In this Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”), “Hecla,” “the Company,” “we,” “us”, and “our” refer to Hecla Mining Company and its consolidated subsidiaries, except where the context requires otherwise. You should read this discussion in conjunction with our consolidated financial statements, the related MD&A, and the discussion of our Business and Properties in our Annual Report on Form 10-K for the year ended December 31, 2025 ("2025 Form 10-K"), filed with the United States Securities and Exchange Commission (the “SEC”). The results of operations reported and summarized below are not necessarily indicative of future operating results (refer to “Forward-Looking Statements” above for further discussion). References to “Notes” are Notes included in our Notes to Condensed Consolidated Financial Statements (Unaudited). Throughout this MD&A, all references to income or losses per share are on a diluted basis. Overview Hecla Mining Company stands as North America's premier silver producer, with a rich heritage dating back to 1891. Our operations at Greens Creek, Lucky Friday, and Keno Hill combined to produce 37% of total 2025 silver production in the U.S. and Canada, complemented by significant gold production from Greens Creek. Our strategic positioning in the stable jurisdictions of the U.S. and Canada provides us with distinct operational advantages and reduced political risk compared to our global peers. Our operational and strategic framework centers on four core pillars: 1.Achieving operational excellence through standardized systems and continuous improvement 2.Optimizing our portfolio through strategic reviews and targeting highest risk-adjusted return projects 3.Intensifying our focus on financial discipline with a rigorous capital allocation framework 4.Leveraging our position as North America's largest silver producer to meet growing demand from green technology markets Recent Developments On March 25, 2026, we completed the sale of our Hecla Quebec Inc. ("Hecla Quebec") subsidiary which owns the Casa Berardi mine to Orezone Gold Corporation ("Orezone") for a fair value of $385.7 million ($601.7 million on an undiscounted basis) comprised of the following: •Cash of $170.0 million upon closing on March 25, 2026 •Accounts receivable related to working capital adjustments of $16.6 million •65,757,265 Orezone common shares valued at $106.1 million on closing •Deferred cash consideration ("Deferred Cash Consideration") with a fair value of $57.1 million for the cash payments of $30 million and $50 million to be received 18 months and 30 months after closing, respectively •Contingent cash consideration ("Contingent Cash Consideration") with a fair value of $35.9 million for a total of up to $241 million of undiscounted payments consisting of: oA fair value of $3.3 million for two annual gold-price related payments of $5 million each should the average gold price exceed $4,200/oz for the first and second years following closing oA fair value of $9.9 million for two contingent payments of $10 million each due upon issuance of certain permits to open pit mine two additional identified orebodies oA fair value of $22.7 million for certain future gold production-based royalty payments with an undiscounted value of up to $211 million ($80/ounce for the first 500,000 ounces, then $180/ounce thereafter from future open pit operations) Orezone has a set-off right to reduce the unpaid balance of the Deferred Cash Consideration payments by 50% of the amount by which the financial assurance required by the Quebec government under the updated Casa Berardi closure plan exceeds $150 million, excluding increases caused by Orezone's post-closing actions. The closure excess amount has been included in determining the fair value of the Deferred Cash Consideration. The sale of Hecla Quebec represents disciplined portfolio optimization and focuses capital allocation on our silver assets, which we believe to represent significant growth and value creation opportunities. We have solidified our revenue exposure to silver and we are focused on operating in what we view to be the most favorable jurisdictions. We used the cash proceeds from the transaction for debt reduction and balance sheet strengthening, enhancing our financial flexibility and capacity to invest in strategic growth investments. We determined that the sale of Hecla Quebec represents a strategic shift that has a major effect on our operations and financial results and therefore, beginning in the first quarterly report on Form 10-Q for the period ending March 31, 2026, the Casa Berardi operation is no longer a reportable segment and its financial results are reflected in the Company’s unaudited interim condensed consolidated financial statements as a discontinued operation for all periods presented. Unless otherwise specified, the discussion of financial results within this Item 2 MD&A will focus on our continuing operations, in relation to the respective comparative periods which have been recast to reflect the continuing operations of our business. Second Quarter 2026 Highlights 27 Operational Achievements: •Production - We produced 4.2 million ounces of silver, compared to 4.5 million ounces in the second quarter of 2025, primarily due to lower throughput and grades at Greens Creek. We produced 14,199 ounces of gold at Greens Creek, a decrease compared to 17,750 ounces produced in the second quarter of 2025, driven by lower throughput and grades. Financial Performance: •Revenue Generation - Generated sales of $333.9 million, a 52% increase over the second quarter of 2025. •Income from continuing operations and shareholder returns - Generated income from continuing operations of $117.9 million, compared to $26.9 million in the second quarter of 2025 and returned $2.5 million in dividends to common stockholders. •Investments in Continuing Operations - Made capital investments of $39.1 million, including $12.1 million at Greens Creek, $16.7 million at Lucky Friday and $7.2 million at Keno Hill. Year to date 2026 Highlights Operational Achievements: •Leading North American Silver Producer - Through the completion of the sale of Hecla Quebec, we have solidified our position as North America's premier silver producer. •Production - We produced 8.1 million ounces of silver, compared to 8.6 million ounces of silver in 2025, primarily due to lower grades at Keno Hill and throughput at Greens Creek, partly offset by higher grades at Lucky Friday. At Greens Creek, we produced 27,085 ounces of gold, a decrease compared to 31,509 ounces produced in 2025, driven by lower grade and throughput. Financial Performance: •Revenue Generation - Generated sales of $745.3 million, a 76% increase over 2025. •Income from continuing operations and shareholder returns - Generated income from continuing operations of $282.5 million, compared to $51.2 million in the 2025 period and returned $5.0 million in dividends to common stockholders. •Investments in Continuing Operations - Made capital investments of $78.4 million, including $18.2 million at Greens Creek, $33.7 million at Lucky Friday and $22.3 million at Keno Hill. Growth Pipeline We are evaluating several organic growth opportunities that may leverage existing infrastructure, operational expertise, and permitting frameworks. At Greens Creek, we are evaluating a proposed pyrite concentrate circuit that, if developed, could recover additional silver and gold that currently report to tailings. Preliminary engineering and metallurgical work indicates the potential for incremental future silver and gold production from this circuit, possibly as soon as late 2027 or the first half of 2028. These estimates are preliminary and remain subject to significant technical, economic, permitting, metallurgical, and other uncertainties, and the project has not been approved for construction. We are also evaluating the potential to reprocess all or part of the existing dry-stack tailings facility at Greens Creek. This project could recover additional silver and gold currently contained in tailings material, subject to further metallurgical testing and the identification of a suitable third-party processing arrangement. Lastly, we continue to evaluate the potential restart of our fully permitted Midas mill in northern Nevada. Any restart would depend on, among other things, our ability to expand the existing high-grade gold and silver resource to a scale sufficient to support a sustainable operation. Each of these opportunities remains in varying stages of engineering, metallurgical evaluation, permitting review, and economic analysis. The timing, scope, and ultimate development of these opportunities may influence future capital allocation decisions, exploration expenditures, and sustaining or growth capital requirements, and may require the receipt of additional permits, approvals, and other authorizations. We have not approved construction or development of any of these projects, and any decision to proceed would require further technical, economic, and regulatory review and approval by management and, where applicable, our Board of Directors. 