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What changed in HECLA MINING CO/DE/'s 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of HECLA MINING CO/DE/'s 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+461 added−629 removedSource: 10-K (2026-02-17) vs 10-K (2025-02-13)

Top changes in HECLA MINING CO/DE/'s 2025 10-K

461 paragraphs added · 629 removed · 250 edited across 9 sections

Item 1. Business

Business — how the company describes what it does

72 edited+37 added−18 removed117 unchanged
Biggest changeThe sources for the market prices are the London Market Fixing prices from the London Bullion Market Association for silver and gold and the Cash Official prices from the London Metals Exchange for lead, zinc and copper. 2024 2023 2022 Silver (per oz.): Realized average $ 28.58 $ 23.33 $ 21.53 Market average $ 28.24 $ 23.39 $ 21.75 Market high $ 34.51 $ 26.03 $ 26.36 Market low $ 22.09 $ 20.09 $ 17.81 Gold (per oz.): Realized average $ 2,403 $ 1,939 $ 1,803 Market average $ 2,387 $ 1,943 $ 1,801 Market high $ 2,778 $ 2,049 $ 2,053 Market low $ 1,985 $ 1,811 $ 1,622 Lead (per lb.): Realized average $ 0.97 $ 1.03 $ 1.01 Market average $ 0.94 $ 0.97 $ 0.98 Market high $ 1.04 $ 1.06 $ 1.15 Market low $ 0.86 $ 0.90 $ 0.80 Zinc (per lb.): Realized average $ 1.37 $ 1.35 $ 1.41 Market average $ 1.26 $ 1.20 $ 1.58 Market high $ 1.47 $ 1.59 $ 2.05 Market low $ 1.04 $ 1.01 $ 1.23 Copper (per lb.): Realized average $ 4.20 NA NA Market average $ 4.15 NA NA Market high $ 4.90 NA NA Market low $ 3.66 NA NA The prices of the metals we produce are affected by numerous factors beyond our control.
Biggest changeThe sources for the market prices are the London Market Fixing prices from the London Bullion Market Association for silver and gold and the Cash Official prices from the London Metals Exchange for lead, zinc and copper. 2025 2024 2023 Silver (per oz.): Realized average $ 45.25 $ 28.58 $ 23.33 Market average $ 39.94 $ 28.24 $ 23.39 Market high $ 74.84 $ 34.51 $ 26.03 Market low $ 29.41 $ 22.09 $ 20.09 Gold (per oz.): Realized average $ 3,490 $ 2,403 $ 1,939 Market average $ 3,435 $ 2,387 $ 1,943 Market high $ 4,449 $ 2,778 $ 2,049 Market low $ 2,633 $ 1,985 $ 1,811 Lead (per lb.): Realized average $ 0.94 $ 0.97 $ 1.03 Market average $ 0.89 $ 0.94 $ 0.97 Market high $ 0.94 $ 1.04 $ 1.06 Market low $ 0.83 $ 0.86 $ 0.90 Zinc (per lb.): Realized average $ 1.39 $ 1.37 $ 1.35 Market average $ 1.30 $ 1.26 $ 1.20 Market high $ 1.52 $ 1.47 $ 1.59 Market low $ 1.14 $ 1.04 $ 1.01 Copper (per lb.): Realized average $ 4.75 $ 4.20 NA Market average $ 4.51 $ 4.15 NA Market high $ 5.71 $ 4.90 NA Market low $ 3.89 $ 3.66 NA 5 The prices of the metals we produce are affected by numerous factors beyond our control.
Our business is subject to a number of other risks and hazards including: • environmental hazards; • unusual or unexpected geologic formations; • rock bursts, ground falls, pit wall failures, or tailings or other impoundment breaches or failures; • seismic activity; • shaft failure; • road and bridge failures; • underground floods or fires (such as we experienced in August 2023 when there was a fire deep within the #2 shaft at our Lucky Friday unit which caused production there to stop for approximately 5 months, before production resumed in January 2024); • unanticipated hydrologic conditions, including lack of precipitation, flooding, rapid snow melt and associated runoff, and periodic interruptions due to inclement or hazardous weather conditions; • civil unrest or terrorism; • cybersecurity attacks; • changes in interpretation or enforcement of regulatory and permitting requirements; • industrial accidents; • disruption, damage or failure of power, technology or other systems related to operation of equipment and other aspects of our mine operations; • labor disputes or strikes; and • tailing ponds and other impoundments and dams which in the past have failed and could again fail or leak as a result of design or construction flaws, seismic activity, unusual weather or for other reasons.
Our business is subject to a number of other risks and hazards including: • environmental hazards; • unusual or unexpected geologic formations; • rock bursts, ground falls, pit wall failures, or tailings or other impoundment breaches or failures; • seismic activity; • shaft failure; • road and bridge failures; 15 • underground floods or fires (such as we experienced in August 2023 when there was a fire deep within the #2 shaft at our Lucky Friday unit which caused production there to stop for approximately 5 months, before production resumed in January 2024); • unanticipated hydrologic conditions, including lack of precipitation, flooding, rapid snow melt and associated runoff, and periodic interruptions due to inclement or hazardous weather conditions; • civil unrest or terrorism; • cybersecurity attacks; • changes in interpretation or enforcement of regulatory and permitting requirements; • industrial accidents; • disruption, damage or failure of power, technology or other systems related to operation of equipment and other aspects of our mine operations; • labor disputes or strikes; and • tailing ponds and other impoundments and dams which in the past have failed and could again fail or leak as a result of design or construction flaws, seismic activity, unusual weather or for other reasons.
Management ’ s Discussion and Analysis of Financial Condition and Results of Operations , Note 2 of Notes to Consolidated Financial Statements, and the risk factors set forth below: “ Our costs of extending existing reserves or development of new orebodies and other capital costs may be higher and provide less return than we estimated, ” “ Our mineral reserve and resource estimates may be imprecise, ” “ We are currently involved in ongoing legal disputes that may materially adversely affect us, ” and “ Our environmental and asset retirement obligations may exceed the provisions we have made. ” Commodity and currency risk management activities could prevent us from realizing possible revenues or lower costs or expose us to losses.
Management ’ s Discussion and Analysis of Financial Condition and Results of Operations , Note 2 of Notes to Consolidated Financial Statements, and the risk factors set forth below: “ Our costs of extending existing reserves or development of new orebodies and other capital costs may be higher and provide less return than we estimated, ” “ Our mineral reserve and resource estimates may be imprecise, ” “ We are currently involved in ongoing legal disputes 12 that may materially adversely affect us, ” and “ Our environmental and asset retirement obligations may exceed the provisions we have made. ” Commodity and currency risk management activities could prevent us from realizing possible revenues or lower costs or expose us to losses.
Foreign Corrupt Practices Act; • disadvantages of competing against companies from countries that are not subject to U.S. laws and regulations; • fuel or other commodity shortages; • illegal mining; • laws or policies of foreign countries and the United States affecting trade, investment and taxation; • opposition to our presence, operations, properties or plans by governmental or non-governmental organizations or civic groups; • civil disturbances, war and terrorist actions; and • seizures of assets.
Foreign Corrupt Practices Act; • disadvantages of competing against companies from countries that are not subject to U.S. laws and regulations; • fuel or other commodity shortages; • illegal mining; • laws or policies of foreign countries and the United States affecting trade, investment and taxation; 19 • opposition to our presence, operations, properties or plans by governmental or non-governmental organizations or civic groups; • civil disturbances, war and terrorist actions; and • seizures of assets.
The estimated quantities and economic value of mineral reserves may be adversely affected by: • declines in the market price of the various metals we mine; • increased production or capital costs; • reduction in the grade or tonnage of the deposit; • decrease in throughput; • increase in the dilution of the ore; • future foreign currency rates, inflation rates and applicable tax rates; • current and future tariffs; • reduced metal recovery; and • changes in environmental, permitting or other regulatory requirements.
The estimated quantities and economic value of mineral reserves may be adversely affected by: • declines in the market price of the various metals we mine; • increased production or capital costs; • reduction in the grade or tonnage of the deposit; • decrease in throughput; • increase in the dilution of the ore; • future foreign currency rates, inflation rates and applicable tax rates; 17 • current and future tariffs; • reduced metal recovery; and • changes in environmental, permitting or other regulatory requirements.
If we are unable to realize a return on these investments, we may incur a related asset write-down that could adversely affect our financial results or condition. Our ability to sustain or increase our current level of metals production partly depends on our ability to develop new orebodies and/or expand existing mining operations.
If we are unable to realize a return on these investments, we may incur a related asset write-down that could adversely affect our financial results or condition. 16 Our ability to sustain or increase our current level of metals production partly depends on our ability to develop new orebodies and/or expand existing mining operations.
Advanced education can improve job performance and increase advancement opportunities for the employee, while providing flexibility to our company by increasing the employee’s knowledge base and skill set. Annual employee surveys are conducted to gauge employee concerns and morale. The results of the surveys, and any responsive measures, are shared with our Board of Directors.
Advanced education can improve job performance and increase advancement opportunities for the employee, while providing flexibility to our company by increasing the employee’s knowledge base and skill set. Typically, annual employee surveys are conducted to gauge employee concerns and morale. The results of the surveys, and any responsive measures, are shared with our Board of Directors.
Our operations may be adversely affected by risks and hazards associated with the mining industry that may not be fully covered by insurance. 14 Our business is capital intensive, requiring ongoing investment for the replacement, modernization or expansion of equipment and facilities. Our mining and milling operations are subject to risks of process disruptions and equipment malfunctions.
Our operations may be adversely affected by risks and hazards associated with the mining industry that may not be fully covered by insurance. Our business is capital intensive, requiring ongoing investment for the replacement, modernization or expansion of equipment and facilities. Our mining and milling operations are subject to risks of process disruptions and equipment malfunctions.
For example, although our Keno Hill 19 subsidiary is a party to a Cooperation and Benefits Agreement with the First Nation of Na-Cho Nyäk Dun (“FNNND”), in whose traditional territory Keno Hill is located, the agreement does not address wealth sharing, and instead the parties have deferred such discussions.
For example, although our Keno Hill subsidiary is a party to a Cooperation and Benefits Agreement with the First Nation of Na-Cho Nyäk Dun (“FNNND”), in whose traditional territory Keno Hill is located, the agreement does not address wealth sharing, and instead the parties have deferred such discussions.
Such risks could result in: • personal injury or fatalities; • damage to or destruction of mineral properties or producing facilities; • environmental damage and financial penalties; • delays in exploration, development or mining; • monetary losses; • inability to meet our financial obligations; 15 • asset impairment charges; • legal liability; and • temporary or permanent closure of facilities.
Such risks could result in: • personal injury or fatalities; • damage to or destruction of mineral properties or producing facilities; • environmental damage and financial penalties; • delays in exploration, development or mining; • monetary losses; • inability to meet our financial obligations; • asset impairment charges; • legal liability; and • temporary or permanent closure of facilities.
We strive to achieve excellent mine safety and health performance, and attempt to implement reasonable best practices with respect to mine safety and emergency preparedness. Achieving and maintaining compliance with regulations is challenging and may increase our operating costs. See Human Capital - Health and Safety below and Item 1A.
We strive to achieve excellent mine safety and health performance, and attempt 6 to implement reasonable best practices with respect to mine safety and emergency preparedness. Achieving and maintaining compliance with regulations is challenging and may increase our operating costs. See Human Capital - Health and Safety below and Item 1A.
Additionally, significant future issuances of common stock or common stock equivalents, or changes in the direct or indirect ownership of our common stock or common stock 12 equivalents, could limit our ability to utilize our net operating loss carryforwards pursuant to Section 382 of the Internal Revenue Code.
Additionally, significant future issuances of common stock or common stock equivalents, or changes in the direct or indirect ownership of our common stock or common stock equivalents, could limit our ability to utilize our net operating loss carryforwards pursuant to Section 382 of the Internal Revenue Code.
Because we conduct operations internationally, we are subject to political, social, legal and economic risks such as: • the effects of local political, labor and economic developments and unrest; • significant or abrupt changes in the applicable regulatory or legal climate; • significant changes to regulations or laws or the interpretation or enforcement of them; • exchange controls and export restrictions; • expropriation or nationalization of assets with inadequate compensation; • unfavorable currency fluctuations, particularly in the exchange rate between the U.S. dollar and the Canadian dollar and Mexican Peso; 18 • repatriation restrictions; • invalidation and unavailability of governmental orders, permits or agreements; • property ownership disputes; • renegotiation or nullification of existing concessions, licenses, permits and contracts; • criminal activity, corruption, demands for improper payments, expropriation, and uncertain legal enforcement and physical security; • failure to maintain compliance with corruption and transparency statutes, including the U.S.
Because we conduct operations internationally, we are subject to political, social, legal and economic risks such as: • the effects of local political, labor and economic developments and unrest; • significant or abrupt changes in the applicable regulatory or legal climate; • significant changes to regulations or laws or the interpretation or enforcement of them; • exchange controls and export restrictions; • expropriation or nationalization of assets with inadequate compensation; • unfavorable currency fluctuations, particularly in the exchange rate between the U.S. dollar and the Canadian dollar; • repatriation restrictions; • invalidation and unavailability of governmental orders, permits or agreements; • property ownership disputes; • renegotiation or nullification of existing concessions, licenses, permits and contracts; • criminal activity, corruption, demands for improper payments, expropriation, and uncertain legal enforcement and physical security; • failure to maintain compliance with corruption and transparency statutes, including the U.S.
Management’s Discussion and Analysis of Consolidated Financial Condition and Results of Operations , as well as the Consolidated Financial Statements and Notes thereto. 5 Products and Segments Our segments are differentiated by geographic region located in North America.
Management’s Discussion and Analysis of Consolidated Financial Condition and Results of Operations , as well as the Consolidated Financial Statements and Notes thereto. Products and Segments Our segments are differentiated by geographic region located in North America.
Our segments as of December 31, 2024 included: • Greens Creek located on Admiralty Island, near Juneau, Alaska - 100% owned and has been in production since 1989. • Lucky Friday located in northern Idaho - 100% owned and has been a producing mine for us since 1958. • Keno Hill located in the Keno Hill Silver District in Canada's Yukon Territory - 100% owned and was acquired as part of our acquisition of Alexco in September 2022.
Our segments as of December 31, 2025 included: • Greens Creek located on Admiralty Island, near Juneau, Alaska - 100% owned and has been in production since 1989. • Lucky Friday located in northern Idaho - 100% owned and has been a producing mine for us since 1958. • Keno Hill located in the Keno Hill Silver District in Canada's Yukon Territory - 100% owned and was acquired as part of our acquisition of Alexco in September 2022.
The potential liabilities associated with the pre-existing environmental conditions at Keno Hill are indemnified by Canada under the terms and conditions of the ARSA, subject to the requirement for ERDC to develop, permit, and implement the Reclamation Plan, or if Hecla and Canada agree to transfer portions of the historic area to active mining operations within the Keno Hill unit, then such indemnification ceases to the extent of such transferred area.
The potential liabilities associated with the pre-existing environmental conditions at Keno Hill are indemnified by Canada under the terms and conditions of the ARSA, subject to the requirement for ERDC to develop, permit, and implement the Reclamation Plan, or if Hecla and Canada agree to transfer portions of the historical area to active mining operations within the Keno Hill unit, then such indemnification ceases to the extent of such transferred area.
See the below Risk Factors “We may be subject to a number of unanticipated risks related to inadequate infrastructure” and “Our operations may be adversely affected by risks and hazards associated with the mining industry that may not be fully covered by insurance." 13 In addition, we have identified opportunities and potential risks for Hecla as we shift toward a low-carbon economy.
See the Risk Factors “We may be subject to a number of unanticipated risks related to inadequate infrastructure” and “Our operations may be adversely affected by risks and hazards associated with the mining industry that may not be fully covered by insurance." In addition, we have identified opportunities and potential risks for Hecla as we shift toward a low-carbon economy.
The more significant areas requiring the use of management assumptions and estimates relate to: • mineral reserves, resources, and exploration targets that are the basis for future income and cash flow estimates and units-of-production depreciation, depletion and amortization calculations; • future ore grades, throughput and recoveries; 11 • future metals prices; • future capital and operating costs; • environmental, reclamation and closure obligations; • permitting and other regulatory considerations; • asset impairments; • valuation of business combinations; • insurance proceeds; • future foreign exchange rates, inflation rates and applicable tax rates; • reserves for contingencies and litigation; and • deferred tax asset valuation allowance.
The more significant areas requiring the use of management assumptions and estimates relate to: • mineral reserves, resources, and exploration targets that are the basis for future income and cash flow estimates and units-of-production depreciation, depletion and amortization calculations; • future ore grades, throughput and recoveries; • future metals prices; • future capital and operating costs; • environmental, reclamation and closure obligations; • permitting and other regulatory considerations; • asset impairments; • valuation of business combinations or divestitures; • insurance proceeds; • future foreign exchange rates, inflation rates and applicable tax rates; • reserves for contingencies and litigation; and • deferred tax asset valuation allowance.
The vast majority of our employees are full-time. Approximately 260 of our employees at the Lucky Friday were covered by a collective bargaining agreement. The attraction, development and retention of people is critical to delivering our business strategy. Key areas of focus for us include: Health and Safety The safety and health of our employees is of paramount importance.
The vast majority of our employees are full-time. Approximately 325 of our employees at the Lucky Friday were covered by a collective bargaining agreement. The attraction, development and retention of people is critical to delivering our business strategy. Key areas of focus for us include: Health and Safety The safety and health of our employees is of paramount importance.
Under the ARSA and related documents, ERDC, as a paid contractor for the Yukon Government, is responsible for the development and eventual implementation of the district wide reclamation and closure plan (“Reclamation Plan”) which addresses the historic environmental liabilities of the district from past mining activities pre-dating Hecla’s (and Alexco's) acquisition of the Keno Hill project, as well as for carrying out care and maintenance at various locations within the historical Keno Hill site until the Reclamation Plan is implemented.
Under the ARSA and related documents, ERDC, as a paid contractor for the Federal Government of Canada, is responsible for the development and eventual implementation of the district wide reclamation and closure plan (“Reclamation Plan”) which addresses the historic environmental liabilities of the district from past mining activities pre-dating Hecla’s (and Alexco's) acquisition of the Keno Hill project, as well as for carrying out care and maintenance at various locations within the historical Keno Hill site until the Reclamation Plan is implemented.
We started testing the UCB method in 2020 and it was used for approximately 86%, 87% and 88% of the tons mined at Lucky Friday in 2024, 2023 and 2022, respectively. The UCB method has not been used at other mines.
We started testing the UCB method in 2020 and it was used for approximately 88%, 86% and 87% of the tons mined at Lucky Friday in 2025, 2024 and 2023, respectively. The UCB method has not been used at other mines.
At December 31, 2024, the book value of our properties, plants, equipment and mine development, net of accumulated depreciation, was approximately $2.7 billion. For more information see Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations. We maintain insurance policies against property loss and business interruption.
At December 31, 2025, the book value of our properties, plants, equipment and mine development, net of accumulated depreciation, was approximately $2.8 billion. For more information see Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations. We maintain insurance policies against property loss and business interruption.
Keno Hill is located at a site in the Yukon Territory where extensive historical mining activity occurred. The mining claims and rights that comprise our Keno Hill mine are owned by two of our indirect, wholly-owned subsidiaries, Alexco Keno Hill Mining Company and Elsa Reclamation & Development Company Ltd. (“ERDC”).
Keno Hill is located in a region of the Yukon Territory where extensive historical mining activity occurred. The mining claims and rights that comprise our Keno Hill mine are owned by two of our indirect, wholly-owned subsidiaries, Alexco Keno Hill Mining Company and Elsa Reclamation & Development Company Ltd. (“ERDC”).
However, we utilize financially-settled forward contracts for the metals we produce with the objective of managing the exposure to changes in prices of those metals contained in our concentrate shipments between the time of sale and final settlement.
However, we utilize financially-settled forward contracts and financially-settled zero cost collars ("Collars") for the metals we produce with the objective of managing the exposure to changes in prices of those metals contained in our concentrate shipments between the time of sale and final settlement.
These include: federal income taxes; state/provincial income taxes; county/city and bureau property taxes and sales and use tax in the U.S.; goods and services tax in Canada; value added tax in Mexico; mining-specific taxes in Alaska, Idaho, Nevada, Quebec and the Yukon; and mining royalties in Alaska, Nevada and Canada.
These include: federal income taxes; state/provincial income taxes; county/city and bureau property taxes and sales and use tax in the U.S.; goods and services tax in Canada; mining-specific taxes in Alaska, Idaho, Nevada, Quebec and the Yukon; and mining royalties in Alaska, Nevada and Canada.
For more discussion, see the below risk factors, “ We may not realize all of the anticipated benefits from our acquisitions, including our 2022 acquisition of Alexco" and “ Issues we have faced at certain segments could require us to write-down the carrying value of associated long-lived assets. We could face similar issues at our other operations.
For more discussion, see the risk factors, “ We may not realize all of the anticipated benefits from our acquisitions, including our 2022 acquisition of Alexco" and “ Issues we have faced at certain segments could require us to write-down the carrying value of associated long-lived assets.
Risk Factors – We face substantial governmental regulation, including the Mine Safety and Health Act, various environmental laws and regulations and the 1872 Mining Law . 6 Environmental Our operations are subject to various environmental laws and regulations at the federal and state/provincial/territorial level.
Risk Factors – We face substantial governmental regulation, including in the United States the Mine Safety and Health Act, various environmental laws and regulations and the 1872 Mining Law . Environmental Our operations are subject to various environmental laws and regulations at the federal and state/provincial/territorial level.
Completing the Reclamation Plan is expected to take approximately 5 more years and is currently estimated to cost approximately CAD$348 million over that time, for which we expect ERDC to be reimbursed for all material costs incurred.
Completing the Reclamation Plan is expected to take approximately 4 more years and is currently estimated to cost approximately CAD$294 million over that time, for which we expect ERDC to be reimbursed for all material costs incurred.
We periodically engage in risk management activities to manage the exposure to changes in prices of silver, gold, lead and zinc contained in our concentrate shipments between the time of sale and final settlement and manage the exposure to changes in the prices of lead and zinc contained in our forecasted future shipments.
We periodically engage in risk management activities to manage the exposure to changes in prices of silver in general, as well as for silver, gold, lead and zinc contained in our concentrate shipments between the time of sale and final settlement and manage the exposure to changes in the prices of lead and zinc contained in our forecasted future shipments.
Risk Factors – Our accounting and other estimates may be imprecise ; Our ability to recognize the benefits of deferred tax assets related to net operating loss carryforwards and other items is dependent on future cash flows generating taxable income ; Our foreign activities are subject to additional inherent risks ; and We face substantial governmental regulation, including the Mine Safety and Health Act, various environmental laws and regulations and the 1872 Mining Law .
Risk Factors – Our accounting and other estimates may be imprecise ; Our ability to recognize the benefits of deferred tax assets related to net operating loss carryforwards and other items is dependent, among other things, on generating taxable income ; Our foreign activities are subject to additional inherent risks ; and We face substantial governmental regulation, including in the United States the Mine Safety and Health Act, various environmental laws and regulations and the 1872 Mining Law .
Our current business strategy is to focus our financial and human resources in the following areas: • operating our properties safely, in an environmentally responsible and cost-effective manner; • strengthen balance sheet to preserve our financial position in varying metals price and operational environments, improve capital allocation framework with a focus on Return On Invested Capital ("ROIC") and free cash flow generation; • improving and optimizing operations at all sites, which includes incurring costs for new technologies and equipment, and implementing standardized systems and processes; • optimize asset portfolio and identify growth opportunities; • expanding our proven and probable reserves, mineral resources and production capacity at our properties; • advancing the development and ramp up of the Keno Hill mine to profitability; • seeking opportunities to acquire and invest in mining and exploration properties and companies; • advancing permitting of the Libby Exploration project in Montana (50 miles from Lucky Friday); • enhance ESG performance and risk management systems; • build high-performing teams and strengthen organizational capabilities; and • maintaining and investing in exploration and pre-development projects in the vicinities of mining districts and projects we believe to be under-explored and under-invested: Greens Creek on Alaska's Admiralty Island located near Juneau; North Idaho's Silver Valley in the historic Coeur d'Alene Mining District; our projects located in two districts in Nevada; our projects in the Keno Hill mining district in the Yukon Territory, Canada; northwestern Montana; and the Republic Mining District in Washington state. 4 Metals Prices Our operating results are substantially dependent upon the prices of silver, gold, lead and zinc, which can fluctuate widely.
Our current business strategy is to focus our financial and human resources in the following areas: • operating our properties safely, in an environmentally responsible and cost-effective manner; • strengthening our balance sheet to preserve our financial position in varying metals price and operational environments, improve our capital allocation framework with a focus on Return On Invested Capital ("ROIC") and generate free cash flow; • improving and optimizing operations at all sites, which includes incurring costs for new technologies and equipment, and implementing standardized systems and processes; • optimizing our asset portfolio and identification of growth opportunities; • expanding our proven and probable reserves, mineral resources and production capacity at our properties; • advancing the development and ramp up of the Keno Hill mine to commercial production and sustained profitability; • seeking opportunities to acquire and invest in mining and exploration properties and companies; • advancing permitting of the Libby Exploration project in Montana (50 miles from Lucky Friday); • enhancing our ESG performance and risk management systems; • building high-performing teams and strengthening our organizational capabilities; and • maintaining and investing in exploration and pre-development projects in the vicinities of mining districts and projects we believe to be under-explored and under-invested: Greens Creek on Alaska's Admiralty Island located near Juneau; North Idaho's Silver Valley in the historic Coeur d'Alene Mining District; our projects located in two districts in Nevada; our projects in the Keno Hill mining district in the Yukon Territory, Canada; northwestern Montana; and the Republic Mining District in Washington state.
In 2023, realized average prices for all metals we sold, except zinc, were higher compared to 2022. We are unable to predict fluctuations in prices for metals and have limited control over the timing of our concentrate shipments which also impacts our realized prices.
In both 2025 and 2024, our realized average prices for all metals we sold, except lead, were higher compared to 2024 and 2023, respectively. We are unable to predict fluctuations in prices for metals and have limited control over the timing of our concentrate shipments which also impacts our realized prices.
Climate change is expected to create more extreme weather patterns that can increase frequency or severity of forest fires (such as our Casa Berardi unit experienced in summer 2023) and droughts and sudden heavy rainfall (such as our Greens Creek unit has periodically experienced). These latter two events require careful water management.
Climate change is expected to create more extreme weather patterns that can increase frequency or severity of forest fires (such as our Casa Berardi unit experienced in summer 2023) and droughts and sudden heavy rainfall or snowfall (such as our mines periodically experience). These precipitation events require careful water management.
Such write-downs may adversely affect our results of operations and financial condition. ” If the prices of the metals we produce decline for an extended period of time, if we fail to control production or capital costs, if regulatory issues increase costs or decrease production, or if we do not realize the mineable mineral reserves, resources or exploration targets at our mining properties, we may be required to recognize asset write-downs in the future.
We could face similar issues at our other operations. ” If the prices of the metals we produce decline for an extended period of time, if we fail to control production or capital costs, if regulatory issues increase costs or decrease production, or if we do not realize the mineable mineral reserves, resources or exploration targets at our mining properties, we may be required to recognize asset write-downs in the future.
Our Senior Vice President - Chief Administrative Officer is responsible for developing and executing our human capital strategy. The position is an executive-level position to reflect the priority we place on utilizing our human capital resources to meet our business strategy. Available Information Hecla Mining Company is a Delaware corporation.
Our head of Human Resources is responsible for developing and executing our human capital strategy. The position is an executive-level position to reflect the priority we place on utilizing our human capital resources to meet our business strategy. Available Information Hecla Mining Company is a Delaware corporation.
Risk Factors – Our operations may be adversely affected by risks and hazards associated with the mining industry that may not be fully covered by insurance . Human Capital As of December 31, 2024, we had approximately 1,830 employees, of which approximately 1,070 were employed in the United States, 750 in Canada, and 10 in Mexico.
Risk Factors – Our operations may be adversely affected by risks and hazards associated with the mining industry that may not be fully covered by insurance . Human Capital As of December 31, 2025, we had approximately 1,865 employees, of which approximately 1,096 were employed in the United States, 757 in Canada, and 12 in Mexico.
Mine closure and reclamation regulations impose substantial costs on our operations and include requirements that we provide financial assurance supporting those obligations. We currently have $213.6 million of financial assurances, primarily in the form of surety bonds, for reclamation company-wide. We anticipate approximately $7.3 million in expenditures in 2025 for environmental permit compliance and idle property management.
Mine closure and reclamation regulations impose substantial costs on our operations and include requirements that we provide financial assurance supporting those obligations. We currently have $227.5 million of financial assurances, primarily in the form of surety bonds, for anticipated company-wide reclamation. We anticipate approximately $13.4 million in expenditures in 2026 for environmental permit compliance and idle property management.
Future changes in tax law or changes in ownership structure could limit our ability to utilize our recorded tax assets. Our deferred tax assets as of December 31, 2024 were $252.7 million, net of $115.1 million in valuation allowances. See Note 7 of Notes to Consolidated Financial Statements for further discussion of our deferred tax assets.
Future changes in tax law or changes in ownership structure could limit our ability to utilize our recorded tax assets. Our deferred tax assets as of December 31, 2025 were $219.6 million, net of $111.4 million in valuation allowances. See Note 7 of Notes to Consolidated Financial Statements for further discussion of our deferred tax assets.
We have experienced volatility in our net income (loss) reported in the last three years, as shown in our Consolidated Statement of Operations and Comprehensive Income (Loss) , including net income of $35.8 million in 2024, net losses of $84.2 million and $37.3 million in 2023 and 2022, respectively.
We have experienced volatility in our net income (loss) reported in the last three years, as shown in our Consolidated Statement of Operations and Comprehensive Income (Loss) , including net income of $321.7 million and $35.8 million in 2025 and 2024, respectively, and a net loss of $84.2 million in 2023.
Company-wide, our AIFR was 1.86 for 2024. 8 Compensation and Benefits We are among the largest private-sector employers in the communities in which we operate providing a compensation and benefits package that attracts, motivates, and retains employees. In addition to competitive base wages, and incentive compensation, we offer retirement benefits, health insurance plans and paid time off.
Compensation and Benefits We are among the largest private-sector employers in the communities in which we operate providing a compensation and benefits package that attracts, motivates, and retains employees. In addition to competitive base wages, and incentive compensation, we offer retirement benefits, health insurance plans and paid time off.
We are organized and managed in four segments that encompass our operating mines and significant assets being Greens Creek, Lucky Friday, Keno Hill and Casa Berardi.
As of December 31, 2025, we were organized and managed in four segments that encompass our operating mines and significant assets being Greens Creek, Lucky Friday, Keno Hill and Casa Berardi.
The development and deployment of technological improvements or innovations will be required to support the transition to a low-carbon economy, which could result in write-offs and early retirement of existing assets, increased costs to adopt and deploy new practices and processing including planning and design for mines, development of alternative power sources, site level efficiencies and other capital investments.
Regulatory uncertainty may cause higher costs and lower economic returns than originally estimated for new development projects and operations, including closure reclamation and remediation obligations. 14 The development and deployment of technological improvements or innovations will be required to support the transition to a low-carbon economy, which could result in write-offs and early retirement of existing assets, increased costs to adopt and deploy new practices and processing including planning and design for mines, development of alternative power sources, site level efficiencies and other capital investments.
It is our practice to work closely with and consult with First Nations in areas in which our projects are located or which could be impacted by our activities.
Intergovernmental relations between First Nation authorities and federal, provincial and territorial authorities are evolving. It is our practice to work closely with and consult with First Nations in areas in which our projects are located or which could be impacted by our activities.
Our estimates of undiscounted cash flows for our long-lived assets also include an estimate of the market value of the resources and exploration targets beyond the current operating plans. We determined no impairments was required for a triggering event identified during 2024.
Our estimates of undiscounted cash flows for our long-lived assets also include an estimate of the market value of the resources and exploration targets beyond the current operating plans. We determined there were no impairment test triggering events identified during 2025.
As a result, actual operating and capital costs and returns from a development project may differ substantially from our estimates, and, as such, it may not be economically feasible to continue with a development project. 16 Our mineral reserve and resource estimates may be imprecise.
Many of these estimates are based on geological and other interpretive data, which may be imprecise. As a result, actual operating and capital costs and returns from a development project may differ substantially from our estimates, and, as such, it may not be economically feasible to continue with a development project. Our mineral reserve and resource estimates may be imprecise.
Hecla’s predecessor, Alexco, previously deposited CDN$10 million in a trust which funds ERDC’s maximum contribution toward implementing the Reclamation Plan, and agreed to a 1.5% net smelter royalty capped at CAD$4 million, of which approximately CAD$2.8 million has been paid or accrued for as of December 31, 2024.
Hecla’s predecessor, Alexco, previously deposited CDN$10 million in a trust which funds ERDC’s maximum contribution toward implementing the Reclamation Plan, and agreed to a 1.5% net smelter royalty capped at CAD$4.0 million, with the cap now reached as of December 31, 2025.
See Item 1A. Risk Factors – A substantial or extended decline in metals prices would have a material adverse effect on us for information on a number of the factors that can impact prices of the metals we produce. Our 2024 realized average prices for all metals we sold, except lead, were higher compared to 2023.
See Item 1A. Risk Factors – A substantial or extended decline in metals prices would have a material adverse effect on us for information on a number of the factors that can impact prices of the metals we produce.
A decline in metals prices for an extended period of time or our inability to convert resources or exploration targets to reserves could significantly reduce our estimates of the value of the resources or exploration targets at our properties and result in asset write-downs. 10 We have a substantial amount of debt that could impair our financial health and prevent us from fulfilling our obligations under our existing and future indebtedness.
A decline in metals prices for an extended period of time or our inability to convert resources or exploration targets to reserves could significantly reduce our estimates of the value of the resources or exploration targets at our properties and result in asset write-downs. 10 We have had losses that could reoccur in the future.
Our ability to market our metals production depends on the availability of smelters and/or refining facilities and our operations and financial results may be affected by disruptions or closures or the unavailability of smelters and/or refining facilities for other reasons. We sell our metals products to smelters and metal traders.
Our ability to market our metals production depends on the availability of smelters and/or refining facilities and our operations and financial results may be affected by disruptions or unavailability of such facilities. We sell our metals products to smelters and metal traders. Our doré bars are sent to refiners for further processing before being sold to metal traders.
See Note 4 of Notes to Consolidated Financial Statements for more information on the distribution of our sales and our significant customers. Shortages of critical parts and equipment may adversely affect our operations and development projects. We have been impacted, from time to time, by increased demand for critical resources such as input commodities, drilling equipment, trucks, shovels and tires.
Shortages of critical parts and equipment may adversely affect our operations and development projects. We have been impacted, from time to time, by increased demand for critical resources such as input commodities, drilling equipment, trucks, shovels and tires.
Risk Factors – Our foreign activities are subject to additional inherent risks , Our operations and properties in Canada expose us to additional political risks and Certain of our mines and exploration properties are located on land that is or may become subject to traditional territory, title claims and/or claims of cultural significance, and such claims and the attendant obligations of the federal government to those tribal communities and stakeholders may affect our current and future operations.
Risk Factors – Our foreign activities are subject to additional inherent risks , Our operations and properties in Canada expose us to additional political risks and Certain of our mines and exploration properties are located on land that is or may become subject competing title claims and/or claims of cultural significance.
As a result of high costs and other uncertainties, we may not be able to expand or replace our existing mineral reserves as they are depleted, which would adversely affect our business and financial position in the future.
During that time, it may become no longer feasible to produce those minerals for economic, regulatory, political or other reasons. As a result of high costs and other uncertainties, we may not be able to expand or replace our existing mineral reserves as they are depleted, which would adversely affect our business and financial position in the future.
Operation, Climate, Development, Exploration and Acquisition Risks Natural disasters, public health crises, political crises, and other catastrophic events or other events outside of our control may materially and adversely affect our business or financial results.
See Note 6 of Notes to Consolidated Financial Statements for more information on our pension plans. Operation, Climate, Development, Exploration and Acquisition Risks Natural disasters, public health crises, political crises, and other catastrophic events or other events outside of our control may materially and adversely affect our business or financial results.
Risk Factors – We face substantial governmental regulation, including the Mine Safety and Health Act, various environmental laws and regulations and the 1872 Mining Law ; Our operations are subject to complex, evolving and increasingly stringent environmental laws and regulations ; Compliance with environmental regulations, and litigation based on such regulations, involves significant costs and can threaten existing operations or constrain expansion opportunities; Mine closure and reclamation obligations impose substantial costs on our operations; Our environmental and asset retirement obligations may exceed the provisions we have made ; and New federal and state laws, regulations and initiatives could impact our operations .
Risk Factors – We face substantial governmental regulation, including in the United States the Mine Safety and Health Act, various environmental laws and regulations and the 1872 Mining Law ; Our operations are subject to complex, evolving and increasingly stringent environmental laws and regulations ; Compliance with environmental regulations, and litigation based on such regulations, involves significant costs and can threaten existing operations or constrain expansion opportunities; Mine closure and reclamation regulations impose substantial costs on our operations and include requirements that we provide financial assurance supporting those obligations.
Efforts to expand the finite lives of our mines may not be successful or could result in significant demands on our liquidity, which could hinder our growth. 17 One of the risks we face is that mines are depleting assets.
Efforts to expand the finite lives of our mines may not be successful or could result in significant demands on our liquidity, which could hinder our growth. One of the risks we face is that mines are depleting assets. Thus, in order to maintain or increase production we must continually replace depleted mineral reserves by locating and developing additional ore.
See Note 10 of Notes to Consolidated Financial Statements for more information on these forward contract programs. Our ability to recognize the benefits of deferred tax assets related to net operating loss carryforwards and other items is dependent on future cash flows generating taxable income.
The risks described above apply to the put options we purchased in December 2025. See Note 10 of Notes to Consolidated Financial Statements for more information on these risk management activities. Our ability to recognize the benefits of deferred tax assets related to net operating loss carryforwards and other items is dependent, among other things, on generating taxable income.
We cannot assure you that we will not experience net losses in the future. Our accounting and other estimates may be imprecise. Preparing consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts and related disclosure of assets, liabilities, revenue and expenses at the date of the consolidated financial statements and reporting periods.
Preparing consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts and related disclosure of assets, liabilities, revenue and expenses at the date of the consolidated financial statements and reporting periods.
A comprehensive discussion of our financial results for the years ended December 31, 2024, 2023 and 2022, individual operation performance and other significant items can be found in Item 7.
See Note 10 of Notes to Consolidated Financial Statements for more information on our base and precious metal forward contract programs. A comprehensive discussion of our financial results for the years ended December 31, 2025, 2024 and 2023, individual operation performance and other significant items can be found in Item 7.
Risk Factors – We are required to obtain governmental permits and other approvals in order to conduct mining operations and Legal challenges could prevent our projects in Montana from ever being developed .
We can only engage in exploration and mining operations in accordance with applicable permits. See Item 1A. Risk Factors – We are required to obtain governmental permits and other approvals in order to conduct mining operations and Legal challenges could prevent exploration projects from being developed or existing mines from future expansion .
A sustained period of low returns or losses on investments, or future benefit obligations that exceed our estimates, could require us to fund the pension plans to a greater extent than anticipated. See Note 6 of Notes to Consolidated Financial Statements for more information on our pension plans.
Returns, if any, on investments are subject to fluctuations based on investment choices and market conditions. A sustained period of low returns or losses on investments, or future benefit obligations that exceed our estimates, could require us to fund the pension plans 13 to a greater extent than anticipated.
If smelters or refiners are unavailable or unwilling to accept our products, or we are otherwise unable to sell our products to customers on acceptable commercial and legal terms, our operations and financial results could be adversely affected. See Note 4 of Notes to Consolidated Financial Statements for more information on the distribution of our sales and our significant customers.
Access to refiners and smelters on terms which are economic is critical to sell our products to buyers and generate revenues. If smelters or refiners are unavailable or unwilling to accept our products, or we are otherwise unable to sell our products to customers on acceptable commercial and legal terms, our operations and financial results could be adversely affected.
We also plan to invest approximately $3.5 million for on-going reclamation work at the former Troy Mine in Montana. The projected remaining cost for reclamation at the site is included in our accrued reclamation and closure costs liability. See Item 1A.
The projected remaining cost for reclamation at the site is included in our accrued reclamation and closure costs liability. See Item 1A.
Indigenous interests and rights as well as related consultation issues may impact our ability to pursue exploration, development and mining at certain of our properties in Nevada, Montana, Alaska, British Columbia, the Yukon and Quebec.
Certain of our mines and exploration properties are located on land that is or may become subject to, competing title claims and/or claims of cultural significance Indigenous interests and rights as well as related consultation issues may impact our ability to pursue exploration, development and mining at certain of our properties in Nevada, Montana, Alaska and Canada.
Thus, in order to maintain or increase production we must continually replace depleted mineral reserves by locating and developing additional ore. Our ability to expand or replace mineral reserves primarily depends on the success of our exploration programs. Mineral exploration, particularly for silver and gold, is highly speculative and expensive. It involves many risks and is often non-productive.
Our ability to expand or replace mineral reserves primarily depends on the success of our exploration programs. Mineral exploration, particularly for silver and gold, is highly speculative and expensive. It involves many risks and is often non-productive. Even if we believe we have found a valuable mineral deposit, it may be several years before production from that deposit is possible.
Our properties in Canada may be of particular interest or sensitivity to one or more interest groups, including aboriginal groups (which are generally referred to as “First Nations”). We have mineral projects in Quebec, the Yukon and British Columbia that are or may be in areas with a First Nations presence.
Our properties in Canada may be of particular interest or sensitivity to one or more interest groups, including aboriginal groups (which are generally referred to as “First Nations”). The nature and extent of First Nation rights and title remains the subject of active debate, claims and litigation in Canada.
Production ramp-up commenced in June 2023. • Casa Berardi located in the Abitibi region of northwestern Quebec, Canada - 100% owned and has been in production since late 2006.
Production ramp-up commenced in June 2023. • Casa Berardi located in the Abitibi region of northwestern Quebec, Canada - 100% owned and has been in production since late 2006. The contributions to our total metals sales by our significant operations in 2025 were 44.3% from Greens Creek, 23.0% from Casa Berardi, 22.2% from Lucky Friday and 10.5% from Keno Hill.
Our All Injury Frequency Rate (“AIFR”) is calculated as the number of incidents in the period multiplied by 200,000 hours and divided by the number of hours worked in the period.
Our Total Recordable Injury Frequency Rate (“TRIFR”) is calculated as the number of recordable injuries in the period multiplied by 200,000 8 hours and divided by the number of hours worked in the period. Company-wide, our TRIFR was 1.69 for 2025, a 13% reduction from 2024.
We derive a significant amount of revenue from a relatively small number of customers and occasionally enter into concentrate spot market sales with metal traders. For the fiscal year ended December 31, 2024, our three largest customers accounted for approximately 28%, 19% and 17%, respectively, of our total revenues.
See Note 4 of Notes to Consolidated Financial Statements for more information on the distribution of our sales and our significant customers. We derive a significant amount of revenue from a relatively small number of customers and occasionally enter into concentrate spot market sales with metal traders.
On February 7, 2025, the closing prices for silver, gold, lead, zinc and copper were $31.78 per ounce, $2,860.10 per ounce, $0.90 per pound, $1.28 per pound, and$ 4.16 per pound, respectively.
On February 12, 2026, the closing prices for silver, gold, lead, zinc and copper were $83.52 per ounce, $5,043.15 per ounce, $0.88 per pound, $1.54 per pound, and $5.80 per pound, respectively.
Given our operations produce unique qualities of concentrates, which a limited number of smelters can process effectively, we enter into long-term benchmark contracts for a majority of our total concentrates production. We expose lesser portions of our concentrates production to spot market sales to metal traders to benefit from favorable spot market sales terms from time to time.
For the fiscal year ended December 31, 2025, our three largest customers accounted for approximately 25%, 23% and 14%, respectively, of our total revenues. Given our operations produce unique qualities of concentrates, which a limited number of smelters can process effectively, we enter into long-term benchmark contracts for a majority of our total concentrates production.
In addition, at times we utilize a similar program to manage the exposure to changes in prices of zinc and lead contained in our forecasted future concentrate shipments. See Note 10 of Notes to Consolidated Financial Statements for more information on our base and precious metal forward contract programs.
In addition, at times we utilize financially-settled forward contracts to manage the exposure to changes in prices of zinc and lead contained in our forecasted future concentrate shipments, and Collars and put options to protect gross margin for silver and gold contained in forecasted concentrate or dore shipments.
Licenses, Permits and Claims/Concessions We are required to obtain various licenses and permits to operate our mines and conduct exploration and reclamation activities. See Item 1A. Risk Factors – We are required to obtain governmental permits and other approvals in order to conduct mining operations .
Risk Factors – Our environmental and asset retirement obligations may exceed the provisions we have made,” “Our accounting and other estimates may be imprecise and We are required to obtain governmental permits and other approvals in order to conduct mining operations.
Removed
Effective January 2024, we revised our internal reporting provided to our Chief Operating Decision Maker, who is our President and Chief Executive Officer to no longer include any financial performance information for our Nevada assets ("Nevada"), reflecting the current status of Nevada being on care and maintenance.
Added
On January 26, 2026, following a review of how Casa Berardi fits into our future strategy, we announced that we entered into a material definitive agreement to sell our wholly-owned subsidiary Hecla Quebec Inc., which owns the Casa Berardi operation to Orezone Gold Corporation (“Orezone”) for up to $593 million in total consideration including: (i) Cash consideration of $160 million upon closing; (ii) Equity consideration of approximately 65.7 million Orezone common shares to be issued at closing (valued at $112 million as of January 26, 2026); (iii) Deferred cash consideration of $30 million and $50 million to be paid at 18 months and 30 months, respectively, from the closing date; and 4 (iv) Contingent consideration of up to $241 million consisting of: a.
Removed
General corporate activities not associated with operating mines and their various exploration activities, idle properties and environmental remediation services in the Yukon, Canada, and the previously separately reported Nevada assets are presented as “Other". The presentation of the prior period information discussed in Item 7.
Added
Production-based royalty payment of up to $211 million ($80/ounce for the first 500,000 ounces, then $180/ounce thereafter from open pit operations) b. Permit receipt payment of $20 million upon grant of permits c.
Removed
Management’s Discussion and Analysis of Consolidated Financial Condition and Results of Operations, and Consolidated Financial Statements and Notes has been revised to reflect this change. The contributions to our total metals sales by our significant operations in 2024 were 46.4% from Greens Creek, 23.1% from Casa Berardi, 22.3% from Lucky Friday and 8.2% from Keno Hill.
Added
Gold price-linked payment of up to $10 million at gold price exceeding $4,200/ounce Under the terms of the transaction, Orezone is entitled to reduce future deferred cash payments or contingent royalty payments owed to us if the financial assurance required under Casa Berardi’s updated closure plan exceeds $150.0 million, by 50% of such excess amount.
Removed
We can only engage in exploration at our exploration sites such as the Hollister and Hatter Graben (Nevada) and Libby Exploration (Montana) projects if we are successful in obtaining necessary permits. Similarly, mining at our planned open pits at Casa Berardi requires permits we have not yet received.
Added
This excludes amounts arising from the mine's post-closing actions that increase the closure scope beyond what is currently contemplated. See Section1A.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

