GoldHaven Resources Corp. press release

Hecla Reports Second Quarter 2026 Results

2026-08-04

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Cash Flow from Continuing Operations up 61% Year-Over-Year to $175 million; Free Cash Flow 1 More Than Doubles Year-Over-Year to $136 million; Strongest balance sheet in Company's history; Lucky Friday sets new production record

Hecla Mining Company ( NYSE:HL ) ("Hecla", or the "Company") today announced second quarter 2026 financial and operating results. "Prior quarter" refers to the first quarter of 2026. Prior period financial information has been recast to reflect Casa Berardi as a discontinued operation.

SECOND QUARTER 2026 HIGHLIGHTS

Financial Performance:

Revenue: $334 million, an expected pullback from a record prior quarter, primarily reflecting lower realized silver and gold prices, in line with the trend of lower market prices during the quarter. Consolidated silver and gold production was higher than the prior quarter; the softer sales volumes reflect the timing of shipments, mainly at Greens Creek. Profitability: Income from continuing operations of $118 million or $0.18 per share - down from $165 million or $0.25 per share in the prior quarter. Adjusted EBITDA: $199 million from continuing operations, a 25% decrease over the prior quarter but more than double the $93 million recorded in the second quarter of 2025 (both periods on a continuing operations basis, excluding Casa Berardi). 4 Continued strong cash flow generation: $175 million cash generated from continuing operations, and second best quarterly free cash flow from continuing operations of $136 million, with all producing assets contributing and Greens Creek and Lucky Friday setting new quarterly site-level free cash flow records. 1 Building balance sheet strength: Cash position of $483 million underscores continued balance sheet strengthening and strategic flexibility. With the redemption of the remaining $263 million in 7.25% Senior Notes ("Senior Notes"), the Company ends the second quarter debt free (excluding financial leases) and backed by a fully undrawn $225 million revolving credit facility, with $3.5 million of availability utilized for outstanding letters of credit, plus a $75 million undrawn accordion option, representing the strongest balance sheet position in the Company's history.

Operational Performance:

Operations: Silver production from continuing operations of 4.2 million ounces, up 8% from the prior quarter. Consolidated costs applicable to sales from continuing operations of $117 million, down 6% from the prior quarter. Silver cash cost of ($8.10) per ounce and AISC of $6.07 per ounce (both after by-product credits and excluding Keno Hill, which has not yet achieved commercial production). 2,3,5 Safety: Consolidated TRIFR of 1.57, down from 2.07 in the prior quarter. Production and cost guidance: Consolidated silver production is expected to be 15.1-16.1 million ounces revised from 15.1-16.5 million ounces, with lower Keno outlook partly offset by improved outlooks for Greens Creek and Lucky Friday. Consolidated silver cash cost and AISC guidance lowered on outperformance in 1H26 compared to plan. 2,3 See Guidance section for more details.

Individual Mine Performance: Greens Creek: Produced nearly 2.1 million ounces of silver and over 14 thousand ounces of gold. Costs applicable to sales of $50 million, with silver cash cost of ($17.11) per ounce and AISC of ($10.71) per ounce (both after by-product credits). 2,3,5 Lucky Friday: Record silver production of 1.5 million ounces. Costs applicable to sales of $35 million, with silver cash cost of $3.95 per ounce and AISC of $17.08 per ounce (both after by-product credits). 2,3,5 The surface cooling project is 88% complete and remains on track for completion in September. Keno Hill: Produced 0.6 million ounces of silver in the second quarter after working through a lower-grade zone. Subsequent to quarter end, the Company received authorization for construction of the Phase 2 West extension of its dry stack tailings facility. Growth pipeline: Preliminary work on the Greens Creek pyrite concentrate circuit points to potential for incremental annual production of approximately 1.0 to 1.2 million ounces of silver and 10,000 to 15,000 ounces of gold once fully ramped up. Separately, the Greens Creek dry-stack tailings facility currently holds an estimated 51 million ounces of silver and 600 thousand ounces of gold. In Nevada, 2026 exploration investment guidance of $16 million is more than three times the 2025 level with expanded programs at Midas and new programs at Hollister and Aurora. See "Project Pipeline Update" section below for further details. Exploration: As previously announced on July 29, 2026, drilling extended the high-grade Bermingham Deep trend at Keno Hill toward the historic Hector-Calumet Mine - a past-producer of approximately 96 million ounces of silver - now traceable over 800 feet of strike length. Separately, new high-grade vein discoveries were made at Midas in Nevada.

