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Hecla Reports Fourth Quarter and Full-year 2021 Results

HL

Record annual revenue and 2nd highest cash flow from operations and free cash flow

Hecla Mining Company (NYSE:HL) today announced fourth quarter and full-year 2021 financial and operating results.

ANNUAL HIGHLIGHTS

Operational

  • Produced 12.9 million silver ounces and 201,327 gold ounces, meeting production and cost guidance.
  • Developed the Underhand Closed Bench (UCB) mining method at Lucky Friday, which contributed to the 75% increase in silver production and showed improvements in managing seismicity.
  • Casa Berardi achieved record throughput and recoveries improved by 4%, producing 134,511 gold ounces.
  • Second highest reserves for both silver and gold in Company history.

Financial

  • Record sales of $807.5 million with net income of $35.1 million.
  • Record Adjusted EBITDA of $278.8 million.1
  • Second highest cash flow from operations of $220.3 million and free cash flow of $111.3 million.
  • Record exploration and pre-development expenditures of $47.9 million.
  • Returned $20.7 million, or 19%, of free cash flow to our common and preferred shareholders through dividends.

Environmental, Social, Governance

  • Strong safety performance with an All-Injury Frequency Rate of 1.45, 40% below the U.S. average.
  • Net neutral for scope 1 & 2 emissions with only 76,000 tonnes that were offset by carbon credits.
  • Successfully managed the impacts of COVID-19.

"2021 was an outstanding year for Hecla as we generated record revenues and adjusted EBITDA resulting in the second highest free cash flow in our 130-year history,” said Phillips S. Baker Jr., President and CEO. “The year also positions Hecla for future success with our exploration program delivering our highest silver reserves in more than 20 years and the Lucky Friday’s establishment of a new, innovative mining method that should be both safer and more productive. This method, which we call the Underhand Closed Bench method will allow the Lucky Friday to increase projected production in 2022 by almost a million silver ounces over 2021, which was a million and half more than 2020.”

Baker continued, “Since Hecla is not only the largest producer of silver in the United States but also has the largest silver reserve base in the U.S., our stakeholders are uniquely positioned to benefit from the growing demand for silver in the transition to clean energy.”

FINANCIAL OVERVIEW

In Thousands unless stated otherwise

4Q-2021

3Q-2021

2Q-2021

1Q-2021

4Q-2020

FY 2021

FY 2020

FINANCIAL AND PRODUCTION SUMMARY

Sales

$

185,078

$

193,560

$

217,983

$

210,852

$

188,890

$

807,473

$

691,873

Cost of Sales*

$

131,837

$

158,332

$

156,052

$

143,451

$

137,978

$

589,672

$

530,773

Gross profit

$

53,241

$

35,228

$

61,931

$

67,401

$

50,912

$

217,801

$

161,100

Income (loss) applicable to common stockholders

$

11,737

$

(1,117

)

$

2,610

$

21,313

$

2,967

$

34,543

$

(10,009

)

Basic income (loss) per common share (in dollars)

$

0.02

$

$

0.05

$

0.04

$

0.01

$

0.06

$

(0.02

)

Adjusted EBITDA 1

$

58,249

$

49,414

$

84,507

$

86,610

$

57,773

$

278,780

$

230,684

Net Debt to Adjusted EBITDA1

1.1

1.7

Cash provided by operating activities

$

53,355

$

42,742

$

86,304

$

37,936

$

64,901

$

220,337

$

180,793

Capital expenditures

$

(28,838

)

$

(26,899

)

$

(31,898

)

$

(21,413

)

$

(36,634

)

$

(109,048

)

$

(91,016

)

Free Cash Flow 2

$

24,517

$

15,843

$

54,406

$

16,523

$

28,267

$

111,289

$

89,777

Silver ounces produced

3,226,927

2,676,084

3,524,783

3,459,446

3,352,336

12,887,240

13,542,957

Silver payable ounces sold

2,606,622

2,581,690

3,415,464

3,030,026

3,227,951

11,633,802

12,305,917

Gold ounces produced

47,977

42,207

59,139

52,004

49,014

201,327

208,962

Gold payable ounces sold

44,156

53,000

47,168

57,286

$

43.144

201,610

202,694

*Cost of sales is comprised of cost of sales and other direct production costs and depreciation, depletion and amortization referred to herein as “cost of sales”.

Consolidated silver cost of sales for 2021 were $310.9 million; cash cost and all-in sustaining costs ("AISC") per silver ounce, after by-product credits, for the year were $1.37 and $9.19, respectively.3,4 The year over year decrease in cash cost and AISC per silver ounce (each after by-product credits) was due to higher silver production and by-product credits as well as lower treatment charges, partially offset by higher operating costs and additional sustaining capital.3,4 Consolidated gold cost of sales for the year were $278.8 million, cash cost and AISC per gold ounce (each after by-product credits), were $1,127 and $1,374, respectively.3,4 The year over year increase in cash cost was due to higher production costs partially offset by higher gold production with AISC also impacted by lower sustaining capital.

Income applicable to common stockholders increased in the fourth quarter 2021 over the third quarter due to:

  • Gross profit increased by 51% due primarily to increased production at all three operations.
  • Exploration and pre-development expense decreased by $4.2 million due to third-party assays being delayed and the completion of seasonal exploration programs in the prior quarter.
  • Increase in benefit from income and mining taxes of $21.1 million due to a partial release of the deferred tax asset valuation allowance.
  • Partially offsetting these increases are realized and unrealized losses on derivatives of $25.1 million compared to a third quarter gain of $9.3 million.

Income applicable to common stockholders increased in 2021 over 2020 due to:

  • Gross profit increased by 35% due to higher metal prices and a full year of production at Lucky Friday.
  • Lower interest expense by $7.6 million as a result of the revolving credit facility being undrawn in 2021 and 2020 debt refinancing expenses.
  • Income tax benefits of $29.6 million, compared to the 2020 provision of $8.2 million through the use of tax loss carryforwards and a partial release of the deferred tax asset valuation allowance.

The above items were partially offset by:

  • Increase in exploration and pre-development expense of $29.6 million.
  • Combined realized and unrealized losses on derivatives and investments of $35.8 million in 2021, compared to a loss of $11.8 million in 2020.
  • Provision for closed operations and environmental matters of $14.6 million, an increase of $10.6 million over 2020 primarily due to a $6.5 million lawsuit settlement payment for a 1989 indemnification agreement and a $5.0 million increase for estimated reclamation costs at two closed sites.

Cash provided by operating activities increased $39.5 million year over year and $10.6 million in the fourth quarter compared to the third quarter of 2021 due to increased gross margin, partially offset by unfavorable working capital changes. The yearly increase was also impacted by higher exploration and pre-development spending, which declined quarter over quarter due to seasonal variances.

Adjusted EBITDA increased $8.8 million in the fourth quarter compared to the third quarter of 2021, and was $278.8 million for the full-year 2021, an increase of $48.1 million over 2020, due to higher sales margins partially offset by higher exploration and pre-development spending.1

Fourth quarter capital expenditures totaled $28.8 million, including $9.5 million at Greens Creek, $9.5 million at Casa Berardi, and $9.1 million at Lucky Friday. Capital expenditures for the year 2021 totaled $109.0 million compared to $91.0 million in 2020.

Forward Sales Contracts for Base Metals and Foreign Currency

The Company uses financially settled forward sales contracts to manage exposures to changes in prices of zinc and lead. At December 31, 2021, the Company had contracts covering approximately 62% of the forecasted payable zinc production (through 2024) at an average price of $1.29 per pound, and 49% of the forecasted payable lead production (through 2024) at an average price of $0.99 per pound. Effective November 1, 2021, the Company elected to apply hedge accounting for all then open and future financially settled forward sales contracts, which will reduce income statement volatility for unrealized gains and losses on open positions.

The Company also enters into foreign exchange forward contracts to buy Canadian dollars. At December 31, 2021, the Company had hedged approximately 76% of forecasted Canadian dollar direct production costs for 2022 at an average CAD/USD rate of 1.30, 51% for 2023 at 1.30, 18% for 2024 at 1.31, and 5% for 2025 at 1.28. The Company has also hedged approximately 34% of capital costs for 2022 at 1.29.

OPERATIONS OVERVIEW

Greens Creek Mine - Alaska

Dollars are in thousands except cost per ton

4Q-2021

3Q-2021

2Q-2021

1Q-2021

4Q-2020

FY 2021

FY 2020

GREENS CREEK

Tons of ore processed

221,814

211,142

214,931

194,080

189,092

841,967

818,408

Total production cost per ton

$

174.55

$

181.60

$

171.13

$

182.61

$

195.02

$

177.30

$

179.37

Ore grade milled - Silver (oz./ton)

12.60

11.14

14.52

16.01

15.17

13.51

15.65

Ore grade milled - Gold (oz./ton)

0.07

0.07

0.08

0.09

0.07

0.08

0.08

Ore grade milled - Lead (%)

2.61

2.68

3.14

3.06

2.84

2.87

3.13

Ore grade milled - Zinc (%)

6.28

7.05

7.57

7.62

6.96

7.11

7.58

Silver produced (oz.)

2,262,635

1,837,270

2,558,447

2,584,870

2,330,664

9,243,222

10,494,726

Gold produced (oz.)

10,229

9,734

12,859

13,266

10,276

46,088

48,491

Lead produced (tons)

4,731

4,591

5,627

4,924

4,404

19,873

21,400

Zinc produced (tons)

12,457

13,227

14,610

13,354

11,956

53,648

56,814

Sales

$

87,865

$

84,806

$

113,763

$

98,409

$

95,602

$

384,843

$

327,820

Cost of sales

$

(49,252

)

$

(55,193

)

$

(55,488

)

$

(53,180

)

$

(57,252

)

$

(213,113

)

$

(210,748

)

Gross profit

$

38,613

$

29,613

$

58,275

$

45,229

$

38,350

$

171,730

$

117,072

Cash flow from operations

$

51,328

$

43,098

$

69,821

$

44,468

$

58,268

$

208,715

$

176,975

Capital expenditures

$

(9,544

)

$

(6,228

)

$

(6,339

)

$

(1,772

)

$

(7,155

)

$

(23,883

)

$

(19,685

)

Free cash flow

$

41,784

$

36,870

$

63,482

$

42,696

$

51,113

$

184,832

$

157,290

Cost of sales in 2021 increased to $213.1 million compared to $210.7 million in 2020 due to higher mining costs, as lower capitalized development footage resulted in an increased portion of costs allocated to production, and higher concentrate freight costs, as rates increased due to market conditions. Cash cost and AISC per silver ounce (each after by-product credits) were $(0.65) and $3.19, respectively, decreasing year over year due to higher by-product credits and lower treatment costs. 3,4

Lucky Friday Mine - Idaho

Dollars are in thousands except cost per ton

4Q-2021

3Q-2021

2Q-2021

1Q-2021

4Q-2020

FY 2021

FY 2020

LUCKY FRIDAY

Tons of ore processed

80,097

78,227

82,442

81,071

69,257

321,837

179,208

Total production cost per ton

$

198.83

$

190.66

$

199.48

$

181.28

$

213.82

$

191.50

$

251.49

Ore grade milled - Silver (oz./ton)

12.54

11.21

11.60

11.18

12.53

11.64

11.85

Ore grade milled - Lead (%)

8.11

7.22

7.55

7.51

7.74

7.60

7.49

Ore grade milled - Zinc (%)

3.33

3.30

3.44

3.70

3.85

3.44

3.88

Silver produced (oz.)