53 edited+13 added−20 removed44 unchanged
Biggest changeSimilarly, the silver produced at our other three units is not included as a by-product credit when calculating the gold metrics for Casa Berardi In thousands (except per ounce amounts) Year Ended December 31, 2024 Greens Creek Lucky Friday Keno Hill Corporate (2) Total Silver Total cost of sales $ 268,127 $ 144,485 $ 74,962 $ — $ 487,574 Depreciation, depletion and amortization (53,450 ) (41,049 ) (16,136 ) — (110,635 ) Treatment costs 26,266 14,456 — — 40,722 Change in product inventory (5,858 ) 2,090 — — (3,768 ) Reclamation and other costs (4,481 ) (2,806 ) — — (7,287 ) Exclusion of Lucky Friday cash costs (8) — (3,634 ) — — (3,634 ) Exclusion of Keno Hill cash costs (6) — — (58,826 ) — (58,826 ) Cash Cost, Before By-product Credits (1) 230,604 113,542 — — 344,146 Reclamation 3,141 891 — — 4,032 Sustaining capital 45,214 44,864 — 1,532 91,610 Exclusion of Lucky Friday sustaining costs (8) — (5,396 ) — — (5,396 ) General and administrative — — — 45,405 45,405 AISC, Before By-product Credits (1) 278,959 153,901 — 46,937 479,797 By-product credits: Zinc (89,088 ) (26,244 ) — — (115,332 ) Gold (115,189 ) — — — (115,189 ) Lead (26,374 ) (55,042 ) — — (81,416 ) Copper (409 ) — — — (409 ) Exclusion of Lucky Friday by-product credits (8) — 3,943 — — 3,943 Total By-product credits (231,060 ) (77,343 ) — — (308,403 ) Cash Cost, After By-product Credits $ (456 ) $ 36,199 $ — $ — $ 35,743 AISC, After By-product Credits $ 47,899 $ 76,558 $ — $ 46,937 $ 171,394 Ounces produced 8,481 4,891 13,372 Exclusion of Lucky Friday ounces produced (8) — (253 ) (253 ) Divided by silver ounces produced 8,481 4,638 13,119 Cash Cost, Before By-product Credits, per Silver Ounce $ 27.19 $ 24.48 $ 26.23 By-product credits per ounce (27.24 ) (16.68 ) (23.51 ) Cash Cost, After By-product Credits, per Silver Ounce $ (0.05 ) $ 7.80 $ 2.72 AISC, Before By-product Credits, per Silver Ounce $ 32.89 $ 33.18 $ 36.57 By-product credits per ounce (27.24 ) (16.68 ) (23.51 ) AISC, After By-product Credits, per Silver Ounce $ 5.65 $ 16.50 $ 13.06 79 In thousands (except per ounce amounts) Year Ended December 31, 2024 Casa Berardi Other (4) Total Gold and Other Total cost of sales $ 223,614 $ 20,527 $ 244,141 Depreciation, depletion and amortization (72,835 ) — (72,835 ) Treatment costs 153 — 153 Change in product inventory 3,269 — 3,269 Reclamation and other costs (823 ) — (823 ) Exclusion of Other costs — (20,527 ) (20,527 ) Cash Cost, Before By-product Credits (1) 153,378 — 153,378 Reclamation and other costs 823 — 823 Sustaining capital 18,963 — 18,963 AISC, Before By-product Credits (1) 173,164 — 173,164 By-product credits: Silver (683 ) — (683 ) Total By-product credits (683 ) — (683 ) Cash Cost, After By-product Credits $ 152,695 $ — $ 152,695 AISC, After By-product Credits $ 172,481 $ — $ 172,481 Divided by gold ounces produced 87 87 Cash Cost, Before By-product Credits, per Gold Ounce $ 1,770 $ — $ 1,770 By-product credits per ounce (8 ) — (8 ) Cash Cost, After By-product Credits, per Gold Ounce $ 1,762 $ — $ 1,762 AISC, Before By-product Credits, per Gold Ounce $ 1,998 $ — $ 1,998 By-product credits per ounce (8 ) — (8 ) AISC, After By-product Credits, per Gold Ounce $ 1,990 $ — $ 1,990 80 In thousands (except per ounce amounts) Year Ended December 31, 2024 Total Silver Total Gold and Other Total Total cost of sales $ 487,574 $ 244,141 $ 731,715 Depreciation, depletion and amortization (110,635 ) (72,835 ) (183,470 ) Treatment costs 40,722 153 40,875 Change in product inventory (3,768 ) 3,269 (499 ) Reclamation and other costs (7,287 ) (823 ) (8,110 ) Exclusion of Lucky Friday cash costs (8) (3,634 ) — (3,634 ) Exclusion of Keno Hill cash costs (6) (58,826 ) — (58,826 ) Exclusion of Nevada and Other costs — (20,527 ) (20,527 ) Cash Cost, Before By-product Credits (1) 344,146 153,378 497,524 Reclamation and other costs 4,032 823 4,855 Sustaining capital 91,610 18,963 110,573 Exclusion of Lucky Friday sustaining costs (8) (5,396 ) — (5,396 ) General and administrative 45,405 — 45,405 AISC, Before By-product Credits (1) 479,797 173,164 652,961 By-product credits: Zinc (115,332 ) — (115,332 ) Gold (115,189 ) — (115,189 ) Lead (81,416 ) — (81,416 ) Copper (409 ) — (409 ) Silver — (683 ) (683 ) Exclusion of Lucky Friday by-product credits (8) 3,943 — 3,943 Total By-product credits (308,403 ) (683 ) (309,086 ) Cash Cost, After By-product Credits $ 35,743 $ 152,695 $ 188,438 AISC, After By-product Credits $ 171,394 $ 172,481 $ 343,875 Ounces produced $ 13,372 $ 87 Exclusion of Lucky Friday ounces produced (8) (253 ) — Divided by ounces produced 13,119 87 Cash Cost, Before By-product Credits, per Ounce $ 26.23 $ 1,770 By-product credits per ounce (23.51 ) (8 ) Cash Cost, After By-product Credits, per Ounce $ 2.72 $ 1,762 AISC, Before By-product Credits, per Ounce $ 36.57 $ 1,998 By-product credits per ounce (23.51 ) (8 ) AISC, After By-product Credits, per Ounce $ 13.06 $ 1,990 81 In thousands (except per ounce amounts) Year Ended December 31, 2023 Greens Creek Lucky Friday Keno Hill Corporate (2) Total Silver Total cost of sales $ 259,895 $ 84,185 $ 35,518 $ — $ 379,598 Depreciation, depletion and amortization (53,995 ) (24,325 ) (4,277 ) — (82,597 ) Treatment costs 40,987 10,981 1,070 — 53,038 Change in product inventory (4,266 ) (5,164 ) — — (9,430 ) Reclamation and other costs (5) (748 ) (826 ) — — (1,574 ) Exclusion of Lucky Friday cash costs (8) — (851 ) — — (851 ) Exclusion of Keno Hill cash costs — — (32,311 ) — (32,311 ) Cash Cost, Before By-product Credits (1) 241,873 64,000 — — 305,873 Reclamation and other costs 2,889 671 — — 3,560 Sustaining capital 41,935 39,019 — 928 81,882 Exclusion of Lucky Friday sustaining costs (8) — (19,702 ) — — (19,702 ) General and administrative (5) — — — 42,722 42,722 AISC, Before By-product Credits (1) 286,697 83,988 — 43,650 414,335 By-product credits: Zinc (83,454 ) (14,507 ) — — (97,961 ) Gold (104,507 ) — — — (104,507 ) Lead (29,284 ) (34,620 ) — — (63,904 ) Exclusion of Lucky Friday by-product credits (8) — 1,566 — — 1,566 Total By-product credits (217,245 ) (47,561 ) — (264,806 ) Cash Cost, After By-product Credits $ 24,628 $ 16,439 $ — $ 41,067 AISC, After By-product Credits $ 69,452 $ 36,427 $ 43,650 $ 149,529 Ounces produced 9,732 3,086 12,818 Exclusion of Lucky Friday ounces produced (8) — (103 ) (103 ) Divided by silver ounces produced 9,732 2,983 12,715 Cash Cost, Before By-product Credits, per Silver Ounce $ 24.85 $ 21.45 $ 24.06 By-product credits per ounce (22.32 ) (15.94 ) (20.83 ) Cash Cost, After By-product Credits, per Silver Ounce $ 2.53 $ 5.51 $ 3.23 AISC, Before By-product Credits, per Silver Ounce $ 29.46 $ 28.15 $ 32.59 By-product credits per ounce (22.32 ) (15.94 ) (20.83 ) AISC, After By-product Credits, per Silver Ounce $ 7.14 $ 12.21 $ 11.76 82 In thousands (except per ounce amounts) Year Ended December 31, 2023 Casa Berardi Other (4) Total Gold and Other Total cost of sales $ 221,341 $ 6,339 $ 227,680 Depreciation, depletion and amortization (66,037 ) (140 ) (66,177 ) Treatment costs 1,109 — 1,109 Change in product inventory (2,913 ) — (2,913 ) Reclamation and other costs (5) (871 ) — (871 ) Exclusion of Casa Berardi cash costs (3) (2,851 ) — (2,851 ) Exclusion of Nevada and Other costs — (6,199 ) (6,199 ) Cash Cost, Before By-product Credits (1) 149,778 — 149,778 Reclamation and other costs 871 — 871 Sustaining capital 34,971 — 34,971 AISC, Before By-product Credits (1) 185,620 — 185,620 By-product credits: Silver (522 ) — (522 ) Total By-product credits (522 ) — (522 ) Cash Cost, After By-product Credits $ 149,256 $ — $ 149,256 AISC, After By-product Credits $ 185,098 $ — $ 185,098 Divided by gold ounces produced 90 — 90 Cash Cost, Before By-product Credits, per Gold Ounce $ 1,658 — $ 1,658 By-product credits per ounce (6 ) — (6 ) Cash Cost, After By-product Credits, per Gold Ounce $ 1,652 $ — $ 1,652 AISC, Before By-product Credits, per Gold Ounce $ 2,054 — $ 2,054 By-product credits per ounce (6 ) — (6 ) AISC, After By-product Credits, per Gold Ounce $ 2,048 $ — $ 2,048 83 In thousands (except per ounce amounts) Year Ended December 31, 2023 Total Silver Total Gold and Other Total Total cost of sales $ 379,598 $ 227,680 $ 607,278 Depreciation, depletion and amortization (82,597 ) (66,177 ) (148,774 ) Treatment costs 53,038 1,109 54,147 Change in product inventory (9,430 ) (2,913 ) (12,343 ) Reclamation and other costs (1,574 ) (871 ) (2,445 ) Exclusion of Lucky Friday cash costs (8) (851 ) — (851 ) Exclusion of Keno Hill cash costs (32,311 ) — (32,311 ) Exclusion of Casa Berardi cash costs (3) — (2,851 ) (2,851 ) Exclusion of Nevada and Other costs — (6,199 ) (6,199 ) Cash Cost, Before By-product Credits (1) 305,873 149,778 455,651 Reclamation and other costs 3,560 871 4,431 Sustaining capital 81,882 34,971 116,853 Exclusion of Lucky Friday sustaining costs (8) (19,702 ) — (19,702 ) General and administrative 42,722 — 42,722 AISC, Before By-product Credits (1) 414,335 185,620 599,955 By-product credits: Zinc (97,961 ) — (97,961 ) Gold (104,507 ) — (104,507 ) Lead (63,904 ) — (63,904 ) Silver — (522 ) (522 ) Exclusion of Lucky Friday by-product credits (8) 1,566 — 1,566 Total By-product credits (264,806 ) (522 ) (265,328 ) Cash Cost, After By-product Credits $ 41,067 $ 149,256 $ 190,323 AISC, After By-product Credits $ 149,529 $ 185,098 $ 334,627 Divided by ounces produced 12,818 90 Exclusion of Lucky Friday ounces produced (8) (103 ) — Divided by silver ounces produced 12,715 90 Cash Cost, Before By-product Credits, per Ounce $ 24.06 $ 1,658 By-product credits per ounce (20.83 ) (6 ) Cash Cost, After By-product Credits, per Ounce $ 3.23 $ 1,652 AISC, Before By-product Credits, per Ounce $ 32.59 $ 2,054 By-product credits per ounce (20.83 ) (6 ) AISC, After By-product Credits, per Ounce $ 11.76 $ 2,048 84 In thousands (except per ounce amounts) Year Ended December 31, 2022 Greens Creek Lucky Friday Corporate (2) Total Silver Total cost of sales $ 232,718 $ 116,598 $ — $ 349,316 Depreciation, depletion and amortization (48,911 ) (33,704 ) — (82,615 ) Treatment costs 37,836 18,605 — 56,441 Change in product inventory 5,885 2,049 — 7,934 Reclamation and other costs (1,489 ) (1,034 ) — (2,523 ) Cash Cost, Before By-product Credits (1) 226,039 102,514 — 328,553 Reclamation and other costs 2,821 1,128 — 3,949 Sustaining capital 40,705 33,306 334 74,345 General and administrative (5) — — 43,384 43,384 AISC, Before By-product Credits (1) 269,565 136,948 43,718 450,231 By-product credits: Zinc (113,835 ) (27,607 ) — (141,442 ) Gold (75,596 ) — — (75,596 ) Lead (29,800 ) (52,568 ) — (82,368 ) Total By-product credits (219,231 ) (80,175 ) — (299,406 ) Cash Cost, After By-product Credits $ 6,808 $ 22,339 $ — $ 29,147 AISC, After By-product Credits $ 50,334 $ 56,773 $ 43,718 $ 150,825 Divided by silver ounces produced 9,742 4,413 14,155 Cash Cost, Before By-product Credits, per Silver Ounce $ 23.20 $ 23.23 $ 23.21 By-product credits per ounce (22.50 ) $ (18.17 ) (21.15 ) Cash Cost, After By-product Credits, per Silver Ounce $ 0.70 $ 5.06 $ 2.06 AISC, Before By-product Credits, per Silver Ounce $ 27.67 $ 31.03 $ 31.81 By-product credits per ounce (22.50 ) $ (18.17 ) (21.15 ) AISC, After By-product Credits, per Silver Ounce $ 5.17 $ 12.86 $ 10.66 In thousands (except per ounce amounts) Year Ended December 31, 2022 Casa Berardi Other (4) Total Gold and Other Total cost of sales $ 248,898 $ 4,535 $ 253,433 Depreciation, depletion and amortization (60,962 ) (361 ) (61,323 ) Treatment costs 1,866 — 1,866 Change in product inventory 186 — 186 Reclamation and other costs (819 ) — (819 ) Exclusion of Nevada and Other costs — (4,174 ) (4,174 ) Cash Cost, Before By-product Credits (1) 189,169 — 189,169 Reclamation and other costs 819 — 819 Sustaining capital 36,883 — 36,883 AISC, Before By-product Credits (1) 226,871 — 226,871 By-product credits: Silver (610 ) — (610 ) Total By-product credits (610 ) — (610 ) Cash Cost, After By-product Credits $ 188,559 $ — $ 188,559 AISC, After By-product Credits $ 226,261 $ — $ 226,261 Divided by gold ounces produced 128 — 128 Cash Cost, Before By-product Credits, per Gold Ounce $ 1,483 $ — $ 1,483 By-product credits per ounce (5 ) — (5 ) Cash Cost, After By-product Credits, per Gold Ounce $ 1,478 $ — $ 1,478 AISC, Before By-product Credits, per Gold Ounce $ 1,778 $ — $ 1,778 By-product credits per ounce (5 ) — (5 ) AISC, After By-product Credits, per Gold Ounce $ 1,773 $ — $ 1,773 85 In thousands (except per ounce amounts) Year Ended December 31, 2022 Total Silver Total Gold Total Total cost of sales $ 349,316 $ 253,433 $ 602,749 Depreciation, depletion and amortization (82,615 ) (61,323 ) (143,938 ) Treatment costs 56,441 1,866 58,307 Change in product inventory 7,934 186 8,120 Exclusion of Nevada and Other Costs — (4,174 ) (4,174 ) Reclamation and other costs (2,523 ) (819 ) (3,342 ) Cash Cost, Before By-product Credits (1) 328,553 189,169 517,722 Reclamation and other costs 3,949 819 4,768 Sustaining capital 74,345 36,883 111,228 General and administrative 43,384 — 43,384 AISC, Before By-product Credits (1) 450,231 226,871 677,102 By-product credits: Zinc (141,442 ) — (141,442 ) Gold (75,596 ) — (75,596 ) Lead (82,368 ) — (82,368 ) Silver — (610 ) (610 ) Total By-product credits (299,406 ) (610 ) (300,016 ) Cash Cost, After By-product Credits $ 29,147 $ 188,559 $ 217,706 AISC, After By-product Credits $ 150,825 $ 226,261 $ 377,086 Divided by ounces produced 14,155 128 Cash Cost, Before By-product Credits, per Ounce $ 23.21 $ 1,483 By-product credits per ounce (21.15 ) (5 ) Cash Cost, After By-product Credits, per Ounce $ 2.06 $ 1,478 AISC, Before By-product Credits, per Ounce $ 31.81 $ 1,778 By-product credits per ounce (21.15 ) (5 ) AISC, After By-product Credits, per Ounce $ 10.66 $ 1,773 (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.
Biggest changeSimilarly, the silver produced at our other three units is not included as a by-product credit when calculating the gold metrics for Casa Berardi In thousands (except per ounce amounts) Year Ended December 31, 2025 Greens Creek Lucky Friday Keno Hill Corporate (2) Total Silver Total cost of sales $ 290,180 $ 173,690 $ 91,652 $ — $ 555,522 Depreciation, depletion and amortization (55,959 ) (51,055 ) (19,769 ) — (126,783 ) Treatment costs 948 9,734 — — 10,682 Change in product inventory (1,258 ) (6 ) — — (1,264 ) Reclamation and other costs (1,502 ) (857 ) — — (2,359 ) Exclusion of Keno Hill cash costs (5) — — (71,883 ) — (71,883 ) Cash Cost, Before By-product Credits (1) 232,409 131,506 — — 363,915 Reclamation 3,029 780 — — 3,809 Sustaining capital 46,362 69,316 — 5,165 120,843 General and administrative — — — 57,626 57,626 AISC, Before By-product Credits (1) 281,800 201,602 — 62,791 546,193 By-product credits: Zinc (93,495 ) (28,939 ) — — (122,434 ) Gold (180,497 ) — — — (180,497 ) Lead (24,963 ) (57,036 ) — — (81,999 ) Copper (3,465 ) — — — (3,465 ) Total By-product credits (302,420 ) (85,975 ) — — (388,395 ) Cash Cost, After By-product Credits $ (70,011 ) $ 45,531 $ — $ — $ (24,480 ) AISC, After By-product Credits $ (20,620 ) $ 115,627 $ — $ 62,791 $ 157,798 Divided by silver ounces produced 8,725 5,261 13,986 Cash Cost, Before By-product Credits, per Silver Ounce $ 26.64 $ 25.00 $ 26.02 By-product credits per ounce (34.66 ) (16.34 ) (27.77 ) Cash Cost, After By-product Credits, per Silver Ounce $ (8.02 ) $ 8.66 $ (1.75 ) AISC, Before By-product Credits, per Silver Ounce $ 32.30 $ 38.32 $ 39.05 By-product credits per ounce (34.66 ) (16.34 ) (27.77 ) AISC, After By-product Credits, per Silver Ounce $ (2.36 ) $ 21.98 $ 11.28 80 In thousands (except per ounce amounts) Year Ended December 31, 2025 Casa Berardi Other (4) Total Gold and Other Total cost of sales $ 206,720 $ 38,574 $ 245,294 Depreciation, depletion and amortization (33,234 ) — (33,234 ) Treatment costs 169 — 169 Change in product inventory (2,774 ) — (2,774 ) Reclamation and other costs (1,283 ) — (1,283 ) Exclusion of Other costs — (38,574 ) (38,574 ) Cash Cost, Before By-product Credits (1) 169,598 — 169,598 Reclamation and other costs 1,283 — 1,283 Sustaining capital 14,995 — 14,995 AISC, Before By-product Credits (1) 185,876 — 185,876 By-product credits: Silver (888 ) — (888 ) Total By-product credits (888 ) — (888 ) Cash Cost, After By-product Credits $ 168,710 $ — $ 168,710 AISC, After By-product Credits $ 184,988 $ — $ 184,988 Divided by gold ounces produced 91 91 Cash Cost, Before By-product Credits, per Gold Ounce $ 1,861 $ — $ 1,861 By-product credits per ounce (10 ) — (10 ) Cash Cost, After By-product Credits, per Gold Ounce $ 1,851 $ — $ 1,851 AISC, Before By-product Credits, per Gold Ounce $ 2,039 $ 2,039 By-product credits per ounce (10 ) — (10 ) AISC, After By-product Credits, per Gold Ounce $ 2,029 $ — $ 2,029 81 In thousands (except per ounce amounts) Year Ended December 31, 2025 Total Silver Total Gold and Other Total Total cost of sales $ 555,522 $ 245,294 $ 800,816 Depreciation, depletion and amortization (126,783 ) (33,234 ) (160,017 ) Treatment costs 10,682 169 10,851 Change in product inventory (1,264 ) (2,774 ) (4,038 ) Reclamation and other costs (2,359 ) (1,283 ) (3,642 ) Exclusion of Keno Hill cash costs (5) (71,883 ) — (71,883 ) Exclusion of Other costs — (38,574 ) (38,574 ) Cash Cost, Before By-product Credits (1) 363,915 169,598 533,513 Reclamation and other costs 3,809 1,283 5,092 Sustaining capital 120,843 14,995 135,838 General and administrative 57,626 — 57,626 AISC, Before By-product Credits (1) 546,193 185,876 732,069 By-product credits: Zinc (122,434 ) — (122,434 ) Gold (180,497 ) — (180,497 ) Lead (81,999 ) — (81,999 ) Copper (3,465 ) — (3,465 ) Silver — (888 ) (888 ) Total By-product credits (388,395 ) (888 ) (389,283 ) Cash Cost, After By-product Credits $ (24,480 ) $ 168,710 $ 144,230 AISC, After By-product Credits $ 157,798 $ 184,988 $ 342,786 Divided by ounces produced 13,986 91 Cash Cost, Before By-product Credits, per Ounce $ 26.02 $ 1,861 By-product credits per ounce (27.77 ) (10 ) Cash Cost, After By-product Credits, per Ounce $ (1.75 ) $ 1,851 AISC, Before By-product Credits, per Ounce $ 39.05 $ 2,039 By-product credits per ounce (27.77 ) (10 ) AISC, After By-product Credits, per Ounce $ 11.28 $ 2,029 82 In thousands (except per ounce amounts) Year Ended December 31, 2024 Greens Creek Lucky Friday Keno Hill Corporate (2) Total Silver Total cost of sales $ 268,127 $ 144,485 $ 74,962 $ — $ 487,574 Depreciation, depletion and amortization (53,450 ) (41,049 ) (16,136 ) — (110,635 ) Treatment costs 26,266 14,456 — — 40,722 Change in product inventory (5,858 ) 2,090 — — (3,768 ) Reclamation and other costs (4,481 ) (2,806 ) — — (7,287 ) Exclusion of Lucky Friday cash costs (7) — (3,634 ) — — (3,634 ) Exclusion of Keno Hill cash costs (5) — — (58,826 ) — (58,826 ) Cash Cost, Before By-product Credits (1) 230,604 113,542 — — 344,146 Reclamation 3,141 891 — — 4,032 Sustaining capital 45,214 44,864 — 1,532 91,610 Exclusion of Lucky Friday sustaining costs (7) — (5,396 ) — — (5,396 ) General and administrative — — — 45,405 45,405 AISC, Before By-product Credits (1) 278,959 153,901 — 46,937 479,797 By-product credits: Zinc (89,088 ) (26,244 ) — — (115,332 ) Gold (115,189 ) — — — (115,189 ) Lead (26,374 ) (55,042 ) — — (81,416 ) Copper (409 ) — — — (409 ) Exclusion of Lucky Friday by-product credits (7) — 3,943 — — 3,943 Total By-product credits (231,060 ) (77,343 ) — — (308,403 ) Cash Cost, After By-product Credits $ (456 ) $ 36,199 $ — $ — $ 35,743 AISC, After By-product Credits $ 47,899 $ 76,558 $ — $ 46,937 $ 171,394 Ounces produced 8,481 4,891 13,372 Exclusion of Lucky Friday ounces produced (7) — (253 ) (253 ) Divided by silver ounces produced 8,481 4,638 13,119 Cash Cost, Before By-product Credits, per Silver Ounce $ 27.19 $ 24.48 $ 26.23 By-product credits per ounce (27.24 ) (16.68 ) (23.51 ) Cash Cost, After By-product Credits, per Silver Ounce $ (0.05 ) $ 7.80 $ 2.72 AISC, Before By-product Credits, per Silver Ounce $ 32.89 $ 33.18 $ 36.57 By-product credits per ounce (27.24 ) (16.68 ) (23.51 ) AISC, After By-product Credits, per Silver Ounce $ 5.65 $ 16.50 $ 13.06 83 In thousands (except per ounce amounts) Year Ended December 31, 2024 Casa Berardi Other (4) Total Gold and Other Total cost of sales $ 223,614 $ 20,527 $ 244,141 Depreciation, depletion and amortization (72,835 ) — (72,835 ) Treatment costs 153 — 153 Change in product inventory 3,269 — 3,269 Reclamation and other costs (823 ) — (823 ) Exclusion of Other costs — (20,527 ) (20,527 ) Cash Cost, Before By-product Credits (1) 153,378 — 153,378 Reclamation and other costs 823 — 823 Sustaining capital 18,963 — 18,963 AISC, Before By-product Credits (1) 173,164 — 173,164 By-product credits: Silver (683 ) — (683 ) Total By-product credits (683 ) — (683 ) Cash Cost, After By-product Credits $ 152,695 $ — $ 152,695 AISC, After By-product Credits $ 172,481 $ — $ 172,481 Divided by gold ounces produced 87 87 Cash Cost, Before By-product Credits, per Gold Ounce $ 1,770 $ — $ 1,770 By-product credits per ounce (8 ) — (8 ) Cash Cost, After By-product Credits, per Gold Ounce $ 1,762 $ — $ 1,762 AISC, Before By-product Credits, per Gold Ounce $ 1,998 $ — $ 1,998 By-product credits per ounce (8 ) — (8 ) AISC, After By-product Credits, per Gold Ounce $ 1,990 $ — $ 1,990 84 In thousands (except per ounce amounts) Year Ended December 31, 2024 Total Silver Total Gold and Other Total Total cost of sales $ 487,574 $ 244,141 $ 731,715 Depreciation, depletion and amortization (110,635 ) (72,835 ) (183,470 ) Treatment costs 40,722 153 40,875 Change in product inventory (3,768 ) 3,269 (499 ) Reclamation and other costs (7,287 ) (823 ) (8,110 ) Exclusion of Lucky Friday cash costs (7) (3,634 ) — (3,634 ) Exclusion of Keno Hill cash costs (5) (58,826 ) — (58,826 ) Exclusion of Other costs — (20,527 ) (20,527 ) Cash Cost, Before By-product Credits (1) 344,146 153,378 497,524 Reclamation and other costs 4,032 823 4,855 Sustaining capital 91,610 18,963 110,573 Exclusion of Lucky Friday sustaining costs (7) (5,396 ) — (5,396 ) General and administrative 45,405 — 45,405 AISC, Before By-product Credits (1) 479,797 173,164 652,961 By-product credits: Zinc (115,332 ) — (115,332 ) Gold (115,189 ) — (115,189 ) Lead (81,416 ) — (81,416 ) Copper (409 ) — (409 ) Silver — (683 ) (683 ) Exclusion of Lucky Friday by-product credits (7) 3,943 — 3,943 Total By-product credits (308,403 ) (683 ) (309,086 ) Cash Cost, After By-product Credits $ 35,743 $ 152,695 $ 188,438 AISC, After By-product Credits $ 171,394 $ 172,481 $ 343,875 Divided by ounces produced 13,372 87 Exclusion of Lucky Friday ounces produced (7) (253 ) — Divided by silver ounces produced 13,119 87 Cash Cost, Before By-product Credits, per Ounce $ 26.23 $ 1,770 By-product credits per ounce (23.51 ) (8 ) Cash Cost, After By-product Credits, per Ounce $ 2.72 $ 1,762 AISC, Before By-product Credits, per Ounce $ 36.57 $ 1,998 By-product credits per ounce (23.51 ) (8 ) AISC, After By-product Credits, per Ounce $ 13.06 $ 1,990 85 In thousands (except per ounce amounts) Year Ended December 31, 2023 Greens Creek Lucky Friday Keno Hill Corporate (2) Total Silver Total cost of sales $ 259,895 $ 84,185 $ 35,518 $ — $ 379,598 Depreciation, depletion and amortization (53,995 ) (24,325 ) (4,277 ) — (82,597 ) Treatment costs 40,987 10,981 1,070 — 53,038 Change in product inventory (4,266 ) (5,164 ) — — (9,430 ) Reclamation and other costs (5) (748 ) (826 ) — — (1,574 ) Exclusion of Lucky Friday cash costs (7) — (851 ) — — (851 ) Exclusion of Keno Hill cash costs (5) — — (32,311 ) — (32,311 ) Cash Cost, Before By-product Credits (1) 241,873 64,000 — — 305,873 Reclamation and other costs 2,889 671 — — 3,560 Sustaining capital 41,935 39,019 — 928 81,882 Exclusion of Lucky Friday sustaining costs (7) — (19,702 ) — — (19,702 ) General and administrative (5) — — — 42,722 42,722 AISC, Before By-product Credits (1) 286,697 83,988 — 43,650 414,335 By-product credits: Zinc (83,454 ) (14,507 ) — — (97,961 ) Gold (104,507 ) — — — (104,507 ) Lead (29,284 ) (34,620 ) — — (63,904 ) Exclusion of Lucky Friday by-product credits (7) — 1,566 — — 1,566 Total By-product credits (217,245 ) (47,561 ) — (264,806 ) Cash Cost, After By-product Credits $ 24,628 $ 16,439 $ — $ 41,067 AISC, After By-product Credits $ 69,452 $ 36,427 $ 43,650 $ 149,529 Ounces produced 9,732 3,086 12,818 Exclusion of Lucky Friday ounces produced (7) — (103 ) (103 ) Divided by silver ounces produced 9,732 2,983 12,715 Cash Cost, Before By-product Credits, per Silver Ounce $ 24.85 $ 21.45 $ 24.06 By-product credits per ounce (22.32 ) (15.94 ) (20.83 ) Cash Cost, After By-product Credits, per Silver Ounce $ 2.53 $ 5.51 $ 3.23 AISC, Before By-product Credits, per Silver Ounce $ 29.46 $ 28.15 $ 32.59 By-product credits per ounce (22.32 ) (15.94 ) (20.83 ) AISC, After By-product Credits, per Silver Ounce $ 7.14 $ 12.21 $ 11.76 86 In thousands (except per ounce amounts) Year Ended December 31, 2023 Casa Berardi Other (4) Total Gold and Other Total cost of sales $ 221,341 $ 6,339 $ 227,680 Depreciation, depletion and amortization (66,037 ) (140 ) (66,177 ) Treatment costs 1,109 — 1,109 Change in product inventory (2,913 ) — (2,913 ) Reclamation and other costs (5) (871 ) — (871 ) Exclusion of Casa Berardi cash costs (3) (2,851 ) — (2,851 ) Exclusion of Other costs — (6,199 ) (6,199 ) Cash Cost, Before By-product Credits (1) 149,778 — 149,778 Reclamation and other costs 871 — 871 Sustaining capital 34,971 — 34,971 AISC, Before By-product Credits (1) 185,620 — 185,620 By-product credits: Silver (522 ) — (522 ) Total By-product credits (522 ) — (522 ) Cash Cost, After By-product Credits $ 149,256 $ — $ 149,256 AISC, After By-product Credits $ 185,098 $ — $ 185,098 Divided by gold ounces produced 90 — 90 Cash Cost, Before By-product Credits, per Gold Ounce $ 1,658 — $ 1,658 By-product credits per ounce (6 ) — (6 ) Cash Cost, After By-product Credits, per Gold Ounce $ 1,652 $ — $ 1,652 AISC, Before By-product Credits, per Gold Ounce $ 2,054 — $ 2,054 By-product credits per ounce (6 ) — (6 ) AISC, After By-product Credits, per Gold Ounce $ 2,048 $ — $ 2,048 87 In thousands (except per ounce amounts) Year Ended December 31, 2023 Total Silver Total Gold Total Total cost of sales $ 379,598 $ 227,680 $ 607,278 Depreciation, depletion and amortization (82,597 ) (66,177 ) (148,774 ) Treatment costs 53,038 1,109 54,147 Change in product inventory (9,430 ) (2,913 ) (12,343 ) Reclamation and other costs (1,574 ) (871 ) (2,445 ) Exclusion of Casa Berardi cash costs (3) — (2,851 ) (2,851 ) Exclusion of Other costs — (6,199 ) (6,199 ) Exclusion of Lucky Friday cash costs (7) (851 ) — (851 ) Exclusion of Keno Hill cash costs (5) (32,311 ) — (32,311 ) Cash Cost, Before By-product Credits (1) 305,873 149,778 455,651 Reclamation and other costs 3,560 871 4,431 Sustaining capital 81,882 34,971 116,853 Exclusion of Lucky Friday sustaining costs (7) (19,702 ) — (19,702 ) General and administrative 42,722 — 42,722 AISC, Before By-product Credits (1) 414,335 185,620 599,955 By-product credits: Zinc (97,961 ) — (97,961 ) Gold (104,507 ) — (104,507 ) Lead (63,904 ) — (63,904 ) Silver — (522 ) (522 ) Exclusion of Lucky Friday by-product credits (7) 1,566 — 1,566 Total By-product credits (264,806 ) (522 ) (265,328 ) Cash Cost, After By-product Credits $ 41,067 $ 149,256 $ 190,323 AISC, After By-product Credits $ 149,529 $ 185,098 $ 334,627 Divided by ounces produced 12,818 90 Exclusion of Lucky Friday ounces produced (7) (103 ) — Divided by silver ounces produced 12,715 90 Cash Cost, Before By-product Credits, per Ounce $ 24.06 $ 1,658 By-product credits per ounce (20.83 ) (6 ) Cash Cost, After By-product Credits, per Ounce $ 3.23 $ 1,652 AISC, Before By-product Credits, per Ounce $ 32.59 $ 2,054 By-product credits per ounce (20.83 ) (6 ) AISC, After By-product Credits, per Ounce $ 11.76 $ 2,048 (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.
Higher volumes sold resulted from the current year containing a full year of production from Keno Hill and Lucky Friday (which had suspended operations for 5 months of the year due to the 2023 fire). Negative working capital and other operating asset and liability changes contributed to a cash decrease of $29.5 million in 2024 compared to 2023.
Higher volumes sold resulted from the current year containing a full year of production from Keno Hill and Lucky Friday (which had suspended operations for 5 months of the year due to the 2023 fire). Negative working capital and other operating asset and liability changes contributed to a decrease of working capital of $29.5 million in 2024 compared to 2023.
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.
There can be no assurance, however, that these non-GAAP measures as we report them are the same as those reported by other mining companies. 78 Cash Cost, After By-product Credits, per Ounce is an important operating statistic that we utilize to measure each mine's operating performance.
Using applicable accounting guidance and our view of metals markets, we use the probability-weighted average of the various 90 methods to determine whether the values of our assets are fairly stated, and to determine the level of valuation allowances, if any, on our deferred tax assets.
Using applicable accounting guidance and our view of metals markets, we use the probability-weighted average of the various methods to determine whether the values of our assets are fairly stated, and to determine the level of valuation allowances, if any, on our deferred tax assets.
The portion of cash costs, sustaining costs, by-product credits, and silver production incurred during the suspension period are excluded 86 from the calculation of total cost of sales, Cash Cost, Before By-product Credits, Cash Cost, After By-product Credits, and AISC, Before By-product Credits, and AISC, After By-product Credits.
The portion of cash costs, sustaining costs, by-product credits, and silver production incurred during the suspension period are excluded from the calculation of total cost of sales, Cash Cost, Before By-product Credits, Cash Cost, After By-product Credits, and AISC, Before By-product Credits, and AISC, After By-product Credits.
Thus, the gold produced at Casa Berardi is not included as a by-product credit when calculating Cash Cost, After By-product Credits, per Silver Ounce and AISC, After By-product Credits, per Silver 78 Ounce for the total of Greens Creek and Lucky Friday, our combined silver properties.
Thus, the gold produced at Casa Berardi is not included as a by-product credit when calculating Cash Cost, After By-product Credits, per Silver Ounce and AISC, After By-product Credits, per Silver 79 Ounce for the total of Greens Creek and Lucky Friday, our combined silver properties.
Consistent with that strategy, we aim to maintain an acceptable level of net debt and sufficient liquidity to fund debt service costs, operations, capital expenditures, exploration and pre-development projects, while returning cash to stockholders through dividends and potential share repurchases.
Consistent with that strategy, we aim to maintain an acceptable level of net debt and sufficient liquidity to fund debt service costs, operations, capital expenditures, potential strategic investments, exploration and pre-development projects, while returning cash to stockholders through dividends and potential share repurchases.
(7) Casa Berardi operations were suspended in June 2023 in response to the directive of the Quebec Ministry of Natural Resources and Forests as a result of fires in the region.
(6) Casa Berardi operations were suspended in June 2023 in response to the directive of the Quebec Ministry of Natural Resources and Forests as a result of fires in the region.
(6) Keno Hill is in the ramp-up phase of production and is excluded from the calculation of Cash Cost, Before By-product Credits, Cash Cost, After By-product Credits, AISC, Before By-product Credits, and AISC, After By-product Credits.
(5) Keno Hill is in the ramp-up phase of production and is excluded from the calculation of Cash Cost, Before By-product Credits, Cash Cost, After By-product Credits, AISC, Before By-product Credits, and AISC, After By-product Credits.
Pursuant to our common stock dividend policy described in Note 12 of Notes to Consolidated Financial Statements , our Board of Directors declared and paid dividends on common stock totaling $24.9 million in 2024, $15.2 million in 2023 and $12.4 million in 2022.
Pursuant to our common stock dividend policy described in Note 12 of Notes to Consolidated Financial Statements , our Board of Directors declared and paid dividends on common stock totaling $10.4 million in 2025, $24.9 million in 2024 and $15.2 million in 2023.
See Note 12 of Notes to Consolidated Financial Statements for more information. Exchange rate fluctuations between the U.S. dollar and the Canadian dollar and Mexican peso resulted in a decrease in our cash balance of $1.1 million, an increase of $1.1 million, and a decrease of $0.3 million, during 2024, 2023 and 2022, respectively.
See Note 12 of Notes to Consolidated Financial Statements for more information. Exchange rate fluctuations between the U.S. dollar and the Canadian dollar and Mexican peso resulted in an increase in our cash balance of $0.5 million, a decrease of $1.1 million, and an increase of $1.1 million, during 2025, 2024 and 2023, respectively.
During 2024, 2023 and 2022, we also purchased shares of our common stock for $1.2 million, $2.0 million and $3.7 million, respectively, as a result of our employees' election to utilize net share settlement to satisfy their tax withholding obligations related to incentive compensation paid in stock and vesting of restricted stock units.
During 2025, 2024 and 2023, we also purchased shares of our common stock for $0.9 million, $1.2 million and $2.0 million, respectively, as a result of our employees' election to utilize net share settlement to satisfy their tax withholding obligations related to incentive compensation paid in stock and vesting of restricted stock units.
Our organizational structure requires us to have two U.S. tax groups that do not consolidate. Hecla Mining Company and subsidiaries (“Hecla U.S. Group”) has a net deferred tax liability of $21.7 million at December 31, 2024 compared to a net deferred tax asset of $2.9 million at December 31, 2023.
Our organizational structure requires us to have two U.S. tax groups that do not consolidate. One of those U.S. tax groups is Hecla Mining Company and subsidiaries (“Hecla U.S. Group”) which has a net deferred tax liability of $117.2 million at December 31, 2025 compared to a net deferred tax liability of $21.7 million at December 31, 2024.
We currently estimate a range of approximately $222 to $242 million will be spent in 2025 on capital expenditures, primarily for equipment, infrastructure, and development at our mines, before any lease financing. We also estimate exploration and pre-development expenditures will total approximately $28 million in 2025.
We currently estimate a range of approximately $255 to $279 million will be spent in 2026 on capital expenditures, primarily for equipment, infrastructure, and development at our mines, before any lease financing. We also estimate exploration and pre-development expenditures will total approximately $55 million in 2026.
We utilize financially-settled forward contracts to manage our exposure to changes in prices for silver, gold, zinc and lead. See
We utilize financially-settled forward contracts, commodity price collars and put options to manage our exposure to changes in prices for silver, gold, zinc and lead. See
