 110.0 112.0 0.7 0.9 0.00 11.1 4.5 -1357 200 South GC5872 239/-89 1173.0 1188.0 15.0 10.6 0.09 0.2 0.1 -2477 200 South GC5891 157/-64 103.4 106.8 3.3 15.2 0.02 19.5 7.5 -1399 200 South GC5891 157/-64 715.0 725.0 8.1 17.0 0.19 3.3 1.9 -1950 200 South GC5891 157/-64 753.5 755.0 1.2 4.1 0.01 14.7 8.9 -1950 200 South GC5913 305/49 418.0 422.0 2.2 0.9 0.24 4.9 1.7 -1449 East Zone GC5926 74/21 573.5 577.0 2.4 8.1 0.08 1.0 0.5 860 East Zone GC5926 74/21 585.2 590.0 3.2 14.8 0.14 4.5 2.0 860 East Zone GC5937 63/-28 322.0 328.0 5.7 12.6 0.05 7.7 3.5 402 East Zone GC6027 49/47 145.0 151.8 3.6 20.9 0.04 3.4 2.2 10 East Zone GC6027 49/47 158.0 163.0 2.7 13.9 0.02 2.7 1.7 10 Gallagher Zone GC5931 63/-60 200.0 202.0 1.8 6.9 0.24 2.0 1.0 -926 Gallagher Zone GC5931 63/-60 211.0 260.5 45.3 7.9 0.22 10.5 4.8 -976 Gallagher Zone GC5931 63/-60 377.0 389.5 12.5 3.7 0.12 8.8 3.8 -1089 Gallagher Zone GC5931 63/-60 463.0 464.0 0.9 2.8 0.02 9.1 5.9 -1154 Gallagher Zone GC5931 63/-60 480.5 486.0 4.9 6.4 0.06 4.4 2.0 -1173 Gallagher Zone GC5945 75/-59 208.0 213.5 5.2 10.6 0.15 1.9 1.2 -992 Gallagher Zone GC5945 75/-59 235.0 237.0 1.9 27.0 0.19 5.4 3.4 -992 Gallagher Zone GC5945 75/-59 244.0 266.0 13.7 7.8 0.17 7.1 4.2 -1067 Gallagher Zone GC5957 67/-81 210.3 212.3 2.0 7.4 0.04 3.9 2.1 -957 Gallagher Zone GC5971 74/-51 427.0 432.0 4.4 9.5 0.21 7.0 3.3 -1088 Gallagher Zone GC5971 74/-51 469.3 484.2 14.9 9.0 0.07 2.6 1.3 -1127 Gallagher Zone GC5974 76/-39 268.8 298.0 22.4 3.6 0.07 6.0 2.6 -920 Gallagher Zone GC5985 63/-21 78.5 92.0 9.0 15.0 0.28 2.6 1.3 -752 Gallagher Zone GC5985 63/-21 212.0 242.0 24.9 3.9 0.09 8.4 3.5 -804 Gallagher Zone GC5985 63/-21 306.5 322.0 15.3 3.9 0.03 6.8 3.8 -835 Gallagher Zone GC5988 63/-36 75.0 80.3 5.0 26.1 0.08 4.7 2.4 -769 Gallagher Zone GC5988 63/-36 89.5 115.7 25.7 9.8 0.19 10.8 2.9 -786 Gallagher Zone GC5988 63/-36 202.0 222.7 20.6 4.8 0.11 5.5 2.6 -847 Gallagher Zone GC5988 63/-36 289.0 291.0 2.0 9.7 0.03 8.3 5.3 -897 Gallagher Zone GC5989 63/-59 57.0 61.5 4.3 7.3 0.10 7.7 4.0 -776 Gallagher Zone GC5989 63/-59 86.5 119.0 32.4 3.4 0.10 7.4 3.4 -812 Gallagher Zone GC5990 63/-87 53.0 62.0 9.0 4.1 0.06 9.7 3.9 -784 Gallagher Zone GC5993 73/-23 70.0 75.0 3.5 7.5 0.11 17.6 9.3 -758 Gallagher Zone GC5993 73/-23 150.5 250.5 