Business Wire | Aug 6, 2020 03:30AM EDT

Hecla Reports 24% Higher Revenues on Higher Production and Prices in Second Quarter 2020

Aug. 06, 2020

COEUR D'ALENE, Idaho--(BUSINESS WIRE)--Aug. 06, 2020--Hecla Mining Company (NYSE:HL) today announced second quarter 2020 financial and operating results.

HIGHLIGHTS

* All mines in operation (non-U.S. mines had government-mandated shutdowns of less than a month). * Sales of $166.4 million, an increase of 24% over prior year period. * Gross profit of $34.1 million, an increase of $54.3 million over prior year period. * Cash provided by operating activities was $37.5 million while there were $10.8 million additions to properties, plant, equipment and mineral interests, resulting in $26.7 million of quarterly free cash flow. * Silver production of 3.4 million ounces and gold production of 59,982 ounces. * Net loss applicable to common shareholders of $14.2 million, or $0.03 per share. * Adjusted net income applicable to common shareholders of $7.3 million, or $0.01 per share.1 * Adjusted EBITDA of $61.3 million and net debt/adjusted EBITDA (last 12 months) of 2.0x. 2,3 * Strong balance sheet with cash and cash equivalents of $76 million, repaid $160 million of revolving line of credit, leaving $50 million outstanding; expect full repayment by year end. * In the third quarter, agreed with Investissement Quebec to issue C$50 million (US$36.8 million) of senior unsecured notes yielding 5.74%; expected use of proceeds for purchases of existing 7.25% coupon bonds, and Casa Berardi capital expenditures. * Annual silver and gold production and cost guidance is unchanged.

"Despite the pandemic, Hecla had its second highest quarterly silver production since 2016 which, combined with higher prices, resulted in almost 25% more revenue than a year ago and generated about $27 million of free cash flow," said Phillips S. Baker, Jr., Hecla's President and CEO. "I am extremely proud of our workforce's adaptability and commitment in this challenging time which positions Hecla well to improve our cash flow generation in this higher silver and gold price environment."

Mr. Baker continued, "Hecla currently produces about a third of all the silver mined in the U.S., almost three times larger than the next primary producer. That number is expected to grow as Lucky Friday ramps up. As the United States' largest and oldest silver producer with America's largest silver reserve and resource, Hecla gives investors unique exposure to higher silver prices."

FINANCIAL OVERVIEW

Second Quarter Ended Six Months Ended

HIGHLIGHTS June 30, June 30, June 30, June 30, 2020 2019 2020 2019

FINANCIAL DATA

Sales (000) $ 166,355 $ 134,172 $ 303,280 $ 286,789

Gross profit (loss) (000) $ 34,079 $ (20,243) $ 45,451 $ (16,799)

Loss applicable to common $ (14,166) $ (46,670) $ (31,489) $ (72,341) shareholders (000)

Basic and diluted loss $ (0.03) $ (0.10) $ (0.06) $ (0.15) per common share

Net Loss (000) $ (14,028) $ (46,532) $ (31,213) $ (72,065)

Cash provided by (usedin) operating activities $ 37,526 $ (11,317) $ 42,453 $ 8,713 (000)

Net loss applicable to common shareholders for the second quarter 2020 was $14.2 million, or $0.03 per share, compared to net loss applicable to common shareholders of $46.7 million, or $0.10 per share, for the same period in 2019. The improved second quarter result was mainly due to the following items:

* Improved gross profit at each operation due to higher production and prices. Combined Greens Creek, Casa Berardi and Nevada operations generated $53.3 million more gross profit than the prior year period. * Unrealized gains on equity investments of $6.4 million compared to losses of $1.1 million in the prior-year period. * Lower exploration costs by $2.4 million compared to the second quarter of 2019, as the Company reduced discretionary spending during the pandemic. * Lower general and administrative expense by $1.9 million, primarily due to lower incentive compensation.

These variances were partially offset by:

* Loss on metals derivative contracts of $14.0 million compared to a gain of $3.8 million in the second quarter of 2019, of which $5 million of the loss is a reversal of the gain in first quarter of 2020. The remainder is divided between the cost of the puts and increase in zinc and lead prices. * Higher ramp-up and suspension costs by $7.3 million resulting from (i) Lucky Friday transitioning production between salary and hourly personnel and the recall, hiring and training of the returning hourly workforce, (ii) placement of the Midas and Hollister mines and Aurora mill in Nevada on care-and-maintenance, and (iii) the temporary suspension of operations at Casa Berardi and San Sebastian in response to COVID-19. * $2.0 million in expense recognized for the value of Hecla shares contributed to the Hecla Charitable Foundation.