We drew down a cumulative $239 million and repaid a cumulative $111 million and drew down and repaid $25.0 million on our Credit Agreement during 2023 and 2022, respectively. In 2024, 2023 and 2022, we paid total cash dividends on our common and preferred stock of $25.3 million, $15.7 million and $12.9 million, respectively.
We drew down a cumulative $279 million and repaid a cumulative $384 million, and drew down a cumulative $239 million and repaid a cumulative $111 million on our Credit Agreement during 2024 and 2023, respectively. In 2025, 2024 and 2023, we paid total cash dividends on our common and preferred stock of $10.4 million, $25.3 million and $15.7 million, respectively.
Our liquid assets excluding restricted cash and cash equivalents include (in millions): December 31, 2024 December 31, 2023 December 31, 2022 Cash and cash equivalents held in U.S. dollars $ 24.5 $ 98.8 $ 86.8 Cash and cash equivalents held in foreign currency 2.4 7.6 17.9 Total cash and cash equivalents 26.9 106.4 104.7 Marketable equity securities 33.2 32.3 24.0 Total cash, cash equivalents and investments $ 60.1 $ 138.7 $ 128.7 Cash and cash equivalents decreased by $79.5 million in 2024, for the reasons discussed below.
Our liquid assets excluding restricted cash and cash equivalents include (in millions): December 31, 2025 December 31, 2024 December 31, 2023 Cash and cash equivalents held in U.S. dollars $ 215.1 $ 24.5 $ 98.8 Cash and cash equivalents held in foreign currency 26.5 2.4 7.6 Total cash and cash equivalents 241.6 26.9 106.4 Marketable equity securities 107.5 33.2 32.3 Total cash, cash equivalents and investments $ 349.1 $ 60.1 $ 138.7 Cash and cash equivalents increased by $214.7 million in 2025, for the reasons discussed below.
Year Ended December 31, 2024 2023 2022 Cash used in investing activities (in millions) $ (212.9 ) $ (231.3 ) $ (187.3 ) Capital expenditures, excluding $5.6 million in net non-cash finance lease additions, were $214.5 million in 2024, which was $9.4 million lower than 2023, primarily due to the prior year containing costs related to Lucky Friday making investments to support sustained higher throughput and building the secondary egress following the August 2023 fire, partly offset by higher capital investments at Keno Hill. 88 Capital expenditures, excluding $16.1 million in non-cash finance lease additions, were $223.9 million in 2023, which was $74.5 million higher than 2022.
Capital expenditures, excluding $5.6 million in net non-cash finance lease additions, were $214.5 million in 2024, which was $9.4 million lower than 2023, primarily due to the prior year containing costs related to Lucky Friday making investments to support sustained higher throughput and building the secondary egress following the August 2023 fire, partly offset by higher capital investments at Keno Hill.
The Senior Notes bear interest at a rate of 7.25% per year with interest payable on February 15 and August 15 of each year, commencing August 15, 2020. For more information, see Note 9 of Notes to Consolidated Financial Statements.
The Senior Notes bear interest at a rate of 7.25% per year, with interest payable on February 15 and August 15 of each year, commencing August 15, 2020, which were partially redeemed on August 18, 2025 for a redemption premium of $3.8 million. For more information, see Note 9 of Notes to Consolidated Financial Statements.
As discussed in Note 7 of Notes to Consolidated Financial Statements , our effective tax rate for 2024 was 46%, reflecting a tax expense of $30.4 million on pre-tax income of $66.2 million, compared to a negative 1% for 2023, reflecting a tax expense of $1.2 million on a pre-tax loss of $83.0 million.
As discussed in Note 7 of Notes to Consolidated Financial Statements , our effective tax rate for 2025 was 33%, reflecting a tax expense of $157.5 million on pre-tax income of $479.2 million, compared to 46% for 2024, reflecting a tax expense of $30.4 million on pre-tax income of $66.2 million.
The chart below illustrates the factors contributing to Cash Cost, After By-product Credits, Per Gold Ounce for 2024, 2023 and 2022: The following table summarizes the components of Cash Cost, After By-product Credits, per Gold Ounce: Years Ended December 31, 2024 2023 2022 Cash Cost, Before By-product Credits, per Gold Ounce $ 1,770 $ 1,658 $ 1,483 By-product credits per gold ounce (8 ) (6 ) (5 ) Cash Cost, After By-product Credits, per Gold Ounce $ 1,762 $ 1,652 $ 1,478 The following table summarizes the components of AISC, After By-product Credits, per Gold Ounce: 76 Years Ended December 31, 2024 2023 2022 AISC, Before By-product Credits, per Gold Ounce $ 1,998 $ 2,054 $ 1,778 By-product credits per gold ounce (8 ) (6 ) (5 ) AISC, After By-product Credits, per Gold Ounce $ 1,990 $ 2,048 $ 1,773 The increase in Cash Cost, After By-product Credits, per Gold Ounce for 2024 compared to 2023 and 2022 was primarily driven by lower gold production, partly offset by lower production costs due to the cessation of underground mining of the east mine in July 2023.
The chart below illustrates the factors contributing to Cash Cost, After By-product Credits, Per Gold Ounce for 2025, 2024 and 2023: The following table summarizes the components of Cash Cost, After By-product Credits, per Gold Ounce: Years Ended December 31, 2025 2024 2023 Cash Cost, Before By-product Credits, per Gold Ounce $ 1,861 $ 1,770 $ 1,658 By-product credits per gold ounce (10 ) (8 ) (6 ) Cash Cost, After By-product Credits, per Gold Ounce $ 1,851 $ 1,762 $ 1,652 The following table summarizes the components of AISC, After By-product Credits, per Gold Ounce: Years Ended December 31, 2025 2024 2023 AISC, Before By-product Credits, per Gold Ounce $ 2,039 $ 1,998 $ 2,054 By-product credits per gold ounce (10 ) (8 ) (6 ) AISC, After By-product Credits, per Gold Ounce $ 2,029 $ 1,990 $ 2,048 The increase in Cash Cost, After By-product Credits, per Gold Ounce and AISC, After By-product Credits, per Gold Ounce for 2025 compared to 2024 was primarily driven by higher production costs, partly offset by higher gold production.
We made payments on our finance leases of $10.5 million, $10.6 million, and $7.6 million in 2024, 2023, and 2022, respectively. We issued stock under our ATM program described above for net proceeds of $58.4 million, $56.7 million and $17.3 million in 2024, 2023 and 2022, respectively.
We made payments on our finance leases of $8.7 million, $10.5 million, and $10.6 million in 2025, 2024, and 2023, respectively. We issued stock under our ATM program described above for net proceeds of $216.2 million (utilized to redeem $212 million of Senior Notes), $58.4 million and $56.7 million in 2025, 2024 and 2023, respectively.
Risk Factors - An extended decline in metals prices, an increase in operating or capital costs, or treatment charges, mine accidents or closures, increasing regulatory obligations, or our inability to convert resources or exploration targets to reserves may cause us to record write-downs, which could negatively impact our results of operations and We have a substantial amount of debt that could impair our financial health and prevent us from fulfilling our obligations under our existing and future indebtedness.
Risk Factors - An extended decline in metals prices, an increase in operating or capital costs, or treatment charges, mine accidents or closures, increasing regulatory obligations, or our inability to convert resources or exploration targets to reserves may cause us to record write-downs, which could negatively impact our results of operations.
As discussed in Note 16 of Notes to Consolidated Financial Statements , we are involved in various other legal proceedings which may result in obligations in excess of provisions we have made. Critical Accounting Estimates Our significant accounting policies are described in Note 2 of Notes to Consolidated Financial Statements.
Risk Factors – Our environmental obligations may exceed the provisions we have made . As discussed in Note 16 of Notes to Consolidated Financial Statements , we are involved in various other legal proceedings which may result in obligations in excess of provisions we have made.
Sales of concentrates sold directly to customers are recorded as revenues upon completion of the performance obligations and transfer of control of the product to the customer (generally at the time of shipment) using estimated forward metals prices for the estimated month of settlement.
In addition, estimates of future metals prices are used in the valuation of certain assets in the determination of the purchase price allocations for our acquisitions. 92 Sales of concentrates sold directly to customers are recorded as revenues upon completion of the performance obligations and transfer of control of the product to the customer (generally at the time of shipment) using estimated forward metals prices for the estimated month of settlement.
Our obligations and other uses of cash may include, but are not limited to: debt service obligations related to the Senior Notes and our Series 2020-A Senior Notes due July 9, 2025 (the “IQ Notes”) issued to Investissement Québec, a financing arm of the Québec government, which have total principal of CAD$48.2 million and bear interest at a rate of 6.515%; principal and interest payments under our Credit Agreement; deferral of revenues, ramp-up and suspension costs at certain of our operations; capital expenditures at our operations; potential acquisitions of other mining companies or properties; regulatory matters; litigation; potential repurchases of our common stock under the program described above; and payment of dividends on common stock, if declared by our Board of Directors.
Our obligations and other uses of cash may include, but are not limited to: debt service obligations related to the Senior Notes; principal and interest payments under our Credit Agreement; deferral of revenues, ramp-up and suspension costs at certain of our operations; capital expenditures at our operations; potential acquisitions of other mining companies or 89 properties; regulatory matters; litigation; potential repurchases of our common stock under the program described above; and payment of dividends on common stock, if declared by our Board of Directors.
Our ability to fund the activities described above will depend on our operating performance, metals prices, our ability to estimate revenues and costs, sources of liquidity available to us, including the revolving credit facility, and other factors.
Our expenditures for these items and our related plans for 2026 may change based upon our financial position, metals prices, and other considerations. Our ability to fund the activities described above will depend on our operating performance, metals prices, our ability to estimate revenues and costs, sources of liquidity available to us, including the revolving credit facility, and other factors.
The decrease in AISC, After By-product Credits, per Gold Ounce for 2024 compared to 2023 is primarily due to sustaining capital expenditures that were $16.0 million lower, primarily resulting from lower deferred development costs. Corporate Matters Employee Benefit Plans Our defined benefit pension plans, while providing a significant benefit to our employees, have historically represented a significant liability to us.
The increase in AISC, After By-product Credits, per Gold Ounce for 2025 compared to 2024 was partly offset by sustaining capital expenditures that were $4.0 million lower than 2024. 77 Corporate Matters Employee Benefit Plans Our defined benefit pension plans, while providing a significant benefit to our employees, have historically represented a significant liability to us.
Year Ended December 31, 2024 2023 2022 Cash provided by operating activities (in millions) $ 218.3 $ 75.5 $ 89.9 Cash provided by operating activities increased by $142.8 million in 2024 compared to 2023.
Year Ended December 31, 2025 2024 2023 Cash provided by operating activities (in millions) $ 562.6 $ 218.3 $ 75.5 Cash provided by operating activities increased by $344.4 million in 2025 compared to 2024.
Significant variances in working capital changes between 2024 and 2023 resulted from negative movements in accounts receivables as Lucky Friday operations were suspended at December 31, 2023. Cash provided by operating activities decreased by $14.4 million in 2023 compared to 2022.
Significant variances in working capital changes between 2024 and 2023 resulted from negative movements in accounts receivables as Lucky Friday operations were suspended at December 31, 2023.
During 2024, the funded status of our plans assets decreased to $16.3 million at December 31, 2024 from $27.5 million at December 31, 2023. We do not expect to be required to contribute to our defined benefit plans in 2025, but we may choose to do so. See Note 6 of Notes to Consolidated Financial Statements for more information.
At December 31, 2025, our plans are in an underfunded status of $0.1 million. We do not expect to be required to contribute to our defined benefit plans in 2026, but we may choose to do so. See Note 6 of Notes to Consolidated Financial Statements for more information.
(3) Includes scheduled finance lease payments of $2.9 million, $4.5 million, $10.1 million, and $4.5 million for equipment at Greens Creek, Lucky Friday, Casa Berardi, and Keno Hill, respectively. For more information, see Note 9 of Notes to Consolidated Financial Statements. (4) We enter into operating leases in the normal course of business.
For more information on our Credit Agreement, see Note 9 of Notes to Consolidated Financial Statements. (3) Includes scheduled finance lease payments of $0.8 million, $2.4 million, $9.2 million, and $2.5 million for equipment at Greens Creek, Lucky Friday, Casa Berardi, and Keno Hill, respectively. For more information, see Note 9 of Notes to Consolidated Financial Statements.
(4) Other includes $20.5 million of total cost of sales for the year ended December 31, 2024, and $6.3 million and $4.5 million of cost of sales for the year ended December 31, 2023 and 2022, respectively, related to the Company's environmental services business and Nevada.
(4) Other includes $38.6 million, $20.5 million and $6.3 million of total cost of sales for the years ended December 31, 2025, 2024, and 2023, respectively.
At December 31, 2024, we had $26.9 million in cash and cash equivalents, of which $2.4 million was held in foreign subsidiaries' local currency that we anticipate utilizing for near-term operating, exploration or capital costs by those foreign subsidiaries.
At December 31, 2025, we had $241.6 million in cash and cash equivalents, of which $26.5 million was held in foreign subsidiaries' local currency that we anticipate utilizing for near-term operating, exploration or capital costs by those foreign subsidiaries. At December 31, 2025, we had no amounts drawn on our credit facility with $6.7 million utilized for letters of credit.
For more information, see Note 9 of Notes to Consolidated Financial Statements. 89 (5) On February 19, 2020, we completed an offering of $475 million in aggregate principal amount of our Senior Notes.
Our future operating lease obligations would change if we exercised these renewal options and if we entered into additional operating lease arrangements. For more information, see Note 9 of Notes to Consolidated Financial Statements. 91 (5) On February 19, 2020, we completed an offering of $475 million in aggregate principal amount of our Senior Notes.
In early February 2025, we revised our common stock dividend policy to eliminate the silver-linked component. We intend to maintain the annual common stock dividend, however the declaration and payment of dividends remain in the sole discretion of our Board of Directors, and there can be no assurance it will declare any future dividend.
However the declaration and payment of dividends remain in the sole discretion of our Board of Directors, and there can be no assurance it will declare any future dividend.
Suspension costs amounted to $2.2 million for the year ended December 31, 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.
Suspension costs amounted to $2.2 million for the year ended December 31, 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. 88 (7) Lucky Friday operations were suspended in August 2023 following the underground fire in the #2 shaft secondary egress and resumed on January 9, 2024.
The other relevant provisions of the TCJA that became effective in 2018 consist of global intangible low-taxed income tax and base erosion and anti-abuse tax; however, these provisions have not had a material impact. 77 Reconciliation of Total Cost of Sales to Cash Cost, Before By-product Credits and Cash Cost, After By-product Credits (non-GAAP) and All-In Sustaining Cost, Before By-product Credits and All-In Sustaining Cost, After By-product Credits (non-GAAP) The tables below present reconciliations between the most comparable GAAP measure of total cost of sales to the non-GAAP measures of (i) Cash Cost, Before By-product Credits, (ii) Cash Cost, After By-product Credits, (iii) AISC, Before By-product Credits and (iv) AISC, After By-product Credits for our operations and for the Company for the years ended December 31, 2024, 2023 and 2022.
Reconciliation of Total Cost of Sales to Cash Cost, Before By-product Credits and Cash Cost, After By-product Credits (non-GAAP) and All-In Sustaining Cost, Before By-product Credits and All-In Sustaining Cost, After By-product Credits (non-GAAP) The tables below present reconciliations between the most comparable GAAP measure of total cost of sales to the non-GAAP measures of (i) Cash Cost, Before By-product Credits, (ii) Cash Cost, After By-product Credits, (iii) AISC, Before By-product Credits and (iv) AISC, After By-product Credits for our operations and for the Company for the years ended December 31, 2025, 2024 and 2023.
At December 31, 2024, our liabilities for these matters totaled $124.9 million. Future expenditures related to closure, reclamation and environmental expenditures at our other sites are difficult to estimate, although we anticipate we will incur expenditures relating to these obligations over the next 30 years.
Future expenditures related to closure, reclamation and environmental expenditures at our other sites are difficult to estimate, although we anticipate we will incur expenditures relating to these obligations over the next 30 years. For additional information relating to our environmental obligations, see Note 5 of Notes to Consolidated Financial Statements and Item 1A.
As of December 31, 2024, we have sold a total of 23,843,684 shares under the agreement for proceeds of $132.3 million, net of commissions and fees of $2.1 million.
As of December 31, 2025, we have sold a total of 59,802,012 shares under the agreement for proceeds of $348.5 million, net of commissions and fees of $5.4 million.
Substantially all lease agreements have fixed payment terms based on the passage of time. Some lease agreements provide us with the option to renew the lease or purchase the leased property. Our future operating lease obligations would change if we exercised these renewal options and if we entered into additional operating lease arrangements.
(4) We enter into operating leases in the normal course of business. Substantially all lease agreements have fixed payment terms based on the passage of time. Some lease agreements provide us with the option to renew the lease or purchase the leased property.
The decrease was due to lower income, adjusted for non-cash items, further compounded by the negative impact of working capital and other operating asset and liability changes.
The increase was due to higher income, adjusted for non-cash items, which increased by $372.0 million, partly offset by the negative impact of working capital and other operating asset and liability changes that increased by $27.7 million. Income, adjusted for non-cash items, was higher primarily due to higher revenues.
As described in such Note 2 , we are required to make estimates and assumptions that affect the reported amounts and related disclosures of assets, liabilities, revenue, and expenses. Our estimates are based on our experience and our interpretation of economic, political, regulatory, and other factors that affect our business prospects. Actual results may differ significantly from our estimates.
Our estimates are based on our experience and our interpretation of economic, political, regulatory, and other factors that affect our business prospects. Actual results may differ significantly from our estimates.
Item 1A. Risk Factors - Our profitability could be affected by inflation, including the prices of other commodities for a discussion of certain risks related to our operation's profitability.
Item 1A. Risk Factors - Our profitability could be affected by inflation, including the prices of other commodities for a discussion of certain risks related to our operation's profitability. 76 In 2025, total capital additions increased by $0.8 million to $61.5 million compared to 2024, and in the current year primarily related to tailings facility construction.
Any sales of shares under the equity distribution agreement are registered under the Securities Act of 1933, as amended, pursuant to a shelf registration statement on Form S-3. During the year ended December 31, 2024, we sold 9,339,287 shares under the agreement for proceeds of $58.4 million, net of commissions and fees of approximately $0.9 million.
Any sales of shares under the equity distribution agreement are registered under the Securities Act of 1933, as amended, pursuant to a shelf registration statement on Form S-3.
Contractual Obligations and Contingent Liabilities and Commitments The table below presents our fixed, non-cancelable contractual obligations and commitments primarily related to our Senior Notes, IQ Notes, revolving credit facility, outstanding purchase orders and certain service contract commitments, and lease arrangements as of December 31, 2024 (in thousands): Payments Due By Period Less than 1 year 2-3 years 4-5 years After 5 years Total Purchase and contractual obligations (1) $ 36,293 $ — $ — $ — $ 36,293 Credit Agreement (2) 1,813 2,937 23,813 — $ 28,563 Finance lease commitments (3) 9,576 11,810 2,199 550 $ 24,135 Operating lease commitments (4) 1,299 2,491 2,044 4,916 $ 10,750 Senior Notes (5) 34,438 68,875 479,305 — $ 582,618 IQ Notes (6) 35,709 — — — $ 35,709 Total contractual cash obligations $ 119,128 $ 86,113 $ 507,361 $ 5,466 $ 718,068 (1) Consists of open purchase orders and commitments of approximately $5.8 million, $9.7 million, $11.2 million, $9.1 million and $0.5 million for various capital and non-capital items at Greens Creek, Lucky Friday, Keno Hill, Casa Berardi and Other Operations, respectively.
Contractual Obligations and Contingent Liabilities and Commitments The table below presents our fixed, non-cancelable contractual obligations and commitments primarily related to our Senior Notes, revolving credit facility, outstanding purchase orders and certain service contract commitments, and lease arrangements as of December 31, 2025 (in thousands): Payments Due By Period Less than 1 year 2-3 years 4-5 years After 5 years Total Purchase and contractual obligations (1) $ 29,686 $ — $ — $ — $ 29,686 Credit Agreement (2) 1,604 2,543 — — $ 4,147 Finance lease commitments (3) 7,786 5,407 1,731 — $ 14,924 Operating lease commitments (4) 1,501 2,973 2,621 5,060 $ 12,155 Senior Notes (5) 19,068 19,068 265,403 — $ 303,539 Total contractual cash obligations $ 59,645 $ 29,991 $ 269,755 $ 5,060 $ 364,451 (1) Consists of open purchase orders and commitments of approximately $6.8 million, $7.1 million, $6.8 million, $8.5 million and $0.6 million for various capital and non-capital items at Greens Creek, Lucky Friday, Keno Hill, Casa Berardi and Other Operations, respectively.
The amounts in the table above assumes no additional amounts will be drawn in future periods, and includes only the standby fee on the current undrawn balance and accrued interest. For more information on our Credit Agreement, see Note 9 of Notes to Consolidated Financial Statements.
(2) The Credit Agreement provides for a $225 million revolving credit facility. We had no amount drawn and $6.7 million in letters of credit outstanding as of December 31, 2025. The amounts in the table above assumes no additional amounts will be drawn in future periods, and includes only the standby fee on the current undrawn balance and accrued interest.
Cash and cash equivalents held in foreign currencies primarily represents balances in CAD, and decreased by $5.2 million in 2024 due to a decrease in CAD held at our Canadian operations. The value of marketable equity securities at the end of 2024 was consistent with the prior year.
Cash and cash equivalents held in foreign currencies primarily represents balances in CAD, and increased by $24.1 million in 2025. The value of marketable equity securities at the end of 2025 increased by $74.3 million due to an overall fair value increase.
We expect that there would be no additional tax burden upon repatriation after considering the cash cost associated with the withholding taxes. We believe that our liquidity and capital resources from our U.S. operations are adequate to fund our U.S. operations and corporate activities.
We believe that our liquidity and capital resources from our U.S. operations are adequate to fund our U.S. operations and corporate activities.
Year Ended December 31, 2024 2023 2022 Cash (used in) provided by financing activities (in millions) $ (83.8 ) $ 156.3 $ (7.5 ) During 2024, we drew down a cumulative $279 million and repaid a cumulative $384 million on our Credit Agreement.
Year Ended December 31, 2025 2024 2023 Cash (used in) provided by financing activities (in millions) $ (78.0 ) $ (83.8 ) $ 156.3 During 2025, we fully repaid our IQ Notes and we had net repayments of $23.0 million on our revolving credit facility resulting in no amount drawn as of December 31, 2025.
Our net Canadian deferred tax liability at December 31, 2024 was $57.8 million, a decrease of $16.3 million from the $74.1 million net deferred tax liability at December 31, 2023. The decrease was due to current period activity. Our Mexican net deferred tax asset at December 31, 2024 remains at zero with no change from December 31, 2023.
Our Mexican net deferred tax asset at December 31, 2025 remains at zero with no change from December 31, 2024. The valuation allowance increased to $13.7 million.
At December 31, 2024, we had utilized $29.2 million drawn on our credit facility with $6.2 million for letters of credit, and the remaining $23.0 million as borrowings. We also have USD cash and cash equivalent balances held by our foreign subsidiaries that, if repatriated, may be subject to withholding taxes.
We also have USD cash and cash equivalent balances held by our foreign subsidiaries that, if repatriated, may be subject to withholding taxes. We expect that there would be no additional tax burden upon repatriation after considering the cash cost associated with the withholding taxes.
The decrease of $24.6 million is primarily related to utilization of tax loss carryforwards. Klondex Mines Ltd (“Klondex”) is a separate U.S. tax group (“Nevada U.S. Group”) that has a net deferred tax liability of $30.8 million and $30.8 million at December 31, 2024 and 2023, respectively.
Group”) that has a net deferred tax liability of $30.6 million and $30.8 million at December 31, 2025 and 2024, respectively. Our net Canadian deferred tax liability at December 31, 2025 was $98.6 million, an increase of $40.8 million from the $57.8 million net deferred tax liability at December 31, 2024. The increase was due to higher Canadian taxable income.
Removed
Although Casa Berardi generated gross profits during the third and fourth quarter of 2024, it has generated gross losses for the last three years (including 2024) and for eight of the last ten quarters.
Added
For 2024, Cash Cost, After By-product Credits, per Gold Ounce was higher primarily due to lower production compared to 2023.
Removed
This lack of profitability, the expected hiatus in future production discussed above, the uncertainty surrounding permitting and pit design and construction, and the time involved to resolve these uncertainties, has caused us to undertake a review of how Casa Berardi fits into the Company's future strategy.
Added
The increase of $95.5 million is primarily related to taxable income and the utilization of net operating losses carried forward from prior periods as well as the election of bonus depreciation and other accelerated tax deductions. Klondex Mines Ltd (“Klondex”) is the other separate U.S. tax group (“Nevada U.S.
Removed
While it is possible we may continue down the path towards future production at the Principal and West Mine Crown Pillar pits, we are also examining potential strategic alternatives.
Added
As a result, the 2025 effective tax rate varies significantly from that of 2024. The other relevant provisions of the TCJA that became effective in 2018 consist of global intangible low-taxed income tax ("GILTI"), base erosion and anti-abuse tax ("BEAT") and foreign-derived intangible income ("FDII"). Hecla U.S.
Removed
Total capital additions increased by $30.4 million in 2023 compared to 2022 primarily due to purchases of new surface fleet equipment, as mentioned above, and the construction of tailings storage facilities. Significant components of 2023 capital expenditures were tailings dam construction costs of $41.0 million, $18.2 million on machinery and equipment, and $11.2 million on development.
Added
Group recorded a current expense for GILTI in 2025 due to earning in foreign jurisdictions. The BEAT and FDII provisions have not had a material impact.
Removed
The valuation allowance decreased to $11.6 million due to utilization and expiration of deferred tax assets at our operations in Mexico.
Added
See “Pending Sale of Casa Berardi” for more information about the consideration we anticipate receiving upon the consummation of our sale of Casa Berardi, which we anticipate using for debt reduction and balance sheet strengthening, enhancing our financial flexibility and capacity to invest in strategic growth investments, and positioning us to maximize value from our world-class silver portfolio.
Removed
As a result, the 2025 effective tax rate could vary significantly from that of 2024.
Added
In 2024, we made the following dividend payments in relation to our minimum and silver-linked components.
Removed
(5) Prior years 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.
Added
Three months ended Declaration Date Realized Silver Price Minimum Component Silver-Linked Component Total Dividend March 31, 2024 May 8, 2024 $24.77 $0.00375 $0.0025 $0.00625 June 30, 2024 August 6, 2024 29.77 0.00375 0.0025 0.00625 September 30, 2024 November 6, 2024 29.43 0.00375 0.01 0.01375 December 31, 2024 February 7, 2025 30.19 0.00375 0.01 0.01375 In early February 2025, we revised our common stock dividend policy to eliminate the silver-linked component, while maintaining the annual common stock dividend.
Removed
(8) Lucky Friday operations were suspended in August 2023 following the underground fire in the #2 shaft secondary egress and resumed on January 9, 2024.
Added
During the year ended December 31, 2025, we sold 35,959,328 shares under the agreement for proceeds of $216.2 million, net of commissions and fees of approximately $3.3 million, which were used to redeem $212 million of our Senior Notes.
Removed
We realized silver prices of $24.77, $29.77, $29.43 and $30.19 in the first, second, third and fourth quarters of 2024, respectively, thus satisfying the criterion for the silver-linked dividend component of our common stock dividend policy.
Added
Negative working capital adjustments, primarily related to an increase in accounts receivables reflecting the higher price environment and a concentrate shipment close to year end at Greens Creek contributed to the increased working capital of $27.8 million in 2025 compared to 2024. Cash provided by operating activities increased by $142.8 million in 2024 compared to 2023.
Removed
As a result, on May 8, 2024, August 6, 2024, November 6, 2024, and February 7, 2025 our Board of Directors declared quarterly cash dividends 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 now discontinued silver-linked dividend component of our dividend policy, for the first and second quarters of 2024, and quarterly cash dividends of $0.01375 per share of common stock, consisting of $0.00375 per share for the minimum dividend component and $0.010 per share for the silver linked dividend component for the third and fourth quarters of 2024.
Added
Year Ended December 31, 2025 2024 2023 Cash used in investing activities (in millions) $ (270.5 ) $ (212.9 ) $ (231.3 ) Capital expenditures were $252.4 million in 2025, which was $37.9 million higher than 2024, primarily due to pond 5 construction and development at Lucky Friday, and higher development at Keno Hill.
Removed
Our expenditures for these items and our 87 related plans for 2025 may change based upon our financial position, metals prices, and other considerations.
Added
We also purchased silver put options for $25.0 million to 90 protect gross margins for a significant part of our 2026 production. In addition, we collected $28.1 million from investment sales and purchased investments for $21.9 million.
Removed
Income, adjusted for non-cash items, was lower by $4.8 million primarily due to increased loss from operations, which was mainly a result of higher ramp-up and suspension costs associated with continued ramp-up at Keno Hill and suspension of operations at Lucky Friday.
Added
We record liabilities for estimated costs associated with mine closure, reclamation of land and other environmental matters. At December 31, 2025, our liabilities for these matters totaled $202.3 million.
Removed
Working capital and other operating asset and liability changes resulted in a net cash decrease of $9.6 million in 2023 compared to 2022. Significant variances in working capital changes between 2023 and 2022 resulted from lower cash flows from changes in other current and non-current assets and accrued payroll and related benefits.
Added
Critical Accounting Estimates Our significant accounting policies are described in Note 2 of Notes to Consolidated Financial Statements. As described in such Note 2 , we are required to make estimates and assumptions that affect the reported amounts and related disclosures of assets, liabilities, revenue, and expenses.
Removed
The major components of this increase were from an increase of $30.4 million at Casa Berardi primarily due to purchases of new surface fleet equipment as the mine transitions from an underground to an open pit operation and the construction of tailings storage facilities, an increase of $24.9 million at Keno Hill related to mine development, mobile equipment purchases, crusher modifications and camp upgrades, and an increase of $14.3 million at Lucky Friday as investments were made to support sustained higher throughput and costs were incurred to build the secondary egress following the August 2023 fire.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeItem 1C. Cybersecurity 33 Item 2. Propert ies 34 Summary 35 Greens Creek 42 Lucky Friday 48 Keno Hill 53 Casa Berardi 57 Internal Controls 60 Item 3. Legal Proceedings 60 Item 4. Mine Safety Disclosures 60 PART II 61
Biggest changeItem 1C. Cybersecurity 33 Item 2. Propert ies 34 Summary 35 Greens Creek 42 Lucky Friday 48 Keno Hill 52 Casa Berardi 56 Internal Controls 60 Item 3. Legal Proceedings 60 Item 4. Mine Safety Disclosures 60 PART II 61

