HECLA MINING COMPANY

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HECLA REPORTS THIRD QUARTER 2021 RESULTS - Form 8-K/A

11/05/2021 | 08:18am EDT

HECLA REPORTS THIRD QUARTER 2021 RESULTS

Continued free cash flow generation as Casa Berardi achieves record quarterly throughput

For the Period Ended: September 30, 2021

For Release: November 4, 2021

COEUR D'ALENE, IDAHO -- Hecla Mining Company (NYSE:HL) today announced third quarter 2021 financial and operating results.

HIGHLIGHTS*

Sales of $193.6 million, consistent with the prior year quarter.

Generated $42.7 million of cash provided by operating activities with $26.9 million of additions to properties, plant, equipment and mineral interests, resulting in $15.8 million of quarterly free cash flow reflecting increased exploration spend.1

Record quarterly exploration spend of $13.7 million.

Casa Berardi achieved record quarterly throughput of nearly 400,000 tons as the mill improvements delivered 13% higher gold production.

Testing at the Lucky Friday of a new drill and blast mining method called Underhand Closed Bench (UCB) is showing good performance in controlling seismicity and improving safety with the potential to increase productivity.

Strong balance sheet with $190.9 million in cash and over $420 million of available liquidity.

Purchased carbon credits and anticipate offsetting scope 1 and scope 2 emissions to have net zero emissions in 2021.

"Hecla's results reflect our commitment to improve and innovate our operations while delivering free cash flow," said Phillips S. Baker Jr., President & CEO. "Casa Berardi achieved record quarterly throughput as our optimization programs in the mill increase recovery and ounce production. At the Lucky Friday, we continue to test our new drill and blast mining method, called Underhand Closed Bench, that allows improved management of seismicity which should increase safety and could possibly increase throughput. Greens Creek continued to lead the way because of its very low costs and despite staff shortages forcing a change in mine sequencing."

Baker continued, "This operational performance allowed us to enhance our silver-linked dividend for the second time this year and return about 20% of our free cash flow to shareholders, while having our largest exploration program in the Company's history. In addition, while Hecla already has one of the industry's lowest carbon footprints, we have taken the next step by investing in carbon credits that allows us to be net zero for our 2021 scope 1 and scope 2 emissions. We will continue our focus on reducing emissions as well as investing in credits in the future."

* All comparisons to the third quarter of 2020, unless stated

Investor Relations, Hecla Mining Company - 1-800-432-5291 - hmc-info@hecla-mining.com 1

FINANCIAL OVERVIEW

Third Quarter Ended

Nine Months Ended

HIGHLIGHTS

September 30,

2021

September 30,

2020

September 30,

2021

September 30,

2020

FINANCIAL DATA

Sales (000)

$ 193,560 $ 199,703 $ 622,395 $ 502,983

Gross profit (000)

$ 35,228 $ 58,688 $ 164,560 $ 110,188

(Loss) income applicable to common shareholders (000)

$ (1,117 ) $ 15,142 $ 22,806 $ (12,976 )

Basic and diluted (loss) income per common share (in cents)

(0.2 ) 2.9 4.3 (2.5 )

Cash provided by operating activities

$ 42,742 $ 73,439 $ 166,782 $ 115,892

Net loss applicable to common shareholders for the third quarter was $1.1 million, or 0.2 cent per share, compared to net income of $15.1 million, or 2.9 cents per share, for the same period in 2020. The lower third quarter results compared to the previous year were mainly due to the following items:

Lower gross profit due to lower realized silver and gold prices and Greens Creek's lower grades based on mine sequencing impacted by staff shortages.

Exploration and pre-development expense increased by $12.9 million due to increased exploration at Midas, San Sebastian, Greens Creek, Casa Berardi and Kinskuch, and for drift development to the Hatter Graben area in Nevada.

An unrealized loss on investments in other mining companies of $2.9 million compared to a gain of $4.0 million.

$6.5 million payment in the third quarter of 2021 to settle a lawsuit related to a 1989 agreement for indemnification of certain environmental costs.

Suspension costs increased by $5.4 million due to placement of the Fire Creek mine and Midas mill on care-and-maintenance during the second quarter of 2021.

These items were partially offset by:

Gain on base metal derivatives contracts of $12.1 million compared to a loss of $6.7 million in the prior year period.

Gross profit at Lucky Friday increased by $6.9 million as a result of the return to full production beginning in the fourth quarter of 2020.

Foreign exchange gain of $4.0 million versus a loss of $2.2 million in the prior year.

Capital expenditures totaled $26.9 million for the third quarter 2021 compared to $23.7 million in the third quarter of 2020, with the increase due to the reduced utilization of lease financing for equipment purchases and higher expenditures at Lucky Friday. Capital expenditures at the operations were $12.4 million at Casa Berardi, $6.2 million at Greens Creek and $7.5 million at Lucky Friday.

Investor Relations, Hecla Mining Company - 1-800-432-5291 - hmc-info@hecla-mining.com 2

Metals Prices

The average realized silver price in the third quarter was $23.97 per ounce, 5% lower than the $25.32 in the third quarter of 2020. The average realized gold price was lower by 7%, at $1,792 per ounce. Average realized lead and zinc price increased 19% and 30%, respectively.

Three Months Ended

September 30,

Nine Months Ended

September 30,

2021

2020

2021

2020

Silver -

London PM Fix ($/ounce)

$ 24.36 $ 24.40 $ 25.78 $ 19.22

Realized price per ounce

$ 23.97 $ 25.32 $ 25.75 $ 19.72

Gold -

London PM Fix ($/ounce)

$ 1,789 $ 1,911 $ 1,801 $ 1,735

Realized price per ounce

$ 1,792 $ 1,929 $ 1,794 $ 1,745

Lead -

LME Final Cash Buyer ($/pound)

$ 1.06 $ 0.85 $ 0.98 $ 0.81

Realized price per pound

$ 1.02 $ 0.86 $ 1.00 $ 0.81

Zinc -

LME Final Cash Buyer ($/pound)

$ 1.36 $ 1.06 $ 1.31 $ 0.97

Realized price per pound

$ 1.35 $ 1.04 $ 1.34 $ 0.94

∗ Realized prices are calculated by dividing gross revenues for each metal (which include the price adjustments and gains and losses on the forward contracts discussed below) by the payable quantities of each metal included in products sold during the period.

Base Metals Forward Sales Contracts

The following table summarizes the quantities of base metals committed under financially settled forward sales contracts, other than provisional hedges (which address changes in prices between shipment and settlement with customers), at September 30, 2021.

Pounds Under Contract (in thousands)

Average Price per Pound

Zinc

Lead

Zinc

Lead

Contracts on forecasted sales

2021 settlements

7,771 6,779 $ 1.26 $ 0.94

2022 settlements

60,043 63,769 $ 1.28 $ 0.98

2023 settlements

76,280 70,327 $ 1.29 $ 1.00

2024 settlements

43,762 - $ 1.31 -

The contracts represent about 49% of the forecasted payable zinc production through 2024 at an average price of $1.29 per pound, and 40% of the forecasted payable lead production through 2023 at an average price of $0.99 per pound.

Investor Relations, Hecla Mining Company - 1-800-432-5291 - hmc-info@hecla-mining.com 3

Foreign Currency Forward Purchase Contracts

The following table summarizes the Canadian dollars the Company has committed to purchase under foreign exchange forward contracts at September 30, 2021, which is roughly 72% of forecasted Canadian dollar direct production costs for the remainder of 2021, 48% for 2022, 37% for 2023, 18% for 2024 and 5% for 2025:

Currency Under Contract

(in thousands of CAD)

Average Exchange Rate

CAD/USD

2021 settlements

29,450 $ 1.33

2022 settlements

94,524 $ 1.31

2023 settlements

75,165 $ 1.31

2024 settlements

37,496 $ 1.31

2025 settlements

9,000 $ 1.28

OPERATIONS OVERVIEW

Overview

The following table provides the production summary on a consolidated basis for the third quarter and nine months ended September 30, 2021 and 2020:

Third Quarter Ended

Nine Months Ended

September 30, 2021

September 30, 2020

September 30, 2021

September 30, 2020

PRODUCTION SUMMARY

Silver -

Ounces produced

2,676,084 3,541,371 9,660,313 10,190,621

Payable ounces sold

2,581,690 3,147,048 9,027,180 9,077,966

Gold -

Ounces produced

42,207 41,174 153,350 159,948

Payable ounces sold

53,000 51,049 157,454 159,550

Lead -

Tons produced

9,904 9,750 32,148 24,620

Payable tons sold

8,835 7,792 28,166 19,948

Zinc -

Tons produced

15,546 17,997 48,864 48,699

Payable tons sold

11,174 12,892 33,344 34,717

The following tables provide a summary of the (i) final production; (ii) cost of sales and other direct production costs and depreciation, depletion and amortization ("cost of sales"); (iii) cash cost, after by-product credits, per silver or gold ounce2; and (iv) all-in sustaining costs ("AISC"), after by-product credits, per silver or gold ounce3 for the third quarter and nine months ended September 30, 2021, with comparisons to the prior year periods:

Third Quarter Ended

Greens Creek

Lucky Friday

Casa Berardi

Nevada Ops

September 30, 2021

Silver

Gold

Silver

Gold

Silver

Gold

Silver

Gold

Silver

Production (ounces)

2,676,084 42,207 1,837,270 9,734 831,532 29,722 7,012 2,751 270

Increase/(decrease)

(865,287 ) 1,033 (797,166 ) (3,104 ) 195,143 3,317 3,157 2,751 270

Cost of sales(000)

$ 78,784 $ 79,549 $ 55,193 - $ 23,591 $ 58,164 - $ 21,384 -

Increase/(decrease)

$ 3,219 $ 11,851 $ 7,088 - $ 2,091 $ 6,591 - $ 7,507 -

Cash costs per silver or gold ounce 2

$ 2.49 $ 1,163 $ 0.74 - $ 6.36 $ 1,175 - $ 1,038 -

Increase/(decrease)