Cash provided by operating activities of $37.5 million in the second quarter 2020, $48.8 million higher than the $11.3 million of cash used by operating activities in the second quarter of 2019, due mainly to the $54.3 million increase in gross profit, partly offset by the net impact of working capital changes.

Adjusted EBITDA was $61.3 million compared to $17.7 million in the second quarter of 2019, reflecting the improved gross profit.

Capital expenditures at the operations totaled $13.7 million for the second quarter compared to $38.9 million in the second quarter of 2019, with the decrease primarily due to planned lower expenditures at the operations in 2020. Expenditures at Lucky Friday, Greens Creek and Casa Berardi were each about $4.5 million.

Metals Prices

The average realized silver price in the second quarter was $18.44 per ounce, 23% higher than the $15.01 in the second quarter of 2019. The average realized gold price increased 31%, to $1,736 per ounce. Average realized lead and zinc prices decreased 7% and 24%, respectively.

Three Months Ended June 30

2020 2019

Silver - London PM Fix ($/ounce) $ 16.33 $ 14.89

Realized price per ounce $ 18.44 $ 15.01

Gold - London PM Fix ($/ounce) $ 1,711 $ 1,310

Realized price per ounce $ 1,736 $ 1,322

Lead - LME Final Cash Buyer ($/pound) $ 0.76 $ 0.85

Realized price per pound $ 0.78 $ 0.84

Zinc - LME Final Cash Buyer ($/pound) $ 0.89 $ 1.25

Realized price per pound $ 0.89 $ 1.17

Base Metals Forward Sales Contracts And Precious Metals Put Contracts

Hecla enters into financially settled forward sales contracts to manage exposure to price variances on silver, gold, zinc and lead concentrate shipments (also called provisional hedges). In addition, the Company uses financially settled forward contracts to manage exposure to changes in prices of zinc and lead (but not silver and gold) contained in the forecasted future concentrate shipments.

Percentage of Production Hedged

Average Price per Pound



Forward Sales

Zinc Lead

% of sales Price % of sales Price

Hedges as a % of Sales

Q3/2020 89% $0.88 95% $0.75

Q4/2020 97% $0.89 43% $0.78

Q1/2021 19% $0.91 6% $0.77

Hecla has also entered into put contracts to protect the minimum price it receives for silver and gold, while retaining exposure to price increases. As of June 30, the Company has spent about $0.52 per ounce on buying silver puts for a portion of silver production and about $84 per ounce on buying gold puts for a portion of gold production for the second half of 2020. Cost of this silver and gold protection insurance represents less than 3% of forecasted revenue.

OPERATIONS OVERVIEW

Overview

The following table provides the production summary on a consolidated basis for the second quarter and six months ended June 30, 2020 and 2019:

Second Quarter Ended Six Months Ended

June 30, June 30, June 30, June 30, 2020 2019 2020 2019

PRODUCTION SUMMARY

Silver Ounces produced 3,403,781 3,018,765 6,649,250 5,941,896-

Payable ounces 3,348,639 2,418,586 5,930,918 5,316,669 sold

Gold - Ounces produced 59,982 60,768 118,774 120,789

Payable ounces 51,398 59,127 108,501 120,063 sold

Lead - Tons produced 8,977 5,515 14,870 11,299

Payable tons sold 8,026 3,963 12,156 8,811

Zinc - Tons produced 17,855 13,315 30,702 27,259

Payable tons sold 11,989 9,823 21,825 19,356

The following tables provide a summary of the final production, cost of sales and other direct production costs and depletion, depreciation and amortization, cash cost, after by-product credits, per silver and gold ounce, and AISC, after by-product credits, per silver and gold ounce for the second quarter and six months ended June 30, 2020, with comparisons to the prior year period:

Second Greens Creek Lucky San Sebastian Casa Berardi Nevada OperationsQuarter Ended Friday

June 30, 2020 Silver Gold Silver Gold Silver Silver Gold Gold Silver Gold Silver

Production 3,403,781 59,982 2,753,919 13,104 469,537 158,842 1,331 30,756 5,495 14,791 15,988 (ounces)

Increase/ 385,016 (786 ) 381,649 (153 ) 342,390 (304,893 ) (2,216 ) (514 ) (669 ) 2,097 (33,461 )(decrease)