74.0 4.7 0.13 6.9 2.6 -819 Gallagher Zone GC5993 73/-23 320.0 329.0 8.6 4.7 0.04 11.3 9.1 -876 Gallagher Zone GC5999 63/-49 57.5 67.0 9.5 2.8 0.06 8.1 4.2 -771 Gallagher Zone GC5999 63/-49 100.5 113.5 13.0 3.0 0.13 9.5 3.0 -806 Gallagher Zone GC6001 60/-29 95.7 233.0 111.1 4.2 0.13 9.2 3.9 -802 Gallagher Zone GC6003 63/-11 111.0 115.0 2.9 14.2 0.18 3.5 1.6 -832 Gallagher Zone GC6003 63/-11 450.0 452.0 1.9 20.0 0.08 0.5 0.3 -1197 Gallagher Zone GC6003 63/-11 455.0 458.0 2.4 14.5 0.03 0.7 0.3 -1177 Gallagher Zone GC6007 243/25 86.5 94.0 5.1 16.9 0.57 5.9 2.7 -668 Gallagher Zone GC6007 243/25 141.0 158.2 12.2 5.2 0.07 4.4 2.0 -649 Gallagher Zone GC6008 244/52 35.0 45.5 7.9 3.5 0.06 4.9 2.3 -669 Gallagher Zone GC6014 257/-84 43.0 51.4 8.3 5.0 0.06 4.7 2.6 -741 Gallagher Zone GC6014 257/-84 496.5 543.5 41.3 21.6 0.07 0.6 0.4 -1239 Gallagher Zone GC6014 257/-84 556.5 559.0 2.2 20.5 0.13 3.0 1.6 -1239 Gallagher Zone GC6021 57/-45 13.3 18.5 5.2 2.4 0.04 10.7 5.1 -735 Gallagher Zone GC6021 57/-45 124.0 132.0 4.6 7.2 0.08 3.6 1.8 -812 Gallagher Zone GC6021 57/-45 192.0 195.0 2.8 0.3 0.39 0.0 0.0 -859 Gallagher Zone GC6022 63/-11 17.8 33.4 12.4 12.5 0.21 9.5 4.6 -722 Gallagher Zone GC6022 63/-11 60.8 73.0 10.0 7.5 0.08 5.5 2.2 -730 Gallagher Zone GC6022 63/-11 160.0 190.0 26.9 4.1 0.10 3.9 1.8 -750 Upper Plate GC6004 313/77 500.5 502.2 1.7 24.3 0.00 1.1 0.6 306 Upper Plate GC6020 282/63 590.5 597.5 7.0 10.8 0.06 14.1 6.0 344 Upper Plate GC6025 27/47 750.4 752.6 2.1 26.1 0.26 16.6 6.6 372 Upper Plate GC6036 40/73 490.0 503.5 13.5 17.0 0.07 6.4 3.2 304 Upper Plate GC6036 40/73 526.5 529.0 2.5 13.6 0.03 13.4 4.1 336 Upper Plate GC6039 47/68 485.5 500.5 13.4 15.2 0.04 1.1 0.5 328 Upper Plate GC6039 47/68 534.0 537.5 3.4 21.2 0.02 18.0 6.5 288 Upper Plate GC6041 61/67 476.2 491.0 13.2 23.0 0.05 6.2 3.1 278 Upper Plate GC6041 61/67 512.5 515.3 2.8 13.6 0.02 23.4 6.9 302 Upper Plate GC6044 59/73 467.0 468.5 1.5 4.2 0.00 14.8 8.0 275 Upper Plate GC6044 59/73 478.8 489.0 10.1 12.2 0.06 5.2 2.7 295 Upper Plate GC6044 59/73 508.5 509.5 1.0 19.5 0.02 7.7 2.6 315 Upper Plate GC6048 75/67 461.0 462.0 1.0 25.7 0.02 14.8 2.1 251 Upper Plate GC6050 88/64 432.0 434.5 2.3 16.3 0.01 13.0 7.3 219 Upper Plate GC6054 100/71 499.0 502.0 2.9 0.3 2.35 0.2 