Rob Krcmarov, President and Chief Executive Officer, said: “Our second quarter results reflect the strength of the platform we have built. We ended the quarter with the strongest balance sheet in the Company's history, and Lucky Friday delivered record quarterly silver production, underscoring the quality of our silver portfolio. I'm also encouraged by our strong safety performance across the operations, which remains a foundation of everything we do. At the same time, our organic project pipeline continues to advance, demonstrating real potential for meaningful value creation and further solidify Hecla's position as North America's premier silver producer."

FINANCIAL AND OPERATIONAL OVERVIEW

In the following table and throughout this release, "costs applicable to sales" is exclusive of depreciation, depletion and amortization; "prior quarter" refers to the first quarter of 2026. All information in the table below is presented on a continuing operations basis.

| In thousands (except per ounce amounts) | 2Q-2026 | 1Q-2026 | 4Q-2025 | 3Q-2025 | 2Q-2025 | YTD-2026 | YTD-2025 | | Financial Highlights | | | | | | | | | Sales | $333,851 | $411,433 | $363,578 | $315,998 | $218,992 | $745,284 | $424,326 | | Costs applicable to sales (5) | $117,283 | $124,410 | $122,150 | $135,926 | $102,399 | $241,693 | $209,237 | | Depreciation, depletion and amortization | $36,772 | $33,768 | $27,927 | $37,728 | $31,313 | $70,540 | $61,129 | | Income and mining tax provision | $18,767 | $50,900 | $21,667 | $40,280 | $22,110 | $69,667 | $37,748 | | Income from continuing operations | $117,876 | $164,653 | $112,742 | $80,113 | $26,910 | $282,529 | $51,249 | | Basic income per common share (in dollars) from continuing operations | $0.18 | $0.25 | $0.17 | $0.12 | $0.04 | $0.42 | $0.08 | | Adjusted EBITDA from continuing operations (4) | $199,179 | $265,104 | $201,654 | $146,441 | $92,550 | $464,283 | $169,819 | | Cash provided by operating activities from continuing operations | $174,919 | $182,922 | $165,742 | $101,409 | $108,407 | $357,841 | $136,031 | | Capital investment in continuing operations | $(39,142) | $(39,265) | $(65,936) | $(44,425) | $(42,676) | $(78,407) | $(80,514) | | Free cash flow from continuing operations (1) | $135,777 | $143,657 | $99,806 | $56,984 | $65,731 | $279,434 | $55,517 | | | | | | | | | | | Free cash flow 1 by operation | | | | | | | | | Greens Creek | | | | | | | | | Cash flow from operations | $139,181 | $131,368 | $101,902 | $83,408 | $75,371 | $270,549 | $119,229 | | Exploration | $2,588 | $276 | $743 | $3,228 | $2,049 | $2,864 | $2,393 | | Capital investment | $(12,070) | $(6,113) | $(23,282) | $(12,179) | $(8,397) | $(18,183) | $(19,156) | | Free cash flow (1) | $129,699 | $125,531 | $79,363 | $74,457 | $69,023 | $255,230 | $102,466 | | Lucky Friday | | | | | | | | | Cash flow from operations | $103,606 | $64,619 | $56,869 | $29,279 | $20,650 | $168,225 | $44,454 | | Exploration | $638 | $991 | $885 | $1,054 | $169 | $1,629 | $169 | | Capital investment | $(16,681) | $(17,018) | $(24,680) | $(16,865) | $(15,942) | $(33,699) | $(31,388) | | Free cash flow (1) | $87,563 | $48,592 | $33,074 | $13,468 | $4,877 | $136,155 | $13,235 | | Keno Hill | | | | | | | | | Cash flow from operations | $17,932 | $29,570 | $33,028 | $22,109 | $16,445 | $47,502 | $6,784 | | Exploration | $3,854 | $1,356 | $365 | $975 | $3,344 | $5,210 | $5,036 | | Capital investment | $(7,236) | $(15,025) | $(15,964) | $(14,747) | $(17,045) | $(22,261) | $(27,481) | | Free cash flow (1) | $14,550 | $15,901 | $17,429 | $8,337 | $2,744 | $30,451 | $(15,661) | | | | | | | | | | | Metals Prices | | | | | | | | | Average metal prices | | | | | | | | | Silver - London PM Fix, $/ounce | $73.44 | $84.39 | $54.83 | $39.38 | $33.63 | $78.92 | $32.77 | | Gold - London PM Fix, $/ounce | $4,517 | $4,875 | $4,142 | $3,456 | $3,279 | $4,696 | $3,071 | | Lead - LME Final Cash Buyer, $/pound | $0.89 | $0.88 | $0.89 | $0.89 | $0.88 | $0.88 | $0.89 | | Zinc - LME Final Cash Buyer, $/pound | $1.57 | $1.47 | $1.44 | $1.28 | $1.20 | $1.52 | $1.24 | | Realized Prices | | | | | | | | | Silver, $/ounce | $63.06 | $82.70 | $69.28 | $42.58 | $34.82 | $73.14 | $34.20 | | Gold, $/ounce | $4,256 | $4,899 | $4,210 | $3,509 | $3,314 | $4,620 | $3,148 | | Lead, $/pound | $0.97 | $0.98 | $0.97 | $0.93 | $0.92 | $0.97 | $0.92 | | Zinc, $/pound | $1.63 | $1.41 | $1.45 | $1.48 | $1.31 | $1.51 | $1.31 |

