B2Gold Corp. press release

Hecla Reports Third Quarter 2025 Results

2025-11-05

TSX - Toronto Stock Exchange · Gold · Canada · Corporate Finance

Cash Flow from Operations $148 million, Free Cash Flow $90 million, numerous records achieved; deleveraging continues with revolver fully repaid; tightening up silver and gold production and reiterating consolidated silver and gold cash cost and AISC guidance

Hecla Mining Company ( NYSE:HL ) ("Hecla", "we", "our" or the "Company") today announced third quarter 2025 financial and operating results. "Prior quarter" refers to the second quarter of 2025.

THIRD QUARTER HIGHLIGHTS

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Financial Performance and Capital Execution:

Record quarterly revenue: $409.5 million, representing a 35% increase over prior quarter. Strong profitability - record net income: Net income applicable to common stockholders of $100.6 million, or $0.15 per share; $198.7 million during the last 12 months. Record Adjusted EBITDA: $195.7 million during the quarter, $505.5 million during the last 12 months. 5 Substantial deleveraging: Net leverage ratio* decreased to 0.3x from 0.7x in prior quarter, revolving credit facility fully repaid. Building balance sheet strength: Cash balance of $133.9 million at quarter end, providing strategic flexibility. Continued strong cash flow generation: $148 million cash generated from operations, with $90.1 million in free cash flow. 2

Operational Performance:

Silver Operations - Production and Costs: 4.6 million ounces of silver produced (2% higher than prior quarter). Year-to-date production exceeding plan, driving the production guidance revision. Total cost of sales of $157.5 million, with silver cash cost of ($2.03) per ounce and AISC of $11.01 per ounce (both after by-product credits). 3,4

Gold Operations - Production and Costs: Casa Berardi and Greens Creek delivered continued robust gold production, supporting the guidance revision for consolidated gold production. Casa Berardi total cost of sales of $55.4 million, with gold cash cost of $1,582 per ounce and AISC of $1,746 per ounce (both after by-product credits). 3,4

Individual Mine Performance: Greens Creek: Continued gold production outperformance driven by higher grades. Keno Hill: Delivered third consecutive quarter of profitability under Hecla ownership; Yukon Energy Corporation completed Aishihik hydroelectric plant repairs, improving power supply reliability to the operation. Lucky Friday: Production consistent with prior quarter record while continuing construction of the surface cooling project (a key infrastructure project required to increase the cooling capacity for the mine over the reserve life). The project is 66% complete and tracking for completion in the first half of 2026. Casa Berardi: At current gold prices, underground operations are expected to remain in production to capitalize on available margins. The 160 Pit stripping ratio is declining and the third-party surface contractor is demobilizing.

Permitting: Greens Creek: In August, Greens Creek received authorization from the U.S. Army Corps of Engineers for wetland impacts associated with future expansion activities of dry stack tailings, pending renewal of the waste management permit. Construction is scheduled to begin in the fourth quarter, with full construction anticipated to commence in 2026. Libby Exploration Project Advancement Subsequent to Quarter End: In early October the U.S. Forest Service issued final decision of notice and finding of no significant impact for 100% owned Libby Exploration Project.

*Net leverage ratio, a non-GAAP metric, is calculated as current debt plus long-term debt plus finance leases minus cash divided by trailing twelve-month adjusted EBITDA.

Rob Krcmarov, President and Chief Executive Officer, said, "Our third quarter results represent a defining moment for Hecla, with record-breaking performance across a number of key financial metrics. We achieved quarterly revenues of $410 million, net income of $101 million, and Adjusted EBITDA of $196 million, all records in the Company's 134 year history.

Perhaps our most significant accomplishment is our substantial balance sheet transformation - our net leverage ratio has decreased to just 0.3x, the revolving credit facility is fully repaid, we repaid the Investissement Quebec notes and our cash and cash equivalents position has grown to $134 million. During the quarter we achieved $90 million in free cash flow which is a genuine inflection point in our financial flexibility, strengthening our financial position.