28 There is no assurance that any of these opportunities will be developed, or that if developed, will be completed on the timeline or with the results currently anticipated. See Item 1A. "Risk Factors" in Part II of this report. External Factors that Impact our Results Our financial results vary as a result of fluctuations in market prices primarily for silver and, to a lesser extent, gold, zinc, lead, and copper. World market prices for these commodities have fluctuated historically and are affected by numerous factors beyond our control. To date, tariffs have not materially impacted our financial results. However, future tariffs or other global trade restraints could impact our performance. Historically our US operations have had significant sales into China and Canada, and each of those countries is or could be subject to tariffs, and each has or may retaliate in kind. Notwithstanding these recent developments, we believe that the outlook for precious metals fundamentals is favorable due to macro-economic factors such as geopolitical uncertainty and global growth expectations, which have resulted in significant volatility in the financial and commodities markets, including the precious metals market. See Item 1A. “Risk Factors” contained in Part I of our 2025 Form 10-K for further discussion. Because we cannot control the price of our products, except to the extent we have entered into hedging transactions, the key measures that management focuses on in operating our business are production volumes, payable sales volumes, Cash Cost, After By-product Credits, per Ounce (non-GAAP) and All-In Sustaining Cost, After By-product Credits, per Ounce (“AISC”) (non-GAAP), operating cash flows, capital investments, free cash flow (non-GAAP), and adjusted EBITDA (non-GAAP). The average realized prices for all metals sold by us continued to exhibit significant volatility during the period. We have also experienced significant cost inflation across our operations, principally associated with higher energy prices, increased costs for other consumables such as reagents, explosives, steel, and higher labor and contractor costs. Consolidated Results of Continuing Operations Total sales for the three and six months ended June 30, 2026 and 2025 were as follows: Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2026 2025 2026 2025 Silver $ 213,728 $ 122,475 $ 509,361 $ 240,452 Gold 43,205 38,872 100,182 70,231 Lead 24,364 21,476 46,661 43,582 Zinc 37,470 31,138 74,343 64,263 Copper 8 979 420 1,370 Less: Smelter and refining charges 4,247 (2,544 ) (1,164 ) (9,256 ) Total metal sales 323,022 212,396 729,803 410,642 Environmental remediation services 10,829 6,596 15,481 13,684 Total sales $ 333,851 $ 218,992 $ 745,284 $ 424,326 Environmental remediation services revenue is generated by performing remediation work in the historical Yukon Territory mining district on behalf of the Canadian government. The scope and estimated cost of all work is agreed to in advance by the Canadian government, and the expenses incurred are passed through to the government for reimbursement with minimal operating income generated by us in performing this work. Total metal sales for the three and six months ended June 30, 2026 and 2025, and the approximate variances attributed to differences in metals prices, sales volumes, and smelter terms, were as follows: (in thousands) Silver Gold Base metals Less: smelter and refining charges Total sales of products Three months ended June 30, 2025 $ 122,475 $ 38,872 $ 53,593 $ (2,544 ) $ 212,396 Variances - 2026 versus 2025: Price 95,748 8,849 8,278 — 112,875 Volume (4,495 ) (4,516 ) (29 ) — (9,040 ) Smelter terms — — — 6,791 6,791 Three months ended June 30, 2026 $ 213,728 $ 43,205 $ 61,842 $ 4,247 $ 323,022 29 (in thousands) Silver Gold Base metals Less: smelter and refining charges Total sales of products Six months ended June 30, 2025 $ 240,452 $ 70,231 $ 109,215 $ (9,256 ) $ 410,642 Variances - 2026 versus 2025: Price 271,335 31,309 11,961 — 314,605 Volume (2,426 ) (1,358 ) 248 — (3,536 ) Smelter terms — — — 8,092 8,092 Six months ended June 30, 2026 $ 509,361 $ 100,182 $ 121,424 $ (1,164 ) $ 729,803 The fluctuation in sales for the three and six months ended June 30, 2026 compared to the same periods in 2025 was primarily due to the following: •Higher average realized prices for all metals compared to the same period in 2025. The table below summarizes average spot prices and our average realized prices for the commodities we sell: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Silver – London PM Fix ($/ounce) $ 73.44 $ 33.63 $ 78.92 $ 32.77 Realized price per ounce $ 63.06 $ 34.82 $ 73.14 $ 34.20 Gold – London PM Fix ($/ounce) $ 4,517 $ 3,279 $ 4,696 $ 3,071 Realized price per ounce $ 4,256 $ 3,314 $ 4,620 $ 3,148 Lead – LME Final Cash Buyer ($/pound) $ 0.89 $ 0.88 $ 0.88 $ 0.89 Realized price per pound $ 0.97 $ 0.92 $ 0.97 $ 0.92 Zinc – LME Final Cash Buyer ($/pound) $ 1.57 $ 1.20 $ 1.52 $ 1.24 Realized price per pound $ 1.63 $ 1.31 $ 1.51 $ 1.31 Copper – LME Final Cash Buyer ($/pound) $ 6.05 $ 4.32 $ 5.94 $ 4.28 Realized price per pound $ 5.67 $ 4.56 $ 5.72 $ 4.52 Average realized prices typically differ from average market prices primarily because concentrate sales are generally recorded as revenues at the time of shipment at forward prices for the estimated month of settlement, which differ from average market prices. Due to the time elapsed between shipment of concentrates and final settlement with the customers, we must estimate the prices at which sales of our metals will be settled. Previously recorded sales are adjusted to estimated settlement metals prices each period through final settlement. We recorded net negative price adjustments to provisional settlements of $13.1 million and $6.2 million for the three and six months ended June 30, 2026, respectively, (three and six months ended June 30, 2025: $4.2 million and $11.1 million positive adjustments, respectively). The price adjustments related to silver, gold, zinc, lead, and copper contained in our concentrate shipments were partially offset by gains and losses on forward contracts and collars for those metals. See Note 8 of Notes to Condensed Consolidated Financial Statements (Unaudited) for more information. The gains and losses on these contracts are included in revenues and impact the realized prices for silver, gold, lead, and zinc. Realized prices are calculated by dividing gross revenues for each metal (which include the price adjustments and gains and losses on the metals derivative contracts discussed below) by the payable quantities of each metal included in concentrate, doré, and carbon material shipped during the period. •The positive effect of higher metal prices was partially offset by lower sales volumes of all metals from continuing operations, except lead, during the three and six month period ended June 30, 2026 compared to the comparable 2025 period. See The Greens Creek Segment, The Lucky Friday Segment, and The Keno Hill Segment sections below for more information on metal production and sales volumes at each of our operating segments. Total metals production and sales volumes for each period are shown in the following table: 30 Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Silver - Ounces produced 4,208,827 4,514,567 8,111,976 8,621,809 Payable ounces sold 3,392,314 3,517,713 6,967,332 7,030,462 Gold - Ounces produced 14,199 17,750 27,085 31,509 Payable ounces sold 10,151 11,634 21,684 22,112 Lead - Tons produced 15,291 14,650 28,384 28,657 Payable tons sold 12,594 11,663 23,994 23,653 Zinc - Tons produced 17,014 18,479 33,818 35,414 Payable tons sold 11,163 11,667 24,619 24,514 Copper Tons produced 403 499 865 910 Payable tons sold 1 108 37 152 The difference between what we report as “ounces/tons produced” and “payable ounces/tons sold” is attributable to the difference between the quantities of metals contained in the concentrates we produce versus the portion of those metals actually paid for by our customers according to the terms of our sales contracts. Differences can also arise from inventory changes incidental to shipping schedules, or variances in ore grades which impact the amount of metals contained in concentrates produced and sold. Sales, costs applicable to sales, depreciation, depletion and amortization, gross profit, Cash Cost, After By-product Credits, per Ounce (“Cash Cost”) (non-GAAP) and AISC (non-GAAP) at our operating segments for the three and six months ended June 30, 2026 and 2025 were as follows (in thousands, except for Cash Cost and AISC): Greens Creek Lucky Friday Keno Hill Total Silver (3) Other (4) Total Silver and Other Three Months Ended June 30, 2026 Sales $ 165,333 $ 123,221 $ 34,468 $ 323,022 $ 10,829 $ 333,851 Costs applicable to sales (1) (49,911 ) (34,970 ) (22,136 ) (107,017 ) (10,266 ) $ (117,283 ) Depreciation, depletion and amortization (14,314 ) (16,951 ) (5,507 ) (36,772 ) $ — $ (36,772 ) Gross profit $ 101,108 $ 71,300 $ 6,825 $ 179,233 $ 563 $ 179,796 Cash Cost (2) $ (17.11 ) $ 3.95 $ — $ (8.10 ) $ — $ (8.10 ) AISC (2) $ (10.71 ) $ 17.08 $ — $ 6.07 $ — $ 6.07 Three Months Ended June 30, 2025 Sales $ 122,002 $ 64,273 $ 26,121 $ 212,396 $ 6,596 $ 218,992 Costs applicable to sales (1) (46,024 ) (29,011 ) (20,740 ) (95,775 ) (6,625 ) (102,400 ) Depreciation, depletion and amortization (12,897 ) (13,275 ) (5,141 ) (31,313 ) — (31,313 ) Gross profit (loss) $ 63,081 $ 21,987 $ 240 $ 85,308 $ (29 ) $ 85,279 Cash Cost (2) $ (11.91 ) $ 6.19 $ — $ (5.46 ) $ — $ 1.29 AISC (2) $ (8.19 ) ` $ 19.07 $ — $ 5.19 $ — $ 11.91 Greens Creek Lucky Friday Keno Hill Total Silver (3) Other (4) Total Silver and Other Six Months Ended June 30, 2026 Sales $ 416,332 $ 232,577 $ 80,894 $ 729,803 $ 15,481 $ 745,284 Costs applicable to sales (1) (116,286 ) (70,143 ) (40,059 ) (226,488 ) (15,205 ) (241,693 ) Depreciation, depletion and amortization (30,297 ) (30,560 ) (9,683 ) (70,540 ) — (70,540 ) Gross profit $ 269,749 $ 131,874 $ 31,152 $ 432,775 $ 276 $ 433,051 Cash Cost (2) $ (14.45 ) $ 7.58 $ — $ (5.73 ) $ — $ (5.73 ) AISC (2) $ (9.52 ) $ 20.07 $ — $ 7.10 $ — $ 7.10 Six Months Ended June 30, 2025 Sales $ 240,145 $ 127,467 $ 43,030 $ 410,642 $ 13,684 424,326 Costs applicable to sales (1) (102,073 ) (59,635 ) (33,809 ) (195,517 ) (13,720 ) (209,237 ) Depreciation, depletion and amortization (26,486 ) (26,700 ) (7,943 ) (61,129 ) — (61,129 ) Gross profit (loss) $ 111,586 $ 41,132 $ 1,278 $ 153,996 $ (36 ) $ 153,960 Cash Cost (2) $ (8.37 ) $ 7.77 $ — $ (2.29 ) $ — $ (2.29 ) AISC (2) $ (4.50 ) $ 19.57 $ — $ 8.35 $ — $ 8.35 31 (1)Excludes depreciation, depletion and amortization (2)A reconciliation of these non-GAAP measures to costs applicable to sales, the most comparable GAAP measure, can be found below in Reconciliation of Costs Applicable to Sales (GAAP) 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). (3)The calculation of AISC for our consolidated silver properties includes corporate costs for general and administrative expense and sustaining capital. (4)For the three and six months ended June 30, 2026, Other includes sales of $10.8 million (2025: $6.6 million) and $15.5 million (2025: $13.7 million) and costs applicable to sales of $10.3 million (2025: $6.6 million) and $15.2 million (2025: $13.7 million), respectively, from our environmental remediation services in the Yukon. While revenue from gold, zinc, lead, and copper by-products is significant, we believe that identification of silver as the primary product of Greens Creek, Lucky Friday, and Keno Hill is appropriate because: •silver has historically accounted for a higher proportion of revenue than any other metal and is expected to do so in the future; •we have historically presented Greens Creek and Lucky Friday as primary silver producers, based on the original analysis that justified putting the project into production, and the same analysis applies to Keno Hill. Further we believe that consistency in disclosure is important to our investors regardless of the relationships of metals prices and production from year to year; •metallurgical treatment maximizes silver recovery; •the Greens Creek, Lucky Friday, and Keno Hill deposits are massive sulfide deposits containing an unusually high proportion of silver; and •in most of their working areas, Greens Creek, Lucky Friday, and Keno Hill utilize selective mining methods in which silver is the metal targeted for highest recovery. Accordingly, we believe the identification of gold, lead, zinc, and copper as by-product credits at Greens Creek, Lucky Friday, and Keno Hill is appropriate because of their lower economic value compared to silver and because silver is the primary product we intend to produce at those locations. In addition, we have not consistently received sufficient revenue from any single by-product metal to warrant classification of such as a co-product. We periodically review our revenues to ensure that reporting of primary products and by-products is appropriate. Because we consider zinc, lead, gold, and copper at Greens Creek, Lucky Friday, and Keno Hill to be by-products of our silver production, the values of these metals offset operating costs within our calculations of Cash Cost, After By-product Credits, per Silver Ounce and AISC, After By-product Credits, per Silver Ounce. We currently do not report Cash Cost, After By-product Credits, per Silver Ounce and AISC, After By-product Credits, per Silver Ounce for our Keno Hill operation as it has not met our definition of commercial production. We define an operation as being in commercial production upon achievement of the following criteria: •Completion of operational commissioning of each major mine and mill component; •Demonstrated ability to mine and mill consistently and without significant interruption, defined as 75% of historical production levels or mill design capacity over a period of 90 days; •Silver recoveries are at or near expected steady-state production levels; •All major capital expenditures have been completed; and •A significant portion of available funding is directed towards operating activities. Currently we meet only one of the above criteria - silver recoveries are at expected steady-state production levels. Determination of when these criteria have been met requires the use of judgment, and our definition of commercial production may differ from that of other mining companies. As Keno Hill has not yet been determined to be in commercial production, its costs and by-product credits are excluded from our consolidated Cash Cost, After By-product Credits, per Silver Ounce and AISC, After By-product Credits, per Silver Ounce because (i) by definition it has not reached the sustaining stage and (ii) including its costs and by-product credits we believe would distort consolidated Cash Cost, After By-product Credits, per Silver Ounce and AISC, After By-product Credits, per Silver Ounce of our operating silver mines that are in commercial production and operating as designed, and would not facilitate a meaningful comparison of our performance versus that of our peers who do not report such metrics for mines that are not in commercial production. 32 For the three months ended June 30, 2026 we reported income from continuing operations of $117.9 million (2025: $26.9 million) and net income applicable to common stockholders of $117.7 million (2025: $57.6 million). The following were the significant drivers of the increase in income from continuing operations: •Variances in gross profit at our operations as illustrated in the table above. See The Greens Creek Segment, The Lucky Friday Segment, and The Keno Hill Segment sections below for a discussion on the key drivers by operation. •Interest expense decreased by $8.5 million primarily due to lower total debt levels compared to the same period of 2025 following redemption of $263 million and $212 million of Senior Notes in April 2026 and August 2025 respectively. •Other income increased by $5.7 million primarily due to higher interest earned on the increased cash position and accretion income on our deferred cash consideration received as part of the consideration for the Hecla Quebec sale. •Income and mining tax expense decreased by $3.3 million primarily due to the release of a historical valuation allowance related to our Nevada subsidiary, partly offset by the revaluation of the Nevada subsidiary's deferred balance now that they are combined into the Hecla Mining Company Consolidated Group. The positive movements mentioned above were partly offset by: •General and administrative expense increased by $2.6 million due to increased headcount. •Exploration and pre-development expense increased by $2.9 million due to increased activity across our exploration portfolio. •Fair value adjustments, net decreased by $13.7 million primarily due to $10.2 million of net losses on derivative contracts. For the six months ended June 30, 2026 we reported income from continuing operations of $282.5 million (2025: $51.2 million) and net income applicable to common stockholders of $98.6 million (2025: $86.3 million). Net income applicable to common stockholders is lower than income from continuing operations, due to the recognition of a loss from discontinued operations of $183.7 million, primarily due to the loss of $192.5 million on the sale of Hecla Quebec. The following were the significant drivers of the increase in income from continuing operations: •Variances in gross profit at our operations as illustrated in the table above. See The Greens Creek Segment, The Lucky Friday Segment, and The Keno Hill Segment sections below for a discussion on the key drivers by operation. •Interest expense decreased by $14.3 million primarily due to lower total debt levels compared to the same period of 2025 following redemption of $263 million and $212 million of Senior Notes in April 2026 and August 2025, respectively. •Other income increased by $8.3 million primarily due to higher interest earned on the increased cash position. The positive movements mentioned above were partly offset by: •Fair value adjustments, net decreased by $23 million primarily due to $20.3 million of net losses on derivative contracts. •General and administrative expenses increased by $6.4 million primarily due to higher incentive compensation payments driven by improved financial and operational performance and an increase in Corporate headcount. •Other operating expense, net increased by $6.2 million primarily due to a loss on disposal of Minera Hecla of $2.4 million which we sold for cash proceeds of $5.2 million, and losses on other property, plant and equipment disposals. •Income and mining tax expense increased by $31.9 million due to higher taxable income generated primarily by our US operations, partly offset by the release of a historical valuation allowance related to our Nevada subsidiary. 