SECOND QUARTER RESULTS

Sales of $334 million decreased 19% compared to the prior quarter, primarily reflecting lower realized precious metals prices, due largely to timing of sales, a declining price environment and lower precious metals sales volumes. Payable silver sold was roughly 5% lower compared to the prior quarter, primarily driven by the timing of sales at Greens Creek.

Income from continuing operations was $118 million, or $0.18 per share compared to the record $165 million in the prior quarter (in each case from continuing operations, excluding Casa Berardi). The decline was primarily related to:

A 19% decrease in revenue from continuing operations for the items noted above A $7 million increase in exploration and pre-development expense, primarily related to the seasonal increase in exploration activities across the portfolio A $3 million increase in depreciation expense due primarily to higher production and sales volumes at Lucky Friday and Keno Hill

Partly offset by:

A $32 million decrease in tax expense primarily related to lower profitability compared to the prior quarter and tax planning strategies allowing for consolidation of tax groups A $7 million decrease in costs applicable to sales primarily related to lower consolidated volumes of silver sold 5 A $3 million decrease in interest expense primarily related to the repayment of the Senior Notes

Adjusted EBITDA from continuing operations was $199 million, down 25% from the prior quarter (in each period, excluding Casa Berardi), primarily reflecting the decrease in revenue, partly offset by lower costs applicable to sales. 4,5

Cash and cash equivalents at June 30, 2026, of $483 million, with no draws on the revolving credit facility, with $3.5 million of availability utilized for outstanding letters of credit.

Cash provided by operating activities from continuing operations was $175 million, down 4% from the prior quarter, primarily due to lower realized metal prices for silver, gold and lead, and lower volumes of payable silver and gold ounces sold, partly offset by a higher realized zinc price (in each period, excluding Casa Berardi). Cash provided by operating activities was positively impacted by a $63 million decrease in accounts receivable, driven by timing of concentrate shipments, the collection of receivables and lower metal prices reducing the value of concentrate receivables as of June 30, 2026.

Capital investment in continuing operations was $39 million, nearly unchanged from the prior quarter (in each period, excluding Casa Berardi). Capital investment is expected to increase in the third quarter and remain elevated in the fourth quarter, as projects across the portfolio advance through the warmer-weather construction season and into the fall. The Company continues to invest in 2026 corporate initiatives to strengthen planning discipline and operational efficiency.

