HL Hecla Mining Company

Record revenues and Adjusted EBITDA, Keno Hill delivers first profitable quarter, and Lucky Friday sets new milling record

Hecla Mining Company (NYSE:HL) ("Hecla", "we", "our" or the "Company") today announced first quarter 2025 financial and operating results.

FIRST QUARTER HIGHLIGHTS

 

Financial Achievements:

• Generated record sales of $261.3 million, an increase of 5% over the prior quarter.
• Reported net income applicable to common stockholders of $28.7 million, or $0.05 per share.
• Achieved record Adjusted EBITDA of $90.8 million during the quarter, $357.1 million during the last 12 months resulting in an improved net leverage ratio* of 1.5x compared to 1.6x in the prior quarter.5
• Consolidated silver total cost of sales of $129.6 million; cash cost and all-in sustaining cost ("AISC") per silver ounce (each after by-product credits) of $1.29 and $11.91, respectively.3,4
• Keno Hill posted its first profitable quarter under Hecla ownership, delivering $1.0 million of gross profit, helped by the elevated silver price. The mine continues to advance work to achieve commercial production status.
• Gold total cost of sales of $50.7 million; cash cost and all-in sustaining cost ("AISC") per gold ounce of $2,195 and $2,303, respectively.3,4

Operational Performance:

• Produced 4.1 million ounces of silver and 34,232 ounces of gold.
• Established a new quarterly milling record at Lucky Friday of 108,745 tons, beating the prior record set in the fourth quarter 2024.
• Increased Keno Hill production to 772,430 ounces of silver, growing 23% over the fourth quarter of 2024.

Exploration:

• Extended Greens Creek mineralization 400 feet down plunge to the south in the 200 South Zone.
• Confirmed and expanded mineralization at Keno Hill in the Bermingham Deposit through continued drilling.
• Initiated surface exploration programs at Midas in Nevada and Greens Creek, with drilling set to begin in May.

*Net leverage ratio is calculated as current debt, long-term debt and finance leases less cash divided by trailing twelve-month adjusted EBITDA.

STRATEGIC PRIORITIES FOR 2025

 

• Strengthen the balance sheet in 2025, targeting highest risk-adjusted return projects and increasing free cash flow generation.
• Advance Keno Hill's permitting and invest in critical infrastructure to attain sustained profitability.
• Optimize operating portfolio through continued strategic review of Casa Berardi to maximize value.
• Identify opportunities in our extensive exploration portfolio to create shareholder value.
• Implement standardized enterprise systems and advanced analytics to improve mine planning and cost management, driving sustained profitability and efficient capital allocation.

"This quarter demonstrates the strength and growth potential of our business, with record sales of $261.3 million representing a 5% increase over the prior quarter," said Rob Krcmarov, President & Chief Executive Officer. "With record Adjusted EBITDA of $90.8 million this quarter and $357.1 million over the past year, we have improved our net leverage ratio to 1.5x, reinforcing our solid financial foundation."

Krcmarov continued, "Our operational excellence continues to shine through, with Lucky Friday setting a new quarterly milling record and Keno Hill increasing silver production by 23% over the prior quarter. Looking ahead, we're focusing on four key strategic pillars: achieving operational excellence through standardized systems and continuous improvement; optimizing our portfolio through strategic reviews and focus capital allocation on high-return projects or those that enhance environmental or safety performance or reduce risk; intensifying our focus on financial discipline with a rigorous capital allocation framework; and leveraging our position as North America's largest silver producer to meet growing demand from green technology markets."

FINANCIAL AND OPERATIONAL OVERVIEW

 

In the following table and throughout this release, "total cost of sales" is comprised of cost of sales and other direct production costs and depreciation, depletion and amortization; "prior quarter" refers to the fourth quarter of 2024.

In Thousands unless stated otherwise

 

1Q-2025

 

4Q-2024

 

3Q-2024

 

2Q-2024

 

1Q-2024

 

FY-2024

Financial Highlights

 

 

 

 

 

 

 

 

 

 

 

 

Sales

 

$

261,339

 

 

$

249,655

 

 

$

245,085

 

 

$

245,657

 

 

$

189,528

 

 

$

929,925

 

Total cost of sales

 

$

187,335

 

 

$

181,321

 

 

$

185,799

 

 

$

194,227

 

 

$

170,368

 

 

$

731,715

 

Gross profit

 

$

74,004

 

 

$

68,334

 

 

$

59,286

 

 

$

51,430

 

 

$

19,160

 

 

$

198,210

 

Net income (loss) applicable to common stockholders

 

$

28,734

 

 

$

11,786

 

 

$

1,623

 

 

$

27,732

 

 

$

(5,891

)

 

$

35,250

 

Basic income (loss) per common share (in dollars)

 

$

0.05

 

 

$

0.02

 

 

$

0.00

 

 

$

0.04

 

 

$

(0.01

)

 

$

0.06

 

Adjusted EBITDA1

 

$

90,788

 

 

$

86,558

 

 

$

88,859

 

 

$

90,895

 

 

$

71,597

 

 

$

337,909

 

Total Debt

 

$

568,653

 

 

 

 

 

 

 

 

 

 

$

550,713

 

Net Debt to Adjusted EBITDA1

 

 

1.5

 

 

 

 

 

 

 

 

 

 

 

1.6

 

Cash provided by operating activities

 

$

35,738

 

 

$

67,470

 

 

$

55,009

 

 

$

78,718

 

 

$

17,080

 

 

$

218,277

 

Capital Investment

 

$

(54,095

)

 

$

(60,784

)

 

$

(55,699

)

 

$

(50,420

)

 

$

(47,589

)

 

$

(214,492

)

Free Cash Flow2

 

$

(18,357

)

 

$

6,686

 

 

$

(690

)

 

$

28,298

 

 

$

(30,509

)

 

$

3,785

 

Production Summary

 

 

 

 

 

 

 

 

 

 

 

 

Silver ounces produced

 

 

4,112,394

 

 

 

3,874,344

 

 

 

3,645,004

 

 

 

4,458,484

 

 

 

4,192,098

 

 

 

16,169,930

 

Silver payable ounces sold

 

 

3,517,970

 

 

 

3,488,207

 

 

 

3,729,782

 

 

 

3,785,285

 

 

 

3,481,884

 

 

 

14,485,158

 

Gold ounces produced

 

 

34,232

 

 

 

35,727

 

 

 

32,280

 

 

 

37,324

 

 

 

36,592

 

 

 

141,923

 

Gold payable ounces sold

 

 

29,655

 

 

 

33,563

 

 

 

31,414

 

 

 

35,276

 

 

 

32,189

 

 

 

132,442

 

Cash Costs and AISC, each after by-product credits

Silver cash costs per ounce 3

 

$

1.29

 

 

$

(0.27

)

 

$

4.46

 

 

$

2.08

 

 

$

4.78

 

 

$

2.72

 

Silver AISC per ounce 4

 

$

11.91

 

 

$

11.51

 

 

$

15.29

 

 

$

12.54

 

 

$

13.10

 

 

$

13.06

 

Gold cash costs per ounce 3

 

$

2,195

 

 

$

1,936

 

 

$

1,754

 

 

$

1,701

 

 

$

1,669

 

 

$

1,762

 

Gold AISC per ounce 4

 

$

2,303

 

 

$

2,203

 

 

$

2,059

 

 

$

1,825

 

 

$

1,899

 

 

$

1,990

 

Realized Prices

 

 

 

 

 

 

 

 

 

 

 

 

Silver, $/ounce

 

$

33.59

 

 

$

30.19

 

 

$

29.43

 

 

$

29.77

 

 

$

24.77

 

 

$

28.58

 

Gold, $/ounce

 

$

2,940

 

 

$

2,656

 

 

$

2,522

 

 

$

2,338

 

 

$

2,094

 

 

$

2,403

 

Lead, $/pound

 

$

0.92

 

 

$

0.94

 

 

$

0.93

 

 

$

1.06

 

 

$

0.97

 

 

$

0.97

 

Zinc, $/pound

 

$

1.29

 

 

$

1.53

 

 

$

1.36

 

 

$

1.51

 

 

$

1.10

 

 

$

1.37

 

 

Sales increased to $261.3 million, a new quarterly record, or 5% over the prior quarter, reflecting higher realized prices for precious metals, which were partially offset by lower silver, gold and zinc sales volumes. Lead sales volumes increased primarily due to a strong operational quarter at Lucky Friday.

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

Net income applicable to common stockholders was $28.7 million compared to $11.8 million in the prior quarter. The improvement was primarily related to:

• Positive fair value adjustments, net of $3.6 million, due to an increase in the fair value of our marketable securities portfolio.
• Ramp-up and suspension costs decreased by $6.3 million, reflecting the impact of Keno Hill generating gross profit during the quarter and not contributing any costs to ramp-up and suspension costs in the first quarter.

Partly offset by:

• An increase in income and mining tax provision of $8.1 million, reflecting higher taxable income realized by our US tax group while unable to recognize losses in Canada.
• An increase in general and administrative costs of $3.0 million reflecting a combination of headcount additions and higher incentive compensation accruals.
• A foreign exchange loss of $0.4 million versus a gain of $4.1 million, reflecting the impact of the U.S. dollar depreciation compared to the Canadian dollar.

Consolidated silver total cost of sales was $129.6 million, an increase of $6.2 million or 5% from the prior quarter, primarily due to higher production costs at Lucky Friday of $3.9 million reflecting higher mining, contractor, maintenance and profit sharing costs, and consumables usage, and $2 million at Greens Creek reflecting higher labor and fuel purchase costs.

Cash costs and AISC per silver ounce, each after by-product credits, were $1.29 and $11.91, respectively, higher versus the prior quarter, primarily due to higher production costs, partially offset by lower treatment charges, higher by-product credits (due to higher realized gold prices) and higher silver production. AISC was higher due to additional corporate general and administrative expenses, partially offset by lower sustaining capital.3,4

Gold total cost of sales for Casa Berardi decreased by $1 million due to lower sales volumes.

Cash costs and AISC per gold ounce, each after by-product credits, were $2,195 and $2,303 respectively, an increase over the prior quarter as lower production costs and sustaining capital spend was partially offset by lower gold production.3,4 Casa Berardi costs are anticipated to improve late in the third quarter of the year as the strip ratio of the 160 pit is expected to decline.

Adjusted EBITDA was $90.8 million, a 5% increase over the prior quarter. The ratio of net debt to adjusted EBITDA (net leverage ratio) improved to 1.5x from 1.6x in the prior quarter due to strong EBITDA generation during the last 12 months, which offset the $21.1 million increase in net debt.1 Cash and cash equivalents at March 31, 2025 were $23.7 million and included $43 million drawn on the revolving credit facility.

Cash provided by operating activities was $35.7 million, a decrease of $31.7 million, primarily attributable to unfavorable working capital changes of $48.2 million, including an increase of accounts receivable reflecting the higher price environment and timing of sales, inventory builds at Casa Berardi and Keno Hill, the semi-annual interest payment on our notes and the timing of accounts payable vendor payments and annual incentive compensation payments.

Capital investment was $54.1 million, compared to $60.8 million in the prior quarter, primarily due to lower capital investment at Greens Creek of $5.0 million and Keno Hill of $5.1 million reflecting the fact that the first quarter is historically a low capital investment quarter, due to the winter weather.

Free cash flow was negative $18.4 million, compared to positive $6.7 million in the prior quarter, with the decrease primarily due to lower cash flow from operations, reflecting negative working capital adjustments ($48.2 million), some of which are expected to reverse in the second quarter.2

Hedging Update: Forward Sales Contracts for Base Metals and Foreign Currency

The Company uses financially settled forward sales contracts to manage exposures to zinc and lead price changes in forecasted concentrate shipments. On March 31, 2025, the Company had contracts covering approximately 20% and 29% of the forecasted payable zinc and lead production for 2025 - 2026 at an average price of $1.39 and $1.02 per pound, respectively.

The Company also manages Canadian dollar ("CAD") exposure through forward contracts. At March 31, 2025, the Company had hedged approximately 37% of forecasted Casa Berardi and Keno Hill CAD denominated direct production costs through 2026 at an average CAD/USD rate of 1.35. The Company has also hedged approximately 24% of Casa Berardi and Keno Hill CAD denominated total capital expenditures through 2026 at 1.39.

OPERATIONS OVERVIEW

 

Greens Creek Mine - Alaska

 

Dollars are in thousands except cost per ton

 

1Q-2025

 

4Q-2024

 

3Q-2024

 

2Q-2024

 

1Q-2024

 

FY-2024

GREENS CREEK

 

 

 

 

 

 

 

 

 

 

 

 

Operating Highlights

 

 

 

 

 

 

 

 

 

 

 

 

Tons of ore processed

 

 

212,899

 

 

 

224,521

 

 

 

212,863

 

 

 

225,746

 

 

 

232,188

 

 

 

895,318

 

Total production cost per ton

 

$

240.00

 

 

$

211.64

 

 

$

222.39

 

 

$

218.09

 

 

$

212.92

 

 

$

216.15

 

Ore grade milled - Silver (oz./ton)

 

 

11.75

 

 

 

10.72

 

 

 

11.22

 

 

 

12.60

 

 

 

13.30

 

 

 

11.99

 

Ore grade milled - Gold (oz./ton)

 

 

0.09

 

 

 

0.09

 

 

 

0.08

 

 

 

0.09

 

 

 

0.09

 

 

 

0.09

 

Ore grade milled - Lead (%)

 

 

2.58

 

 

 

2.61

 

 

 

2.44

 

 

 

2.50

 

 

 

2.60

 

 

 

2.52

 

Ore grade milled - Zinc (%)

 

 

6.77

 

 

 

6.59

 

 

 

6.60

 

 

 

6.20

 

 

 

6.30

 

 

 

6.41

 

Ore grade milled - Copper (%)

 

 

0.25

 

 

 

0.25

 

 

 

0.31

 

 

 

0.27

 

 

 

0.28

 

 

 

0.27

 

Silver produced (oz.)

 

 

2,002,560

 

 

 

1,901,418

 

 

 

1,857,314

 

 

 

2,243,551

 

 

 

2,478,594

 

 

 

8,480,877

 

Gold produced (oz.)

 

 

13,759

 

 

 

14,804

 

 

 

11,746

 

 

 

14,137

 

 

 

14,588

 

 

 

55,275

 

Lead produced (tons)

 

 

4,496

 

 

 

4,808

 

 

 

4,165

 

 

 

4,513

 

 

 

4,834

 

 

 

18,320

 

Zinc produced (tons)

 

 

12,835

 

 

 

13,241

 

 

 

12,585

 

 

 

12,400

 

 

 

13,062

 

 

 

51,288

 

Copper produced (tons)

 

 

411

 

 

 

427

 

 

 

490

 

 

 

462

 

 

 

495

 

 

 

1,874

 

Financial Highlights

 

 

 

 

 

 

 

 

 

 

 

 

Sales

 

$

118,143

 

 

$

112,037

 

 

$

116,568

 

 

$

95,659

 

 

$

97,310

 

 

$

421,574

 

Total cost of sales

 

$

(69,638

)

 

$

(67,887

)

 

$

(73,597

)

 

$

(56,786

)

 

$

(69,857

)

 

$

(268,127

)

Gross profit

 

$

48,505

 

 

$

44,150

 

 

$

42,971

 

 

$

38,873

 

 

$

27,453

 

 

$

153,447

 

Cash flow from operations

 

$

43,858

 

 

$

60,442

 

 

$

54,076

 

 

$

43,276

 

 

$

28,706

 

 

$

186,500

 

Exploration

 

$

343

 

 

$

1,129

 

 

$

4,325

 

 

$

2,011

 

 

$

551

 

 

$

8,016

 

Capital additions

 

$

(10,759

)

 

$

(15,798

)

 

$

(11,466

)

 

$

(11,704

)

 

$

(8,827

)

 

$

(47,795

)

Free cash flow 2

 

$

33,442

 

 

$

45,773

 

 

$

46,935

 

 

$

33,583

 

 

$

20,430

 

 

$

146,721

 

Cash Costs and AISC, each after by-product credits

 

 

 

 

 

 

 

 

 

 

 

 

Cash cost per ounce, after by-product credits 3

 

$

(4.08

)

 

$

(5.86

)

 

$

0.93

 

 

$

0.19

 

 

$

3.45

 

 

$

(0.05

)

AISC per ounce, after by-product credits 4

 

$

(0.03

)

 

$

2.62

 

 

$

7.04

 

 

$

5.40

 

 

$

7.16

 

 

$

5.65

 

 

Operational Review

Greens Creek produced 2.0 million ounces of silver and 13,759 ounces of gold. Silver production increased 5% over the prior quarter due to a 10% increase in silver grade milled, partially offset by lower tons milled. Zinc and lead production declined 3% and 6% respectively, primarily due to lower mill throughput.

The silver grade milled averaged higher month-over-month throughout the quarter, averaging nearly 13 ounce per ton ("opt") in March. Backfill and development activities also continued to improve throughout the quarter.

First Quarter Financial Review

Sales were $118.1 million, an increase of 5% over the prior quarter, benefiting from higher realized precious metals prices which were partially offset by lower lead and zinc prices, as well as lower concentrate sales due to timing of sales.

Total cost of sales was $69.6 million, an increase of 3% over the prior quarter, primarily due to higher labor and fuel volumes for elevated power generation requirements. Cash cost per silver ounce, after by-product credits, was negative $4.08, and increased over the prior quarter due to higher labor and fuel costs. AISC per silver ounce, after by-product credits, was negative $0.03 and decreased over the prior quarter due to lower capital investment.3,4

Cash flow from operations was $43.9 million, a decrease of 27% over the prior quarter due to unfavorable working capital changes tied to timing of sales and higher vendor payments. Capital investment was $10.8 million, a decrease of 32% over the prior quarter.