Item 2. Properties

Properties — owned and leased real estate

2 edited+84 added−185 removed0 unchanged
Biggest changeSee Note 4 of Notes to Consolidated Financial Statements and Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations - Results of Operations - Lucky Friday for information on its financial performance.
Biggest changeSee Note 7 of Notes to Consolidated Financial Statements for additional detail on the valuation allowance.
See Note 4 of Notes to Consolidated Financial Statements and Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations - Results of Operations - Casa Berardi for information on its financial performance.
See Note 9 of Notes to Consolidated Financial Statements for more information on our credit facility.
Removed
Item 2. Properties Note on SEC Mining Disclosure Rules Information concerning our mining properties in this Annual Report on Form 10-K has been prepared in accordance with the requirements of subpart 1300 of SEC Regulation S-K.
Added
Item 2. – Properties above for the metals price assumptions used in our estimates of reserves and resources as of December 31, 2025, 2024 and 2023. Our assessment of reserves and resources occurs at least annually. Periodically we utilize external specialists to perform independent audits of our operating properties reserves and resources.
Removed
Subpart 1300 requires us to disclose our mineral resources, in addition to our mineral reserves, as of the end of our most recently completed fiscal year both in the aggregate and for each of our individually material mining properties. You are cautioned that mineral resources do not have demonstrated economic value.
Added
Reserves and resources are a key component in the valuation of our properties, plants and equipment. Reserve estimates are used in determining appropriate rates of units-of-production depreciation, with net book value of many assets depreciated over remaining estimated reserves.
Removed
Mineral resources are subject to further exploration and development, are subject to additional risks, and no assurance can be given that they will eventually convert to future reserves. Inferred Resources, in particular, have a great amount of uncertainty as to their existence and their economic and legal feasibility.
Added
Reserves and resources are also a key component in forecasts, with which we compare future cash flows to current asset values in an effort to ensure that carrying values are reported appropriately. Our forecasts are also used in determining the level of valuation allowances on our deferred tax assets.
Removed
Investors are cautioned not to assume that any part or all of the Inferred Resource exists or is economically or legally mineable.
Added
Reserves and resources also play a key role in the valuation of certain assets in the determination of the purchase price allocations for acquisitions. Annual reserve and resource estimates are also used to determine conversions of resources and exploration targets beyond the known reserve resulting from business combinations to depreciable reserves, in periods subsequent to the business combinations.
Removed
See Item 1A, Risk Factors . 34 Sum mary The map below shows the locations of our operations and our exploration projects, as well as our corporate offices located in Coeur d’Alene, Idaho; Vancouver, British Columbia; Juneau, Alaska; Wallace, Idaho; Val d'Or, Quebec; Durango, Mexico and Whitehorse, Yukon. 35 The following table summarizes our aggregate metal quantities produced and sold for the last three years: Year Ended December 31, 2024 2023 2022 Silver - Ounces produced 16,169,930 14,342,863 14,182,987 Payable ounces sold 14,485,158 12,955,006 12,311,595 Gold - Ounces produced 141,923 151,259 175,807 Payable ounces sold 132,442 141,602 165,818 Lead - Tons produced 52,515 40,347 48,713 Payable tons sold 44,795 35,429 41,423 Zinc - Tons produced 66,308 60,579 64,748 Payable tons sold 47,593 43,050 43,658 Copper - Tons produced 1,874 1,823 1,904 Payable tons sold 50 — — 36 A summary overview of our mining operations and exploration and pre-development projects is shown in the following table: Location Property Country State/Province Ownership Claims Permit Conditions Stage Mine Type Commodity Mineralization Style Greens Creek United States Alaska 100.0 % 440 unpatented lode claims, 58 unpatented millsite claims (8,072 acres), 21 patented lode claims and one patented millsite claim (328 acres); Land Exchange Properties (7,301 acres) Private or USFS administered land, all required permits for production in place Production Underground Ag, Au, Pb, Zn Massive Sulfide Lucky Friday United States Idaho 100.0 % 43 patented lode and millsite claims (710 acres); 53 unpatented lode claims (535 acres) Private or USFS administered land, all required permits for production in place Production Underground Ag, Pb, Zn Vein Casa Berardi Canada Quebec 100.0 % 407 claims; 49,480 acres (20,024 ha) All required permits for production in place or in process Production Underground/Open Pit Au Vein/Shear Zone Keno Hill Canada Yukon 100.0 % 703 quartz mining leases, 867 quartz mining claims, 2 Crown Grants; (238.12 km 2 / 23,812 ha) All required permits for production in place or in process Development Underground Ag, Au, Pb, Zn Vein/Fault Zone San Sebastian Mexico Durango 100.0 % 31 mining concessions; 99,643 acres (40,324 ha) All required permits for exploration in place Exploration Underground/Open Pit Ag, Au, Cu, Pb, Zn Vein Fire Creek United States Nevada 100.0 % 831 unpatented lode claims (17,175 acres); leases (409 acres); private land (3,208 acres) BLM administered land, Plan of Operations and other required State permits in place Exploration Underground Au, Ag Vein Hollister United States Nevada 100.0 % 853 unpatented lode claims, 152 leased unpatented lode claims, 11 unpatented mill site claims; 17,960 acres total BLM administered land, Plan of Operations and other required State permits in place Exploration Underground Au, Ag Vein Midas United States Nevada 100.0 % 1,456 unpatented lode claims, 33 leased unpatented lode claims, (total 27,583 acres unpatented claims); 44 patented lode claims, private land (2,417 acres) BLM administered land, Plan of Operations and other required State permits in place Exploration Underground Au, Ag Vein Heva - Hosco Canada Quebec 100.0 % 102 claims; 9,600 acres (3,884 ha) Annual intervention permits for exploration in place along with authorization for road building Exploration Underground/Open Pit Au Vein/Shear Zone San Juan Silver United States Colorado 100.0 % 129 patented lode and millsite claims, fee lands, 704 unpatented lode claims; 13,645 total acres 7 Notice-of-Intent areas for Exploration, Mining Plan of Operations (USFS); 112-d2 mining permit (CO DRMS) Exploration Underground Ag, Pb, Zn Vein Star United States Idaho 100.0 % 174 patented lode and millsite claims; 2,376 total acres Private land, required permits in place for exploration Exploration Underground Ag, Zn, Pb Vein Monte Cristo United States Nevada 100.0 % 334 unpatented lode claims, 10 leased unpatented lode claims (6,880 acres) BLM administered land, Notice of Intent required Exploration Underground/Open Pit Au, Ag Vein Rock Creek United States Montana 100.0 % 99 patented lode claims (1,859 acres), 370 unpatented lode claims (6,829 acres), 115 unpatented millsite claims, 5 unpatented tunnel sites; other private land: 754 acres Private or USFS administered land.
Added
Reserves and resources are a culmination of many estimates and are not guarantees that we will recover the indicated quantities of metals or that we will do so at a profitable level. Valuation of Deferred Tax Assets Our deferred income tax assets include certain future tax benefits.
Removed
Some State permits in-place; no Federal permits. Exploration Underground Ag, Cu Sediment Hosted - Stratabound Libby Exploration United States Montana 100.0 % 2 patented lode claims, 36.84 acres (22.33 in wilderness, 14.51 outside wilderness); 26 unpatented lode claims (537 acres), 854 unpatented mill site claims, 11 unpatented tunnel site claims Private or USFS administered land.
Added
We record a valuation allowance against any portion of those deferred income tax assets when we believe, based on the weight of available evidence, it is more likely than not that some portion or all of the deferred income tax asset will not be realized.
Removed
Exploration Underground Ag, Cu Sediment Hosted - Stratabound 37 Republic United States Washington 100.0 % 114 patented claims and private land; 22 unpatented lode claims, 3 state leases, 2,096 acres surface rights, 3,536 acres of mineral rights Private, BLM and WA DNR administered lands Exploration Underground/Open Pit Au, Ag Vein Silver Valley United States Idaho 100.0 % Various exploration properties and claim holdings Private or USFS administered land Exploration Underground Ag, Zn, Pb Vein Aurora United States Nevada 100.0 % 448 unpatented lode claims, 92 patented lode claims, 25 private parcels; 9,928 total acres Private or USFS administered land, permit work in progress for USFS lands Exploration Underground/Open Pit Au, Ag Vein Kinskuch Canada British Columbia 100.0 % 156 claims; 146,780 acres Multi-use area-based permit with expiry 31 March 2024 Exploration Underground/Open Pit Au, Ag, Cu, Pb, Zn Vein, Massive Sulfide, Porphyry Opinaca/Wildcat Canada Quebec 50% / 100% Opinaca: 248 claims (50%; 32,064 acres (12,975 ha)); Wildcat: 224 claims (100%; 28,928 acres (11,707 ha)) Intervention permits for exploration updated every year Exploration Underground Au Vein/Shear Zone Rackla - Tiger Canada Yukon 100.0 % 3,315 quartz mineral claims; 164,547 acres (66,590 ha) Class 3 Quartz Mining Land Use Approval LQ00531; approved by Yukon Environmental and Socio-economic Assessment Board Exploration Open Pit/Underground Au Carbonate hosted/replacement - reduced intrusion related Rackla - Osiris Canada Yukon 100.0% 1,478 quartz mineral claims; 74,576 acres (30,180 ha) Class 4 Quartz Mining Land Use Approval LQ00444; approved by Yukon Environmental and Socio-economic Assessment Board Exploration Open Pit/Underground Au Carbonate hosted, disseminated (Carlin-style) Hecla is the operator at all mines and exploration properties.
Added
We review the likelihood that we will realize the benefit of our deferred tax assets and therefore the need for valuation allowances on a quarterly basis, or more frequently if events indicate that a review is required.
Removed
Mineral processing plants and related facilities are part of the infrastructure at each operating mine.
Added
In determining the requirement for a valuation allowance, the historical and projected financial results of the legal entity or consolidated group recording the net deferred tax asset is considered, along with all other available positive and negative evidence.
Removed
The following table summarizes the in-situ mineral reserves for all properties as of December 31, 2024: Asset Tons (000) Silver (oz/ton) Gold (oz/ton) Lead % Zinc % Silver (000 oz) Gold (000 oz) Lead Tons Zinc Tons Proven Reserves: (1) Greens Creek (2,3) 9 7.6 0.07 2.4 6.5 70 1 220 600 Lucky Friday (2,4) 5,285 11.9 — 7.6 3.6 62,825 — 400,400 189,860 Casa Berardi Underground (2,5) 87 - 0.15 — — — 13 — — Casa Berardi Open Pit (2,5) 4,958 - 0.08 — — — 415 — — Keno Hill (2,6) 13 28.1 — 3.0 1.6 364 — 380 200 Total Proven 10,352 63,259 429 401,000 190,660 Probable Reserves: (7) Greens Creek (2,3) 10,438 9.9 0.08 2.3 6.2 103,641 864 240,450 645,410 Lucky Friday (2,4) 790 11.4 — 7.6 3.1 9,011 — 60,210 24,620 Casa Berardi Underground (2,5) 391 — 0.15 — — — 59 — — Casa Berardi Open Pit (2,5) 10,457 — 0.08 — — — 804 — — Keno Hill (2,6) 2,630 24.3 0.01 2.4 2.4 63,914 17 63,440 62,790 Total Probable 24,706 176,566 1,744 364,100 732,820 Proven and Probable Reserves: (1,7) Greens Creek (2,3) 10,447 9.9 0.08 2.3 6.2 103,711 865 — 240,670 — 646,010 Lucky Friday (2,4) 6,075 11.8 — 7.6 3.5 71,836 — — 460,610 — 214,480 Casa Berardi Underground (2,5) 478 — 0.15 — — — 72 — — — — Casa Berardi Open Pit (2,5) 15,415 — 0.08 — — — 1,219 — — Keno Hill (2,6) 2,643 24.3 0.01 2.4 2.4 64,278 17 63,820 62,990 Total Proven and Probable 35,058 239,825 2,173 765,100 923,480 38 (1) The term “reserve” means an estimate of tonnage and grade or quality of indicated and measured mineral resources that, in the opinion of the qualified person, can be the basis of an economically viable project.
Added
Certain categories of evidence carry more weight in the analysis than others based upon the extent to which the evidence may be objectively verified.
Removed
More specifically, it is the economically mineable part of a measured or indicated mineral resource, which includes diluting materials and allowances for losses that may occur when the material is mined or extracted. The term “proven reserves” means the economically mineable part of a measured mineral resource and can only result from conversion of a measured mineral resource.
Added
We look to the nature and severity of cumulative pretax losses (if any) in the current three-year period ending on the evaluation date or the expectation of future pretax losses and the existence and frequency of prior cumulative pretax losses.
Removed
See footnotes 8 and 9 below. (2) Mineral reserves are based on the following prices unless otherwise stated: $22.00/oz for silver, $1,900/oz for gold, $0.90/lb for lead and $1.15/lb for zinc. Underground mineral reserves at Casa Berardi were based on a gold price of $1,900/oz. All Mineral Reserves are reported in-situ with estimates of mining dilution and mining loss.
Added
We utilize a rolling twelve quarters of pre-tax income or loss as a measure of our cumulative results in recent years. Concluding that a valuation allowance is not required is difficult when there is significant negative evidence which is objective and verifiable, such as cumulative losses in recent years.
Removed
(3) The reserve NSR cut-off value for Greens Creek is $230/ton for all zones; metallurgical recoveries (actual 2024): 79% for silver, 72% for gold, 81% for lead, and 89% for zinc.
Added
However, a cumulative three year loss is not solely determinative of the need for a valuation allowance.
Removed
(4) The reserve NSR cut-off values for Lucky Friday are $225/ton for the 30 Vein and $236/ton for the Intermediate Veins; metallurgical recoveries (actual 2024): 94% for silver, 94% for lead, and 86% for zinc. (5) The average reserve cut-off grades at Casa Berardi are 0.12 oz/ton gold (4.1 g/tonne) underground and 0.03 oz/ton gold (1.1 g/tonne) for open pit.
Added
We also consider all other available positive and negative evidence in our analysis. 93 Other factors considered in the determination of the probability of the realization of the deferred tax assets include, but are not limited to: • Earnings history; • Projected future financial and taxable income based upon existing reserves and long-term estimates of commodity prices; • The duration of statutory carry forward periods; • Prudent and feasible tax planning strategies readily available that may alter the timing of reversal of the temporary difference; • Nature of temporary differences and predictability of reversal patterns of existing temporary differences; and • The sensitivity of future forecasted results to commodity prices and other factors.
Removed
Metallurgical recovery (actual 2024): 85% for gold; US$/CAD$ exchange rate: 1:1.35. (6) The reserve NSR cut-off value at Keno Hill is $235.20/ton (CAD$350/tonne), Metallurgical recovery (actual 2024): 97% for silver, 95% for lead, 87% for zinc; US$/CAD$ exchange rate: 1:1.35.
Added
The Company assesses available positive and negative evidence to estimate if sufficient future taxable income will be generated to utilize the existing deferred tax assets. A significant piece of objective negative evidence is recent pretax losses and/or expectations of future pretax losses. Such objective evidence limits the ability to consider other subjective evidence including projections for future growth.
Removed
(7) The term “probable reserves” means the economically mineable part of an indicated and, in some cases, a measured mineral resource. See footnotes 9 and 10 below.
Added
The amount of the deferred tax asset considered realizable, however, could be adjusted if estimates of future taxable income during the carryforward period are increased or if objective negative evidence in the form of cumulative losses is no longer present and additional weight may be given to subjective evidence such as our projections for growth.
Removed
The following table summarizes the in-situ mineral resources (8) for all properties, exclusive of mineral reserves, as of December 31, 2024: 39 Asset Tons (000) Silver (oz/ton) Gold (oz/ton) Lead % Zinc % Copper % Silver (000 oz) Gold (000 oz) Lead Tons Zinc Tons Copper Tons Measured Resources: (9) Greens Creek (12,13) — — — — — — — — — — — Lucky Friday (12,14) 3,781 8.7 — 5.8 2.6 — 32,795 — 217,490 99,840 — Casa Berardi Underground (12,15) 1,486 — 0.20 — — — — 300 — — — Casa Berardi Open Pit (12,15) 84 — 0.03 — — — — 3 — — — Keno Hill (12,16) — — — — — — — — — — — San Sebastian - Oxide (17) — — — — — — — — — — — San Sebastian - Sulfide (17) — — — — — — — — — — — Fire Creek (18,19) — — — — — — — — — — — Hollister (18,20) 19 4.7 0.57 — — — 88 11 — — — Midas (18,21) 2 7.1 0.62 — — — 15 1 — — — Heva (22) — — — — — — — — — — — Hosco (22) — — — — — — — — — — — Star (12,23) — — — — — — — — — — — Rackla - Tiger Underground (29) 32 — 0.06 — — — — 2 — — — Rackla - Tiger Open Pit (29) 881 — 0.09 — — — — 75 — — — Rackla - Osiris Underground (30) — — — — — — — — — — — Rackla - Osiris Open Pit (30) — — — — — — — — — — — Total Measured 6,285 32,898 392 217,490 99,840 — Tons (000) Silver (oz/ton) Gold (oz/ton) Lead% Zinc% Copper% Silver (000 oz) Gold (000 oz) Lead Tons Zinc Tons Copper Tons Indicated Resources: (10) Greens Creek (12,13) 7,619 14.1 0.10 3.0 8.0 — 107,226 760 227,360 607,600 — Lucky Friday (12,14) 845 8.7 — 6.6 2.3 — 7,350 — 55,890 19,700 — Casa Berardi Underground (12,15) 3,522 — 0.17 — — — — 594 — — — Casa Berardi Open Pit (12,15) 126 — 0.03 — — — — 4 — — — Keno Hill (12,16) 1,050 13.7 0.01 1.1 2.1 — 14,431 12 11,610 22,460 — San Sebastian - Oxide (17) 1,233 6.6 0.10 — — — 8,146 121 — — — San Sebastian - Sulfide (17) 1,164 5.3 0.01 2.0 3.1 1.3 6,211 15 23,500 35,900 15,240 Fire Creek (18,19) 197 0.8 0.37 — — — 162 73 — — — Hollister (18,20) 74 1.8 0.56 — — — 134 41 — — — Midas (18,21) 95 5.4 0.40 — — — 514 38 — — — Heva (22) 1,208 — 0.05 — — — — 62 — — — Hosco (22) 32,152 — 0.03 — — — — 1,097 — — — Star (12,23) 834 3.4 — 7.2 8.5 — 2,820 — 60,120 70,450 — Rackla - Tiger Underground (29) 960 — 0.08 — — — — 76 — — — Rackla - Tiger Open Pit (29) 3,116 — 0.10 — — — — 311 — — — Rackla - Osiris Underground (30) 927 — 0.13 — — — — 123 — — — Rackla - Osiris Open Pit (30) 4,843 — 0.12 — — — — 577 — — — Total Indicated 59,965 146,994 3,904 378,480 756,110 15,240 Tons (000) Silver (oz/ton) Gold (oz/ton) Lead % Zinc % Copper % Silver (000 oz) Gold (000 oz) Lead Tons Zinc Tons Copper Tons Measured and Indicated Resources: Greens Creek (12,13) 7,619 14.1 0.10 3.0 8.0 — 107,226 760 227,360 607,600 — Lucky Friday (12,14) 4,627 8.7 — 6.2 2.5 — 40,145 — 273,380 119,540 — Casa Berardi Underground (12,15) 5,007 — 0.18 — — — — 895 — — — Casa Berardi Open Pit (12,15) 210 — 0.03 — — — — 6 — — — Keno Hill (12,16) 1,050 13.7 0.01 1.1 2.1 — 14,431 12 11,610 22,460 — San Sebastian - Oxide (17) 1,233 6.6 0.10 — — — 8,146 121 — — — San Sebastian - Sulfide (17) 1,164 5.3 0.01 2.0 3.1 1.3 6,211 15 23,500 35,900 15,240 Fire Creek (18,19) 197 0.8 0.37 — — — 162 73 — — — Hollister (18,20) 93 2.4 0.56 — — — 223 52 — — — Midas (18,21) 97 5.5 0.40 — — — 529 39 — — — Heva (22) 1,208 — 0.05 — — — — 62 — — — Hosco (22) 32,152 — 0.03 — — — — 1,097 — — — Star (12,23) 834 3.4 — 7.2 8.5 — 2,820 — 60,120 70,450 — Rackla - Tiger Underground (29) 991 — 0.08 — — — — 78 — — — Rackla - Tiger Open Pit (29) 3,997 — 0.10 — — — — 386 — — — Rackla - Osiris Underground (30) 927 — 0.13 — — — — 123 — — — Rackla - Osiris Open Pit (30) 4,843 — 0.12 — — — — 577 — — — 40 Total Measured and Indicated 66,249 179,893 4,296 595,970 855,950 15,240 Tons (000) Silver (oz/ton) Gold (oz/ton) Lead % Zinc % Copper % Silver (000 oz) Gold (000 oz) Lead Tons Zinc Tons Copper Tons Inferred Resources: (11) Greens Creek (12,13) 1,878 13.4 0.08 2.9 6.9 — 25,106 151 54,010 130,120 — Lucky Friday (12,14) 3,811 10.3 — 7.7 3.2 — 39,183 — 293,010 121,710 — Casa Berardi Underground (12,15) 2,076 — 0.20 — — — — 408 — — — Casa Berardi Open Pit (12,15) 577 — 0.10 — — — — 57 — — — Keno Hill (12,16) 1,300 14.8 0.005 1.3 2.7 — 19,270 6 16,450 34,940 — San Sebastian - Oxide (17) 2,163 7.1 0.06 — — — 15,364 134 — — — San Sebastian - Sulfide (17) 326 4.3 0.01 1.7 2.6 0.9 1,388 4 5,680 8,420 3,090 Fire Creek (18,19) 1,197 0.4 0.42 — — — 524 500 — — — Fire Creek - Open Pit (24) 74,584 0.1 0.03 — — — 5,232 2,178 — — — Hollister (18,20) 742 2.7 0.40 — — — 2,037 294 — — — Midas (18,21) 1,480 5.3 0.44 — — — 7,918 657 — — — Heva (22) 1,615 — 0.08 — — — — 136 — — — Hosco (22) 14,460 — 0.03 — — — — 461 — — — Star (12,23) 2,044 3.5 — 6.7 6.7 — 7,129 — 137,040 137,570 — San Juan Silver (12,25) 2,351 15.8 0.01 1.4 1.1 — 37,026 27 47,430 38,020 — Monte Cristo (26) 523 0.2 0.24 — — — 126 101 — — — Rock Creek (12,27) 99,997 1.5 — — — 0.7 148,688 — — — 658,410 Libby Exploration (12,28) 112,185 1.6 — — — 0.7 183,346 — — — 759,420 Rackla - Tiger Underground (29) 153 — 0.07 — — — — 11 — — — Rackla - Tiger Open Pit (29) 30 — 0.05 — — — — 2 — — — Rackla - Osiris Underground (30) 4,398 — 0.12 — — — — 515 — — — Rackla - Osiris Open Pit (30) 5,919 — 0.09 — — — — 529 — — — Total Inferred 333,809 492,337 6,171 553,620 470,780 1,420,920 (8) The term "mineral resources" means a concentration or occurrence of material of economic interest in or on the Earth's crust in such form, grade or quality, and quantity that there are reasonable prospects for economic extraction.
Added
Pension Plan Accounting Assumptions We are required to make a number of assumptions in estimating the future benefit obligations for, and fair value of assets included in, our pension plans, which impact the amount of liability and net periodic pension cost recognized related to our plans.
Removed
A mineral resource is a reasonable estimate of mineralization, taking into account relevant factors such as cut-off grade, likely mining dimensions, location or continuity, that, with the assumed and justifiable technical and economic conditions, is likely to, in whole or in part, become economically extractable. It is not merely an inventory of all mineralization drilled or sampled.
Added
These include assumptions for applicable discount rates, the expected rate of return on plan assets and the rate of future employee compensation increases. See Note 6 of Notes to Consolidated Financial Statements for more information on the accounting for our pension plans and the related assumptions.
Removed
(9) The term "measured resources" means that part of a mineral resource for which quantity and grade or quality are estimated on the basis of conclusive geological evidence and sampling.
Added
New Accounting Pronouncements Accounting Standard Updates that Became Effective in the Current Period In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvement to Income Tax Disclosures, amending income tax disclosure requirements for the effective tax rate reconciliation and income taxes paid.
Removed
The level of geological certainty associated with a measured mineral resource is sufficient to allow a qualified person to apply modifying factors in sufficient detail to support detailed mine planning and final evaluation of the economic viability of the deposit.
Added
The amendments in ASU 2023-09 are effective for fiscal years beginning after December 15, 2024 and are applied prospectively. Early adoption and retrospective application of the amendments are permitted. As the amendments apply to income tax disclosures only, the Company does not expect adoption to have a material impact on our consolidated financial statements and disclosures.
Removed
Because a measured mineral resource has a higher level of confidence than the level of confidence of either an indicated mineral resource or an inferred mineral resource, a measured mineral resource may be converted to a proven mineral reserve or to a probable mineral reserve.
Added
We retrospectively adopted the amended tax disclosures in our financial statements for the year ended December 31, 2025.
Removed
(10) The term "indicated resources" means that part of a mineral resource for which quantity and grade or quality are estimated on the basis of adequate geological evidence and sampling.
Added
Accounting Standard Updates to Become Effective in Future Periods In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income (Topic 220): Expense Disaggregation Disclosures, which includes amendments to require the disclosure of certain specific costs and expenses that are included in a relevant expense caption on the face of the income statement.
Removed
The level of geological certainty associated with an indicated mineral resource is sufficient to allow a qualified person to apply modifying factors in sufficient detail to support mine planning and evaluation of the economic viability of the deposit.
Added
Specific costs and expenses that would be required to be disclosed include: purchases of inventory, employee compensation, depreciation and intangible asset amortization. Additionally, a qualitative description of other items is required, equal to the difference between the relevant expense caption and the separately disclosed specific costs.
Removed
Because an indicated mineral resource has a lower confidence level than a measured mineral resource, an indicated mineral resource may only be converted to a probable mineral reserve. (11) The term "inferred resources" means that part of a mineral resource for which quantity and grade or quality are estimated on the basis of limited geological evidence and sampling.
Added
The amendments in ASU 2024-03 are effective for fiscal years beginning after December 15, 2026, and for interim periods beginning after December 15, 2027, and are applied retrospectively.
Removed
The level of geological uncertainty associated with an inferred mineral resource is too high to apply relevant technical and economic factors likely to influence the prospects of economic extraction in a manner useful for evaluation of economic viability.
Added
The Company is evaluating the impact of the amendments on our consolidated financial statements and disclosures. 94 Guarantor Subsidiaries Presented below are Hecla’s condensed consolidating financial statements as required by Rule 3-10 of Regulation S-X of the Securities Exchange Act of 1934, as amended, resulting from the guarantees by certain of Hecla's subsidiaries of the Senior Notes and IQ Notes (see Note 9 of Notes to Consolidated Financial Statements for more information).
Removed
Because an inferred mineral resource has the lowest level of geological confidence of all mineral resources, which prevents the application of the modifying factors in a manner useful for evaluation of economic viability, an inferred mineral resource may not be considered when assessing the economic viability of a mining project and may not be converted to a mineral reserve.
Added
As of December 31, 2025, the Guarantors consist of the following Hecla 100%-owned subsidiaries: Hecla Limited; Silver Hunter Mining Company; Rio Grande Silver, Inc.; Hecla MC Subsidiary, LLC; Hecla Silver Valley, Inc.; Burke Trading, Inc.; Hecla Montana, Inc.; Revett Silver Company; RC Resources, Inc.; Troy Mine Inc.; Revett Exploration, Inc.; Revett Holdings, Inc.; Mines Management, Inc.; Newhi, Inc.; Montanore Minerals Corp.; Hecla Alaska LLC; Hecla Greens Creek Mining Company; Hecla Admiralty Company; Hecla Juneau Mining Company; Klondex Holdings Inc.; Klondex Gold & Silver Mining Co.; Klondex Midas Holdings Limited; Klondex Aurora Mine Inc.; Klondex Hollister Mine Inc.; Hecla Quebec, Inc.; and Alexco Resource Corp.
Removed
(12) Mineral resources are based on $2,000/oz gold, $24/oz silver, $1.15/lb lead, $1.35/lb zinc and $4.00/lb copper, unless otherwise stated. (13) The resource NSR cut-off values for Greens Creek is $230/ton for all zones; metallurgical recoveries (actual 2024): 79% for silver, 72% for gold, 81% for lead, and 89% for zinc.
Added
We completed the offering of the Senior Notes on February 19, 2020 under our shelf registration statement previously filed with the SEC. The condensed consolidating financial statements below have been prepared from our financial information on the same basis of accounting as the consolidated financial statements set forth elsewhere in this report.
Removed
(14) The resource NSR cut-off value for Lucky Friday is $236/ton; metallurgical recoveries (actual 2024): 94% for silver, 94% for lead, and 86% for zinc.
Added
Investments in the subsidiaries are accounted for under the equity method. Accordingly, the entries necessary to consolidate Hecla, the Guarantors, and our non-guarantor subsidiaries are reflected in the eliminations column. In the course of preparing consolidated financial statements, we eliminate the effects of various transactions conducted between Hecla and its subsidiaries and among the subsidiaries.
Removed
(15) The average resource cut-off grades at Casa Berardi are 0.11 oz/ton gold (3.7 g/tonne) for underground and 0.03 oz/ton gold (1.05 g/tonne) for open pit; metallurgical recovery (actual 2024): 85% for gold; US$/CAD$ exchange rate: 1:1.35.
Added
While valid at an individual subsidiary level, such activities are eliminated in consolidation because, when taken as a whole, they do not represent business activity with third-party customers, vendors, and other parties. Examples of such eliminations include the following: • Investments in subsidiaries .
Removed
(16) The resource NSR cut-off value at Keno Hill is $134.40/ton (CAD$200/tonne); using minimum width of 4.9 feet (1.5m); metallurgical recovery (actual 2024): 97% for silver, 95% for lead, 87% for zinc; US$/CAD$ exchange rate: 1:1.35.
Added
The acquisition of a company results in an investment in debt or equity capital on the records of the parent company and a contribution to debt or equity capital on the records of the subsidiary. Such investments and capital contributions are eliminated in consolidation. • Capital contributions .
Removed
(17) Mineral resources for underground zones at San Sebastian reported at a cut-off grade of $158.8/ton ($175/tonne), open pit resources reported at a cut-off value of $72.6/ton ($80/tonne); Metallurgical recoveries based on grade dependent recovery curves: recoveries at the 41 mean resource grade average 89% for silver and 84% for gold for oxide material and 85% for silver, 83% for gold, 81% for lead, 86% for zinc, and 83% for copper for sulfide material.
Added
Certain of Hecla's subsidiaries do not generate cash flow, either at all or that is sufficient to meet their capital needs, and their cash requirements are routinely met with inter-company advances from their parent companies.
Removed
Resources reported at a minimum mining width of 8.2 feet (2.5m) for Middle Vein, North Vein, and East Francine, 6.5ft (1.98m) for El Toro, El Bronco, and El Tigre, and 4.9 feet (1.5 m) for Hugh Zone and Andrea.
Added
Generally on an annual basis, when not otherwise intended as debt, the boards of directors of such parent companies declare contributions of capital to their subsidiary companies, which increase the parents' investment and the subsidiaries' additional paid-in capital. In consolidation, investments in subsidiaries and related additional paid-in capital are eliminated. • Debt.
Removed
(18) Mineral resources for Fire Creek, Hollister and Midas are reported using a minimum mining width of four feet or the vein true thickness plus two feet, whichever is greater. (19) Fire Creek underground mineral resources are reported at a gold equivalent cut-off grade of 0.22 oz/ton. Metallurgical recoveries: 90% for gold and 70% for silver.
Added
At times, inter-company debt agreements have been established between certain of Hecla's subsidiaries and their parents. The related debt liability and receivable balances, accrued interest expense (if any) and income activity (if any), and payments of principal and accrued interest amounts (if any) by the subsidiary companies to their parents are eliminated in consolidation. • Dividends.
Removed
(20) Hollister mineral resources, including the Hatter Graben are reported at a gold equivalent cut-off grade of 0.21 oz/ton. Metallurgical recoveries: 88% for gold and 66% for silver. (21) Midas mineral resources are reported at a gold equivalent cut-off grade of 0.20 oz/ton. Metallurgical recoveries: 90% for gold and 70% for silver.
Added
Certain of Hecla's subsidiaries which generate cash flow routinely provide cash to their parent companies through inter-company transfers. On at least an annual basis, the boards of directors of such subsidiary companies declare dividends to their parent companies, which reduces the subsidiaries' retained earnings and increases the parents' dividend income. In consolidation, such activity is eliminated. • Deferred taxes .
Removed
Inferred resources for the Sinter Zone are reported undiluted. (22) Mineral resources at Heva and Hosco are based on a gold cut-off grade of 0.011 oz/ton (0.37 g/tonnes) for open pit and 0.117 oz/ton (4 g/tonne) for underground and metallurgical recoveries of 95% for gold at Heva and 81.5% and 87.7% for gold at Hosco depending on zone.
Added
Our ability to realize deferred tax assets and liabilities is considered for two consolidated tax groups of subsidiaries within the United States: The Nevada U.S. Group and the Hecla U.S. Group. Within each tax group, all subsidiaries' estimated future taxable income contributes to the ability of their tax group to realize all such assets and liabilities.
Removed
Heva and Hosco resources are diluted 20% and reported using a 7% mining loss. (23) Indicated and Inferred resources at the Star property are reported using a minimum mining width of 4.3 feet and an NSR cut-off value of $200/ton; Metallurgical recovery: 93% for silver, 93% for lead, and 87% for zinc.
Added
However, when Hecla's subsidiaries are viewed independently, we use the separate return method to assess the realizability of each subsidiary's deferred tax assets and whether a valuation allowance is required against such deferred tax assets.
Removed
(24) Inferred open-pit resources for Fire Creek calculated November 30, 2017, using gold and silver recoveries of 65% and 30% for oxide material and 60% and 25% for mixed oxide-sulfide material. Indicated Resources reclassified as Inferred in 2019.
Added
In some instances, a parent company or subsidiary may possess deferred tax assets whose realization depends on the future taxable income of other subsidiaries on a consolidated-return basis, but would not be considered realizable if such parent or subsidiary filed on a separate stand-alone basis.
Removed
Open pit resources are calculated at $1,400 gold and $19.83 silver and cut-off grade of 0.01 Au Equivalent oz/ton and is inclusive of 10% mining dilution and 5% ore loss. Open pit mineral resources exclusive of underground mineral resources.
Added
In such a situation, a valuation allowance is assessed on that subsidiary's deferred tax assets, with the resulting adjustment reported in the eliminations column of the guarantor and parent's financial statements, as is the case in the financial statements set forth below.
Removed
NI43-101 Technical Report for the Fire Creek Project, Lander County, Nevada; Effective Date March 31, 2018; prepared by Practical Mining LLC, Mark Odell, P.E. for Hecla Mining Company, June 28, 2018.
Added
The separate return method can result in significant eliminations of deferred tax assets and liabilities and related income tax provisions and benefits. Non-current deferred tax asset balances are included in other non-current assets on the consolidating balance sheets and make up a large portion of that item, particularly for the guarantor balances.
Removed
(25) Inferred resources reported at a minimum mining width of 6.0 feet for Bulldog and an NSR cut-off value of $200/ton and 5.0 feet for Equity and North Amethyst veins at an NSR cut-off value of $175/ton; Metallurgical recoveries based on grade dependent recovery curves; metal recoveries at the mean resource grade average 89% silver, 74% lead, and 81% zinc for the Bulldog and a constant 85% gold and 85% silver for North Amethyst and Equity.
Added
Separate financial statements of the Guarantors are not presented because the guarantees by the Guarantors are joint and several and full and unconditional, except for certain customary release provisions, including: (1) the sale or disposal of all or substantially all of the assets of the Guarantor; (2) the sale or other disposition of the capital stock of the Guarantor; (3) the Guarantor is designated as an unrestricted entity in accordance with the applicable provisions of the indenture; (4) Hecla ceases to be a borrower as defined in the indenture; and (5) upon legal or covenant defeasance or satisfaction and discharge of the indenture. 95 Condensed Consolidating Balance Sheets As of December 31, 2025 Parent Guarantors Non-Guarantors Eliminations Consolidated (in thousands) Assets Cash and cash equivalents $ 210,465 $ 18,559 $ 12,534 $ — $ 241,558 Other current assets 56,469 377,360 46,258 (92,301 ) 387,786 Properties, plants, equipment and mine development, net 296 2,832,440 8,091 — 2,840,827 Intercompany receivable (payable) (685,894 ) (367,211 ) 667,695 385,410 — Investments in subsidiaries 2,842,226 (52 ) — (2,842,174 ) — Other non-current assets 672,379 16,345 200,970 (799,220 ) 90,474 Total assets $ 3,095,941 $ 2,877,441 $ 935,548 $ (3,348,285 ) $ 3,560,645 Liabilities and Stockholders' Equity Current liabilities $ 86,837 $ 206,466 $ 46,907 $ (108,646 ) $ 231,564 Long-term debt 261,946 6,681 — — 268,627 Non-current portion of accrued reclamation — 187,007 1,464 — 188,471 Non-current deferred tax liability 131,136 115,879 (590 ) — 246,425 Other non-current liabilities 24,376 207,966 198,983 (397,413 ) 33,912 Stockholders' equity 2,591,646 2,153,442 688,784 (2,842,226 ) 2,591,646 Total liabilities and stockholders' equity $ 3,095,941 $ 2,877,441 $ 935,548 $ (3,348,285 ) $ 3,560,645 Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) Year Ended December 31, 2025 Parent Guarantors Non-Guarantors Eliminations Consolidated (in thousands) Revenues $ (29,620 ) $ 1,458,762 $ — $ (6,123 ) $ 1,423,019 Cost of sales (4,139 ) (640,403 ) — 3,743 (640,799 ) Depreciation, depletion, and amortization — (160,017 ) — — (160,017 ) General and administrative (21,749 ) (33,101 ) (2,776 ) — (57,626 ) Exploration and pre-development (568 ) (25,455 ) (1,722 ) — (27,745 ) Equity in earnings of subsidiaries 403,999 — — (403,999 ) — Other income (expense) (923 ) (76,252 ) 17,142 2,380 (57,653 ) Income (loss) before income and mining taxes 347,000 523,534 12,644 (403,999 ) 479,179 (Provision) benefit from income and mining taxes (25,287 ) (132,857 ) 677 — (157,467 ) Net income (loss) 321,713 390,677 13,321 (403,999 ) 321,712 Preferred stock dividends (552 ) — — — (552 ) Income (loss) applicable to common stockholders 321,161 390,677 13,321 (403,999 ) 321,160 Net income (loss) 321,713 390,677 13,322 (404,000 ) 321,712 Other comprehensive loss 6,932 — — — 6,932 Comprehensive income (loss) $ 328,645 $ 390,677 $ 13,322 $ (404,000 ) $ 328,644 Forward-Looking Statements The foregoing discussion and analysis, as well as certain information contained elsewhere in this report, contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act, and are intended to be covered by the safe harbor created thereby.