$ (0.92 ) $ (235 ) $ (2.26 ) - - $ (223 ) - - -

AISC per silver or gold ounce 3

$ 12.82 $ 1,450 $ 5.94 - $ 16.79 $ 1,476 - $ 1,167 -

Increase/(decrease)

$ 2.30 $ (404 ) $ (0.64 ) - - $ (378 ) - - -
Investor Relations, Hecla Mining Company - 1-800-432-5291 - hmc-info@hecla-mining.com 4

Nine Months Ended

Greens Creek

Lucky Friday

Casa Berardi

Nevada Ops

September 30, 2021

Silver

Gold

Silver

Gold

Silver

Gold

Silver

Gold

Silver

Production (ounces)

9,660,313 153,350 6,980,587 35,859 2,608,727 97,245 25,604 20,246 45,395

Increase/(decrease)

(530,308 ) (6,598 ) (1,183,475 ) (2,356 ) 1,407,053 13,332 10,320 (11,510 ) 7,952

Cost of sales (000)

$ 238,243 $ 219,592 $ 163,861 - $ 74,287 $ 172,760 - $ 46,832 -

Increase/(decrease)

$ 30,689 $ 27,516 $ 10,365 - $ 38,500 $ 31,867 - $ 2,484 -

Cash costs per silver or gold ounce 2

$ 1.26 $ 1,127 $ (1.03 ) - $ 7.37 $ 1,127 - $ 1,124 -

Increase/(decrease)

$ (3.32 ) $ 73 $ (5.48 ) - - $ (54 ) - $ 408 -

AISC per silver or gold ounce 3

$ 8.88 $ 1,349 $ 2.40 - $ 15.00 $ 1,387 - $ 1,167 -

Increase/(decrease)

$ (1.21 ) $ 50 $ (4.63 ) - - $ (106 ) - $ 380 -

Greens Creek Mine - Alaska

The Greens Creek Mine produced 1.8 million ounces of silver and 9,734 ounces of gold with the mill operating at an average of 2,295 tons per day (tpd). The decrease in silver production compared to the third quarter of 2020 was due to lower grades resulting from mine sequencing which was primarily driven by manpower scheduling issues as a result of COVID-19 and increased competition for labor. With limited personnel, production came partially from more easily accessible but lower grade areas. In the future, we anticipate adequate staffing which will allow mining higher-grade material, that is in deeper parts of the mine. Compared to 2020, cost of sales decreased by $7.1 million, due to lower production costs, driven partially by lower COVID-19 related costs. The per ounce silver cash cost and AISC decreased by $2.26 and $0.64, respectively, due to lower production costs as well as higher by-products credits resulting from higher by-product prices and lower treatment costs from favorable changes in smelter terms.2,3

The Company's estimated 2021 silver production is lowered to 9.2 - 9.5 million ounces to reflect lower production from the third quarter. Gold production guidance of 43 - 45 thousand ounces is unchanged. Estimated cost of sales for 2021 are maintained at $222 million and cash cost and AISC, each per silver ounce is also unchanged at ($1.00)-$1.00 and $3.25-$4.00, respectively.2,3

Casa Berardi Mine - Quebec

At the Casa Berardi Mine, 29,722 ounces of gold were produced compared to 26,405 ounces in the third quarter of 2020 due to higher mill throughput, partially offset by lower grades. The mill operated at an average of 4,328 tpd, which was 38% higher than the prior year period and achieved record quarterly throughput of 398,143 tons milled as the mill optimization continues to deliver results. Mill recoveries have continued to increase due to improvements in the grinding, gravity and CIL circuits. The increase in cost of sales was due to higher throughput, mill contractor maintenance costs, and underground maintenance costs resulting from repairs and replacements of major components for the production fleet. The decrease in cash cost and AISC per gold ounce for the third quarter of 2021 compared to 2020 was the result of the higher gold production, partially offset by higher production costs, with AISC also impacted by lower sustaining capital, partially offset by higher exploration spending.

In the 160 pit, 1.0 million tons of overburden and waste rock was removed during the quarter. Mining and processing of 160 pit ore is expected to commence during Q4 2021.

The Company is increasing 2021 gold production guidance to 130 - 135 thousand ounces. The estimate for 2021 cost of sales is increased to $230 million. Estimated cash cost per gold ounce is unchanged at $1,000-$1,125 per gold ounce as 72% of the direct production costs are hedged at an average USD/CAD exchange rate of 1.33.2 All-in sustaining cost guidance is increased to $1,350-$1,400 to reflect in the increased sustaining capital spend which is currently unhedged under the Company's foreign exchange hedging program.3

Investor Relations, Hecla Mining Company - 1-800-432-5291 - hmc-info@hecla-mining.com 5

Lucky Friday Mine - Idaho

At the Lucky Friday Mine, 0.8 million ounces of silver were produced in the quarter, an increase of 31% compared to the third quarter of 2020, with the mine at full production. The mill operated at an average of 850 tpd. A new mining method, with a patent pending, called the Underhand Closed Bench (UCB), has been in testing for the past year with the third quarter mining 87% of tons with the method. The benefit of the method is better management of seismicity, increasing safety and potentially increasing production. With the success of this new drill and blast mining method, the Remote Vein Miner (RVM), a continuous rock cutting machine, will be tested at another property. Additionally during the quarter, the land needed for Lucky Friday's planned tailings facilities was acquired.

Cost of sales for the third quarter was $23.6 million, and the cash cost per silver ounce was $6.36. AISC was $16.79 per silver ounce.2,3

The Company's estimated 2021 silver production of 3.4 - 3.8 million ounces is unchanged. Estimated 2021 cost of sales are $103 million and cash cost and AISC, each per silver ounce, are unchanged at $7.60-$8.50 and $14.25-$16.25, respectively.2,3

Nevada Operations

At the Nevada operations, 2,751 ounces of gold were produced from approximately 12,000 tons of previously stockpiled refractory material processed at a third-party autoclave facility. Total cost of sales for the third quarter was $21.4 million. Cash cost and AISC per gold ounce were $1,038 and $1,167, respectively, in the third quarter of 2021.2,3 The increase over the prior year period was primarily due to costs associated with the previously stockpiled material processed in the current period.

We anticipate production and sales from the remaining approximately 2,200 tons of previously stockpiled refractory material processed at the third-party autoclave facility will be recognized in the fourth quarter of 2021.

Hollister's exploration drift to access the Hatter Graben is ongoing and drilling began in the fourth quarter while we continue surface drilling at Midas.

EXPLORATION

In the third quarter exploration expenditures were $13.7 million, an increase of $10.3 million compared to the third quarter of 2020, primarily due to increasing exploration activity at Midas, Greens Creek, Casa Berardi, San Sebastian, Heva-Hosco and Kinskuch since there were fewer limitations due to COVID. This is the largest quarterly exploration expense in the Company's history and about 50% more than the second quarter. For more details on Hecla's exploration activities please see the Exploration Update provided on September 14th.

PRE-DEVELOPMENT

Pre-development spending was $3.4 million for the quarter, compared to $0.8 million for the third quarter of 2020. The increase is principally due to development of the decline at Hollister to allow drilling of the Hatter Graben to begin in the fourth quarter.

With the Federal District Court's ruling setting aside the federal agencies' Record of Decision and related Biological Opinion for the Rock Creek project, Hecla will provide the next steps for both Rock Creek and Montanore by early 2022.

Investor Relations, Hecla Mining Company - 1-800-432-5291 - hmc-info@hecla-mining.com 6

DIVIDENDS

Common

On September 8th, 2021, the Board of Directors added 1 cent per share for the annual silver-linked dividend component and approved a reduction in the minimum realized silver price threshold to $20 from $25 per ounce. On November 3, 2021, the Board of Directors declared a quarterly cash dividend of 0.625 cent per share of common stock, consisting of 0.375 cent per share for the minimum dividend component and 0.25 cent per share for the silver-linked component of our dividend policy. The common dividend is payable on or about December 3, 2021, to shareholders of record on November 19, 2021. The realized silver price was $23.97 in the third quarter satisfying the criteria for the silver-linked dividend component of the Company's dividend policy.

Preferred

The Board of Directors declared a quarterly cash dividend of 87.5 cents per share on the outstanding shares of Series B Cumulative Convertible Preferred Stock, payable on or about January 3, 2022, to shareholders of record on December 15, 2021.

2021 ESTIMATES4

The Company has updated its guidance for annual production and cost as follows:

2021 Production Outlook

Silver Production

(Moz)

Gold Production

(Koz)

Previous

Current

Previous

Current

Greens Creek *

9.5-10.2 9.2-9.5 43-45 43-45

Lucky Friday *

3.4-3.8 3.4-3.8 N/A N/A

Casa Berardi

N/A N/A 128-132 130-135

Nevada Operations

N/A N/A 20-21 20-21

Total4

12.9-14.0 12.6-13.3 191-198 193-201

Silver equivalent production for 2021 is estimated at 42.0 -43.5 million ounces while gold equivalent production is expected to be 469 -485 thousand ounces.

*Equivalent ounces include Lead and Zinc production

2021 Cost Outlook

Cost of Sales

(millions)

Cash cost, after by-product

credits, per silver/gold ounce2

AISC, after by-product credits,

per produced silver/gold ounce3

Previous

Current

Previous

Current

Previous

Current

Greens Creek

$ 222 $ 222

($1.00)-$1.00

($1.00)-$1.00

$3.25-$4.00

$3.25-$4.00

Lucky Friday

$ 103 $ 103

$7.50-$8.50

$7.50-$8.50

$14.25-$16.25

$14.25-$16.25

Total Silver

$ 325 $ 325

$1.00-$2.00

$1.00-$2.00

$9.00-$11.00

$9.00-$11.00

Casa Berardi

$ 220 $ 230

$1,000-$1,125

$1,000-$1,125

$1,200-$1,325

$1,350-$1,400

Nevada Operations

$ 43 $ 43

$1,300-$1,425

$1,300-$1,425

$1,385-$1,525

$1,385-$1,525

Total Gold

$ 263 $ 273

$1,050-$1,200

$1,050-$1,200

$1,250-$1,350

$1,300-$1,375

Investor Relations, Hecla Mining Company - 1-800-432-5291 - hmc-info@hecla-mining.com 7

CONFERENCE CALL AND WEBCAST

A conference call and webcast will be held Thursday, November 4, at 10:00 a.m. Eastern Time to discuss these results. We recommend that you dial in at least 10 minutes before the call is due to commence. You may join the conference call by dialing toll-free 1-833-350-1380 or for international dialing 1-647-689-6934. The Participant Code is 5460648 and must be provided when dialing in. Hecla's live and archived webcast can be accessed at www.hecla-mining.com under Investors.