Free cash flow was $33.4 million, a decrease of 27% from the prior quarter as lower capital investment did not fully offset the decrease in cash flow from operations.

Outlook Revised

Production guidance for 2025 at Greens Creek is maintained at 8.1-8.8 million ounces of silver, 44.0-48.0 thousand ounces of gold, or 18.0-19.5 million silver equivalent ounces when factoring in all metals (silver, gold, lead, zinc and copper). Greens Creek's cost outlook has been lowered, maintaining cost of sales guidance at $289 million (includes depreciation) but lowering cash cost guidance to $0.25-$0.75 from the prior $2.00-$2.50 (after by-product credits), per silver ounce, and AISC to $6.50-$7.25 from $8.75-$9.50 (after by-product credits), per silver ounce.3,4 Capital investment guidance is unchanged at $48-$51 million in sustaining capital and $10-$12 million in growth capital. Capital investment at Greens Creek is expected to increase in the second and third quarters (relative to the first quarter) due to the seasonal construction period. The Company expects the Greens Creek operation to have 3-6 days of planned maintenance in the second quarter, which is the historical norm for quarterly maintenance downtime at Greens Creek. In approximately mid-June, the mine expects to shift to self-generated power while Alaska Electric Light and Power, the utility company supplying power to Greens Creek, goes offline for a planned 8-week maintenance shutdown, which will add costs to the operation of Greens Creek during this period as self-generated power is more costly than purchased power from the utility.

Please refer to guidance section of the release for production, cost, and capital guidance for 2025.

 

Lucky Friday Mine - Idaho

 

Dollars are in thousands except cost per ton

 

1Q-2025

 

4Q-2024

 

3Q-2024

 

2Q-2024

 

1Q-2024

 

FY-2024

LUCKY FRIDAY

 

 

 

 

 

 

 

 

 

 

 

 

Operating Highlights

 

 

 

 

 

 

 

 

 

 

 

 

Tons of ore processed

 

 

108,745

 

 

 

108,585

 

 

 

104,281

 

 

 

107,441

 

 

 

86,234

 

 

 

406,541

 

Total production cost per ton

 

$

258.59

 

 

$

250.71

 

 

$

260.99

 

 

$

233.99

 

 

$

233.10

 

 

$

245.19

 

Ore grade milled - Silver (oz./ton)

 

 

13.0

 

 

 

13.0

 

 

 

12.1

 

 

 

12.9

 

 

 

12.9

 

 

 

12.7

 

Ore grade milled - Lead (%)

 

 

8.2

 

 

 

8.5

 

 

 

7.9

 

 

 

8.1

 

 

 

8.2

 

 

 

8.2

 

Ore grade milled - Zinc (%)

 

 

4.0

 

 

 

4.2

 

 

 

3.9

 

 

 

3.6

 

 

 

3.9

 

 

 

3.9

 

Silver produced (oz.)

 

 

1,332,252

 

 

 

1,336,910

 

 

 

1,184,819

 

 

 

1,308,155

 

 

 

1,061,065

 

 

 

4,890,949

 

Lead produced (tons)

 

 

8,480

 

 

 

8,685

 

 

 

7,662

 

 

 

8,229

 

 

 

6,689

 

 

 

31,265

 

Zinc produced (tons)

 

 

3,681

 

 

 

3,814

 

 

 

3,528

 

 

 

3,320

 

 

 

2,851

 

 

 

13,513

 

Financial Highlights

 

 

 

 

 

 

 

 

 

 

 

 

Sales

 

$

63,194

 

 

$

57,671

 

 

$

51,072

 

 

$

59,071

 

 

$

35,340

 

 

$

203,154

 

Total cost of sales

 

$

(44,049

)

 

$

(40,157

)

 

$

(39,286

)

 

$

(37,523

)

 

$

(27,519

)

 

$

(144,485

)

Gross profit

 

$

19,145

 

 

$

17,514

 

 

$

11,786

 

 

$

21,548

 

 

$

7,821

 

 

$

58,669

 

Cash flow from operations

 

$

23,805

 

 

$

25,329

 

 

$

34,374

 

 

$

44,546

 

 

$

27,112

 

 

$

131,361

 

Capital additions

 

$

(15,446

)

 

$

(12,608

)

 

$

(11,178

)

 

$

(10,818

)

 

$

(14,988

)

 

 

(49,592

)

Free cash flow 2

 

$

8,359

 

 

$

12,721

 

 

$

23,196

 

 

$

33,728

 

 

$

12,124

 

 

$

81,769

 

Cash Costs and AISC, each after by-product credits

 

 

 

 

 

 

 

 

 

 

 

 

Cash cost per ounce, after by-product credits 3

 

$

9.37

 

 

$

7.68

 

 

$

9.98

 

 

$

5.32

 

 

$

8.85

 

 

$

7.80

 

AISC per ounce, after by-product credits 4

 

$

20.08

 

 

$

17.12

 

 

$

19.40

 

 

$

12.74

 

 

$

17.36

 

 

$

16.50

 

 

Operational Review

Lucky Friday set a new quarterly milling record of 108,745 tons, beating the record set in the prior quarter. Silver production was 1.3 million ounces, flat over the prior quarter. Lead and zinc production was 8,480 tons and 3,681 tons, respectively, declining 2% and 3% respectively over the prior quarter, both impacted by modestly lower milled grades.

First Quarter Financial Review

Sales were $63.2 million, an increase of 10% over the prior quarter due to a higher realized silver price and a higher volume of zinc concentrate sales, partially offset by lower realized lead and zinc prices.

Total cost of sales was $44.0 million, up 10% over the prior quarter, driven by higher depreciation expense (+14%), labor costs (+6%) partially due to a rise in profit sharing payments to miners as a result of better performance, consumables (+9%) and cost for drill contractors. Cash costs and AISC per silver ounce, each after by-product credits, was $9.37 and $20.08, respectively, and increased over the prior quarter primarily due to the higher operating costs as silver volumes were largely flat when compared to the prior quarter.3,4

Cash flow from operations was $23.8 million, a decrease of 6% over the prior quarter which was unfavorably impacted by working capital changes, largely tied to changes in accounts receivable. Capital investment increased to $15.4 million, a 23% increase over the prior quarter, but trending slightly below plan for the year on an annualized basis. Free cash flow was $8.4 million and decreased over the prior quarter due to the items mentioned above.

Outlook Revised

There is no change to the 2025 production guidance for Lucky Friday, maintaining silver production guidance of 4.7-5.1 million ounces of silver, or 8.0-8.5 million silver equivalent ounces when factoring in all metals (silver, lead and zinc). Guidance for cost of sales is revised up to $165 million from $135 million (includes depreciation), with the change about equally split between cash and non-cash items. Cash cost per silver ounce (after by-product credits) guidance is revised up to $7.00-$7.50 from $4.25-$4.75 and guidance for AISC per silver ounce (after by-product credits) is revised up to $20.00-$21.50 from $16.50-$18.00. The primary drivers of the cash cost and AISC guidance increase at Lucky Friday are higher labor and burden costs, insurance costs, higher than budgeted profit sharing expense, higher costs associated with contractor use intensity, and higher costs than budgeted for some consumables.3,4 Capital guidance for Lucky Friday in 2025 is unchanged, with investment expected to increase in the second and third quarters (relative to the first quarter) due to the seasonal construction period. The Company expects the Lucky Friday operation to have 3-6 days of planned maintenance in the second quarter, which is the historical norm for quarterly maintenance downtime at the mine.

Please refer to guidance section of the release for production, cost, and capital guidance for 2025.

Keno Hill - Yukon Territory

Dollars are in thousands except cost per ton

 

1Q-2025

 

4Q-2024

 

3Q-2024

 

2Q-2024

 

1Q-2024

 

FY-2024

KENO HILL

 

 

 

 

 

 

 

 

 

 

 

 

Operating Highlights

 

 

 

 

 

 

 

 

 

 

 

 

Tons of ore processed

 

 

27,411

 

 

 

23,123

 

 

 

24,027

 

 

 

36,977

 

 

 

25,165

 

 

 

109,292

 

Ore grade milled - Silver (oz./ton)

 

 

29.0

 

 

 

29.6

 

 

 

25.7

 

 

 

25.1

 

 

 

26.3

 

 

 

26.2

 

Ore grade milled - Lead (%)

 

 

4.0

 

 

 

3.9

 

 

 

3.0

 

 

 

2.4

 

 

 

2.4

 

 

 

2.8

 

Ore grade milled - Zinc (%)

 

 

1.9

 

 

 

1.3

 

 

 

2.4

 

 

 

1.4

 

 

 

1.3

 

 

 

1.6

 

Silver produced (oz.)

 

 

772,430

 

 

 

629,828

 

 

 

597,293

 

 

 

900,440

 

 

 

646,312

 

 

 

2,773,873

 

Lead produced (tons)

 

 

1,031

 

 

 

839

 

 

 

670

 

 

 

845

 

 

 

576

 

 

 

2,930

 

Zinc produced (tons)

 

 

419

 

 

 

246

 

 

 

492

 

 

 

471

 

 

 

298

 

 

 

1,507

 

Financial Highlights

 

 

 

 

 

 

 

 

 

 

 

 

Sales

 

$

16,909

 

 

$

15,356

 

 

$

19,809

 

 

$

28,950

 

 

 

10,847

 

 

$

74,962

 

Total cost of sales

 

$

(15,871

)

 

$

(15,356

)

 

$

(19,809

)

 

$

(28,950

)

 

 

(10,847

)

 

$

(74,962

)

Gross profit

 

$

1,038

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

Cash flow from operations

 

$

(9,661

)

 

$

(1,752

)

 

$

(6,811

)

 

$

(465

)

 

$

(8,720

)

 

$

(17,748

)

Exploration

 

$

1,692

 

 

$

2,605

 

 

$

2,664

 

 

$

2,019

 

 

$

498

 

 

$

7,786

 

Capital additions

 

$

(10,436

)

 

$

(15,584

)

 

$

(14,406

)

 

$

(14,533

)

 

$

(10,346

)

 

$

(54,869

)

Free cash flow 2

 

$

(18,405

)

 

$

(14,731

)

 

$

(18,553

)

 

$

(12,979

)

 

$

(18,568

)

 

$

(64,831

)

Operational Review

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

Mill throughput during the quarter was impacted by power curtailments by Yukon Energy Corporation ("YEC"), which was carrying out powerline maintenance. YEC also experienced a turbine failure at its hydroelectric plant in Whitehorse in late October 2024, which is scheduled to be repaired in August of 2025.

First Quarter Financial Review

Sales were $16.9 million, increasing 10% over the prior quarter primarily due to a higher realized silver price despite not selling all metal produced in the quarter. Total cost of sales was $15.9 million, flat over the prior quarter. Because Keno Hill realized positive gross profit for the quarter, there was no allocation made to ramp-up and suspension costs, as compared to the prior quarter when $6.3 million of site-specific Keno Hill ramp-up costs were recognized.

Cash flow from operations was negative $9.7 million, a decline over the prior quarter due to unfavorable working capital changes tied to the inventory build ($6.9 million) and changes in accounts payable ($3.2 million) reflecting higher vendor payments in the quarter. Capital investments during the quarter were $10.4 million, $5.1 million lower than the prior quarter. Free cash flow was negative $18.4 million, a decline of $3.7 million over the prior quarter due to the lower cash flow from operations, partially offset by the lower capital investment during the quarter.

Outlook

Power curtailment by YEC at Keno Hill has improved in 2025, with the previously reported eight days of operational stoppage remaining unchanged through quarter end. Further disruptions are not expected during warmer weather months, during which time it is expected YEC's generating demand is lower. The Company estimates the power curtailments during planned August YEC maintenance downtime could lower production by approximately 90,000 ounces of silver in the third quarter, which was previously known and factored into our initial 2025 guidance released in February. Keno Hill is expected to have 3-6 days of planned maintenance in the second quarter, which is the historical norm for quarterly maintenance downtime at the mine.

Keno Hill has generated marginal profits for the company at current throughput rates and prices. Our immediate focus is to advance permits and successfully execute infrastructure projects, with the goal of putting the mine on a path toward achieving its current permitted capacity of 440 tons per day which, at current prices, is expected to generate positive free cash flow. We estimate that to be sustainably profitable at our current long-range metals prices (which are significantly lower than current prices), throughput rates would need to reach approximately 500 to 600 tons per day, due to Keno Hill's high fixed costs. Currently Keno Hill is not configured to sustainably produce 440 tons per day (although the mill has achieved that rate for multiple weeks on end during test run periods). Achieving 440 or higher tons per day would require ore from both the Bermingham deposit and the lower grade Flame & Moth deposit, significant capital expenditures, obtaining permits, executing projects, mine development and maintaining community support. If any one of these were not to occur, particularly if prices were to decrease from current prices, Keno Hill as currently configured would not be profitable, and placing the operation on care and maintenance would be an option.

Please refer to (i) the discussion of commercial production at Keno Hill in the Company's Form 10-Q filed with the SEC on May 1, 2025 and (ii) the guidance section of the release for detailed production, cost, and capital guidance for 2025.

 

Casa Berardi - Quebec

 

Dollars are in thousands except cost per ton

 

1Q-2025

 

4Q-2024

 

3Q-2024

 

2Q-2024

 

1Q-2024

 

FY-2024

CASA BERARDI

 

 

 

 

 

 

 

 

 

 

 

 

Operating Highlights

 

 

 

 

 

 

 

 

 

 

 

 

Tons of ore processed - underground

 

 

111,972

 

 

 

113,068

 

 

 

101,308

 

 

 

118,485

 

 

 

123,123

 

 

 

455,984

 

Tons of ore processed - surface pit

 

 

279,196

 

 

 

292,148

 

 

 

268,291

 

 

 

248,494

 

 

 

258,503

 

 

 

1,067,436

 

Tons of ore processed - total

 

 

391,168

 

 

 

405,216

 

 

 

369,599

 

 

 

366,979

 

 

 

381,626

 

 

 

1,523,420

 

Surface tons mined - ore and waste

 

 

5,376,620

 

 

 

6,708,708

 

 

 

5,603,101

 

 

 

4,064,091

 

 

 

3,639,297

 

 

 

20,015,197

 

Total production cost per ton

 

$

115.19

 

 

$

100.34

 

 

$

97.82

 

 

$

107.84

 

 

$

96.53

 

 

$

100.58

 

Ore grade milled - Gold (oz./ton) - underground

 

 

0.11

 

 

 

0.12

 

 

 

0.11

 

 

 

0.14

 

 

 

0.14

 

 

 

0.13

 

Ore grade milled - Gold (oz./ton) - surface pit

 

 

0.04

 

 

 

0.04

 

 

 

0.05

 

 

 

0.04

 

 

 

0.04

 

 

 

0.04

 

Ore grade milled - Gold (oz./ton) - combined

 

 

0.06

 

 

 

0.06

 

 

 

0.06

 

 

 

0.07

 

 

 

0.07

 

 

 

0.07

 

Gold produced (oz.) - underground

 

 

9,414

 

 

 

11,034

 

 

 

9,913

 

 

 

13,719

 

 

 

13,707

 

 

 

48,373

 

Gold produced (oz.) - surface pit

 

 

11,059

 

 

 

9,889

 

 

 

10,621

 

 

 

9,468

 

 

 

8,297

 

 

 

38,275

 

Gold produced (oz.) - total

 

 

20,473

 

 

 

20,923

 

 

 

20,534

 

 

 

23,187

 

 

 

22,004

 

 

 

86,648

 

Silver produced (oz.) - total

 

 

5,152

 

 

 

6,188

 

 

 

5,578

 

 

 

6,338

 

 

 

6,127

 

 

 

24,231

 

Financial Highlights

 

 

 

 

 

 

 

 

 

 

 

 

Sales

 

$

56,005

 

 

$

59,164

 

 

$

50,308

 

 

$

58,623

 

 

$

41,584

 

 

$

209,679

 

Total cost of sales

 

$

(50,682

)

 

$

(51,734

)

 

$

(46,280

)

 

$

(67,340

)

 

$

(58,260

)

 

$

(223,614

)

Gross profit (loss)

 

$

5,323

 

 

$

7,430

 

 

$

4,028

 

 

$

(8,717

)

 

$

(16,676

)

 

$

(13,935

)

Cash flow from operations

 

$

9,900

 

 

$

12,356

 

 

$

15,305

 

 

$

17,816

 

 

$

3,186

 

 

$

48,663

 

Exploration

 

$

—

 

 

$

—

 

 

$

—

 

 

$

315

 

 

$

685

 

 

$

1,000

 

Capital additions

 

$

(16,257

)

 

$

(16,406

)

 

$

(18,606

)

 

$

(12,376

)

 

$

(13,316

)

 

$

(60,704

)

Free cash flow 2

 

$

(6,357

)

 

$

(4,050

)

 

$

(3,301

)

 

$

5,755

 

 

$

(9,445

)

 

$

(11,041

)

Cash Costs and AISC, each after by-product credits

 

 

 

 

 

 

 

 

 

 

 

 

Cash cost per ounce, after by-product credits 3

 

$

2,195

 

 

$

1,936

 

 

$

1,754

 

 

$

1,701

 

 

$

1,669

 

 

$

1,762

 

AISC per ounce, after by-product credits 4

 

$

2,303

 

 

$

2,203

 

 

$

2,059

 

 

$

1,825

 

 

$

1,899

 

 

$

1,990

 

 

Operational Review

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

First Quarter Financial Review

Sales were $56.0 million, a decrease of 5% over the prior quarter, primarily due to lower ounces sold, partially offset by a higher average realized gold price.