33 Greens Creek Dollars are in thousands (except per ounce and per ton amounts) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Sales $ 165,333 $ 122,002 $ 416,332 $ 240,145 Costs applicable to sales (1) (49,911 ) (46,024 ) (116,286 ) (102,073 ) Depreciation, depletion and amortization (14,314 ) (12,897 ) (30,297 ) (26,486 ) Gross profit $ 101,108 $ 63,081 $ 269,749 $ 111,586 Tons of ore milled 217,433 230,221 426,355 443,120 Production: Silver (ounces) 2,051,022 2,422,978 4,228,164 4,425,538 Gold (ounces) 14,199 17,750 27,085 31,509 Lead (tons) 4,752 4,931 9,150 9,427 Zinc (tons) 12,553 14,024 25,103 26,859 Copper (tons) 403 499 865 910 Payable metal quantities sold: Silver (ounces) 1,333,880 1,591,745 3,358,411 3,336,397 Gold (ounces) 10,151 11,634 21,684 22,112 Lead (tons) 2,653 2,862 6,111 6,183 Zinc (tons) 8,684 9,039 18,975 18,546 Copper (tons) 1 108 37 152 Ore grades: Silver ounces per ton 12.0 13.4 12.5 12.6 Gold ounces per ton 0.088 0.104 0.086 0.095 Lead percent 2.6 % 2.6 % 2.5 % 2.6 % Zinc percent 6.5 % 6.9 % 6.6 % 6.8 % Copper percent 0.2 % 0.3 % 0.3 % 0.3 % Total production cost per ton $ 260.15 $ 225.71 $ 266.52 $ 232.57 Cash Cost, After By-product Credits, per Silver Ounce (2) $ (17.11 ) $ (11.91 ) $ (14.45 ) $ (8.37 ) AISC, After By-Product Credits, per Silver Ounce (2) $ (10.71 ) $ (8.19 ) $ (9.52 ) $ (4.50 ) Capital additions $ 12,070 $ 8,397 $ 18,183 $ 19,156 (1)Excludes depreciation, depletion and amortization. (2)A reconciliation of these non-GAAP measures to costs applicable to sales, the most comparable GAAP measure, can be found below in Reconciliation of Costs Applicable to Sales (GAAP) 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 $38.0 million increase in gross profit for the three months ended June 30, 2026, compared to the same period in 2025 was primarily due to higher realized sales prices for all metals, partly offset by lower sales volumes reflecting lower grades and tons milled. Capital investments in the current quarter were $3.7 million higher compared to the same period in 2025. Current quarter costs included $5.8 million for surface infrastructure and equipment, $1.8 million for mining equipment and development, $1.7 million for primary ore access development and $1.2 million for definition drilling. Production of all metals was negatively impacted during the three months ended June 30, 2026, compared to the same period in 2025, primarily due to lower tons milled and grades. The $158.2 million increase in gross profit for the six months ended June 30, 2026, compared to the same period in 2025 was primarily due to higher realized sales prices for silver and gold, partly offset by lower sales volumes for silver and gold. Capital investments in the current year were $1.0 million lower compared to the same period in 2025. Current year costs included $7.3 million for surface infrastructure and equipment, $4.8 million for primary ore access development, $2.5 million for mining equipment and related costs, $2.2 million for definition drilling and $1.1 million on mill equipment. Production of all metals was negatively impacted during the six months ended June 30, 2026, compared to the same period in 2025, primarily due to lower tons milled and grades. 34 The charts below illustrate the factors contributing to Cash Cost, After By-product Credits, per Silver Ounce for Greens Creek: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Cash Cost, Before By-product Credits, per Silver Ounce $ 27.05 $ 22.42 $ 27.56 $ 25.15 By-product credits (44.16 ) (34.33 ) (42.01 ) (33.52 ) Cash Cost, After By-product Credits, per Silver Ounce $ (17.11 ) $ (11.91 ) $ (14.45 ) $ (8.37 ) 35 Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 AISC, Before By-product Credits, per Silver Ounce $ 33.45 $ 26.14 $ 32.49 $ 29.02 By-product credits (44.16 ) (34.33 ) (42.01 ) (33.52 ) AISC, After By-product Credits, per Silver Ounce $ (10.71 ) $ (8.19 ) $ (9.52 ) $ (4.50 ) For the three and six months ended June 30, 2026, the decrease in Cash Cost, After By-product Credits, per Silver Ounce and AISC, After By-product Credits, per Silver Ounce compared to the same period in 2025 was primarily due to an increase in gold by-product credits, reflecting higher realized gold prices, partly offset by lower silver production and higher production costs. Lucky Friday Dollars are in thousands (except per ounce and per ton amounts) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Sales $123,221 $64,273 $232,577 $127,467 Costs applicable to sales (1) (34,970) (29,011) (70,143) (59,635) Depreciation, depletion and amortization (16,951) (13,275) (30,560) (26,700) Gross profit $71,300 $21,987 $131,874 $41,132 Tons of ore milled 101,978 114,475 210,586 223,220 Production: Silver (ounces) 1,532,569 1,340,877 2,769,857 2,673,129 Lead (tons) 9,967 8,829 18,217 17,309 Zinc (tons) 3,884 3,911 7,716 7,592 Payable metal quantities sold: Silver (ounces) 1,457,066 1,228,493 2,588,758 2,497,338 Lead (tons) 9,443 8,027 17,017 16,005 Zinc (tons) 2,816 2,887 5,645 5,968 Ore grades: Silver ounces per ton 15.6 12.5 13.7 12.7 Lead percent 10.3% 8.2% 9.1% 8.2% Zinc percent 4.5% 4.2% 4.3% 4.1% Total production cost per ton $321.26 $241.63 $315.29 $249.89 Cash Cost, After By-product Credits, per Silver Ounce (2) $3.95 $6.19 $7.58 $7.77 AISC, After By-product Credits, per Silver Ounce (2) $17.08 $19.07 $20.07 $19.57 Capital additions $16,681 $15,942 $33,699 $31,388 (1)Excludes depreciation, depletion and amortization (2)A reconciliation of these non-GAAP measures to costs applicable to sales, the most comparable GAAP measure, can be found below in Reconciliation of Costs Applicable to Sales (GAAP) 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). Gross profit increased by $49.3 million for the three months ended June 30, 2026 compared to the comparable period in 2025, reflecting higher realized prices for silver, zinc, and lead and higher sales volumes for silver and lead reflecting higher production resulting from improved grades. Capital investments increased by $0.7 million for the three months ended June 30, 2026, compared to the same period in 2025. Significant capital expenditures during the three months ended June 30, 2026, included $7.0 million on tailings facility pond 5 construction, capital development of $5.7 million, $1.4 million for the surface cooling project, $1.0 million for a shaft rehabilitation, $0.8 million for definition drilling. Gross profit increased by $90.7 million for the six months ended June 30, 2026 compared to the comparable period in 2025, reflecting higher realized prices for silver, zinc, and lead and higher sales volumes for silver and lead driven by higher production. Capital investments increased by $2.3 million for the six months ended June 30, 2026, compared to the same period in 2025. Significant capital expenditures during the six months ended June 30, 2026, included capital development of $13.5 million, $7.3 million on tailings facility pond 5 construction, $2.5 million for the surface cooling project, $2.6 million for a shaft rehabilitation, $1.5 million 36 for definition drilling, $1.5 million for underground equipment, $1.2 million on ramp work and $1.1 million on a cone crusher replacement. The charts below illustrate the factors contributing to Cash Cost, After By-product Credits, Per Silver Ounce for Lucky Friday: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Cash Cost, Before By-product Credits, per Silver Ounce $ 20.57 $ 22.47 $ 24.93 $ 23.79 By-product credits (16.62 ) (16.28 ) (17.35 ) (16.02 ) Cash Cost, After By-product Credits, per Silver Ounce $ 3.95 $ 6.19 $ 7.58 $ 7.77 37 Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 AISC, Before By-product Credits, per Silver Ounce $ 33.70 $ 35.35 $ 37.42 $ 35.59 By-product credits (16.62 ) (16.28 ) (17.35 ) (16.02 ) AISC, After By-product Credits, per Silver Ounce $ 17.08 $ 19.07 $ 20.07 $ 19.57 For the three months ended June 30, 2026, Cash Cost, After By-product Credits, per Silver Ounce and AISC, After By-product Credits, per Silver Ounce are lower than the same period in 2025 primarily due to higher silver production, by-product credits, and treatment costs, partly offset by higher profit sharing. For the six months ended June 30, 2026, Cash Cost, After By-product Credits, per Silver Ounce was largely in line with the same period in 2025 as higher silver production and by-product credits were offset by higher as-produced costs, primarily related to higher profit sharing. AISC, After By-product Credits, per Silver Ounce were higher than the same period in 2025 primarily due to higher sustaining capital investments. Keno Hill Dollars are in thousands (except per ounce and per ton amounts) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Sales $ 34,468 $ 26,121 $ 80,894 $ 43,030 Costs applicable to sales (1) (22,136 ) (20,740 ) (40,059 ) (33,809 ) Depreciation, depletion and amortization (5,507 ) (5,141 ) (9,683 ) (7,943 ) Gross profit $ 6,825 $ 240 $ 31,152 $ 1,278 Tons of ore milled 33,504 26,771 57,778 54,182 Production: Silver (ounces) 625,236 750,712 1,113,955 1,523,142 Lead (tons) 573 890 1,018 1,921 Zinc (tons) 577 544 999 963 Payable metal quantities sold: Silver (ounces) 527,960 697,475 946,755 1,196,727 Lead (tons) 432 775 800 1,466 Zinc (tons) 396 407 732 666 Ore grades: Silver ounces per ton 19.3 28.9 19.9 29.0 Lead percent 1.8 % 3.5 % 1.9 % 3.7 % Zinc percent 2.0 % 2.3 % 2.1 % 2.1 % Capital additions $ 7,236 $ 17,045 $ 22,261 $ 27,481 (1)Excludes depreciation, depletion and amortization. We have not disclosed cost per ounce statistics for the Keno Hill operation as it has not met our definition of commercial production. See above "Consolidated Results of Operations" for 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. We acquired our Keno Hill operation as part of the Alexco Resource Corp. acquisition in September 2022 and have focused on development activities and began ramp-up of the mill during the second quarter of 2023. The average mill throughput during the three months ended June 30, 2026, was 368 tons per day (2025: 294 tons per day) (the mine is currently permitted to a maximum of an average of 440 tons per day), with silver grades milled of 19.3 ounces per ton (2025: 28.9 ounces per ton). During the first six months of 2026, the mine continued to focus on development and ramp up to higher tonnage rates with mining rates of 332 tons per day during the quarter, with material sourced from both the Bermingham and Flame and Moth deposits. Mill throughput, while currently steady, was negatively impacted in the first quarter by limited ore availability from the Bermingham deposit due to reduced output from the Bear zone and dilution control issues in narrow vein stopes caused by mining remnant areas as we departed that zone and transitioned into the Arctic zone, as well as by mine sequencing at both Bermingham and Flame and Moth deposits, which was altered as a result of power curtailments by Yukon Energy (the electric utility that supplies the Mine) lasting sixteen days in December 2025 and five days in January 2026 due to extreme cold weather. These impacts have diminished, however, near-term production may decrease due to other factors discussed below. 