One-on-One Calls

Hecla will be holding a Virtual Investor Event on Thursday, November 4, 2021, from 11:30 a.m. to 1:30 p.m. ET.

Hecla invites shareholders, investors, and other interested parties to schedule a personal, 30-minute virtual meeting (video or telephone) with a member of senior management to discuss ESG, exploration, operations, or general matters. Click on the link below to schedule a call (or copy and paste the link into your web browser). You can select a topic once you have entered the meeting calendar. If you are unable to book a time, either due to high demand or for other reasons, please reach out to Russell Lawlar, Sr. Vice President - CFO and Treasurer at rlawlar@hecla-mining.com or 208-769-4130.

One-on-One meeting URL: https://calendly.com/2021-november-vie

NYSE CELEBRATORY EVENT

Hecla is celebrating 130 years and will ring the NYSE closing bell on November 16th, 2021. Hecla will be holding a celebratory event at the NYSE and invites shareholders, investors and other interested parties to the event. If you would like to attend, please contact Cheryl Turner at cturner@hecla-mining.com or 208-209-1261 by November 5th, 2021.

ABOUT HECLA

Founded in 1891, Hecla Mining Company (NYSE:HL) is the largest silver producer in the United States. In addition to operating mines in Alaska, Idaho, and Quebec, Canada, the Company 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 generally accepted accounting principles in the United States (GAAP). These measures should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP.

(1) Free cash flow is a non-GAAP measure calculated as cash provided by operating activities less additions to properties, plants and equipment.

(2) Cash cost, after by-product credits, per silver or gold ounce is a non-GAAP measurement, a reconciliation of which to cost of sales and other direct production costs and depreciation, depletion and amortization (sometimes referred to as "cost of sales" in this release), can be found at the end of the release. It is an important operating statistic that management utilizes to measure each mine's operating performance. It also allows the benchmarking of performance of each mine versus those of our competitors. As a silver and gold mining company, management also uses the statistic on an aggregate basis - aggregating the Greens Creek, Lucky Friday and San Sebastian mines - to compare performance with that of other silver mining companies, and aggregating Casa Berardi and the Nevada operations, to compare its performance with other gold mining companies. Similarly, the statistic is useful in identifying acquisition and investment opportunities as it provides a common tool for measuring the financial performance of other mines with varying geologic, metallurgical and operating characteristics. In addition, the Company may use it when formulating performance goals and targets under its incentive program. Cash cost, after by-product credits, per silver ounce is not presented for Lucky Friday for the third quarters and first nine-month periods of 2020 and 2019, as production was limited due to the strike and subsequent ramp-up and results are not comparable to those from prior periods and are not indicative of future operating results under full production.

Investor Relations, Hecla Mining Company - 1-800-432-5291 - hmc-info@hecla-mining.com 8

(3) All-in sustaining cost (AISC), after by-product credits, is a non-GAAP measurement, a reconciliation of which to cost of sales and other direct production costs and depreciation, depletion and amortization, the closest GAAP measurement, can be found in the end of the release. AISC, after by-product credits, includes cost of sales and other direct production costs, expenses for reclamation and exploration at the mine sites, corporate exploration related to sustaining operations, and all site sustaining capital costs. AISC, after by-product credits, is calculated net of depreciation, depletion, and amortization and by-product credits

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

Other

(4) Calculations for 2021 include silver, gold, lead and zinc production from Greens Creek, San Sebastian, Casa Berardi, and Nevada Operations converted using actual Au $1,525/oz, Ag $17/oz, Zn $1.00/lb, and Pb $0.85/lb.

Numbers may be rounded.

Cautionary Statements to Investors on Forward-Looking Statements

This 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. When a forward-looking statement expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, such statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by the forward-looking statements. Forward-looking statements often address our expected future business and financial performance and financial condition and often contain words such as "anticipate," "intend," "plan," "will," "could," "would," "estimate," "should," "expect," "believe," "project," "target," "indicative," "preliminary," "potential" and similar expressions. Forward-looking statements in this news release may include, without limitation: (i) new mining method being tested at Lucky Friday will continue to successfully control seismicity, improve safety and potentially increase productivity; (ii) Greens Creek's ability to achieve adequate staffing levels in order to mine higher-grade material, which is in deeper parts of the mine; (iii) Greens Creek's estimated 2021 silver production, gold production, cost of sales, cash cost and AISC; (iv) Casa Berardi's estimated 2021 gold production, cost of sales, cash cost and AISC; (v) Ore from the 160 pit at Casa Berardi is expected to start being mined and processed in Q4 2021; (vi) Lucky Friday's estimated 2021 silver production, cost of sales, cash cost and AISC; and (vii) Company-wide estimates of future production, sales, costs of sales, cash cost, after by-product credits, AISC, after by-product credits, as well as estimated spending on capital, exploration and pre-development for 2021. 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.

Investor Relations, Hecla Mining Company - 1-800-432-5291 - hmc-info@hecla-mining.com 9

Estimates or expectations of future events or results are based upon certain assumptions, which may prove to be incorrect, which could cause actual results to differ from forward-looking statements. Such assumptions, include, but are not limited to: (i) there being no significant change to current geotechnical, metallurgical, hydrological and other physical conditions; (ii) permitting, development, operations and expansion of the Company's projects being consistent with current expectations and mine plans; (iii) political/regulatory developments in any jurisdiction in which the Company operates being consistent with its current expectations; (iv) the exchange rate for the USD/CAD and USD/MXN, being approximately consistent with current levels; (v) certain price assumptions for gold, silver, lead and zinc; (vi) prices for key supplies being approximately consistent with current levels; (vii) the accuracy of our current mineral reserve and mineral resource estimates; (viii) 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; (ix) counterparties performing their obligations under hedging instruments and put option contracts; (x) sufficient workforce is available and trained to perform assigned tasks; (xi) weather patterns and rain/snowfall within normal seasonal ranges so as not to impact operations; (xii) relations with interested parties, including Native Americans, remain productive; (xiii) economic terms can be reached with third-party mill operators who have capacity to process our ore; (xiv) maintaining availability of water rights; (xv) factors do not arise that reduce available cash balances, (xvi) there being no material increases in our current requirements to post or maintain reclamation and performance bonds or collateral related thereto.

In addition, material risks that could cause actual results to differ from forward-looking statements include, but are not limited to: (i) gold, silver and other metals price volatility; (ii) operating risks; (iii) currency fluctuations; (iv) increased production costs and variances in ore grade or recovery rates from those assumed in mining plans; (v) community relations; (vi) conflict resolution and outcome of projects or oppositions; (vii) litigation, political, regulatory, labor and environmental risks; (viii) exploration risks and results, including that mineral resources are not mineral reserves, they do not have demonstrated economic viability and there is no certainty that they can be upgraded to mineral reserves through continued exploration; (ix) the failure of counterparties to perform their obligations under hedging instruments; (x) we take a material impairment charge on our Nevada operations; (xi) we are unable to remain in compliance with all terms of the credit agreement in order to maintain continued access to the revolver, and (xii) we are unable to refinance the maturing senior notes. For a more detailed discussion of such risks and other factors, see the Company's 2020 Form 10-K, filed on February 18, 2021, with the Securities and Exchange Commission (SEC), as well as the Company's other SEC filings. The Company does not undertake any obligation to release publicly, revisions to any "forward-looking statement," including, without limitation, outlook, to reflect events or circumstances after the date of this presentation, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws. Investors should not assume that any lack of update to a previously issued "forward-looking statement" constitutes a reaffirmation of that statement. Continued reliance on "forward-looking statements" is at investors' own risk.

For further information, please contact:

Russell Lawlar

Senior Vice President - CFO and Treasurer

Jeanne DuPont

Senior Communications Coordinator

800-HECLA91 (800-432-5291)

Investor Relations

Email: hmc-info@hecla-mining.com

Website: www.hecla-mining.com

Investor Relations, Hecla Mining Company - 1-800-432-5291 - hmc-info@hecla-mining.com 10

HECLA MINING COMPANY

Condensed Consolidated Statements of Operations

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

Third Quarter Ended

Nine Months Ended

September 30,
2021

September 30,
2020

September 30,
2021

September 30,
2020

Sales of products

$ 193,560 $ 199,703 $ 622,395 $ 502,983

Cost of sales and other direct production costs

112,542 103,025 318,917 280,303

Depreciation, depletion and amortization

45,790 37,990 138,918 112,492
158,332 141,015 457,835 392,795

Gross profit

35,228 58,688 164,560 110,188

Other operating expenses:

General and administrative

8,874 11,713 27,985 27,631

Exploration

13,675 3,407 27,993 7,899

Pre-development

3,433 759 7,046 1,857

Other operating expense

3,344 3,499 10,626 5,864

Provision or closed operations and environmental matters

7,564 1,254 12,297 2,807

Ramp-up and suspension costs

6,910 1,541 17,014 24,109

Foundation grant

- - - 1,970
43,800 22,173 102,961 72,137

(Loss) income from operations

(8,572 ) 36,515 61,599 38,051

Other income (expense):

Gain on exchange of investments

- - 1,158 -

Unrealized (loss) gain on investments

(2,861 ) 3,979 (7,117 ) 9,410

Gain (loss) on derivative contracts

12,148 (6,666 ) (4,692 ) (12,775 )