Total cost of sales was $50.7 million, a decrease of 2% over the prior quarter. Cash costs and AISC per gold ounce, each after by-product credits, were $2,195 and $2,303 respectively, an increase over the prior quarter as lower production costs and sustaining capital investment was partially offset by lower gold production.3,4 Casa Berardi costs are anticipated to improve late in the third quarter of the year as the strip ratio of the 160 pit is expected to decline.

Cash flow from operations was $9.9 million, a 20% decrease over the prior quarter due to unfavorable working capital changes (timing of accounts payable payments and an increase in inventory). Capital investment was $16.3 million, lower by $0.1 million over the prior quarter. Free cash flow was negative $6.4 million, a $2.3 million decrease over the prior quarter due to lower cash flow from operations.2

Outlook

Casa Berardi is advancing toward a more streamlined and efficient surface-only operation, with plans to focus exclusively on the 160 pit by mid-2025. This transition follows the successful extraction of higher-margin stopes from the west underground mine, positioning the Company for continued productivity and cost-effective mining.

Currently there is no change to the Casa Berardi production guidance of 76.0-82.0koz of gold production in 2025. Casa Berardi guidance for cost of sales (includes depreciation) is revised up to $180 million from $165.5 million due to increased open pit contractor costs related to extending the work by two months from the prior plan, and other cost increases. Cash cost guidance (after by-product credits, per gold ounce) is unchanged at $1,500-$1,650/oz and AISC (after by-product credits, per gold ounce) guidance is also unchanged at $1,750-$1,950/oz.3,4 First quarter cash costs and AISC are above the full year guidance ranges on a pro rata basis but are in line with the Company's expectations and should improve in second half 2025 for the reasons noted above, with the fourth quarter expected to benefit the most in terms of cost improvement. Total capital investment guidance for 2025 is unchanged at $58-$63 million. Capital investment at Casa Berardi is expected to increase over the second and third quarters due to seasonal construction period plans, with tailings construction being a major factor in the expected increase during the warmer months of the year. Casa Berardi is expected to have 3-6 days of planned maintenance in the second quarter, which is the historical norm for quarterly maintenance downtime at the mine.

Casa Berardi is expected to produce gold from the 160 pit and associated stockpiles until 2027. At current gold prices, the 160 pit is expected to generate strong free cash flow late third quarter (when the pit's strip ratio is expected to decline) until 2027. Upon completion of mining at the 160 pit, and milling the remaining stockpiles, Casa Berardi is expected to have a production gap commencing in 2027 and continuing until 2032 or later, assuming no underground mine life extension. During this time, the focus is expected to be on investing in permitting, infrastructure and equipment, as well as de-watering and stripping two expected new open pits, the Principal and West Mine Crown Pillar pits. Upon conclusion of the hiatus and related permitting and construction, the Company expects the mine to generate significant free cash flow at current gold prices.

Given the expected hiatus in future production and the uncertainty surrounding permitting and timing of construction of the new open pits, the Company continues to consider strategic alternatives for Casa Berardi, which is ongoing and includes evaluating scenarios such as (i) an outright disposal, (ii) joint venturing the asset, (iii) a spin out of the asset, (iv) extending the underground mine or (v) accelerating future cash flows to capture part of the current record gold prices via a prepayment structure or other financing arrangement.

Please refer to guidance section of the release for production, cost, and capital guidance for 2025.

EXPLORATION AND PRE-DEVELOPMENT

 

Exploration and pre-development expenses totaled $4.5 million for the first quarter of the year. During the first quarter, exploration activities focused on underground exploration at Greens Creek and surface and underground definition drilling at Keno Hill.

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

At Greens Creek, exploration drilling during the first quarter in the 200 South Zone expands mineralization an additional 400 feet along plunge to the south and is now the southern-most high-grade drillhole intercept. While this interval is narrow, the high-grade silver, zinc, and lead mineralization continues to highlight the prospectivity of the region. At Keno Hill, underground drilling continues to confirm and expand mineralization in the Bermingham Deposit.

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

Selected drill intercepts for the two operations are shown below.

Greens Creek

200 South Zone

• 24.0 oz/ton silver, 0.03 oz/ton gold, 19.8% zinc and 11.6% lead over 2.2 feet

East Zone

• 278.0 opt silver, 0.16 oz/ton gold, 0.6% zinc and 0.1% lead over 2.8 feet

Keno Hill

Bermingham Vein Zone

• Bear Vein: 63.8 oz/ton silver, 0.1% zinc, and 5.1% lead over 12.1 feet
  • Includes: 174.5 oz/ton silver, 0.1% zinc, and 13.8% lead over 4.0 feet
• Footwall Vein: 53.8 oz/ton silver, 1.1% zinc. and 8.7% lead over 15.3 feet
  • Includes: 78.6 oz/ton silver, 1.7% zinc, and 11.9% lead over 9.4 feet
• Main Vein: 31.1 oz/ton silver, 0.3% zinc, and 1.0% lead over 5.6 feet

Detailed drill assay highlights can be found in Table A at the end of the release.

Project Permitting Update

Libby Exploration Project

The Libby Exploration Project in Montana was included in the Trump Administration’s March 18, 2025, announcement of advancing critical mineral projects under Executive Order 14241, Immediate Measures to Increase American Mineral Production. As a result, the Project has been placed on the Federal Permitting Improvement Steering Council’s FAST-41 permitting dashboard, which will ensure the environmental review and authorizations schedule for the project is publicly available and allows all stakeholders to benefit from increased transparency.

The project is a large silver and copper deposit located 50 miles from the Company’s Lucky Friday mine. A Plan of Operations is currently under an Environmental Assessment review by the U.S. Forest Service, which review is expected to be completed later this year. Upon successful completion of that process, the Company would have the authority to dewater and rehabilitate approximately 7,000 feet of the existing 14,000 foot Libby Adit, extend the adit by approximately 4,200 feet, and construct lateral drifts to conduct exploration activities. As of December 31, 2024, the project had Inferred resources of 183.3 million ounces of silver and 759 thousand tons of copper. The Company continues to analyze the feasibility of developing a mine at the Libby Exploration Project and capital allocation decisions will be disciplined and focused on delivering shareholder value.

DIVIDENDS

 

Pursuant to the dividend policy, the Board of Directors declared a quarterly cash dividend of $0.00375 per share of common stock payable on or about June 10, 2025, to stockholders of record on May 23, 2025.

Preferred Stock

The Board of Directors declared a quarterly cash dividend of $0.875 per share of Series B preferred stock, payable on or about July 1, 2025, to stockholders of record on June 16, 2025.

2025 GUIDANCE 6

 

In the tables below the Company provides production, cost, and capital guidance on a consolidated basis and by mine, as well as projected consolidated exploration and pre-development expenditures. There are no changes to production and capital investment guidance, but there are changes to cost (total cost of sales, cash costs, and/or AISC) guidance for Greens Creek, Lucky Friday, and Casa Berardi.3,4

2025 Production Outlook Reiterated

Consolidated silver production is expected to be 15.5-17.0 million ounces.

• Greens Creek's silver production is expected to be 8.1-8.8 million ounces.
• Lucky Friday's silver production is expected to be 4.7-5.1 million ounces.
• Keno Hill's silver production is expected to be 2.7-3.1 million ounces.

Consolidated gold production is expected to be 120-130 koz.

• Casa Berardi is expected to produce 76.0-82.0 koz.
• Greens Creek is expected to produce 44.0-48.0 koz.

 

 

Silver Production (Moz)

 

Gold Production (Koz)

 

Silver Equivalent (Moz)

 

Gold Equivalent (Koz)

Greens Creek *

 

8.1 - 8.8

 

44.0 - 48.0

 

18.0 - 19.5

 

200.0 - 210.0

Lucky Friday *

 

4.7 - 5.1

 

N/A

 

8.0 - 8.5

 

90.0 - 95.0

Casa Berardi

 

N/A

 

76.0 - 82.0

 

6.5 - 7.5

 

76.0 - 82.0

Keno Hill *

 

2.7 - 3.1

 

N/A

 

3.0 - 3.5

 

30.0 - 40.0

2025 Total

 

15.5 - 17.0

 

120.0 - 130.0

 

35.5 - 39.0

 

396.0 - 427.0

* Equivalent ounces include Lead and Zinc production

2025 Cost Guidance Revised

Total silver cash cost guidance per silver ounce (after by-product credits) is unchanged at $3.00-$3.25/oz, and guidance for AISC per silver ounce (after by-product credits) is also unchanged at $15.75-$17.00/oz.3,4 This guidance only incorporates Greens Creek and Lucky Friday, as Keno Hill remains in a state of pre-commercial production.

• At Greens Creek, guidance for total costs of sales (includes depreciation) remains unchanged at $289 million, while cash cost per silver ounce (after by-product credits) is lowered to $0.25-$0.75 from $2.00-$2.50, and guidance for AISC per silver ounce (after by-product credits) is lowered to $6.50-7.25 from $8.75-$9.50, primarily tied to higher by-product credits.3,4
• At Lucky Friday, guidance for cost of sales is revised up to $165 million from $135 million (includes depreciation), with the change about equally split between cash and non-cash items. Cash cost per silver ounce (after by-product credits) guidance is revised up to $7.00-$7.50 from $4.25-$4.75 and guidance for AISC per silver ounce (after by-product credits) is revised up to $20.00-$21.50 from $16.50-$18.00.3,4 The primary drivers of the cash cost and AISC guidance increase at Lucky Friday are higher labor and burden costs, insurance costs, higher than budgeted profit sharing expense, higher costs associated with contractor use intensity, and higher costs than budgeted for some consumables.

Casa Berardi guidance for cost of sales is revised up to $180 million from $165.5 million (includes depreciation) due to increased open pit contractor costs related to extending the work by two months from the prior plan, and other cost increases. Cash cost guidance (after by-product credits) per gold ounce is unchanged at $1,500-$1,650 and AISC (after by-product credits) per gold ounce guidance is reiterated at $1,750-$1,950.3,4

 

 

Total costs of Sales (million)

 

 

Cash cost, after by-product credits, per silver/gold ounce3

 

AISC, after by-product credits, per produced silver/gold ounce4

Greens Creek

 

 

289.0

 

 

$0.25 - $0.75

 

$6.50 - $7.25

Lucky Friday

 

 

165.0

 

 

$7.00 - $7.50

 

$20.00 - $21.50

Total Silver

 

 

454.0

 

 

$3.00 - $3.25

 

$15.75 - $17.00

Casa Berardi

 

 

180.0

 

 

$1,500 - $1,650

 

$1,750 - $1,950

2025 Capital and Exploration Guidance Reiterated

Consolidated capital investment remains unchanged and is expected to be $222-$242 million.

• Greens Creek's capital investment budget is primarily attributable to engineering and construction related to the expansion of its tailings facility, which is expected to increase tailings capacity to 2040.
• Lucky Friday's capital investment is heavily tied to underground development and a surface cooling project, which is critical to increase the designed cooling capacity at the mine over its reserve mine-life of seventeen years.
• Expected capital spend at Keno Hill comprises mine development and mine infrastructure projects, including a paste backfill plant, tailings facility, and water treatment plant.
• Casa Berardi's expected growth capital spend includes tailings construction costs.

Exploration and pre-development expenditures remain unchanged and are expected to be $28 million, with the focus at Greens Creek and Keno Hill, with some planned spend at Nevada and Lucky Friday.

(millions)

 

Total

Sustaining

Growth

2025 Total Capital expenditures

 

$222 - $242

$125 - $133

$97 - $109

Greens Creek

 

$58 - $63

$48 - $51

$10 - $12

Lucky Friday

 

$63 - $68

$58 - $61

$5 - $7

Casa Berardi

 

$58 - $63

$19 - $21

$39 - $42

Keno Hill

 

$43 - $48

$0

$43 - $48

2025 Exploration & Pre-Development

 

$28

 

 

CONFERENCE CALL AND WEBCAST

 

A conference call and webcast will be held on Friday, May 2, at 10:00 a.m. Eastern Time to discuss these results. We recommend that you dial in at least 10 minutes before the call commencement. You may join the conference call by dialing toll-free 1-800-715-9871 or for international dialing 1-646-370-1963. The Conference ID is 4812168 and must be provided when dialing in. Hecla's live and archived webcast can be accessed at https://events.q4inc.com/attendee/855262025 or www.hecla.com under Investors.

ABOUT HECLA

Founded in 1891, Hecla Mining Company (NYSE: HL) is the largest silver producer in the United States and Canada. In addition to operating mines in Alaska, Idaho, and Quebec, Canada, the Company is developing a mine in the Yukon, Canada, and owns a number of exploration and pre-development projects in world-class silver and gold mining districts throughout North America.

NOTES

Non-GAAP Financial Measures

Non-GAAP financial measures are intended to provide additional information only and do not have any standard meaning prescribed by United States generally accepted accounting principles ("GAAP"). These measures should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. The non-GAAP financial measures cited in this release and listed below are reconciled to their most comparable GAAP measure at the end of this release.

(1) Adjusted net income (loss) applicable to common stockholders is a non-GAAP measurement, a reconciliation of which to net income (loss) applicable to common stockholders, the most comparable GAAP measure, can be found at the end of the release. Adjusted net income (loss) applicable to common stockholders is a measure used by management to evaluate the Company's operating performance but should not be considered an alternative to net income (loss) applicable to common stockholders as defined by GAAP. They exclude certain impacts which are of a nature which we believe are not reflective of our underlying performance. Management believes that adjusted net income (loss) applicable to common stockholders per common share provides investors with the ability to better evaluate our underlying operating performance.

(2) Free cash flow is a non-GAAP measure calculated as cash provided by operating activities less capital expenditures. Cash provided by operating activities for the Greens Creek, Lucky Friday, Keno Hill, and Casa Berardi operating segments excludes exploration and pre-development expense, as it is a discretionary expenditure and not a component of the mines’ operating performance. Capital expenditures refers to Additions to properties, plants and equipment from the Consolidated Statements of Cash Flows, net of finance leases.

(3) Cash cost, after by-product credits, per silver and gold ounce is a non-GAAP measurement, a reconciliation of total cost of sales, can be found at the end of the release. It is an important operating statistic that management utilizes to measure each mine's operating performance. It also allows the benchmarking of performance of each mine versus those of our competitors. As a primary silver mining company, management also uses the statistic on an aggregate basis - aggregating the Greens Creek and Lucky Friday mines to compare performance with that of other silver mining companies. Similarly, the statistic is useful in identifying acquisition and investment opportunities as it provides a common tool for measuring the financial performance of other mines with varying geologic, metallurgical and operating characteristics. In addition, the Company may use it when formulating performance goals and targets under its incentive program.

(4) All-in sustaining cost (AISC), after by-product credits, is a non-GAAP measurement, a reconciliation of which to total cost of sales, the closest GAAP measurement, can be found in the end of the release. AISC, after by-product credits, includes total cost of sales and other direct production costs, expenses for reclamation at the mine sites and all site sustaining capital costs. AISC, after by-product credits, is calculated net of depreciation, depletion, and amortization and by-product credits. Prior year presentation has been adjusted to conform with current year presentation.

(5) Adjusted EBITDA is a non-GAAP measurement, a reconciliation of which to net loss, the most comparable GAAP measure, can be found at the end of the release. Adjusted EBITDA is a measure used by management to evaluate the Company's operating performance but should not be considered an alternative to net loss, or cash provided by operating activities as those terms are defined by GAAP, and does not necessarily indicate whether cash flows will be sufficient to fund cash needs. In addition, the Company may use it when formulating performance goals and targets under its incentive program. Net debt to adjusted EBITDA is a non-GAAP measurement, a reconciliation of which to debt and net income (loss), the most comparable GAAP measurements, can be found at the end of the release. It is an important measure for management to measure relative indebtedness and the ability to service the debt relative to its peers. It is calculated as total debt outstanding less total cash on hand divided by adjusted EBITDA.

(6) Expectations for 2025 include silver, gold, lead, and zinc production from Greens Creek, Lucky Friday, Keno Hill, and Casa Berardi converted using gold $2,550/oz, silver $28/oz, zinc $1.25/lb, and lead $0.85/lb. Numbers are rounded. Assumed exchange rate for Canadian dollar is 1.35 CAD/USD.

Current GAAP measures used in the mining industry, such as total cost of goods sold, do not capture all the expenditures incurred to discover, develop and sustain silver and gold production. Management believes that AISC is a non-GAAP measure that provides additional information to management, investors and analysts to help (i) in the understanding of the economics of our operations and performance compared to other producers and (ii) in the transparency by better defining the total costs associated with production. Similarly, the statistic is useful in identifying acquisition and investment opportunities as it provides a common tool for measuring the financial performance of other mines with varying geologic, metallurgical and operating characteristics. In addition, the Company may use it when formulating performance goals and targets under its incentive program.

