Hecla Mining Company Has Three Fold Increase Over Prior Year

COEUR D’ALENE, ID – Hecla Mining Company President and CEO, Rob Krcmarov, said, “2025 was a transformational year for Hecla with strong operational and financial results across a number of key metrics. Our balance sheet improved significantly and we are now well positioned to invest in value surfacing initiatives focused on our best-in-class project pipeline. All three silver operations delivered strong results – Lucky Friday achieved record production, Keno Hill reached a significant milestone, achieving its first full year of profitability under Hecla’s ownership, and Greens Creek continued generating substantial cash flow. All while safety performance improved 13% company-wide.
The pending sale of Casa Berardi for up to $593 million, which is expected to close in the first quarter of this year, positions us as North America’s premier silver company. With our strengthened balance sheet and cash position, we aim to nearly double our exploration and pre-development spending to $55 million in 2026, and we will continue to focus on operational excellence and disciplined growth across our high quality silver portfolio.”
Sales increased to over $1.4 billion, an increase of 53% over the prior year, primarily reflecting higher realized precious metals and zinc prices, due largely to timing of sales in a rising price environment, and higher precious metals sales volumes. Payable silver and gold ounces sold were over 5% higher compared to the prior year.
Gross profit was $622 million, a three-fold increase over the prior year. The increase is attributable to all mines, with Keno Hill, contributing its first annual positive gross profit under Hecla ownership. Gross profit benefited from higher revenue driven by higher realized prices and higher payable silver and gold sales volumes, partially offset by higher total cost of sales related to the higher volumes sold.
Net income applicable to common stockholders was $321 million, compared to $35 million in the prior year, over a nine-fold increase. The improvement was primarily related to: 1) A 53% increase in revenue due primarily to higher payable silver and gold sold and higher realized precious metals and zinc prices. 2) $29 million lower ramp-up and suspension costs driven primarily by Keno Hill transitioning to profitability. 3) $8 million lower interest expense driven by a reduction in gross debt. 4) A decrease in depreciation expense of $23 million due primarily to lower depreciation expense at Casa Berardi.
Partly offset by: An increase in cost of sales of $93 million related to higher total cost of sales at Greens Creek, Lucky Friday and Keno Hill on higher volumes sold, partly offset by lower total cost of sales at Casa Berardi as depreciation expense decreased over the prior year. An increase in income and mining tax provision of $127 million, reflecting higher taxable income and higher Alaska Mining License Tax and Quebec Mining Duties driven by elevated profitability at Greens Creek and Casa Berardi, respectively.
Adjusted EBITDA was $670 million, nearly double the prior year. Cash provided by operating activities was $563 million, up nearly 160% over the prior year, primarily attributable to elevated metal prices realized through higher volumes of payable silver and gold ounces sold. Cash provided by operating activities was impacted by unfavorable working capital changes of approximately $28 million compared to the prior year, driven primarily by a $138 million increase (unfavorable) in accounts receivable due to elevated metal prices and timing of concentrate shipments. The increase was largely concentrated in the fourth quarter, which saw over a $65 million increase.
Capital investment was $252 million, an increase of $38 million compared to the prior year, with numerous capital projects planned in 2025 at the operating mines that were either completed or tracking well to schedule at year end. In addition, Hecla invested in corporate projects in 2025 geared toward improving business planning and operations initiatives, with more investment planned in 2026.