955,401

831,532

913,294

863,901

830,200

3,564,128

2,031,874

Lead produced (tons)

6,131

5,313

5,913

5,780

5,103

23,137

12,727

Zinc produced (tons)

2,296

2,319

2,601

2,753

2,457

9,969

6,298

Sales

$

32,938

$

29,783

$

39,645

$

29,122

$

27,928

$

131,488

$

63,025

Cost of sales

$

(23,251

)

$

(23,591

)

$

(27,901

)

$

(22,795

)

$

(20,919

)

$

(97,538

)

$

(56,706

)

Gross profit

$

9,687

$

6,192

$

11,744

$

6,327

$

7,009

$

33,950

$

6,319

Cash flow from operations

$

16,953

$

15,017

$

19,681

$

10,943

$

7,217

$

62,594

$

(870

)

Capital expenditures

$

(9,109

)

$

(9,133

)

$

(5,731

)

$

(5,912

)

$

(11,148

)

$

(29,885

)

$

(25,776

)

Free cash flow

$

7,844

$

5,884

$

13,950

$

5,031

$

(3,931

)

$

32,709

$

(26,646

)

Cost of sales in 2021 increased to $97.5 million compared to $56.7 million in 2020 reflecting a full year of production following the strike ending in 2020. Cash cost and AISC per silver ounce (each after by-product credits) were $6.60 and $14.34, respectively, decreasing year over year due to higher production and by-product credits partially offset by higher costs. 3,4

In 2021, we tested and implemented the UCB mining method. The UCB method is a new, productive mining method developed by Hecla in an effort to proactively control fault-slip seismicity in deep, high-stress, narrow-vein mining. The method uses bench drilling and blasting methods to fragment significant vertical and lateral extents of the vein beneath a top cut taken along the strike of the vein and under engineered backfill. The method is accomplished without the use of drop raises or lower mucking drives which may result in local stress concentrations and increased exposure to seismic events. Large blasts using up to 35,000 lbs. of pumped emulsion and programmable electronic detonators fragment up to 350 feet of strike length to a depth of approximately 30 feet. These large blasts proactively induce fault-slip seismicity at the time of the blast and shortly after it. This blasted corridor is then mined underhand for two cuts. As these cuts are mined, little to no blasting is done to advance them. Dilution is controlled by supporting the hanging wall and footwall as the mining progresses through the blasted ore. The entire cycle repeats and stoping advances downdip, under fill, and in a de-stressed zone. The method allows for greater control of fault-slip seismic events, significantly improving safety. In addition, a notable productivity increase has been achieved by reducing seismic delays and utilizing bulk mining techniques. In 2021, 86% of the tons mined were produced through the UCB method.

Casa Berardi - Quebec

Dollars are in thousands except cost per ton

4Q-2021

3Q-2021

2Q-2021

1Q-2021

4Q-2020

FY 2021

FY 2020

CASA BERARDI

Tons of ore processed - underground

161,355

167,435

178,908

186,919

185,335

694,617

658,271

Tons of ore processed - surface pit

225,662

230,708

195,775

181,484

197,646

833,629

625,430

Tons of ore processed - total

387,017

398,143

374,683

368,403

382,981

1,528,246

1,283,701

Surface tons mined - ore and waste

1,507,457

1,483,231

2,033,403

1,991,087

1,493,706

7,015,178

5,559,302

Total production cost per ton

$

108.82

$

86.95

$

99.36

$

99.67

$

98.33

$

98.60

$

105.71

Ore grade milled - Gold (oz./ton) - underground

0.165

0.155

0.148

0.147

0.147

0.161

0.136

Ore grade milled - Gold (oz./ton) - surface pit

0.072

0.037

0.055

0.048

0.052

0.056

0.051

Ore grade milled - Gold (oz./ton) - combined

0.110

0.087

0.100

0.120

0.123

0.104

0.117

Ore grade milled - Silver (oz./ton)

0.02

0.02

0.03

0.04

0.03

0.03

0.02

Gold produced (oz.) - underground

22,910

24,170

23,441

27,569

27,261

98,090

89,521

Gold produced (oz.) - surface pit

14,356

5,552

7,892

8,621

10,319

36,421

31,971

Total Gold produced (oz.)

37,266

29,722

31,333

36,190

37,580

134,511

121,492

Total Silver produced (oz.)

7,967

7,012

7,917

10,675

8,858

33,571

24,142

Sales

$

60,054

$

56,065

$

56,122

$

72,911

$

59,493

$

245,152

$

209,224

Cost of sales

$

(57,069

)

$

(58,164

)

$

(54,669

)

$

(59,927

)

$

(53,521

)

$

(229,829

)

$

(194,414

)

Gross profit (loss)

$

2,985

$

(2,099

)

$

1,453

$

12,984

$

5,972

$

15,323

$

14,810

Cash flow from operations

$

12,153

$

21,440

$

17,495

$

32,229

$

25,696

$

83,317

$

88,066

Capital expenditures

$

(9,537

)

$

(11,488

)

$

(14,745

)

$

(13,847

)

$

(16,427

)

$

(49,617

)

$

(40,840

)

Free cash flow

$

2,616

$

9,952

$

2,750

$

18,382

$

9,269

$

33,700

$

47,226

Full-year 2021 cost of sales was $229.8 million, cash cost and AISC per ounce, after by-product credits, were $1,125 and $1,399 respectively.3,4 Year over year decline in cash cost and AISC per ounce was due to higher gold production in 2021; AISC per ounce was also impacted by lower sustaining capital, partially offset by higher exploration spending. 3,4

Nevada Operations

Dollars are in thousands except cost per ton

4Q-2021

3Q-2021

2Q-2021

1Q-2021

4Q-2020

FY 2021

FY 2020

NEVADA OPERATIONS

Tons of ore processed

2,185

11,953

38,947

16,459

69,544

27,984

Total production cost per ton

$

200.72

$

374.46

$

161.50

$

360.72

$

$

132.64

$

892.09

Ore grade milled - Gold (oz./ton)

0.226

0.234

0.41

0.185

0.321

1.232

Silver produced (oz.)

924

270

45,125

46,319

37,443

Gold produced (oz.)

482

2,751

14,947

2,548

20,728

31,756

Cash flow from operations

$

(2,060

)

$

19,163

$

(573

)

$

855

$

1,897

$

17,385

$

13,696

Capital additions

$

(277

)

$

(29

)

$

(5,075

)

$

(89

)

$

(2,154

)

$

(5,470

)

$

(4,003

)

Free cash flow

$

(2,337

)

$

19,134

$

(5,648

)

$

766

$

(257

)

$

11,915

$

9,693

2021 production and revenue was generated from processing previously stockpiled ore at third-party processing facilities. Exploration activities at Midas and development of a decline to the Hatter Graben area at Hollister are ongoing, with underground exploration drilling of Hatter Graben commencing from available platforms in the fourth quarter of 2021.

EXPLORATION AND PRE-DEVELOPMENT

Exploration and pre-development expenses totaled $12.9 million for the fourth quarter and $47.9 million for the full year (a Company record), an increase of $29.6 million compared to 2020.

For the year ended 2021, the Company reported the second highest silver and gold reserves at 200 million ounces and 2.7 million ounces, respectively. Silver reserves increased 6% year over year with Greens Creek increasing reserves by 12% to 125 million ounces, the second highest in the mine’s history since 2002. Silver and gold inferred resources increased by 8% and 2%, respectively. A breakdown of the Company’s reserves and resources is located in Table A at the end of this news release.

For further details on the Company’s 2021 exploration and pre-development program and 2022 planned expenditures as well as reserves and resources at year-end 2021, please refer to the news release entitled “Hecla Reports 2nd Highest Silver Reserves in Company History” released on February 17, 2022.

2022 ESTIMATES5

The Company is providing a three-year production outlook and estimates of costs, capital and exploration and pre-development expenses for 2022. Cost guidance includes planned COVID-19 management costs and 5% inflation, which is being experienced throughout the industry. The guidance below excludes any unforeseen disruptions related to COVID-19 and its variants.

2022 Production Outlook

Silver Production
(Moz)

Gold Production
(Koz)

Silver Equivalent
(Moz)

Gold Equivalent
(Koz)

Greens Creek *

8.6 - 8.9

40 - 43

20.7 - 21.2

268 - 275

Lucky Friday *

4.3 - 4.6

N/A

8.9 - 9.3

116 - 120

Casa Berardi

N/A

125 - 132

9.7 - 10.2

125 - 132

2022 Total

12.9 - 13.5

165 - 175

39.3 - 40.7

509 - 527

2023 Total

13.5 - 14.5

175 - 185

40.7 - 42.5

527 - 550

2024 Total

14.5 - 15.1

185 - 195

42.5 - 43.8

550 - 567

*Equivalent ounces include lead and zinc production

2022 Cost Outlook

Costs of Sales
(million)

Cash cost, after by-product
credits, per
silver/gold ounce3

AISC, after by-product
credits, per produced
silver/gold ounce4

Greens Creek

$230

$0.75 - $2.50

$6.50 - $8.50

Lucky Friday

$115

$0.75 - $2.00

$7.25 - $9.25

Total Silver

$345

$0.75 - $2.50

$9.75 - $11.75

Casa Berardi (Total Gold)

$210

$1,175 - $1,325

$1,450 - $1,600

2022 Capital and Exploration Outlook

Capital expenditures

$135 million

Exploration and Pre-development expenditures

$45 million

DIVIDENDS

Common Stock

TheBoard of Directors declared a quarterly cash dividend of $0.00625 per share of common stock, consisting of $0.00375 per share for the minimum dividend component and $0.0025 per share for the silver-linked component. The common stock dividend is payable on or about March 18, 2022, to stockholders of record on March 9, 2022. The realized silver price was $23.49 in the fourth quarter satisfying the criterion for the silver-linked component under the Company's common stock dividend policy.