Cautionary Statement Regarding Forward Looking Statements, Including 2025 Outlook

This news release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbor created by such sections and other applicable laws, including Canadian securities laws. Words such as “may”, “will”, “should”, “expects”, “intends”, “projects”, “believes”, “estimates”, “targets”, “anticipates” and similar expressions are used to identify these forward-looking statements. Such forward-looking statements may include, without limitation: (i) Capital investment at Greens Creek is expected to increase in the second and third quarters, the mine expects to generate power for 8 weeks beginning mid-June and expansion of its tailings facility is expected to increase tailings capacity to 2040; (ii) Each operating mine is expected to have 3-6 days of planned mill maintenance in 2025; (iii) Keno Hill expects no power disruptions in warm months, and Yukon Energy Corporation's out-of-service hydro-electric turbine is expected to be repaired by summer 2025; (iv) At 440 tons per day, Keno Hill projects to generate free cash flow using current prices, and at budgeted prices, 500 to 600 tons per day is projected to achieve, sustainable profitability; (v) Casa Berardi is expected to 1) reduce the stripping rate at the 160 pit in the second half of 2025, and thereby reduce costs, 2) continue underground production through mid-2025, 3) produce gold from the 160 pit and generate strong cash flow starting in the third quarter of 2025 until 2027, 4) have improved economics in the second half of 2025, 4) see an increase in capital investment in the second and third quarters and 5) have a production gap commencing in 2027 to 2032 or later. During this time, the focus is expected to be on investing in infrastructure and equipment, permitting and de-watering and stripping two expected new open pits, Principal and West Mine Crown Pillar. Upon conclusion of the hiatus and related permitting and construction, the Company expects the mine to generate significant free cash flow at current gold prices; (vi) the Company’s review of strategic alternatives for Casa Berardi may lead to (1) an outright disposal, (2) joint venturing the asset, (3) a spin out of the asset, (4) extending the underground mine or (5) accelerating future cash flows to capture part of the current record gold prices via a prepayment structure or other financing arrangement; (vii) the Libby Exploration project may complete an Environmental Assessment and then dewater and rehabilitate approximately 7,000 feet of the existing 14,000 foot Libby Adit; (viii) projected total cost of sales, as well as cash cost and AISC per ounce (in each case after by-product credits) for Greens Creek, Lucky Friday, and Casa Berardi individually and for silver overall for 2025; (ix) Lucky Friday's reserve mine-life is expected to be eighteen years; (x) Company-wide and mine-specific estimated spending on capital, exploration and predevelopment for 2025; and (xi) Company-wide and mine-specific estimated silver, gold, silver-equivalent and gold-equivalent ounces of production for 2025. The material factors or assumptions used to develop such forward-looking statements or forward-looking information include that the Company’s plans for development and production will proceed as expected and will not require revision as a result of risks or uncertainties, whether known, unknown or unanticipated, to which the Company’s operations are subject. Estimates or expectations of future events or results are based upon certain assumptions, which may prove to be incorrect, which could cause actual results to differ from forward-looking statements. Such assumptions, include, but are not limited to: (i) there being no significant change to current geotechnical, metallurgical, hydrological and other physical conditions; (ii) permitting, development, operations and expansion of the Company’s projects being consistent with current expectations and mine plans; (iii) political/regulatory developments in any jurisdiction in which the Company operates being consistent with its current expectations; (iv) the exchange rate for the USD/CAD being approximately consistent with current levels; (v) certain price assumptions for gold, silver, lead and zinc; (vi) prices for key supplies being approximately consistent with current levels; (vii) the accuracy of our current mineral reserve and mineral resource estimates; (viii) there being no significant changes to the availability of employees, vendors and equipment; (ix) the Company’s plans for development and production will proceed as expected and will not require revision as a result of risks or uncertainties, whether known, unknown or unanticipated; (x) counterparties performing their obligations under hedging instruments and put option contracts; (xi) sufficient workforce is available and trained to perform assigned tasks; (xii) weather patterns and rain/snowfall within normal seasonal ranges so as not to impact operations; (xiii) relations with interested parties, including First Nations and Native Americans, remain productive; (xiv) maintaining availability of water rights; (xv) factors do not arise that reduce available cash balances; and (xvi) there being no material increases in our current requirements to post or maintain reclamation and performance bonds or collateral related thereto. In addition, material risks that could cause actual results to differ from forward-looking statements include but are not limited to: (i) gold, silver and other metals price volatility; (ii) operating risks; (iii) currency fluctuations; (iv) increased production costs and variances in ore grade or recovery rates from those assumed in mining plans; (v) community relations; and (vi) litigation, political, regulatory, labor and environmental risks. For a more detailed discussion of such risks and other factors, see the Company's 2024 Form 10-K filed on February 13, 2025 and Form 10-Q filed on May 1, 2025, for a more detailed discussion of factors that may impact expected future results. The Company undertakes no obligation and has no intention of updating forward-looking statements other than as may be required by law.

Cautionary Statements to Investors on Reserves and Resources

This news release uses the terms “mineral resources”, “measured mineral resources”, “indicated mineral resources” and “inferred mineral resources.” Mineral resources that are not mineral reserves do not have demonstrated economic viability. You should not assume that all or any part of measured or indicated mineral resources will ever be converted into mineral reserves. Further, inferred mineral resources have a great amount of uncertainty as to their existence and as to whether they can be mined legally or economically, and 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. We report reserves and resources under the SEC’s mining disclosure rules (“S-K 1300”) and Canada’s National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) because we are a “reporting issuer” under Canadian securities laws. Unless otherwise indicated, all resource and reserve estimates contained in this press release have been prepared in accordance with S-K 1300 as well as NI 43-101.

Qualified Person (QP)

Kurt D. Allen, MSc., CPG, VP -Exploration of Hecla Mining Company and Keith Blair, MSc., CPG, Chief Geologist of Hecla Limited, who serve as a Qualified Person under S-K 1300 and NI 43-101, supervised the preparation of the scientific and technical information concerning Hecla’s mineral projects in this news release. Technical Report Summaries for the Company’s Greens Creek, Lucky Friday, Casa Berardi and Keno Hill properties are filed as exhibits 96.1 - 96.4, respectively, to the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 and are available at www.sec.gov. Information regarding data verification, surveys and investigations, quality assurance program and quality control measures and a summary of analytical or testing procedures for (i) the Greens Creek Mine are contained in its Technical Report Summary and in its NI 43-101 technical report titled “Technical Report for the Greens Creek Mine” effective date December 31, 2018, (ii) the Lucky Friday Mine are contained in its Technical Report Summary and in its NI 43-101 technical report titled “Technical Report for the Lucky Friday Mine Shoshone County, Idaho, USA” effective date April 2, 2014, (iii) Casa Berardi are contained in its Technical Report Summary and in its NI 43-101 technical report titled “Technical Report on the Casa Berardi Mine, Northwestern Quebec, Canada” effective date December 31, 2023, (iv) Keno Hill is contained in its Technical Report Summary titled “S-K 1300 Technical Report Summary on the Keno Hill Mine, Yukon, Canada” and in its NI 43-101 technical report titled “Technical Report on the Keno Hill Mine, Yukon, Canada” effective date December 31, 2023, and (v) the San Sebastian Mine, Mexico, are contained in a NI 43-101 technical report prepared for Hecla titled “Technical Report for the San Sebastian Ag-Au Property, Durango, Mexico” effective date September 8, 2015. Also included in each Technical Report Summary and technical report listed above is a description of the key assumptions, parameters and methods used to estimate mineral reserves and resources and a general discussion of the extent to which the estimates may be affected by any known environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant factors. Information regarding data verification, surveys and investigations, quality assurance program and quality control measures and a summary of sample, analytical or testing procedures are contained in NI 43-101 technical reports prepared for Klondex Mines Ltd. for (i) the Fire Creek Mine (technical report dated March 31, 2018), (ii) the Hollister Mine (technical report dated May 31, 2017, amended August 9, 2017), and (iii) the Midas Mine (technical report dated August 31, 2014, amended April 2, 2015). Information regarding data verification, surveys and investigations, quality assurance program and quality control measures and a summary of sample, analytical or testing procedures are contained in a NI 43-101 technical reports prepared for ATAC Resources Ltd. for (i) the Osiris Project (technical report dated July 28, 2022) and (ii) the Tiger Project (technical report dated February 27, 2020). Copies of these technical reports are available under the SEDAR profiles of Klondex Mines Unlimited Liability Company and ATAC Resources Ltd., respectively, at www.sedar.com (the Fire Creek technical report is also available under Hecla’s profile on SEDAR). Mr. Allen and Mr. Blair reviewed and verified information regarding drill sampling, data verification of all digitally collected data, drill surveys and specific gravity determinations relating to all the mines. The review encompassed quality assurance programs and quality control measures including analytical or testing practice, chain-of-custody procedures, sample storage procedures and included independent sample collection and analysis. This review found the information and procedures meet industry standards and are adequate for Mineral Resource and Mineral Reserve estimation and mine planning purposes.

HECLA MINING COMPANY

Consolidated Statements of Operations

(dollars and shares in thousands, except per share amounts - unaudited)

 

 

 

Three Months Ended

 

 

March 31, 2025

 

December 31, 2024

Sales

 

$

261,339

 

 

$

249,655

 

Cost of sales and other direct production costs

 

 

148,950

 

 

 

141,465

 

Depreciation, depletion and amortization

 

 

38,385

 

 

 

39,856

 

Total cost of sales

 

 

187,335

 

 

 

181,321

 

Gross profit

 

 

74,004

 

 

 

68,334

 

 

 

 

 

 

Other operating expenses:

 

 

 

 

General and administrative

 

 

11,999

 

 

 

9,048

 

Exploration and pre-development

 

 

4,501

 

 

 

5,744

 

Ramp-up and suspension costs

 

 

3,306

 

 

 

9,567

 

Write down of property, plant and equipment

 

 

—

 

 

 

110

 

Provision for closed operations and environmental matters

 

 

790

 

 

 

3,162

 

Other operating expense

 

 

1,053

 

 

 

2,566

 

 

 

 

21,649

 

 

 

30,197

 

Income from operations

 

 

52,355

 

 

 

38,137

 

Other expense:

 

 

 

 

Interest expense

 

 

(11,551

)

 

 

(13,784

)

Fair value adjustments, net

 

 

3,627

 

 

 

(9,008

)

Foreign exchange (loss) gain

 

 

(356

)

 

 

4,143

 

Other income

 

 

942

 

 

 

505

 

 

 

 

(7,338

)

 

 

(18,144

)

Income (loss) before income and mining taxes

 

 

45,017

 

 

 

19,993

 

Income and mining tax provision

 

 

(16,145

)

 

 

(8,069

)

Net income (loss)

 

 

28,872

 

 

 

11,924

 

Preferred stock dividends

 

 

(138

)

 

 

(138

)

Net income (loss) applicable to common stockholders

 

$

28,734

 

 

$

11,786

 

Basic income (loss) per common share after preferred dividends

 

$

0.05

 

 

$

0.02

 

Diluted income (loss) per common share after preferred dividends

 

$

0.05

 

 

$

0.02

 

Weighted average number of common shares outstanding basic

 

 

632,047

 

 

 

628,025

 

Weighted average number of common shares outstanding diluted

 

 

634,708

 

 

 

631,442

 

 

HECLA MINING COMPANY

Consolidated Statements of Cash Flows

(dollars in thousands - unaudited)

 

 

 

Three Months Ended

 

 

March 31, 2025

 

December 31, 2024

OPERATING ACTIVITIES

 

 

 

 

Net income (loss)

 

$

28,872

 

 

$

11,924

 

Non-cash elements included in net income (loss):

 

 

 

 

Depreciation, depletion and amortization

 

 

39,172

 

 

 

41,206

 

Inventory adjustments

 

 

1,558

 

 

 

1,633

 

Fair value adjustments, net

 

 

(3,627

)

 

 

9,008

 

Provision for reclamation and closure costs

 

 

1,908

 

 

 

3,942

 

Stock-based compensation

 

 

1,936

 

 

 

2,258

 

Deferred income taxes

 

 

13,221

 

 

 

5,427

 

Net foreign exchange (gain) loss

 

 

356

 

 

 

(4,143

)

Write down of property, plant and equipment

 

 

—

 

 

 

110

 

Other non-cash items, net

 

 

507

 

 

 

1,561

 

Change in assets and liabilities:

 

 

 

 

Accounts receivable

 

 

(29,314

)

 

 

7,040

 

Inventories

 

 

(11,763

)

 

 

(5,460

)

Other current and non-current assets

 

 

9,578

 

 

 

(12,870

)

Accounts payable, accrued and other current liabilities

 

 

(15,917

)

 

 

4,165

 

Accrued payroll and related benefits

 

 

(168

)

 

 

147

 

Accrued taxes

 

 

2,769

 

 

 

1,748

 

Accrued reclamation and closure costs and other non-current liabilities

 

 

(3,350

)

 

 

(226

)

Net cash provided by operating activities

 

 

35,738

 

 

 

67,470

 

INVESTING ACTIVITIES

 

 

 

 

Additions to properties, plants, equipment and mineral interests

 

 

(54,095

)

 

 

(60,784

)

Proceeds from disposition of assets

 

 

55

 

 

 

221

 

Net cash used in investing activities

 

 

(54,040

)

 

 

(60,563

)

FINANCING ACTIVITIES

 

 

 

 

Proceeds from issuance of stock, net of related costs

 

 

—

 

 

 

—

 

Acquisition of treasury shares

 

 

—

 

 

 

—

 

Borrowings of debt

 

 

107,000

 

 

 

129,000

 

Repayments of debt

 

 

(87,000

)

 

 

(119,000

)

Dividends paid to common and preferred stockholders

 

 

(2,511

)

 

 

(8,640

)

Repayments of finance leases and other

 

 

(2,287

)

 

 

(2,823

)

Net cash (used in) provided by financing activities

 

 

15,202

 

 

 

(1,463

)

Effect of exchange rates on cash

 

 

(100

)

 

 

(856

)

Net increase (decrease) in cash, cash equivalents and restricted cash and cash equivalents

 

 

(3,200

)

 

 

4,588

 

Cash, cash equivalents and restricted cash and cash equivalents at beginning of period

 

 

28,045

 

 

 

23,457

 

Cash, cash equivalents and restricted cash and cash equivalents at end of period

 

$

24,845

 

 

$

28,045

 

 

HECLA MINING COMPANY

Consolidated Balance Sheets

(dollars and shares in thousands - unaudited)

 

 

 

March 31, 2025

 

December 31, 2024

ASSETS

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

23,668

 

 

$

26,868

 

Accounts receivable

 

 

80,069

 

 

 

49,053

 

Inventories

 

 

117,377

 

 

 

104,936

 

Other current assets

 

 

25,199

 

 

 

33,295

 

Total current assets

 

 

246,313

 

 

 

214,152

 

Investments

 

 

37,518

 

 

 

33,897

 

Restricted cash and cash equivalents

 

 

1,177

 

 

 

1,177

 

Properties, plants, equipment and mine development, net

 

 

2,700,896

 

 

 

2,694,119

 

Operating lease right-of-use assets

 

 

9,387

 

 

 

7,544

 

Other non-current assets

 

 

28,266

 

 

 

30,171

 

Total assets

 

 

3,023,557

 

 

$

2,981,060

 

 

 

 

 

 

LIABILITIES

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable and other current accrued liabilities

 

$

114,933

 

 

$

127,988

 

Current debt

 

 

33,612

 

 

 

33,617

 

Finance leases

 

 

7,904

 

 

 

8,169

 

Accrued reclamation and closure costs

 

 

11,113

 

 

 

13,748

 

Accrued interest

 

 

5,161

 

 

 

14,316

 

Total current liabilities

 

 

172,723

 

 

 

197,838

 

Accrued reclamation and closure costs

 

 

115,024

 

 

 

111,162

 

Long-term debt including finance leases

 

 

527,137

 

 

 

508,927

 

Deferred tax liabilities

 

 

124,382

 

 

 

110,266

 

Other non-current liabilities

 

 

10,324

 

 

 

13,353

 

Total liabilities

 

 

949,590

 

 

 

941,546

 

 

 

 

 

 

STOCKHOLDERS’ EQUITY

 

 

 

 

Preferred stock

 

 

39

 

 

 

39

 

Common stock

 

 

160,228

 

 

 

160,052

 

Capital surplus

 

 

2,423,631

 

 

 

2,418,149

 

Accumulated deficit

 

 

(467,168

)

 

 

(493,529

)

Accumulated other comprehensive loss, net

 

 

(7,832

)

 

 

(10,266

)

Treasury stock

 

 

(34,931

)

 

 

(34,931

)

Total stockholders’ equity

 

 

2,073,967

 

 

 

2,039,514

 

Total liabilities and stockholders’ equity

 

$

3,023,557

 

 

$

2,981,060

 

Common shares outstanding

 

 

641,255

 

 

 

640,548

 

 

Non-GAAP Measures (Unaudited)

Reconciliation of Total Cost of Sales to Cash Cost, Before By-product Credits and Cash Cost, After By-product Credits (non-GAAP) and All-In Sustaining Cost, Before By-product Credits and All-In Sustaining Cost, After By-product Credits (non-GAAP)

The tables below present reconciliations between the most comparable GAAP measure of total cost of sales to the non-GAAP measures of (i) Cash Cost, Before By-product Credits, (ii) Cash Cost, After By-product Credits, (iii) AISC, Before By-product Credits and (iv) AISC, After By-product Credits for our operations and for the Company for the three months ended March 31, 2025, September 30, 2024, June 30, 2024, March 31, 2024, the three months and year ended December 31, 2024 and an estimate for the twelve months ended December 31, 2025.

Cash Cost, After By-product Credits, per Ounce and AISC, After By-product Credits, per Ounce are measures developed by precious metals companies (including the Silver Institute and the World Gold Council) in an effort to provide a uniform standard for comparison purposes. There can be no assurance, however, that these non-GAAP measures as we report them are the same as those reported by other mining companies.

Cash Cost, After By-product Credits, per Ounce is an important operating statistic that we utilize to measure each mine's operating performance. We use AISC, After By-product Credits, per Ounce as a measure of our mines' net cash flow after costs for reclamation and sustaining capital. This is similar to the Cash Cost, After By-product Credits, per Ounce non-GAAP measure we report, but also includes reclamation and sustaining capital costs. Current GAAP measures used in the mining industry, such as cost of goods sold, do not capture all the expenditures incurred to discover, develop and sustain silver and gold production. Cash Cost, After By-product Credits, per Ounce and AISC, After By-product Credits, per Ounce also allow us to benchmark the performance of each of our mines versus those of our competitors. As a silver and gold mining company, we also use these statistics on an aggregate basis - aggregating the Greens Creek and Lucky Friday mines to compare our performance with that of other silver mining companies. Similarly, these statistics are useful in identifying acquisition and investment opportunities as they provide a common tool for measuring the financial performance of other mines with varying geologic, metallurgical and operating characteristics.