Operationally, all four producing assets contributed to positive free cash flow for the second consecutive quarter. Greens Creek continues to exceed expectations, Keno Hill has delivered three consecutive quarters of profitability under our ownership, Lucky Friday maintained consistent production while advancing the surface cooling project, and Casa Berardi’s cost trajectory is improving. This validates both the quality of our asset base and the skill of our operating teams.

We continue to make significant progress on our strategic priorities including operational excellence, balance sheet strength, and value creation for shareholders, which has led to these results."

FINANCIAL AND OPERATIONAL OVERVIEW

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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 second quarter of 2025.

| In Thousands unless stated otherwise | | 3Q-2025 | | | 2Q-2025 | | | 1Q-2025 | | | 4Q-2024 | | | 3Q-2024 | | | YTD-2025 | | YTD-2024 | | | | | | | | | | Financial Highlights | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Sales | | $ | 409,542 | | | $ | 304,027 | | | $ | 261,339 | | | $ | 249,655 | | | $ | 245,085 | | | $ | 974,908 | | $ | 680,270 | | | Total cost of sales | | $ | 229,075 | | | $ | 184,503 | | | $ | 187,335 | | | $ | 181,321 | | | $ | 185,799 | | | $ | 600,913 | | $ | 550,394 | | | Gross profit | | $ | 180,467 | | | $ | 119,524 | | | $ | 74,004 | | | $ | 68,334 | | | $ | 59,286 | | | $ | 373,995 | | $ | 129,876 | | | Net income applicable to common stockholders | | $ | 100,588 | | | $ | 57,567 | | | $ | 28,734 | | | $ | 11,786 | | | $ | 1,623 | | | $ | 186,889 | | $ | 23,464 | | | Basic income per common share (in dollars) | | $ | 0.15 | | | $ | 0.09 | | | $ | 0.05 | | | $ | 0.02 | | | $ | 0.00 | | | $ | 0.29 | | $ | 0.04 | | | Adjusted EBITDA 5 | | $ | 195,695 | | | $ | 132,463 | | | $ | 90,788 | | | $ | 86,558 | | | $ | 88,859 | | | $ | 418,946 | | $ | 251,351 | | | Total Debt | | $ | 277,746 | | | $ | 564,722 | | | | | | | | | | | | | | $ | 539,804 | | | | | | | Net Debt to Adjusted EBITDA 5 | | | 0.3 | | | | 0.7 | | | | | | | | | | | | | | | 1.8 | | | | | | | Cash provided by operating activities | | $ | 148,049 | | | $ | 161,796 | | | $ | 35,738 | | | $ | 67,470 | | | $ | 55,009 | | | $ | 345,583 | | $ | 150,807 | | | Capital Investment | | $ | (57,905 | ) | | $ | (58,043 | ) | | $ | (54,095 | ) | | $ | (60,784 | ) | | $ | (55,699 | ) | | $ | (170,043 | ) | $ | (153,708 | ) | | Free Cash Flow 2 | | $ | 90,144 | | | $ | 103,753 | | | $ | (18,357 | ) | | $ | 6,686 | | | $ | (690 | ) | | $ | 175,540 | | $ | (2,901 | ) | | Production Summary | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Silver ounces produced | | | 4,590,276 | | | | 4,520,510 | | | | 4,112,394 | | | | 3,874,344 | | | | 3,645,004 | | | | 13,223,180 | | | 12,295,586 | | | Silver payable ounces sold | | | 4,463,356 | | | | 3,522,975 | | | | 3,517,970 | | | | 3,488,207 | | | | 3,729,782 | | | | 11,504,301 | | | 10,996,951 | | | Gold ounces produced | | | 40,654 | | | | 45,895 | | | | 34,232 | | | | 35,727 | | | | 32,280 | | | | 120,781 | | | 106,196 | | | Gold payable ounces sold | | | 41,038 | | | | 37,333 | | | | 29,655 | | | | 33,563 | | | | 31,414 | | | | 108,026 | | | 98,879 | | | Cash Costs and AISC, each after by-product credits | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Silver cash costs per ounce 3 | | $ | (2.03 | ) | | $ | (5.46 | ) | | $ | 1.29 | | | $ | (0.27 | ) | | $ | 4.46 | | | $ | (2.20 | ) | $ | 3.71 | | | Silver AISC per ounce 4 | | $ | 11.01 | | | $ | 5.19 | | | $ | 11.91 | | | $ | 11.51 | | | $ | 15.29 | | | $ | 9.26 | | $ | 13.57 | | | Gold cash costs per ounce 3 | | $ | 1,582 | | | $ | 1,578 | | | $ | 2,195 | | | $ | 1,936 | | | $ | 1,754 | | | $ | 1,750 | | $ | 1,707 | | | Gold AISC per ounce 4 | | $ | 1,746 | | | $ | 1,669 | | | $ | 2,303 | | | $ | 2,203 | | | $ | 2,059 | | | $ | 1,871 | | $ | 1,923 | | | Realized Prices | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Silver, $/ounce | | $ | 42.58 | | | $ | 34.82 | | | $ | 33.59 | | | $ | 30.19 | | | $ | 29.43 | | | $ | 37.45 | | $ | 28.07 | | | Gold, $/ounce | | $ | 3,509 | | | $ | 3,314 | | | $ | 2,940 | | | $ | 2,656 | | | $ | 2,522 | | | $ | 3,286 | | $ | 2,317 | | | Lead, $/pound | | $ | 0.93 | | | $ | 0.92 | | | $ | 0.92 | | | $ | 0.94 | | | $ | 0.93 | | | $ | 0.92 | | $ | 0.99 | | | Zinc, $/pound | | $ | 1.48 | | | $ | 1.31 | | | $ | 1.29 | | | $ | 1.53 | | | $ | 1.36 | | | $ | 1.37 | | $ | 1.32 | |