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Item 4. Mine Safety Disclosures

Mine Safety Disclosures — required of mining issuers

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Biggest changeThe issuances were as follows: Date Purchaser Number of Shares Value of Shares at Issuance ($) October 16, 2023 Hecla Mining Company Pre-2005 Supplemental Excess Retirement Plan and the Hecla Mining Company Post-2004 Supplemental Excess Retirement Plan ("SERP") 200,000 $0.8 million Hecla Mining Company Retirement Plan Trust (“Hecla Plan”) 45,000 $0.2 million Lucky Friday Pension Plan Trust (“Lucky Friday Plan”) 4,500 $0.0 million October 14, 2022 SERP 1,000,000 $4.2 million May 19, 2022 Hecla Plan 900,000 $4.2 million Lucky Friday Plan 290,000 $1.3 million 61 The following performance graph compares the performance of our common stock during the period beginning December 31, 2019 and ending December 31, 2024 to the S&P 500 and the Philadelphia Gold and Silver Index.
Biggest changeThe issuances were as follows: Date Purchaser Number of Shares Value of Shares at Issuance ($) October 16, 2023 Hecla Mining Company Pre-2005 Supplemental Excess Retirement Plan and the Hecla Mining Company Post-2004 Supplemental Excess Retirement Plan ("SERP") 200,000 $0.8 million Hecla Mining Company Retirement Plan Trust (“Hecla Plan”) 45,000 $0.2 million Lucky Friday Pension Plan Trust (“Lucky Friday Plan”) 4,500 $0.0 million 61 The following performance graph compares the performance of our common stock during the period beginning December 31, 2020 and ending December 31, 2025 to the S&P 500 and the Philadelphia Gold and Silver Index.
We made no purchases of our outstanding common stock during the year ended December 31, 2024.
We made no purchases of our outstanding common stock during the year ended December 31, 2025.
Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Shares of our common stock are traded on the New York Stock Exchange, Inc. under the symbol “HL.” As of February 7, 2025, there were 2,727 stockholders of record of our common stock.
Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Shares of our common stock are traded on the New York Stock Exchange, Inc. under the symbol “HL.” As of February 12, 2026, there were 2,567 stockholders of record of our common stock.
The following table provides information as of December 31, 2024 regarding our compensation plans under which equity securities are authorized for issuance: Number of Securities To Be Issued Upon Exercise of Outstanding Options, Warrants and Rights Weighted-Average Exercise Price of Outstanding Options Number of Securities Remaining Available For Future Issuance Under Equity Compensation Plans Equity Compensation Plans Approved by Security Holders: 2010 Stock Incentive Plan — N/A 10,175,414 Stock Plan for Non-Employee Directors — N/A 2,039,789 Key Employee Deferred Compensation Plan — N/A 1,665,037 Total — N/A 13,880,240 See Note 12 of Notes to Consolidated Financial Statements for information regarding the above plans.
The following table provides information as of December 31, 2025 regarding our compensation plans under which equity securities are authorized for issuance: Number of Securities To Be Issued Upon Exercise of Outstanding Options, Warrants and Rights Weighted-Average Exercise Price of Outstanding Options Number of Securities Remaining Available For Future Issuance Under Equity Compensation Plans Equity Compensation Plans Approved by Security Holders: 2010 Stock Incentive Plan — N/A 7,435,880 Stock Plan for Non-Employee Directors — N/A 1,874,764 Key Employee Deferred Compensation Plan — N/A 1,665,037 Total — N/A 10,975,681 See Note 12 of Notes to Consolidated Financial Statements for information regarding the above plans.
For the years 2023 and 2022, we issued shares of our common stock on multiple occasions to three of our employee benefit plans in order to fund our obligations under those plans.
During the year ended December 31, 2023, we issued shares of our common stock on multiple occasions to three of our employee benefit plans in order to fund our obligations under those plans.
Comparison of 5 Year Cumulative Total Return Among Hecla Mining Company, the S&P 500, and the Philadelphia Gold and Silver Index Date Hecla Mining S&P 500 Philadelphia Gold and Silver Index December 2019 $ 100.00 $ 100.00 $ 100.00 December 2020 191.37 116.02 134.86 December 2021 155.27 147.26 123.88 December 2022 166.05 118.76 114.67 December 2023 144.40 146.25 117.56 December 2024 $ 148.60 $ 181.94 $ 128.30 The stock performance information above is “furnished” and shall not be deemed to be “soliciting material” or subject to Rule 14A of the Exchange Act, shall not be deemed “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that section, and shall not be deemed incorporated by reference in any filing under the Securities Act or the Exchange Act, whether made before or after the date of this report and irrespective of any general incorporation by reference language in any such filing, except to the extent that it specifically incorporates the information by reference.
Comparison of 5 Year Cumulative Total Return Among Hecla Mining Company, the S&P 500, and the Philadelphia Gold and Silver Index Date Hecla Mining S&P 500 Philadelphia Gold and Silver Index December 2020 $ 100.00 $ 100.00 $ 100.00 December 2021 81.04 126.92 91.86 December 2022 86.67 102.36 85.03 December 2023 75.36 126.05 87.17 December 2024 77.56 156.81 95.14 December 2025 303.38 181.84 237.38 The stock performance information above is “furnished” and shall not be deemed to be “soliciting material” or subject to Rule 14A of the Exchange Act, shall not be deemed “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that section, and shall not be deemed incorporated by reference in any filing under the Securities Act or the Exchange Act, whether made before or after the date of this report and irrespective of any general incorporation by reference language in any such filing, except to the extent that it specifically incorporates the information by reference.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

2 edited+0 added−0 removed1 unchanged
Biggest changeManagement’s Discussion and Analysis of Financial Condition and Results of Operations 63 Overview 63 Consolidated Results of Operations 65 Greens Creek 69 Lucky Friday 71 Keno Hill 73 Casa Berardi 75 Corporate Matters 77 Reconciliation of Total Cost of Sales to Cash Cost, Before By-product Credits and Cash Cost, After By-product Credits (non-GAAP) and All-In Sustaining Cost, Before By-product Credits and All-In Sustaining Cost, After By-product Credits (non-GAAP) 78 Financial Liquidity and Capital Resources 87 Contractual Obligations and Contingent Liabilities and Commitments 89 Critical Accounting Estimates 90 i New Accounting Pronouncements 92 Guarantor Subsidiaries 93 Forward-Looking Statements 94 Item 7A.
Biggest changeManagement’s Discussion and Analysis of Financial Condition and Results of Operations 63 Overview 63 Consolidated Results of Operations 66 Greens Creek 70 Lucky Friday 72 Keno Hill 74 Casa Berardi 76 Corporate Matters 78 Reconciliation of Total Cost of Sales to Cash Cost, Before By-product Credits and Cash Cost, After By-product Credits (non-GAAP) and All-In Sustaining Cost, Before By-product Credits and All-In Sustaining Cost, After By-product Credits (non-GAAP) 78 Financial Liquidity and Capital Resources 89 Contractual Obligations and Contingent Liabilities and Commitments 91 Critical Accounting Estimates 92 i New Accounting Pronouncements 94 Guarantor Subsidiaries 95 Forward-Looking Statements 96 Item 7A.
Quantitative and Qualitative Disclosures About Market Risk 95 Provisional Sales 95 Commodity-Price Risk Management 95 Foreign Currency 97 Item 8. Financial Statements and Supplementary Data 98
Quantitative and Qualitative Disclosures About Market Risk 96 Provisional Sales 97 Commodity-Price Risk Management 97 Foreign Currency 99 Item 8. Financial Statements and Supplementary Data 100

Item 6. [Reserved]

Selected Financial Data — reserved (removed by SEC in 2021)