Preferred Stock

TheBoard of Directors elected to declare a quarterly cash dividend of $0.875 per share of preferred stock, payable on or about April 1, 2022, to stockholders of record on March 15, 2022.

CONFERENCE CALL AND WEBCAST

A conference call and webcast will be held Tuesday, February 22, at 10:00 a.m. Eastern Time to discuss these results. We recommend that you dial in at least 10 minutes before the call commencement. You may join the conference call by dialing toll-free 1-833-350-1380 or for international dialing 1-647-689-6934. The Participant Code is 3975176 and must be provided when dialing in. Hecla's live and archived webcast can be accessed at www.hecla-mining.com under Investors.

VIRTUAL INVESTOR EVENT

Hecla will be holding a Virtual Investor Event on Tuesday, February 22, from 1:00 p.m. to 2:30 p.m. Eastern Time.

Hecla invites shareholders, investors, and other interested parties to schedule a personal, 30-minute virtual meeting (video or telephone) with a member of senior management to discuss Exploration, Operations, or general matters. Click on the link below to schedule a call (or copy and paste the link into your web browser.). You can select a topic once you have entered the meeting calendar. If you are unable to book a time, either due to high demand or for other reasons, please reach out to Russell Lawlar, Sr. Vice President - CFO and Treasurer at rlawlar@hecla-mining.com or 208-769-4130.

One-on-One meeting URL: https://calendly.com/2022-february-vie

ABOUT HECLA

Founded in 1891, Hecla Mining Company (NYSE:HL) is the largest silver producer in the United States. In addition to operating mines in Alaska, Idaho, and Quebec, Canada, the Company owns a number of exploration and pre-development properties in world-class silver and gold mining districts throughout North America.

NOTES

Non-GAAP Financial Measures

Non-GAAP financial measures are intended to provide additional information only and do not have any standard meaning prescribed by United States generally accepted accounting principles (GAAP). These measures should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. The non-GAAP financial measures cited in this release and listed below are reconciled to their most comparable GAAP measure at the end of this release.

(1) Adjusted EBITDA is a non-GAAP measurement, a reconciliation of which to net income, the most comparable GAAP measure, can be found at the end of the release. Adjusted EBITDA is a measure used by management to evaluate the Company's operating performance but should not be considered an alternative to net income, or cash provided by operating activities as those terms are defined by GAAP, and does not necessarily indicate whether cash flows will be sufficient to fund cash needs. In addition, the Company may use it when formulating performance goals and targets under its incentive program. Net debt to adjusted EBITDA is a non-GAAP measurement, a reconciliation of which to debt and net income (loss), the most comparable GAAP measurements, can be found at the end of the release. It is an important measure for management to measure relative indebtedness and the ability to service the debt relative to its peers. It is calculated as total debt outstanding less total cash on hand divided by adjusted EBITDA.

(2) Free cash flow is a non-GAAP measure calculated as cash provided by operating activities less additions to properties, plants and equipment. Cash provided by operating activities for the Greens Creek, Lucky Friday, Casa Berardi, and Nevada operating segments excludes exploration and pre-development expense, as these are discretionary expenditures and not a component of the mines’ operating performance.

(3) Cash cost, after by-product credits, per silver and gold ounce is a non-GAAP measurement, a reconciliation of which to cost of sales, and other direct production costs and depreciation, depletion and amortization can be found at the end of the release. It is an important operating statistic that management utilizes to measure each mine's operating performance. It also allows the benchmarking of performance of each mine versus those of our competitors. As a primary silver mining company, management also uses the statistic on an aggregate basis - aggregating the Greens Creek and Lucky Friday mines - to compare performance with that of other silver mining companies, and aggregating Casa Berardi and the Nevada operations, to compare its performance with other gold mining companies. Similarly, the statistic is useful in identifying acquisition and investment opportunities as it provides a common tool for measuring the financial performance of other mines with varying geologic, metallurgical and operating characteristics. In addition, the Company may use it when formulating performance goals and targets under its incentive program. Cash cost, after by-product credits, per silver ounce is not presented for Lucky Friday for the first nine-months of 2020, as production was limited due to the strike and subsequent ramp-up and results are not comparable to those from prior periods and are not indicative of future operating results under full production.

(4) All-in sustaining cost (AISC), after by-product credits, per silver and gold ounce is a non-GAAP measurement, a reconciliation of which to cost of sales and other direct production costs and depreciation, depletion and amortization can be found at the end of the release. AISC, after by-product credits, includes cost of sales and other direct production costs, expenses for reclamation and exploration at the mine sites, corporate exploration related to sustaining operations, and all site sustaining capital costs. AISC, after by-product credits, is calculated net of depreciation, depletion, and amortization and by-product credits.

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. Management believes that all-in sustaining costs is a non-GAAP measure that provides additional information to management, investors and analysts to help (i) in the understanding of the economics of our operations and performance compared to other producers and (ii) in the transparency by better defining the total costs associated with production. Similarly, the statistic is useful in identifying acquisition and investment opportunities as it provides a common tool for measuring the financial performance of other mines with varying geologic, metallurgical and operating characteristics. In addition, the Company may use it when formulating performance goals and targets under its incentive program.

Other

(5) Expectations for 2022 include silver, gold, lead and zinc production from Greens Creek, Lucky Friday and Casa Berardi converted using Au $1,700/oz, Ag $22/oz, Zn $1.50/lb., and Pb 1.00$/lb. Numbers may be rounded.

Cautionary Statement Regarding Forward Looking Statements, Including 2022 Outlook

This news release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbor created by such sections and other applicable laws, including Canadian securities laws. Words such as “may”, “will”, “should”, “expects”, “intends”, “projects”, “believes”, “estimates”, “targets”, “anticipates” and similar expressions are used to identify these forward-looking statements. Such forward-looking statements may include, without limitation: (i) new mining method implemented at Lucky Friday should improve safety and increase productivity; (ii) increased demand for silver due to transition to clean energy; and; (iii) Mine-specific and Company-wide 2022 estimates of future production, sales and costs of sales, as well as cash cost and AISC per ounce (in each case after by-product credits) and Company-wide estimated spending on capital, exploration and pre-development for 2022. The material factors or assumptions used to develop such forward-looking statements or forward-looking information include that the Company’s plans for development and production will proceed as expected and will not require revision as a result of risks or uncertainties, whether known, unknown or unanticipated, to which the Company’s operations are subject.

Estimates or expectations of future events or results are based upon certain assumptions, which may prove to be incorrect. Such assumptions, include, but are not limited to: (a) there being no significant change to current geotechnical, metallurgical, hydrological and other physical conditions; (b) permitting, development, operations and expansion of the Company’s projects being consistent with current expectations and mine plans; (c) political/regulatory developments in any jurisdiction in which the Company operates being consistent with its current expectations; (d) the exchange rate for the Canadian dollar to the U.S. dollar, being approximately consistent with current levels; (e) certain price assumptions for gold, silver, lead and zinc; (f) prices for key supplies being approximately consistent with current levels; (g) the accuracy of our current mineral reserve and mineral resource estimates; (h) there being no significant changes to our plans for 2022 and beyond due to COVID-19 or any other public health issue, including, but not limited to with respect to availability of employees, vendors and equipment; and (i) the Company’s plans for development and production will proceed as expected and will not require revision as a result of risks or uncertainties, whether known, unknown or unanticipated. Where the Company expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, such statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by the “forward-looking statements.” Such risks include, but are not limited to gold, silver and other metals price volatility, operating risks, currency fluctuations, increased production costs and variances in ore grade or recovery rates from those assumed in mining plans, community relations, conflict resolution and outcome of projects or oppositions, litigation, political, regulatory, labor and environmental risks, and exploration risks and results, including that mineral resources are not mineral reserves, they do not have demonstrated economic viability and there is no certainty that they can be upgraded to mineral reserves through continued exploration. For a more detailed discussion of such risks and other factors, see the Company’s 2020 Form 10-K, filed on February 18, 2021, with the Securities and Exchange Commission (SEC), as well as the Company’s other SEC filings, including the Company's 2021 10-K expected to be filed on February 22, 2022. The Company does not undertake any obligation to release publicly revisions to any “forward-looking statement,” including, without limitation, outlook, to reflect events or circumstances after the date of this news release, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws. Investors should not assume that any lack of update to a previously issued “forward-looking statement” constitutes a reaffirmation of that statement. Continued reliance on “forward-looking statements” is at investors’ own risk.

Cautionary Statements to Investors on Reserves and Resources

This news release uses the terms “mineral resources,” “measured mineral resources,” “indicated mineral resources” and “inferred mineral resources.” Mineral resources that are not mineral reserves do not have demonstrated economic viability. You should not assume that all or any part of measured or indicated mineral resources will ever be converted into mineral reserves. Further, inferred mineral resources have a great amount of uncertainty as to their existence and as to whether they can be mined legally or economically, and an inferred mineral resource may not be considered when assessing the economic viability of a mining project, and may not be converted to a mineral reserve. On October 31, 2018, the SEC adopted new mining disclosure rules (“S-K 1300”) that is more closely aligned with current industry and global regulatory practices and standards, including National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) which the Company complies with because the Company also is a “reporting issuer” under Canadian securities laws. While S-K 1300 is more closely aligned with NI 43-101 than the prior SEC mining disclosure rules, there are some differences. NI 43-101 is a rule developed by the Canadian Securities Administrators, which established standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. Unless otherwise indicated, all resource and reserve estimates contained in this press release have been prepared in accordance with NI 43-101, as well as S‑K 1300.

