Hecla Reports Fourth Quarter and Full Year 2025 Results

2025 Cash Flow from Operations $563 million, Free Cash Flow¹ $310 million, Numerous records achieved; Balance sheet strengthening continues, Net leverage ratio at 0.1x from 1.6x a year ago

Hecla Mining Company ((HL) ("Hecla", "we", "our" or the "Company") today announced fourth quarter and full year 2025 financial and operating results. "Prior quarter" refers to the third quarter of 2025 and "prior year" refers to 2024.

2025 HIGHLIGHTS

Financial Performance:

• Record revenue: Over $1.4 billion, representing a 53% increase over prior year.
• Record profitability: Net income applicable to common stockholders of $321 million, or $0.49 per share.
• Record Adjusted EBITDA: $670 million, nearly doubling the prior year.⁴
• Substantial deleveraging: Total debt of $276 million, net debt of $34 million, decline of 50% in total debt over prior year. Gross Debt to Adjusted EBITDA ratio of 0.4x.
• Building balance sheet strength: Cash balance of $242 million, providing strategic flexibility.
• Continued strong cash flow generation: $563 million cash generated from operations, with $310 million in free cash flow¹, all operations generated positive free cash flow.

Operational Performance:

• Silver Operations:
  • 17.0 million ounces of silver produced, exceeding 2024 production by over 5% and at the top end of consolidated silver production guidance.
  • Consolidated total cost of sales of $556 million, with silver cash cost of ($1.75) per ounce and AISC of $11.28 per ounce (both after by-product credits).^2,3
• Gold Operations:
  • Casa Berardi and Greens Creek delivered 2025 consolidated gold production of 151 thousand ounces, exceeding the top end of gold production guidance.
  • Casa Berardi total cost of sales in 2025 of $207 million, with gold cash cost of $1,851 per ounce and AISC of $2,029 per ounce (both after by-product credits).^2,3
• Individual Mine Performance:
  • Greens Creek: Produced over 8.7 million ounces of silver and over 59 thousand ounces of gold. Total cost of sales in 2025 of $290 million, with silver cash cost of ($8.02) per ounce and AISC of ($2.36) per ounce (both after by-product credits).^2,3
  • Lucky Friday: Record silver production of 5.3 million ounces, exceeding the top end of production guidance of 5.1 million ounces. Total cost of sales of $174 million, with silver cash cost of $8.66 per ounce and AISC of $21.98 per ounce (both after by-product credits).^2,3 Construction of the surface cooling project continued with the project 79% complete as of year-end and tracking for completion by mid-2026.
  • Keno Hill: First year of profitability and positive free cash flow generation under Hecla ownership. Achieved a new production record with over 3 million ounces of silver produced. The backfill plant construction was completed and is now being commissioned.
• Safety
  • Reduced company-wide Total Recordable Injury Frequency Rate ("TRIFR") to 1.69 in 2025, an improvement of 13% over the prior year.
• Permitting:
  • Aurora/Polaris: Received Finding of No Significant Impact ("FONSI") and Decision Notice from the U.S. Forest Service ("USFS") for the Polaris Exploration Project in Mineral County, Nevada, clearing the way for exploration activities to commence in 2026.
• Subsequent to Quarter End:
  • Casa Berardi: Entered into a definitive agreement to sell the Company's wholly-owned subsidiary that owns the Casa Berardi Mine and other Quebec exploration assets to Orezone Gold Corporation for total consideration of up to $593 million, with the transaction expected to close in the first quarter of 2026.
  • Greens Creek: Received FONSI and Decision Notice authorizing surface exploration operations.

Rob Krcmarov, President and Chief Executive Office, said: "2025 was a transformational year for Hecla with strong operational and financial results across a number of key metrics. Our balance sheet improved significantly and we are now well positioned to invest in value surfacing initiatives focused on our best-in-class project pipeline. All three silver operations delivered strong results - Lucky Friday achieved record production, Keno Hill reached a significant milestone, achieving its first full year of profitability under Hecla's ownership, and Greens Creek continued generating substantial cash flow. All while safety performance improved 13% company-wide.