Free cash flow from continuing operations was $136 million, compared to a record $144 million in the prior quarter, with the 5% decrease primarily due to lower cash flow from operations (in each period, excluding Casa Berardi). 1 Greens Creek and Lucky Friday set new quarterly site-level free cash flow records of $130 million and $88 million, respectively. 1

| In thousands (except per ounce amounts) | 2Q-2026 | 1Q-2026 | 4Q-2025 | 3Q-2025 | 2Q-2025 | YTD-2026 | YTD-2025 | | Operational Highlights | | | | | | | | | Milled tons (tons) | | | | | | | | | Greens Creek | 217,433 | 208,922 | 200,952 | 227,587 | 230,221 | 426,355 | 443,120 | | Lucky Friday | 101,978 | 108,608 | 98,499 | 105,329 | 114,475 | 210,586 | 223,220 | | Keno Hill | 33,504 | 24,274 | 24,417 | 29,740 | 26,771 | 57,778 | 54,182 | | Milled silver grade - (opt) | | | | | | | | | Greens Creek | 12.0 | 13.0 | 12.2 | 13.1 | 13.4 | 12.5 | 12.6 | | Lucky Friday | 15.6 | 11.9 | 13.4 | 13.4 | 12.5 | 13.7 | 12.7 | | Keno Hill | 19.3 | 20.8 | 25.4 | 31.8 | 28.9 | 19.9 | 29.0 | | Silver production | | | | | | | | | Greens Creek, ounces | 2,051,022 | 2,177,142 | 1,951,784 | 2,347,674 | 2,422,978 | 4,228,164 | 4,425,538 | | Lucky Friday, ounces | 1,532,569 | 1,237,288 | 1,250,204 | 1,337,353 | 1,340,877 | 2,769,857 | 2,673,129 | | Keno Hill, ounces | 625,236 | 488,719 | 597,020 | 898,328 | 750,712 | 1,113,955 | 1,523,142 | | Total, ounces | 4,208,827 | 3,903,149 | 3,799,008 | 4,583,355 | 4,514,567 | 8,111,976 | 8,621,809 | | Gold production | | | | | | | | | Greens Creek, ounces | 14,199 | 12,886 | 12,256 | 15,584 | 17,750 | 27,085 | 31,509 | | Silver payable ounces sold | 3,392,314 | 3,575,018 | 3,732,076 | 4,463,356 | 3,517,713 | 6,967,332 | 7,030,462 | | Gold payable ounces sold | 10,151 | 11,533 | 10,484 | 14,277 | 11,634 | 21,684 | 22,112 | | Concentrate volumes produced and sold | | | | | | | | | Greens Creek | | | | | | | | | Silver concentrate produced, tons | 17,630 | 16,321 | 14,896 | 17,180 | 17,985 | 33,951 | 33,526 | | Silver concentrate sold, tons | 12,601 | 16,295 | 17,333 | 18,954 | 13,789 | 28,896 | 29,285 | | Zinc concentrate produced, tons | 17,990 | 18,474 | 17,485 | 18,548 | 20,936 | 36,464 | 39,164 | | Zinc concentrate sold, tons | 17,796 | 18,467 | 18,918 | 20,065 | 17,987 | 36,263 | 36,371 | | Precious metal concentrate produced, tons | 7,633 | 8,063 | 5,571 | 6,379 | 8,316 | 15,696 | 15,831 | | Precious metal concentrate sold, tons | 8,394 | 15,603 | — | 8,743 | 8,061 | 23,997 | 16,391 | | Lucky Friday | | | | | | | | | Silver concentrate produced, tons | 15,452 | 12,635 | 12,283 | 13,796 | 13,212 | 28,087 | 26,146 | | Silver concentrate sold, tons | 15,538 | 12,382 | 12,590 | 13,726 | 12,992 | 27,920 | 26,216 | | Zinc concentrate produced, tons | 6,527 | 6,352 | 6,269 | 6,869 | 6,940 | 12,879 | 13,617 | | Zinc concentrate sold, tons | 6,478 | 6,185 | 7,220 | 6,178 | 6,756 | 12,663 | 14,242 | | Keno Hill | | | | | | | | | Silver concentrate produced, tons | 1,288 | 901 | 1,165 | 2,056 | 1,688 | 2,189 | 3,453 | | Silver concentrate sold, tons | 1,063 | 806 | 2,380 | 2,380 | 1,614 | 1,869 | 2,831 | | Precious metals concentrate produced, tons | 999 | 783 | 815 | 1,398 | 907 | 1,782 | 1,692 | | Precious metals concentrate sold, tons (a) | 897 | 798 | 1,023 | 1,258 | 925 | 1,695 | 1,548 | | Total Silver Cash Costs and AISC, each after by-product credits | | | | | | | | | Silver cash costs per ounce (2) | $(8.10) | $(3.24) | $(0.23) | $(2.03) | $(5.46) | $(5.73) | $(2.29) | | Silver AISC per ounce (3) | $6.07 | $8.17 | $18.11 | $11.01 | $5.19 | $7.10 | $8.35 | | Greens Creek Cash Costs and AISC, each after by-product credits | | | | | | | | | Silver cash costs per ounce (2) | $(17.11) | $(11.94) | $(6.67) | $(8.50) | $(11.91) | $(14.45) | $(8.37) | | Silver AISC per ounce (3) | $(10.71) | $(8.39) | $2.70 | $(2.55) | $(8.19) | $(9.52) | $(4.50) | | Lucky Friday Cash Costs and AISC, each after by-product credits | | | | | | | | | Silver cash costs per ounce (2) | $3.95 | $12.07 | $9.82 | $9.33 | $6.19 | $7.58 | $7.77 | | Silver AISC per ounce (3) | $17.08 | $23.78 | $25.73 | $23.30 | $19.07 | $20.07 | $19.57 | | (a) Precious metals concentrates include intersegment sales to Greens Creek. | | | | | | | |