Qualified Person (QP)

Kurt D. Allen, MSc., CPG, VP - Exploration of Hecla Mining Company and Keith Blair, MSc., CPG, Chief Geologist of Hecla Limited, who serve as a Qualified Person under S-K 1300 and “NI 43-101”, supervised the preparation of the scientific and technical information concerning Hecla’s mineral projects in this news release. Technical Report Summaries for each of the Company’s material properties are filed as exhibits 96.1, 96.2 and 96.3 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, and are available at www.sec.gov. Information regarding data verification, surveys and investigations, quality assurance program and quality control measures and a summary of analytical or testing procedures for the Greens Creek Mine are contained in a technical report titled “Technical Report for the Greens Creek Mine” effective date December 31, 2018, and for the Lucky Friday Mine are contained in a technical report titled “Technical Report for the Lucky Friday Mine Shoshone County, Idaho, USA” effective date April 2, 2014, for Casa Berardi are contained in a technical report titled “Technical Report on the mineral resource and mineral reserve estimate for Casa Berardi Mine, Northwestern Quebec, Canada” effective date December 31, 2018 (the “Casa Berardi Technical Report”), and for the San Sebastian Mine, Mexico, are contained in a technical report prepared for Hecla titled “Technical Report for the San Sebastian Ag-Au Property, Durango, Mexico” effective date September 8, 2015. Also included in these three technical reports is a description of the key assumptions, parameters and methods used to estimate mineral reserves and resources and a general discussion of the extent to which the estimates may be affected by any known environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant factors. Information regarding data verification, surveys and investigations, quality assurance program and quality control measures and a summary of sample, analytical or testing procedures for the Fire Creek Mine are contained in a technical report prepared for Klondex Mines, dated March 31, 2018; the Hollister Mine dated May 31, 2017, amended August 9, 2017; and the Midas Mine dated August 31, 2014, amended April 2, 2015. Copies of these technical reports are available under Hecla’s and Klondex’s profiles on SEDAR at www.sedar.com. Mr. Allen and Mr. Blair reviewed and verified information regarding drill sampling, data verification of all digitally collected data, drill surveys and specific gravity determinations relating to all the mines. The review encompassed quality assurance programs and quality control measures including analytical or testing practice, chain-of-custody procedures, sample storage procedures and included independent sample collection and analysis. This review found the information and procedures meet industry standards and are adequate for Mineral Resource and Mineral Reserve estimation and mine planning purposes.

HECLA MINING COMPANY

Condensed Consolidated Statements of Income (Loss)

(dollars and shares in thousands, except per share amounts - unaudited)

Fourth Quarter
Ended

Third Quarter
Ended

Twelve Months Ended

December 31,
2021

September 30,
2021

December 31,
2021

December 31,
2020

Sales of products

$

185,078

$

193,560

$

807,473

$

691,873

Cost of sales and other direct production costs

98,962

112,542

417,879

382,663

Depreciation, depletion and amortization

32,875

45,790

171,793

148,110

Total cost of sales

131,837

158,332

589,672

530,773

Gross profit

53,241

35,228

217,801

161,100

Other operating expenses:

General and administrative

6,585

8,874

34,570

35,561

Exploration and pre-development

12,862

17,108

47,901

18,295

Other operating expense

3,375

3,344

14,240

10,854

Loss (gain) on disposition of property, plants, equipment and mineral interests

326

(390

)

87

572

Ramp-up and suspension costs

5,998

6,910

23,012

24,911

Provision for closed operations and reclamation

2,274

7,564

14,571

3,929

31,420

43,410

134,381

94,122

Income (loss) from operations

21,821

(8,182

)

83,420

66,978

Other (expense) income:

Fair value adjustments, net

(25,141

)

9,287

(35,792

)

(11,806

)

Foreign exchange (loss) gain, net

393

3,995

417

(4,605

)

Other net expense

(382

)

(143

)

(574

)

(2,256

)

Interest expense

(10,461

)

(10,469

)

(41,945

)

(49,569

)

(35,591

)

2,670

(77,894

)

(68,236

)

(Loss) income before income taxes

(13,770

)

(5,512

)

5,526

(1,258

)

Income and mining tax benefit (provision)

25,645

4,533

29,569

(8,199

)

Net income (loss)

11,875

(979

)

35,095

(9,457

)

Preferred stock dividends

(138

)

(138

)

(552

)

(552

)

Income (loss) applicable to common stockholders

$

11,737

$

(1,117

)

$

34,543

$

(10,009

)

Basic income (loss) per common share after preferred dividends (in cents)

$

0.022

$

(0.002

)

$

0.064

$

(0.019

)

Diluted income (loss) per common share after preferred dividends (in cents)

$

0.022

$

(0.002

)

$

0.064

$

(0.019

)

Weighted average number of common shares outstanding basic

538,124

536,966

536,192

527,329

Weighted average number of common shares outstanding diluted

543,134

536,966

542,176

527,329

HECLA MINING COMPANY

Condensed Consolidated Balance Sheets

(dollars and shares in thousands – unaudited)

December 31, 2021

December 31, 2020

ASSETS

Current assets:

Cash and cash equivalents

$

210,010

$

129,830

Accounts receivable

44,586

39,193

Inventories

67,765

96,175

Other current assets

19,266

19,114

Total current assets

341,627

284,312

Investments

10,844

15,148

Restricted cash and investments

1,053

1,053

Properties, plants, equipment and mineral interests, net

2,310,810

2,378,074

Operating lease right-of-use assets

12,435

10,628

Deferred tax assets

45,562

2,912

Other non-current assets

6,477

8,083

Total assets

$

2,728,808

$

2,700,210

LIABILITIES

Current liabilities:

Accounts payable and accrued liabilities

$

68,100

$

68,516

Accrued payroll and related benefits

28,714

31,807

Accrued taxes

12,306

5,774

Finance leases

5,612

6,491

Accrued reclamation and closure costs

9,259

5,582

Operating leases

2,486

3,008

Accrued interest

14,454

14,157

Derivatives liabilities

19,353

11,737

Other current liabilities

99

138

Total current liabilities

160,383

147,210

Finance leases

7,776

9,274

Accrued reclamation and closure costs

103,972

110,466

Long-term debt

508,095

507,242

Long-term operating leases

9,950

7,634

Deferred income tax liability

149,706

156,091

Non-current pension liability

4,673

44,144

Derivatives liabilities

18,528

18

Other non-current liabilities

4,938

4,346

Total liabilities

968,021

986,425

STOCKHOLDERS’ EQUITY

Preferred stock

39

39

Common stock

136,391

134,629

Capital surplus

2,034,485

2,003,576

Accumulated deficit

(353,651

)

(368,074

)

Accumulated other comprehensive loss

(28,456

)

(32,889

)

Treasury stock

(28,021

)

(23,496

)

Total stockholders’ equity

1,760,787

1,713,785

Total liabilities and stockholders’ equity

$

2,728,808

$

2,700,210

Common shares outstanding

538,139

531,666

HECLA MINING COMPANY

Condensed Consolidated Statements of Cash Flows

(dollars in thousands - unaudited)

Fourth Quarter Ended

Third Quarter Ended

Twelve Months Ended

December 31,
2021

September 30,
2021

December 31,
2021

December 31,
2020

OPERATING ACTIVITIES

Net income (loss)

$

11,875

$

(979

)

$

35,095

$

(9,457

)

Non-cash elements included in net income (loss):

Depreciation, depletion and amortization

32,851

46,939

172,651

155,006

Loss (gain) on disposition of properties, plants, equipment and mineral interests

326

(390

)

87

572

Provision for reclamation and closure costs

3,693

1,638

11,514

6,189

Deferred income taxes

(30,163

)

(10,141

)

(48,049

)

(3,818

)

Stock compensation

1,308

1,472

6,082

6,458

Amortization of loan origination fees

489

488

1,895

3,666

Fair value adjustments, net

23,018

(13,192

)

15,040

(4,690

)

Foreign exchange (gain) loss

(694

)

(3,842

)

(79

)

2,680

Adjustment of inventory to net realizable value

93

6,524

Other non-cash charges, net

681

681

1,794

Change in assets and liabilities:

Accounts receivable

(1,607

)

5,634

(5,405

)

(1,080

)

Inventories

(5,453

)

16,653

16,919

(13,208

)

Other current and non-current assets

(3,328

)

(2,475

)

(1,678

)

2,381

Accounts payable and accrued liabilities

13,894

(8,200

)

(795

)

19,379

Accrued payroll and related benefits

3,099

3,522

1,270

14,445

Accrued taxes

3,727

3,729

6,457

3,561

Accrued reclamation and closure costs and other non-current liabilities

(361

)

1,793

2,128

(3,085

)

Cash provided by operating activities

53,355

42,742

220,337

180,793

INVESTING ACTIVITIES

Additions to properties, plants, equipment and mineral interests

(28,838

)

(26,899

)

(109,048

)

(91,016

)

Purchase of carbon credits

(669

)

(200

)

(869

)

Proceeds from sale or exchange of investments

1,811

1,811

Proceeds from disposition of properties, plants, equipment and mineral interests

515

431

1,077

331

Purchases of investments

(2,216

)

Net cash used in investing activities

(28,992

)

(24,857

)

(107,029

)

(92,901

)

FINANCING ACTIVITIES

Acquisition of treasury shares

(4,525

)

(2,745

)

Dividends paid to common and preferred stockholders

(3,503

)

(6,178

)

(20,672

)

(9,152

)

Borrowings on debt

716,327

Payments on debt

(716,500

)

Debt issuance and loan origination fees paid

(8

)

(26

)

(116

)

(1,356

)

Repayments of capital leases

(1,687

)

(1,828

)

(7,285

)

(5,953

)

Net cash used in financing activities

(5,198

)

(8,032

)

(32,598

)

(19,379

)

Effect of exchange rates on cash

(59

)

(443

)

(530

)

(1,107

)

Net increase in cash, cash equivalents and restricted cash and cash equivalents

19,106

9,410

80,180

67,406

Cash, cash equivalents and restricted cash and cash equivalents at beginning of year

191,957

182,547

130,883

63,477

Cash, cash equivalents and restricted cash and cash equivalents at end of year

$

211,063

$

191,957

$

211,063

$

130,883

Reconciliation of Net Income (Loss) (GAAP) and Debt (GAAP) to Adjusted EBITDA (non-GAAP) and Net Debt (non-GAAP)

This release refers to the non-GAAP measures of adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA"), which is a measure of our operating performance, and net debt to adjusted EBITDA for the last 12 months (or "LTM adjusted EBITDA"), which is a measure of our ability to service our debt. Adjusted EBITDA is calculated as net income (loss) before the following items: interest expense, income and mining taxes, depreciation, depletion, and amortization expense, ramp-up and suspension costs, gains and losses on disposition of properties, plants, equipment and mineral interests, foreign exchange gains and losses, unrealized gains and losses on derivative contracts, interest and other income, unrealized gains on investments, provisions for environmental matters, stock-based compensation, provisional price gains and losses, the grant of common shares to the Hecla Charitable Foundation, adjustments of inventory to net realizable value. Net debt is calculated as total debt, which consists of the liability balances for our Senior Notes, capital leases, and other notes payable, less the total of our cash and cash equivalents and short-term investments. Management believes that, when presented in conjunction with comparable GAAP measures, adjusted EBITDA and net debt to LTM adjusted EBITDA are useful to investors in evaluating our operating performance and ability to meet our debt obligations. The following table reconciles net loss and debt to adjusted EBITDA and net debt:

Dollars are in thousands

4Q-2021

3Q-2021

2Q-2021

1Q-2021

4Q-2020

FY 2021

FY 2020

Net income (loss)

$

11,875

$

(979

)