38 During the three months ended June 30, 2026, Keno Hill recorded sales of $34.5 million (2025: $26.1 million), with the increase due to higher realized prices, partly offset by lower metals sales volumes driven by lower grades. As a result of higher revenues, Keno Hill generated gross profit of $6.8 million during the three months ended June 30, 2026 (2025: $0.2 million). During the quarter, Keno Hill recorded capital investments of $7.2 million, primarily related to mine development, camp expansion, dry-stack tailings facility, and surface equipment. During the six months ended June 30, 2026, Keno Hill recorded sales of $80.9 million (2025: $43.0 million), with the increase due to higher realized prices, partly offset by lower metals sales volumes driven by lower grades. As a result of higher revenues, Keno Hill generated gross profit of $31.2 million during the six months ended June 30, 2026 (2025: $1.3 million). During the six months ended June 30, 2026, Keno Hill recorded capital investments of $22.3 million, primarily related to $15.9 million for mine development and infrastructure, $3.3 million for mobile equipment, $1.5 million for phase 2 of the dry-stack tailings facility, $1.1 million for definition drilling and $0.5 million for permitting. Prior Period Disruptions and Ongoing Impacts From commencement of production until late August 2024, ore production and mill throughput generally increased as planned, resulting in higher production levels, although still below the mill’s permitted capacity. Beginning in mid‑2024 and continuing into 2025, however, Keno Hill was impacted by external events that affected permitting, projects, production, and delayed our ability to achieve sustained, profitable operations. In late June 2024, an unrelated third party, Victoria Gold, experienced a heap leach failure at its Eagle Mine located near Keno Hill. Due to the resulting focus of the Yukon Government (“YG”) and the First Nation of Na‑Cho Nyäk Dun (“FNNND”) on the incident response rather than routine permitting matters, we were required to suspend milling operations at Keno Hill between August 27 and October 26, 2024 while awaiting authorizations and permits. Beginning in late October 2024, Keno Hill experienced power curtailments after Yukon Energy suffered a turbine failure at its Aishihik hydroelectric plant in Whitehorse. This failure, combined with Yukon Energy’s focus on electric transmission line maintenance and increased power demand due to cold winter temperatures, resulted in reduced power deliveries to Keno Hill and prevented us from fully powering the mine and mill on multiple occasions in late 2024 and the first quarter of 2025. These power constraints reduced silver production by approximately 130,000 ounces and resulted in approximately $0.5 million of labor costs for idled employees through September 30, 2025. Power conditions improved following the first quarter of 2025 and we do not expect additional curtailments due to the Aishihik turbine, which was successfully repaired in the third quarter of 2025. However, as mentioned above, we experienced power curtailments in the fourth quarter of 2025 and the first quarter of 2026. See the Risk Factor in our 2025 Form 10-K, "We may be subject to a number of unanticipated risks related to inadequate infrastructure." Current Operational Challenges Keno Hill continues to face operational challenges that constrain throughput and limit our ability to ramp up production. These challenges include: ore availability and dilution control issues during the transition from the Bear to the Arctic Zone at Bermingham; Flame and Moth mine sequencing; workforce availability and retention in a remote location; execution of infrastructure projects; limited camp capacity; and incremental demands on site infrastructure and resources associated with the ramp‑up of our subsidiary’s environmental remediation services activities at the Keno Hill site. In addition, deliveries of certain equipment, including haul trucks, a bolter, a scissor deck, and a generator, were delayed during the first quarter. These delays affected capital development activities and, in the future, if delays occur and are not resolved on a timely basis, they could adversely impact mining flexibility and future ore availability. Permitting and Infrastructure Constraints Permitting remains one of the most significant factors affecting our ability to achieve sustained, profitable production at Keno Hill. Increasing production requires additional capacity across several operational areas, including tailings storage, waste rock disposal, water treatment and discharge limits, camp accommodation, and reliable power supply. Expanding these capacities requires obtaining new permits or amending existing permits, as well as capital investments to develop the associated infrastructure. Although progress continues on these permitting matters, the pace of advancement has been affected by delays resulting from the Eagle Mine incident and heightened regulatory focus on the Yukon mining sector. 39 Tailings Storage The currently permitted dry‑stack tailings storage area at Keno Hill (Phase 2E) is expected to reach capacity in approximately October 2026. We received governmental approvals for the Phase 2W dry‑stack expansion in early July 2026 and have begun construction. We currently expect Phase 2W to become operational before Phase 2E reaches capacity. Further in the future, at current milling rates, we project that we would run out of tailings storage space in the second quarter of 2028. If no alternative storage or disposal solution has been developed by that time, we may reduce mining rates in advance to preserve available storage capacity, which would curtail milling operations, or we may continue mining at or near current rates until storage capacity is reached, which could interrupt milling operations. The construction season in the Yukon is approximately April through October, and if permits are received by the first half of 2029, it is possible that tailings expansion could be advanced far enough in 2029 to permit the mill to resume normal production levels, and begin ramping up to higher production levels by the end of 2029. Quartz Mining License and Water License Amendments Keno Hill's mill is currently permitted to process up to 440 tons per day (and it has achieved that rate for multiple weeks during test run periods); however, several factors other than mill capacity limit actual throughput, including dry-stack tailings capacity and restrictions on waste rock production and disposal. To sustain operations at or near this permitted capacity, we will need to amend our quartz mining license (“QML”) and water license (“WL”) to remove these constraints. The process for securing these amendments includes submission of a Project Proposal to the Yukon Environmental and Socio‑economic Assessment Board (“YESAB”), which we intend to submit by year‑end 2026. The YG is required to consult with the FNNND on permitting matters, including the YESAB review process. FNNND previously entered into a Cooperation and Benefits Agreement for Keno Hill, and we believe they remain supportive of the project. However, there can be no assurance that such support will continue or that the timing or outcome of the YESAB review will not be affected by FNNND’s position. In addition, FNNND has indicated interest in revisiting the existing Cooperation and Benefits Agreement ("CBA"), including unresolved wealth‑sharing provisions. We do not currently believe that negotiating changes to the CBA would impede the YESAB review process, but it is possible it could. The YESAB review process is expected to take approximately 12 months, after which applications for amendments to the QML and WL would be submitted to the applicable regulators. We currently estimate that this overall process could be completed by approximately mid‑2029, although each sequential step in this process is subject to its own timing variability, and delays at any stage would affect the overall timeline. There can be no assurance, however, that any of these approvals or amendments will be obtained on this timeline or at all. Construction would commence after receiving the permits. Waste Rock and Water Management Constraints Our QML places limits on the cumulative amount of waste rock that may be produced during mining and on waste rock storage capacity and classification. At current mining rates, we project that the waste rock production limit could be reached by approximately mid‑2027, at which point waste rock production would need to be curtailed absent receipt of a QML amendment. If we do not alter mining rates by a sufficient amount or receive changes to our QML (which we are seeking, independent of the QML amendment