Net foreign exchange gain (loss)

3,995 (2,196 ) 24 1,235

Other expense

247 (392 ) (192 ) (2,141 )

Interest expense

(10,469 ) (10,779 ) (31,484 ) (38,919 )
3,060 (16,054 ) (42,303 ) (52,600 )

(Loss) income before income and mining taxes

(5,512 ) 20,461 19,296 (14,549 )

Income and mining tax benefit (provision)

4,533 (5,151 ) 3,924 (7,423 )

Net (loss) income

(979 ) 15,280 23,220 (21,972 )

Preferred stock dividends

(138 ) (138 ) (414 ) (414 )

(Loss) income applicable to common shareholders

$ (1,117 ) $ 15,142 $ 22,806 $ (22,386 )

Basic (loss) income per common share after preferred dividends (in cents)

(0.2 ) 2.9 4.3 (2.5 )

Diluted (loss) income per common share after preferred dividends

(0.2 ) 2.8 4.2 (2.5 )

Weighted average number of common shares outstanding - basic

536,966 529,838 535,542 526,098

Weighted average number of common shares outstanding - diluted

536,966 535,788 541,769 526,098
Investor Relations, Hecla Mining Company - 1-800-432-5291 - hmc-info@hecla-mining.com 11

HECLA MINING COMPANY

Condensed Consolidated Statements of Cash Flows

(dollars in thousands - unaudited)

Third Quarter Ended

Nine Months Ended

September 30, 2021

September 30, 2020

September 30, 2021

September 30, 2020

OPERATING ACTIVITIES

Net (loss) income

$ (979 ) $ 15,280 $ 23,220 $ (12,562 )

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

Depreciation, depletion and amortization

46,939 40,478 139,800 120,076

Gain on exchange of investments

- - (1,158 ) -

Unrealized loss (gain) on investments

2,861 (3,979 ) 7,117 (9,410 )

Write-down to stockpile inventory

93 - 6,524 -

Provision for reclamation and closure costs

1,638 1,545 7,821 4,638

Stock compensation

1,472 2,801 4,774 5,229

Deferred income taxes

(10,141 ) (629 ) (17,886 ) (4,578 )

Amortization of loan origination fees and loss on extinguishment of debt

488 442 1,406 3,066

(Gain) loss on derivative contracts

(16,053 ) (6,705 ) (13,937 ) 4,483

Foreign exchange (gain) loss

(3,842 ) 915 615 (2,810 )

Foundation grant

- - - 1,970

Other non-cash items, net

(390 ) (14 ) (239 ) 559

Change in assets and liabilities:

Accounts receivable

5,634 2,309 (3,798 ) (3,741 )

Inventories

16,653 (8,510 ) 22,372 (13,090 )

Other current and non-current assets

(2,475 ) 7,672 1,650 6,748

Accounts payable and accrued liabilities

(8,200 ) 13,653 (14,689 ) (1,762 )

Accrued payroll and related benefits

3,522 5,899 (1,829 ) 11,317

Accrued taxes

3,729 (636 ) 2,730 3,276

Accrued reclamation and closure costs and other non-current liabilities

1,793 2,918 2,489 2,483

Cash provided by operating activities

42,742 73,439 166,982 115,892

INVESTING ACTIVITIES

Additions to properties, plants, equipment and mineral interests

(26,899 ) (23,693 ) (80,210 ) (54,382 )

Proceeds from disposition of properties, plants and equipment

431 105 562 305

Proceeds from exchange of investments

1,811 - 1,811 -

Purchase of carbon credits

(200 ) - (200 ) -

Purchases of investments

- (1,024 ) - (1,661 )

Net cash used in investing activities

(24,857 ) (24,612 ) (78,037 ) (55,738 )

FINANCING ACTIVITIES

Acquisition of treasury shares

- - (4,525 ) (2,745 )

Dividends paid to common shareholders

(6,040 ) (1,329 ) (16,755 ) (3,951 )

Dividends paid to preferred shareholders

(138 ) (138 ) (414 ) (414 )

Credit facility fees paid

(26 ) (736 ) (108 ) (1,287 )

Borrowings on debt

- 27,607 - 707,107

Repayments of debt

- (50,000 ) - (716,500 )

Payments on finance leases

(1,828 ) (1,406 ) (5,598 ) (4,246 )

Net cash used in financing activities

(8,032 ) (26,002 ) (27,400 ) (22,036 )

Effect of exchange rates on cash

(443 ) (79 ) (471 ) (1,873 )

Net increase in cash, cash equivalents and restricted cash and cash equivalents

9,410 22,746 61,074 36,245

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

182,547 76,976 130,883 63,477

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

$ 191,957 $ 99,722 $ 191,957 $ 99,722
Investor Relations, Hecla Mining Company - 1-800-432-5291 - hmc-info@hecla-mining.com 12

HECLA MINING COMPANY

Condensed Consolidated Balance Sheets

(dollars and share in thousands - unaudited)

September 30, 2021

December 31, 2020

ASSETS

Current assets:

Cash and cash equivalents

$ 190,904 $ 129,830

Accounts receivable:

Trade

32,821 27,864

Taxes

Other, net

10,152 11,329

Inventories

58,439 96,175

Derivative assets

5,220 3,470

Other current assets

12,744 15,644

Total current assets

310,280 284,312

Investments

8,030 15,148

Restricted cash

1,053 1,053

Properties, plants, equipment and mineral interests, net

2,331,018 2,378,074

Operating lease right-of-use assets

8,201 10,628

Deferred income taxes

5,576 2,912

Derivative assets

6,748 4,558

Other non-current assets

3,511 3,525

Total assets

$ 2,674,417 $ 2,700,210

LIABILITIES

Current liabilities:

Accounts payable and accrued liabilities

$ 62,571 $ 68,516

Accrued payroll and related benefits

26,493 31,807

Accrued taxes

8,557 5,774

Finance leases

5,637 6,491

Operating leases

2,385 3,008

Other current liabilities

103 138

Accrued reclamation and closure costs

11,036 5,582

Accrued interest

5,221 14,157

Derivatives liabilities

4,179 11,737

Total current liabilities

126,182 147,210

Finance leases

8,540 9,274

Operating leases

5,820 7,634

Accrued reclamation and closure costs

108,670 110,466

Long-term debt

507,712 507,242

Deferred tax liability

142,750 156,091

Pension liability

26,229 44,144

Derivatives liabilities

752 18

Other non-current liabilities

4,787 4,346

Total liabilities

931,442 986,425

SHAREHOLDERS' EQUITY

Preferred stock

39 39

Common stock

136,350 134,629

Capital surplus

2,032,334 2,003,576

Accumulated deficit

(362,023 ) (368,074 )

Accumulated other comprehensive loss

(35,704 ) (32,889 )

Treasury stock

(28,021 ) (23,496 )

Total shareholders' equity

1,742,975 1,713,785

Total liabilities and shareholders' equity

$ 2,674,417 $ 2,700,210

Common shares outstanding

537,977 531,666
Investor Relations, Hecla Mining Company - 1-800-432-5291 - hmc-info@hecla-mining.com 13

HECLA MINING COMPANY

Production Data

Three Months Ended

Nine Months Ended

September 30, 2021

September 30, 2020

September 30, 2021

September 30, 2020

GREENS CREEK UNIT

Tons of ore milled

211,142 215,237 620,153 629,316

Total production cost per ton

Ore grade milled - Silver (oz./ton)

11.14 15.04 13.84 15.79

Ore grade milled - Gold (oz./ton)

0.068 0.084 0.079 0.084

Ore grade milled - Lead (%)

2.68

%

3.26

%

2.96

%

3.22

%

Ore grade milled - Zinc (%)

7.05

%

8.17

%

7.41

%

7.76

%

Silver produced (oz.)

1,837,270 2,634,436 6,980,587 8,164,062

Gold produced (oz.)

9,734 12,838 35,859 38,215

Lead produced (tons)

4,591 5,909 15,142 16,996

Zinc produced (tons)

13,227 16,187 41,191 44,858

Cash cost, after by-product credits, per silver ounce (1)

$ 0.74 $ 3.00 $ (1.03 ) $ 4.45

AISC, after by-product credits, per silver ounce (1)

$ 5.94 $ 6.58 $ 2.40 $ 7.03

Capital additions (in thousands)

$ 6,228 $ 8,265 $ 17,459 $ 18,276

LUCKY FRIDAY UNIT

Tons of ore milled

78,227 55,050 241,740 109,951

Total production cost per ton

Ore grade milled - Silver (oz./ton)

11.21 12.10 11.34 11.43

Ore grade milled - Lead (%)

7.22

%

7.35

%

7.43

%

7.33

%

Ore grade milled - Zinc (%)

3.3

%

3.76

%

3.48

%

3.89

%

Silver produced (oz.)

831,532 636,389 2,608,727 1,201,674

Lead produced (tons)

5,313 3,841 17,006 7,624

Zinc produced (tons)

2,319 1,810 7,673 3,841

Cash cost, after by-product credits, per silver ounce (1)

$ 6.36 $ - $ 7.37 $ -

AISC, after by-product credits, per silver ounce (1)

$ 16.79 - $ 15.00 -

Capital additions (in thousands)

$ 7,534 $ 5,547 $ 19,177 $ 14,603

CASA BERARDI UNIT

Tons of ore milled - underground

167,435 157,734 533,262 472,936

Tons of ore milled - surface pit

230,708 130,948 607,967 427,784

Tons of ore milled - total

398,143 288,682 1,141,229 900,720

Surface tons mined - ore and waste

1,483,231 1,410,505 4,996,522 4,065,596

Total production cost per ton

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

0.155 0.124 0.159 0.132

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

0.037 0.052 0.051 0.051

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

0.087 0.114 0.102 0.114

Ore grade milled - Silver (oz./ton)

0.02 0.02 0.03 0.02

Gold produced (oz.) - underground

24,170 19,605 75,180 62,260

Gold produced (oz.) - surface pit

5,552 6,800 22,065 21,652

Gold produced (oz.) - total

29,722 26,405 97,245 83,913

Cash cost, after by-product credits, per gold ounce (1)

$ 1,175 $ 1,398 $ 1,127 $ 1,181

AISC, after by-product credits, per gold ounce (1)

$ 1,476 $ 1,855 $ 1,387 $ 1,493

Capital additions (in thousands)

$ 12,377 $ 11,629 $ 38,377 $ 24,413

SAN SEBASTIAN

Tons of ore milled

- 47,093 - 104,216

Total production cost per ton

Ore grade milled - Silver (oz./ton)

- 6.27 - 8.11

Ore grade milled - Gold (oz./ton)

- 0.052 - 0.07

Silver produced (oz.)