$

2,748

$

21,451

$

3,105

$

35,095

$

(9,457

)

Plus: Interest expense

10,461

10,469

10,271

10,744

10,650

41,945

49,569

(Less) Plus: Income and mining taxes

(25,645

)

(4,533

)

(4,134

)

4,743

776

(29,569

)

8,199

Plus: Depreciation, depletion and amortization

32,875

45,790

46,059

47,069

35,618

171,793

148,110

Plus: Ramp-up and suspension costs

5,998

6,910

5,786

4,318

802

23,012

24,911

Plus/(Less): Loss (gain) on disposition of properties, plants, equipment, and mineral interests

326

(390

)

143

8

13

87

572

(Less)/Plus: Foreign exchange (gain) loss

(393

)

(3,995

)

1,907

2,064

5,840

(417

)

4,605

Plus/(Less): Unrealized loss (gain) on derivative contracts

25,840

(16,053

)

13,078

(10,962

)

1,095

11,903

5,578

Less: Provisional price gain

(5,648

)

(72

)

(3,077

)

(552

)

(2,722

)

(9,349

)

(8,008

)

Plus: Provision for closed operations and environmental matters

3,693

8,088

1,654

4,529

1,551

17,964

6,189

Plus: Stock-based compensation

1,307

1,472

2,802

500

1,229

6,081

6,458

(Less)/Plus: Unrealized (gain) loss on investments

(2,822

)

2,861

750

3,506

(861

)

4,295

(10,272

)

Foundation grant

1,970

Adjustments of inventory to net realizable value

93

6,242

189

6,524

Plus/(Less): Other

382

(247

)

278

(997

)

677

(584

)

2,260

Adjusted EBITDA

$

58,249

$

49,414

$

84,507

$

86,610

$

57,773

$

278,780

$

230,684

Total debt

$

521,483

$

523,007

Less: Cash and cash equivalents

210,010

129,830

Net debt

$

311,473

$

393,177

Net debt/LTM adjusted EBITDA (non-GAAP)

1.1

1.7

Non-GAAP Measures
(Unaudited)

Reconciliation of Cost of Sales and Other Direct Production Costs and Depreciation, Depletion and Amortization (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 tables below present reconciliations between the most comparable GAAP measure of cost of sales and other direct production costs and depreciation, depletion and amortization 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 at Greens Creek, Lucky Friday, Casa Berardi and Nevada Operations and for the Company for the three- and twelve-month periods ended December 31, 2021 and 2020, and for estimated amounts for the twelve months ended December 31, 2022.

Cash Cost, After By-product Credits, per Ounce is a measure developed by precious metals companies (including the Silver Institute) 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 also utilize AISC, After By-product Credits, per Ounce as a measure of our operation's net cash flow after costs for exploration, pre-development, 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 on-site exploration, 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 operations versus those of our competitors. As a primary silver and gold mining company, we also use these statistics on an aggregate basis. We aggregate Greens Creek and Lucky Friday to compare our performance with that of other primary silver mining companies and aggregate Casa Berardi and Nevada Operations to compare our performance with that of other primary gold 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.

Cash Cost, Before By-product Credits and AISC, Before By-product Credits 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 operation also includes on-site exploration, reclamation, and sustaining capital costs. AISC, Before By-product Credits for our consolidated silver properties also includes corporate costs for general and administrative expense, exploration and sustaining capital projects. By-product credits include revenues earned from all metals other than the primary metal produced at each operation. 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. However, comparability of Cash Cost, After By-product Credits, per Silver Ounce and AISC, After By-product Credits, per Silver Ounce for 2021 to 2020 is impacted by, among other factors, (i) the return to full production at Lucky Friday in the fourth quarter of 2020 and (ii) suspension of production at San Sebastian in the fourth quarter of 2020 and discontinuation of San Sebastian being reported as an operating segment in 2021.

The Casa Berardi and Nevada Operations sections below report Cash Cost, After By-product Credits, per Gold Ounce and AISC, After By-product Credits, per Gold Ounce for the production of gold, their primary product, and by-product revenues earned from silver, which is a by-product at Casa Berardi and Nevada Operations. Only costs and ounces produced relating to operations with the same primary product are combined to represent Cash Cost, After By-product Credits, per Ounce and AISC, After By-product Credits, per Ounce. Thus, the gold produced at Casa Berardi and Nevada Operations is not included as a by-product credit when calculating CashCost, After By-product Credits, per Silver Ounce and AISC, After By-product Credits, per Silver Ounce for the total of Greens Creek and Lucky Friday, our combined silver properties. Similarly, the silver produced at our other two operations is not included as a by-product credit when calculating the similar gold metrics for Casa Berardi.

In thousands (except per ounce amounts)

Three Months Ended December 31, 2021

Three Months Ended September 30, 2021

Twelve Months Ended December 31, 2021

Twelve Months Ended December 31, 2020

Greens Creek

Lucky Friday(2)

Corporate(3)

Total Silver

Greens Creek

Lucky Friday

Corporate(3)

Total Silver

Greens Creek

Lucky Friday(2)

Corporate and other(3)

Total Silver

Greens Creek

Lucky Friday(2)

Corporate and other(3)

Total Silver

Cost of sales and other direct production costs and depreciation, depletion and amortization

$

49,252

$

23,251

$

152

$

72,655

$

55,193

$

23,591

$

$

78,784

$

213,113

$

97,538

$

247

$

310,898

$

210,748

$

56,706

$

24,104

$

291,558

Depreciation, depletion and amortization

(6,300

)

(6,518

)

(152

)

(12,970

)

(13,097

)

(6,590

)

(19,687

)

(48,710

)

(26,846

)

(152

)

(75,708

)

(49,692

)

(11,473

)

(3,548

)

(64,713

)

Treatment costs

8,655

3,636

12,291

7,979

3,427

11,406

36,099

16,723

52,822

77,122

4,590

287

81,999

Change in product inventory

236

1,351

1,587

(122

)

(68

)

(190

)

80

(406

)

(326

)

(3,144

)

2,340

(2,357

)

(3,161

)

Reclamation and other costs (5)

(1,689

)

(199

)

(1,888

)

(786

)

(281

)

(1,067

)

(3,466

)

(1,039

)

(95

)

(4,600

)

(1,608

)

(274

)

(1,198

)

(3,080

)

Cash costs excluded

(31,442

)

(31,442

)

Cash Cost, Before By-product Credits (1)

50,154

21,521

71,675

49,167

20,079

69,246

197,116

85,970

283,086

233,426

20,447

17,288

271,161

Reclamation and other costs

847

264

1,111

848

264

1,112

3,390

1,056

4,446

3,154

222

418

3,794

Exploration

696

867

1,563

2,472

474

2,946

4,591

2,226

6,817

354

1,788

2,142

Sustaining capital

10,123

7,413

172

17,708

6,228

8,406

14,634

27,582

26,517

210

54,309

28,797

7,154

337

36,288

General and administrative (5)

6,585

6,585

8,874

8,874

34,570

34,570

33,759

33,759

AISC, Before By-product Credits (1)

61,820

29,198

7,624

98,642

58,715

28,749

9,348

96,812

232,679

113,543

37,006

383,228

265,731

27,823

53,590

347,144

By-product credits:

Zinc

(25,643

)

(5,022

)

(30,665

)

(25,295

)

(4,611

)

(29,906

)

(100,214

)

(19,479

)

(119,693

)

(79,413

)

(4,273

)

(83,686

)

Gold

(15,712

)

(15,712

)

(14,864

)

(14,864

)

(72,011

)

(72,011

)

(74,615

)

(12,586

)

(87,201

)

Lead

(7,657

)

(12,204

)

(19,861

)

(7,640

)

(10,188

)

(17,828

)

(30,922

)

(42,966

)

(73,888

)

(28,193

)

(8,421

)

(36,614

)

Total By-product credits

(49,012

)

(17,226

)

(66,238

)

(47,799

)

(14,799

)

(62,598

)

(203,147

)

(62,445

)

(265,592

)

(182,221

)

(12,694

)

(12,586

)

(207,501

)

Cash Cost, After By-product Credits

$

1,142

$

4,295

$

$

5,437

$

1,368

$

5,280

$

$

6,648

$

(6,031

)

$

23,525

$

$

17,494

$

51,205

$

7,753

$

4,702

$

63,660

AISC, After By-product Credits

$

12,808

$

11,972

$

7,624

$

32,404

$

10,916

$

13,950

$

9,348

$

34,214

$

29,532

$

51,098

$

37,006

$

117,636

$

83,510

$

15,129

$

41,004

$

139,643

Divided by ounces produced

2,262

955

3,217

1,837

832

2,669

9,243

3,564

12,807

10,495

830

955

12,280

Cash Cost, Before By-product Credits, per Silver Ounce

$

22.18

$

22.54

$

22.28

$

26.76

$

24.14

$

25.93

$

21.33

$

24.12

$

22.11

$

22.24

$

24.63

$

22.08

By-product credits per ounce

(21.68

)

(18.04

)

(20.59

)

(26.02

)

(17.79

)

(23.44

)

(21.98

)

(17.52

)

(20.74

)

(17.36

)

(15.29

)

(16.90

)

Cash Cost, After By-product Credits, per Silver Ounce

$

0.50

$

4.50

$

1.69

$

0.74

$

6.35

$

2.49

$

(0.65

)

$

6.60

$

1.37

$

4.88

$

9.34

$

5.18

AISC, Before By-product Credits, per Silver Ounce

$

27.34

$

30.58

$

30.67

$

31.96

$

34.58

$

36.26

$

25.17

$

31.86

$

29.93

$

25.33

$

33.51

$

28.27

By-product credits per ounce

(21.68

)

(18.04

)

(20.59

)

(26.02

)

(17.79

)

(23.44

)

(21.98

)

(17.52

)

(20.74

)

(17.36

)

(15.29

)

(16.90

)

AISC, After By-product Credits, per Silver Ounce

$

5.66

$

12.54

$

10.08

$

5.94

$

16.79

$

12.82

$

3.19

$

14.34

$

9.19

$

7.97

$

18.22

$

11.37

In thousands (except per ounce amounts)

Three Months Ended December 31, 2021

Three Months Ended September 30, 2021

Twelve Months Ended December 31, 2021

Twelve Months Ended December 31, 2020

Casa Berardi

Nevada Operations(4))

Total Gold

Casa Berardi

Nevada Operations(4)

Total Gold

Casa Berardi

Nevada Operations(4)

Total Gold

Casa Berardi(6)

Nevada Operations(4)

Total Gold

Cost of sales and other direct production costs and depreciation, depletion and amortization