Cash Cost, Before By-product Credits and AISC, Before By-product Credits include all direct and indirect operating cash costs related directly to the physical activities of producing metals, including mining, processing and other plant costs, third-party refining expense, on-site general and administrative costs, royalties and mining production taxes. AISC, Before By-product Credits for each mine also includes reclamation and sustaining capital costs. AISC, Before By-product Credits for our consolidated silver properties also includes corporate costs for general and administrative expense and sustaining capital costs. By-product credits include revenues earned from all metals other than the primary metal produced at each unit. As depicted in the tables below, by-product credits comprise an essential element of our silver unit cost structure, distinguishing our silver operations due to the polymetallic nature of their orebodies.

In addition to the uses described above, Cash Cost, After By-product Credits, per Ounce and AISC, After By-product Credits, per Ounce provide management and investors an indication of operating cash flow, after consideration of the average price, received from production. We also use these measurements for the comparative monitoring of performance of our mining operations period-to-period from a cash flow perspective.

The Casa Berardi information below reports Cash Cost, After By-product Credits, per Gold Ounce and AISC, After By-product Credits, per Gold Ounce for the production of gold, their primary product, and by-product revenues earned from silver, which is a by-product at Casa Berardi. Only costs and ounces produced relating to units with the same primary product are combined to represent Cash Cost, After By-product Credits, per Ounce and AISC, After By-product Credits, per Ounce. Thus, the gold produced at our Casa Berardi unit is not included as a by-product credit when calculating Cash Cost, After By-product Credits, per Silver Ounce and AISC, After By-product Credits, per Silver Ounce for the total of Greens Creek and Lucky Friday, our combined silver properties. Similarly, the silver produced at our other two units is not included as a by-product credit when calculating the gold metrics for Casa Berardi. 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. Determination of when those criteria have been met requires the use of judgment, and our definition of commercial production may differ from that of other mining companies.

  In thousands (except per ounce amounts)

Three Months Ended March 31, 2025

 

Three Months Ended December 31, 2024

 

Twelve Months Ended December 31, 2024

Greens Creek

 

Lucky Friday

 

Keno Hill (6)

 

Corporate (2)

 

Total Silver

 

Greens Creek

 

Lucky Friday

 

Keno Hill (6)

 

Corporate (2)

 

Total Silver

 

Greens Creek

 

Lucky Friday

 

Keno Hill (6)

 

Corporate (2)

 

Total Silver

Total cost of sales

 

$

69,638

 

 

$

44,049

 

 

$

15,871

 

 

$

—

 

$

129,558

 

 

$

67,887

 

 

$

40,157

 

 

$

15,356

 

 

$

—

 

$

123,400

 

 

$

268,127

 

 

$

144,485

 

 

$

74,962

 

 

$

—

 

$

487,574

 

Depreciation, depletion and amortization

 

 

(13,589

)

 

 

(13,425

)

 

 

(2,802

)

 

 

—

 

 

(29,816

)

 

 

(13,743

)

 

 

(11,749

)

 

 

(3,587

)

 

 

—

 

 

(29,079

)

 

 

(53,450

)

 

 

(41,049

)

 

 

(16,136

)

 

 

—

 

 

(110,635

)

Treatment costs

 

 

2,143

 

 

 

3,963

 

 

 

—

 

 

 

—

 

 

6,106

 

 

 

4,511

 

 

 

4,837

 

 

 

—

 

 

 

—

 

 

9,348

 

 

 

26,266

 

 

 

14,456

 

 

 

—

 

 

 

—

 

 

40,722

 

Change in product inventory

 

 

(901

)

 

 

(839

)

 

 

—

 

 

 

—

 

 

(1,740

)

 

 

(2,833

)

 

 

1,488

 

 

 

—

 

 

 

—

 

 

(1,345

)

 

 

(5,858

)

 

 

2,090

 

 

 

—

 

 

 

—

 

 

(3,768

)

Reclamation and other costs

 

 

(307

)

 

 

(273

)

 

 

—

 

 

 

—

 

 

(580

)

 

 

(1,119

)

 

 

(2,152

)

 

 

—

 

 

 

—

 

 

(3,271

)

 

 

(4,481

)

 

 

(2,806

)

 

 

—

 

 

 

—

 

 

(7,287

)

Exclusion of Lucky Friday cash costs (8)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

—

 

 

 

—

 

 

 

(3,634

)

 

 

—

 

 

 

—

 

 

(3,634

)

Exclusion of Keno Hill cash costs (6)

 

 

—

 

 

 

—

 

 

 

(13,069

)

 

 

—

 

 

(13,069

)

 

 

—

 

 

 

—

 

 

 

(11,769

)

 

 

—

 

 

(11,769

)

 

 

—

 

 

 

—

 

 

 

(58,826

)

 

 

—

 

 

(58,826

)

Cash Cost, Before By-product Credits (1)

 

 

56,984

 

 

 

33,475

 

 

 

—

 

 

 

—

 

 

90,459

 

 

 

54,703

 

 

 

32,581

 

 

 

—

 

 

 

—

 

 

87,284

 

 

 

230,604

 

 

 

113,542

 

 

 

—

 

 

 

—

 

 

344,146

 

Reclamation and other costs

 

 

757

 

 

 

195

 

 

 

—

 

 

 

—

 

 

952

 

 

 

785

 

 

 

183

 

 

 

—

 

 

 

—

 

 

968

 

 

 

3,141

 

 

 

891

 

 

 

—

 

 

 

—

 

 

4,032

 

Sustaining capital

 

 

7,368

 

 

 

14,070

 

 

 

—

 

 

 

1,025

 

 

22,463

 

 

 

15,329

 

 

 

12,434

 

 

 

—

 

 

 

389

 

 

28,152

 

 

 

45,214

 

 

 

44,864

 

 

 

—

 

 

 

1,532

 

 

91,610

 

Exclusion of Lucky Friday sustaining costs (8)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

—

 

 

 

—

 

 

 

(5,396

)

 

 

—

 

 

 

—

 

 

(5,396

)

General and administrative

 

 

—

 

 

 

—

 

 

 

—

 

 

 

11,999

 

 

11,999

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

9,048

 

 

9,048

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

45,405

 

 

45,405

 

AISC, Before By-product Credits (1)

 

 

65,109

 

 

 

47,740

 

 

 

—

 

 

 

13,024

 

 

125,873

 

 

 

70,817

 

 

 

45,198

 

 

 

—

 

 

 

9,437

 

 

125,452

 

 

 

278,959

 

 

 

153,901

 

 

 

—

 

 

 

46,937

 

 

479,797

 

By-product credits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Zinc

 

 

(23,374

)

 

 

(6,950

)

 

 

—

 

 

 

—

 

 

(30,324

)

 

 

(24,883

)

 

 

(7,707

)

 

 

—

 

 

 

—

 

 

(32,590

)

 

 

(89,088

)

 

 

(26,244

)

 

 

—

 

 

 

—

 

 

(115,332

)

Gold

 

 

(34,977

)

 

 

—

 

 

 

—

 

 

 

—

 

 

(34,977

)

 

 

(34,363

)

 

 

—

 

 

 

—

 

 

 

—

 

 

(34,363

)

 

 

(115,189

)

 

 

—

 

 

 

—

 

 

 

—

 

 

(115,189

)

Lead

 

 

(6,091

)

 

 

(14,043

)

 

 

—

 

 

 

—

 

 

(20,134

)

 

 

(6,605

)

 

 

(14,610

)

 

 

—

 

 

 

—

 

 

(21,215

)

 

 

(26,374

)

 

 

(55,042

)

 

 

—

 

 

 

—

 

 

(81,416

)

Copper

 

 

(729

)

 

 

—

 

 

 

—

 

 

 

—

 

 

(729

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

—

 

 

 

(409

)

 

 

—

 

 

 

—

 

 

 

—

 

 

(409

)

Exclusion of Lucky Friday by-product credits (8)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

—

 

 

 

—

 

 

 

3,943

 

 

 

—

 

 

 

—

 

 

3,943

 

Total By-product credits

 

 

(65,171

)

 

 

(20,993

)

 

 

—

 

 

 

—

 

 

(86,164

)

 

 

(65,851

)

 

 

(22,317

)

 

 

—

 

 

 

—

 

 

(88,168

)

 

 

(231,060

)

 

 

(77,343

)

 

 

—

 

 

 

—

 

 

(308,403

)

Cash Cost, After By-product Credits

 

$

(8,187

)

 

$

12,482

 

 

$

—

 

 

$

—

 

$

4,295

 

 

$

(11,148

)

 

$

10,264

 

 

$

—

 

 

$

—

 

$

(884

)

 

$

(456

)

 

$

36,199

 

 

$

—

 

 

$

—

 

$

35,743

 

AISC, After By-product Credits

 

$

(62

)

 

$

26,747

 

 

$

—

 

 

$

13,024

 

$

39,709

 

 

$

4,966

 

 

$

22,881

 

 

$

—

 

 

$

9,437

 

$

37,284

 

 

$

47,899

 

 

$

76,558

 

 

$

—

 

 

$

46,937

 

$

171,394

 

Ounces produced

 

 

2,003

 

 

 

1,332

 

 

 

 

 

 

 

3,335

 

 

 

1,902

 

 

 

1,337

 

 

 

 

 

 

 

3,239

 

 

 

8,481

 

 

 

4,891

 

 

 

 

 

 

 

13,372

 

Exclusion of Lucky Friday ounces produced (8)

 

 

—

 

 

 

—

 

 

 

 

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

 

 

 

 

—

 

 

 

—

 

 

 

(253

)

 

 

 

 

 

 

(253

)

Divided by ounces produced

 

 

2,003

 

 

 

1,332

 

 

 

 

 

 

 

3,335

 

 

 

1,902

 

 

 

1,337

 

 

 

 

 

 

 

3,239

 

 

 

8,481

 

 

 

4,638

 

 

 

 

 

 

 

13,119

 

Cash Cost, Before By-product Credits, per Silver Ounce

 

$

28.46

 

 

$

25.13

 

 

 

 

 

 

$

27.13

 

 

$

28.76

 

 

$

24.37

 

 

 

 

 

 

$

26.95

 

 

$

27.19

 

 

$

24.48

 

 

 

 

 

 

$

26.23

 

By-product credits per ounce

 

 

(32.54

)

 

 

(15.76

)

 

 

 

 

 

 

(25.84

)

 

 

(34.62

)

 

 

(16.69

)

 

 

 

 

 

 

(27.22

)

 

 

(27.24

)

 

 

(16.68

)

 

 

 

 

 

 

(23.51

)

Cash Cost, After By-product Credits, per Silver Ounce

 

$

(4.08

)

 

$

9.37

 

 

 

 

 

 

$

1.29

 

 

$

(5.86

)

 

$

7.68

 

 

 

 

 

 

$

(0.27

)

 

$

(0.05

)

 

$

7.80

 

 

 

 

 

 

$

2.72

 

AISC, Before By-product Credits, per Silver Ounce

 

$

32.51

 

 

$

35.84

 

 

 

 

 

 

$

37.75

 

 

$

37.24

 

 

$

33.81

 

 

 

 

 

 

$

38.73

 

 

$

32.89

 

 

$

33.18

 

 

 

 

 

 

$

36.57

 

By-product credits per ounce

 

 

(32.54

)

 

 

(15.76

)

 

 

 

 

 

 

(25.84

)

 

 

(34.62

)

 

 

(16.69

)

 

 

 

 

 

 

(27.22

)

 

 

(27.24

)

 

 

(16.68

)

 

 

 

 

 

 

(23.51

)

AISC, After By-product Credits, per Silver Ounce

 

$

(0.03

)

 

$

20.08

 

 

 

 

 

 

$

11.91

 

 

$

2.62

 

 

$

17.12

 

 

 

 

 

 

$

11.51

 

 

$

5.65

 

 

$

16.50

 

 

 

 

 

 

$

13.06

 

 

In thousands (except per ounce amounts)

 

Three Months Ended March 31, 2025

 

Three Months Ended December 31, 2024

 

Twelve Months Ended December 31, 2024

 

 

Casa Berardi

 

Other (4)

 

Total Gold and Other

 

Casa Berardi

 

Other (4)

 

Total Gold and Other

 

Casa Berardi

 

Other (4)

 

Total Gold and Other

Total cost of sales

 

$

50,682

 

 

$

7,095

 

 

$

57,777

 

 

$

51,734

 

 

$

6,187

 

 

$

57,921

 

 

$

223,614

 

 

$

20,527

 

 

$

244,141

 

Depreciation, depletion and amortization

 

 

(8,569

)

 

 

—

 

 

 

(8,569

)

 

 

(10,777

)

 

 

—

 

 

 

(10,777

)

 

 

(72,835

)

 

 

—

 

 

 

(72,835

)

Treatment costs

 

 

45

 

 

 

—

 

 

 

45

 

 

 

41

 

 

 

—

 

 

 

41

 

 

 

153

 

 

 

—

 

 

 

153

 

Change in product inventory

 

 

3,258

 

 

 

—

 

 

 

3,258

 

 

 

(96

)

 

 

—

 

 

 

(96

)

 

 

3,269

 

 

 

—

 

 

 

3,269

 

Reclamation and other costs

 

 

(312

)

 

 

—

 

 

 

(312

)

 

 

(201

)

 

 

—

 

 

 

(201

)

 

 

(823

)

 

 

—

 

 

 

(823

)

Exclusion of Other costs

 

 

—

 

 

 

(7,095

)

 

 

(7,095

)

 

 

—

 

 

 

(6,187

)

 

 

(6,187

)

 

 

—

 

 

 

(20,527

)

 

 

(20,527

)

Cash Cost, Before By-product Credits (1)

 

 

45,104

 

 

 

—

 

 

 

45,104

 

 

 

40,701

 

 

 

—

 

 

 

40,701

 

 

 

153,378

 

 

 

—

 

 

 

153,378

 

Reclamation and other costs

 

 

312

 

 

 

—

 

 

 

312

 

 

 

201

 

 

 

—

 

 

 

201

 

 

 

823

 

 

 

—

 

 

 

823

 

Sustaining capital

 

 

1,894

 

 

 

—

 

 

 

1,894

 

 

 

5,381

 

 

 

—

 

 

 

5,381

 

 

 

18,963

 

 

 

—

 

 

 

18,963

 

AISC, Before By-product Credits (1)

 

 

47,310

 

 

 

—

 

 

 

47,310

 

 

 

46,283

 

 

 

—

 

 

 

46,283

 

 

 

173,164

 

 

 

—

 

 

 

173,164

 

By-product credits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Silver

 

 

(165

)

 

 

—

 

 

 

(165

)

 

 

(194

)

 

 

—

 

 

 

(194

)

 

 

(683

)

 

 

—

 

 

 

(683

)

Total By-product credits

 

 

(165

)

 

 

—

 

 

 

(165

)

 

 

(194

)

 

 

—

 

 

 

(194

)

 

 

(683

)

 

 

—

 

 

 

(683

)

Cash Cost, After By-product Credits

 

$

44,939

 

 

$

—

 

 

$

44,939

 

 

$

40,507

 

 

$

—

 

 

$

40,507

 

 

$

152,695

 

 

$

—

 

 

$

152,695

 

AISC, After By-product Credits

 

$

47,145

 

 

$

—

 

 

$

47,145

 

 

$

46,089

 

 

$

—

 

 

$

46,089

 

 

$

172,481

 

 

$

—

 

 

$

172,481

 

Divided by gold ounces produced

 

 

20

 

 

 

—

 

 

 

20

 

 

 

21

 

 

 

—

 

 

 

21

 

 

 

87

 

 

 

—

 

 

 

87

 

Cash Cost, Before By-product Credits, per Gold Ounce

 

 

2,203

 

 

$

—

 

 

$

2,203

 

 

$

1,945

 

 

$

—

 

 

$

1,945

 

 

$

1,770

 

 

$

—

 

 

$

1,770

 

By-product credits per ounce

 

 

(8

)

 

 

—

 

 

 

(8

)

 

 

(9

)

 

 

—

 

 

 

(9

)

 

 

(8

)

 

 

—

 

 

 

(8

)

Cash Cost, After By-product Credits, per Gold Ounce

 

$

2,195

 

 

$

—

 

 

$

2,195

 

 

$

1,936

 

 

$

—

 

 

$

1,936

 

 

$

1,762

 

 

$

—

 

 

$

1,762

 

AISC, Before By-product Credits, per Gold Ounce

 

$

2,311

 

 

$

—

 

 

$

2,311

 

 

$

2,212

 

 

$

—

 

 

$

2,212

 

 

$

1,998

 

 

$

—

 

 

$

1,998

 

By-product credits per ounce

 

 

(8

)

 

 

—

 

 

 

(8

)

 

 

(9

)

 

 

—

 

 

 

(9

)

 

 

(8

)

 

 

—

 

 

 

(8

)

AISC, After By-product Credits, per Gold Ounce

 

$

2,303

 

 

$

—

 

 

$

2,303

 

 

$

2,203

 

 

$

—

 

 

$

2,203

 

 

$

1,990

 

 

$

—

 

 

$

1,990

 

 

In thousands (except per ounce amounts)

 

Three Months Ended March 31, 2025

 

Three Months Ended December 31, 2024

 

Twelve Months Ended December 31, 2024

 

 

Total Silver

 

Total Gold and Other

 

Total

 

Total Silver

 

Total Gold and Other

 

Total

 

Total Silver

 

Total Gold and Other

 

