Hecla Mining Company (HL) investor relations material

Executive summary

• Revenue from continuing operations reached $411 million in Q1 2026, up 13% sequentially and 100% year-over-year, driven by higher realized silver and gold prices despite lower production volumes.

• Net income from continuing operations was $165 million ($0.25/share), up from $24 million year-over-year; after a non-cash write-down from the Casa Berardi sale, net loss attributable to shareholders was $19 million.

• Record adjusted EBITDA of $265 million and free cash flow of $144 million, with all mines generating positive free cash flow.

• Completed sale of Casa Berardi (Hecla Quebec) for $385.7 million, focusing on core North American silver assets and strengthening the balance sheet.

• Ended the quarter debt-free with $588 million in cash, following full redemption of $263 million in Senior Notes post-quarter.

Financial highlights

• Q1 2026 revenue from continuing operations: $411 million, up 13% sequentially and 100% year-over-year; 73% of revenue from silver.

• Adjusted EBITDA: $265 million; operating cash flow: $183 million; free cash flow: $144 million.

• Cash and cash equivalents at quarter-end: $588 million; total debt: $266 million; net cash position post-quarter.

• Gross profit from continuing operations: $253 million; effective tax rate: 23.6%.

• Realized silver price: $82.70/oz; mine-level margin: 90%.

Outlook and guidance

• 2026 silver production guidance: 15.1–16.5 million ounces, with a pathway to 20+ million ounces annually driven by project pipeline.

• Capital expenditures for 2026 estimated at $204–$223 million, with $55 million planned for exploration and pre-development.

• Production and cost guidance for 2026 reiterated, with expectations of stable grades and costs at Greens Creek.

• Keno Hill ramp-up to permitted capacity and permitting for future expansions remain a focus.

• Exploration activity to increase in Q2 and Q3, targeting reserve replacement and growth in Nevada and Silver Valley.