0.2 295 Upper Plate GC5979 14/74 492.0 510.0 18.0 20.7 0.06 1.7 0.7 319 Upper Plate GC5979 14/74 545.0 549.5 4.3 33.3 0.03 13.8 5.4 263 Upper Plate GC6004 313/77 500.5 502.2 1.7 24.3 0.00 1.1 0.6 306 Upper Plate GC6025 27/47 750.4 752.6 2.1 26.1 0.26 16.6 6.6 372 West Definition GC5933 73/-19 169.0 194.0 23.3 4.5 0.21 5.9 0.9 -534 West Definition GC5933 73/-19 283.5 289.0 4.8 2.1 0.05 17.3 1.7 -570 West Definition GC5933 73/-19 500.3 502.0 1.6 9.5 0.01 3.2 1.4 -651 West Definition GC5933 73/-19 538.3 539.3 1.0 10.3 0.05 15.2 3.9 -669 West Definition GC5934 63/-43 321.5 322.5 1.0 14.5 0.03 3.7 1.7 332 West Definition GC5934 63/-43 327.5 328.5 1.0 8.3 0.04 2.6 1.2 332 West Definition GC5939 72/-14 176.5 202.5 21.9 4.7 0.23 10.2 1.9 -528 West Definition GC5939 72/-14 296.5 297.5 0.9 5.2 0.04 12.6 1.9 -565 West Definition GC5939 72/-14 527.0 530.5 3.3 7.9 0.03 6.4 2.9 -621 West Definition GC5940 45/-58 314.0 318.0 3.8 41.2 0.46 5.2 2.5 305 West Definition GC5944 49/-49 320.5 332.5 12.0 10.1 0.05 1.9 0.9 308 West Definition GC5947 34/-49 314.0 316.0 2.0 9.9 0.03 1.5 0.6 311 West Definition GC5948 72/-10 581.9 593.0 10.2 5.8 0.04 12.7 3.2 -590 West Definition GC5950 75/-47 327.5 340.0 12.2 8.8 0.05 3.5 1.9 304 West Definition GC5952 73/-40 309.0 312.0 3.0 5.4 0.02 5.4 2.6 345 West Definition GC5952 73/-40 334.7 355.0 17.6 5.9 0.01 3.4 2.1 318 West Definition GC5954 92/-56 342.0 344.0 1.9 38.2 0.20 4.3 0.8 -746 West Definition GC5954 92/-56 358.5 361.0 2.4 62.8 0.34 1.0 0.4 -741 West Definition GC5956 67/-11 558.0 563.0 4.8 10.5 0.04 11.5 3.6 -582 West Definition GC5956 67/-11 578.5 580.0 1.4 20.2 0.09 19.2 7.4 -587 West Definition GC5958 84/-42 343.0 355.0 11.4 6.6 0.09 2.4 1.4 285 West Definition GC5958 84/-42 360.0 372.0 11.4 14.0 0.08 7.6 5.1 267 West Definition GC5964 67/-20 168.0 182.0 11.2 6.3 0.15 8.9 1.5 -536 West Definition GC5964 67/-20 271.8 275.1 3.2 2.4 0.07 19.8 1.0 -571 West Definition GC5973 62/-15 537.0 542.0 4.2 4.4 0.09 17.7 4.9 -609 West Definition GC5973 62/-15 554.5 558.5 3.4 7.8 0.03 14.4 5.6 -613 West Definition GC5976 61/-22 162.0 179.0 15.8 4.4 0.22 6.7 0.8 -531 West Definition GC5976 61/-22 496.6 505.2 8.3 13.0 0.11 14.4 3.4 -635 West Definition GC5980 61/-27 477.5 486.0 8.1 7.7 0.04 8.0 3.3 -670 West