"The pending sale of Casa Berardi for up to $593 million, which is expected to close in the first quarter of this year, positions us as North America's premier silver company. With our strengthened balance sheet and cash position, we aim to nearly double our exploration and pre-development spending to $55 million in 2026, and we will continue to focus on operational excellence and disciplined growth across our high quality silver portfolio."

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 third quarter of 2025 and "prior year" refers to 2024.

FULL YEAR RESULTS

Sales increased to over $1.4 billion, an increase of 53% over the prior year, primarily reflecting higher realized precious metals and zinc prices, due largely to timing of sales in a rising price environment, and higher precious metals sales volumes. Payable silver and gold ounces sold were over 5% higher compared to the prior year.

Gross profit was $622 million, a three-fold increase over the prior year. The increase is attributable to all mines, with Keno Hill, contributing its first annual positive gross profit under Hecla ownership. Gross profit benefited from higher revenue driven by higher realized prices and higher payable silver and gold sales volumes, partially offset by higher total cost of sales related to the higher volumes sold.

Net income applicable to common stockholders was $321 million, compared to $35 million in the prior year, over a nine-fold increase. The improvement was primarily related to:

• A 53% increase in revenue due primarily to higher payable silver and gold sold and higher realized precious metals and zinc prices.
• $29 million lower ramp-up and suspension costs driven primarily by Keno Hill transitioning to profitability.
• $8 million lower interest expense driven by a reduction in gross debt.
• A decrease in depreciation expense of $23 million due primarily to lower depreciation expense at Casa Berardi.

Partly offset by:

• An increase in cost of sales of $93 million related to higher total cost of sales at Greens Creek, Lucky Friday and Keno Hill on higher volumes sold, partly offset by lower total cost of sales at Casa Berardi as depreciation expense decreased over the prior year.
• An increase in income and mining tax provision of $127 million, reflecting higher taxable income and higher Alaska Mining License Tax and Quebec Mining Duties driven by elevated profitability at Greens Creek and Casa Berardi, respectively.

Adjusted EBITDA was $670 million, nearly double the prior year.⁴

Net Debt to Adjusted EBITDA improved significantly with net debt declining by more than 93% from the prior year to $34 million.⁴ The ratio of net debt to adjusted EBITDA (net leverage ratio) improved to 0.1x from 1.6x in the prior year due to strong EBITDA generation during the last 12 months, and an over $500 million decrease in net debt.⁴

Cash and cash equivalents at December 31, 2025, were $242 million and included no draws on the revolving credit facility.

Cash provided by operating activities was $563 million, up nearly 160% over the prior year, primarily attributable to elevated metal prices realized through higher volumes of payable silver and gold ounces sold. Cash provided by operating activities was impacted by unfavorable working capital changes of approximately $28 million compared to the prior year, driven primarily by a $138 million increase (unfavorable) in accounts receivable due to elevated metal prices and timing of concentrate shipments. The increase was largely concentrated in the fourth quarter, which saw over a $65 million increase.

Capital investment was $252 million, an increase of $38 million compared to the prior year, with numerous capital projects planned in 2025 at the operating mines that were either completed or tracking well to schedule at year end. In addition, we invested in corporate projects in 2025 geared toward improving business planning and operations initiatives, with more investment planned in 2026.

Free cash flow was $310 million, compared to less than $4 million in the prior year, with the increase primarily due to higher cash flow from operations, partly offset by higher capital investment.¹

Consolidated silver production of 17.0 million ounces was over 5% higher than the prior year, with all three silver mines driving the annual increase.

Consolidated gold production of 151 thousand ounces was over 6% higher than the prior year, with both Casa Berardi and Greens Creek delivering higher gold production than the prior year.

Silver payable ounces sold of 15.2 million ounces, approximately 5% higher than the prior year.

Gold payable ounces sold of 139 thousand ounces, approximately 5% higher than the prior year.

Concentrate volumes produced and sold proved relatively unchanged on an annual basis. Shipment of a precious metals concentrate at Greens Creek was delayed to January 2026 and contributed to the inventory build at year end. Due to the elevated precious metal prices at year end, the balance of accounts receivable rose by nearly $143 million. This increase is solely tied to the increase in metal value of concentrate receivables as of December 31, 2025, with the majority of these funds collected in January and February 2026.