58 edited+59 added−31 removed24 unchanged
Biggest changeConsolidated Results of Operations Total metal sales for the years ended December 31, 2024, 2023 and 2022, and the approximate variances attributed to differences in metals prices, sales volumes and smelter terms, were as follows: (in thousands) Silver Gold Base metals Less: smelter and refining charges Total sales of products 2022 $ 265,054 $ 298,910 $ 206,441 $ (51,973 ) $ 718,432 Variances - 2023 versus 2022: Price 19,682 18,044 (2,897 ) (624 ) 34,205 Volume 17,548 (42,343 ) (14,586 ) 148 (39,233 ) Smelter terms — — — 1,540 1,540 2023 302,284 274,611 188,958 (50,909 ) 714,944 Variances - 2024 versus 2023: Price 76,019 61,309 (2,873 ) 10,743 145,198 Volume 35,677 (17,664 ) 32,321 (2,485 ) 47,849 Smelter terms — — — 1,378 1,378 2024 $ 413,980 $ 318,256 $ 218,406 $ (41,273 ) $ 909,369 Average market and realized metals prices for 2024, 2023 and 2022 were as follows: Average price for the year ended December 31, 2024 2023 2022 Silver Realized price per ounce $ 28.58 $ 23.33 $ 21.53 London PM Fix ($/ounce) 28.24 23.39 21.75 Gold Realized price per ounce 2,403 1,939 1,803 London PM Fix ($/ounce) 2,387 1,943 1,801 Lead Realized price per pound 0.97 1.03 1.01 LME Final Cash Buyer ($/pound) 0.94 0.97 0.98 Zinc Realized price per pound 1.37 1.35 1.41 LME Final Cash Buyer ($/pound) $ 1.26 $ 1.20 $ 1.58 Copper Realized price per pound 4.20 — — LME Final Cash Buyer ($/pound) $ 4.15 NA NA Average realized prices differ from average market prices primarily because concentrate sales are generally recorded as revenues at the time of shipment at forward prices for the estimated month of settlement, which differ from average market prices.
Biggest changeRisk Factors - Our mineral reserve and resource estimates may be imprecise. 65 Consolidated Results of Operations Total metal sales for the years ended December 31, 2025, 2024 and 2023, and the approximate variances attributed to differences in metals prices, sales volumes and smelter terms, were as follows: (in thousands) Silver Gold Base metals Less: smelter and refining charges Total sales of products 2023 $302,284 $274,611 $188,958 $(50,909) $714,944 Variances - 2024 versus 2023: Price 76,019 61,309 (2,873) 10,743 145,198 Volume 35,677 (17,664) 32,321 (2,485) 47,849 Smelter terms — — — 1,378 1,378 2024 $413,980 $318,256 $218,406 $(41,273) $909,369 Variances - 2025 versus 2024: Price 253,909 150,800 (5,131) 17,822 417,400 Volume 21,517 15,034 13,145 208 49,904 Smelter terms — — — 7,228 7,228 2025 $689,406 $484,090 $226,420 $(16,015) $1,383,901 Average market and realized metals prices for 2025, 2024 and 2023 were as follows: Average price for the year ended December 31, 2025 2024 2023 Silver Realized price per ounce $45.25 $28.58 $23.33 London PM Fix ($/ounce) 39.94 28.24 23.39 Gold Realized price per ounce 3,490 2,403 1,939 London PM Fix ($/ounce) 3,435 2,387 1,943 Lead Realized price per pound 0.94 0.97 1.03 LME Final Cash Buyer ($/pound) 0.89 0.94 0.97 Zinc Realized price per pound 1.39 1.37 1.35 LME Final Cash Buyer ($/pound) 1.30 1.26 1.20 Copper Realized price per pound 4.75 4.20 — LME Final Cash Buyer ($/pound) 4.51 $4.15 NA Average realized prices differ from average market prices primarily because concentrate sales are generally recorded as revenues at the time of shipment at forward prices for the estimated month of settlement, which differ from average market prices.
The Company has property and business interruption insurance coverage with an underground sub-limit of $50.0 million, and received the full coverage amount of $50.0 million in 2024. The discussion of Lucky Friday's results below for the years ended December 31, 2024 and 2023 has been impacted by this prior suspension of operations.
The Company had property and business interruption insurance coverage with an underground sub-limit of $50.0 million, and received the full coverage amount of $50.0 million in 2024. The discussion of Lucky Friday's results below for the years ended December 31, 2024 and 2023 has been impacted by this prior suspension of operations.
During the year ended December 31, 2023, $29.8 million of site specific ramp up costs were included within Ramp-up and suspension costs and $4.7 million of site specific exploration costs were included within Exploration and pre-development as reported on our consolidated statements of operations and comprehensive (loss) income.
During the year ended December 31, 2023, $29.8 million of site specific ramp up costs were included within Ramp-up and suspension costs and $4.7 million of site specific exploration costs were included within Exploration and pre-development as reported 74 on our consolidated statements of operations and comprehensive (loss) income.
Our reserve and resource estimates, which underlie (i) our mining and investment plans, (ii) the valuation of a significant portion of our long-term assets and (iii) depreciation, depletion and 64 amortization expense, may change based on economic factors and actual production experience.
Our reserve and resource estimates, which underlie (i) our mining and investment plans, (ii) the valuation of a significant portion of our long-term assets and (iii) depreciation, depletion and amortization expense, may change based on economic factors and actual production experience.
At Greens Creek, gold, zinc and lead are considered to be by-products of our silver production, and the values of those metals therefore offset operating costs within our calculations of Cash Cost and AISC, After By-product Credits, per Silver Ounce.
At Greens Creek, gold, zinc, lead and copper are considered to be by-products of our silver production, and the values of those metals therefore offset operating costs within our calculations of Cash Cost and AISC, After By-product Credits, per Silver Ounce.
We define an operation as being in commercial production upon achievement of the following criteria: • Completion of operational commissioning of each major mine and mill component; • Demonstrated ability to mine and mill consistently and without significant interruption, defined as 75% of historical production levels or mill design capacity over a period of 30 days; • Silver recoveries are at or near expected steady-state production levels; • All major capital expenditures have been completed; and • A significant portion of available funding is directed towards operating activities.
We define an operation as being in commercial production upon achievement of the following criteria: • Completion of operational commissioning of each major mine and mill component; • Demonstrated ability to mine and mill consistently and without significant interruption, defined as 75% of historical production levels or mill design capacity over a period of 90 days; • Silver recoveries are at or near expected steady-state production levels; • All major capital expenditures have been completed; and • A significant portion of available funding is directed towards operating activities.
We strive to achieve excellent mine safety and health performance. We seek to implement this goal by: training employees in safe work practices; establishing, following and improving safety standards; investigating accidents, incidents and losses to avoid recurrence; involving employees in the establishment of safety standards; and participating in the National Mining Association’s CORESafety program.
We strive to achieve excellent safety and health performance everywhere we work. We seek to implement this goal by: training employees in safe work practices; establishing, following and improving safety standards; investigating accidents, incidents and losses to avoid recurrence; involving employees in the establishment of safety standards; and participating in the National Mining Association’s CORESafety program.
For 2024, the benefit of lower production costs due to the closure of the east mine in July 2023, was largely offset by increased depreciation expense from the accelerated amortization of the west underground mine in the first half of 2024. See Item 1A.
For 2024, the benefit of lower production costs due to the closure of the east mine in July 2023, was largely offset by increased depreciation expense from the accelerated amortization of the west underground mine in the first half of 2024. See
The price adjustments related to silver, gold, zinc and lead contained in our concentrate sales were partially offset by gains and losses on forward contracts for those metals for each year (see Note 10 of Notes to Consolidated Financial Statements for more information).
The price adjustments related to silver, gold, zinc and lead contained in our concentrate sales were partially offset by gains and losses on derivative instruments for those metals for each year (see Note 10 of Notes to Consolidated Financial Statements for more information).
The following factors contributed to those differences: • Variances in gross profit (loss) at our operations as illustrated in the table above. See the Greens Creek , Lucky Friday , Keno Hill, and Casa Berardi sections below. • General and administrative costs were $45.4 million, $42.7 million and $43.4 million in 2024, 2023 and 2022 respectively.
The following factors contributed to those differences: • Variances in gross profit (loss) at our operations as illustrated in the table above. See the Greens Creek , Lucky Friday , Keno Hill, and Casa Berardi sections below. • General and administrative costs were $57.6 million, $45.4 million and $42.7 million in 2025, 2024 and 2023 respectively.
Because we consider silver to be a by-product of our gold production at Casa Berardi, the value of silver offsets operating costs within our calculations of Cash Cost, After By-product Credits, per Gold Ounce and AISC, After By-product Credits, per Gold Ounce. 67 For the year ended December 31, 2024, we reported net income applicable to common stockholders of $35.3 million compared to a net loss of $84.8 million and net loss of $37.9 million in 2023 and 2022, respectively.
Because we consider silver to be a by-product of our gold production at Casa Berardi, the value of silver offsets operating costs within our calculations of Cash Cost, After By-product Credits, per Gold Ounce and AISC, After By-product Credits, per Gold Ounce. 68 For the year ended December 31, 2025 and 2024, we reported net income applicable to common stockholders of $321.2 million and $35.3 million, respectively, and a net loss of $84.8 million in 2023.
During the year ended December 31, 2023, Keno Hill recorded sales and total cost of sales of $35.5 million, related to the concentrate produced and sold during the ramp up.
During 2023, Keno Hill recorded sales and total cost of sales of $35.5 million, related to the concentrate produced and sold during ramp up.
Until ore is mined and processed, the volumes and grades of our reserves and resources must be considered as estimates. Our reserves are depleted as we mine. Reserves and resources can also change as a result of changes in economic and operating assumptions. See Item 1A. Risk Factors - Our mineral reserve and resource estimates may be imprecise.
Until ore is mined and processed, the volumes and grades of our reserves and resources must be considered as estimates. Our reserves are depleted as we mine. Reserves and resources can also change as a result of changes in economic and operating assumptions. See Item 1A.
See Item 1A. Risk Factors - Our profitability could be affected by inflation, including the prices of other commodities for a discussion of certain risks related to our operations profitability. Capital additions increased by $4.3 million in 2024 to $47.8 million compared to 2023.
See Item 1A. Risk Factors - Our profitability could be affected by inflation, including the prices of other commodities for a discussion of certain risks related to our operations profitability. Capital additions increased by $6.8 million in 2025 to $54.6 million compared to 2024.
K eno Hill Dollars are in thousands (except per ounce and per ton amounts) Year Ended December 31, 2024 2023 Sales $ 74,962 $ 35,518 Cost of sales and other direct production costs (58,826 ) (31,241 ) Depreciation, depletion and amortization (16,136 ) (4,277 ) Total cost of sales (74,962 ) (35,518 ) Gross profit $ — $ — Tons of ore milled 109,292 56,331 Production: Silver (ounces) 2,773,873 1,502,577 Lead (tons) 2,930 1,225 Zinc (tons) 1,507 1,139 Payable metal quantities sold: Silver (ounces) 2,623,469 1,419,173 Lead (tons) 2,513 848 Zinc (tons) 1,132 1,102 Ore grades: Silver ounces per ton 26.2 27.7 Lead percent 2.8 % 2.3 % Zinc percent 1.6 % 2.5 % Capital additions $ 54,869 $ 44,672 We have not disclosed cost per ounce statistics for the Keno Hill operation as it is in the production ramp-up phase and has not met our definition of commercial production.
K eno Hill Dollars are in thousands (except per ounce and per ton amounts) Year Ended December 31, 2025 2024 2023 Sales $ 145,317 $ 74,962 $ 35,518 Cost of sales and other direct production costs (71,883 ) (58,826 ) (31,241 ) Depreciation, depletion and amortization (19,769 ) (16,136 ) (4,277 ) Total cost of sales (91,652 ) (74,962 ) (35,518 ) Gross profit $ 53,665 $ — $ — Tons of ore milled 108,339 109,292 56,331 Production: Silver (ounces) 3,018,490 2,773,873 1,502,577 Lead (tons) 3,633 2,930 1,225 Zinc (tons) 2,247 1,507 1,139 Payable metal quantities sold: Silver (ounces) 2,925,368 2,623,469 1,419,173 Lead (tons) 3,314 2,513 848 Zinc (tons) 1,696 1,132 1,102 Ore grades: Silver ounces per ton 29.0 26.2 27.7 Lead percent 3.6 % 2.8 % 2.3 % Zinc percent 2.6 % 1.6 % 2.5 % Capital additions $ 58,192 $ 54,869 $ 44,672 We have not disclosed cost per ounce statistics for the Keno Hill operation as it is in the production ramp-up phase and has not met our definition of commercial production.
See the Consolidated Results of Operations section below for a discussion of the factors impacting income applicable to common stockholders for the three years ended December 31, 2024, 2023 and 2022. 63 Key Issues Impacting our Business Our current business strategy is to focus our financial and human resources in the following areas: • operating our properties safely, in an environmentally responsible and cost-effective manner; • strengthen balance sheet to preserve our financial position in varying metals price and operational environments, improve capital allocation framework with a focus on ROIC and increasing free cash flow; • improving and optimizing operations at all sites, which includes incurring costs for new technologies and equipment, and implementing standardized systems and processes; • optimize asset portfolio and identify growth opportunities; • expanding our proven and probable reserves, mineral resources and production capacity at our properties; • advancing the development and ramp up of the Keno Hill mine to profitability; • seeking opportunities to acquire and invest in mining and exploration properties and companies; • advancing permitting of the Libby Exploration project in Montana; • enhance ESG performance and risk management systems; • build high-performing teams and strengthen organizational capabilities; and • maintaining and investing in exploration and pre-development projects in the vicinities of mining districts and projects we believe to be under-explored and under-invested: Greens Creek on Alaska's Admiralty Island located near Juneau; North Idaho's Silver Valley in the historic Coeur d'Alene Mining District; our projects located in two districts in Nevada; our projects in the Keno Hill mining district in the Yukon Territory, Canada; northwestern Montana; and the Republic Mining District in Washington state.
Key Issues Impacting our Business Our current business strategy is to focus our financial and human resources in the following areas: • operating our properties safely, in an environmentally responsible and cost-effective manner; • strengthen our balance sheet to preserve our financial position in varying metals price and operational environments, improve capital allocation framework with a focus on ROIC and increasing free cash flow; • improving and optimizing operations at all sites, which includes incurring costs for new technologies and equipment, and implementing standardized systems and processes; • optimize asset portfolio and identify growth opportunities, including through the pending sale of our Casa Berardi segment and Quebec assets to Orezone; • expanding our proven and probable reserves, mineral resources and production capacity at our properties; 64 • advancing the development and ramp up of the Keno Hill mine to sustained profitability; • seeking opportunities to acquire and invest in mining and exploration properties and companies; • advancing permitting of the Libby Exploration project in Montana; • enhance ESG performance and risk management systems; • build high-performing teams and strengthen organizational capabilities; and • maintaining and investing in exploration and pre-development projects in the vicinities of mining districts and projects we believe to be under-explored and under-invested: Greens Creek on Alaska's Admiralty Island located near Juneau; North Idaho's Silver Valley in the historic Coeur d'Alene Mining District; our projects located in two districts in Nevada; our projects in the Keno Hill mining district in the Yukon Territory, Canada; northwestern Montana; and the Republic Mining District in Washington state.
The costs incurred at San Sebastian and Nevada are holding costs as all operations at these sites were suspended during these periods. • Other operating income was $45.5 million, $1.4 million and an expense of $6.3 million in 2024, 2023 and 2022, respectively.
The costs incurred at San Sebastian and Nevada are holding costs as all operations at these sites were suspended during these periods. • Other operating expense was $0.2 million in 2025, compared to other operating income of $45.5 million and $1.4 million in 2024 and 2023, respectively.
During the year ended December 31, 2024, Keno Hill recorded capital additions of $54.9 million, of which $28.1 million related to mine development, $8.8 million related to the DSTF, $5.9 million related to mine mobile equipment, $3.2 million for camp upgrades and $2.9 million for the surface backfill plant.
During 2024, Capital additions were $54.9 million, of which $28.1 million related to mine development, $8.8 million related to the DSTF, $5.9 million related to mine mobile equipment, $3.2 million for camp upgrades and $2.9 million for the surface backfill plant.
We utilize forward contracts to manage exposure to declines in the prices of (i) silver, gold, zinc and lead contained in our concentrates that have been shipped but have not yet settled, and (ii) from time to time zinc and lead that we forecast for future concentrate shipments. In addition, we have in place a $225.0 million revolving credit agreement.
We utilize forward contracts and options to manage exposure to declines in the prices of (i) silver, gold, zinc and lead contained in our concentrates that have been shipped but have not yet settled, and (ii) from time to time silver, zinc and lead that we forecast for future concentrate shipments.
The following table summarizes the components of Cash Cost, After By-product Credits, per Silver Ounce: Years Ended December 31, 2024 2023 2022 Cash Cost, Before By-product Credits, per Silver Ounce $ 24.48 $ 21.45 23.23 By-product credits per silver ounce (16.68 ) (15.94 ) (18.17 ) Cash Cost, After By-product Credits, per Silver Ounce $ 7.80 $ 5.51 $ 5.06 The following table summarizes the components of AISC, After By-product Credits, per Silver Ounce: Years Ended December 31, 2024 2023 2022 AISC, Before By-product Credits, per Silver Ounce $ 33.18 $ 28.15 $ 31.03 By-product credits per silver ounce (16.68 ) (15.94 ) (18.17 ) AISC, After By-product Credits, per Silver Ounce $ 16.50 $ 12.21 $ 12.86 The increase in Cash Cost and AISC, each After By-product Credits, per Silver Ounce in 2024 compared to 2023 was due to higher production costs, and higher sustaining capital for AISC, partly offset by higher silver production and higher by-product credits.
The following table summarizes the components of Cash Cost, After By-product Credits, per Silver Ounce: Years Ended December 31, 2025 2024 2023 Cash Cost, Before By-product Credits, per Silver Ounce $ 25.00 $ 24.48 21.45 By-product credits per silver ounce (16.34 ) (16.68 ) (15.94 ) Cash Cost, After By-product Credits, per Silver Ounce $ 8.66 $ 7.80 $ 5.51 The following table summarizes the components of AISC, After By-product Credits, per Silver Ounce: Years Ended December 31, 2025 2024 2023 AISC, Before By-product Credits, per Silver Ounce $ 38.32 $ 33.18 $ 28.15 By-product credits per silver ounce (16.34 ) (16.68 ) (15.94 ) AISC, After By-product Credits, per Silver Ounce $ 21.98 $ 16.50 $ 12.21 73 The increase in Cash Cost and AISC, each After By-product Credits, per Silver Ounce in 2025 compared to 2024 was due to higher production costs, and higher sustaining capital for AISC, partly offset by higher silver production.
The components for each period are summarized in the following table (in thousands): Year Ended December 31, 2024 2023 2022 Loss (gain) on derivative contracts $ (5,907 ) $ 3,168 $ 844 Unrealized gain (loss) on investments in equity securities 3,703 (243 ) (5,632 ) Gain on disposition or exchange of investments — — 65 Total fair value adjustments, net $ (2,204 ) $ 2,925 $ (4,723 ) 68 • Net foreign exchange gain of $7.6 million in 2024, compared to a loss of $3.8 million and gain of $7.2 million in 2023 and 2022, respectively, on translation of our monetary assets and liabilities at Casa Berardi, Keno Hill and San Sebastian. • Interest expense of $49.8 million, $43.3 million and $42.8 million in 2024, 2023 and 2022, respectively.
The components for each period are summarized in the following table (in thousands): Year Ended December 31, 2025 2024 2023 (Loss) gain on derivative contracts $ (39,445 ) $ (5,907 ) $ 3,168 Unrealized gain (loss) on investments in equity securities $ 40,914 3,703 (243 ) Gain on disposition or exchange of investments $ 10,986 — — Total fair value adjustments, net $ 12,455 $ (2,204 ) $ 2,925 • Net foreign exchange loss of $5.8 million in 2025, compared to a gain of $7.6 million in 2024 and a loss of $3.8 million in 2023, respectively, on translation of non US our monetary assets and liabilities at Casa Berardi, Keno Hill and San Sebastian. 69 • Interest expense of $41.6 million, $49.8 million and $43.3 million in 2025, 2024 and 2023, respectively.
Realized prices are calculated by dividing gross revenues for each metal (which include the price adjustments and gains and losses on the forward contracts discussed above) by the payable quantities of each metal included in products sold during the period. 65 Total metals production and sales volumes for each period are shown in the following table: Year Ended December 31, 2024 2023 2022 Silver - Ounces produced 16,169,930 14,342,863 14,182,987 Payable ounces sold 14,485,158 12,955,006 12,311,595 Gold - Ounces produced 141,923 151,259 175,807 Payable ounces sold 132,442 141,602 165,818 Lead - Tons produced 52,515 40,347 48,713 Payable tons sold 44,795 35,429 41,423 Zinc - Tons produced 66,308 60,579 64,748 Payable tons sold 47,593 43,050 43,658 Copper - Tons produced 1,874 1,823 1,904 Payable tons sold 50 — — The difference between what we report as “ounces/tons produced” and “payable ounces/tons sold” is attributable to the difference between the quantities of metals contained in our products versus the portion of those metals actually paid for by our customers pursuant to of our sales contract terms.
Realized prices are calculated by dividing gross revenues for each metal (which include the price adjustments and gains and losses on the forward contracts discussed above) by the payable quantities of each metal included in products sold during the period. 66 Total metals production and sales volumes for each period are shown in the following table: Year Ended December 31, 2025 2024 2023 Silver - Ounces produced 17,026,785 16,169,930 14,342,863 Payable ounces sold 15,236,377 14,485,158 12,955,006 Gold - Ounces produced 150,509 141,923 151,259 Payable ounces sold 138,709 132,442 141,602 Lead - Tons produced 56,130 52,515 40,347 Payable tons sold 48,727 44,795 35,429 Zinc - Tons produced 68,558 66,308 60,579 Payable tons sold 47,553 47,593 43,050 Copper - Tons produced 1,804 1,874 1,823 Payable tons sold 337 50 — The difference between what we report as “ounces/tons produced” and “payable ounces/tons sold” is attributable to the difference between the quantities of metals contained in our products versus the portion of those metals actually paid for by our customers pursuant to of our sales contract terms.
Critical Accounting Estimates and Note 10 of Notes to Consolidated Financial Statements . While we believe longer-term global economic and industrial trends could result in continued demand for the metals we produce, prices have been volatile and there can be no assurance that current prices will continue.
While we believe longer-term global economic and industrial trends could result in continued demand for the metals we produce, prices have been volatile and there can be no assurance that current prices will continue.
(2) The calculation of AISC for our consolidated silver properties includes corporate costs for general and administrative expense, sustaining capital and production, and related costs and sustaining capital expenditures for Lucky Friday excluding costs incurred during suspension of production from August 2023 until the resumption of operations on January 9, 2024. 66 (3) Other includes $20.6 million of sales and $20.5 million in total cost of sales for the year ended December 31, 2024; $6.2 million of sales and $6.3 million of total cost of sales for the year ended December 31, 2023; and $0.9 million of sales and $4.5 million of total cost of sales for the year ended December 31, 2022 related to the Company's environmental services business and Nevada.
(2) The calculation of AISC for our consolidated silver properties includes corporate costs for general and administrative expense, sustaining capital and production, and related costs and sustaining capital expenditures for Lucky Friday excluding costs incurred during suspension of production from August 2023 until the resumption of operations on January 9, 2024. 67 (3) Other includes $39.1 million, $20.6 million and $6.2 million of sales for 2025, 2024 and 2023, respectively, and $38.6 million, $20.5 million and $6.3 million for, 2025, 2024 and 2023, respectively, related to ERDC, the Company's environmental services business.
For 2024 and 2023, we recorded net positive price adjustments to provisional settlements of $22.9 million and $18.2 million, respectively, and $20.8 million in net negative price adjustments to provisional settlements in 2022.
For 2025, 2024, and 2023, we recorded net positive price adjustments to provisional settlements of $51.0 million, $22.9 million and $18.2 million, respectively.
Lucky Friday Dollars are in thousands (except per ounce and per ton amounts) Years Ended December 31, 2024 2023 2022 Sales $ 203,154 $ 116,284 $ 147,814 Cost of sales and other direct production costs (103,436 ) (59,860 ) (82,894 ) Depreciation, depletion and amortization (41,049 ) (24,325 ) (33,704 ) Total cost of sales (144,485 ) (84,185 ) (116,598 ) Gross profit $ 58,669 $ 32,099 $ 31,216 Tons of ore milled 406,541 231,129 356,907 Production: Silver (ounces) 4,890,949 3,086,119 4,412,764 Lead (tons) 31,265 19,543 29,233 Zinc (tons) 13,513 7,944 12,436 Payable metal quantities sold: Silver (ounces) 4,506,632 3,020,116 4,039,435 Lead (tons) 28,577 19,079 26,660 Zinc (tons) 9,735 6,160 8,802 Ore grades: Silver ounces per ton 12.70 14.00 13.00 Lead percent 8.20 8.90 8.70 Zinc percent 3.90 4.10 3.90 Total production cost per ton $ 245.19 $ 218.45 $ 223.55 Cash Cost, After By-product Credits, per Silver Ounce (1) $ 7.80 $ 5.51 $ 5.06 AISC, After By-product Credits, per Silver Ounce (1) $ 16.50 $ 12.21 $ 12.86 Capital additions $ 49,592 $ 65,337 $ 50,992 (1) A reconciliation of these non-GAAP measures to total cost of sales, the most comparable GAAP measure, can be found below in Reconciliation of Total Cost of Sales (GAAP) to Cash Cost, Before By-product Credits and Cash Cost, After By-product Credits (non-GAAP) and All-In Sustaining Cost, Before By-product Credits and All-In Sustaining Cost, After By-product Credits (non-GAAP) .
Lucky Friday Dollars are in thousands (except per ounce and per ton amounts) Years Ended December 31, 2025 2024 2023 Sales $ 306,640 $ 203,154 $ 116,284 Cost of sales and other direct production costs (122,635 ) (103,436 ) (59,860 ) Depreciation, depletion and amortization (51,055 ) (41,049 ) (24,325 ) Total cost of sales (173,690 ) (144,485 ) (84,185 ) Gross profit $ 132,950 $ 58,669 $ 32,099 Tons of ore milled 427,048 406,541 231,129 Production: Silver (ounces) 5,260,686 4,890,949 3,086,119 Lead (tons) 34,284 31,265 19,543 Zinc (tons) 14,924 13,513 7,944 Payable metal quantities sold: Silver (ounces) 4,925,162 4,506,632 3,020,116 Lead (tons) 31,828 28,577 19,079 Zinc (tons) 11,596 9,735 6,160 Ore grades: Silver ounces per ton 13.0 12.7 14.0 Lead percent 8.5 8.2 8.9 Zinc percent 4.1 3.9 4.1 Total production cost per ton $ 272.09 $ 245.19 $ 218.45 Cash Cost, After By-product Credits, per Silver Ounce (1) $ 8.66 $ 7.80 $ 5.51 AISC, After By-product Credits, per Silver Ounce (1) $ 21.98 $ 16.50 $ 12.21 Capital additions $ 72,933 $ 49,592 $ 65,337 (1) A reconciliation of these non-GAAP measures to total cost of sales, the most comparable GAAP measure, can be found below in Reconciliation of Total Cost of Sales (GAAP) to Cash Cost, Before By-product Credits and Cash Cost, After By-product Credits (non-GAAP) and All-In Sustaining Cost, Before By-product Credits and All-In Sustaining Cost, After By-product Credits (non-GAAP) .
Gross profit increased by $28.8 million to $153.4 million in 2024 from $124.6 million in 2023, due to higher realized prices for all metals sold other than lead, partly offset by lower sales volumes for all metals, except zinc, and higher production costs which primarily consist of higher labor and contractor costs and higher equipment maintenance. See Item 1A.
Risk Factors - Our profitability could be affected by inflation, including the prices of other commodities for a discussion of certain risks related to our operations profitability. 70 Gross profit increased by $28.8 million to $153.4 million in 2024 from $124.6 million in 2023, due to higher realized prices for all metals sold other than lead, partly offset by lower sales volumes for all metals, except zinc, and higher production costs which primarily consist of higher labor and contractor costs and higher equipment maintenance.
Risk Factors - Our profitability could be affected by inflation, including the prices of other commodities for a discussion of certain risks related to our operation's profitability. Gross loss increased by $29.9 million to $43.7 million in 2023 compared to $13.8 million in 2022 as higher average realized gold prices did not offset the impact of lower gold production.
Risk Factors - Our profitability could be affected by inflation, including the prices of other commodities for a discussion of certain risks related to our operation's profitability. Gross loss decreased by $29.7 million to $13.9 million in 2024 compared to $43.7 million in 2023.
Sales, total cost of sales, gross profit (loss), Cash Cost, After By-product Credits, per Ounce (“Cash Cost”) (non-GAAP) and AISC (non-GAAP) at our operating units for 2024, 2023 and 2022 were as follows (in thousands, except for Cash Cost and AISC): Silver Gold Greens Creek Lucky Friday Keno Hill Total Silver (2) Casa Berardi Other (3) Total Gold 2024: Sales $ 421,574 $ 203,154 $ 74,962 $ 699,690 $ 209,679 $ 20,556 $ 230,235 Total cost of sales (268,127 ) (144,485 ) (74,962 ) (487,574 ) (223,614 ) (20,527 ) (244,141 ) Gross profit (loss) $ 153,447 $ 58,669 $ — $ 212,116 $ (13,935 ) $ 29 $ (13,906 ) Cash Cost, After By-product Credits, per Silver or Gold Ounce (1) $ (0.05 ) $ 7.80 $ 2.72 $ 1,762 $ 1,762 AISC, After By-product Credits, per Silver or Gold Ounce (1) $ 5.65 $ 16.50 $ 13.06 $ 1,990 $ 1,990 2023: Sales $ 384,504 $ 116,284 $ 35,518 $ 536,306 $ 177,678 $ 6,243 $ 183,921 Total cost of sales (259,895 ) (84,185 ) (35,518 ) (379,598 ) (221,341 ) (6,339 ) (227,680 ) Gross profit (loss) $ 124,609 $ 32,099 $ — $ 156,708 $ (43,663 ) $ (96 ) $ (43,759 ) Cash Cost, After By-product Credits, per Silver or Gold Ounce (1) $ 2.53 $ 5.51 $ 3.23 $ 1,652 $ 1,652 AISC, After By-product Credits, per Silver or Gold Ounce (1) $ 7.14 $ 12.21 11.76 $ 2,048 $ 2,048 2022: Sales $ 335,062 $ 147,814 $ — $ 482,876 $ 235,136 $ 893 $ 236,029 Total cost of sales (232,718 ) (116,598 ) — (349,316 ) (248,898 ) (4,535 ) (253,433 ) Gross profit (loss) $ 102,344 $ 31,216 $ — $ 133,560 $ (13,762 ) $ (3,642 ) $ (17,404 ) Cash Cost, After By-product Credits, per Silver or Gold Ounce (1) $ 0.70 $ 5.06 $ 2.06 $ 1,478 $ 1,478 AISC, After By-product Credits, per Silver or Gold Ounce (1) $ 5.17 $ 12.86 $ 10.66 $ 1,773 $ 1,773 (1) A reconciliation of these non-GAAP measures to total cost of sales, the most comparable GAAP measure, can be found below in Reconciliation of Total Cost of Sales (GAAP) to Cash Cost, Before By-product Credits and Cash Cost, After By-product Credits (non-GAAP) and All-In Sustaining Cost, Before By-product Credits and All-In Sustaining Cost, After By-product Credits (non-GAAP) .
Sales, total cost of sales, gross profit (loss), Cash Cost, After By-product Credits, per Ounce (“Cash Cost”) (non-GAAP) and AISC (non-GAAP) at our operating units for 2025, 2024 and 2023 were as follows (in thousands, except for Cash Cost and AISC): Silver Gold Greens Creek Lucky Friday Keno Hill Total Silver (2) Casa Berardi Other (3) Total Gold and other 2025: Sales $ 612,827 $ 306,640 $ 145,317 $ 1,064,784 $ 319,117 $ 39,118 $ 358,235 Total cost of sales (290,180 ) (173,690 ) (91,652 ) (555,522 ) (206,720 ) (38,574 ) (245,294 ) Gross profit $ 322,647 $ 132,950 $ 53,665 $ 509,262 $ 112,397 $ 544 $ 112,941 Cash Cost, After By-product Credits, per Silver or Gold Ounce (1) $ (8.02 ) $ 8.66 $ (1.75 ) $ 1,851 $ 1,851 AISC, After By-product Credits, per Silver or Gold Ounce (1) $ (2.36 ) $ 21.98 $ 11.28 $ 2,029 $ 2,029 2024: Sales $ 421,574 $ 203,154 $ 74,962 $ 699,690 $ 209,679 $ 20,556 $ 230,235 Total cost of sales (268,127 ) (144,485 ) (74,962 ) (487,574 ) (223,614 ) (20,527 ) (244,141 ) Gross profit (loss) $ 153,447 $ 58,669 $ — $ 212,116 $ (13,935 ) $ 29 $ (13,906 ) Cash Cost, After By-product Credits, per Silver or Gold Ounce (1) $ (0.05 ) $ 7.80 $ 2.72 $ 1,762 $ 1,762 AISC, After By-product Credits, per Silver or Gold Ounce (1) $ 5.65 $ 16.50 13.06 $ 1,990 $ 1,990 2023: Sales $ 384,504 $ 116,284 $ 35,518 $ 536,306 $ 177,678 $ 6,243 $ 183,921 Total cost of sales (259,895 ) (84,185 ) (35,518 ) (379,598 ) (221,341 ) (6,339 ) (227,680 ) Gross profit (loss) $ 124,609 $ 32,099 $ — $ 156,708 $ (43,663 ) $ (96 ) $ (43,759 ) Cash Cost, After By-product Credits, per Silver or Gold Ounce (1) $ 2.53 $ 5.51 $ 3.23 $ 1,652 $ 1,652 AISC, After By-product Credits, per Silver or Gold Ounce (1) $ 7.14 $ 12.21 $ 11.76 $ 2,048 $ 2,048 (1) A reconciliation of these non-GAAP measures to total cost of sales, the most comparable GAAP measure, can be found below in Reconciliation of Total Cost of Sales (GAAP) to Cash Cost, Before By-product Credits and Cash Cost, After By-product Credits (non-GAAP) and All-In Sustaining Cost, Before By-product Credits and All-In Sustaining Cost, After By-product Credits (non-GAAP) .
Greens Creek Dollars are in thousands (except per ounce and per ton amounts) Years Ended December 31, 2024 2023 2022 Sales $ 421,574 $ 384,504 $ 335,062 Cost of sales and other direct production costs (214,677 ) (205,900 ) (183,807 ) Depreciation, depletion and amortization (53,450 ) (53,995 ) (48,911 ) Total cost of sales (268,127 ) (259,895 ) (232,718 ) Gross Profit $ 153,447 $ 124,609 $ 102,344 Tons of ore milled 895,318 914,796 881,445 Production: Silver (ounces) 8,480,877 9,731,752 9,741,935 Gold (ounces) 55,275 60,896 48,216 Lead (tons) 18,320 19,578 19,480 Zinc (tons) 51,288 51,496 52,312 Copper (tons) 1,874 1,823 1,904 Payable metal quantities sold: Silver (ounces) 7,331,502 8,493,040 8,234,010 Gold (ounces) 45,201 49,790 35,508 Lead (tons) 13,706 15,247 14,762 Zinc (tons) 36,725 36,042 34,856 Copper (tons) 50 — — Ore grades: Silver ounces per ton 11.99 13.31 13.64 Gold ounces per ton 0.09 0.09 0.08 Lead percent 2.52 2.60 2.68 Zinc percent 6.41 6.35 6.69 Copper percent 0.27 0.26 0.28 Total production cost per ton $ 216.15 $ 204.20 $ 196.73 Cash Cost, After By-product Credits, per Silver Ounce (1) $ (0.05 ) $ 2.53 $ 0.70 AISC, After By-Product Credits, per Silver Ounce (1) $ 5.65 $ 7.14 $ 5.17 Capital additions $ 47,795 $ 43,542 $ 36,898 (1) A reconciliation of these non-GAAP measures to total cost of sales, the most comparable GAAP measure, can be found below in Reconciliation of Total Cost of Sales (GAAP) to Cash Cost, Before By-product Credits and Cash Cost, After By-product Credits (non-GAAP) and All-In Sustaining Cost, Before By-product Credits and All-In Sustaining Cost, After By-product Credits (non-GAAP) .
Greens Creek Dollars are in thousands (except per ounce and per ton amounts) Years Ended December 31, 2025 2024 2023 Sales $ 612,827 $ 421,574 $ 384,504 Cost of sales and other direct production costs (234,221 ) (214,677 ) (205,900 ) Depreciation, depletion and amortization (55,959 ) (53,450 ) (53,995 ) Total cost of sales (290,180 ) (268,127 ) (259,895 ) Gross profit $ 322,647 $ 153,447 $ 124,609 Tons of ore milled 871,659 895,318 914,796 Production: Silver (ounces) 8,724,996 8,480,877 9,731,752 Gold (ounces) 59,349 55,275 60,896 Lead (tons) 18,213 18,320 19,578 Zinc (tons) 51,387 51,288 51,496 Copper (tons) 1,804 1,874 1,823 Payable metal quantities sold: Silver (ounces) 7,375,295 7,331,502 8,493,040 Gold (ounces) 46,873 45,201 49,790 Lead (tons) 13,585 13,706 15,247 Zinc (tons) 35,957 36,725 36,042 Copper (tons) 337 50 — Ore grades: Silver ounces per ton 12.6 12.0 13.3 Gold ounces per ton 0.092 0.086 0.089 Lead percent 2.5 2.5 2.6 Zinc percent 6.6 6.4 6.4 Copper percent 0.3 0.3 0.3 Total production cost per ton $ 249.77 $ 216.15 $ 204.20 Cash Cost, After By-product Credits, per Silver Ounce (1) $ (8.02 ) $ (0.05 ) $ 2.53 AISC, After By-Product Credits, per Silver Ounce (1) $ (2.36 ) $ 5.65 $ 7.14 Capital additions $ 54,617 $ 47,795 $ 43,542 (1) A reconciliation of these non-GAAP measures to total cost of sales, the most comparable GAAP measure, can be found below in Reconciliation of Total Cost of Sales (GAAP) to Cash Cost, Before By-product Credits and Cash Cost, After By-product Credits (non-GAAP) and All-In Sustaining Cost, Before By-product Credits and All-In Sustaining Cost, After By-product Credits (non-GAAP) .
Over view Hecla Mining Company stands as North America's leading silver producer, with a rich heritage dating back to 1891. Our operations at Greens Creek and Lucky Friday, produced 45% of 2023 U.S. silver production, complemented by significant gold production from Casa Berardi and Greens Creek. We began ramp-up of the Keno Hill mill during the second quarter of 2023.
Over view Hecla Mining Company stands as the premier silver producer, with a rich heritage dating back to 1891. Our operations at Greens Creek, Lucky Friday and Keno Hill combined to produce 37% of 2024 silver production in the U.S. and Canada, complemented by significant gold production from Casa Berardi and Greens Creek.
Risk Factors and in Note 16 of Notes to Consolidated Financial Statements, it is possible that our estimate of these liabilities may change in the future, affecting our strategic plans.
Another challenge for us is the risk associated with environmental litigation and ongoing reclamation activities. As described in Item 1A. Risk Factors and in Note 16 of Notes to Consolidated Financial Statements, it is possible that our estimate of these liabilities may change in the future, affecting our strategic plans.
The increase in Cash Cost and AISC, each After By-product Credits, per Silver Ounce in 2023 compared to 2022 was primarily due to higher production costs related to labor, maintenance and consumables and lower by-product credits.
The increase in Cash Cost and AISC, each After By-product Credits, per Silver Ounce in 2024 compared to 2023 was due to higher production costs, and higher sustaining capital for AISC, partly offset by higher silver production and higher by-product credits.
Determination of when these criteria have been met requires the use of judgment, and our definition of commercial production may differ from that of other mining companies.
Currently we meet only one of the above criteria - silver recoveries are at expected steady-state production levels. Determination of when these criteria have been met requires the use of judgment, and our definition of commercial production may differ from that of other mining companies.
During the year ended December 31, 2023, Keno Hill recorded capital additions of $44.7 million, of which $29.6 million related to mine development and $11.3 million to mobile equipment purchases, crusher modifications and camp upgrades. 74 Casa Berardi Dollars are in thousands (except per ounce and per ton amounts) Years Ended December 31, 2024 2023 2022 Sales $ 209,679 $ 177,678 $ 235,136 Cost of sales and other direct production costs (150,779 ) (155,304 ) (187,936 ) Depreciation, depletion and amortization (72,835 ) (66,037 ) (60,962 ) Total cost of sales (223,614 ) (221,341 ) (248,898 ) Gross loss $ (13,935 ) $ (43,663 ) $ (13,762 ) Tons of ore milled 1,523,420 1,446,488 1,588,739 Production: Gold (ounces) 86,648 90,363 127,590 Silver (ounces) 24,231 22,415 28,289 Payable metal quantities sold: Gold (ounces) 87,242 91,268 130,245 Silver (ounces) 23,554 22,566 31,788 Ore grades: Gold ounces per ton 0.07 0.07 0.09 Silver ounces per ton 0.02 0.02 0.02 Total production cost per ton $ 100.58 $ 104.75 $ 117.89 Cash Cost, After By-product Credits, per Gold Ounce (1) $ 1,762 $ 1,652 $ 1,478 AISC, After By-product Credits, per Gold Ounce (1) $ 1,990 $ 2,048 $ 1,773 Capital additions $ 60,704 $ 70,056 $ 39,667 (1) A reconciliation of these non-GAAP measures to total cost of sales, the most comparable GAAP measure, can be found below in Reconciliation of Total Cost of Sales (GAAP) to Cash Cost, Before By-product Credits and Cash Cost, After By-product Credits (non-GAAP) and All-In Sustaining Cost, Before By-product Credits and All-In Sustaining Cost, After By-product Credits (non-GAAP) .
Casa Berardi Dollars are in thousands (except per ounce and per ton amounts) Years Ended December 31, 2025 2024 2023 Sales $ 319,117 $ 209,679 $ 177,678 Cost of sales and other direct production costs (173,486 ) (150,779 ) (155,304 ) Depreciation, depletion and amortization (33,234 ) (72,835 ) (66,037 ) Total cost of sales (206,720 ) (223,614 ) (221,341 ) Gross profit (loss) $ 112,397 $ (13,935 ) $ (43,663 ) Tons of ore milled 1,533,800 1,523,420 1,446,488 Production: Gold (ounces) 91,160 86,648 90,363 Silver (ounces) 22,613 24,231 22,415 Payable metal quantities sold: Gold (ounces) 91,836 87,242 91,268 Silver (ounces) 22,456 23,554 22,566 Ore grades: Gold ounces per ton 0.068 0.067 0.073 Silver ounces per ton 0.02 0.02 0.02 Total production cost per ton $ 110.46 $ 100.58 $ 104.75 Cash Cost, After By-product Credits, per Gold Ounce (1) $ 1,851 $ 1,762 $ 1,652 AISC, After By-product Credits, per Gold Ounce (1) $ 2,029 $ 1,990 $ 2,048 Capital additions $ 61,514 $ 60,704 $ 70,056 (1) A reconciliation of these non-GAAP measures to total cost of sales, the most comparable GAAP measure, can be found below in Reconciliation of Total Cost of Sales (GAAP) to Cash Cost, Before By-product Credits and Cash Cost, After By-product Credits (non-GAAP) and All-In Sustaining Cost, Before By-product Credits and All-In Sustaining Cost, After By-product Credits (non-GAAP) .
There can be no assurance that our practices will mitigate or eliminate all safety risks. Achieving and maintaining compliance with regulations will be challenging and may increase our operating costs. See Item 1A. Risk Factors - We face substantial governmental regulation, including the Mine Safety and Health Act, various environmental laws and regulations and the 1872 Mining Law.
There can be no assurance that our practices will mitigate or eliminate all safety risks. Achieving and maintaining compliance with regulations will be challenging and may increase our operating costs. See Item 1A.
Our strategic positioning in the stable jurisdictions of U.S. and Canada provides us with distinct operational advantages and reduced political risk compared to our global peers. Our operational and strategic framework centers on three core pillars: 1. Sustainable production growth 2. Resource development 3.
We began ramp-up of the Keno Hill mill during the second quarter of 2023. Our strategic positioning in the stable jurisdictions of U.S. and Canada provides us with distinct operational advantages and reduced political risk compared to our global peers. Our operational and strategic framework centers on four core pillars: 1.
During the year ended December 31, 2024, $26.8 million of site specific ramp up costs were included within Ramp-up and suspension costs and $7.8 million of site specific exploration costs were included within Exploration and pre-development as reported on our consolidated statements of operations and comprehensive income (loss).
For the year ended December 31, 2024, $2.2 million of site specific suspension costs were included within Ramp-up and suspension costs on our consolidated statements of operations and comprehensive income (loss), compared to $25.5 million in 2023.
The increase in 2024 of $2.7 million reflects non-recurring costs associated with the former CEO's retirement. The decrease in 2023 of $0.7 million reflects lower incentive compensation accruals compared to 2022 partially offset by annual compensation adjustments effective July 1. • Exploration and pre-development expense was $27.3 million, $32.5 million and $46.0 million in 2024, 2023 and 2022, respectively.
The increase in 2024 of $2.7 million reflects non-recurring costs associated with the former CEO's retirement. • Exploration and pre-development expense was $27.7 million, $27.3 million and $32.5 million in 2025, 2024 and 2023, respectively.
The chart below illustrates the factors contributing to the variances in Cash Cost, After By-product Credits, Per Silver Ounce for 2024 compared to 2023 and 2022: The following table summarizes the components of Cash Cost, After By-product Credits, per Silver Ounce: Years Ended December 31, 2024 2023 2022 Cash Cost, Before By-product Credits, per Silver Ounce $ 27.19 $ 24.85 $ 23.20 By-product credits per silver ounce (27.24 ) (22.32 ) (22.50 ) Cash Cost, After By-product Credits, per Silver Ounce $ (0.05 ) $ 2.53 $ 0.70 The following table summarizes the components of AISC, After By-product Credits, per Silver Ounce: Years Ended December 31, 2024 2023 2022 AISC, Before By-product Credits, per Silver Ounce $ 32.89 $ 29.46 $ 27.67 By-product credits per silver ounce (27.24 ) (22.32 ) (22.50 ) AISC, After By-product Credits, per Silver Ounce $ 5.65 $ 7.14 $ 5.17 The decrease in Cash Cost, After By-product Credits, per Silver Ounce in 2024 compared to 2023 was primarily due to higher by-product credits, primarily due to higher realized gold prices, partly offset by lower silver production due to 7 days of unplanned maintenance on the Semi-Autogenous Grinding ("SAG") mill variable frequency drive and lower grade material mined and higher production costs primarily related to higher labor and contractor costs driven by inflation and higher equipment maintenance costs . 70 AISC, After By-product Credits, decreased due to lower cash costs per ounce, partly offset by higher sustaining capital expenditures in 2024.
The chart below illustrates the factors contributing to the variances in Cash Cost, After By-product Credits, Per Silver Ounce for 2025 compared to 2024 and 2023: The following table summarizes the components of Cash Cost, After By-product Credits, per Silver Ounce: Years Ended December 31, 2025 2024 2023 Cash Cost, Before By-product Credits, per Silver Ounce $ 26.64 $ 27.19 $ 24.85 By-product credits per silver ounce (34.66 ) (27.24 ) (22.32 ) Cash Cost, After By-product Credits, per Silver Ounce $ (8.02 ) $ (0.05 ) $ 2.53 The following table summarizes the components of AISC, After By-product Credits, per Silver Ounce: Years Ended December 31, 2025 2024 2023 AISC, Before By-product Credits, per Silver Ounce $ 32.30 $ 32.89 $ 29.46 By-product credits per silver ounce (34.66 ) (27.24 ) (22.32 ) AISC, After By-product Credits, per Silver Ounce $ (2.36 ) $ 5.65 $ 7.14 The decrease in Cash Cost, After By-product Credits and AISC, After By-product Credits per Silver Ounce in 2025 compared to 2024 was primarily due to higher by-product credits, primarily due to higher realized gold prices and higher silver production.
A number of key factors may impact the execution of our strategy, including regulatory issues, metals prices and inflationary pressures on input costs. Metals prices can be very volatile and are influenced by a number of factors beyond our control (except on a limited basis through the use of derivative contracts). See Item 7.
Metals prices can be very volatile and are influenced by a number of factors beyond our control (except on a limited basis through the use of derivative contracts). See Item 7. Critical Accounting Estimates and Note 10 of Notes to Consolidated Financial Statements .
The average throughput during the year ended December 31, 2024, was 299 tons per day (the mine is currently permitted to a maximum of an average of 440 tons per day), with silver grades milled of 26.2 ounces per ton. Mill throughput was negatively impacted by events beginning in late August, 2024, and continuing into 2025 as described below.
The average throughput during the year ended December 31, 2025, was 297 tons per day (the mine is currently permitted to a maximum of an average of 440 tons per day), with silver grades milled of 29.0 ounces per ton.
The increase in Cash Cost, After By-product Credits, per Silver Ounce in 2023 compared to 2022 was due to lower by-product credits 72 in 2023. The decrease in AISC, After By-product Credits, per Silver Ounce in 2023 compared to 2022 was due lower sustaining capital expenditures.
AISC, After By-product Credits, decreased due to lower cash costs per ounce, partly offset by higher sustaining capital expenditures in 2024 compared to 2023.
From commencement of production until late August, 2024, ore production and mill throughput generally increased as planned, leading to increased levels of production (though still not reaching profitability or the permitted capacity at the mill).
C apital additions were $44.7 million, of which $29.6 million related to mine development and $11.3 million to mobile equipment purchases, crusher modifications and camp upgrades. From commencement of production until late August, 2024, ore production and mill throughput generally increased as planned, leading to increased levels of production (though still not reaching the permitted capacity at the mill).
Capital expenditures decreased as the prior year included expenditures for the installation of a service hoist, coarse ore bunker and shaft and related infrastructure. The chart below illustrates the factors contributing to the variances in Cash Cost, After By-product Credits, Per Silver Ounce for 2024, 2023 and 2022.
The chart below illustrates the factors contributing to the variances in Cash Cost, After By-product Credits, Per Silver Ounce for 2025, 2024 and 2023.
The interest in 2024, 2023 and 2022 was primarily related to our Senior Notes with 2024 also including interest expense of $9.3 million on amounts drawn on our revolving credit facility. • Income and mining tax provision of $30.4 million in 2024, compared to a provision of $1.2 million and benefit of $7.6 million in 2023 and 2022, respectively.
In 2024, interest expense also included interest of $9.3 million on amounts drawn on our revolving credit facility. • Income and mining tax provision of $157.5 million, $30.4 million and $1.2 million in 2025, 2024, and 2023, respectively. Income and mining tax provision increased in 2025 due to higher taxable income generated by our US and Quebec operations.
Our average realized prices for silver, gold and zinc increased in 2024 compared to 2023 while lead decreased. Our average realized silver, gold and lead increased while zinc decreased in 2023 compared to 2022. See the Consolidated Results of Operations section below for information on our average realized metals prices for 2024, 2023 and 2022.
See the Consolidated Results of Operations section below for information on our average realized metals prices for 2025, 2024 and 2023. Lead and zinc represent important by-products at all our silver operations, and gold is also a significant by-product at Greens Creek. Copper is a minor by-product credit at Greens Creek.
Significant components of the 2024 capital additions were $15.1 million on mobile equipment, a $5.3 million increase over 2023, $16.9 million on mine and primary ore access development, $6.5 million of definition drilling, and $3.8 million towards a concentrator .
Significant components of the 2025 capital additions were $17.9 million on mine and primary ore access development, $14.0 million on mine equipment, $7.7 million on surface equipment and infrastructure, $5.8 million on mill improvements and $4.0 million of definition drilling .
The costs incurred at Lucky Friday in 2024 ($2.2 million) were to ramp it up to full production, while in 2023, $25.5 million related to the suspension of production following the underground fire that occurred in the #2 shaft. $2.2 million was incurred at Casa Berardi due its operations being suspended for 20 days in June, 2023 due to Quebec wildfires.
Operations at Lucky Friday were suspended from August 2023 to January 9, 2024, due to a fire in the secondary egress. Costs incurred during this period amounted to $2.2 million and $25.5 million during 2024 and 2023, respectively. Casa Berardi incurred $2.2 million as operations were suspended for 20 days in June, 2023, due to Quebec wildfires.
The income in 2024 is primarily related to the Lucky Friday business interruption insurance proceeds of $50 million related to the aforementioned fire.
Within 2025 other operating expense of $0.2 million are $5.5 million of insurance proceeds relating to Casa Berardi. The income in 2024 is primarily related to the Lucky Friday business interruption insurance proceeds of $50 million related to the aforementioned fire. • In 2024 we recognized $14.6 million in write down of property, plant and equipment.
Of this amount, $13.9 million related to the Lucky Friday remote vein miner machine for which (i) we no longer had a use following the success of the UCB mining method at Lucky Friday, (ii) we had been unsuccessful in locating a buyer, and (iii) the vendor advised us during the period that it would discontinue support for the program. • Ramp-up and suspension costs for the years ended December 31, 2024, 2023 and 2022 are summarized in the table below (in thousands) Year Ended December 31, 2024 2023 2022 Keno Hill $ 26,754 $ 29,793 $ 2,254 Lucky Friday 2,207 25,548 — Nevada 12,304 16,549 19,743 Casa Berardi — 2,228 — San Sebastian 2,042 2,134 2,117 Total ramp-up and suspension costs $ 43,307 $ 76,252 $ 24,114 The costs incurred at Keno Hill during all periods were to ramp it up to full production.
Of this amount, $13.9 million related to the Lucky Friday remote vein miner machine for which (i) we no longer had a use following the success of the UCB mining method at Lucky Friday, (ii) we had been unsuccessful in locating a buyer, and (iii) the vendor advised us during the period that it would discontinue support for the program. • Fair value adjustments, net resulted in a gain of $12.5 million, loss of $2.2 million, and a gain of $2.9 million in 2025, 2024 and 2023, respectively.
That failure, combined with cold temperatures in the Yukon (and the resulting increase in demand for power), has caused Yukon Energy to throttle power to Keno Hill, which does not have sufficient backup generation capacity to fully 73 power the mine and the mill.
That failure and Yukon Energy's resulting focus on line maintenance, combined with cold temperatures in the Yukon (and the resulting increase in demand for power), caused Yukon Energy to reduce power to Keno Hill, resulting in the operation's inability to fully power the mine and mill on several occasions in late 2024 and for 8 days in the first quarter of 2025.
The delayed authorization and permit were a result of the focus of the Yukon Government (“YG”) and the First Nation of Na-Cho Nyäk Dun (“FNNND”) on Eagle Mine incident response and not on routine permitting matters. Mill operations resumed on October 26, 2024 after receiving the authorization and modification and completing related design and construction work on the DSTF.
The primary impact was that we were forced to suspend milling operations at Keno Hill between August 27 and October 26, 2024 due to delays in receiving authorizations and permits because the focus of the Yukon Government and the First Nation of Na-Cho Nyäk Dun (“FNNND”) on the Eagle Mine incident response and not on routine permitting matters.
The projected flat production levels at Keno Hill for 2025 should allow us to focus on stakeholder outreach and ensuring we have local support for increasing production levels by 2026, as well as permitting, infrastructure and capital projects. As stated above, Keno Hill has not been profitable for us at current throughput rates and prices.
The projected flat production levels at Keno Hill for 2026 should allow us to focus on (i) permitting, (ii) stakeholder outreach and ensuring we have local support, (iii) projects such as tailings storage expansion and the construction of a cemented tails batch plant, (iv) mine development and (v) meeting the above-mentioned operational challenges.
During the year ended December 31, 2024, Keno Hill recorded sales and total cost of sales of $75.0 million, related to the concentrate produced and sold during the ramp up.
During the twelve months ended December 31, 2025 and 2024, Keno Hill recorded sales of $145.3 million and $75.0 million, respectively, with the increase due primarily to higher metals sales volumes and realized prices.
As of December 31, 2024, $29.2 million of the facility was utilized, with $6.2 million being used for letters of credit, $23.0 million was drawn on the facility, leaving approximately $195.8 million available for borrowing. Another challenge for us is the risk associated with environmental litigation and ongoing reclamation activities. As described in Item 1A.
In addition, we have in place a $225.0 million revolving credit agreement. As of December 31, 2025, no amount was drawn on the facility, with $6.7 million being used for letters of credit, no amount was drawn on the facility, leaving approximately $218.3 million available for borrowing.
During August 2023, the production at the mine was suspended due to a fire that occurred while repairing an unused station in the #2 ventilation shaft, which is also the secondary egress (required by MSHA regulations). By early September, the fire had been extinguished, normal ventilation was reestablished and the workforce recalled.
However, there can be no assurance these efforts will be successful in reducing costs or offsetting the potential future impacts of inflation or other factors impacting profitability. During August 2023, the production at the mine was suspended due to a fire that occurred while repairing an unused station in the #2 ventilation shaft.
See Consolidated Results of Operations below for information on total cost of sales, as well as cash costs and AISC, each after by-product credits, per silver and gold ounce for 2024, 2023 and 2022. • Lucky Friday Recovery - Successfully restored to full production in the first quarter, delivering 4.9 million ounces of silver, after operations were suspended due to an underground fire in August 2023. • Keno Hill Success - Produced 2.8 million ounces of silver, meeting production guidance of 2.7 - 3.0 million ounces, despite reduced fourth quarter throughput due to power conservation measures by Yukon Energy Corp. • Diversification Milestone - Copper became a payable metal for Greens Creek, resulting in a new revenue stream that generated $0.4 million of copper sales.
See Consolidated Results of Operations below for information on total cost of sales, as well as cash costs and AISC, each after by-product credits, per silver and gold ounce for 2025, 2024 and 2023. 63 • Lucky Friday Production - Achieved record production of 5.3 million ounces, while continuing to advance infrastructure projects such as the surface cooling plant and beginning work on a new tailings impoundment. • Keno Hill Consistent Production - Produced 3.0 million ounces of silver, meeting production guidance of 2.9 - 3.1 million ounces, which represents a 9% increase from the prior year, while continuing to improve the developed state of the mine and invest in infrastructure needed to advance toward commercial production. • Nevada Properties Advancement - Advanced exploration and permitting across the Company's Nevada portfolio.
Removed
Operational excellence and safety 2024 Highlights Operational Achievements: • Production - Delivered 16.2 million ounces of silver and 141,923 ounces of gold.
Added
Achieving operational excellence through standardized systems and continuous improvement 2. Optimizing our portfolio through strategic reviews and targeting highest risk-adjusted return projects 3. Intensifying our focus on financial discipline with a rigorous capital allocation framework 4.
Removed
Financial Performance: • Revenue Generation - Achieved record sales of $929.9 million. • Shareholder Returns - Generated net income applicable to common stockholders of $35.3 million and returned $24.9 million to our common stockholders through dividend payments.
Added
Leveraging our position as North America's largest silver producer to meet growing demand from green technology markets Recent Developments On January 26, 2026, we announced the sale of our Hecla Quebec Inc. subsidiary which owns the Casa Berardi segment to Orezone for up to $593 million in total consideration.
Removed
Contributing to net income was $50.0 million in insurance proceeds related to the Lucky Friday fire. • Continued Investment in Operations - Made capital expenditures of approximately $214.5 million, including $47.8 million at Greens Creek, $49.6 million at Lucky Friday, $60.7 million at Casa Berardi and $54.9 million at Keno Hill. • Exploration - Incurred $27.3 million on exploration and pre-development activities. • Improved Liquidity - Raised $58.4 million in common stock sales under our ATM program which were utilized to make repayments on our outstanding revolving credit facility balance.
Added
The transaction is expected to close in the first quarter of 2026, subject to the satisfaction of customary closing conditions. There can be no assurance that the transaction will be completed on the expected timeline or at all, or that we will receive the full anticipated consideration.
Removed
Lead and zinc represent important by-products at our Greens Creek and Lucky Friday segments, and gold is also a significant by-product at Greens Creek. Copper is a minor by-product credit at Greens Creek, in addition to lead and zinc at Keno Hill.
Added
Details of the consideration to be received are as follows: • Cash consideration of $160 million due upon closing; • Equity consideration of approximately 65.7 million Orezone common shares, to be issued upon closing, valued at $112 million as of January 26, 2026; • Deferred cash consideration of $30 million and $50 million to be paid at 18 months and 30 months, respectively, from closing; and • Contingent consideration of up to $241 million consisting of: o Production-based royalty payments of up to $211 million ($80/ounce for the first 500,000 ounces, then $180/ounce thereafter from open pit operations) o Permit receipt payment of $20 million upon grant of permits o Gold price-linked payment of up to $10 million at gold prices exceeding $4,200/ounce.
Removed
We seek to implement reasonable best practices with respect to mine safety and emergency preparedness.
Added
The sale of Casa Berardi represents a disciplined portfolio optimization and focuses capital allocation on our differentiated silver assets, which we believe to represent significant growth and value creation opportunities.
Removed
In 2024 exploration and pre-development expense decreased by $5.2 million as exploration activities were focused primarily at Greens Creek and Keno Hill, with additional pre-development work at the Libby Exploration project. • Provision for closed operations and environmental matters was $6.8 million in 2024 compared to $7.6 million in 2023 and $8.8 million in 2022.
Added
Upon closing, we will further solidify our position as a leading silver multi-asset mining company with what we believe to be the best revenue exposure to silver amongst our immediate peers and focused on operating in what we view to be the most favorable jurisdictions.
Removed
The decrease of $0.8 million for 2024 compared to 2023 was due to the recognition of an additional reclamation provision at Johnny M in 2023.
Added
We anticipate using the cash proceeds from the transaction for debt reduction and balance sheet strengthening, enhancing our financial flexibility and capacity to invest in strategic growth investments, positioning us to maximize value from our world-class silver portfolio.
Removed
The decrease of $1.2 million for 2023 compared to 2022 is primarily due to less reclamation activities at Johnny M in 2023 compared to 2022. • During 2024 we recorded a $14.5 million write down of property, plant and equipment which had no salvage value.
Added
We are confident in Orezone's operational expertise and believe they are well-positioned to create additional value from Casa Berardi. 2025 Highlights Operational Achievements: • Strong Production - Delivered 17.0 million ounces of silver and 150,509 ounces of gold. Gold production benefited from higher grades and recoveries at Greens Creek and the continuation of underground mining at Casa Berardi.
Removed
The income in 2023 compared to the expense in 2022 was primarily due to the receipt of $5.9 million in insurance proceeds in May related to an insurance coverage lawsuit. • Fair value adjustments, net resulted in a loss of $2.2 million, gain of $2.9 million, and losses of $4.7 million in 2024, 2023 and 2022, respectively.
Added
At the Midas Project, a 2025 drilling program confirmed mineralized structures in five of six targets tested, including a gold discovery at the previously untested Pogo trend that returned 0.95 ounces per ton gold over 2.2 feet with visible gold, and at the Sinter Offset target, 0.46 ounces per ton gold over 6.1 feet, extending the Sinter Vein approximately 750 feet across a post-mineral fault from its 2021 discovery location.
Removed
Risk Factors - Our profitability could be affected by inflation, including the prices of other commodities for a discussion of certain risks related to our operations profitability. 69 Gross profit increased by $22.3 million to $124.6 million in 2023 from $102.3 million in 2022, as higher realized prices for all metals sold other than zinc and higher payable metal quantities for all metals sold compared to 2022, was offset by higher production costs reflecting more tons milled, and related higher labor, maintenance and consumables costs.
Added
The Midas district historically produced approximately 2.2 million ounces of gold and 27 million ounces of silver during modern-era operations (1998–2014) and includes existing permitted infrastructure, including a mill with approximately 1,200 tons per day capacity, that has been in care and maintenance for approximately five years.
Removed
Following evaluation of alternatives, it was determined that in order to safely bring the mine back into production in the most rapid and cost effective way, a new secondary egress needed to be developed to bypass the damaged portion of the #2 shaft.
Added
At the 100% owned Aurora project, the Company received a Finding of No Significant Impact and Record of Decision for the Polaris exploration project, a permitting milestone enabling the advancement of exploration drilling activities at this historically high-grade gold-silver property.