Definition GC5982 56/-14 546.0 557.5 9.4 9.2 0.06 31.6 10.8 -579 West Definition GC5986 54/-28 455.9 461.8 5.7 10.3 0.05 16.4 2.5 -676 West Definition GC5987 57/-10 558.5 559.5 0.7 9.5 0.02 9.0 3.2 -544 West Definition GC5992 53/-34 443.2 449.4 6.2 2.9 0.03 14.3 2.3 -718 West Definition GC6000 50/-21 536.0 554.0 15.2 63.4 0.84 11.9 3.8 -641 West Definition GC6005 71/-7 606.5 620.0 11.6 7.4 0.04 12.3 2.6 -530 West Definition GC6009 47/-30 478.2 489.0 10.0 4.6 0.13 6.9 1.6 -704 West Definition GC6013 71/-2 613.2 621.6 7.4 23.9 0.04 8.9 3.6 -519 West Definition GC6019 54/-7 541.0 544.0 2.7 7.0 0.06 14.7 4.0 -543 West Definition GC6019 54/-7 548.5 549.5 0.9 12.2 0.06 5.6 2.8 -543 West Definition GC6019 54/-7 554.0 555.0 0.9 7.6 0.08 3.3 1.3 -543 West Definition GC6028 54/-11 515.8 519.0 3.1 22.3 0.29 8.8 3.3 -585 West Definition GC6032 55/-2 545.9 551.9 5.5 16.7 0.20 7.3 2.5 -517 West Definition GC6040 60/-5 545.0 546.5 1.3 18.6 0.04 10.1 5.4 -528 West Definition GC6042 65/-23 468.4 470.5 2.1 5.6 0.03 18.7 4.5 -678 West Definition GC6049 85/-12 563.0 571.1 6.0 2.2 0.02 19.0 2.8 -565 West Definition GC6055 65/-18 501.5 506.0 3.3 3.0 0.04 26.7 4.6 -603 West Definition GC6056 52/2 322.0 324.5 1.8 3.6 0.13 11.3 0.1 -451 West Definition GC6058 52/6 658.1 665.3 5.4 7.5 0.07 7.7 1.4 -391 West Definition GC6062 51/-13 495.5 501.0 5.1 4.6 0.05 20.6 4.6 -606 Keno Hill (Yukon) Zone Drillhole Number Drillhole Azm/Dip Sample From (feet) Sample To (feet) True Width (feet) Silver (oz/ton) Gold (oz/ton) Lead (%) Zinc (%) Depth From Surface (feet) Flame and Moth FMUG22-030 276/-10 164.7 167.6 2.6 4.9 0.01 1.5 0.3 368 Flame and Moth FMUG22-030 276/-10 193.4 197.1 3.4 16.5 0.00 2.5 0.5 372 Flame and Moth FMUG22-030 276/-10 209.3 220.1 10.4 9.7 0.01 2.6 1.7 374 Flame and Moth FMUG22-030 276/-10 227.4 228.1 0.8 34.4 0.00 2.0 3.3 377 Flame and Moth FMUG22-031 268/-16 200.0 207.8 5.9 16.0 0.00 0.9 0.2 398 Flame and Moth FMUG22-031 268/-16 216.2 222.3 5.2 4.1 0.00 1.6 0.4 400 Flame and Moth FMUG22-031 268/-16 230.6 231.7 0.9 7.4 0.00 1.6 0.6 404 Flame and Moth FMUG22-032 262/12 271.8 286.3 8.2 1.8 0.01 0.7 0.2 277 Flame and Moth FMUG22-032 262/12 293.8 305.1 8.8 9.6 0.00 1.1 1.3 270 Flame and Moth FMUG22-034 262/-6 191.9 193.2 0.7 1.2 0.00 1.9 0.1 