- 266,691 - 772,158

Gold produced (oz.)

- 1,931 - 6,064

Cash cost, after by-product credits, per silver ounce (1)

- $ 7.53 - $ 5.93

AISC, after by-product credits, per silver ounce (1)

- $ 8.87 - $ 6.76

Capital additions (in thousands)

$ 3 $ 233 $ 10 $ 537

Nevada Operations

Tons of ore milled

11,953 - 67,359 27,984

Total production cost per ton

Ore grade milled - Gold (oz./ton)

0.234 - 0.324 1.232

Ore grade milled - Silver (oz./ton)

Gold produced (oz.)

2,751 - 20,246 31,756

Silver produced (oz.)

270 - 45,395 37,443

Cash cost, after by-product credits, per gold ounce (1)

$ 1,038 $ - $ 1,124 $ 716

AISC, after by-product credits, per gold ounce (1)

$ 1,167 - $ 1,167 $ 787

Capital additions (in thousands)

$ 29 $ 380 $ 195 $ 1,849

(1) Cash cost, after by-product credits, per ounce and AISC, after by-product credits. per ounce represent non-U.S. Generally Accepted Accounting Principles (GAAP) measurements. A reconciliation of cost of sales and other direct production costs and depreciation, depletion and amortization (GAAP) to cash cost, after by-product credits can be found in the cash cost per ounce reconciliation section of this news release. Gold, lead and zinc produced have been treated as by-product credits in calculating silver costs per ounce. The primary metal produced at Casa Berardi and Nevada is gold, with a by-product credit for the value of silver production.

Investor Relations, Hecla Mining Company - 1-800-432-5291 - hmc-info@hecla-mining.com 14

Non-GAAP Measures

(Unaudited)

Reconciliation of Cost of Sales and Other Direct Production Costs and Depreciation, Depletion and Amortization (GAAP) to Cash Cost, Before By-product Credits and Cash Cost, After By-product Credits (non-GAAP) and All-In Sustaining Cost, Before By-product Credits and All-In Sustaining Cost, After By-product Credits (non-GAAP)

The tables below present reconciliations between the most comparable GAAP measure of cost of sales and other direct production costs and depreciation, depletion and amortization to the non-GAAP measures of Cash Cost, Before By-product Credits, Cash Cost, After By-product Credits, AISC, Before By-product Credits and AISC, After By-product Credits for our operations at the Greens Creek, Lucky Friday, San Sebastian, Casa Berardi and Nevada Operations units for the three- and nine-month periods ended September 30, 2021 and 2020.

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. AISC, After By-product Credits, per Ounce is an important operating statistic that we utilize as a measure of our mines' net cash flow after costs for exploration, pre-development, reclamation, and sustaining capital. 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, Lucky Friday and San Sebastian mines, to compare our performance with that of other primary silver mining companies and aggregating Casa Berardi and Nevada Operations for comparison with other gold mining companies. Similarly, these statistics are useful in identifying acquisition and investment opportunities as they provide a common tool for measuring the financial performance of other mines with varying geologic, metallurgical and operating characteristics.

Cash Cost, Before By-product Credits and AISC, Before By-product Credits include all direct and indirect operating cash costs related directly to the physical activities of producing metals, including mining, processing and other plant costs, third-party refining expense, on-site general and administrative costs, royalties and mining production taxes. AISC, Before By-product Credits for each mine also includes on-site exploration, reclamation, and sustaining capital costs. AISC, Before By-product Credits for our consolidated silver properties also includes corporate costs for general and administrative expense and sustaining exploration and 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.

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, Nevada Operations and combined gold properties information below reports Cash Cost, After By-product Credits, per Gold Ounce and AISC, After By-product Credits, per Gold Ounce for the production of gold, its primary product, and by-product revenues earned from silver, which is a by-product at Casa Berardi and Nevada Operations. Only costs and ounces produced relating to units with the same primary product are combined to represent Cash Cost, After By-product Credits, per Ounce and AISC, After By-product Credits, per Ounce. Thus, the gold produced at our Casa Berardi and Nevada Operations units is not included as a by-product credit when calculating Cash Cost, After By-product Credits, per Silver Ounce and AISC, After By-product Credits, per Silver Ounce for the total of Greens Creek, Lucky Friday and San Sebastian, our combined silver properties. Similarly, the silver produced at our other three units is not included as a by-product credit when calculating the gold metrics for Casa Berardi and Nevada Operations.

Investor Relations, Hecla Mining Company - 1-800-432-5291 - hmc-info@hecla-mining.com 15

In thousands (except per ounce amounts)

Three Months Ended September 30, 2021

Greens

Creek

Lucky

Friday(2)

San

Sebastian(3)

Corporate(4)

Total Silver

Cost of sales and other direct production costs and depreciation, depletion and amortization

$ 55,193 23,591 $ - $ 78,784

Depreciation, depletion and amortization

(13,097 ) (6,590 ) - (19,687 )

Treatment costs

7,979 3,427 - 11,406

Change in product inventory

(122 ) (68 ) - (190 )

Reclamation and other costs

(786 ) (281 ) - (1,067 )

Cash Cost, Before By-product Credits (1)

49,167 20,079 - 69,246

Reclamation and other costs

848 264 - 1,112

Exploration

2,472 - - 474 2,946

Sustaining capital

6,228 8,406 - - 14,634

General and administrative

8,874 8,874

AISC, Before By-product Credits (1)

58,715 28,749 - 96,812

By-product credits:

Zinc

(25,295 ) (4,611 ) - (29,906 )

Gold

(14,864 ) - - (14,864 )

Lead

(7,640 ) (10,188 ) $ - (17,828 )

Total By-product credits

(47,799 ) (14,799 ) - (62,598 )

Cash Cost, After By-product Credits

$ 1,368 $ 5,280 $ - $ 6,648

AISC, After By-product Credits

$ 10,916 $ 13,950 $ - $ 34,214

Divided by silver ounces produced

1,837 832 - 2,669

Cash Cost, Before By-product Credits, per Ounce

$ 26.76 $ 24.14 $ - $ 25.93

By-product credits per ounce

(26.02 ) $ (17.79 ) - (23.44 )

Cash Cost, After By-product Credits, per Ounce

$ 0.74 $ 6.35 $ - $ 2.49

AISC, Before By-product Credits, per Ounce

$ 31.96 $ 34.58 $ - $ 36.26

By-product credits per ounce

(26.02 ) $ (17.79 ) - (23.44 )

AISC, After By-product Credits, per Ounce

$ 5.94 16.79 $ - $ 12.82
Investor Relations, Hecla Mining Company - 1-800-432-5291 - hmc-info@hecla-mining.com 16

In thousands (except per ounce amounts)

Three Months Ended September 30, 2021

Casa Berardi(5)

Nevada Operations(6)

Total Gold

Cost of sales and other direct production costs and depreciation, depletion and amortization

$ 58,164 $ 21,384 $ 79,548

Depreciation, depletion and amortization

(19,968 ) (6,135 ) (26,103 )

Treatment costs

475 1 476

Change in product inventory

(3,369 ) (12,389 ) (15,758 )

Reclamation and other costs

(210 ) - (210 )

Cash Cost, Before By-product Credits (1)

35,092 2,861 37,953

Reclamation and other costs

209 327 536

Exploration

1,541 - 1,541

Sustaining capital

7,208 29 7,237

AISC, Before By-product Credits (1)

44,050 3,217 47,267

By-product credits:

Silver

(169 ) (6 ) (175 )

Total By-product credits

(169 ) (6 ) (175 )

Cash Cost, After By-product Credits

$ 34,923 $ 2,855 $ 37,778

AISC, After By-product Credits

$ 43,881 $ 3,211 $ 47,092

Divided by gold ounces produced

30 3 33

Cash Cost, Before By-product Credits, per Ounce

$ 1,181 $ 1,040 $ 1,168

By-product credits per ounce

(6 ) (2 ) (5 )

Cash Cost, After By-product Credits, per Ounce

$ 1,175 $ 1,038 $ 1,163

AISC, Before By-product Credits, per Ounce

$ 1,482 $ 1,169 $ 1,455

By-product credits per ounce

(6 ) (2 ) (5 )

AISC, After By-product Credits, per Ounce

$ 1,476 $ 1,167 $ 1,450
Investor Relations, Hecla Mining Company - 1-800-432-5291 - hmc-info@hecla-mining.com 17

In thousands (except per ounce amounts)

Three Months Ended September 30, 2021

Total Silver

Total Gold

Total

Cost of sales and other direct production costs and depreciation, depletion and amortization

$ 78,784 79,548 $ 158,332

Depreciation, depletion and amortization

(19,687 ) (26,103 ) (45,790 )

Treatment costs

11,406 476 11,882

Change in product inventory

(190 ) (15,758 ) (15,948 )

Reclamation and other costs

(1,067 ) (210 ) (1,277 )

Cash Cost, Before By-product Credits (1)

69,246 37,953 107,199

Reclamation and other costs

1,112 536 1,648

Exploration

2,946 1,541 4,487

Sustaining capital

14,634 7,237 21,871

General and administrative

8,874 - 8,874

AISC, Before By-product Credits (1)

96,812 47,267 144,079

By-product credits:

Zinc

(29,906 ) - (29,906 )

Gold

(14,864 ) - (14,864 )