Consolidated silver production from continuing operations was 4.2 million ounces, up 8% from the prior quarter. The increase was driven by Lucky Friday's new quarterly record of 1.5 million ounces, benefiting from a 31% higher milled grade, a level consistent with plan, but not expected to be sustained, partly offset by 6% lower tons milled. Production also increased 28% at Keno Hill, as milling rates rose 38%, partly offset by 7% lower milled grade.

Gold production from Greens Creek was 14 thousand ounces, up 10% from the prior quarter due to 4% higher mill throughput and a higher grade milled.

Silver payable ounces sold of 3.4 million ounces, down 5% from the prior quarter, primarily due to lower payable ounces sold at Greens Creek and Keno Hill, partly offset by higher sales at Lucky Friday.

Gold payable ounces sold of 10 thousand ounces, down 12% from the prior quarter due to the timing of sales at Greens Creek.

Concentrate volumes produced and sold were higher at Lucky Friday and Keno Hill compared to the prior quarter. At Greens Creek, concentrate production was higher for one of the three concentrates produced, while concentrate sales were lower across all three, reflecting a lag between production and shipment: zinc and precious metals concentrate sales roughly matched production, while silver concentrate shipments lagged production, resulting in a build-up of silver concentrate inventory at quarter end that was shipped in early August. Concentrates sales at Lucky Friday were broadly in line with production in the second quarter. At Keno Hill, silver and zinc concentrate sales were below production volumes due to timing of sales, despite overall concentrate production and sales being higher than the prior quarter.

Consolidated silver costs applicable to sales (excludes depreciation) from continuing operations improved 6% over the prior quarter to $117 million, primarily due to lower volumes of silver sold. 5

Silver cash costs and AISC per silver ounce from continuing operations, each after by-product credits and excluding Keno Hill , which has not yet achieved commercial production, were ($8.10) and $6.07, respectively, lower than the prior quarter, primarily due to higher ounces produced and $6 million higher by-product credits, mostly associated with higher volumes, partly offset by $2 million higher treatment charges. The decrease in AISC compared to the prior quarter reflects these same cash cost drivers, along with $1 million lower general and administrative expense, offset by $11 million higher sustaining capital investment, split roughly evenly between Lucky Friday and Greens Creek. 2,3

GUIDANCE

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. Silver production guidance is increased for Greens Creek, tightened up for Lucky Friday, and reduced for Keno Hill. There is no change to Greens Creek gold production guidance. Total silver cash costs and AISC per ounce (after by-product credits) 3,4 guidance is lowered on better than planned 1H26 results, and the lower end of total capital investment guidance is raised by about 2%.

2026 Production Outlook

Consolidated silver production is expected to be 15.1-16.1 million ounces, a lower upper end compared to prior guidance.

Greens Creek's silver production is expected to be 8.0-8.3 million ounces, raised up from the prior guidance of 7.5-8.1 million ounces. Lucky Friday's silver production is expected to be 4.9-5.2 million ounces, tightened up from the prior 4.7-5.2 million ounces. Keno Hill's silver production is expected to be 2.2-2.6 million ounces, lowered from the prior 2.9-3.2 million ounces. The Company's plan at Keno Hill is to run the operation at a sustained, more modest rate, while permitting and infrastructure build-out is prioritized, as previously disclosed.