$

57,069

$

2,113

$

59,182

$

58,164

$

21,384

$

79,548

$

229,829

$

48,945

$

278,774

$

194,414

$

44,801

$

239,215

Depreciation, depletion and amortization

(19,585

)

(320

)

(19,905

)

(19,968

)

(6,135

)

(26,103

)

(80,744

)

(15,341

)

(96,085

)

(60,552

)

(22,845

)

(83,397

)

Treatment costs

423

423

475

1

476

1,513

1,731

3,244

2,591

45

2,636

Change in product inventory

4,839

(956

)

3,883

(3,369

)

(12,389

)

(15,758

)

2,439

(10,907

)

(8,468

)

2,226

15,869

18,095

Reclamation and other costs (5)

(208

)

1

(207

)

(210

)

(210

)

(841

)

300

(541

)

(773

)

(978

)

(1,751

)

Exclusion of Nevada Operations costs

(13,511

)

(13,511

)

Cash Cost, Before By-product Credits (1)

42,538

838

43,376

35,092

2,861

37,953

152,196

24,728

176,924

137,906

23,381

161,287

Reclamation and other costs

209

327

536

209

327

536

841

1,008

1,849

386

654

1,040

Exploration

1,775

1,775

1,541

1,541

5,326

5,326

2,231

2,231

Sustaining capital

10,459

316

10,775

7,208

29

7,237

30,643

511

31,154

34,431

1,600

36,031

AISC, Before By-product Credits (1)

54,981

1,481

56,462

44,050

3,217

47,267

189,006

26,247

215,253

174,954

25,635

200,589

By-product credits:

Silver

(183

)

(21

)

(204

)

(169

)

(6

)

(175

)

(839

)

(1,152

)

(1,991

)

(499

)

(635

)

(1,134

)

Total By-product credits

(183

)

(21

)

(204

)

(169

)

(6

)

(175

)

(839

)

(1,152

)

(1,991

)

(499

)

(635

)

(1,134

)

Cash Cost, After By-product Credits

$

42,355

$

817

$

43,172

$

34,923

$

2,855

$

37,778

$

151,357

$

23,576

$

174,933

$

137,407

$

22,746

$

160,153

AISC, After By-product Credits

$

54,798

$

1,460

$

56,258

$

43,881

$

3,211

$

47,092

$

188,167

$

25,095

$

213,262

$

174,455

$

25,000

$

199,455

Divided by gold ounces produced

37

37

30

3

33

135

21

156

121

32

153

Cash Cost, Before By-product Credits, per Gold Ounce

$

1,142

$

1,737

$

1,148

$

1,181

$

1,040

$

1,168

$

1,131

$

1,193

$

1,140

$

1,135

$

736

$

1,052

By-product credits per ounce

(5

)

(44

)

(5

)

(6

)

(2

)

(5

)

(6

)

(56

)

(13

)

(4

)

(20

)

(7

)

Cash Cost, After By-product Credits, per Gold Ounce

$

1,137

$

1,693

$

1,143

$

1,175

$

1,038

$

1,163

$

1,125

$

1,137

$

1,127

$

1,131

$

716

$

1,045

AISC, Before By-product Credits, per Gold Ounce

$

1,475

$

3,073

$

1,499

$

1,482

$

1,169

$

1,455

$

1,405

$

1,267

$

1,387

$

1,440

$

807

$

1,309

By-product credits per ounce

(5

)

(44

)

(5

)

(6

)

(2

)

(5

)

(6

)

(56

)

(13

)

(4

)

(20

)

(7

)

AISC, After By-product Credits, per Gold Ounce

$

1,470

$

3,029

$

1,494

$

1,476

$

1,167

$

1,450

$

1,399

$

1,211

$

1,374

$

1,436

$

787

$

1,302

In thousands (except per ounce amounts)

Three Months Ended December 31, 2021

Three Months Ended September 30, 2021

Twelve Months Ended December 31, 2021

Twelve Months Ended December 31, 2020

Total Silver

Total Gold

Total

Total Silver

Total Gold

Total

Total Silver

Total Gold

Total

Total Silver

Total Gold

Total

Cost of sales and other direct production costs and depreciation, depletion and amortization

$

72,655

$

59,182

$

131,837

$

78,784

$

79,548

$

158,332

$

310,898

$

278,774

$

589,672

$

291,558

$

239,215

$

530,773

Depreciation, depletion and amortization

(12,970

)

(19,905

)

(32,875

)

(19,687

)

(26,103

)

(45,790

)

(75,708

)

(96,085

)

(171,793

)

(64,713

)

(83,397

)

(148,110

)

Treatment costs

12,291

423

12,714

11,406

476

11,882

52,822

3,244

56,066

81,999

2,636

84,635

Change in product inventory

1,587

3,883

5,470

(190

)

(15,758

)

(15,948

)

(326

)

(8,468

)

(8,794

)

(3,161

)

18,095

14,934

Reclamation and other costs

(1,888

)

(207

)

(2,095

)

(1,067

)

(210

)

(1,277

)

(4,600

)

(541

)

(5,141

)

(3,080

)

(1,751

)

(4,831

)

Cash costs excluded

(31,442

)

(13,511

)

(44,953

)

Cash Cost, Before By-product Credits (1)

71,675

43,376

115,051

69,246

37,953

107,199

283,086

176,924

460,010

271,161

161,287

432,448

Reclamation and other costs

1,111

536

1,647

1,112

536

1,648

4,446

1,849

6,295

3,794

1,040

4,834

Exploration

1,563

1,775

3,338

2,946

1,541

4,487

6,817

5,326

12,143

2,142

2,231

4,373

Sustaining capital

17,708

10,775

28,483

14,634

7,237

21,871

54,309

31,154

85,463

36,288

36,031

72,319

General and administrative

6,585

6,585

8,874

8,874

34,570

34,570

33,759

33,759

AISC, Before By-product Credits (1)

98,642

56,462

155,104

96,812

47,267

144,079

383,228

215,253

598,481

347,144

200,589

547,733

By-product credits:

Zinc

(30,665

)

(30,665

)

(29,906

)

(29,906

)

(119,693

)

(119,693

)

(83,686

)

(83,686

)

Gold

(15,712

)

(15,712

)

(14,864

)

(14,864

)

(72,011

)

(72,011

)

(87,201

)

(87,201

)

Lead

(19,861

)

(19,861

)

(17,828

)

(17,828

)

(73,888

)

(73,888

)

(36,614

)

(36,614

)

Silver

(204

)

(204

)

(175

)

(175

)

(1,991

)

(1,991

)

(1,134

)

(1,134

)

Total By-product credits

(66,238

)

(204

)

(66,442

)

(62,598

)

(175

)

(62,773

)

(265,592

)

(1,991

)

(267,583

)

(207,501

)

(1,134

)

(208,635

)

Cash Cost, After By-product Credits

$

5,437

$

43,172

$

48,609

$

6,648

$

37,778

$

44,426

$

17,494

$

174,933

$

192,427

$

63,660

$

160,153

$

223,813

AISC, After By-product Credits

$

32,404

$

56,258

$

88,662

$

34,214

$

47,092

$

81,306

$

117,636

$

213,262

$

330,898

$

139,643

$

199,455

$

339,098

Divided by ounces produced

3,217

37

2,669

33

12,807

156

12,280

153

Cash Cost, Before By-product Credits, per Ounce

$

22.28

$

1,148

$

25.93

$

1,168

$

22.11

$

1,140

$

22.08

$

1,052

By-product credits per ounce

(20.59

)

(5

)

(23.44

)

(5

)

(20.74

)

(13

)

(16.90

)

(7

)

Cash Cost, After By-product Credits, per Ounce

$

1.69

$

1,143

$

2.49

$

1,163

$

1.37

$

1,127

$

5.18

$

1,045

AISC, Before By-product Credits, per Ounce

$

30.67

$

1,499

$

36.26

$

1,455

$

29.93

$

1,387

$

28.27

$

1,309

By-product credits per ounce

(20.59

)

(5

)

(23.44

)

(5

)

(20.74

)

(13

)

(16.90

)

(7

)

AISC, After By-product Credits, per Ounce

$

10.08

$

1,494

$

12.82

$

1,450

$

9.19

$

1,374

$

11.37

$

1,302

In thousands (except per ounce amounts)

Estimate for Twelve Months Ended December 31, 2022

Greens Creek

Lucky Friday

Corporate(3)

Total Silver

Casa Berardi

Total Gold

Cost of sales and other direct production costs and depreciation, depletion and amortization

$

230,000

$

115,000

$

345,000

$

210,000

$

210,000

Depreciation, depletion and amortization

(47,900

)

(39,150

)

(87,050

)

(58,250

)

(58,250

)

Treatment costs

34,750

15,650

50,400

500

500

Change in product inventory

(1,500

)

(1,500

)

(3,000

)

1,300

1,300

Reclamation and other costs

500

1,300

1,800

1,200

1,200

Cash Cost, Before By-product Credits (1)

215,850

91,300

307,150

154,750

154,750

Reclamation and other costs

3,400

1,000

4,400

900

900

Exploration

4,900

3,000

7,900

5,300

5,300

Sustaining capital

40,200

28,900

69,100

30,700

30,700

General and administrative

38,000

38,000

AISC, Before By-product Credits (1)

264,350

121,200

41,000

426,550

191,650

191,650

By-product credits:

Zinc

(111,640

)

(29,360

)

(141,000

)

Gold

(66,100

)

(66,100

)

Lead

(29,601

)

(58,375

)

(87,976

)

Silver

(730

)

(730

)

Total By-product credits

(207,341

)

(87,735

)

(295,076

)

(730

)

(730

)

Cash Cost, After By-product Credits

$

8,509

$

3,565

$

$

12,074

$

154,020

$

154,020

AISC, After By-product Credits

$

57,009

$

33,465

$

41,000

$

131,474

$

190,920

$

190,920

Divided by silver ounces produced

8,750

4,450

13,200

128.5

128.5

Cash Cost, Before By-product Credits, per Silver Ounce

$

24.67

$

20.52

$

23.27

$

1,204

$

1,204

By-product credits per silver ounce

(23.70

)

(19.72

)

(22.35

)

(6

)

(6

)

Cash Cost, After By-product Credits, per Silver Ounce

$

0.97

$

0.80

$

0.92

$

1,198

$

1,198

AISC, Before By-product Credits, per Silver Ounce

$

30.21

$

27.24

$

32.31

$

1,491

$

1,491

By-product credits per silver ounce

(23.70

)

(19.72

)

(22.35

)

(6

)

(6

)

AISC, After By-product Credits, per Silver Ounce

$

6.51

$

7.52

$

9.96

$

1,485

$

1,485

(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, non-discretionary on-site general and administrative costs, royalties and mining production taxes, before by-product revenues earned from all metals other than the primary metal produced at each operation. AISC, Before By-product Credits also includes on-site exploration, reclamation, and sustaining capital costs.