Total

Total cost of sales

 

$

129,558

 

 

$

57,777

 

 

$

187,335

 

 

$

123,400

 

 

$

57,921

 

 

$

181,321

 

 

$

487,574

 

 

$

244,141

 

 

$

731,715

 

Depreciation, depletion and amortization

 

 

(29,816

)

 

 

(8,569

)

 

 

(38,385

)

 

 

(29,079

)

 

 

(10,777

)

 

 

(39,856

)

 

 

(110,635

)

 

 

(72,835

)

 

 

(183,470

)

Treatment costs

 

 

6,106

 

 

 

45

 

 

 

6,151

 

 

 

9,348

 

 

 

41

 

 

 

9,389

 

 

 

40,722

 

 

 

153

 

 

 

40,875

 

Change in product inventory

 

 

(1,740

)

 

 

3,258

 

 

 

1,518

 

 

 

(1,345

)

 

 

(96

)

 

 

(1,441

)

 

 

(3,768

)

 

 

3,269

 

 

 

(499

)

Reclamation and other costs

 

 

(580

)

 

 

(312

)

 

 

(892

)

 

 

(3,271

)

 

 

(201

)

 

 

(3,472

)

 

 

(7,287

)

 

 

(823

)

 

 

(8,110

)

Exclusion of Lucky Friday cash costs (8)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(3,634

)

 

 

—

 

 

 

(3,634

)

Exclusion of Keno Hill cash costs (6)

 

 

(13,069

)

 

 

—

 

 

 

(13,069

)

 

 

(11,769

)

 

 

—

 

 

 

(11,769

)

 

 

(58,826

)

 

 

—

 

 

 

(58,826

)

Exclusion of Other costs

 

 

—

 

 

 

(7,095

)

 

 

(7,095

)

 

 

—

 

 

 

(6,187

)

 

 

(6,187

)

 

 

—

 

 

 

(20,527

)

 

 

(20,527

)

Cash Cost, Before By-product Credits (1)

 

 

90,459

 

 

 

45,104

 

 

 

135,563

 

 

 

87,284

 

 

 

40,701

 

 

 

127,985

 

 

 

344,146

 

 

 

153,378

 

 

 

497,524

 

Reclamation and other costs

 

 

952

 

 

 

312

 

 

 

1,264

 

 

 

968

 

 

 

201

 

 

 

1,169

 

 

 

4,032

 

 

 

823

 

 

 

4,855

 

Sustaining capital

 

 

22,463

 

 

 

1,894

 

 

 

24,357

 

 

 

28,152

 

 

 

5,381

 

 

 

33,533

 

 

 

91,610

 

 

 

18,963

 

 

 

110,573

 

Exclusion of Lucky Friday sustaining costs (8)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(5,396

)

 

 

—

 

 

 

(5,396

)

General and administrative

 

 

11,999

 

 

 

—

 

 

 

11,999

 

 

 

9,048

 

 

 

—

 

 

 

9,048

 

 

 

45,405

 

 

 

—

 

 

 

45,405

 

AISC, Before By-product Credits (1)

 

 

125,873

 

 

 

47,310

 

 

 

173,183

 

 

 

125,452

 

 

 

46,283

 

 

 

171,735

 

 

 

479,797

 

 

 

173,164

 

 

 

652,961

 

By-product credits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Zinc

 

 

(30,324

)

 

 

—

 

 

 

(30,324

)

 

 

(32,590

)

 

 

—

 

 

 

(32,590

)

 

 

(115,332

)

 

 

—

 

 

 

(115,332

)

Gold

 

 

(34,977

)

 

 

—

 

 

 

(34,977

)

 

 

(34,363

)

 

 

—

 

 

 

(34,363

)

 

 

(115,189

)

 

 

—

 

 

 

(115,189

)

Lead

 

 

(20,134

)

 

 

—

 

 

 

(20,134

)

 

 

(21,215

)

 

 

—

 

 

 

(21,215

)

 

 

(81,416

)

 

 

—

 

 

 

(81,416

)

Silver

 

 

—

 

 

 

(165

)

 

 

(165

)

 

 

—

 

 

 

(194

)

 

 

(194

)

 

 

—

 

 

 

(683

)

 

 

(683

)

Copper

 

 

(729

)

 

 

—

 

 

 

(729

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(409

)

 

 

—

 

 

 

(409

)

Exclusion of Lucky Friday by-product credits (8)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

3,943

 

 

 

—

 

 

 

3,943

 

Total By-product credits

 

 

(86,164

)

 

 

(165

)

 

 

(86,329

)

 

 

(88,168

)

 

 

(194

)

 

 

(88,362

)

 

 

(308,403

)

 

 

(683

)

 

 

(309,086

)

Cash Cost, After By-product Credits

 

$

4,295

 

 

$

44,939

 

 

$

49,234

 

 

$

(884

)

 

$

40,507

 

 

$

39,623

 

 

$

35,743

 

 

$

152,695

 

 

$

188,438

 

AISC, After By-product Credits

 

$

39,709

 

 

$

47,145

 

 

$

86,854

 

 

$

37,284

 

 

$

46,089

 

 

$

83,373

 

 

$

171,394

 

 

$

172,481

 

 

$

343,875

 

Ounces produced

 

 

3,335

 

 

 

20

 

 

 

 

 

3,239

 

 

 

21

 

 

 

 

 

13,372

 

 

 

87

 

 

 

Exclusion of Lucky Friday ounces produced (8)

 

 

—

 

 

 

—

 

 

 

 

 

—

 

 

 

—

 

 

 

 

 

(253

)

 

 

—

 

 

 

Divided by ounces produced

 

 

3,335

 

 

 

20

 

 

 

 

 

3,239

 

 

 

21

 

 

 

 

 

13,119

 

 

 

87

 

 

 

Cash Cost, Before By-product Credits, per Ounce

 

$

27.13

 

 

$

2,203

 

 

 

 

$

26.95

 

 

$

1,945

 

 

 

 

$

26.23

 

 

$

1,770

 

 

 

By-product credits per ounce

 

 

(25.84

)

 

 

(8

)

 

 

 

 

(27.22

)

 

 

(9

)

 

 

 

 

(23.51

)

 

 

(8

)

 

 

Cash Cost, After By-product Credits, per Ounce

 

$

1.29

 

 

$

2,195

 

 

 

 

$

(0.27

)

 

$

1,936

 

 

 

 

$

2.72

 

 

$

1,762

 

 

 

AISC, Before By-product Credits, per Ounce

 

$

37.75

 

 

$

2,311

 

 

 

 

$

38.73

 

 

$

2,212

 

 

 

 

$

36.57

 

 

$

1,998

 

 

 

By-product credits per ounce

 

 

(25.84

)

 

 

(8

)

 

 

 

 

(27.22

)

 

 

(9

)

 

 

 

 

(23.51

)

 

 

(8

)

 

 

AISC, After By-product Credits, per Ounce

 

$

11.91

 

 

 

2,303

 

 

 

 

$

11.51

 

 

 

2,203

 

 

 

 

$

13.06

 

 

 

1,990

 

 

 

 

In thousands (except per ounce amounts)

Three Months Ended September 30, 2024 (5)

Three Months Ended June 30, 2024 (5)

Three Months Ended March 31, 2024 (5)

 

Greens Creek

Lucky Friday

Keno Hill

Corporate (2)

Total Silver

Greens Creek

Lucky Friday

Keno Hill (4)

Corporate (2)

Total Silver

Greens Creek

Lucky Friday

Keno Hill (4)

Corporate (2)

Total Silver

Total cost of sales

$

73,597

 

$

39,286

 

$

19,809

 

$

—

$

132,692

 

$

56,786

 

$

37,523

 

$

28,950

 

$

—

$

123,259

 

$

69,857

 

$

27,519

 

$

10,847

 

$

—

$

108,223

Depreciation, depletion and amortization

 

(13,948

)

 

(10,681

)

 

(4,218

)

 

—

 

(28,847

)

 

(11,316

)

 

(10,708

)

 

(4,729

)

 

—

 

(26,753

)

 

(14,443

)

 

(7,911

)

 

(3,602

)

 

—

 

(25,956)

Treatment costs

 

5,962

 

 

3,650

 

 

—

 

 

—

 

9,612

 

 

6,069

 

 

2,746

 

 

—

 

 

—

 

8,815

 

 

9,724

 

 

3,223

 

 

—

 

 

—

 

12,947

Change in product inventory

 

(8,125

)

 

106

 

 

—

 

 

—

 

(8,019

)

 

7,296

 

 

(115

)

 

—

 

 

—

 

7,181

 

 

(2,196

)

 

611

 

 

—

 

 

—

 

(1,585)

Reclamation and other costs

 

(1,825

)

 

(241

)

 

—

 

 

—

 

(2,066

)

 

(882

)

 

(311

)

 

—

 

 

—

 

(1,193

)

 

(655

)

 

(102

)

 

—

 

 

—

 

(757)

Exclusion of Lucky Friday cash costs (5)

 

—

 

 

—

 

 

—

 

 

—

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

—

 

 

—

 

 

(3,634

)

 

—

 

 

—

 

(3,634)

Exclusion of Keno Hill cash costs (4)

 

—

 

 

—

 

 

(15,591

)

 

—

 

(15,591

)

 

—

 

 

—

 

 

(24,221

)

 

—

 

(24,221

)

 

—

 

 

—

 

 

(7,245

)

 

—

 

(7,245)

Cash Cost, Before By-product Credits (1)

 

55,661

 

 

32,120

 

 

—

 

 

—

 

87,781

 

 

57,953

 

 

29,135

 

 

—

 

 

—

 

87,088

 

 

62,287

 

 

19,706

 

 

—

 

 

—

 

81,993

Reclamation and other costs

 

786

 

 

303

 

 

—

 

 

—

 

1,089

 

 

785

 

 

183

 

 

—

 

 

—

 

968

 

 

785

 

 

222

 

 

—

 

 

—

 

1,007

Sustaining capital

 

10,558

 

 

10,862

 

 

—

 

 

42

 

21,462

 

 

10,911

 

 

9,517

 

 

—

 

 

1,035

 

21,463

 

 

8,416

 

 

12,051

 

 

—

 

 

66

 

20,533

Exclusion of Lucky Friday sustaining costs (5)

 

—

 

 

—

 

 

—

 

 

—

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

—

 

 

—

 

 

(5,396

)

 

—

 

 

—

 

(5,396)

General and administrative

 

—

 

 

—

 

 

—

 

 

10,401

 

10,401

 

 

—

 

 

—

 

 

—

 

 

14,740

 

14,740

 

 

—

 

 

—

 

 

—

 

 

11,216

 

11,216

AISC, Before By-product Credits (1)

 

67,005

 

 

43,285

 

 

—

 

 

10,443

 

120,733

 

 

69,649

 

 

38,835

 

 

—

 

 

15,775

 

124,259

 

 

71,488

 

 

26,583

 

 

—

 

 

11,282

 

109,353

By-product credits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Zinc

 

(22,126

)

 

(7,046

)

 

—

 

 

—

 

(29,172

)

 

(21,873

)

 

(6,706

)

 

—

 

 

—

 

(28,579

)

 

(20,206

)

 

(4,785

)

 

—

 

 

—

 

(24,991)

Gold

 

(25,430

)

 

—

 

 

—

 

 

—

 

(25,430

)

 

(28,844

)

 

—

 

 

—

 

 

—

 

(28,844

)

 

(26,551

)

 

—

 

 

—

 

 

—

 

(26,551)

Lead

 

(5,970

)

 

(13,245

)

 

—

 

 

—

 

(19,215

)

 

(6,818

)

 

(15,466

)

 

—

 

 

—

 

(22,284

)

 

(6,980

)

 

(11,720

)

 

—

 

 

—

 

(18,700)

Copper

 

(409

)

 

—

 

 

—

 

 

—

 

(409

)

 

—

 

 

—

 

 

—

 

 

—

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

—

Exclusion of Lucky Friday byproduct credits (5)

 

—

 

 

—

 

 

—

 

 

—

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

—

 

 

—

 

 

3,943

 

 

—

 

 

—

 

3,943

Total By-product credits

 

(53,935

)

 

(20,291

)

 

—

 

 

—

 

(74,226

)

 

(57,535

)

 

(22,172

)

 

—

 

 

—

 

(79,707

)

 

(53,737

)

 

(12,562

)

 

—

 

 

—

 

(66,299)

Cash Cost, After By-product Credits

$

1,726

 

$

11,829

 

$

—

 

$

—

$

13,555

 

$

418

 

$

6,963

 

$

—

 

$

—

$

7,381

 

$

8,550

 

$

7,144

 

$

—

 

$

—

$

15,694

AISC, After By-product Credits

$

13,070

 

$

22,994

 

$

—

 

$

10,443

$

46,507

 

$

12,114

 

$

16,663

 

$

—

 

$

15,775

$

44,552

 

$

17,751

 

$

14,021

 

$

—

 

$

11,282

$

43,054

Ounces produced

 

1,857

 

 

1,185

 

 

 

 

3,042

 

 

2,244

 

 

1,308

 

 

 

 

3,552

 

 

2,479

 

 

1,061

 

 

 

 

3,540

Exclusion of Lucky Friday ounces produced (5)

 

—

 

 

—

 

 

 

 

—

 

 

—

 

 

—

 

 

 

 

—

 

 

—

 

 

(253

)

 

 

 

(253)

Divided by ounces produced

 

1,857

 

 

1,185

 

 

 

 

3,042

 

 

2,244

 

 

1,308

 

 

 

 

3,552

 

 

2,479

 

 

808

 

 

 

 

3,287

Cash Cost, Before By-product Credits, per Silver Ounce

$

29.97

 

$

27.11

 

 

 

$

28.86

 

$

25.83

 

$

22.27

 

 

 

$

24.52

 

$

25.13

 

$

24.41

 

 

 

$

24.95

By-product credits per ounce

 

(29.04

)

 

(17.13

)

 

 

 

(24.40

)

 

(25.64

)

 

(16.95

)

 

 

 

(22.44

)

 

(21.68

)

 

(15.56

)

 

 

 

(20.17)

Cash Cost, After By-product Credits, per Silver Ounce

$

0.93

 

$

9.98

 

 

 

$

4.46

 

$

0.19

 

$

5.32

 

 

 

$

2.08

 

$

3.45

 

$

8.85

 

 

 

$

4.78

AISC, Before By-product Credits, per Silver Ounce

$

36.08

 

$

36.53

 

 

 

$

39.69

 

$

31.04

 

$

29.69

 

 

 

$

34.99

 

$

28.84

 

$

32.92

 

 

 

$

33.27

By-product credits per ounce

 

(29.04

)

 

(17.13

)

 

 

 

(24.40

)

 

(25.64

)

 

(16.95

)

 

 

 

(22.44

)

 

(21.68

)

 

(15.56

)

 

 

 

(20.17)

AISC, After By-product Credits, per Silver Ounce

$

7.04

 

$

19.40

 

 

 

$

15.29

 

$

5.40

 

$

12.74

 

 

 

$

12.54

 

$

7.16

 

$

17.36

 

 

 

$

13.10

 

In thousands (except per ounce amounts)

 

Three Months Ended September 30, 2024 (5)

 

Three Months Ended June 30, 2024 (5)

 

Three Months Ended March 31, 2024 (5)

 

 

Casa Berardi

 

Other (4)

 

Total Gold and Other

 

Casa Berardi

 

Other (4)

 

Total Gold and Other

 

Casa Berardi

 

Other (4)

 

Total Gold and Other

Total cost of sales

 

$

46,280

 

 

$

6,827

 

 

$

53,107

 

 

$

67,340

 

 

$

3,628

 

 

$

70,968

 

 

$

58,260

 

 

$

3,885

 

 

$

62,145

 

Depreciation, depletion and amortization

 

 

(12,097

)

 

 

—

 

 

 

(12,097

)

 

 

(27,010

)

 

 

—

 

 

 

(27,010

)

 

 

(22,951

)

 

 

—

 

 

 

(22,951

)

Treatment costs

 

 

36

 

 

 

—

 

 

 

36

 

 

 

52

 

 

 

—

 

 

 

52

 

 

 

24

 

 

 

—

 

 

 

24

 

Change in product inventory

 

 

2,176

 

 

 

—

 

 

 

2,176

 

 

 

(550

)

 

 

—

 

 

 

(550

)

 

 

1,739

 

 

 

—

 

 

 

1,739

 

Reclamation and other costs

 

 

(207

)

 

 

—

 

 

 

(207

)

 

 

(206

)

 

 

—

 

 

 

(206

)

 

 

(209

)

 

 

—

 

 

 

(209

)

Exclusion of Casa Berardi cash costs

 

 

—

 

 

 

(6,827

)

 

 

(6,827

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Exclusion of Nevada and Other costs

 

 

—

 

 

 

 

 

—

 

 

 

—

 

 

 

(3,628

)

 

 

(3,628

)

 

 

—

 

 

 

(3,885

)

 

 

(3,885

)

Cash Cost, Before By-product Credits (1)

 

 

36,188

 

 

 

—

 

 

 

36,188

 

 

 

39,626

 

 

 

—

 

 

 

39,626

 

 

 

36,863

 

 

 

—

 

 

 

36,863

 

Reclamation and other costs

 

 

207

 

 

 

—

 

 

 

207

 

 

 

206

 

 

 

 

 

206

 

 

 

209

 

 

 

—

 

 

 

209

 

Sustaining capital

 

 

6,054

 

 

 

—

 

 

 

6,054

 

 

 

2,667

 

 

 

—

 

 

 

2,667

 

 

 

4,861

 

 

 

—

 

 

 

4,861

 

AISC, Before By-product Credits (1)

 

 

42,449

 

 

 

—

 

 

 