Lead

(17,828 ) - (17,828 )

Silver

(175 ) (175 )

Total By-product credits

(62,598 ) (175 ) (62,773 )

Cash Cost, After By-product Credits

$ 6,648 $ 37,778 $ 44,426

AISC, After By-product Credits

$ 34,214 $ 47,092 $ 81,306

Divided by ounces produced

2,669 33

Cash Cost, Before By-product Credits, per Ounce

$ 25.93 $ 1,168

By-product credits per ounce

(23.44 ) (5 )

Cash Cost, After By-product Credits, per Ounce

$ 2.49 $ 1,163

AISC, Before By-product Credits, per Ounce

$ 36.26 $ 1,455

By-product credits per ounce

(23.44 ) (5 )

AISC, After By-product Credits, per Ounce

$ 12.82 $ 1,450
Investor Relations, Hecla Mining Company - 1-800-432-5291 - hmc-info@hecla-mining.com 18

In thousands (except per ounce amounts)

Three Months Ended September 30, 2020

Greens Creek

Lucky Friday(2)

San Sebastian

Corporate(4)

Total Silver

Cost of sales and other direct production costs and depreciation, depletion and amortization

$ 48,105 $ 21,500 $ 5,960 $ 75,565

Depreciation, depletion and amortization

(11,735 ) (2,956 ) (781 ) (15,472 )

Treatment costs

22,675 4,038 81 26,794

Change in product inventory

2,899 11 826 3,736

Reclamation and other costs

(891 ) - (392 ) (1,283 )

Exclusion of Lucky Friday cash costs

- (22,593 ) (22,593 )

Cash Cost, Before By-product Credits (1)

61,053 - 5,694 66,747

Reclamation and other costs

788 - 114 902

Exploration

370 - - 429 799

Sustaining capital

8,265 - 244 38 8,547

General and administrative

10,345 10,345

AISC, Before By-product Credits (2)

70,476 - 6,052 87,340

By-product credits:

Zinc

(23,772 ) - - (23,772 )

Gold

(21,226 ) - (3,686 ) (24,912 )

Lead

(8,149 ) - - (8,149 )

Total By-product credits

(53,147 ) - (3,686 ) (56,833 )

Cash Cost, After By-product Credits

$ 7,906 $ - $ 2,008 $ 9,914

AISC, After By-product Credits

$ 17,329 $ - $ 2,366 $ 30,507

Divided by ounces produced

2,634 267 2,901

Cash Cost, Before By-product Credits, per Ounce

$ 23.18 $ - $ 21.34 $ 23.00

By-product credits per ounce

(20.18 ) - (13.81 ) (19.59 )

Cash Cost, After By-product Credits, per Ounce

$ 3.00 $ - $ 7.53 $ 3.41

AISC, Before By-product Credits, per Ounce

$ 26.76 $ - $ 22.68 $ 30.11

By-product credits per ounce

(20.18 ) - (13.81 ) (19.59 )

AISC, After By-product Credits, per Ounce

$ 6.58 $ - $ 8.87 $ 10.52
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In thousands (except per ounce amounts)

Three Months Ended September 30, 2020

Casa Berardi

Nevada Operations

Total Gold

Cost of sales and other direct production costs and depreciation, depletion and amortization

$ 51,573 $ 13,877 $ 65,450

Depreciation, depletion and amortization

(15,223 ) (7,295 ) (22,518 )

Treatment costs

562 - 562

Change in product inventory

543 6,920 7,463

Reclamation and other costs

(449 ) (324 ) (773 )

Exclusion of Nevada cash costs

- (13,178 ) (13,178 )

Cash Cost, Before By-product Credits (1)

37,006 - 37,006

Reclamation and other costs

97 - 97

Exploration

335 - 335

Sustaining capital

11,629 - 11,629

AISC, Before By-product Credits (1)

49,067 - 49,067

By-product credits:

Silver

(93 ) - (93 )

Total By-product credits

(93 ) - (93 )

Cash Cost, After By-product Credits

$ 36,913 $ - $ 36,913

AISC, After By-product Credits

$ 48,974 $ - $ 48,974

Divided by ounces produced

26 - 26

Cash Cost, Before By-product Credits, per Ounce

$ 1,402 $ - $ 1,402

By-product credits per ounce

(4 ) - (4 )

Cash Cost, After By-product Credits, per Ounce

$ 1,398 $ - $ 1,398

AISC, Before By-product Credits, per Ounce

$ 1,859 $ - $ 1,859

By-product credits per ounce

(4 ) - (4 )

AISC, After By-product Credits, per Ounce

$ 1,855 $ - $ 1,855
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In thousands (except per ounce amounts)

Three Months Ended September 30, 2020

Total Silver

Total Gold

Total

Cost of sales and other direct production costs and depreciation, depletion and amortization

$ 75,565 65,450 $ 141,015

Depreciation, depletion and amortization

(15,472 ) (22,518 ) (37,990 )

Treatment costs

26,794 562 27,356

Change in product inventory

3,736 7,463 11,199

Reclamation and other costs

(1,283 ) (773 ) (2,056 )

Exclusion of cash costs

(22,593 ) (13,178 ) (35,771 )

Cash Cost, Before By-product Credits (1)

66,747 37,006 103,753

Reclamation and other costs

902 97 999

Sustaining exploration

799 335 1,134

Sustaining capital

8,547 11,629 20,176

General and administrative

10,345 - 10,345

AISC, Before By-product Credits (1)

87,340 49,067 136,407

By-product credits:

Zinc

(23,772 ) - (23,772 )

Gold

(24,912 ) - (24,912 )

Lead

(8,149 ) - (8,149 )

Silver

(93 ) (93 )

Total By-product credits

(56,833 ) (93 ) (56,926 )

Cash Cost, After By-product Credits

$ 9,914 $ 36,913 $ 46,827

AISC, After By-product Credits

$ 30,507 $ 48,974 $ 79,481

Divided by ounces produced

2,901 26

Cash Cost, Before By-product Credits, per Ounce

$ 23.00 $ 1,402

By-product credits per ounce

(19.59 ) (4 )

Cash Cost, After By-product Credits, per Ounce

$ 3.41 $ 1,398

AISC, Before By-product Credits, per Ounce

$ 30.11 $ 1,859

By-product credits per ounce

(19.59 ) (4 )

AISC, After By-product Credits, per Ounce

$ 10.52 $ 1,855
Investor Relations, Hecla Mining Company - 1-800-432-5291 - hmc-info@hecla-mining.com 21

In thousands (except per ounce amounts)

Nine Months Ended September 30, 2021

Greens Creek

Lucky Friday(2)

San Sebastian(3)

Corporate(4)

Total Silver

Cost of sales and other direct production costs and depreciation, depletion and amortization

$ 163,861 $ 74,287 $ 95 $ 238,243

Depreciation, depletion and amortization

(42,410 ) (20,328 ) - (62,738 )

Treatment costs

27,444 13,087 - 40,531

Change in product inventory

(156 ) (1,757 ) - (1,913 )

Reclamation and other costs

(1,777 ) (840 ) (95 ) (2,712 )

Cash Cost, Before By-product Credits (1)

146,962 64,449 - 211,411

Reclamation and other costs

2,543 792 - 3,335

Sustaining exploration

3,895 - - 1,359 5,254

Sustaining capital

17,459 19,104 - - 36,563

General and administrative

27,985 27,985

AISC, Before By-product Credits (1)

170,859 84,345 - 284,548

By-product credits:

Zinc

(74,571 ) (14,457 ) - (89,028 )

Gold

(56,299 ) - - (56,299 )

Lead

(23,265 ) (30,762 ) - (54,027 )

Total By-product credits

(154,135 ) (45,219 ) - (199,354 )

Cash Cost, After By-product Credits

$ (7,173 ) $ 19,230 $ - $ 12,057

AISC, After By-product Credits

$ 16,724 $ 39,126 $ - $ 85,194

Divided by silver ounces produced

6,981 2,609 - 9,590

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

$ 21.05 $ 24.70 $ - $ 22.05

By-product credits per ounce

(22.08 ) (17.33 ) - (20.79 )

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

$ (1.03 ) $ 7.37 $ - $ 1.26

AISC, Before By-product Credits, per Silver Ounce

$ 24.48 $ 32.33 $ - $ 29.67

By-product credits per ounce

(22.08 ) (17.33 ) - (20.79 )

AISC, After By-product Credits, per Silver Ounce

$ 2.40 $ 15.00 $ - $ 8.88
Investor Relations, Hecla Mining Company - 1-800-432-5291 - hmc-info@hecla-mining.com 22

In thousands (except per ounce amounts)

Nine Months Ended September 30, 2021

Casa Berardi(5)

Nevada Operations (6)

Total Gold

Cost of sales and other direct production costs and depreciation, depletion and amortization

$ 172,760 $ 46,832 $ 219,592

Depreciation, depletion and amortization

(61,159 ) (15,021 ) (76,180 )

Treatment costs

1,723 1,731 3,454

Change in product inventory

(2,401 ) (9,951 ) (12,352 )

Reclamation and other costs

(632 ) 299 (333 )

Cash Cost, Before By-product Credits (1)

110,291 23,890 134,181

Reclamation and other costs

632 681 1,313

Sustaining exploration

3,551 - 3,551

Sustaining capital

21,030 195 21,225

AISC, Before By-product Credits (1)

135,504 24,766 160,270

By-product credits:

Silver

(656 ) (1,131 ) (1,787 )

Total By-product credits

(656 ) (1,131 ) (1,787 )

Cash Cost, After By-product Credits

$ 109,635 $ 22,759 $ 132,394

AISC, After By-product Credits

$ 134,848 $ 23,635 $ 158,483

Divided by gold ounces produced

97 20 117

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

$ 1,134 $ 1,180 $ 1,142

By-product credits per ounce

(7 ) (56 ) (15 )

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

$ 1,127 $ 1,124 $ 1,127

AISC, Before By-product Credits, per Gold Ounce

$ 1,394 $ 1,223 $ 1,364

By-product credits per ounce

(7 ) (56 ) (15 )