Cost of salesand otherdirectproductioncosts and $ 73,137 $ 59,139 $ 57,672 $ - $ 11,455 $ 4,010 $ - $ 45,582 $ - $ 13,557 $ - depreciation,depletion andamortization(000)

Increase/ $ 11,393 $ (33,532 ) $ 12,022 N/A $ 6,504 $ (7,133 ) N/A $ (9,570 ) N/A $ (23,962 ) N/A (decrease)

Cash costs,afterby-productcredits, per $ 4.97 $ 846 $ 5.19 $ - $ - $ 1.14 $ - $ 919 $ - $ 694 $ - silver orgold ounce ^4, 6

Increase/ $ 1.47 $ (305 ) $ 2.81 N/A $ - $ (8.08 ) N/A $ (182 ) N/A $ (580 ) N/A (decrease)

AISC, afterby-productcredits per $ 9.33 $ 977 $ 7.11 $ - $ - $ 1.85 $ - $ 1,077 $ - $ 769 $ - silver orgold ounce^5

Increase/ $ (1.83 ) $ (723 ) $ 0.74 N/A $ - $ (13.65 ) N/A $ (360 ) N/A $ (1,578 ) N/A (decrease)

Six Months Greens Creek Lucky San Sebastian Casa Berardi Nevada OperationsEnded Friday

June 30, 2020 Silver Gold Silver Gold Silver Silver Gold Gold Silver Gold Silver

Production 6,649,250 118,774 5,529,626 25,377 565,285 505,467 4,133 57,508 11,429 31,756 37,443 (ounces)

Increase/ 707,354 (2,015 ) 924,609 (2,208 ) 264,511 (399,347 ) (2,944 ) (5,561 ) (2,975 ) 8,698 (79,444 ) (decrease)

Cost of salesand otherdirectproductioncosts and $ 133,451 $ 124,378 $ 106,853 $ - $ 14,287 $ 12,311 $ - $ 93,907 $ - $ 30,471 $ - depreciation,depletion andamortization(000)

Increase/ $ 3,062 $ (48,821 ) $ 7,091 N/A $ 7,155 $ (11,184 ) N/A $ (10,326 ) N/A $ (38,495 ) N/A (decrease)

Cash costs,afterby-productcredits, per $ 5.38 $ 952 $ 5.41 $ - $ - $ 5.09 $ - $ 1,081 $ - $ 716 $ - silver orgold ounce ^4, 6

Increase/ $ 2.48 $ (261 ) $ 3.95 N/A $ - $ (5.11 ) N/A $ (26 ) N/A $ (786 ) N/A (decrease)

AISC, afterby-productcredits per $ 10.10 $ 1,135 $ 7.51 $ - $ - $ 5.65 $ - $ 1,327 $ - $ 787 $ - silver orgold ounce^5

Increase/ $ (0.19 ) $ (594 ) $ 2.66 N/A $ - $ (10.37 ) N/A $ (60 ) N/A $ (1,879 ) N/A (decrease)

Greens Creek Mine - Alaska

Operations at Greens Creek continue strongly, with higher silver production due to higher grades. The mill operated at an average of 2,366 tons per day (tpd), which was slightly higher than the second quarter of 2019. The per ounce silver costs were higher primarily due to lower by-products on a per ounce basis resulting from lower zinc and lead prices and higher silver production, higher treatment costs due to unfavorable changes in smelter terms and COVID-19 costs. The increased silver production means there is less by-product credit to apply to each ounce of silver, so the cost per ounce after by-products is higher.

The mine quickly implemented a 14-day quarantine for all employees before coming to Admiralty Island, where the mine is located. This proactive approach helped to protect the workforce from the potential spread of the COVID-19 virus and was consistent with the Governor's order. With the addition of strict testing protocols, the mine recently reduced the quarantine period to 7 days for workers traveling to Juneau to work at Greens Creek. This change is expected to continue to protect our people and the community, and reduce the cost associated with operating under the pandemic.

Casa Berardi - Quebec

At the Casa Berardi mine, the decrease in gold ounces compared to the second quarter of 2019 is the result of the Government-mandated shutdown of operations due to COVID-19. The mine restarted operations on April 15, three weeks after the shutdown, and is performing well. The mill operated at an average of 3,595 tpd, which was 6% lower than the second quarter of 2019. The decrease in cash cost, after by-product credits, per gold ounce is mainly due to lower mine contractor costs as the contractor was re-mobilized slowly. The lower mining costs, along with lower capital and exploration spending, resulted in lower AISC, after by-product credits, of $1,077 per gold ounce, compared to $1,437 in the second quarter of 2019.5

Despite COVID-19, process improvement activities focused on improving mill reliability, throughput and recovery continued. These efforts are expected to lead to reduced costs and increased cash flow when complete but are somewhat delayed by the COVID-19 restrictions. Production from Casa Berardi is expected to be higher in second half of the year as production from the higher-grade 148 Zone increases.