Sales increased to $409.5 million, 35% over the prior quarter, reflecting higher realized prices for all metals sold, and higher precious metals sales volumes, which were partially offset by lower lead and zinc sales volumes. Payable silver ounces sold were 27% higher compared to the prior quarter, with silver inventories declining and production up 2%. Payable gold ounces sold increased 10% compared to the prior quarter, primarily due to sales more closely matching production, with timing of sales at Greens Creek driving an increase in accounts receivable at quarter end which were settled in October.

Gross profit was $180.5 million, an increase of 51% over the prior quarter. The increase is attributable to (i) Greens Creek gross profit increasing by $33.3 million due to higher revenue driven by higher realized prices and higher concentrate sales volumes, partially offset by higher total costs of sales related to the higher volumes sold; (ii) Keno Hill gross profit increased by $16.1 million, due primarily to higher revenue driven by higher realized prices and concentrate volumes sold, partially offset by higher total costs of sales on higher volumes sold; and (iii) Lucky Friday gross profit increased $7.6 million, reflecting higher realized silver and zinc prices on 6% higher silver concentrate sales volumes over the prior quarter, offset by 9% lower zinc concentrate sold and 6% higher total costs of sales. Casa Berardi gross profit increased by $3.9 million reflecting the benefit of higher realized gold prices, offset by lower payable gold sales volumes and higher total cost of sales.

Net income applicable to common stockholders was $100.6 million, compared to $57.6 million in the prior quarter. The improvement was primarily related to:

A 35% increase in revenue due primarily to higher payable silver sold and higher realized precious metals and zinc prices. Positive fair value adjustments, net of $17.6 million, primarily due to an increase in the fair value of our marketable securities portfolio.