AISC, After By-product Credits, per Gold Ounce

$ 1,387 $ 1,167 $ 1,349
Investor Relations, Hecla Mining Company - 1-800-432-5291 - hmc-info@hecla-mining.com 23

In thousands (except per ounce amounts)

Nine Months Ended September 30, 2021

Total Silver

Total Gold

Total

Cost of sales and other direct production costs and depreciation, depletion and amortization

$ 238,243 219,592 $ 457,835

Depreciation, depletion and amortization

(62,738 ) (76,180 ) (138,918 )

Treatment costs

40,531 3,454 43,985

Change in product inventory

(1,913 ) (12,352 ) (14,265 )

Reclamation and other costs

(2,712 ) (333 ) (3,045 )

Cash Cost, Before By-product Credits (1)

211,411 134,181 345,592

Reclamation and other costs

3,335 1,313 4,648

Sustaining exploration

5,254 3,551 8,805

Sustaining capital

36,563 21,225 57,788

General and administrative

27,985 - 27,985

AISC, Before By-product Credits (1)

284,548 160,270 444,818

By-product credits:

Zinc

(89,028 ) - (89,028 )

Gold

(56,299 ) - (56,299 )

Lead

(54,027 ) - (54,027 )

Silver

(1,787 ) (1,787 )

Total By-product credits

(199,354 ) (1,787 ) (201,141 )

Cash Cost, After By-product Credits

$ 12,057 $ 132,394 $ 144,451

AISC, After By-product Credits

$ 85,194 $ 158,483 $ 243,677

Divided by ounces produced

9,590 117

Cash Cost, Before By-product Credits, per Ounce

$ 22.05 $ 1,142

By-product credits per ounce

(20.79 ) (15 )

Cash Cost, After By-product Credits, per Ounce

$ 1.26 $ 1,127

AISC, Before By-product Credits, per Ounce

$ 29.67 $ 1,364

By-product credits per ounce

(20.79 ) (15 )

AISC, After By-product Credits, per Ounce

$ 8.88 $ 1,349
Investor Relations, Hecla Mining Company - 1-800-432-5291 - hmc-info@hecla-mining.com 24

In thousands (except per ounce amounts)

Nine Months Ended September 30, 2020

Greens Creek

Lucky Friday(2)

San Sebastian

Corporate(4)

Total Silver

Cost of sales and other direct production costs and depreciation, depletion and amortization

$ 153,496 $ 35,787 $ 18,271 $ 207,554

Depreciation, depletion and amortization

(37,152 ) (5,152 ) (3,149 ) (45,453 )

Treatment costs

58,517 7,502 232 66,251

Change in product inventory

1,749 807 681 3,237

Reclamation and other costs

(478 ) - (1,050 ) (1,528 )

Exclusion of Lucky Friday cash costs

- (38,944 ) (38,944 )

Cash Cost, Before By-product Credits (1)

176,132 - 14,985 191,117

Reclamation and other costs

2,365 - 342 2,707

Sustaining exploration

374 - - 1,362 1,736

Sustaining capital

18,276 - 299 38 18,613

General and administrative

26,263 26,263

AISC, Before By-product Credits (1)

197,147 - 15,626 240,436

By-product credits:

Zinc

(59,711 ) - - (59,711 )

Gold

(57,850 ) - (10,402 ) (68,252 )

Lead

(22,208 ) - - (22,208 )

Total By-product credits

(139,769 ) - (10,402 ) (150,171 )

Cash Cost, After By-product Credits

$ 36,363 $ - $ 4,583 $ 40,946

AISC, After By-product Credits

$ 57,378 $ - $ 5,224 $ 90,265

Divided by ounces produced

8,164 - 772 8,936

Cash Cost, Before By-product Credits, per Ounce

$ 21.57 $ - $ 19.41 $ 21.39

By-product credits per ounce

(17.12 ) - (13.47 ) (16.81 )

Cash Cost, After By-product Credits, per Ounce

$ 4.45 $ - $ 5.94 $ 4.58

AISC, Before By-product Credits, per Ounce

$ 24.15 $ - $ 20.23 $ 26.90

By-product credits per ounce

(17.12 ) - (13.47 ) (16.81 )

AISC, After By-product Credits, per Ounce

$ 7.03 $ - $ 6.76 $ 10.09
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In thousands (except per ounce amounts)

Nine Months Ended September 30, 2020

Casa Berardi

Nevada Operations

Total Gold

Cost of sales and other direct production costs and depreciation, depletion and amortization

$ 140,893 $ 44,348 $ 185,241

Depreciation, depletion and amortization

(44,314 ) (22,725 ) (67,039 )

Treatment costs

1,693 45 1,738

Change in product inventory

1,751 15,869 17,620

Reclamation and other costs

(637 ) (978 ) (1,615 )

Exclusion of Nevada cash costs

- (13,178 ) (13,178 )

Cash Cost, Before By-product Credits (1)

99,386 23,381 122,767

Reclamation and other costs

287 654 941

Sustaining exploration

1,493 - 1,493

Sustaining capital

24,413 1,600 26,013

AISC, Before By-product Credits (1)

125,579 25,635 151,214

By-product credits:

Silver

(285 ) (635 ) (920 )

Total By-product credits

(285 ) (635 ) (920 )

Cash Cost, After By-product Credits

$ 99,101 $ 22,746 $ 121,847

AISC, After By-product Credits

$ 125,294 $ 25,000 $ 150,294

Divided by ounces produced

84 32 116

Cash Cost, Before By-product Credits, per Ounce

$ 1,184 $ 736 $ 1,061

By-product credits per ounce

(3 ) (20 ) (8 )

Cash Cost, After By-product Credits, per Ounce

$ 1,181 $ 716 $ 1,053

AISC, Before By-product Credits, per Ounce

$ 1,496 $ 807 $ 1,307

By-product credits per ounce

(3 ) (20 ) (8 )

AISC, After By-product Credits, per Ounce

$ 1,493 $ 787 $ 1,299
Investor Relations, Hecla Mining Company - 1-800-432-5291 - hmc-info@hecla-mining.com 26

In thousands (except per ounce amounts)

Nine Months Ended September 30, 2020

Total Silver

Total Gold

Total

Cost of sales and other direct production costs and depreciation, depletion and amortization

$ 207,554 185,241 $ 392,795

Depreciation, depletion and amortization

(45,453 ) (67,039 ) (112,492 )

Treatment costs

66,251 1,738 67,989

Change in product inventory

3,237 17,620 20,857

Reclamation and other costs

(1,528 ) (1,615 ) (3,143 )

Exclusion of cash costs

(38,944 ) (13,178 ) (52,122 )

Cash Cost, Before By-product Credits (1)

191,117 122,767 313,884

Reclamation and other costs

2,707 941 3,648

Sustaining exploration

1,736 1,493 3,229

Sustaining capital

18,613 26,013 44,626

General and administrative

26,263 - 26,263

AISC, Before By-product Credits (1)

240,436 151,214 391,650

By-product credits:

Zinc

(59,711 ) - (59,711 )

Gold

(68,252 ) - (68,252 )

Lead

(22,208 ) - (22,208 )

Silver

(920 ) (920 )

Total By-product credits

(150,171 ) (920 ) (151,091 )

Cash Cost, After By-product Credits

$ 40,946 $ 121,847 $ 162,793

AISC, After By-product Credits

$ 90,265 $ 150,294 $ 240,559

Divided by ounces produced

8,936 116

Cash Cost, Before By-product Credits, per Ounce

$ 21.39 $ 1,061

By-product credits per ounce

(16.81 ) (8 )

Cash Cost, After By-product Credits, per Ounce

$ 4.58 $ 1,053

AISC, Before By-product Credits, per Ounce

$ 26.90 $ 1,307

By-product credits per ounce

(16.81 ) (8 )

AISC, After By-product Credits, per Ounce

$ 10.09 $ 1,299
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In thousands (except per ounce amounts)

Previous Estimate for Twelve Months Ended

December 31, 2021

Casa Berardi

Nevada Operations

Total Gold

Total cost of sales

$ 212,000 $ 41,000 $ 253,000

Depreciation, depletion and amortization

(87,500 ) (5,600 ) (93,100 )

Treatment costs

400 4,600 5,000

Change in product inventory

(9,000 ) (11,600 ) (20,600 )

Reclamation and other costs

300 500 800

Cash Cost, Before By-product Credits (1)

116,200 28,900 145,100

Reclamation and other costs

500 100 600

Exploration

3,800 - 3,800

Sustaining capital

31,500 2,000 33,500

AISC, Before By-product Credits (1)

152,000 31,000 183,000

By-product credits:

Silver

(600 ) (550 ) (1,150 )

Total By-product credits

(600 ) (550 ) (1,150 )

Cash Cost, After By-product Credits

$ 115,600 $ 28,350 $ 143,950

AISC, After By-product Credits

$ 151,400 $ 30,450 $ 181,850

Divided by gold ounces produced

127 21 148

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

$ 919 $ 1,376 $ 984

By-product credits per gold ounce

(5 ) (26 ) (8 )

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

$ 914 $ 1,350 $ 976

AISC, Before By-product Credits, per Gold Ounce

$ 1,201 $ 1,476 $ 1,241

By-product credits per gold ounce

(5 ) (26 ) (8 )

AISC, After By-product Credits, per Gold Ounce

$ 1,196 $ 1,450 $ 1,233
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In thousands (except per ounce amounts)

Previous Estimate for Twelve Months Ended

December 31, 2021

Total Silver

Total Gold

Total

Total cost of sales

$ 303,400 $ 253,000 $ 556,400

Depreciation, depletion and amortization

(81,000 ) (93,100 ) (174,100 )

Treatment costs

55,100 5,000 60,100

Change in product inventory

4,000 (20,600 ) (16,600 )

Reclamation and other costs

5,500 800 6,300

Cash Cost, Before By-product Credits (1)