Lucky Friday Mine - Idaho

At the Lucky Friday Mine, the ramp-up to full production is proceeding as expected. The #2 shaft hoist upgrade project was completed on schedule and below budget. The mine is on target to return to pre-strike production levels in the fourth quarter, so 2021 is anticipated to have a full year of production.

Underground testing and modification of the Remote Vein Miner (RVM) continues in Sweden, but the project is being negatively impacted by COVID-19, as travel restrictions has prevented Hecla oversight and Sweden is operating with a reduced work schedule. Acceptance testing in Sweden will continue until the machine meets requisite performance parameters. In parallel, the Company is pursuing additional initiatives to increase productivity at the mine.

San Sebastian - Mexico

At the San Sebastian mine, the mill restarted on May 30 after the Government-mandated shutdown of operations due to COVID-19. Silver and gold production were lower compared to the second quarter of 2019 due to lower ore grades, as well as the shutdown. The mill operated at an average of 528 tpd when it operated, which was slightly higher than the second quarter of 2019.

The cash cost, after by-product credits, decreased due to higher by-product gold credits on a per ounce basis primarily as a result of higher gold prices, partially offset by lower silver production. The AISC, after by-product credits, was lower due to the decrease attributed to the higher by-product credits, along with lower capital and exploration spending.

Mining of oxide material is expected to be completed in the third quarter and milling in the fourth quarter of 2020. The Company continues to assess the viability of mining the sulfide Hugh Zone, and continues exploration of El Toro, but expects to idle the mine in the fourth quarter.

Nevada Operations

For the Nevada operations, very high grades were experienced in the material being processed at the Midas mill. Not all the material processed was sold in the second quarter, with the remainder sold in the third quarter. No further processing is currently anticipated in the Midas mill. Mining is now focused primarily on material for the 30,000-ton bulk sample test, of which approximately 16,000 tons have been accumulated to date, with mining expected to continue through the remainder of 2020. The bulk sample test is designed to provide information on alternate mining techniques, water management, and process recovery rates at a third-party facility. To date the geotechnical, hydrology, mining productivity and cost have all been better than anticipated. The grade and metallurgical parameters are in line with the model. The bulk sample is expected to be sent for third-party processing late in the third quarter with results expected around year end. Production from this test is expected to be between 5 and 10 thousand ounces of gold.

Ore was processed at an average of 117 tpd compared to 642 tpd in the second quarter of 2019.

EXPLORATION

Exploration expenses were $2.0 million for the second quarter, representing a 55% decrease from the prior year period, as a result of decreased activity at all sites due to the COVID-19 pandemic.

Greens Creek - Alaska

At Greens Creek, the reduced drilling program was focused on supporting active mining with limited pre-production drilling in the Southwest Zone and definition drilling in the East Ore Zone. Strong definition drilling assay results continue to confirm and upgrade the East Ore Zone resources. In the East OreZone, intersections targeting the middle portion of the zone along 600 feet of strike length, included 12.2 oz/ton silver, 0.09 oz/ton gold, 7.7% zinc and 2.8% lead over 7.0 feet, and 10.6 oz/ton silver, 0.12 oz/ton gold, 16.6% zinc and 5.0% lead over 3.0 feet. Once the current phase of definition drilling in the East Ore Zone is completed, the planned activity in the third quarter of 2020 is to further define and explore the 200 South Zone.

More complete drill assay highlights from Greens Creek can be found in Table A at the end of the release.

Casa Berardi - Quebec

At Casa Berardi, drilling in the East Mine focused on defining continuity and expanding mineralization in the 160 Zone Pit area and expanding mineralization in the high-grade underground 148 Zone. Definition drilling in the 160 Zone targeted mineralization below the current 160 Pit shell to further define the continuity of the 160 lenses. Intersections from this drilling included 0.05 oz/ton gold over 42.6 feet including 0.18 oz/ton gold over 5.2 feet and confirms continuity of the mineralized 160 lenses. Exploration drilling in the East Mine occurred in the 148 Zone from underground targeting the eastern and western down-plunge trend of the known high-grade mineralization. At depth, the 148-01 lens appears to be splitting into two lenses, one north and one south of the Casa Berardi Fault. Intersections include 0.32 oz/ton gold over 19.7 feet including 0.78 oz/ton gold over 4.6 feet, 0.07 oz/ton gold over 13.4 feet including 0.38 oz/ton gold over 1.1 feet and 0.20 oz/ton gold over 31.2 feet including 1.15 oz/ton gold over 2.0 feet.