42,449

 

 

 

42,499

 

 

 

—

 

 

 

42,499

 

 

 

41,933

 

 

 

—

 

 

 

41,933

 

By-product credits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Silver

 

 

(163

)

 

 

—

 

 

 

(163

)

 

 

(183

)

 

 

—

 

 

 

(183

)

 

 

(143

)

 

 

—

 

 

 

(143

)

Total By-product credits

 

 

(163

)

 

 

—

 

 

 

(163

)

 

 

(183

)

 

 

—

 

 

 

(183

)

 

 

(143

)

 

 

—

 

 

 

(143

)

Cash Cost, After By-product Credits

 

$

36,025

 

 

$

—

 

 

$

36,025

 

 

$

39,443

 

 

$

—

 

 

$

39,443

 

 

$

36,720

 

 

$

—

 

 

$

36,720

 

AISC, After By-product Credits

 

$

42,286

 

 

$

—

 

 

$

42,286

 

 

$

42,316

 

 

$

—

 

 

$

42,316

 

 

$

41,790

 

 

$

—

 

 

$

41,790

 

Divided by gold ounces produced

 

 

21

 

 

 

—

 

 

 

21

 

 

 

23

 

 

 

—

 

 

 

23

 

 

 

22

 

 

 

—

 

 

 

22

 

Cash Cost, Before By-product Credits, per Gold Ounce

 

$

1,762

 

 

$

—

 

 

$

1,762

 

 

$

1,709

 

 

$

—

 

 

$

1,709

 

 

$

1,675

 

 

$

—

 

 

$

1,675

 

By-product credits per ounce

 

 

(8

)

 

 

—

 

 

 

(8

)

 

 

(8

)

 

 

—

 

 

 

(8

)

 

 

(6

)

 

 

—

 

 

 

(6

)

Cash Cost, After By-product Credits, per Gold Ounce

 

$

1,754

 

 

$

—

 

 

$

1,754

 

 

$

1,701

 

 

$

—

 

 

$

1,701

 

 

$

1,669

 

 

$

—

 

 

$

1,669

 

AISC, Before By-product Credits, per Gold Ounce

 

$

2,067

 

 

$

—

 

 

$

2,067

 

 

$

1,833

 

 

$

—

 

 

$

1,833

 

 

$

1,905

 

 

$

—

 

 

$

1,905

 

By-product credits per ounce

 

 

(8

)

 

 

—

 

 

 

(8

)

 

 

(8

)

 

 

—

 

 

 

(8

)

 

 

(6

)

 

 

—

 

 

 

(6

)

AISC, After By-product Credits, per Gold Ounce

 

$

2,059

 

 

$

—

 

 

$

2,059

 

 

$

1,825

 

 

$

—

 

 

$

1,825

 

 

$

1,899

 

 

$

—

 

 

$

1,899

 

 

In thousands (except per ounce amounts)

 

Three Months Ended September 30, 2024 (5)

 

Three Months Ended June 30, 2024 (5)

 

Three Months Ended March 31, 2024 (5)

 

 

Total Silver

 

Total Gold and Other

 

Total

 

Total Silver

 

Total Gold and Other

 

Total

 

Total Silver

 

Total Gold and Other

 

Total

Total cost of sales

 

$

132,692

 

 

$

53,107

 

 

$

185,799

 

 

$

123,259

 

 

$

70,968

 

 

$

194,227

 

 

$

108,223

 

 

$

62,145

 

 

$

170,368

 

Depreciation, depletion and amortization

 

 

(28,847

)

 

 

(12,097

)

 

 

(40,944

)

 

$

(26,753

)

 

 

(27,010

)

 

 

(53,763

)

 

 

(25,956

)

 

 

(22,951

)

 

 

(48,907

)

Treatment costs

 

 

9,612

 

 

 

36

 

 

 

9,648

 

 

$

8,815

 

 

 

52

 

 

 

8,867

 

 

 

12,947

 

 

 

24

 

 

 

12,971

 

Change in product inventory

 

 

(8,019

)

 

 

2,176

 

 

 

(5,843

)

 

$

7,181

 

 

 

(550

)

 

 

6,631

 

 

 

(1,585

)

 

 

1,739

 

 

 

154

 

Reclamation and other costs

 

 

(2,066

)

 

 

(207

)

 

 

(2,273

)

 

$

(1,193

)

 

 

(206

)

 

 

(1,399

)

 

 

(757

)

 

 

(209

)

 

 

(966

)

Exclusion of Keno Hill cash cost

 

 

(15,591

)

 

 

—

 

 

 

(15,591

)

 

 

(24,221

)

 

 

 

 

(24,221

)

 

 

(7,245

)

 

 

—

 

 

 

(7,245

)

Exclusion of Lucky Friday cash cost

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(3,634

)

 

 

—

 

 

 

(3,634

)

Exclusion of Casa Berardi cash costs

 

 

—

 

 

 

(6,827

)

 

 

(6,827

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Exclusion of Nevada and Other costs

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(3,628

)

 

 

(3,628

)

 

 

—

 

 

 

(3,885

)

 

 

(3,885

)

Cash Cost, Before By-product Credits (1)

 

 

87,781

 

 

 

36,188

 

 

 

123,969

 

 

 

87,088

 

 

 

39,626

 

 

 

126,714

 

 

 

81,993

 

 

 

36,863

 

 

 

118,856

 

Reclamation and other costs

 

 

1,089

 

 

 

207

 

 

 

1,296

 

 

 

968

 

 

 

206

 

 

 

1,174

 

 

 

1,007

 

 

 

209

 

 

 

1,216

 

Sustaining capital

 

 

21,462

 

 

 

6,054

 

 

 

27,516

 

 

 

21,463

 

 

 

2,667

 

 

 

24,130

 

 

 

20,533

 

 

 

4,861

 

 

 

25,394

 

Exclusion of Lucky Friday sustaining costs (5)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(5,396

)

 

 

—

 

 

 

(5,396

)

General and administrative

 

 

10,401

 

 

 

—

 

 

 

10,401

 

 

 

14,740

 

 

 

—

 

 

 

14,740

 

 

 

11,216

 

 

 

—

 

 

 

11,216

 

AISC, Before By-product Credits (1)

 

 

120,733

 

 

 

42,449

 

 

 

163,182

 

 

 

124,259

 

 

 

42,499

 

 

 

166,758

 

 

 

109,353

 

 

 

41,933

 

 

 

151,286

 

By-product credits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Zinc

 

 

(29,172

)

 

 

—

 

 

 

(29,172

)

 

 

(28,579

)

 

 

—

 

 

 

(28,579

)

 

 

(24,991

)

 

 

—

 

 

 

(24,991

)

Gold

 

 

(25,430

)

 

 

—

 

 

 

(25,430

)

 

 

(28,844

)

 

 

—

 

 

 

(28,844

)

 

 

(26,551

)

 

 

—

 

 

 

(26,551

)

Lead

 

 

(19,215

)

 

 

—

 

 

 

(19,215

)

 

 

(22,284

)

 

 

—

 

 

 

(22,284

)

 

 

(18,700

)

 

 

—

 

 

 

(18,700

)

Copper

 

 

(409

)

 

 

—

 

 

 

(409

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Silver

 

 

—

 

 

 

(163

)

 

 

(163

)

 

 

—

 

 

 

(183

)

 

 

(183

)

 

 

—

 

 

 

(143

)

 

 

(143

)

Exclusion of Lucky Friday byproduct credits (5)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

3,943

 

 

 

—

 

 

 

3,943

 

Total By-product credits

 

 

(74,226

)

 

 

(163

)

 

 

(74,389

)

 

 

(79,707

)

 

 

(183

)

 

 

(79,890

)

 

 

(66,299

)

 

 

(143

)

 

 

(66,442

)

Cash Cost, After By-product Credits

 

$

13,555

 

 

$

36,025

 

 

$

49,580

 

 

$

7,381

 

 

$

39,443

 

 

$

46,824

 

 

$

15,694

 

 

$

36,720

 

 

$

52,414

 

AISC, After By-product Credits

 

$

46,507

 

 

$

42,286

 

 

$

88,793

 

 

$

44,552

 

 

$

42,316

 

 

$

86,868

 

 

$

43,054

 

 

$

41,790

 

 

$

84,844

 

Divided by ounces produced

 

 

3,042

 

 

 

21

 

 

 

 

 

3,552

 

 

 

23

 

 

 

 

 

3,287

 

 

 

22

 

 

 

Cash Cost, Before By-product Credits, per Ounce

 

$

28.86

 

 

$

1,762

 

 

 

 

$

24.52

 

 

 

1,709

 

 

 

 

$

24.95

 

 

$

1,675

 

 

 

By-product credits per ounce

 

 

(24.40

)

 

 

(8

)

 

 

 

 

(22.44

)

 

 

(8

)

 

 

 

 

(20.17

)

 

 

(6

)

 

 

Cash Cost, After By-product Credits, per Ounce

 

$

4.46

 

 

$

1,754

 

 

 

 

$

2.08

 

 

$

1,701

 

 

 

 

$

4.78

 

 

$

1,669

 

 

 

AISC, Before By-product Credits, per Ounce

 

$

39.69

 

 

$

2,067

 

 

 

 

$

34.98

 

 

$

1,833

 

 

 

 

$

33.27

 

 

$

1,905

 

 

 

By-product credits per ounce

 

 

(24.40

)

 

 

(8

)

 

 

 

 

(22.44

)

 

 

(8

)

 

 

 

 

(20.17

)

 

 

(6

)

 

 

AISC, After By-product Credits, per Ounce

 

$

15.29

 

 

$

2,059

 

 

 

 

$

12.54

 

 

$

1,825

 

 

 

 

$

13.10

 

 

$

1,899

 

 

 

(1)

Includes all direct and indirect operating costs related to the physical activities of producing metals, including mining, processing and other plant costs, third-party refining and marketing expense, on-site general and administrative costs and royalties, before by-product revenues earned from all metals other than the primary metal produced at each operation. AISC, Before By-product Credits also includes reclamation and sustaining capital costs.

(2)

AISC, Before By-product Credits for our consolidated silver properties includes corporate costs for general and administrative expense and sustaining capital.

(3)

During the three months ended March 31, 2023, the Company completed the necessary studies to conclude usage of the F-160 pit as a tailings storage facility after mining is complete. As a result, a portion of the mining costs have been excluded from Cash Cost, Before By-product Credits and AISC, Before By-product Credits.

(4)

Other includes $20.5 million of sales and total cost of sales for the year ended December 31, 2024 and $5.3 million of sales and total cost of sales for the year ended December 31, 2023, related to the environmental services business acquired as part of the Alexco acquisition.

(5)

Prior year presentation has been adjusted to conform with current year presentation to eliminate exploration costs from the calculation of AISC, Before By-product Credits as exploration is an activity directed at the Corporate level to find new mineral reserve and resource deposits, and therefore we believe it is inappropriate to include exploration costs in the calculation of AISC, Before By-product Credits for a specific mining operation.

(6)

Keno Hill is in the ramp-up phase of production and is excluded from the calculation of total cost of sales, Cash Cost, Before By-product Credits, Cash Cost, After By-product Credits, AISC, Before By-product Credits, and AISC, After By-product Credits.

(7)

Casa Berardi operations were suspended in June 2023 in response to the directive of the Quebec Ministry of Natural Resources and Forests as a result of fires in the region. 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.

(8)

Lucky Friday operations were suspended in August 2023 following the underground fire in the #2 shaft secondary egress. The portion of cash costs, sustaining costs, by-product credits, and silver production incurred since the suspension 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.

 

2025 Guidance, Previous and Current Estimates: Reconciliation of Cost of Sales to Non-GAAP Measures

 

In thousands (except per ounce amounts)

 

Estimate for Twelve Months Ended December 31, 2025

 

 

Greens Creek

 

Lucky Friday

 

Corporate(3)

 

Total Silver

Total cost of sales

 

$

289,000

 

 

$

165,000

 

 

$

—

 

$

454,000

 

Depreciation, depletion and amortization

 

 

(60,000

)

 

 

(53,000

)

 

 

—

 

 

(113,000

)

Treatment costs

 

 

11,500

 

 

 

10,000

 

 

 

—

 

 

21,500

 

Change in product inventory

 

 

—

 

 

 

—

 

 

 

—

 

 

—

 

Other costs

 

 

0

 

 

 

1,000

 

 

 

—

 

 

1,000

 

Cash Cost, Before By-product Credits (1)

 

 

240,500

 

 

 

123,000

 

 

 

—

 

 

363,500

 

Reclamation and other costs

 

 

3,000

 

 

 

1,000

 

 

 

—

 

 

4,000

 

Sustaining capital

 

 

52,500

 

 

 

65,000

 

 

 

5,600

 

 

123,100

 

General and administrative

 

 

—

 

 

 

—

 

 

 

52,400

 

 

52,400

 

AISC, Before By-product Credits (1)

 

 

296,000

 

 

 

189,000

 

 

 

58,000

 

 

543,000

 

By-product credits:

 

 

 

 

 

 

 

 

Zinc

 

 

(96,000

)

 

 

(31,500

)

 

 

—

 

 

(127,500

)

Gold

 

 

(118,000

)

 

 

—

 

 

 

—

 

 

(118,000

)

Lead

 

 

(24,000

)

 

 

(56,500

)

 

 

—

 

 

(80,500

)

Total By-product credits

 

 

(238,000

)

 

 

(88,000

)

 

 

—

 

 

(326,000

)

Cash Cost, After By-product Credits

 

$

2,500

 

 

$

35,000

 

 

$

—

 

$

37,500

 

AISC, After By-product Credits

 

$

58,000

 

 

$

101,000

 

 

$

58,000

 

$

217,000

 

Divided by silver ounces produced

 

 

8,450

 

 

 

4,900

 

 

 

 

 

13,350

 

Cash Cost, Before By-product Credits, per Silver Ounce

 

$

28.46

 

 

$

25.10

 

 

 

 

$

27.23

 

By-product credits per silver ounce

 

 

(28.17

)

 

 

(17.96

)

 

 

 

 

(24.42

)

Cash Cost, After By-product Credits, per Silver Ounce

 

$

0.30

 

 

$

7.14

 

 

 

 

$

2.81

 

AISC, Before By-product Credits, per Silver Ounce

 

$

35.03

 

 

$

38.57

 

 

 

 

$

40.67

 

By-product credits per silver ounce

 

 

(28.17

)

 

 

(17.96

)

 

 

 

 

(24.42

)

AISC, After By-product Credits, per Silver Ounce

 

$

6.86

 

 

$

20.61

 

 

 

 

$

16.25

 

(1)

Includes all direct and indirect operating costs related to the physical activities of producing metals, including mining, processing and other plant costs, third-party refining and marketing expense, on-site general and administrative costs and royalties, before by-product revenues earned from all metals other than the primary metal produced at each operation. AISC, Before By-product Credits also includes reclamation and sustaining capital costs.

(2)

AISC, Before By-product Credits for our consolidated silver properties includes corporate costs for general and administrative expense, and sustaining capital.

 

Reconciliation of Net Income (Loss ) (GAAP) and Debt (GAAP) to Adjusted EBITDA (non-GAAP) and Net Debt (non-GAAP)

This release refers to the non-GAAP measures of adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA"), which is a measure of our operating performance, and net debt to adjusted EBITDA for the last 12 months (or "LTM adjusted EBITDA"), which is a measure of our ability to service our debt. Adjusted EBITDA is calculated as net income (loss) before the following items: interest expense, income and mining taxes, depreciation, depletion, and amortization expense, ramp-up and suspension costs, gains and losses on disposition of assets, foreign exchange gains and losses, write down of property, plant and equipment, fair value adjustments, net, interest and other income, provisions for environmental matters, stock-based compensation, provisional price gains and losses, monetization of zinc and lead hedges and inventory adjustments. Net debt is calculated as total debt, which consists of the liability balances for our Senior Notes, capital leases, and other notes payable, less the total of our cash and cash equivalents and short-term investments. Management believes that, when presented in conjunction with comparable GAAP measures, adjusted EBITDA and net debt to LTM adjusted EBITDA are useful to investors in evaluating our operating performance and ability to meet our debt obligations. The following table reconciles net income (loss) and debt to adjusted EBITDA and net debt:

Dollars are in thousands

 

1Q-2025

 

4Q-2024

 

3Q-2024

 

2Q-2024

 

1Q-2024

 

LTM March 31, 2025

 

FY 2024

Net income (loss)

 

$

28,872

 

 

$

11,924

 

 

$

1,761

 

 

$

27,870

 

 

$

(5,753

)

 

$

70,427

 

 

$

35,802

 

Interest expense

 

 

11,551

 

 

 

13,784

 

 

 

10,901

 

 

 

12,505

 

 

 

12,644

 

 

 

48,741

 

 

 

49,834

 

Income and mining tax provision

 

 

16,145

 

 

 

8,069

 

 

 

11,450

 

 

 

9,080

 

 

 

1,815

 

 

 

44,744

 

 

 

30,414

 

Depreciation, depletion and amortization

 

 

39,172

 

 

 

41,206

 

 

 

44,118

 

 

 

53,921

 

 

 

51,226

 

 

 

178,417

 

 

 

190,471

 

Ramp-up and suspension costs

 

 

2,135

 

 

 

7,492

 

 

 

11,295

 

 

 

4,272

 

 

 

10,926

 

 

 

25,194

 

 

 

33,985

 

Loss (gain) on disposition of properties, plants, equipment, and mineral interests

 

 

211

 

 

 

(86

)

 

 

(31

)

 

 

(1,196

)

 

 

69

 

 

 

(1,102

)

 

 

(1,244

)

Foreign exchange loss (gain)

 

 

356

 

 

 

(4,143

)

 

 

3,246

 