(2)

The unionized employees at Lucky Friday were on strike from March 2017 until January 2020, and production at Lucky Friday had been limited from the start of the strike until the ramp-up was substantially completed in the fourth quarter of 2020. Costs related to ramp-up activities totaling approximately $8.0 million in 2020, which includes $6.3 million in non-cash depreciation expense has been excluded from the calculations of cost of sales and other direct production costs and depreciation, depletion and amortization, Cash Cost, Before By-product Credits, Cash Cost, After By-product Credits, AISC, Before By-product Credits, and AISC, After By-product Credits.

(3)

Twelve months ended December 31, 2021 and 2020 include results for San Sebastian, which was an operating segment prior to 2021. AISC, Before By-product Credits for our consolidated silver properties includes non-discretionary corporate costs for general and administrative expense, exploration and sustaining capital.

(4)

Production was suspended at the Hollister mine in the third quarter of 2019 and at the Midas mine and Aurora mill in late 2019, and at the Midas mill and Fire Creek mine in mid-2021. Suspension-related costs at Nevada Operations totaling $20.8 million for 2021 and $13.5 million for 2020 are reported in a separate line item on our consolidated statements of operations and excluded from the calculations of cost of sales and other direct production costs and depreciation, depletion and amortization and Cash Cost and AISC, After By-product Credits, per Gold Ounce. During the second half of 2020, all ore mined at Nevada Operations was stockpiled, with no ore milled and no production reported during the period. As a result, costs incurred at Nevada Operations during the second half of 2020 were excluded from the calculations of Cash Cost and AISC, After By-product Credits, per Gold Ounce.

(5)

Excludes the discretionary portion of general and administrative costs for Greens Creek, Casa Berardi, Lucky Friday and corporate of $0.6 million, $0.4 million, $0.1 million and $1.8 million, respectively, for 2020.

(6)

In late March 2020, the Government of Quebec ordered the mining industry to reduce to minimum operations as part of the fight against COVID-19, causing us to suspend our Casa Berardi operations from March 24 until April 15, when mining operations resumed, resulting in reduced mill throughput. Suspension-related costs totaling $1.6 million for 2020 are reported in a separate line item on our consolidated statements of operations and excluded from the calculations of cost of sales and other direct production costs and depreciation, depletion and amortization and Cash Cost and AISC, After By-product Credits, per Gold Ounce.

Table A

Mineral Reserves – 12/31/2021(1)

Proven Reserves(1)

Asset Tons (000)

Silver
(oz/ton)

Gold
(oz/ton)

Lead
%

Zinc
%

Copper
%

Silver
(000 oz)

Gold
(000 oz)

Lead
(Tons)

Zinc
(Tons)

Copper
(Tons)

Greens Creek (2,3)

2

9.6

0.08

1.7

4.5

-

18

0.1

30

80

-

Lucky Friday (2,4)

4,691

13.9

-

8.4

3.4

-

65,313

-

395,290

159,360

-

Casa Berardi Open Pit (2,5)

4,763

-

0.10

-

-

-

-

453

-

-

-

Casa Berardi Underground (2,5)

923

-

0.16

-

-

-

-

143

-

-

-

Total

10,378

65,331

596

395,320

159,440

-

Probable Reserves(6)

Asset

Tons (000)

Silver
(oz/ton)

Gold
(oz/ton)

Lead
%

Zinc
%

Copper
%

Silver
(000 oz)

Gold
(000 oz)

Lead
(Tons)

Zinc
(Tons)

Copper
(Tons)

Greens Creek (2,3)

11,074

11.3

0.09

2.5

6.6

-

125,201

946

282,220

725,830

-

Lucky Friday (2,4)

765

12.3

-

7.5

2.8

-

9,386

-

57,160

21,650

-

Casa Berardi Open Pit (2,5)

13,371

-

0.07

-

-

-

-

928

-

-

-

Casa Berardi Underground (2,5)

1,695

-

0.15

-

-

-

-

259

-

-

-

Total

26,905

134,587

2,133

339,380

747,480

-

Proven and Probable Reserves

Asset

Tons (000)

Silver
(oz/ton)

Gold
(oz/ton)

Lead
%

Zinc
%

Copper
%

Silver
(000 oz)

Gold
(000 oz)

Lead
(Tons)

Zinc
(Tons)

Copper
(Tons)

Greens Creek (2,3)

11,076

11.3

0.09

2.5

6.6

-

125,219

946

282,250

725,920

-

Lucky Friday (2,4)

5,456

13.7

-

8.3

3.3

-

74,699

-

452,440

181,020

-

Casa Berardi Open Pit (2,5)

18,134

-

0.08

-

-

-

-

1,381

-

-

-

Casa Berardi Underground (2,5)

2,618

-

0.15

-

-

-

-

403

-

-

-

Total

37,283

199,918

2,730

734,690

906,940

-

(1)

The term “reserve” means an estimate of tonnage and grade or quality of indicated and measured resources that, in the opinion of the qualified person, can be the basis of an economically viable project. More specifically, it is an economically mineable part of a measured or indicated mineral resource, which includes diluting materials and allowances for losses that may occur when the material is mined or extracted. The term “proven reserves’ means the economically mineable part of a measured mineral resource and can only result from conversion of a measured mineral resource. Reserves are reported in accordance with Section 1300 of Regulation S-K of the Securities Act of 1933, as amended and NI 43-101. See footnotes 7 and 8 below.

(2)

Mineral reserves are based on $17/oz silver, $1600/oz gold, $0.90/lb lead, $1.15/lb zinc, unless otherwise stated.

(3)

The reserve NSR cut-off grades for Greens Creek are $215/ton for all zones at Greens Creek except the Gallagher Zone at $220/ton; metallurgical recoveries (actual 2021): 81.26% silver, 72.34% gold, 82.29% lead, 89.58% zinc

(4)

The reserve NSR cut-off grades for Lucky Friday are $216.19 for the 30 Vein and $230.98 for the Intermediate Veins; metallurgical recoveries (actual 2021): 95.18% silver, 94.62% lead, 89.97% zinc

(5)

The average reserve cut-off grades at Casa Berardi are 0.101 oz/ton gold (3.47 g/tonne) for underground and 0.037 oz/ton (1.27 g/tonne) for open pit. Metallurgical recovery (actual 2021): 84.82% gold; US$/CAN$ exchange rate: 1:1.275.

(6)

The term “probable reserves” means the economically mineable part of an indicated and, in some cases, a measured mineral resource. See footnotes 8 and 9 below.

Totals may not represent the sum of parts due to rounding

Mineral Resources – 12/31/2021(7)

Measured Resources(8)

Asset

Tons (000)

Silver
(oz/ton)

Gold
(oz/ton)

Lead
%

Zinc
%

Copper
%

Silver
(000 oz)

Gold
(000 oz)

Lead
(Tons)

Zinc
(Tons)

Copper
(Tons)

Greens Creek (11,12)

-

-

-

-

-

-

-

-

-

-

-

Lucky Friday (11,13)

8,652

7.6

-

4.9

2.5

-

65,752

-

425,100

213,480

-

Casa Berardi Open Pit (11,14)

96

-

0.04

-

-

-

-

4

-

-

-

Casa Berardi Underground (11,14)

2,272

-

0.15

-

-

-

-

351

-

-

-

San Sebastian - Oxide (15)

-

-

-

-

-

-

-

-

-

-

-

San Sebastian - Sulfide (15)

-

-

-

-

-

-

-

-

-

-

-

Fire Creek (16,17)

20

0.7

0.50

-

-

-

14

10

-

-

-

Hollister (16,18)

18

4.9

0.59

-

-

-

87

10

-

-

-

Midas (16,19)

2

7.6

0.68

-

-

-

14

1

-

-

-

Heva (20)

-

-

-

-

-

-

-

-

-

-

-

Hosco (20)

-

-

-

-

-

-

-

-

-

-

-

Star (21)

-

-

-

-

-

-

-

-

-

-

-

Total

11,060

65,867

377

425,100

213,480

-

Indicated Resources(9)

Asset

Tons (000)

Silver
(oz/ton)

Gold
(oz/ton)

Lead
%

Zinc
%

Copper
%

Silver
(000 oz)

Gold
(000 oz)

Lead
(Tons)

Zinc
(Tons)

Copper
(Tons)

Greens Creek (11,12)

8,355

12.8

0.10

3.0

8.4

-

106,670

836

250,040

701,520

-

Lucky Friday (11,13)

1,841

7.6

-

5.1

2.4

-

14,010

-

93,140

44,120

-

Casa Berardi Open Pit (11,14)

420

-

0.03

-

-

-

-

14

-

-

-

Casa Berardi Underground (11,14)

4,976

-

0.14

-

-

-

-

685

-

-

-

San Sebastian - Oxide (15)

1,453

6.5

0.09

-

-

-

9,430

135

-

-

-

San Sebastian - Sulfide (15)

1,187

5.5

0.01

1.9

2.9

1.2

6,579

16

22,420

34,100

14,650

Fire Creek (16,17)

113

1.0

0.45

-

-

-

114

51

-

-

-

Hollister (16,18)

70

1.9

0.58

-

-

-

130

40

-

-

-

Midas (16,19)

76

5.7

0.42

-

-

-

430

32

-

-

-

Heva (20)

1,266

-

0.06

-

-

-

-

76

-

-

-

Hosco (20)

29,287

-

0.04

-

-

-

-

1,201

-

-

-

Star (21)

1,126

2.9

-

6.2

7.4

-

3,301

-

69,900

83,410

-

Total

50,168

140,663

3,088

435,500

863,150

14,650

Measured & Indicated Resources

Asset

Tons (000)

Silver
(oz/ton)

Gold
(oz/ton)

Lead
%

Zinc
%

Copper
%

Silver
(000 oz)

Gold
(000 oz)

Lead
(Tons)

Zinc
(Tons)

Copper
(Tons)

Greens Creek (11,12)

8,355

12.8

0.10

3.0

8.4

-

106,670

836

250,040

701,520

-

Lucky Friday (11,13)

10,493

7.6

-

4.9

2.5

-

79,762

-

518,240

257,600

-

Casa Berardi Open Pit (11,14)

516

-

0.03

-

-

-

-

18

-

-

-

Casa Berardi Underground (11,14)

7,248

-

0.14

-

-

-

-

1,036

-

-

-

San Sebastian - Oxide (15)

1,453

6.5

0.09

-

-

-

9,430

135

-

-

-

San Sebastian - Sulfide (15)

