Hecla Mining Company (HL) investor relations material

Strategic transformation and focus

• Underwent significant transformation with new leadership, focusing on becoming North America's premier silver company and improving financial flexibility.

• Divested gold assets, notably the Casa Berardi mine, to concentrate on silver and strengthen the balance sheet.

• Maintains all assets in the U.S. and Canada, emphasizing low-risk jurisdictions and long reserve life, averaging over 13 years—double the industry average.

• Achieved strong cash flow, nearly breakeven net debt, and improved return on invested capital in 2025.

• Committed to cost excellence, remaining the lowest cost silver producer with high-grade assets.

Market outlook and industry trends

• Silver is driven by both monetary and industrial demand, with industrial uses providing a price floor and monetary factors driving upside in bull markets.

• Industrial demand for silver is growing, especially in electrification, solar, and EVs, with mine supply remaining tight and market deficits expected to persist.

• Global policy shifts are supporting domestic production in the U.S. and Canada, with streamlined permitting and financing initiatives aiding project advancement.

• Labor remains the largest cost component, with skilled trades in short supply, but asset longevity and location help with recruitment and retention.

Operational strategy and future initiatives

• Focused on advancing a robust project pipeline, particularly in Nevada, with the Midas project aiming for a restart in about five years, leveraging existing infrastructure.

• Continues to prioritize high-grade, low-cost operations and resists diluting reserves with lower-quality tons, even in high-price environments.

• M&A activity will target early-stage assets with upside potential rather than fully priced producing mines.

• Keno Hill mine is ramping up, and a tailings reprocessing project at Greens Creek is progressing, both expected to add value.

• Positioned to deliver shareholder returns and maintain resilience through commodity cycles due to strong balance sheet and disciplined capital allocation.