287,000 145,100 432,100

Reclamation and other costs

5,000 600 5,600

Exploration

4,000 3,800 7,800

Sustaining capital

58,000 33,500 91,500

General and administrative

34,500 - 34,500

AISC, Before By-product Credits (1)

388,500 183,000 571,500

By-product credits:

Zinc

(100,500 ) - (100,500 )

Gold

(70,000 ) - (70,000 )

Lead

(66,900 ) - (66,900 )

Silver

(1,150 ) (1,150 )

Total By-product credits

(237,400 ) (1,150 ) (238,550 )

Cash Cost, After By-product Credits

$ 49,600 $ 143,950 $ 193,550

AISC, After By-product Credits

$ 151,100 $ 181,850 $ 332,950

Divided by ounces produced

13,450 148

Cash Cost, Before By-product Credits, per Ounce

$ 21.34 $ 984

By-product credits per ounce

(17.65 ) (8 )

Cash Cost, After By-product Credits, per Ounce

$ 3.69 $ 976

AISC, Before By-product Credits, per Ounce

$ 28.88 $ 1,241

By-product credits per ounce

(17.65 ) (8 )

AISC, After By-product Credits, per Ounce

$ 11.23 $ 1,233
Investor Relations, Hecla Mining Company - 1-800-432-5291 - hmc-info@hecla-mining.com 29

In thousands (except per ounce amounts)

Current Estimate for Twelve Months Ended December 31, 2021

(Unchanged from Previous Estimate)

Greens Creek

Lucky Friday

San Sebastian

Corporate(4)

Total Silver

Total cost of sales

$ 222,000 $ 102,500 $ - $ 324,500

Depreciation, depletion and amortization

(59,200 ) (27,400 ) - (86,600 )

Treatment costs

37,500 14,500 - 52,000

Change in product inventory

(3,700 ) (1,250 ) - (4,950 )

Reclamation and other costs

1,500 1,500 - 3,000

Cash Cost, Before By-product Credits (1)

198,100 89,850 - 287,950

Reclamation and other costs

3,400 1,000 - 4,400

Exploration

4,300 - - 1,732 6,032

Sustaining capital

35,000 26,500 - 61,500

General and administrative

- - - 38,700 38,700

AISC, Before By-product Credits (1)

240,800 117,350 - 398,582

By-product credits:

Zinc

(98,000 ) (17,000 ) - (115,000 )

Gold

(75,100 ) - - (75,100 )

Lead

(31,000 ) (43,000 ) - (74,000 )

Total By-product credits

(204,100 ) (60,000 ) - (264,100 )

Cash Cost, After By-product Credits

$ (6,000 ) $ 29,850 $ - $ 23,850

AISC, After By-product Credits

$ 36,700 $ 57,350 $ - $ 134,482

Divided by silver ounces produced

9,850 3,600 - 13,450

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

$ 20.11 $ 24.96 $ - $ 21.41

By-product credits per silver ounce

(20.72 ) (16.67 ) - (19.64 )

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

$ (0.61 ) $ 8.29 $ - $ 1.77

AISC, Before By-product Credits, per Silver Ounce

$ 24.45 $ 32.60 $ - $ 29.63

By-product credits per silver ounce

(20.72 ) (16.67 ) - (19.64 )

AISC, After By-product Credits, per Silver Ounce

$ 3.73 $ 15.93 $ - $ 9.99
Investor Relations, Hecla Mining Company - 1-800-432-5291 - hmc-info@hecla-mining.com 30

In thousands (except per ounce amounts)

Current Estimate for Twelve Months Ended December 31, 2021

Casa Berardi

Nevada Operations

Total Gold

Total cost of sales

$ 230,400 $ 42,600 $ 273,000

Depreciation, depletion and amortization

(81,500 ) (14,500 ) (96,000 )

Treatment costs

500 5,000 5,500

Change in product inventory

(8,200 ) (4,650 ) (12,850 )

Reclamation and other costs

550 675 1,225

Cash Cost, Before By-product Credits (1)

141,750 29,125 170,875

Reclamation and other costs

700 300 1,000

Exploration

4,400 - 4,400

Sustaining capital

31,300 125 31,425

AISC, Before By-product Credits (1)

178,150 29,550 207,700

By-product credits:

Silver

(840 ) (1,125 ) (1,965 )

Total By-product credits

(840 ) (1,125 ) (1,965 )

Cash Cost, After By-product Credits

$ 140,910 $ 28,000 $ 168,910

AISC, After By-product Credits

$ 177,310 $ 28,425 $ 200,735

Divided by gold ounces produced

133 21 153

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

$ 1,069 $ 1,421 $ 1,076

By-product credits per gold ounce

(6 ) (55 ) (13 )

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

$ 1,063 $ 1,366 $ 1,066

AISC, Before By-product Credits, per Gold Ounce

$ 1,344 $ 1,441 $ 1,322

By-product credits per gold ounce

(7 ) (55 ) (13 )

AISC, After By-product Credits, per Gold Ounce

$ 1,337 $ 1,386 $ 1,309
Investor Relations, Hecla Mining Company - 1-800-432-5291 - hmc-info@hecla-mining.com 31

In thousands (except per ounce amounts)

Current Estimate for Twelve Months Ended December 31, 2021

Total Silver

Total Gold

Total

Total cost of sales

$ 324,500 $ 273,000 $ 597,500

Depreciation, depletion and amortization

(86,600 ) (96,000 ) (182,600 )

Treatment costs

52,000 1,700 53,700

Change in product inventory

(4,950 ) (14,750 ) (19,700 )

Reclamation and other costs

3,000 1,175 4,175

Cash Cost, Before By-product Credits (1)

287,950 165,125 453,075

Reclamation and other costs

4,400 1,275 5,675

Exploration

6,032 4,400 10,432

Sustaining capital

61,500 31,485 92,985

General and administrative

38,700 - 38,700

AISC, Before By-product Credits (1)

398,582 202,285 600,867

By-product credits:

Zinc

(115,000 ) - (115,000 )

Gold

(75,100 ) - (75,100 )

Lead

(74,000 ) - (74,000 )

Silver

(2,040 ) (2,040 )

Total By-product credits

(264,100 ) (2,040 ) (266,140 )

Cash Cost, After By-product Credits

$ 23,850 $ 163,085 $ 186,935

AISC, After By-product Credits

$ 134,482 $ 202,285 $ 334,727

Divided by ounces produced

13,450 153

Cash Cost, Before By-product Credits, per Ounce

$ 21.41 $ 1,076

By-product credits per ounce

(19.64 ) (13 )

Cash Cost, After By-product Credits, per Ounce

$ 1.77 $ 1,063

AISC, Before By-product Credits, per Ounce

$ 29.63 $ 1,322

By-product credits per ounce

(19.64 ) (13 )

AISC, After By-product Credits, per Ounce

$ 9.99 $ 1,309

(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 unit. AISC, Before By-product Credits also includes on-site exploration, reclamation, and sustaining capital costs.

(2)

The unionized employees at Lucky Friday were on strike from March 2017 until January 2020, and production at Lucky Friday was limited from the start of the strike until the ramp-up was substantially completed in the fourth quarter of 2020. Costs related to ramp-up activities totaling $5.4 million, along with $6.3 million in non-cash depreciation expense, in the first nine months of 2020 have been excluded from the calculations of cost of sales and other direct production costs and depreciation, depletion and amortization, Cash Cost, Before By-product Credits, Cash Cost, After By-product Credits, AISC, Before By-product Credits, and AISC, After By-product Credits.

(3)

Mining at San Sebastian was completed in the third quarter of 2020, and milling was completed in the fourth quarter of 2020. Suspension-related costs at San Sebastian totaling $2.0 million for the first nine months of 2021 are reported in a separate line item on our consolidated statements of operations and excluded from the calculations of cost of sales and other direct production costs and depreciation, depletion and amortization, Cash Cost, Before By-product Credits, Cash Cost, After By-product Credits, AISC, Before By-product Credits, and AISC, After By-product Credits.

Investor Relations, Hecla Mining Company - 1-800-432-5291 - hmc-info@hecla-mining.com 32

(4)

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

(5)

In late March 2020, the Government of Quebec ordered the mining industry to reduce to minimum operations as part of the fight against the COVID-19 virus, causing us to suspend our Casa Berardi operations from approximately March 24 until April 15, when limited mining operations resumed, resulting in reduced mill throughput. Suspension-related costs totaling $1.6 million for the first nine months of 2020 are reported in a separate line item on our consolidated statements of operations and excluded from the calculations of cost of sales and other direct production costs and depreciation, depletion and amortization, Cash Cost, Before By-product Credits, Cash Cost, After By-product Credits, AISC, Before By-product Credits, and AISC, After By-product Credits.

(6)

Production was suspended at the Hollister and Midas mines and Aurora mill in the latter part of 2019. Suspension-related costs at Nevada Operations totaling $15.0 million and $9.6 million for the first nine months of 2021 and 2020, respectively, are reported in a separate line item on our consolidated statements of operations and excluded from the calculations of cost of sales and other direct production costs and depreciation, depletion and amortization, Cash Cost, Before By-product Credits, Cash Cost, After By-product Credits, AISC, Before By-product Credits, and AISC, After By-product Credits.

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

Nine Months Ended

Sept 30, 2021

Sept 30, 2020

Sept 30, 2021

Sept 30, 2020

Cash provided by operating activities

$ 42,742 $ 73,439 $ 166,982 $ 115,892

Less: Additions to properties, plants equipment and mineral interests

(26,899 ) (23,693 ) (80,210 ) (54,382 )

Free cash flow

$ 15,843 $ 49,746 $ 86,772 $ 61,510
Investor Relations, Hecla Mining Company - 1-800-432-5291 - hmc-info@hecla-mining.com 33

Disclaimer

Hecla Mining Company published this content on 05 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 November 2021 13:17:16 UTC.


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Russell Lawlar Chief Financial Officer & Senior Vice President
Theodore Crumley Chairman
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Michael L. Clary Chief Administrative Officer & Senior VP
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