 

 

(2,673

)

 

 

(3,982

)

 

 

(3,214

)

 

 

(7,552

)

Write down of property, plant and equipment

 

 

—

 

 

 

110

 

 

 

14,464

 

 

 

—

 

 

 

—

 

 

 

14,574

 

 

 

14,574

 

Fair value adjustments, net

 

 

(3,627

)

 

 

9,008

 

 

 

(3,654

)

 

 

(5,002

)

 

 

1,852

 

 

 

(3,275

)

 

 

2,204

 

Provisional price gains

 

 

(6,916

)

 

 

(3,330

)

 

 

(5,080

)

 

 

(10,937

)

 

 

(3,533

)

 

 

(26,263

)

 

 

(22,880

)

Provision for closed operations and environmental matters

 

 

790

 

 

 

3,162

 

 

 

1,542

 

 

 

1,153

 

 

 

986

 

 

 

6,647

 

 

 

6,843

 

Stock-based compensation

 

 

1,936

 

 

 

2,258

 

 

 

2,255

 

 

 

2,982

 

 

 

1,164

 

 

 

9,431

 

 

 

8,659

 

Inventory adjustments

 

 

1,558

 

 

 

1,633

 

 

 

178

 

 

 

2,225

 

 

 

7,671

 

 

 

5,594

 

 

 

11,707

 

Monetization of zinc and lead hedges

 

 

(454

)

 

 

(4,025

)

 

 

(2,356

)

 

 

(2,125

)

 

 

(1,977

)

 

 

(8,960

)

 

 

(10,483

)

Other income

 

 

(941

)

 

 

(504

)

 

 

(1,230

)

 

 

(1,180

)

 

 

(1,511

)

 

 

(3,855

)

 

 

(4,425

)

Adjusted EBITDA

 

$

90,788

 

 

$

86,558

 

 

$

88,859

 

 

$

90,895

 

 

$

71,597

 

 

$

357,100

 

 

$

337,909

 

Total debt

 

 

 

 

 

 

 

 

 

 

 

$

568,653

 

 

$

550,713

 

Less: Cash and cash equivalents

 

 

 

 

 

 

 

 

 

 

 

 

23,668

 

 

 

26,868

 

Net debt

 

 

 

 

 

 

 

 

 

 

 

$

544,985

 

 

$

523,845

 

Net debt/LTM adjusted EBITDA (non-GAAP)

 

 

 

 

 

 

 

 

 

 

 

 

1.5

 

 

 

1.6

 

 

Reconciliation of Net Income (Loss) Applicable to Common Stockholders (GAAP) to Adjusted Net income (Loss) Applicable to Common Shareholders (non-GAAP)

This release refers to a non-GAAP measure of adjusted net income (loss) applicable to common stockholders and adjusted net income (loss) per share, which are indicators of our performance. They exclude certain impacts which are of a nature which we believe are not reflective of our underlying performance. Management believes that adjusted net income (loss) per common share provides investors with the ability to better evaluate our underlying operating performance.

Dollars are in thousands

1Q-2025

 

4Q-2024

 

3Q-2024

 

2Q-2024

 

1Q-2024

 

 

FY-2024

Net income (loss) applicable to common stockholders

$

28,734

 

 

$

11,786

 

 

$

1,623

 

 

$

27,732

 

 

$

(5,891

)

 

$

35,250

 

Adjusted for items below:

 

 

 

 

 

 

 

 

 

 

 

 

Fair value adjustments, net

 

(3,627

)

 

 

9,008

 

 

 

(3,654

)

 

 

(5,002

)

 

 

1,852

 

 

 

2,204

 

Provisional pricing gains

 

(6,916

)

 

 

(3,330

)

 

 

(5,080

)

 

 

(10,937

)

 

 

(3,533

)

 

 

(22,880

)

Environmental accruals

 

—

 

 

 

1,881

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,881

 

Write down of property, plant and equipment

 

—

 

 

 

110

 

 

 

14,464

 

 

 

—

 

 

 

—

 

 

 

14,574

 

Foreign exchange loss (gain)

 

356

 

 

 

(4,143

)

 

 

3,246

 

 

 

(2,673

)

 

 

(3,982

)

 

 

(7,552

)

Ramp-up and suspension costs

 

3,306

 

 

 

9,567

 

 

 

13,679

 

 

 

5,538

 

 

 

14,523

 

 

 

43,307

 

(Gain) loss on disposition of properties, plants, equipment and mineral interests

 

211

 

 

 

(86

)

 

 

(31

)

 

 

(1,196

)

 

 

69

 

 

 

(1,244

)

Inventory adjustments

 

1,558

 

 

 

1,633

 

 

 

178

 

 

 

2,225

 

 

 

7,671

 

 

 

11,707

 

Monetization of zinc hedges

 

(454

)

 

 

(4,025

)

 

 

(2,356

)

 

 

(2,125

)

 

 

(1,977

)

 

 

(10,483

)

Other

 

54

 

 

 

664

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

664

 

Adjusted net income applicable to common stockholders

$

23,222

 

 

$

23,065

 

 

$

22,069

 

 

$

13,562

 

 

$

8,732

 

 

$

67,428

 

Weighted average shares - basic

 

632,047

 

 

 

628,025

 

 

 

621,921

 

 

 

617,106

 

 

 

616,199

 

 

 

620,848

 

Weighted average shares - diluted

 

634,708

 

 

 

631,442

 

 

 

625,739

 

 

 

622,206

 

 

 

616,199

 

 

 

622,535

 

Basic adjusted net income per common stock (in cents)

 

0.04

 

 

 

0.04

 

 

 

0.03

 

 

 

0.02

 

 

 

0.01

 

 

 

0.11

 

Diluted adjusted net income per common stock (in cents)

 

0.04

 

 

 

0.04

 

 

 

0.03

 

 

 

0.02

 

 

 

0.01

 

 

 

0.11

 

 

Reconciliation of Cash Provided by Operating Activities (GAAP) to Free Cash Flow (non-GAAP)

This release refers to a non-GAAP measure of free cash flow, calculated as cash provided by operating activities, less additions to properties, plants, equipment and mineral interests. Management believes that, when presented in conjunction with comparable GAAP measures, free cash flow is useful to investors in evaluating our operating performance. The following table reconciles cash provided by operating activities to free cash flow:

Dollars are in thousands

 

Three Months Ended

 

 

March 31, 2025

 

December 31, 2024

Cash provided by operating activities

 

$

35,738

 

 

$

67,470

 

Less: Additions to properties, plants equipment and mineral interests

 

$

(54,095

)

 

$

(60,784

)

Free cash flow

 

$

(18,357

)

 

$

6,686

 

Free cash flow is a non-GAAP measure calculated as cash provided by operating activities less additions to properties, plants and equipment. Cash provided by operating activities for our silver operations, the Greens Creek and Lucky Friday operating segments, excludes exploration and pre-development expense, as it is a discretionary expenditure and not a component of the mines’ operating performance.

Dollars are in thousands

 

Total Silver Operations

 

Three Months Ended March 31,

 

Years Ended December 31,

 

 

 

 

2025

 

2024

 

2023

 

2022

 

2021

Cash provided by operating activities

 

$

1,060,150

 

 

$

67,663

 

 

$

317,861

 

 

$

214,883

 

 

$

188,434

 

 

$

271,309

 

Exploration

 

$

26,685

 

 

$

343

 

 

$

8,016

 

 

$

7,815

 

 

$

5,920

 

 

$

4,591

 

Less: Additions to properties, plants equipment and mineral interests

 

$

(374,129

)

 

$

(26,205

)

 

$

(97,387

)

 

$

(108,879

)

 

$

(87,890

)

 

$

(53,768

)

Free cash flow

 

$

712,706

 

 

$

41,801

 

 

$

228,490

 

 

$

113,819

 

 

$

106,464

 

 

$

222,132

 

 

Table A

Assay Results – Q1 2025

 

Keno Hill (Yukon)

 

Zone

Drillhole Number

Drillhole Azm/Dip

Sample From (feet)

Sample To (feet)

True Width (feet)

Silver (oz/ton)

Gold (oz/ton)

Lead (%)

Zinc (%)

Depth From Surface (feet)

Underground Drilling

Bermingham - Bear Vein

BMUG25-164

125/-19

385.9

393.2

5.4

35.6

0.00

5.7

0.1

1171

Bermingham - Bear Vein

Including

385.9

387.7

1.4

126.0

0.02

15.4

0.1

1171

Bermingham - Bear Vein

BMUG24-162

134/-13

402.9

413.9

8.1

4.3

0.00

2.0

0.4

1138

Bermingham - Bear Vein

BMUG25-165

140/-24

473.4

480.0

4.1

6.5

0.00

1.2

0.4

1243

Bermingham - Bear Vein

Including

473.4

474.2

0.5

33.1

0.01

3.2

3.1

1243

Bermingham - Bear Vein

BMUG25-170

170/-12

355.8

361.5

3.2

71.2

0.01

14.7

0.3

1184

Bermingham - Bear Vein

Including

355.8

358.0

1.2

180.1

0.02

37.6

0.6

1184

Bermingham - Bear Vein

BMUG25-171

162/-16

329.7

352.5

12.1

63.8

0.01

5.1

0.1

1194

Bermingham - Bear Vein

Including

332.0

339.6

4.0

174.5

0.02

13.8

0.1

1194

Bermingham - Bear Vein

BMUG25-172

149/-12

250.7

252.0

0.5

21.9

0.00

0.0

0.0

1148

Bermingham - Footwall Vein

BMUG24-162

134/-13

478.7

480.6

1.7

25.6

0.00

4.4

2.2

1148

Bermingham - Footwall Vein

Including

480.0

480.6

0.6

66.8

0.00

11.1

5.9

1148

Bermingham - Footwall Vein

BMUG24-163

141/-17

479.7

499.3

15.3

53.8

0.01

8.7

1.1

1191

Bermingham - Footwall Vein

Including

487.2

499.3

9.4

78.6

0.01

11.9

1.7

1191

Bermingham - Footwall Vein

BMUG25-164

125/-19

495.7

501.7

5.2

17.3

0.00

1.2

2.3

1214

Bermingham - Footwall Vein

Including

495.7

497.9

1.8

45.9

0.01

2.6

5.8

1214

Bermingham - Footwall Vein

BMUG25-165

140/-24

534.8

545.0

6.8

3.4

0.00

0.2

0.5

1273

Bermingham - Footwall Vein

BMUG25-166

153/-26

577.6

582.9

3.4

94.8

0.00

2.5

0.0

1319

Bermingham - Footwall Vein

Including

577.6

579.8

1.4

220.2

0.00

5.9

0.2

1319

Bermingham - Footwall Vein

BMUG25-166

153/-26

592.8

601.4

5.5

34.5

0.00

0.8

0.2

1325

Bermingham - Footwall Vein

Including

594.3

595.0

0.5

363.2

0.00

3.2

0.3

1325

Bermingham - Footwall Vein

BMUG25-171

162/-16

460.9

462.8

1.4

42.9

0.00

15.6

0.9

1237

Bermingham - Footwall Vein

BMUG25-172

149/-12

386.0

399.9

11.6

29.7

0.01

0.7

3.8

1191

Bermingham - Footwall Vein

Including

389.6

392.1

2.0

117.0

0.03

22.0

14.8

1191

Bermingham - Footwall Vein

BMUG25-173

128/-10

369.7

375.7

5.4

4.8

0.00

0.5

2.6

1165

Bermingham - Footwall Vein

Including

372.6

374.0

1.2

13.5

0.00

0.0

7.1

1165

Bermingham - Bermingham Main Vein

BMUG24-162

134/-13

661.8

670.9

5.6

31.1

0.01

1.0

0.3

1201

Bermingham - Bermingham Main Vein

Including

662.8

665.6

1.7

80.5

0.01

1.1

0.0

1201

Bermingham - Bermingham Main Vein

BMUG25-164

125/-19

756.2

764.8

5.6

9.2

0.00

1.2

1.4

1329

Bermingham - Bermingham Main Vein

Including

761.2

763.1

1.2

29.7

0.01

4.0

1.9

1329

Bermingham - Bermingham Main Vein

BMUG25-172

149/-12

600.4

618.8

10.5

10.8

0.00

1.3

6.2

1247

Bermingham - Bermingham Main Vein

Including

602.7

603.8

0.7

52.2

0.01

0.5

0.6

1247

Surface Exploration

Elsa 17-Dixie - Dixie Vein

K-24-0921

321/-74

718.2

720.2

1.4

0.1

0.00

0.0

0.0

666

Elsa 17-Dixie - Dixie Vein

K-24-0923

284/-52

752.0

767.7

14.2

0.1

0.00

0.0

0.1

495

Bermingham Deep - Chance Vein

K-24-0919

293/-67.5

1034.8

1039.6

4.3

1.1

0.00

0.6

1.2

965

Hector Calumet - Ruby Vein

K-24-0920

332/-66

1742.8

1747.7

4.0

1.8

0.00

0.0

0.0

1587

Inca - Rico Vein

K-24-0916

262/-56

361.2

369.8

6.0

2.4

0.00

0.1

3.0

354

Inca - Inca Vein

K-24-0916

262/-56

508.9

511.0

1.9

0.0

0.01

0.0

0.1

501

Inca - Inca Vein

K-24-0922

271/-55

670.3

676.5

5.5

3.9

0.00

0.3

0.0

640

Inca - Inca Vein

K-24-0925

267/-58

1083.5

1088.4

4.3

2.9

0.06

0.1

1.1

1027

Inca - Inca Vein

K-24-0927

308/-60

1632.6

1643.9

10.1

0.3

0.01

0.0

0.0

1614

Inca - Inca Vein

K-24-0928

337/-57

1045.4

1064.0

14.8

0.1

0.00

0.0

0.2

1010

Inca - Unknown Gold Vein

K-24-0927

308/-60

1919.0

1939.5

18.4

0.0

0.13

0.0

0.1

1864

Inca - Including

Including

1935.9

1939.5

3.3

0.1

0.48

0.0

0.0

1864

Greens Creek (Alaska)

 

Zone

Drillhole Number

Drillhole Azm/Dip

Sample From (feet)

Sample To (feet)

True Width (feet)

Silver (oz/ton)

Gold (oz/ton)

Lead (%)

Zinc (%)

Depth From Mine Portal (feet)

Underground

5250 Definition

GC6539

64/-18

48.7

64.0

11.8

5.0

0.03

8.3

17.6

-14

9a Definition

GC6576

56/-10

378.8

382.3

2.5

8.9

0.03

4.2

18.8

-470

9a Definition

GC6575

70/38

511.2

536.5

18.5

11.1

0.03

4.9

11.6

-93

9a Definition

GC6575

70/38

546.3

551.6

3.9

26.3

0.02

8.1

13.8

-73

9a Definition

GC6575

70/38

563.8

572.3

6.2

27.4

0.03

5.8

11.5

-59

9a Definition

GC6574

63/-9

270.0

273.1

2.4

5.7

0.03

2.0

44.5

-448

East Definition

GC6614

45/-23

339.8

346.0

6.2

6.3

0.11

3.3

18.0

502

East Definition

GC6614

45/-23

352.0

357.0

5.0

8.0

0.11

4.0

18.6

506

East Definition

GC6612

73/-7

397.3

400.5

3.2

56.9

0.21

2.8

17.4

588

East Definition

GC6609

67/-8

383.8

385.2

1.4

70.9

0.08

1.7

5.8

585

East Definition

GC6603

62/-5

378.7

381.7

2.8

278.0

0.16

0.1

0.6

601

East Definition

GC6606

58/-28

325.4

327.8

2.0

6.2

0.20

4.1

18.6

489

East Definition

GC6599

44/-49

320.0

323.5

3.4

11.1

0.07

3.0

12.4

400

East Definition

GC6601

52/-29

328.0

331.0

3.0

8.3

0.24

3.1

12.1

486

East Definition

GC6589

59/11

395.6

397.0

1.2

16.0

0.30

10.7

27.1

697

East Definition

GC6594

58/6

371.7

378.0

5.7

14.6

0.75

8.9

23.9

665

East Definition

GC6584

47/-18

305.4

308.4

3.0

25.2

0.24

2.6

4.7

541

East Definition

GC6588

51/4

364.3

366.7

2.0

9.5

0.10

5.4

12.1

645

East Definition

GC6586

39/-30

267.9

279.8

10.8

15.1

0.04

1.4

2.8

498

East Definition

GC6581

32/0

365.9

367.5

1.3

41.1

0.11

4.4

7.1

622

Gallagher Definition

GC6605

3/-46

103.2

106.5

2.9

11.9

0.31

3.0

6.4

-819

Gallagher Definition

GC6605

3/-46

126.4

129.5

2.7

5.6

0.24

6.4

15.5

-834

Gallagher Definition

GC6582

242/-64

209.0

215.4

5.2

13.6

0.01

2.7

4.6

-929

Gallagher Definition

GC6604

82/-68

153.5

159.3

4.4

56.8

0.18

3.4

7.3

-891

Gallagher Definition

GC6604

82/-68

223.8

228.8

4.9

1.8

0.02

5.5

11.3

-957

Gallagher Definition

GC6598

213/-68

292.7

298.0

6.5

7.9

0.01

3.5

7.1

-1002

Gallagher Definition

GC6482

295/-27

128.3

130.8

1.3

4.6

0.13

7.2

14.1

-792

Gallagher Definition

GC6482

295/-27

146.5

153.5

3.5

4.8

0.10

7.7

15.0

-801

Gallager Definition

GC6482

295/-27

157.0

160.9

2.0

4.4

0.04

8.5

18.1

-804

200s Exploration

GC6566B

175/-62

627.8

630.0

2.2

24.0

0.03

11.6

19.8

-1881

 

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