360 Flame and Moth FMUG22-034 262/-6 206.0 207.2 0.6 6.3 0.01 0.1 0.2 361 Flame and Moth FMUG22-034 262/-6 230.9 253.3 16.5 1.7 0.00 0.5 0.3 365 Flame and Moth FMUG22-036 262/-25 202.9 207.0 2.6 8.4 0.00 0.9 0.2 429 Flame and Moth FMUG22-036 262/-25 215.9 241.6 21.3 5.9 0.00 2.5 0.5 440 Flame and Moth FMUG22-037 256/-2 255.1 257.7 1.1 2.7 0.00 0.6 0.2 346 Flame and Moth FMUG22-039 252/-6 276.2 276.9 0.4 4.1 0.00 0.9 0.8 366 Flame and Moth FMUG22-039 252/-6 292.7 295.3 1.5 15.3 0.00 0.7 2.6 367 Flame and Moth FMUG22-039 252/-6 301.8 303.3 0.8 11.9 0.00 0.1 0.3 368 Bermingham BMUG23-037 140/4 227.0 239.9 12.2 3.1 0.00 0.6 0.6 359 Bermingham BMUG23-037 140/4 259.6 262.5 2.8 2.2 0.00 0.1 1.1 357 Bermingham BMUG23-037 140/4 285.1 289.3 4.0 2.0 0.00 0.0 0.3 353 Bermingham BMUG23-037 140/4 425.2 426.2 0.5 10.6 0.00 0.1 0.3 339 Bermingham BMUG23-037 140/4 435.9 443.7 5.2 12.3 0.01 1.7 0.6 337 Bermingham BMUG23-038 140/-8 240.5 241.1 0.6 7.7 0.00 0.6 0.2 408 Bermingham BMUG23-038 140/-8 362.2 362.9 0.4 3.8 0.00 1.5 0.8 419 Bermingham BMUG23-038 140/-8 478.8 480.8 1.2 16.1 0.00 0.5 2.5 397 Bermingham BMUG23-038 140/-8 520.0 521.2 0.7 3.1 0.00 0.5 0.5 433 Bermingham BMUG23-039 137/-1 227.6 230.6 2.7 19.7 0.00 0.1 2.0 378 Bermingham BMUG23-039 137/-1 447.8 452.8 3.5 4.9 0.00 0.5 0.2 373 Bermingham BMUG23-040 134/-4 236.9 238.2 1.2 1.4 0.00 1.3 0.0 358 Bermingham BMUG23-040 134/-4 246.1 248.3 2.0 8.6 0.00 0.1 1.0 357 Bermingham BMUG23-040 134/-4 295.3 295.7 0.4 30.0 0.00 4.6 0.3 352 Bermingham BMUG23-040 134 / -4 406.1 414.8 4.2 1.6 0.00 0.5 1.0 326 Bermingham BMUG23-041 131 / 7 215.1 226.6 11.2 3.5 0.00 0.4 0.4 342 Bermingham BMUG23-041 131 / 7 245.2 246.1 0.8 23.6 0.00 1.9 0.2 339 Bermingham BMUG23-041 131 / 7 354.3 354.7 0.2 5.4 0.00 0.7 2.0 319 Bermingham BMUG23-042 131 / 1 226.4 233.4 6.6 1.2 0.00 0.5 0.2 373 Bermingham BMUG23-042 131 / 1 423.6 425.0 0.7 2.9 0.00 0.8 3.5 363 Bermingham BMUG23-043 128/4 220.7 221.8 1.1 4.6 0.00 1.6 0.2 359 Bermingham BMUG23-043 128/4 236.2 239.3 2.9 1.5 0.00 0.1 0.5 358 Bermingham BMUG23-043 128/4 319.9 320.8 0.8 18.2 0.00 16.3 0.1 350 Bermingham BMUG23-043 128/4 403.0 406.0 1.7 0.1 0.00 0.1 0.0 340 Bermingham BMUG23-044 120/7 219.1 226.6 7.1 1.8 0.00 0.1 0.1 349 Bermingham BMUG23-044 120/7 232.7 