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Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

55 edited+18 added−35 removed139 unchanged
Biggest changeSee the risk factors above, “Certain of our mines and exploration properties are located on land that is or may become subject to traditional territory, title claims and/or claims of cultural significance, and such claims and the attendant obligations of the federal government to those tribal communities and stakeholders may affect our current and future operations” and “Legal challenges could prevent our projects in Montana from ever being developed.” See the risk factors above, “ Certain of our mines and exploration properties are located on land that is or may become subject to traditional territory, title claims and/or claims of cultural significance, and such claims and the attendant obligations of the federal government to those tribal communities and stakeholders may affect our current and future operations ” and “ Legal challenges could prevent our projects in Montana from ever being developed .” We are currently involved in ongoing legal disputes that may materially adversely affect us.
Biggest changeSee the risk factors, “ Certain of our mines and exploration properties are located on land that is or may become subject to, competing title claims and/or claims of cultural significance ” and “ Legal challenges could prevent exploration projects from being developed or existing mines from future expansion .” We could be subject to legal disputes that may materially adversely affect us.
These impediments include: • the classification of our Board of Directors into three classes serving staggered three-year terms, which makes it more difficult to quickly replace board members; • the ability of our Board of Directors to issue shares of preferred stock with rights as it deems appropriate without stockholder approval; • a provision that special meetings of our Board of Directors may be called only by our chief executive officer or a majority of our Board of Directors; • a provision that special meetings of stockholders may only be called pursuant to a resolution approved by a majority of our Board of Directors; • a prohibition against action by written consent of our stockholders; • a provision that our board members may only be removed for cause and by an affirmative vote of at least 80% of the outstanding voting stock; • a provision that our stockholders comply with advance-notice provisions to bring director nominations or other matters before meetings of our stockholders; • a prohibition against certain business combinations with an acquirer of 15% or more of our common stock for three years after such acquisition unless the stock acquisition or the business combination is approved by our board prior to the acquisition of 29 the 15% interest, or after such acquisition our board and the holders of two-thirds of the other common stock approve the business combination; and • a prohibition against our entering into certain business combinations with interested stockholders without the affirmative vote of the holders of at least 80% of the voting power of the then outstanding shares of voting stock.
These impediments include: • the classification of our Board of Directors into three classes serving staggered three-year terms, which makes it more difficult to quickly replace board members; • the ability of our Board of Directors to issue shares of preferred stock with rights as it deems appropriate without stockholder approval; • a provision that special meetings of our Board of Directors may be called only by our chief executive officer or a majority of our Board of Directors; • a provision that special meetings of stockholders may only be called pursuant to a resolution approved by a majority of our Board of Directors; • a prohibition against action by written consent of our stockholders; • a provision that our board members may only be removed for cause and by an affirmative vote of at least 80% of the outstanding voting stock; • a provision that our stockholders comply with advance-notice provisions to bring director nominations or other matters before meetings of our stockholders; • a prohibition against certain business combinations with an acquirer of 15% or more of our common stock for three years after such acquisition unless the stock acquisition or the business combination is approved by our board prior to the acquisition of the 15% interest, or after such acquisition our board and the holders of two-thirds of the other common stock approve the business combination; and • a prohibition against our entering into certain business combinations with interested stockholders without the affirmative vote of the holders of at least 80% of the voting power of the then outstanding shares of voting stock.
See the risk factors below titled “ Our operations are subject to complex, evolving and increasingly stringent environmental laws and regulations, ” “ Compliance with environmental regulations, and litigation based on such regulations, involves significant costs and can threaten existing operations or constrain expansion opportunities ,” and “ Our environmental and asset retirement obligations may exceed the provisions we have made .” We cannot assure you that we will at all times be in compliance with applicable laws, regulations and permitting requirements.
See the risk factors titled “ Our operations are subject to complex, evolving and increasingly stringent environmental laws and regulations, ” “ Compliance with environmental regulations, and litigation based on such regulations, involves significant costs and can threaten existing operations or constrain expansion opportunities ,” and “ Our environmental and asset retirement obligations may exceed the provisions we have made .” We cannot assure you that we will at all times be in compliance with applicable laws, regulations and permitting requirements.
The difficulties of combining the acquired operations with our existing business include, among other things: • operating a larger organization; • operating in multiple legal jurisdictions; 20 • coordinating geographically and linguistically disparate organizations, systems and facilities; • adapting to additional political, regulatory, legal and social requirements; • integrating corporate, technological and administrative functions; and • diverting management’s attention from other business concerns.
The difficulties of combining the acquired operations with our existing business include, among other things: • operating a larger organization; • operating in multiple legal jurisdictions; • coordinating geographically and linguistically disparate organizations, systems and facilities; • adapting to additional political, regulatory, legal and social requirements; • integrating corporate, technological and administrative functions; and • diverting management’s attention from other business concerns.
There is no assurance that any such law, regulation, enforcement or private claim, or reclamation activity, would not have a material adverse effect on our financial condition, results of operations or cash flows. 24 Mine closure and reclamation regulations impose substantial costs on our operations and include requirements that we provide financial assurance supporting those obligations.
There is no assurance that any such law, regulation, enforcement or private claim, or reclamation activity, would not have a material adverse effect on our financial condition, results of operations or cash flows. Mine closure and reclamation regulations impose substantial costs on our operations and include requirements that we provide financial assurance supporting those obligations.
We cannot assure you that any rating currently assigned by Standard & Poor’s or Moody’s to us or our debt securities (including the Senior Notes) will remain unchanged for any given period of time or that a rating will not be lowered if, in that rating agency’s judgment, future circumstances relating to the basis of the rating so warrant.
We cannot assure you that any rating currently assigned by Standard & Poor’s or Moody’s to us or our debt securities (including the Senior 32 Notes) will remain unchanged for any given period of time or that a rating will not be lowered if, in that rating agency’s judgment, future circumstances relating to the basis of the rating so warrant.
Congress debates imposing royalties on minerals extracted from federal lands. Although such legislation has not passed as of the date of this report, it is possible that in the future royalties or taxes will be imposed on mining operations conducted on federal land, which could adversely impact our financial results.
Congress debates imposing royalties on minerals extracted from federal lands. Although such legislation has not passed as of the date of this report, it is possible that in the 23 future royalties or taxes will be imposed on mining operations conducted on federal land, which could adversely impact our financial results.
Acquisitions of other mining companies or properties may also expose us to new legal, geographic, political, operating, and geological risks. See the risk factor below, “ We may not realize all of the anticipated benefits from our acquisitions, including our 2022 acquisition of Alexco. ” We may be unable to successfully integrate the operations of the properties we acquire.
Acquisitions of other mining companies or properties may also expose us to new legal, geographic, political, operating, and geological risks. See the risk factor, “ We may not realize all of the anticipated benefits from our acquisitions, including our 2022 acquisition of Alexco. ” We may be unable to successfully integrate the operations of the properties we acquire.
The declaration and payment of common stock dividends, whether pursuant to the policy or in addition thereto, is at the sole discretion of our Board of Directors, and we cannot assure you that we will continue to declare and pay common stock dividends in the future, and our Board of Directors make revise or revoke the current common stock dividend policy at any time and without advance notice.
The declaration and payment of common stock dividends, whether pursuant to the policy or in addition thereto, is at the sole discretion of our Board of Directors, and we cannot assure you that we will continue to declare 28 and pay common stock dividends in the future, and our Board of Directors make revise or revoke the current common stock dividend policy at any time and without advance notice.
Temporary or extended lay-offs due to mine closures may exacerbate such issues and result in vacancies or 31 the need to hire less skilled or efficient employees or contractors. The loss of skilled employees or contractors or our inability to attract and retain additional highly skilled employees and contractors could have an adverse effect on our business and future operations.
Temporary or extended lay-offs due to mine closures may exacerbate such issues and result in vacancies or the need to hire less skilled or efficient employees or contractors. The loss of skilled employees or contractors or our inability to attract and retain additional highly skilled employees and contractors could have an adverse effect on our business and future operations.
While both a salmon initiative in Alaska and a water treatment initiative in Montana were defeated by voters in November 2018, in the future similar or other initiatives that could impact our operations may be on the ballot in these states or other jurisdictions (including local or international) in which we currently or may in the future operate.
While both a salmon initiative in Alaska and a water treatment initiative in Montana were defeated by voters in 2018, in the future similar or other initiatives that could impact our operations may be on the ballot in these states or other jurisdictions (including local or international) in which we currently or may in the future operate.
Since January 2010, we have paid all regular quarterly dividends on our Series B preferred stock. The annual dividend payable on the Series B preferred stock is currently $0.6 million. Prior to 2010, there were numerous occasions when we did not declare dividends 28 on the Series B Preferred Stock, but instead deferred them.
Since January 2010, we have paid all regular quarterly dividends on our Series B preferred stock. The annual dividend payable on the Series B preferred stock is currently $0.6 million. Prior to 2010, there were numerous occasions when we did not declare dividends on the Series B Preferred Stock, but instead deferred them.
Although we believe we are currently in compliance with all material regulations applicable to shipping, packaging, and handling our products, the chemical properties of our products or existing regulations could change and cause us to fall out of compliance or force us to incur substantial additional expenditures to maintain compliance with applicable regulations.
Although we believe we are currently in compliance with all material regulations applicable to shipping, packaging, and handling our products, the chemical properties of our 22 products or existing regulations could change and cause us to fall out of compliance or force us to incur substantial additional expenditures to maintain compliance with applicable regulations.
For a description of some of the lawsuits and other claims in which we are involved, see Note 16 of Notes to Consolidated Financial Statements . Our environmental and asset retirement obligations may exceed the provisions we have made. We are subject to significant environmental obligations.
For a description of some of the lawsuits and other claims in which we are involved, see Note 16 of Notes to Consolidated Financial Statements . 26 Our environmental and asset retirement obligations may exceed the provisions we have made. We are subject to significant environmental obligations.
See the risk factors below, “Our existing stockholders are effectively subordinated to the holders of our Senior Notes", “Any downgrade in the credit ratings assigned to us or our debt securities could increase future borrowing costs, adversely affect the availability of new financing and may result in increased collateral requirements under our existing surety bond portfolio,” and “Mine closure and reclamation regulations impose substantial costs on our operations, and include requirements that we provide financial assurance supporting those obligations.
See the risk factors, “Our existing stockholders are effectively subordinated to the holders of our Senior Notes", “Any downgrade in the credit ratings assigned to us or our debt securities could increase future borrowing costs, adversely affect the availability of new 25 financing and may result in increased collateral requirements under our existing surety bond portfolio,” and “Mine closure and reclamation regulations impose substantial costs on our operations, and include requirements that we provide financial assurance supporting those obligations.
In addition, amendment of most of the provisions described above requires approval of at least 80% of the outstanding voting stock. The terms of our debt impose restrictions on our operations. The indenture governing our Senior Notes includes several significant covenants.
In addition, amendment of most of the provisions described above requires approval of at least 80% of the outstanding voting stock. The terms of our debt impose restrictions on our operations. 29 The indenture governing our Senior Notes includes several significant covenants.
Recently the prices we pay for commodities and consumables have increased which has increased the operating costs at our mine sites. In addition, labor costs have increased, including under the terms of our new labor agreement with the union at the Lucky Friday mine.
Recently the prices we pay for commodities and consumables have increased which has increased the operating costs at our mine sites. In addition, labor costs have increased, including under the terms of our labor agreement with the union at the Lucky Friday mine.
General Risk Factors 30 Global financial events or developments impacting major industrial or developing countries may have an impact on our business and financial condition in ways that we currently cannot predict.
General Risk Factors Global financial events or developments impacting major industrial or developing countries may have an impact on our business and financial condition in ways that we currently cannot predict.
The unionized employees at Lucky Friday were on strike from March 13, 2017 until January 7, 2020, when the union ratified a new collective bargaining agreement (“CBA”), which expired on January 6, 2023 (a new six year CBA was approved by the union in January 2023).
The unionized employees at Lucky Friday were on strike from March 2017 until January 2020, when the union ratified a new collective bargaining agreement (“CBA”), which expired in January 2023 (a new six year CBA was approved by the union in January 2023).
Any downgrade in the credit ratings assigned to us or our debt securities could increase future borrowing costs, adversely affect the availability of new financing and may result in increased collateral requirements under our existing surety bond portfolio. As of February 7, 2025, our Senior Notes were rated “BB-” by Standard & Poor’s and “B2” by Moody’s Investors Service.
Any downgrade in the credit ratings assigned to us or our debt securities could increase future borrowing costs, adversely affect the availability of new financing and may result in increased collateral requirements under our existing surety bond portfolio. As of February 12, 2026, our Senior Notes were rated “BB-” by Standard & Poor’s and “B1” by Moody’s Investors Service.
See the risk factor above, “ We are required to obtain governmental permits and other 23 approvals in order to conduct mining operations ” and the risk factor below, “ Mine closure and reclamation regulations impose substantial costs on our operations, and include requirements that we provide financial assurance supporting those obligations.
See the risk factors “ We are required to obtain governmental permits and other approvals in order to conduct mining operations ” and “ Mine closure and reclamation regulations impose substantial costs on our operations, and include requirements that we provide financial assurance supporting those obligations.
Such review involves comparing an asset’s carrying value to its fair value. When the carrying value of the asset exceeds its fair value (which is based on estimating the future undiscounted cash flows expected to result from the use and eventual disposition of the asset or a market value approach), an impairment must be recognized.
When the carrying value of the asset exceeds its fair value (which is based on estimating the future undiscounted cash flows expected to result from the use and eventual disposition of the asset or a market value approach), an impairment must be recognized.
Though production remains suspended at our Nevada assets, we did not identify a triggering event for our Nevada long-lived assets in 2024, as our budgeted exploration program for 2025 has significantly increased compared to the level of exploration expenditures incurred in 2024.
Though production remains suspended at our Nevada assets, we did not identify a triggering event for our Nevada long-lived assets in 2025, as our budgeted exploration program for 2026, due to positive results, has significantly increased compared to the level of exploration expenditures incurred in 2025.
See the risk factors above, “ We may not realize all of the anticipated benefits from our acquisitions, including our 2022 acquisition of Alexco, ” “ Certain of our mines and exploration properties are located on land that is or may become subject to traditional territory, title claims and/or claims of cultural significance, and such claims and the attendant obligations of the federal government to those tribal communities and stakeholders may affect our current and future operations ” and “ An extended decline in metals prices, an increase in operating or capital costs or treatment charges, mine accidents or closures, increasing regulatory obligations, or our inability to convert resources or exploration targets to reserves may cause us to record write-downs, which could negatively impact our results of operations .” We face risks relating to transporting our products from our mines, as well as transporting employees and materials at our Greens Creek, Casa Berardi and Keno Hill sites.
See the risk factors, “ We may not realize all of the anticipated benefits from our acquisitions, including our 2022 acquisition of Alexco, ” “ Certain of our mines and exploration properties are located on land that is or may become subject to, competing title claims and/or claims of cultural significance ” and “ An extended decline in metals prices, an increase in operating or capital costs or treatment charges, mine accidents or closures, increasing regulatory obligations, or our inability to convert resources or exploration targets to reserves may cause us to record write-downs, which could negatively impact our results of operations .” We face risks relating to transporting our products from our mines, as well as transporting employees and materials at our Greens Creek, Casa Berardi and Keno Hill sites.
See Note 12 of Notes to Consolidated Financial Statements for more information on our common stock dividend policy. From the fourth quarter of 2011 through and including the fourth quarter of 2024, our Board of Directors has declared a common stock dividend under the policy described above.
Currently, our dividend policy has only the minimum component. See Note 12 of Notes to Consolidated Financial Statements for more information on our common stock dividend policy. From the fourth quarter of 2011 through and including the fourth quarter of 2025, our Board of Directors has declared a common stock dividend under the policy described above.
The specific requirements may change and vary among jurisdictions, but they are similar in that they aim to minimize long term effects of exploration and mining disturbance by requiring the control of possible deleterious effluents and re-establishment to some degree of pre-disturbance land forms and vegetation.
The specific requirements may change and vary among jurisdictions, but they are similar in that they aim to minimize long term effects of exploration and mining disturbance by requiring the control of possible deleterious effluents and re-establishment to some degree of pre-disturbance land forms and vegetation. Mine closure plans are subject to periodic review and update requirements.
See the risk 21 factors above, “ An extended decline in metals prices, an increase in operating or capital costs or treatment charges, mine accidents or closures, increasing regulatory obligations, or our inability to convert resources or exploration targets to reserves may cause us to record write-downs, which could negatively impact our results of operations, ” “Certain of our mines and exploration properties are located on land that is or may become subject to traditional territory, title claims and/or claims of cultural significance, and such claims and the attendant obligations of the federal government to those tribal communities and stakeholders may affect our current and future operations,” "We may be subject to a number of unanticipated risks related to inadequate infrastructure" and “ Issues we have faced at certain segments could require us to write-down the associated long-lived assets.
See the risk factors, “ An extended decline in metals prices, an increase in operating or capital costs or treatment charges, mine accidents or closures, increasing regulatory obligations, or our inability to convert resources or exploration targets to reserves may cause us to record write-downs, which could negatively impact our results of operations, ” “Certain of our mines and exploration properties are located on land that is or may become subject to competing title claims and/or claims of cultural significance,” "We may be subject to a number of unanticipated risks related to inadequate infrastructure" and “ Issues we have faced at certain segments could require us to write-down the associated long-lived assets.
Our Board of Directors adopted a common stock dividend policy that has two components: (1) a dividend that links the amount of dividends on our common stock to our average quarterly realized silver price in the preceding quarter, and (2) a minimum annual dividend of $0.015 per share of common stock, in each case payable quarterly, when declared.
Until February 2025, our common stock dividend policy had two components: (1) a dividend that links the amount of dividends on our common stock to our average quarterly realized silver price in the preceding quarter, and (2) a minimum annual dividend of $0.015 per share of common stock, in each case payable quarterly, when declared.
We could face similar issues at our other operations. Such write-downs may adversely affect our results of operations and financial condition. ” The properties we may acquire may not produce as expected, and we may be unable to determine reserve potential, identify liabilities associated with the acquired properties or obtain protection from sellers against such liabilities.
We could face similar issues at our other operations. ” The properties we may acquire may not produce as expected, and we may be unable to determine reserve potential, identify liabilities associated with the acquired properties or obtain protection from sellers against such liabilities.
To the extent any such initiative was passed and became law, there could be a material adverse impact on our financial condition, results of operations or cash flows. 26 Legal challenges could prevent our projects in Montana from ever being developed.
To the extent any such initiative was passed and became law, there could be a material adverse impact on our financial condition, results of operations or cash flows. Legal challenges could prevent exploration projects from being developed or existing mines from future expansion.
We face inherent risks in acquisitions of other mining companies or properties that may adversely impact our growth strategy. We actively evaluate opportunities to expand our mineral reserves and resources by acquiring other mining companies or properties. Although we are pursuing opportunities that we feel are in the best interest of our stockholders, these pursuits are costly and distracting.
We actively evaluate opportunities to expand our mineral reserves and resources by acquiring other mining companies or properties. Although we are pursuing opportunities that we feel are in the best interest of our stockholders, these pursuits are costly and distracting.
At December 31, 2024, we had accrued $124.9 million as a provision for environmental and asset retirement obligations. We cannot assure you that we have accurately estimated these obligations, and in the future our accrual could materially change and we could voluntarily incur expenditures in excess of our accrual.
At December 31, 2025, we had accrued $202.3 million as a provision for environmental and asset retirement obligations. We cannot be sure that we have accurately estimated these obligations, and in the future our accrual could materially change and we could voluntarily incur expenditures in excess of our accrual.
See the below risk factor “ The terms of our debt impose restrictions on our operations. ” We may need to refinance all or a portion of our debt on or before maturity.
See the risk factor “ The terms of our debt impose restrictions on our operations. ” We may need to refinance all or a portion of our debt on or before maturity. We may be unable to refinance any of our debt on commercially reasonable terms or at all.
These costs could significantly increase and we might not be able to provide financial assurance. We are required by U.S. federal and state laws and regulations and by laws and regulations in the foreign jurisdictions in which we operate to reclaim our mining properties.
These costs could significantly increase and we might not be able to provide financial assurance. We are required by U.S. federal and state laws and regulations and by laws and regulations in the foreign jurisdictions in which we operate to reclaim our mining properties, which typically includes filing of a closure plan with the applicable regulator.
Accordingly, repayment of our debt is dependent on the generation of cash flow by our subsidiaries and their ability to make such cash available to us, by dividend, debt repayment or otherwise.
In addition, we conduct substantially all of our operations through our subsidiaries. Accordingly, repayment of our debt is dependent on the generation of cash flow by our subsidiaries and their ability to make such cash available to us, by dividend, debt repayment or otherwise.
Additional federal, state and local permits will also be required before construction of the expanded facility can commence. 25 • At Casa Berardi, obtaining new or modified permits and modifications to the mine license area will be required to successfully develop the planned open pit extensions at the site and for long term management of tailings and waste rock generated through mining operations. • At Hollister in Nevada, state and federal approvals will be required for waste rock and underground water management from development of the Hatter Graben or other mine expansions.
Specific examples of where we face permitting risk include the following: • At Casa Berardi, if we continue to own it, obtaining new or modified permits and modifications to the mine license area will be required to successfully develop the planned open pit extensions at the site and for long term management of tailings and waste rock generated through mining operations. • At Hollister in Nevada, state and federal approvals will be required for waste rock and underground water management from development of the Hatter Graben or other mine expansions.
In recent years there have been several proposed or implemented ballot initiatives that sought to directly or indirectly curtail or eliminate mining in certain states, including Alaska, where our Greens Creek mine operates, and Montana, where we are seeking to explore at the Libby Exploration project, and possibly develop depending on the results of exploration activities, and may in the future seek to explore or develop the Rock Creek project.
New federal and state laws, regulations and initiatives could impact our operations. In recent years there have been several proposed or implemented ballot initiatives that sought to directly or indirectly curtail or eliminate mining in certain states, including Alaska, where our Greens Creek mine operates, and Montana, where we may commence exploration at the Libby Exploration project.
Such write-downs may adversely affect our results of operations and financial condition. We review our long-lived assets for recoverability pursuant to the Financial Accounting Standard Board’s Accounting Standards Codification Section 360. Under that standard, we review the recoverability of our long-lived assets, such as our mining properties, upon a triggering event.
We review our long-lived assets for recoverability pursuant to the Financial Accounting Standard Board’s Accounting Standards Codification Section 360. Under that standard, we review the recoverability of our long-lived assets, such as our mining properties, upon a triggering event. Such review involves comparing an asset’s carrying value to its fair value.
If our cash flows and capital resources are insufficient to fund our debt service obligations, we may be forced to reduce or delay investments, capital expenditures and exploration efforts or to sell assets, seek additional capital or restructure or refinance our debt.
In the event that we do not receive distributions from our subsidiaries, we may be unable to make required principal and interest payments on our debt. 27 If our cash flows and capital resources are insufficient to fund our debt service obligations, we may be forced to reduce or delay investments, capital expenditures and exploration efforts or to sell assets, seek additional capital or restructure or refinance our debt.
Climate change legislation may also affect our smelter customers that burn fossil fuels, resulting in fewer customers or increased costs to us, and may affect the market for the metals we produce with effects on prices that are not possible for us to predict.
Climate change legislation may also affect our smelter customers that burn fossil fuels, resulting in fewer customers or increased costs to us, and may affect the market for the metals we produce with effects on prices that are not possible for us to predict. 24 Adoption of these or similar new environmental regulations or more stringent application of existing regulations may materially increase our costs, threaten certain operating activities and constrain our expansion opportunities.
We conduct a review of the financial performance of our mines in connection with the preparation of our financial statements for each reporting period and determine whether any triggering events are indicated. We identified a triggering event at Casa Berardi due to the operation's gross loss for the year ended December 31, 2024.
We conduct a review of the financial 21 performance of our mines in connection with the preparation of our financial statements for each reporting period and determine whether any triggering events are indicated.
In some cases, we are required to provide financial assurances as security for reclamation costs, which may exceed our estimates for such costs. Similarly, our reclamation costs may exceed the financial assurances in place and those assurances may ultimately be unavailable to us.
Similarly, our reclamation costs may exceed the financial assurances in place and those assurances may ultimately be unavailable to us.
To the extent we issue any additional equity securities (or securities convertible into equity), the ownership of our existing stockholders would be diluted and our earnings per share could be reduced. 32 If a large number of shares of our common stock are sold in the public market, the sales could reduce the trading price of our common stock and impede our ability to raise future capital.
If a large number of shares of our common stock are sold in the public market, the sales could reduce the trading price of our common stock and impede our ability to raise future capital.
The outcomes of these pending and potential claims are uncertain. We may not resolve these claims favorably. Depending on the outcome, these actions could cause adverse financial effects or reputational harm to us.
Depending on the outcome, these actions could cause adverse financial effects or reputational harm to us.
The prices of the metals that we produce are affected by a number of factors, and it is unknown how these factors may be impacted by a global financial event or developments impacting major industrial or developing countries.
The prices of the metals that we produce are affected by a number of factors, and it is unknown how these factors may be impacted by a global financial event or developments impacting major industrial or developing countries. 30 Tariffs, other potential changes to tariff and import/export regulations, or trade disputes between the United States and other jurisdictions may have a negative effect on global economic conditions and on our business, financial results and financial condition.
Our information technology systems may be vulnerable to disruption which could place our systems at risk from data loss, operational failure, or compromise of confidential information. We rely on various information technology systems and on third party developers and contractors in connection with operations, including production, equipment operation and financial support systems.
We rely on various information technology systems and on third party developers and contractors in connection with operations, including production, equipment operation and financial support systems.
The strike significantly impacted production at the Lucky Friday and caused significant costs and expenses during each year of the strike. Any future strikes or other labor or related disruptions could adversely affect our financial condition and results of operations.
The strike significantly impacted production at the Lucky Friday and caused significant costs and expenses during each year of the strike.
Possible future laws and regulations, or more restrictive interpretations of current laws and regulations by governmental authorities, could cause additional expense, capital expenditures, restrictions on or suspensions of operations and delays in the development of new properties. 22 U.S. mines like those at our Lucky Friday, Greens Creek and Nevada assets are inspected at least quarterly by MSHA, which inspections often lead to notices of violation under the Mine Safety and Health Act.
U.S. mines like our Lucky Friday, Greens Creek and Nevada assets are inspected at least quarterly by MSHA, which inspections often lead to notices of violation under the Mine Safety and Health Act. Any of our U.S. mines could be subject to a temporary or extended shutdown as a result of a violation alleged by MSHA.
For example, Yukon Energy, the provider of electricity to Keno Hill, recently experienced a turbine failure at its hydroelectric plant in Whitehorse. That failure, combined with cold temperatures in the Yukon, has caused Yukon Energy to reduce power to Keno Hill, which does not have sufficient backup generation capacity to fully power the mine and the mill.
For example, Yukon Energy, the provider of electricity to Keno Hill, occasionally reduces power to Keno Hill, which does not have sufficient backup generation capacity to fully power the mine and the mill. This can, and has, led to insufficient power to run 20 the mine and the mill.
This permitting will require coordination with the Western Shoshone who have long-standing ties to this land area. • At Lucky Friday, an expansion of the current tailings storage facility or new, separate tailings storage facility will be required to achieve the planned life of mine.
This permitting will require coordination with the Western Shoshone who have long-standing ties to this land area.
As a result of the foregoing factors and their economic impacts, it is possible that we may have to suspend production and other operations at Keno Hill and place Keno Hill on care and maintenance until such time as conditions improve sufficiently to allow us to approach or reach profitability at the site.
However, should silver prices fall or we experience issues like we did in the past, such as sustained power outages imposed by the utility, it is possible that we may have to suspend production and other operations at Keno Hill and place it on care and maintenance until such time as conditions improve.
We have begun site selection, permitting, and engineering in advance of need for the additional storage capacity. • At Keno Hill, new permits or permit modifications will be required for it to reach future projected production necessary for the operation to become profitable.
Other potential projects in Nevada, including the Midas and Aurora properties, would require additional state and potentially federal permits before they could be returned to production. • At Keno Hill, new permits or permit modifications will be required for it to reach future projected production necessary for the operation to become sustainably profitable.
However, we anticipate incurring care-and-maintenance costs in the future unless and until we have enough exploration success and development to resume mining operations. In September 2022, we completed the acquisition of Alexco and gained ownership of the Keno Hill project in the Yukon Territory, Canada.
As an example, in September 2022, we completed the acquisition of Alexco and gained ownership of the Keno Hill project in the Yukon Territory, Canada.
Although such power disruptions have not yet had a material impact on Keno Hill’s operations, we expect that power interruptions will continue throughout the cold weather months of 2025 until the turbine is repaired by Yukon Energy (currently expected in summer 2025), and such interruptions could have a material adverse impact on the financial condition of and results of operations at Keno Hill.
Although such power disruptions have not had a material impact on Keno Hill’s operations, they could have a material adverse impact on the financial condition of and results of operations at Keno Hill. We face inherent risks in acquisitions of other mining companies or properties that may adversely impact our growth strategy.
Generally speaking, permitting has been delayed and further delays are likely, along with increased costs, and ultimately, we may be prevented from ever fully permitting or exploring or developing a project at either of the two sites. The titles to some of our properties may be defective or challenged.
As a result of the legal challenges and other circumstances related to our Montana projects, we may be prevented from ever fully permitting or exploring or developing our Libby Exploration or Rock Creek Projects. The titles to some of our properties may be defective or challenged.
Removed
As a result, on several occasions in late 2024 and early 2025, Keno Hill has had insufficient power to run the mine and the mill.
Added
Although we produced silver at that mine in 2025, permitting and other delays have prevented us from declaring "commercial production." High silver prices have buoyed Keno Hill's performance and , despite not reaching "commercial production" yet, Keno Hill, was profitable in 2025.
Removed
Although we concluded the carrying value assessment indicated no impairment at the time the analysis was undertaken, each analysis was, and any future analysis will be, based on estimates, judgments and assumptions which may turn out to be incorrect or inaccurate.
Added
Possible future laws and regulations, or more restrictive interpretations of current laws and regulations by governmental authorities, could cause additional expense, capital expenditures, restrictions on or suspensions of operations and delays in the development of new properties.
Removed
At Nevada, mine production at Fire Creek continued through the first half of 2021, and was then suspended as we continue studies of hydrology, mining and milling. Revenues exceeded total capital and production costs in 2020 and 2021.
Added
In the course of reviewing or updating closure plans, it is common for the estimates, plans, costs and other details of the plan to be revised. Some of these revisions can be significant, including estimated closure cost increases. For example, we are in the process of updating the closure plan for our Casa Berardi mine.
Removed
Although we produced silver at that mine in 2024, permitting and other delays and the lack of energy provided by Yukon Energy have prevented us from reaching anticipated production levels, which we estimate as 130,000 ounces during 2024. Further, the mine has required capital expenditures higher than we anticipated.
Added
Currently we have recorded a $76.0 million discounted liability for estimated reclamation and closure costs at Casa Berardi, of $150.0 million on an undiscounted basis, which we believe, based on current negotiations with the regulator, is appropriate.
Removed
Any of our U.S. mines could be subject to a temporary or extended shutdown as a result of a violation alleged by MSHA.
Added
Under the terms of the pending sale of our Hecla Quebec subsidiary, the buyer, Orezone, is entitled to reduce future deferred cash payments or contingent royalty payments owed to us if the financial assurance required under Casa Berardi’s updated closure plan exceeds $150.0 million, by 50% of such excess amount.
Removed
Adoption of these or similar new environmental regulations or more stringent application of existing regulations may materially increase our costs, threaten certain operating activities and constrain our expansion opportunities.
Added
This excludes amounts arising from the mine's post-closing actions that increase the closure scope beyond what is currently contemplated.
Removed
Specific examples of where we face permitting risk include the following: • Continued extension of the planned life of mine at Greens Creek will require expansion of the tailings storage facility.
Added
See the risk factors “Our environmental and asset retirement obligations may exceed the provisions we have made,” “Our accounting and other estimates may be imprecise” and “We are required to obtain governmental permits and other approvals in order to conduct mining operations.” In some cases, we are required to provide financial assurances as security for reclamation costs, which may exceed our estimates for such costs.
Removed
In November 2024, the mine received a final record of decision ("ROD") from the United States Forest Service which is projected to extend the life of the dry stack tailings storage facility until at least 2040. The ROD could be subject to litigation from parties who participated in the objection process.
Added
We have experienced in the past, and could experience in the future, claims regarding violations of (i) federal securities laws, (ii) state corporate law, (iii) environmental damage or compliance and (iv) safety conditions or other matters at our mines. The outcome of any such claims would be uncertain. We may not resolve these claims favorably.
Removed
There are several ongoing legal disputes in which we are involved, including a putative class action lawsuit filed against us and certain current and former directors and officers involving our Nevada Operations. Further, we have experienced in the past, and could experience in the future, claims regarding environmental damage or compliance, safety conditions or other matters at our mines.
Added
Since 2018, the United States has imposed tariffs on certain items imported from various countries where we currently sell or in the past sold our products. Since January 2025, the Trump Administration has significantly expanded and modified these tariff policies during President Trump's second term, creating an evolving landscape of trade restrictions and uncertainty.
Removed
New federal and state laws, regulations and initiatives could impact our operations.
Added
We currently sell our products into international markets, including Japan, South Korea, and Canada, with minimal U.S. sales. To date, any tariffs on products to or from those countries have not materially impacted our business. However, we face substantial risks from the current trade environment. For example, we historically have had significant sales into China.
Removed
A joint final Environmental Impact Statement with respect to the Libby Exploration project in Montana was issued in December 2015 by the USFS and the Montana Department of Environmental Quality (“DEQ”), and each agency issued a Record of Decision (“ROD”) in February 2016 providing approval for development of the Libby project.
Added
However, due to U.S. tariffs and China's reciprocal tariffs - currently 20% on our silver concentrate, the China market is effectively closed for us, and we have not shipped any products to China since March 2025. The elimination of the China market limits the competition for our products which could have a material adverse impact on our financial results.
Removed
However, private conservation groups have taken and may in the future take actions to oppose or delay activities at the Libby project. On May 30, 2017, the Montana Federal District Court issued Opinions and Orders in three lawsuits challenging previously granted environmental approvals for the Libby project.
Added
In addition to direct impact on the goods we produce, tariffs have other potential impacts on our operations and financial results. For example, we have significant sales of products shipped to Asia via oceangoing vessels sourced from maritime transport operators.
Removed
The Orders overturned the approvals for the project granted by the USFS and the United States Fish and Wildlife Service (“USFWS”), and in each case remanded the ROD and associated planning documents for further review by the agencies consistent with the Court’s Opinions. In June 2017, the Court vacated the agencies’ approvals for the project.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

