NYSE: HL-PB

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strengthening our balance sheet to preserve our financial position in varying metals price and operational environments, improve our capital allocation framework with a focus on Return On Invested Capital ("ROIC") and generate free cash flow;

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improving and optimizing operations at all sites, which includes incurring costs for new technologies and equipment, and implementing standardized systems and processes;

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optimizing our asset portfolio and identification of growth opportunities;

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expanding our proven and probable reserves, mineral resources and production capacity at our properties;

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advancing the development and ramp up of the Keno Hill mine to commercial production and sustained profitability;

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seeking opportunities to acquire and invest in mining and exploration properties and companies;

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advancing permitting of the Libby Exploration project in Montana (50 miles from Lucky Friday);

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enhancing our ESG performance and risk management systems;

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building high-performing teams and strengthening our organizational capabilities; and

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maintaining and investing in exploration and pre-development projects in the vicinities of mining districts and projects we believe to be under-explored and under-invested: Greens Creek on Alaska's Admiralty Island located near Juneau; North Idaho's Silver Valley in the historic Coeur d'Alene Mining District; our projects located in two districts in Nevada; our projects in the Keno Hill mining district in the Yukon Territory, Canada; northwestern Montana; and the Republic Mining District in Washington state.

On January 26, 2026, following a review of how Casa Berardi fits into our future strategy, we announced that we entered into a material definitive agreement to sell our wholly-owned subsidiary Hecla Quebec Inc., which owns the Casa Berardi operation to Orezone Gold Corporation (“Orezone”) for up to $593 million in total consideration including:

(i)
Cash consideration of $160 million upon closing;

(ii)
Equity consideration of approximately 65.7 million Orezone common shares to be issued at closing (valued at $112 million as of January 26, 2026);

(iii)
Deferred cash consideration of $30 million and $50 million to be paid at 18 months and 30 months, respectively, from the closing date; and

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(iv)
Contingent consideration of up to $241 million consisting of:

a.
Production-based royalty payment of up to $211 million ($80/ounce for the first 500,000 ounces, then $180/ounce thereafter from open pit operations)

b.
Permit receipt payment of $20 million upon grant of permits

c.
Gold price-linked payment of up to $10 million at gold price exceeding $4,200/ounce

Under the terms of the transaction, Orezone is entitled to reduce future deferred cash payments or contingent royalty payments owed to us if the financial assurance required under Casa Berardi’s updated closure plan exceeds $150.0 million, by 50% of such excess amount. This excludes amounts arising from the mine's post-closing actions that increase the closure scope beyond what is currently contemplated. See Section1A. Risk Factors – Our environmental and asset retirement obligations may exceed the provisions we have made,” “Our accounting and other estimates may be imprecise and We are required to obtain governmental permits and other approvals in order to conduct mining operations.

The transaction is expected to close in the first quarter of 2026, subject to the satisfaction of customary closing conditions, including the receipt of regulatory approvals. In this Annual Report on Form 10-K, unless otherwise indicated, all historical amounts and activity are presented on a continuing operations basis. There can be no assurance that the transaction will be completed on the expected timeline or at all, or that we will receive the full anticipated consideration. For additional information regarding the pending transaction, see Item 7. Management’s Discussion and Analysis of Consolidated Financial Condition and Results of Operations, as well as the Consolidated Financial Statements and Notes thereto.

Metals Prices

Our operating results are substantially dependent upon the prices of silver, gold, lead and zinc, which can fluctuate widely. The volatility of such prices is illustrated in the following table, which sets forth our average realized prices and the high, low and average daily closing market prices for silver, gold, lead, zinc and copper over the last three years. The sources for the market prices are the London Market Fixing prices from the London Bullion Market Association for silver and gold and the Cash Official prices from the London Metals Exchange for lead, zinc and copper.

2025

2024

2023

Silver (per oz.):

Realized average

$

45.25

$

28.58

$

23.33

Market average

$

39.94

$

28.24

$

23.39

Market high

$

74.84

$

34.51

$

26.03

Market low

$

29.41

$

22.09

$

20.09

Gold (per oz.):

Realized average

$

3,490

$

2,403

$

1,939

Market average

$

3,435

$

2,387

$

1,943

Market high

$

4,449

$

2,778

$

2,049

Market low

$

2,633

$

1,985

$

1,811

Lead (per lb.):

Realized average

$

0.94

$

0.97

$

1.03

Market average

$

0.89

$

0.94

$

0.97

Market high

$

0.94

$

1.04

$

1.06

Market low

$

0.83

$

0.86

$

0.90

Zinc (per lb.):

Realized average

$

1.39

$

1.37

$

1.35

Market average

$

1.30

$

1.26

$

1.20

Market high

$

1.52

$

1.47

$

1.59

Market low

$

1.14

$

1.04

$

1.01

Copper (per lb.):

Realized average

$

4.75

$

4.20

NA

Market average

$

4.51

$

4.15

NA

Market high

$

5.71

$

4.90

NA

Market low

$

3.89

$

3.66

NA

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The prices of the metals we produce are affected by numerous factors beyond our control. See