process described above), it is possible mine production would stop by approximately mid‑2027 until the amended permits are received and related construction completed. Our QML also limits capacity in our waste rock disposal areas. At Bermingham, we have reached our authorized capacity for the current facility and we are temporarily storing waste rock in stockpiles until approvals to expand the waste rock disposal area can be obtained. In the event the Yukon Government restricts our ability to temporarily stockpile waste rock, our ability to further develop Bermingham would be limited, which could negatively impact production at Keno Hill. There is no assurance such approvals will be received, which could force us to curtail or halt production if alternative arrangements cannot be found. As we develop new mining zones at Keno Hill, we have periodically encountered higher‑than‑expected groundwater inflows. While we currently remain within permitted water discharge limits, development of new zones could require an amendment to our WL. There can be no assurance that the YG would grant such an amendment. If we are unable to amend our WL on a timely basis and continued development would result in discharges exceeding permitted limits, we may be required to curtail production or adjust mine sequencing to remain in compliance. See the Risk Factor in our 2025 Form 10‑K, “We are required to obtain governmental permits and other approvals in order to conduct mining operations.” Strategic Focus and Path to 440 Tons Per Day 40 As stated above, Keno Hill has generated profits at current throughput rates and metal prices. Our near‑term strategic focus is to advance permitting and execute key infrastructure projects to place the mine on a path toward achieving its currently permitted capacity of 440 tons per day. At that rate and at current prices, we expect Keno Hill would generate sustained positive free cash flow while preserving optionality for potential expansion beyond 440 tons per day. As discussed above, to sustain operations at or near this permitted capacity, we will need to amend our QML and WL to remove these constraints. Sustained production at this level would require ore from both the Bermingham deposit and the lower‑grade Flame & Moth deposit, and, as discussed above, completion of infrastructure projects, receipt of required permit amendments, continued mine development, and maintenance of social license to operate. If the prerequisites to continue mining through the mid-2027 to mid-2029 (or later) period – including receipt of QML and WL amendments are not met on a timely basis, our operations and financial results could be materially adversely affected. Even if amended permits are received on a timely basis, there will be a period of time required to construct the associated infrastructure. Given that the overall permitting process involves multiple sequential regulatory steps, each subject to its own timing variability, and risks inherent to construction in Yukon once permits are received, mining rates and continuous operation at Keno Hill between approximately 2027 and 2030 remains uncertain. It is likely that there will be times of curtailed production, if not outright halts to production during that period. We continue to study the aforementioned issues to develop a plan to optimize Keno Hill for the periods described herein. Such a plan could result in accelerated production schedules and an earlier transition to care and maintenance. Alternatively, such a plan could result in slower mining rates so that curtailment periods are minimized, or possibly eliminated, until permits are received and sustained, profitable production at higher throughput rates is achievable. If any one of the prerequisites described above is not achieved on a timely basis, or if metal prices decrease materially from current levels, Keno Hill could be placed on care and maintenance. See the Risk Factor in our 2025 Form 10‑K, “We may not realize all of the anticipated benefits from our acquisitions, including our 2022 acquisition of Alexco.” Corporate Matters Income Taxes For the three months ended June 30, 2026, the Company recorded an income and mining tax provision of $18.7 million (2025: $22.1 million), resulting in an effective tax rate of 13.7% (2025: 45.1%). For the six months ended June 30, 2026, the Company recorded an income and mining tax provision of $69.7 million (2025: $37.7 million) resulting in an effective tax rate of 19.8% (2025: 42.4%). The comparability of our income and mining tax provision and effective tax rate for the reported periods was impacted by multiple factors, primarily: (i) mining taxes; (ii) variations in our income before income taxes; (iii) geographic distribution of that income; (iv) foreign exchange rates including non-recognition of foreign exchange gains and losses; (v) percentage depletion; (vi) the non-recognition of tax assets, and (vii) the change in tax status of Klondex ULC. The effective tax rate will fluctuate, sometimes significantly, period to period. The change in the effective tax rate during the three and six months ended June 30, 2026, compared to the comparable period in 2025 is primarily related to variations in our income before taxes and the relative effect on the tax provision. Each reporting period we assess our deferred tax balances based on a review of long-range forecasts and quarterly activity. A valuation allowance is provided for deferred tax assets for which it is more likely than not the related tax benefits will not be realized. We analyze our deferred tax assets and, if it is determined that we will not realize all or a portion of our deferred tax assets, we record or increase a valuation allowance. Conversely, if it is determined we will ultimately more likely than not be able to realize all or a portion of the related benefits for which a valuation allowance has been provided, all or a portion of the related valuation allowance will be reduced. There are a number of factors that impact our ability to realize our deferred tax assets. Valuation allowances are provided on deferred tax assets in certain Canadian jurisdictions. For additional information, please see risk factors Our accounting and other estimates may be imprecise and Our ability to recognize the benefits of deferred tax assets related to net operating loss carryforwards and other items is dependent on future cash flows generating taxable income in Item 1A - Risk Factors in our 2025 Form 10-K. Reconciliation of Costs Applicable to 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 costs applicable to 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 and six months ended June 30, 2026 and 2025. 41 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 we report 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 we utilize to measure each mine's operating performance. We use 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 we report, 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. We have not disclosed cost per ounce statistics for the Keno Hill operation as it has not met our definition of commercial production. See above "Consolidated Results of Operations" for 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. Cash Cost, Before By-product Credits and AISC, Before By-product Credits each 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. We also use these measurements for the comparative monitoring of performance of our mining operations period-to-period from a cash flow perspective. We currently do not report Cash Cost, After By-product Credits, per Silver Ounce and AISC, After By-product Credits, per Silver Ounce for our Keno Hill operation as it is in the ramp-up phase of production and accordingly it is excluded from our consolidated Cash Cost, After By-product Credits, per Silver Ounce and AISC, After By-product Credits, per Silver Ounce. 42 In thousands (except per ounce amounts) Three Months Ended June 30, 2026 Greens Creek Lucky Friday Keno Hill (4) Corporate (2) Other (3) Total Silver and Other Costs applicable to sales (5) $ 49,911 $ 34,970 $ 22,136 $ — $ 10,266 $ 117,283 Treatment costs (3,148 ) (2,794 ) — — — (5,942 ) Change in product inventory 9,606 (417 ) — — — 9,189 Reclamation and other costs (889 ) (227 ) — — — (1,116 ) Exclusion of Keno Hill cash costs (4) — — (22,136 ) — — (22,136 ) Exclusion of Other costs (3) — — — — (10,266 ) (10,266 ) Cash Cost, Before By-product Credits (1) 55,480 31,532 — — — 87,012 Reclamation and other costs 933 225 — — — 1,158 Sustaining capital 12,188 19,884 — 2,380 — 34,452 General and administrative — — — 15,173 — 15,173 AISC, Before By-product Credits (1) 68,601 51,641 — 17,553 — 137,795 By-product credits: Zinc (26,669 ) (8,971 ) — — — (35,640 ) Gold (56,935 ) — — — — (56,935 ) Lead (6,667 ) (16,494 ) — — — (23,161 ) Copper (311 ) — — — — (311 ) Total By-product credits (90,582 ) (25,465 ) — — — (116,047 ) Cash Cost, After By-product Credits $ (35,102 ) $ 6,067 $ — $ — $ — $ (29,035 ) AISC, After By-product Credits $ (21,981 ) $ 26,176 $ — $ 17,553 $ — $ 21,748 Ounces produced 2,051 1,533 3,584 Cash Cost, Before By-product Credits, per Ounce $ 27.05 $ 20.57 $ 24.28 By-product credits per ounce (44.16 ) (16.62 ) (32.38 ) Cash Cost, After By-product Credits, per Ounce $ (17.11 ) $ 3.95 $ (8.10 ) AISC, Before By-product Credits, per Ounce $ 33.45 $ 33.70 $ 38.45 By-product credits per ounce (44.16 ) (16.62 ) (32.38 ) AISC, After By-product Credits, per Ounce $ (10.71 ) 17.08 $ 6.07 43 In thousands (except per ounce amounts) Three Months Ended June 30, 2025 Greens Creek Lucky Friday Keno