235.7 2.8 120.9 0.01 1.5 3.3 346 Bermingham BMUG23-045 116/1 246.1 255.9 8.9 6.3 0.00 0.6 0.2 379 Bermingham BMUG23-046 105/12 243.6 244.1 0.4 86.2 0.01 4.4 4.4 322 Bermingham BMUG23-046 105/12 357.9 359.4 1.0 1.6 0.00 0.6 0.5 295 Bermingham BMUG23-047 97/13 169.7 173.3 2.2 2.1 0.00 0.1 0.4 337 Bermingham BMUG23-047 97/13 291.3 300.6 5.7 18.4 0.00 0.9 1.1 312 Bermingham BMUG23-047 97/13 310.5 311.2 0.5 2.0 0.00 0.7 0.5 307 Bermingham BMUG23-047 97/13 367.2 370.5 1.7 1.9 0.00 0.8 1.2 292 Bermingham BMUG23-048 134/-18 268.2 278.3 7.5 4.2 0.00 0.3 2.1 463 Bermingham BMUG23-049 128/-7 228.4 232.9 4.1 41.7 0.00 1.9 2.9 402 Bermingham BMUG23-050 119/-6 224.4 233.6 8.3 21.3 0.00 1.7 2.5 400 Bermingham BMUG23-050 119/-6 225.1 226.4 1.2 87.9 0.01 7.9 8.7 400 Bermingham BMUG23-050 119/-6 276.0 278.1 1.5 18.2 0.00 0.7 1.1 403 Bermingham BMUG23-050 119/-6 290.4 295.1 3.5 13.3 0.00 3.2 3.6 404 Bermingham BMUG23-051 119/-9 228.0 243.8 14.1 9.7 0.00 0.7 0.8 419 Bermingham BMUG23-051 119/-9 228.0 233.4 4.8 22.1 0.00 1.6 1.4 419 Bermingham BMUG23-051 119/-9 343.7 345.0 1.2 48.5 0.00 2.1 3.5 433 Bermingham BMUG23-051 119/-9 458.2 470.6 11.2 2.8 0.00 0.8 0.5 447 Bermingham BMUG23-051 119/-9 482.1 490.0 7.1 1.0 0.00 0.2 0.4 450 Bermingham BMUG23-052 120/-19 244.5 255.0 7.8 47.5 0.00 0.8 0.2 457 Bermingham BMUG23-052 120/-19 244.5 245.0 0.4 40.3 0.00 2.1 0.1 457 Bermingham BMUG23-052 120/-19 254.1 255.0 0.7 531.9 0.02 8.0 0.2 461 Bermingham BMUG23-052 120/-19 266.2 267.7 1.1 6.3 0.00 3.6 0.0 465 Bermingham BMUG23-052 120/-19 276.6 283.9 5.5 22.6 0.00 0.5 1.8 470 Bermingham BMUG23-052 120/-19 536.0 565.0 21.8 2.5 0.01 0.4 0.2 555 Bermingham BMUG23-052 120/-19 538.5 544.9 4.8 5.0 0.02 0.9 0.1 555 Bermingham BMUG23-052 120/-19 573.4 590.6 11.1 44.9 0.01 1.7 0.8 569 Bermingham BMUG23-052 120/-19 576.9 586.5 6.1 79.4 0.02 3.0 1.3 569 Bermingham Main Vein K-23-0838 270/-55 1071.0 1080.9 9.2 0.5 0.00 0.1 0.3 780 Bermingham Townsite Vein K-23-0839 281/-66 1299.9 1312.1 9.2 25.5 0.00 0.9 0.3 1139 Bermingham Townsite Vein Including 1309.8 1312.1 1.7 108.2 0.01 4.5 1.0 1142 View source version on businesswire.com: https://www.businesswire.com/news/home/20230808153211/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.com Website: http://www.hecla.com