Partly offset by:

An increase in cost of sales of $33.1 million related to higher volumes of concentrate sold at Greens Creek and Keno Hill and, to a lesser extent, at Lucky Friday. An increase in depreciation expense of $11.5 million due to additional volumes sold. An increase in other operating expense of $4.5 million primarily due to a $2.7 million non-cash loss on disposal of one of the Company's non-strategic exploration properties. An increase in income and mining tax provision of $22.3 million, reflecting higher taxable income and higher Alaska Mining License Tax and Quebec Mining Duties.

Consolidated silver total cost of sales was $157.5 million, an increase of $30.4 million or 24% from the prior quarter, primarily due to higher sales volumes sold. Depreciation, depletion and amortization expense increased $6.4 million for silver operations due to higher sales volumes.

Silver Cash costs and AISC per silver ounce, each after by-product credits , were ($2.03) and $11.01, respectively, higher versus the prior quarter, primarily due to $4.0 million lower by-product credits, mostly associated with Greens Creek, higher production costs primarily at Lucky Friday, higher treatment charges, and 2% lower silver production at Greens Creek and Lucky Friday. Increase in AISC quarter-over-quarter, was driven by planned capital investment (increase of $6.6 million over the prior quarter) due to increased construction activity over the summer. 3,4

Gold total cost of sales for Casa Berardi increased by $4.6 million due to higher sales volumes. Gold ounce sales volumes rose by over 1,000 ounces from the prior quarter.

Gold cash costs and AISC per gold ounce, each after by-product credits , were $1,582 and $1,746 respectively. Cash costs were in line with the prior quarter, AISC increased 5% primarily due to increased sustaining capital spending. 3,4

Adjusted EBITDA was $195.7 million, a 48% increase over the prior quarter. The ratio of net debt to adjusted EBITDA (net leverage ratio) improved to 0.3x from 0.7x in the prior quarter due to strong EBITDA generation during the last 12 months, and a $124.3 million decrease in net debt. 5 Cash and cash equivalents at September 30, 2025, were $133.9 million and included no draw on the revolving credit facility. The Canadian dollar ("CAD") $50 million Investissement Quebec Notes were repaid in full upon maturity in July, the outstanding balance on the revolving credit facility was repaid in full, and $212 million of the 7.25% Senior Notes (the "Senior Notes") were redeemed in August.

Cash provided by operating activities was $148.0 million, nearly flat over the prior quarter, primarily attributable to unfavorable working capital changes of $37.8 million, including a $61.0 million increase in accounts receivable reflecting timing of sales at Greens Creek (majority of receivables for Greens Creek were settled in October), Lucky Friday and Keno Hill. Cash provided by operating activities was also impacted by a semi-annual interest payment on the Senior Notes. The above items were partly offset by a partial reversal in inventory realized in the prior quarter.

Capital investment was $57.9 million, flat compared to the prior quarter, with capital investment at Lucky Friday of $16.9 million, Keno Hill of $14.7 million, Greens Creek of $12.2 million and Casa Berardi of $13.5 million.

Free cash flow was $90.1 million, compared to $103.8 million in the prior quarter, with the decrease primarily due to lower cash flow from operations, reflecting negative working capital adjustments as noted above. 2

Financial Instruments for Base and Precious Metals and Foreign Currency

The Company uses financially settled forward sales contracts to manage exposure to zinc and lead price changes in forecasted concentrate shipments. On September 30, 2025, the Company had contracts covering approximately 33% and 55% of the forecasted payable zinc and lead production for 2025 - 2026 at an average price of $1.33 and $1.02 per pound, respectively.

In the third quarter of 2025, the Company also established price protection through the use of zero-cost collars for a portion of Keno Hill's forecasted silver production. The Company’s hedging strategy at Keno Hill is focused on cash flow risk management during the period of heavy investment and ramp-up of operations to the mill nameplate capacity of 440 tons per day. Financial instruments covering a total of 1.99 million ounces of silver production over the next three quarters have been entered into to secure an average price floor of $32.19 per silver ounce and an average price participation up to $49 per silver ounce. As of September 30, 2025, these silver financial instruments were in a net liability position of $5.7 million.