Hill (4) Corporate (2) Other (3) Total Silver Costs applicable to sales (5) $ 46,024 $ 29,011 $ 20,740 $ — $ 6,625 $ 102,400 Treatment costs (1,001 ) 1,054 — — — 53 Change in product inventory 9,234 225 — — — 9,459 Reclamation and other costs 57 (160 ) — — — (103 ) Exclusion of Keno Hill cash costs (4) — — (20,740 ) — — (20,740 ) Exclusion of Other costs — — — — (6,625 ) (6,625 ) Cash Cost, Before By-product Credits (1) 54,314 30,130 — — — 84,444 Reclamation and other costs 757 195 — — — 952 Sustaining capital 8,268 17,069 — 1,270 — 26,607 General and administrative — — — 12,540 — 12,540 AISC, Before By-product Credits (1) 63,339 47,394 — 13,810 — 124,543 By-product credits: Zinc (23,512 ) (7,120 ) — — — (30,632 ) Gold (52,194 ) — — — — (52,194 ) Lead (6,610 ) (14,708 ) — — — (21,318 ) Copper (871 ) — — — — (871 ) Total By-product credits (83,187 ) (21,828 ) — — — (105,015 ) Cash Cost, After By-product Credits $ (28,873 ) $ 8,302 $ — $ — $ — $ (20,571 ) AISC, After By-product Credits $ (19,848 ) $ 25,566 $ — $ 13,810 $ — $ 19,528 Divided by ounces produced 2,423 1,341 3,764 Cash Cost, Before By-product Credits, per Ounce $ 22.42 $ 22.47 $ 22.44 By-product credits per ounce (34.33 ) (16.28 ) (27.90 ) Cash Cost, After By-product Credits, per Ounce $ (11.91 ) $ 6.19 $ (5.46 ) AISC, Before By-product Credits, per Ounce $ 26.14 $ 35.35 $ 33.09 By-product credits per ounce (34.33 ) (16.28 ) (27.90 ) AISC, After By-product Credits, per Ounce $ (8.19 ) $ 19.07 $ 5.19 44 In thousands (except per ounce amounts) Six Months Ended June 30, 2026 Greens Creek Lucky Friday Keno Hill (4) Corporate (2) Other (3) Total Silver Costs applicable to sales (5) $ 116,286 $ 70,143 $ 40,059 $ — $ 15,205 $ 241,693 Treatment costs (2,253 ) (241 ) — — (2,494 ) Change in product inventory 4,223 (418 ) — — 3,805 Reclamation and other costs (1,735 ) (422 ) — — (2,157 ) Exclusion of Keno Hill cash costs (4) — — (40,059 ) — — (40,059 ) Exclusion of Other costs (3) — — — — (15,205 ) (15,205 ) Cash Cost, Before By-product Credits (1) 116,521 69,062 — — — 185,583 Reclamation and other costs 1,867 450 — — — 2,317 Sustaining capital 18,983 34,147 — 3,388 — 56,518 General and administrative — — — 30,926 — 30,926 AISC, Before By-product Credits (1) 137,371 103,659 — 34,314 — 275,344 By-product credits: Zinc (52,038 ) (17,788 ) — — — (69,826 ) Gold (112,149 ) — — — — (112,149 ) Lead (12,704 ) (30,269 ) — — — (42,973 ) Copper (744 ) — — — — (744 ) Total By-product credits (177,635 ) (48,057 ) — — — (225,692 ) Cash Cost, After By-product Credits $ (61,114 ) $ 21,005 $ — $ — $ — $ (40,109 ) AISC, After By-product Credits $ (40,264 ) $ 55,602 $ — $ 34,314 $ — $ 49,652 Divided by ounces produced 4,228 2,770 6,998 Cash Cost, Before By-product Credits, per Ounce $ 27.56 $ 24.93 $ 26.52 By-product credits per ounce (42.01 ) (17.35 ) (32.25 ) Cash Cost, After By-product Credits, per Ounce $ (14.45 ) $ 7.58 $ (5.73 ) AISC, Before By-product Credits, per Ounce $ 32.49 $ 37.42 $ 39.35 By-product credits per ounce (42.01 ) (17.35 ) (32.25 ) AISC, After By-product Credits, per Ounce $ (9.52 ) $ 20.07 $ 7.10 45 In thousands (except per ounce amounts) Six Months Ended June 30, 2025 Greens Creek Lucky Friday Keno Hill(4) Corporate (2) Other (3) Total Silver Costs applicable to sales (5) $ 102,073 $ 59,635 $ 33,809 $ — $ 13,720 $ 209,237 Treatment costs 1,142 5,017 — — — 6,159 Change in product inventory 8,333 (614 ) — — — 7,719 Reclamation and other costs (250 ) (433 ) — — — (683 ) Exclusion of Keno Hill cash costs (4) — — (33,809 ) — — (33,809 ) Exclusion of Other costs (3) — — — — (13,720 ) (13,720 ) Cash Cost, Before By-product Credits (1) 111,298 63,605 — — — 174,903 Reclamation and other costs 1,514 390 — — 1,904 Sustaining capital 15,636 31,139 — 2,295 49,070 General and administrative — — — 24,539 24,539 AISC, Before By-product Credits (1) 128,448 95,134 — 26,834 — 250,416 By-product credits: Zinc (46,886 ) (14,070 ) — — — (60,956 ) Gold (87,171 ) — — — — (87,171 ) Lead (12,701 ) (28,751 ) — — — (41,452 ) Exclusion of Lucky Friday by-product credits (1,600 ) — — — — (1,600 ) Total By-product credits (148,358 ) (42,821 ) — — — (191,179 ) Cash Cost, After By-product Credits $ (37,060 ) $ 20,784 $ — $ — $ — $ (16,276 ) AISC, After By-product Credits $ (19,910 ) $ 52,313 $ — $ 26,834 $ — $ 59,237 Divided by ounces produced 4,426 2,673 7,099 Cash Cost, Before By-product Credits, per Ounce $ 25.15 $ 23.79 $ 24.64 By-product credits per ounce (33.52 ) (16.02 ) (26.93 ) Cash Cost, After By-product Credits, per Ounce $ (8.37 ) $ 7.77 $ (2.29 ) AISC, Before By-product Credits, per Ounce $ 29.02 $ 35.59 $ 35.28 By-product credits per ounce (33.52 ) (16.02 ) (26.93 ) AISC, After By-product Credits, per Ounce $ (4.50 ) $ 19.57 $ 8.35 (1)Includes all direct and indirect operating costs related to the physical activities of producing metals, including mining, processing and other plant costs, third-party refining and marketing expense, on-site general and administrative costs and royalties, before by-product revenues earned from all metals other than the primary metal produced at each operation. AISC, Before By-product Credits also includes reclamation and sustaining capital costs. (2)AISC, Before By-product Credits for our consolidated silver properties includes corporate costs for general and administrative expense and sustaining capital. (3)For the three and six months ended June 30, 2026, Other includes $10.3 million (2025: $6.6 million) and $15.4 million (2025: $13.7 million) of costs applicable to sales, respectively, related to our environmental remediation services business. (4)Keno Hill is in the ramp-up phase of production and is excluded from the calculation of Cash Cost, Before By-product Credits, Cash Cost, After By-product Credits, AISC, Before By-product Credits, and AISC, After By-product Credits. (5)Excludes depreciation, depletion and amortization Financial Liquidity and Capital Resources We have a disciplined cash management strategy of maintaining financial flexibility to execute our capital priorities and provide long-term value to our stockholders. Consistent with that strategy, we aim to maintain an acceptable level of debt and sufficient liquidity to fund debt service costs, operations, capital expenditures, exploration and pre-development projects, while returning cash to stockholders through dividends and potential share repurchases. At June 30, 2026, we had $483.5 million in cash and cash equivalents, of which $10.6 million was held in foreign subsidiaries' local currency that we anticipate utilizing for near-term operating, exploration or capital costs by those foreign subsidiaries. At June 30, 2026, we had no amount drawn on our $225 million credit facility plus a $75 million accordion option, with $3.5 million used for letters of credit, leaving $221.5 million available for borrowings. We also have USD cash and cash equivalent balances held by our foreign subsidiaries that, if repatriated, may be subject to withholding taxes. We expect that there would be no additional tax burden upon repatriation after considering the cash cost associated with the withholding taxes. We believe that our liquidity and capital resources from our continuing operations are adequate to fund our operations and corporate activities. 46 Pursuant to our common stock dividend policy described in Note 12 of Notes to Consolidated Financial Statements in our consolidated financial statements and notes for the year ended December 31, 2025, our Board of Directors declared and paid dividends on our common and preferred stock of $2.5 million (2025: $2.5 million) during the three months ended June 30, 2026. During the six months ended June 30, 2026, we paid dividends on our common and preferred stock of $5.3 million (2025: $5.0 million). Our common stock dividend policy anticipates paying an annual minimum dividend of $0.015 per share. The declaration and payment of dividends on our common stock is at the sole discretion of our Board of Directors, and there can be no assurance that we will continue to declare and pay common stock dividends in the future. Pursuant to our stock repurchase program described in Note 12 of Notes to Consolidated Financial Statements in our consolidated financial statements and notes for the year ended December 31, 2025, we are authorized to repurchase up to 20 million shares of our outstanding common stock from time to time in open market or privately negotiated transactions, depending on prevailing market conditions and other factors. The repurchase program may be modified, suspended, or discontinued by us at any time. Whether or not we engage in repurchases from time to time depends on a variety of factors, including not only price and cash resources, but customary black-out restrictions, whether we have any material inside information, limitations on share repurchases or cash usage that may be imposed by our credit agreement or in connection with issuances of securities, alternative uses for cash, applicable law, and other investment opportunities from time to time. As of June 30, 2026 and December 31, 2025, 934,100 shares had been purchased in prior periods at an average price of $3.99 per share, leaving 19.1 million shares that may yet be purchased under the program. We have not repurchased any shares since June 2014. As discussed in Note 6 of Notes to Condensed Consolidated Financial Statements (Unaudited) pursuant to an equity distribution agreement dated February 18, 2021, as of June 30, 2026, there were 197,998 remaining shares of our common stock that we may offer and sell from time to time in “at-the-market” offerings. Sales of the shares, if any, will be made by means of ordinary brokers transactions or as otherwise agreed between the Company and the agents as principals. Whether or not we engage in sales from time to time may depend on a variety of factors, including share price, our cash resources, customary black-out restrictions, and whether we have any material inside information. The equity distribution agreement can be terminated by us at any time. Any sales of shares under that agreement are registered under the Securities Act of 1933, as amended, pursuant to a shelf registration statement on Form S-3. As a result of our current cash balances, the expected performance of our operations, current metals prices, proceeds from potential at-the-market sales of common stock, and availability under our Credit Agreement, we believe we will be able to meet our obligations and other potential cash requirements during the next 12 months and beyond. While the formerly held Casa Berardi operation was a significant part of our operations, we don't believe its divestiture will have an impact on our ability to meet future obligations due to projected cash flow generation from our remaining operations, and the redemption of our Senior Notes. Our obligations and other uses of cash may include, but are not limited to: interest payments under our Credit Agreement; care and maintenance costs; capital investments at our operations; potential acquisitions of other mining companies or properties; regulatory matters; litigation; potential repurchases of our common stock under the program described above; and payment of dividends on common stock, if declared by our Board of Directors. We currently estimate a range of approximately $208 to $223 million will be spent in 2026 on capital investments, primarily for equipment, infrastructure, and development at our mines, before any lease financing. We also estimate exploration and pre-development expenditures will total approximately $55 million in 2026. Our expenditures for these items and our related plans for 2026 may change based upon our financial position, metals prices, and other considerations. Our ability to fund the activities described above will depend on our operating performance, metals prices, our ability to estimate revenues and costs, sources of liquidity available to us, including the revolving credit facility, and other factors. A sustained downturn in metals prices, significant increase in operational or capital costs or other uses of cash, our inability to access the credit facility or the sources of liquidity discussed above, or other factors beyond our control could impact our plans. See the Risk Factor in our 2025 Form 10-K "An extended decline in metals prices, an increase in operating or capital costs, or treatment charges, mine accidents or closures, increasing regulatory obligations, or our inability to convert resources or exploration targets to reserves may cause us to record write-downs, which could negatively impact our results of operations." We may defer some capital investment and/or exploration and pre-development activities, engage in asset sales or secure additional capital if necessary to maintain liquidity. We may also pursue additional acquisition opportunities, which could require additional equity issuances or other forms of financing. There can be no assurance that such financing will be available to us. 47 Our liquid assets include (in millions): June 30, 2026 December 31, 2025 Cash and cash equivalents held in U.S. dollars $ 472.9 $ 215.1 Cash and cash equivalents held in foreign currency 10.6 26.5 Total cash and cash equivalents 483.5 241.6 Marketable equity securities - current and non-current 154.4 107.5 Total cash, cash equivalents and investments $ 637.9 $ 349.1 Cash and cash equivalents increased by $241.9 million in the first six months of 2026 from cash generated from operations, the proceeds received for disposing of Hecla Quebec, Minera Hecla, and marketable securities. Cash held in foreign currencies represents balances in Canadian dollars. The value of our current and non-current marketable equity securities increased by $46.9 million primarily due to consideration received as part of the Hecla Quebec sale, partly offset by disposals. Six months ended June 30, 2026 June 30, 2025 Cash provided by operating activities from continuing operations (in millions) $ 357.8 $ 136.0 Cash provided by operating activities from continuing operations for the six months ended June 30, 2026, of $357.8 million represents a $221.8 million increase compared to the $136.0 million of cash provided by operating activities from continuing operations during the same period of 2025. $266.8 million of the variance was attributable to higher income adjusted for non-cash items, reflecting higher net income driven by higher revenues, partly offset by a negative $45.0 million working capital and other asset and liability movement. Six months ended June 30, 2026 June 30, 2025 Cash provided by (used in) investing activities of continuing operations (in millions) $ 166.7 $ (76.7 ) During the six months ended June 30, 2026, cash provided by investing activities of continuing operations increased by $243.4 million, primarily due to the sales of Hecla Quebec and Minera Hecla for total proceeds of $183.4 million, net of transaction costs paid. In addition, we generated net investment proceeds related to our marketable securities portfolio (which includes our SERP assets which are held in a Rabbi Trust) of $60.9 million. Capital investments of $78.4 million across our operations were consistent with the same period in 2025. Six months ended June 30, 2026 June 30, 2025 Cash (used in) provided by financing activities of continuing operations (in millions) $ (276.5 ) $ 181.1 Cash used in financing activities of continuing operations was lower than the same period in 2025 by $457.7 million primarily due to the repayment of $263.0 million of our Senior Notes. In addition, the prior period contained stock issuances under our ATM program for net proceeds of $174.1 million and net borrowings of $16.0 million on our revolving credit facility. In addition, during the six months ended June 30, 2026 we paid cash dividends on our common and preferred stock totaling $5.3 million (2025: $5.0 million) and made payments on our finance leases of $3.7 million (2025: $3.1 million). Cash flows from discontinued operations for the six months ended June 30, 2026 have been presented in our condensed consolidated statements of cash flows. The discontinued operations reflect only the period prior to the disposal of Hecla Quebec on March 25, 2026, and are therefore not comparable to the six months ended June 30, 2025, which reflects a full six months of activity. 48 Contractual Obligations, Contingent Liabilities and Commitments The table below presents our fixed, non-cancelable contractual obligations and commitments primarily related to our Senior Notes, credit facility, outstanding purchase orders (including certain capital expenditures), and lease arrangements as of June 30, 2026 (in thousands): Payments Due By Period Less than 1 year 1-3 years 4-5 years More than 5 years Total Purchase obligations (1) $ 35,870 $ — $ — $ — $ 35,870 Credit facility(2) 1,837 1,753 — — 3,590 Finance lease commitments (3) 5,821 4,844 3,633 — 14,298 Operating lease commitments (4) 1,464 3,007 2,309 5,055 11,835 Total contractual cash obligations $ 44,992 $ 9,604 $ 5,942 $ 5,055 $ 65,593 (1)Consists of open purchase orders and commitments of approximately $9.0 million, $9.4 million, $13.4 million and $4.1 million for various capital and non-capital items at Greens Creek, Lucky Friday, Keno Hill, and Other Operations, respectively. (2)The Credit Agreement provides for a $225 million revolving credit facility. We had no amount drawn and $3.5 million in letters of credit outstanding as of June 30, 2026. The amounts in the table above assume no additional amounts will be drawn in future periods, and include only the standby fee on the current undrawn balance and accrued interest. For more information on our credit facility, see Note 7 of Notes to Condensed Consolidated Financial Statements (Unaudited). (3)Includes scheduled finance lease payments of $11.2 million, $1.2 million and $1.9 million for equipment at Greens Creek, Lucky Friday, and Keno Hill, respectively. (4)We enter into operating leases in the normal course of business. Substantially all lease agreements have fixed payment terms based on the passage of time. Some lease agreements provide us with the option to renew the lease. Our future operating lease obligations would change if we exercised these renewal options and if we entered into additional operating lease arrangements. We record liabilities for costs associated with mine closure, reclamation of land and other environmental matters. At June 30, 2026, our liabilities for these matters totaled $127.6 million. Future expenditures related to closure, reclamation and environmental expenditures at our sites are difficult to estimate, although we anticipate we will incur expenditures relating to these obligations over the next 30 years. For additional information relating to our environmental obligations, see Note 11 of Notes to Condensed Consolidated Financial Statements (Unaudited). Off-Balance Sheet Arrangements At June 30, 2026, we had no existing off-balance sheet arrangements, as defined under SEC regulations, that have or are reasonably likely to have a current or future effect on our financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to investors. 49