1 edited+0 added−90 removed4 unchanged
Biggest changeOur reserves and resources are affected largely by our assessment of future metals prices, as well as by engineering and geological estimates of ore grade, accessibility, future recoveries, capital expenditures and production costs. See Item 2. – Properties above for the metals price assumptions used in our estimates of reserves and resources as of December 31, 2024, 2023 and 2022.
Biggest changeOur reserves and resources are affected largely by our assessment of future metals prices, as well as by engineering and geological estimates of ore grade, accessibility, future recoveries, capital expenditures and production costs. See
Removed
Our assessment of reserves and resources occurs at least annually. Periodically we utilize external specialists to perform independent audits of our operating properties reserves and resources. Reserves and resources are a key component in the valuation of our properties, plants and equipment.
Removed
Reserve estimates are used in determining appropriate rates of units-of-production depreciation, with net book value of many assets depreciated over remaining estimated reserves. Reserves and resources are also a key component in forecasts, with which we compare future cash flows to current asset values in an effort to ensure that carrying values are reported appropriately.
Removed
Our forecasts are also used in determining the level of valuation allowances on our deferred tax assets. Reserves and resources also play a key role in the valuation of certain assets in the determination of the purchase price allocations for acquisitions.
Removed
Annual reserve and resource estimates are also used to determine conversions of resources and exploration targets beyond the known reserve resulting from business combinations to depreciable reserves, in periods subsequent to the business combinations.
Removed
Reserves and resources are a culmination of many estimates and are not guarantees that we will recover the indicated quantities of metals or that we will do so at a profitable level. Valuation of Deferred Tax Assets Our deferred income tax assets include certain future tax benefits.
Removed
We record a valuation allowance against any portion of those deferred income tax assets when we believe, based on the weight of available evidence, it is more likely than not that some portion or all of the deferred income tax asset will not be realized.
Removed
We review the likelihood that we will realize the benefit of our deferred tax assets and therefore the need for valuation allowances on a quarterly basis, or more frequently if events indicate that a review is required.
Removed
In determining the requirement for a valuation allowance, the historical and projected financial results of the legal entity or consolidated group recording the net deferred tax asset is considered, along with all other available positive and negative evidence.
Removed
Certain categories of evidence carry more weight in the analysis than others based upon the extent to which the evidence may be objectively verified.
Removed
We look to the nature and severity of cumulative pretax losses (if any) in the current three-year period ending on the evaluation date or the expectation of future pretax losses and the existence and frequency of prior cumulative pretax losses. 91 We utilize a rolling twelve quarters of pre-tax income or loss as a measure of our cumulative results in recent years.
Removed
Concluding that a valuation allowance is not required is difficult when there is significant negative evidence which is objective and verifiable, such as cumulative losses in recent years. However, a cumulative three year loss is not solely determinative of the need for a valuation allowance. We also consider all other available positive and negative evidence in our analysis.
Removed
Other factors considered in the determination of the probability of the realization of the deferred tax assets include, but are not limited to: • Earnings history; • Projected future financial and taxable income based upon existing reserves and long-term estimates of commodity prices; • The duration of statutory carry forward periods; • Prudent and feasible tax planning strategies readily available that may alter the timing of reversal of the temporary difference; • Nature of temporary differences and predictability of reversal patterns of existing temporary differences; and • The sensitivity of future forecasted results to commodity prices and other factors.
Removed
The Company assesses available positive and negative evidence to estimate if sufficient future taxable income will be generated to utilize the existing deferred tax assets. A significant piece of objective negative evidence is recent pretax losses and/or expectations of future pretax losses. Such objective evidence limits the ability to consider other subjective evidence including projections for future growth.
Removed
The amount of the deferred tax asset considered realizable, however, could be adjusted if estimates of future taxable income during the carryforward period are increased or if objective negative evidence in the form of cumulative losses is no longer present and additional weight may be given to subjective evidence such as our projections for growth.
Removed
See Note 7 of Notes to Consolidated Financial Statements for additional detail on the valuation allowance.
Removed
Pension Plan Accounting Assumptions We are required to make a number of assumptions in estimating the future benefit obligations for, and fair value of assets included in, our pension plans, which impact the amount of liability and net periodic pension cost recognized related to our plans.
Removed
These include assumptions for applicable discount rates, the expected rate of return on plan assets and the rate of future employee compensation increases. See Note 6 of Notes to Consolidated Financial Statements for more information on the accounting for our pension plans and the related assumptions.
Removed
New Accounting Pronouncements Accounting Standard Updates that Became Effective in the Current Period In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, amending reportable segment disclosure requirements to include disclosure of incremental segment information on an annual and interim basis.
Removed
Among the disclosure enhancements are new disclosures regarding significant segment expenses that are regularly provided to the chief operating decision-maker and included within each reported measure of segment profit or loss, as well as other segment items bridging segment revenue to each reported measure of segment profit or loss.
Removed
The amendments in ASU 2023-07 are effective for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024, and are applied retrospectively. We retrospectively adopted the segment disclosures required under these amended in the year ended December 31, 2024 consolidated financial statements, with no changes to our previously disclosed reportable segments.
Removed
Accounting Standard Updates to Become Effective in Future Periods In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvement to Income Tax Disclosures, amending income tax disclosure requirements for the effective tax rate reconciliation and income taxes paid. The amendments in ASU 2023-09 are effective for fiscal years beginning after December 15, 2024 and are applied prospectively.
Removed
Early adoption and retrospective application of the amendments are permitted. As the amendments apply to income tax disclosures only, the Company does not expect adoption to have a material impact on our consolidated financial statements and disclosures.
Removed
In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income (Topic 220): Expense Disaggregation Disclosures, which includes amendments to require the disclosure of certain specific costs and expenses that are included 92 in a relevant expense caption on the face of the income statement.
Removed
Specific costs and expenses that would be required to be disclosed include: purchases of inventory, employee compensation, depreciation and intangible asset amortization. Additionally, a qualitative description of other items is required, equal to the difference between the relevant expense caption and the separately disclosed specific costs.
Removed
The amendments in ASU 2024-03 are effective for fiscal years beginning after December 15, 2026, and for interim periods beginning after December 15, 2027, and are applied retrospectively. The Company is evaluating the impact of the amendments on our consolidated financial statements and disclosures.
Removed
Guaran tor Subsidiaries Presented below are Hecla’s condensed consolidating financial statements as required by Rule 3-10 of Regulation S-X of the Securities Exchange Act of 1934, as amended, resulting from the guarantees by certain of Hecla's subsidiaries of the Senior Notes and IQ Notes (see Note 9 of Notes to Consolidated Financial Statements for more information).
Removed
As of December 31, 2024, the Guarantors consist of the following Hecla 100%-owned subsidiaries: Hecla Limited; Silver Hunter Mining Company; Rio Grande Silver, Inc.; Hecla MC Subsidiary, LLC; Hecla Silver Valley, Inc.; Burke Trading, Inc.; Hecla Montana, Inc.; Revett Silver Company; RC Resources, Inc.; Troy Mine Inc.; Revett Exploration, Inc.; Revett Holdings, Inc.; Mines Management, Inc.; Newhi, Inc.; Montanore Minerals Corp.; Hecla Alaska LLC; Hecla Greens Creek Mining Company; Hecla Admiralty Company; Hecla Juneau Mining Company; Klondex Holdings Inc.; Klondex Gold & Silver Mining Co.; Klondex Midas Holdings Limited; Klondex Aurora Mine Inc.; Klondex Hollister Mine Inc.; Hecla Quebec, Inc.; and Alexco Resource Corp.
Removed
We completed the offering of the Senior Notes on February 19, 2020 under our shelf registration statement previously filed with the SEC. We issued the IQ Notes in four equal tranches between July and October 2020.
Removed
The condensed consolidating financial statements below have been prepared from our financial information on the same basis of accounting as the consolidated financial statements set forth elsewhere in this report. Investments in the subsidiaries are accounted for under the equity method. Accordingly, the entries necessary to consolidate Hecla, the Guarantors, and our non-guarantor subsidiaries are reflected in the eliminations column.
Removed
In the course of preparing consolidated financial statements, we eliminate the effects of various transactions conducted between Hecla and its subsidiaries and among the subsidiaries. While valid at an individual subsidiary level, such activities are eliminated in consolidation because, when taken as a whole, they do not represent business activity with third-party customers, vendors, and other parties.
Removed
Examples of such eliminations include the following: • Investments in subsidiaries . The acquisition of a company results in an investment in debt or equity capital on the records of the parent company and a contribution to debt or equity capital on the records of the subsidiary. Such investments and capital contributions are eliminated in consolidation. • Capital contributions .
Removed
Certain of Hecla's subsidiaries do not generate cash flow, either at all or that is sufficient to meet their capital needs, and their cash requirements are routinely met with inter-company advances from their parent companies.
Removed
Generally on an annual basis, when not otherwise intended as debt, the boards of directors of such parent companies declare contributions of capital to their subsidiary companies, which increase the parents' investment and the subsidiaries' additional paid-in capital. In consolidation, investments in subsidiaries and related additional paid-in capital are eliminated. • Debt.
Removed
At times, inter-company debt agreements have been established between certain of Hecla's subsidiaries and their parents. The related debt liability and receivable balances, accrued interest expense (if any) and income activity (if any), and payments of principal and accrued interest amounts (if any) by the subsidiary companies to their parents are eliminated in consolidation. • Dividends.
Removed
Certain of Hecla's subsidiaries which generate cash flow routinely provide cash to their parent companies through inter-company transfers. On at least an annual basis, the boards of directors of such subsidiary companies declare dividends to their parent companies, which reduces the subsidiaries' retained earnings and increases the parents' dividend income. In consolidation, such activity is eliminated. • Deferred taxes .
Removed
Our ability to realize deferred tax assets and liabilities is considered for two consolidated tax groups of subsidiaries within the United States: The Nevada U.S. Group and the Hecla U.S. Group. Within each tax group, all subsidiaries' estimated future taxable income contributes to the ability of their tax group to realize all such assets and liabilities.
Removed
However, when Hecla's subsidiaries are viewed independently, we use the separate return method to assess the realizability of each subsidiary's deferred tax assets and whether a valuation allowance is required against such deferred tax assets.
Removed
In some instances, a parent company or subsidiary may possess deferred tax assets whose realization depends on the future taxable income of other subsidiaries on a consolidated-return basis, but would not be considered realizable if such parent or subsidiary filed on a separate stand-alone basis.
Removed
In such a situation, a valuation allowance is assessed on that subsidiary's deferred tax assets, with the resulting adjustment reported in the eliminations column of the guarantor and parent's financial statements, as is the case in the financial statements set forth below.
Removed
The separate return method can result in significant eliminations of deferred tax assets and liabilities 93 and related income tax provisions and benefits. Non-current deferred tax asset balances are included in other non-current assets on the consolidating balance sheets and make up a large portion of that item, particularly for the guarantor balances.
Removed
Separate financial statements of the Guarantors are not presented because the guarantees by the Guarantors are joint and several and full and unconditional, except for certain customary release provisions, including: (1) the sale or disposal of all or substantially all of the assets of the Guarantor; (2) the sale or other disposition of the capital stock of the Guarantor; (3) the Guarantor is designated as an unrestricted entity in accordance with the applicable provisions of the indenture; (4) Hecla ceases to be a borrower as defined in the indenture; and (5) upon legal or covenant defeasance or satisfaction and discharge of the indenture.
Removed
Condensed Consolidating Balance Sheets As of December 31, 2024 Parent Guarantors Non-Guarantors Eliminations Consolidated (in thousands) Assets Cash and cash equivalents $ 14,755 $ 11,624 $ 489 $ — $ 26,868 Other current assets 37,143 125,698 24,443 — 187,284 Properties, plants, equipment and mine development, net 603 2,685,407 8,109 — 2,694,119 Intercompany receivable (payable) (437,765 ) (650,923 ) 594,307 494,381 — Investments in subsidiaries 2,451,783 (52 ) — (2,451,731 ) — Other non-current assets 502,802 21,686 28,775 (480,474 ) 72,789 Total assets $ 2,569,321 $ 2,193,440 $ 656,123 $ (2,437,824 ) $ 2,981,060 Liabilities and Stockholders' Equity Current liabilities $ 41,612 $ 156,652 $ 24,099 $ (24,525 ) $ 197,838 Long-term debt 464,075 $ 6,406 $ (37 ) $ 38,483 508,927 Non-current portion of accrued reclamation — $ 109,650 $ 1,512 $ — 111,162 Non-current deferred tax liability 24,122 $ 86,141 $ 3 $ — 110,266 Other non-current liabilities — $ 13,353 $ — $ — 13,353 Stockholders' equity 2,039,512 $ 1,821,238 $ 630,546 $ (2,451,782 ) 2,039,514 Total liabilities and stockholders' equity $ 2,569,321 $ 2,193,440 $ 656,123 $ (2,437,824 ) $ 2,981,060 Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) Year Ended December 31, 2024 Parent Guarantors Non-Guarantors Eliminations Consolidated (in thousands) Revenues $ 1,291 $ 928,634 $ — $ — $ 929,925 Cost of sales (3,786 ) (544,459 ) — — (548,245 ) Depreciation, depletion, and amortization — (183,470 ) — — (183,470 ) General and administrative (20,404 ) (23,012 ) (1,989 ) — (45,405 ) Exploration and pre-development (520 ) (24,098 ) (2,703 ) — (27,321 ) Equity in earnings of subsidiaries 72,172 — — (72,172 ) — Other income (expense) (2,965 ) (65,154 ) 756 8,095 (59,268 ) Income (loss) before income and mining taxes 45,788 88,441 (3,936 ) (64,077 ) 66,216 (Provision) benefit from income and mining taxes (9,986 ) (12,479 ) 151 (8,099 ) (30,414 ) Net income (loss) 35,802 75,962 (3,785 ) (72,176 ) 35,802 Preferred stock dividends (552 ) — — — (552 ) Income (loss) applicable to common stockholders 35,250 75,962 (3,785 ) (72,176 ) 35,250 Net income (loss) 35,802 75,962 (3,785 ) (72,177 ) 35,802 Other comprehensive loss (16,103 ) — — — (16,103 ) Comprehensive income (loss) $ 19,699 $ 75,962 $ (3,785 ) $ (72,177 ) $ 19,699 Forward-Looking Statements 94 The foregoing discussion and analysis, as well as certain information contained elsewhere in this report, contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act, and are intended to be covered by the safe harbor created thereby.
Removed
See the discussion in Special Note on Forward-Looking Statements included prior to Item 1 . Item 7A.
Removed
Quantitative and Qualitative Disclosures about Market Risk The following discussion about our exposure to market risks and risk-management activities includes forward-looking statements that involve risk and uncertainties, as well as summarizes the financial instruments held by us at December 31, 2024 which are sensitive to changes in commodity prices, foreign exchange rates and interest rates and are not held for trading purposes.
Removed
Actual results could differ materially from those projected in the forward-looking statements. In the normal course of business, we also face risks that are either non-financial or non-quantifiable (see Item 1A. Risk Factors above). Metals Prices Changes in the market prices of silver, gold, lead and zinc can significantly affect our profitability and cash flow. As discussed in Item 7.
Removed
Management's Discussion and Analysis of Financial Condition and Results of Operations - Critical Accounting Estimates , metals prices can fluctuate due to numerous factors beyond our control. As discussed below, we utilize financially-settled forward and put option contracts to manage our exposure to changes in prices for silver, gold, zinc and lead.
Removed
Provisional Sales Sales of all metals products sold directly to customers, including by-product metals, are recorded as revenues when all performance obligations have been completed and the transaction price can be determined or reasonably estimated. For concentrate sales, revenues are generally recorded at the time of shipment at forward prices for the estimated month of settlement.
Removed
Due to the time elapsed between shipment to the customer and the final settlement with the customer we must estimate the prices at which sales of our metals will be settled. Previously recorded sales are adjusted to estimated settlement metals prices until final settlement by the customer.
Removed
Changes in metals prices between shipment and final settlement will result in changes to revenues previously recorded upon shipment. Metals prices can and often do fluctuate widely and are affected by numerous factors beyond our control (see Item 1A. Risk Factors – A substantial or extended decline in metals prices would have a material adverse effect on us ).
Removed
At December 31, 2024, metals contained in concentrate sales and exposed to future price changes totaled approximately 1.5 million ounces of silver, 2,000 ounces of gold, 39,150 tons of zinc, and 52,350 tons of lead.
Removed
If the price for each metal were to change by 10%, the change in the total value of the concentrates sold would be approximately $28.6 million.
Removed
However, as discussed in Commodity-Price Risk Management below, at times, subject to management's discretion, we utilize a program designed and intended to mitigate the risk of price adjustments with limited mark-to-market financially-settled forward contracts for our silver, gold, zinc and lead sales.
Removed
Therefore, the impact of changes in prices on the value of concentrates sold would be substantially offset by a gain or loss on forward contracts to the extent such contracts are utilized.
Removed
Commodity-Price Risk Management We may at times use commodity forward sales commitments, commodity swap contracts and commodity put and call option contracts to manage our exposure to fluctuation in the prices of certain metals we produce.
Removed
Contract positions are designed to ensure that we will receive a defined minimum price for certain quantities of our production, thereby partially offsetting our exposure to fluctuations in market prices.
Removed
Our risk management policy allows for up to 75% of our planned metals price exposure for five years into the future, with certain other limitations, to be covered under such programs that would establish a ceiling for prices to be realized on future sales.
Removed
These instruments do, however, expose us to (i) credit risk in the event of non-performance by counterparties for contracts in which the contract price exceeds the spot price of a commodity and (ii) price risk to the extent that the spot price exceeds the contract price for quantities of our production covered under contract positions.
Removed
We are currently using financially-settled forward contracts to manage the exposure to changes in prices of silver, gold, zinc and lead contained in our concentrate shipments between the time of shipment and final settlement.
Removed
In addition, we are using financially-settled forward contracts to manage the exposure to changes in prices of zinc and lead (but not silver and gold) contained in our forecasted future concentrate shipments.
Removed
The following tables summarize the quantities of metals committed under forward sales contracts at December 31, 2024 and 2023: 95 December 31, 2024 Ounces/pounds under contract (in 000's) Average price per ounce/pound Silver Gold Zinc Lead Silver Gold Zinc Lead (ounces) (ounces) (pounds) (pounds) (ounces) (ounces) (pounds) (pounds) Contracts on provisional sales 2025 settlements 1,535 2 20,834 14,661 $ 31.46 $ 2,673 $ 1.40 $ 0.97 Contracts on forecasted sales 2025 settlements - - 59,194 47,840 NA NA $ 1.39 $ 0.99 2026 settlements — — 6,283 52,911 NA NA $ 1.41 $ 1.03 December 31, 2023 Ounces/pounds under contract (in 000's) Average price per ounce/pound Silver Gold Zinc Lead Silver Gold Zinc Lead (ounces) (ounces) (pounds) (pounds) (ounces) (ounces) (pounds) (pounds) Contracts on provisional sales 2024 settlements 735 3 441 15,542 $ 24.40 $ 2,045 $ 1.51 $ 1.00 Contracts on forecasted sales 2024 settlements — — — 56,713 N/A N/A N/A $ 0.98 2025 settlements — — — 49,273 N/A N/A N/A $ 0.98 We designate the contracts for lead and zinc contained in our forecasted future shipments as hedges for accounting purposes, with gains and losses deferred to accumulated other comprehensive loss until the hedged product ships.
Removed
The forward contracts for silver and gold contained in our concentrate shipments have not been designated as hedges and are marked-to-market through earnings each period.
Removed
At December 31, 2024 and 2023, we recorded the following balances for the fair value of forward contracts held at that time (in millions): December 31, 2024 December 31, 2023 Balance sheet line item: Contracts in an asset position Contracts in a liability position Net asset (liability) Contracts in an asset position Contracts in a liability position Net asset (liability) Other current assets $ 11.5 $ — $ 11.5 $ 3.1 $ — $ 3.1 Other non-current assets $ 6.6 $ — $ 6.6 $ 1.5 $ — $ 1.5 Current derivatives liability $ — $ — $ — $ — $ (0.1 ) $ (0.1 ) Net realized and unrealized gains of approximately $13.4 million related to the effective portion of the contracts designated as hedges were included in accumulated other comprehensive loss as of December 31, 2024.
Removed
Realized and unrealized gains and losses will be transferred from accumulated other comprehensive loss to current earnings as the underlying forecasted sales transaction is recognized. We estimate approximately $7.9 million in net realized and unrealized gains included in accumulated other comprehensive loss as of December 31, 2024 will be reclassified to current earnings in the next twelve months.
Removed
The realized gains arose due to cash settlement of zinc and lead contracts in 2023 and zinc contracts in 2022 prior to maturity for cash proceeds of $8.5 million and $17.4 million, respectively.
Removed
We recognized a net gain of $1.3 million, including a $11.4 million gain transferred from accumulated other comprehensive income (loss), during 2024 on the contracts utilized to manage exposure to prices of metals in our concentrate shipments, which is included in sales.
Removed
The net gain recognized on the contracts offsets loss related to price adjustments on our provisional concentrate sales, both of which resulted from changes to silver, gold, lead and zinc prices between the time of sale and final settlement.
Removed
The net losses and gains recognized on the contracts offset gains and losses related to price adjustments on our provisional concentrate sales due to changes to silver, gold, lead and zinc prices between the time of sale and final settlement.
Removed
We recognized a net gain of $19.7 million during 2023, including a $20.6 million gain transferred from accumulated other comprehensive income (loss), on the contracts utilized to manage exposure to prices of metals in our concentrate shipments, which is included in sales.
Removed
The net gain recognized on the contracts offsets loss related to price adjustments on our provisional concentrate sales, both of which resulted from changes to silver, gold, lead and zinc prices between the time of sale and final settlement.
Removed
We recognized a net loss of $5.8 million, including a $6.0 million loss transferred from accumulated other comprehensive income (loss), during 2022 on the contracts utilized to manage exposure to prices of metals in our concentrate shipments, which is included in sales of products and other income.
Removed
The net loss recognized on the contracts offsets gains related to price adjustments on our provisional concentrate sales, both of which resulted from changes to silver, gold, lead and zinc prices between the time of sale and final settlement. 96 Foreign Currency We operate or have mining interests in Canada, which exposes us to risks associated with fluctuations in the exchange rates between the USD and CAD.
Removed
We have determined the functional currency for our Canadian operations is the USD. As such, foreign exchange gains and losses associated with the re-measurement of monetary assets and liabilities from CAD to USD are recorded to earnings each period. For the year ended December 31, 2024, we recognized a net foreign exchange gain of $7.6 million.
Removed
Foreign currency exchange rates are influenced by a number of factors beyond our control. A 10% change in the exchange rate between the USD and CAD from the rate at December 31, 2024 would have resulted in a change of approximately $7.5 million in our net foreign exchange gain or loss.
Removed
We utilize a program to manage our exposure to fluctuations in the exchange rate between the USD and CAD and the impact on our future operating costs denominated in CAD.
Removed
In November 2021, we initiated a similar program related to future development costs denominated in CAD, and have used a similar program, on a limited basis, related to interest payments on our IQ Notes (see Note 9 of Notes to Consolidated Financial Statements). The programs utilize forward contracts to buy CAD.
Removed
Each contract related to operating costs is designated as a cash flow hedge, while contracts related to development and interest costs have not been designated as hedges as of December 31, 2024.
Removed
Our risk management policy allows for up to 75% of our planned cost exposure for five years into the future to be covered under such programs, and for potential additional programs to manage other foreign currency-related exposure areas.
Removed
These instruments do, however, expose us to (i) credit risk in the form of non-performance by counterparties for contracts in which the contract exchange rate exceeds the spot exchange rate of a currency and (ii) exchange rate risk to the extent that the spot exchange rate exceeds the contract exchange rate for amounts of our operating costs covered under contract positions.
Removed
As of December 31, 2024, we have a total of 378 forward contracts outstanding to buy a total of CAD $279.3 million having a notional amount of USD$206.6 million with CAD-to-USD exchange rates ranging between 1.2816 and 1.4223, with the following exposures from 2025-2026: • Forecasted cash operating costs at Casa Berardi and Keno Hill of CAD $198.6 million at an average CAD-to-USD exchange rate of 1.34. • Forecasted capital expenditures at Casa Berardi of CAD$15.8 million at an average CAD-to-USD exchange rate of 1.345. • Forecasted capital expenditures at Keno Hill of CAD$47.7 million at an average CAD-to-USD exchange rate of 1.373. • Forecasted exploration expenditures at Casa Berardi and Keno Hill of CAD$5.6 million at an average CAD-to-USD exchange rate of 1.4025. • Forecasted Corporate costs of CAD$11.7 million at an average CAD-to-USD exchange rate of 1.368.

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