Consolidated silver total cost of sales was $556 million, an increase of $68 million (14%) over the prior year, primarily due to higher sales volumes sold. Depreciation, depletion and amortization expense increased $16 million for silver operations due primarily to higher sales volumes.

Silver cash costs and AISC per silver ounce, each after by-product credits, were ($1.75) and $11.28, respectively, lower versus the prior year, primarily due to higher ounces produced, $80 million higher by-product credits, mostly associated with Greens Creek, and $30 million lower treatment charges, partly offset by higher production costs, primarily at Lucky Friday, and higher general and administrative expense. Decrease in AISC year-over-year was partly offset by $29 million higher sustaining capital investment.^2,3

Gold total cost of sales for Casa Berardi decreased by nearly $17 million due primarily to a decrease in depreciation expense related to the underground mine. Gold sales volumes rose by nearly 4.6 thousand ounces due to higher production compared to the prior year.

Gold cash costs and AISC per gold ounce, each after by-product credits, were $1,851 and $2,029 respectively. Cash costs and AISC were higher compared to the prior year due to higher operating costs, with lower sustaining capital partly offsetting the rise in AISC.^2,3

DIVIDENDS

Pursuant to the Company's dividend policy, the Board of Directors declared a quarterly cash dividend of $0.00375 per share of common stock payable on or about March 24, 2026, to stockholders of record on March 9, 2026.

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 April 1, 2026, to preferred stockholders of record on March 16, 2026.

2026 GUIDANCE ^2,3

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. 2026 guidance was previously disclosed in a production and cost guidance release dated January 26, 2026. All guidance items related to the silver mines (Greens Creek, Lucky Friday and Keno Hill) remain unchanged. Gold production guidance is changed for Casa Berardi, along with gold total cost of sales, cash costs and AISC per ounce (after by-product credits)^3,4 to reflect the sale currently expected to close in the first quarter 2026. Capital expenditure guidance and projected consolidated exploration and pre-development investment have been updated to reflect the planned sale of Casa Berardi.

2026 Production Outlook

Consolidated silver production is expected to be 15.1 - 16.5 million ounces.

Consolidated gold production is expected to be 65.0-72.0 thousand ounces, including 14.0-17.0 thousand ounces in the first quarter from Casa Berardi.

2026 Cost Guidance

Total silver cash cost and AISC guidance per silver ounce (after by-product credits) is at ($1.50)-($1.25)/oz and $15.00-$16.25/oz respectively.^2,3 This guidance only incorporates Greens Creek and Lucky Friday, as Keno Hill does not meet our definition of commercial production with one of five criteria currently achieved (see page 67 in our 10-K filing for further details).

Casa Berardi guidance for total cost of sales (includes depreciation) is revised down to $49 million with the announced sale of Casa Berardi currently expected to close in the first quarter 2026. Cash cost and AISC (both after by-product credits) per gold ounce is revised to $2,350-$2,850 and $2,775-$3,375 respectively.^2,3

Metal Prices and FX rate assumptions. Expectations for 2026 include gold $4,000/oz, silver $50.00/oz, zinc $1.30/lb, and lead 0.90$/lb, for by-product credit calculations. Numbers are rounded. Assumed exchange rate for Canadian dollar is 1.35 CAD/USD, unchanged from the prior year.

2026 Capital and Exploration Investment Guidance

Total capital (growth, sustaining and corporate) investment guidance is $216-$238 million for all four mines and corporate, with guidance for the three silver mines and corporate projects remaining unchanged at $204-$223 million from the January release.

• Greens Creek's capital investment is primarily attributable to mine development and the expansion of its tailings facility, which, when completed is expected to provide tailings storage capacity through 2045.
• Lucky Friday's capital investment is heavily tied to underground development, a new tailings facility and a surface cooling project, which is expected to be completed by mid-2026, and to increase the designed cooling capacity at the mine over its reserve mine-life of fifteen years.
• Expected capital investment at Keno Hill comprises mine development and infrastructure projects, including, a waste storage facility and water treatment plant.
• Casa Berardi's capital investment guidance is revised down to $12-$15 million to reflect planned spending in the first quarter up to the expected closing of its sale.