The Company has also entered into zero-cost collars for a portion of Casa Berardi’s forecast underground gold production. Our hedging strategy for Casa Berardi is focused on securing price protection for expected underground production with 4,000 ounces of gold secured at a price of $3,000 per gold ounce and price participation up to $4,840 per gold ounce over the first quarter of 2026.

The Company also manages CAD exposure through forward contracts. At September 30, 2025, the Company had hedged approximately 44% of forecasted Casa Berardi and Keno Hill CAD denominated direct production costs through 2026 at an average CAD/USD rate of 1.36. The Company has also hedged approximately 25% of Casa Berardi and Keno Hill CAD denominated total capital expenditures through 2026 at 1.39.

Please refer to the discussion of derivative instruments in the Company's Form 10-Q expected to be filed with the SEC on November 5, 2025.

OPERATIONS OVERVIEW

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Greens Creek Mine - Alaska

| Dollars are in thousands except cost per ton | | 3Q-2025 | | | 2Q-2025 | | | 1Q-2025 | | | 4Q-2024 | | | 3Q-2024 | | | 2Q-2024 | | | YTD-2025 | | | YTD-2024 | | | | | | | | | | | GREENS CREEK | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Operating Highlights | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Tons of ore processed | | | 227,587 | | | | 230,221 | | | | 212,899 | | | | 224,521 | | | | 212,863 | | | | 225,746 | | | | 670,707 | | | | 670,797 | | | Total production cost per ton | | $ | 246.93 | | | $ | 225.71 | | | $ | 240.00 | | | $ | 211.64 | | | $ | 222.39 | | | $ | 218.09 | | | $ | 237.44 | | | $ | 217.66 | | | Ore grade milled - Silver (oz./ton) | | | 13.1 | | | | 13.4 | | | | 11.8 | | | | 10.7 | | | | 11.2 | | | | 12.6 | | | | 12.8 | | | | 12.4 | | | Ore grade milled - Gold (oz./ton) | | | 0.092 | | | | 0.104 | | | | 0.090 | | | | 0.089 | | | | 0.081 | | | | 0.090 | | | | 0.094 | | | | 0.085 | | | Ore grade milled - Lead (%) | | | 2.5 | | | | 2.6 | | | | 2.6 | | | | 2.6 | | | | 2.4 | | | | 2.5 | | | | 2.6 | | | | 2.5 | | | Ore grade milled - Zinc (%) | | | 6.3 | | | | 6.9 | | | | 6.8 | | | | 6.6 | | | | 6.6 | | | | 6.2 | | | | 6.6 | | | | 6.4 | | | Ore grade milled - Copper (%) | | | 0.3 | | | | 0.3 | | | | 0.3 | | | | 0.3 | | | | 0.3 | | | | 0.3 | | | | 0.3 | | | | 0.3 | | | Silver produced (oz.) | | | 2,347,674 | | | | 2,422,978 | | | | 2,002,560 | | | | 1,901,418 | | | | 1,857,314 | | | | 2,243,551 | | | | 6,773,212 | | | | 6,579,459 | | | Gold produced (oz.) | | | 15,584 | | | | 17,750 | | | | 13,759 | | | | 14,804 | | | | 11,746 | | | | 14,137 | | | | 47,093 | | | | 40,471 | | | Lead produced (tons) | | | 4,751 | | | | 4,931 | | | | 4,496 | | | | 4,808 | | | | 4,165 | | | | 4,513 | | | | 14,178 | | | | 13,512 | | | Zinc produced (tons) | | | 12,747 | | | | 14,024 | | | | 12,835 | | | | 13,241 | | | | 12,585 | | | | 12,400 | | | | 39,606 | | | | 38,047 | | | Copper produced (tons) | | | 491 | | | | 499 | | | | 411 | | | | 427 | | | | 490 | | | | 462 | | | | 1,401 | | | | 1,447 | | | Silver concentrate produced (tons) | | | 17,180 | | | | 17,985 | | | | 15,541 | | | | 15,775 | | | | 14,706 | | | | 15,196 | | | | 50,706 | | | | 45,478 | | | Zinc concentrate produced (tons) | | | 18,548 | | | | 20,936 | | | | 18,228 | | | | 19,251 | | | | 18,954 | | | | 17,876 | | | | 57,712 | | | | 56,496 | | | Bulk concentrate produced (tons) | | | 6,379 | | | | 8,316 | | | | 7,515 | | | | 8,537 | | | | 5,869 | | | | 7,754 | | | | 22,210 | | | | 21,548 | | | Silver concentrate sold (tons) | | | 18,954 | | | | 13,789 | | | | 15,496 | | | | 16,061 | | | | 17,692 | | | | 12,025 | | | | 48,239 | | | | 45,390 | | | Zinc concentrate sold (tons) | | | 20,065 | | | | 17,987 | | | | 18,384 | | | | 19,464 | | | | 21,957 | | | | 14,807 | | | | 56,436 | | | | 56,327 | | | Bulk concentrate sold (tons) | | | 8,743 | | | | 8,061 | | | | 8,330 | | | | 10,975 | | | | 5,775 | | | | 7,859 | | | | 25,134 | | | | 23,434 | | | Financial Highlights | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Sales | | $ | 178,064 | | | $ | 122,002 | | | $ | 118,143 | | | $ | 112,037 | | | $ | 116,568 | | | $ | 95,659 | | | $ | 418,209 | | | $ | 309,537 | | | Total cost of sales | | $ | (81,658 | ) | | $ | (58,921 | ) | | $ | (69,638 | ) | | $ | (67,887 | ) | | $ | (73,597 | ) | | $ | (56,786 | ) | | $ | (210,217 | ) | | $ | (200,240 | ) | | Gross profit | | $ | 96,406 | | | $ | 63,081 | | | $ | 48,505 | | | $ | 44,150 | | | $ | 42,971 | | | $ | 38,873 | | | $ | 207,992 | | | $ | 109,297 | | | Cash flow from operations | | $ | 83,408 | | | $ | 75,371 | | | $ | 43,858 | | | $ | 60,442 | | | $ | 54,076 | | | $ | 43,276 | | | $ | 202,637 | | | $ | 126,058 | | | Exploration | | $ | 3,228 | | | $ | 2,049 | | | $ | 343 | | | $ | 1,129 | | | $ | 4,325 | | | $ | 2,011 | | | $ | 5,620 | | | $ | 6,887 | | | Capital additions | | $ | (12,179 | ) | | $ | (8,397 | ) | | $ | (10,759 | ) | | $ | (15,798 | ) | | $ | (11,466 | ) | | $ | (11,704 | ) | | $ | (31,335 | ) | | $ | (31,997 | ) | | Free cash flow 2 | | $ | 74,457 | | | $ | 69,023 | | | $ | 33,442 | | | $ | 45,773 | | | $ | 46,935 | | | $ | 33,583 | | | $ | 176,922 | | | $ | 100,948 | | | Cash Costs and AISC, each after by-product credits | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Cash cost per ounce, after by-product credits 3 | | $ | (8.50 | ) | | $ | (11.91 | ) | | $ | (4.08 | ) | | $ | (5.86 | ) | | $ | 0.93 | | | $ | 0.19 | | | $ | (8.41 | ) | | $ | 1.62 | | | AISC per ounce, after by-product credits 4 | | $ | (2.55 | ) | | $ | (8.19 | ) | | $ | (0.03 | ) | | $ | 2.62 | | | $ | 7.04 | | | $ | 5.40 | | | $ | (3.82 | ) | | $ | 6.53 | |