1,187

5.5

0.01

1.9

2.9

1.2

6,579

16

22,420

34,100

14,650

Fire Creek (16,17)

134

1.0

0.46

-

-

-

128

61

-

-

-

Hollister (16,18)

88

2.5

0.58

-

-

-

217

51

-

-

-

Midas (16,19)

78

5.7

0.43

-

-

-

444

33

-

-

-

Heva (20)

1,266

-

0.06

-

-

-

-

76

-

-

-

Hosco (20)

29,287

-

0.04

-

-

-

-

1,201

-

-

-

Star (21)

1,126

2.9

-

6.2

7.4

-

3,301

-

69,900

83,410

-

Total

61,229

206,530

3,464

860,600

1,076,630

14,650

Inferred Resources(10)

Asset Tons (000)

Silver
(oz/ton)

Gold
(oz/ton)

Lead
%

Zinc
%

Copper
%

Silver
(000 oz)

Gold
(000 oz)

Lead
(Tons)

Zinc
(Tons)

Copper
(Tons)

Greens Creek (11,12)

2,152

12.8

0.08

2.8

6.8

-

27,508

164

60,140

146,020

-

Lucky Friday (11,13)

5,377

7.8

-

5.8

2.4

-

41,872

-

311,850

129,600

-

Casa Berardi Open Pit (11,14)

7,886

-

0.05

-

-

-

-

383

-

-

-

Casa Berardi Underground 11,14)

2,239

-

0.18

-

-

-

-

408

-

-

-

San Sebastian - Oxide (15)

3,490

6.4

0.05

-

-

-

22,353

182

-

-

-

San Sebastian - Sulfide (15)

385

4.2

0.01

1.6

2.3

0.9

1,606

5

6,070

8,830

3,330

Fire Creek (16,17)

765

0.5

0.51

-

-

-

394

392

-

-

-

Fire Creek - Open Pit (22)

74,584

0.1

0.03

-

-

-

5,232

2,178

-

-

-

Hollister (18,18)

642

3.0

0.42

-

-

-

1,916

273

-

-

-

Midas (16,19)

1,232

6.3

0.50

-

-

-

7,723

615

-

-

-

Heva (20)

2,787

-

0.08

-

-

-

-

216

-

-

-

Hosco (20)

17,726

-

0.04

-

-

-

-

663

-

-

-

Star (21)

3,157

2.9

-

5.6

5.5

-

9,432

-

178,670

174,450

-

San Juan Silver (23)

3,594

11.3

0.01

1.4

1.1

-

40,716

36

51,750

40,800

Monte Cristo (24)

913

0.3

0.14

-

-

-

271

131

-

-

-

Rock Creek (25)

100,086

1.5

-

-

-

0.7

148,736

-

-

-

658,680

Montanore (26)

112,185

1.6

-

-

-

0.7

183,346

-

-

-

759,420

Total

339,200

491,103

5,644

608,480

499,700

1,421,430

Note: All estimates are in-situ except for the proven reserves at Greens Creek which are in surface stockpiles. Mineral resources are exclusive of reserves.

(7)

The term "mineral resources" means a concentration or occurrence of material of economic interest in or on the Earth's crust in such form, grade or quality, and quantity that there are reasonable prospects for economic extraction. A mineral resource is a reasonable estimate of mineralization, taking into account relevant factors such as cut-off grade, likely mining dimensions, location or continuity, that, with the assumed and justifiable technical and economic conditions, is likely to, in whole or in part, become economically extractable. It is not merely an inventory of all mineralization drilled or sampled. Resources are reported in accordance with Section 1300 of Regulation S-K of the Securities Act of 1933, as amended and NI 43-101.

(8)

The term "measured resources" means that part of a mineral resource for which quantity and grade or quality are estimated on the basis of conclusive geological evidence and sampling. The level of geological certainty associated with a measured mineral resource is sufficient to allow a qualified person to apply modifying factors, as defined in this section, in sufficient detail to support detailed mine planning and final evaluation of the economic viability of the deposit Because a measured mineral resource has a higher level of confidence than the level of confidence of either an indicated mineral resource or an inferred mineral resource, a measured mineral resource may be converted to a proven mineral reserve or to a probable mineral reserve.

(9)

The term "indicated resources" means that part of a mineral resource for which quantity and grade or quality are estimated on the basis of adequate geological evidence and sampling. The level of geological certainty associated with an indicated mineral resource is sufficient to allow a qualified person to apply modifying factors in sufficient detail to support mine planning and evaluation of the economic viability of the deposit. Because an indicated mineral resource has a lower level of confidence than the level of confidence of a measured mineral resource, an indicated mineral resource may only be converted to a probable mineral reserve.

(10)

The term "inferred resources" means that part of a mineral resource for which quantity and grade or quality are estimated on the basis of limited geological evidence and sampling. The level of geological uncertainty associated with an inferred mineral resource is too high to apply relevant technical and economic factors likely to influence the prospects of economic extraction in a manner useful for evaluation of economic viability. Because an inferred mineral resource has the lowest level of geological confidence of all mineral resources, which prevents the application of the modifying factors in a manner useful for evaluation of economic viability, an inferred mineral resource may not be considered when assessing the economic viability of a mining project and may not be converted to a mineral reserve.

(11)

Mineral resources are based on $1700/oz gold, $21/oz silver, $1.15/lb lead, $1.35/lb zinc and $3.00/lb copper, unless otherwise stated.

(12)

The resource NSR cut-off grades for Greens Creek are $215/ton for all zones at Greens Creek except the Gallagher Zone at $220/ton; metallurgical recoveries (actual 2021): 81.26% silver, 72.34% gold, 82.29% lead, 89.58% zinc.

(13)

The resource NSR cut-off grades for Lucky Friday are $170.18 for the 30 Vein, $184.97 for the Intermediate Veins and $207.15 for the Lucky Friday Vein; metallurgical recoveries (actual 2021): 95.18% silver, 94.62% lead, 89.97% zinc.

(14)

The average resource cut-off grades at Casa Berardi are 0.089 oz/ton gold (3.06 g/tonne) for underground and 0.036 oz/ton (1.22 g/tonne) for open pit; metallurgical recovery (actual 2021): 84.82% gold; US$/CAN$ exchange rate: 1:1.275.

(15)

Indicated resources for most zones at San Sebastian based on $1500/oz gold, $21/oz silver, $1.15/lb lead, $1.35/lb zinc and $3.00/lb copper using a cut-off grade of $90.72/ton ($100/tonne); $1700/oz gold used for Toro, Bronco, and Tigre zones. Metallurgical recoveries based on grade dependent recovery curves: recoveries at the mean resource grade average 89% silver and 84% gold for oxide material and 85% silver, 83% gold, 81% lead, 86% zinc, and 83% for copper for sulfide material. Resources reported at a minimum mining width of 8.2 feet (2.5m) for Middle Vein, North Vein, and East Francine, 6.5ft (1.98m) for El Toro, El Bronco, and El Tigre, and 4.9 feet (1.5 m) for Hugh Zone and Andrea.

(16)

Mineral resources for Fire Creek, Hollister and Midas are reported using $1500/oz gold and $21/oz silver prices, unless otherwise noted. A minimum mining width is defined as four feet or the vein true thickness plus two feet, whichever is greater.

(17)

Fire Creek mineral resources are reported at a gold equivalent cut-off grade of 0.283 oz/ton. Metallurgical recoveries: 90% gold, 70% silver.

(18)

Hollister mineral resources, including the Hatter Graben are reported at a gold equivalent cut-off grade of 0.238 oz/ton. Metallurgical recoveries: 88% gold, 66% silver

(19)

Midas mineral resources are reported at a gold equivalent cut-off grade of 0.237 oz/ton. Metallurgical recoveries: 90% gold, 70% silver. A gold-equivalent cut-off grade of 0.1 oz/ton and a gold price of $1700/oz used for Sinter Zone with resources undiluted.

(20)

Measured, indicated and inferred resources at Heva and Hosco are based on $1,500/oz gold. Resources are without dilution or material loss at a gold cut-off grade of 0.01 oz/ton (0.33 g/tonne) for open pit and 0.088 oz/ton (3.0 g/tonne) for underground.

Metallurgical recovery: Heva: 95% gold, Hosco: 87.7% gold.

(21)

Indicated and Inferred resources at the Star property are reported using $21 silver, $0.95 lead, $1.10 lead, a minimum mining width of 4.3 feet and a cut-off grade of $100/ton; Metallurgical recovery: 93.38% silver, 93.33% lead, 86.96% zinc.

(22)

Inferred open-pit resources for Fire Creek calculated November 30, 2017, using gold and silver recoveries of 65% and 30% for oxide material and 60% and 25% for mixed oxide-sulfide material. Indicated Resources reclassified as Inferred in 2019.

Open pit resources are calculated at $1400 gold and $19.83 silver and cut-off grade of 0.01 Au Equivalent oz/ton and is inclusive of 10% mining dilution and 5% ore loss. Open pit mineral resources exclusive of underground mineral resources.

(23)

Inferred resources reported at a minimum mining width of 6.0 feet for Bulldog and a cut-off grade of 6.0 equivalent oz/ton silver and 5.0 feet for Equity and North Amethyst vein at a cut-off grade of $50/ton and $100/ton; based on $1400 Au, $26.5 Ag, $0.85 Pb, and $0.85 Zn.

Metallurgical recoveries based on grade dependent recovery curves: recoveries at the mean resource grade average 88% silver and 74% lead for the Bulldog and a constant 85% gold and 85% silver for North Amethyst and Equity.

(24)

Inferred resource at Monte Cristo reported at a minimum mining width of 5.0 feet; resources based on $1400 Au, $26.5 Ag using a 0.06 oz/ton gold cut-off grade. Metallurgical recovery: 90% gold, 90% silver.

(25)

Inferred resource at Rock Creek reported at a minimum thickness of 15 feet and a cut-off grade of $24.50/ton NSR; Metallurgical recoveries: 88% silver, 92% copper.

Resources adjusted based on mining restrictions as defined by U.S. Forest Service, Kootenai National Forest in the June 2003 'Record of Decision, Rock Creek Project'.

(26)

Inferred resource at Montanore reported at a minimum thickness of 15 feet and a cut-off grade of $24.50/ton NSR; Metallurgical recoveries: 88% silver, 92% copper.

Resources adjusted based on mining restrictions as defined by U.S. Forest Service, Kootenai National Forest, Montana DEQ in December 2015 'Joint Final EIS, Montanore Project' and the February 2016 U.S Forest Service - Kootenai National Forest 'Record of Decision, Montanore Project'.

Totals may not represent the sum of parts due to rounding

Category: Earnings



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