Exploration and pre-development investments are expected to nearly double from the prior year to $55 million (inclusive of the $2.1 million associated with Casa Berardi), with the focus at Greens Creek, Keno Hill, Lucky Friday and Nevada (Midas, Hollister and Aurora) with the budget nearly tripling from that of 2025 for this region.

CONFERENCE CALL AND WEBCAST

A conference call and webcast will be held on Wednesday, February 18, at 10:00 a.m. Eastern Time to discuss these results. The Company recommends 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 1-646-307-1963. 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/660148892 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⁾ Free cash flow is a non-GAAP measure calculated as cash provided by operating activities less capital investment. Cash provided by operating activities for the Greens Creek, Lucky Friday, Keno Hill, and Casa Berardi operations excludes exploration and pre-development investment, as it is a discretionary expenditure and not a component of the mines' operating performance. Capital investment refers to Additions to properties, plants and equipment from the Consolidated Statements of Cash Flows, net of finance leases.

⁽²⁾ 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.

⁽³⁾ 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.

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.

⁽⁴⁾ Adjusted EBITDA is a non-GAAP measurement, a reconciliation of which to net income, the most comparable GAAP measure, can be found at the end of the release. Adjusted EBITDA is a measure used by management to evaluate the Company's operating performance but should not be considered an alternative to net income, or cash provided by operating activities as those terms are defined by GAAP, and does not necessarily indicate whether cash flows will be sufficient to fund cash needs. In addition, the Company may use it when formulating performance goals and targets under its incentive program. Net debt to adjusted EBITDA is a non-GAAP measurement, a reconciliation of which to debt and net income, 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.

Cautionary Statement Regarding Forward Looking Statements, Including 2026 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) at Greens Creek, the dry stack tailings storage capacity expansion project is expected to provide storage capacity through 2045; (ii) at Lucky Friday, the surface cooling project is tracking for completion by mid-2026, and is to increase designed cooling capacity over reserve mine-life of fifteen years; (iii) at Keno Hill, the backfill plant construction was completed and is now being commissioned, and 2026 expected capital investment comprises mine development and infrastructure projects, including, a waste storage facility and water treatment plant; (iv) at Casa Berardi, 2026 capital investment guidance is revised down to $12-$15 million to reflect planned spending in the first quarter up to the expected closing of its sale; (v) at Polaris Exploration Project, the receipt of Finding of No Significant Impact ("FONSI") and Decision Notice from the U.S. Forest Service ("USFS"), clearing the way for exploration activities to commence in 2026; (vi) at Corporate level, we plan to invest more in corporate projects in 2026 geared toward improving business planning and operations initiatives; (vii) Company-wide and mine-specific estimated spending on capital, exploration and predevelopment for 2026; (viii) Company-wide and mine-specific estimated silver, gold, silver-equivalent and gold-equivalent ounces of production for 2026; (ix) metals prices and foreign exchange rate assumptions; (x) the sale of Casa Berardi is expected to close in the first quarter; and (xi) the Company is now well positioned to invest in value surfacing initiatives focused on its project pipeline.

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 2025 Form 10-Q filed on May 1, 2025, Form 10-Q filed on August 6, 2025, Form 10-Q filed on November 5, 2025, and 2025 Form 10-K expected to be filed on February 17, 2026 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. The Company reports 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 the Company is 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.

Non-GAAP Measures

(Unaudited)

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

The tables below present reconciliations between the most comparable GAAP measure of total cost of sales to the non-GAAP measures of (i) Cash Cost, Before By-product Credits, (ii) Cash Cost, After By-product Credits, (iii) AISC, Before By-product Credits and (iv) AISC, After By-product Credits for our operations and for the Company for the three months and years ended December 31, 2025 and 2024, and the three months ended September 30, 2025, June 30, 2025, and March 31, 2025 and an estimate for our silver operations for the twelve months ended December 31, 2026, and gold operation for the three months ended March 31, 2026.

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 the Company reports 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 the Company utilizes to measure each mine's operating performance. The Company uses 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 the Company reports, 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. The Company also uses 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. The Company has 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.