In the West Mine area, drilling targeted the depth extensions of the 128 Zone. Recent high-grade intersections include 0.82 oz/ton gold over 11.2 feet including 2.11 oz/ton gold over 4.1 feet. These initial results show higher grades below the current resources and are open at depth for expansion.

In the third quarter of 2020, underground drilling is planned to expand and refine resources in the 123, 124, and 128 zones in the West Mine and the high-grade 148 Zone in the East Mine.

More complete drill assay highlights from Casa Berardi can be found in Table A at the end of the release.

San Sebastian - Mexico

At San Sebastian, one surface reverse circulation drill rig completed the 2020 Short Vertical Reverse Circulation (SVRC) drilling grid designed to explore for new veins and near-surface oxide mineralization through cover by sampling overburden and bedrock west of the current El Toro resource area. Results to date are positive with the discovery of a new vein and two additional strong anomalies west of the El Toro vein. These positive results continue to demonstrate the effectiveness of using SVRC drilling to discover new veins under thick soil cover. Follow-up drilling for this new vein and anomalies is being evaluated.

Exploration drilling at El Toro targeted areas between known ore shoots within the El Toro Vein to expand mineralization laterally between known ore shoots. Intersections include 0.06 oz/ton gold and 8.4 oz/ton silver over 5.3 feet and 0.07 oz/ton gold and 7.8 oz/ton silver over 2.5 feet.

In the third quarter of 2020, exploration drilling is planned to follow-up on the new vein and the multiple anomalies west of the El Toro vein generated from the SVRC drilling program.

More complete drill assay highlights from San Sebastian can be found in Table A at the end of the release.

PRE-DEVELOPMENT

Pre-development spending was $0.6 million for the quarter, compared to $0.8 million for the second quarter of 2019, principally to advance the permitting of Rock Creek and Montanore.

DIVIDENDS

Common

The Board of Directors elected to declare a quarterly cash dividend of $0.0025 per share of common stock, payable on or about September 1, 2020, to shareholders of record on August 19, 2020. The realized silver price was $18.44 in the second quarter and therefore did not satisfy the criteria for a larger dividend under the Company's dividend policy.

Preferred

The Board of Directors elected to declare a quarterly cash dividend of $0.875 per share of preferred stock, payable on or about October 1, 2020, to shareholders of record on September 15, 2020.

MANAGEMENT CHANGES

Hecla today announced that Mr. Mike Westerlund, Vice President of Investor Relations, is leaving the company effective August 14, 2020. A search is underway for a replacement.

"I want to thank Mike for his significant contributions to Hecla over the past eight years and wish him well in his future endeavors. I know the investment community and the Hecla team enjoyed working with him, and we plan on building on his good work in the future," said Mr. Baker.

CONFERENCE CALL AND WEBCAST

A conference call and webcast will be held Thursday, August 6, at 10:00 a.m. Eastern Time to discuss these results. We recommend that you dial in at least 10 minutes before the call is due to commence. 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 5074513 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 Friday, August 7, 2020, from 08:00 a.m. to 10:00 a.m. PDT.

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. Click on the link below to schedule a call (You can also copy and paste the link into your web browser.). If you are unable to book a time, either due to high demand or for other reasons, please reach out to Mike Westerlund, VP - Investor Relations at mwesterlund@hecla-mining.com or at 604.694.7729.

* Operations call with Lauren Roberts, SR VP and COO and senior mine management: https://calendly.com/2020-q2-vie/operations * Finance call with Lindsay Hall, SR VP and CFO: https://calendly.com/2020-q2-vie/finance * Call with Phil Baker, President and CEO: https://calendly.com/2020-q2-vie/ceo ABOUT HECLA

Founded in 1891, Hecla Mining Company (NYSE:HL) is a leading low-cost U.S. silver producer with operating mines in Alaska, Idaho, and Mexico and is a gold producer with operating mines in Quebec, Canada and Nevada. The Company also has exploration and pre-development properties in seven world-class silver and gold mining districts in the U.S., Canada and Mexico, and an exploration office and investments in early-stage silver exploration projects in Canada.

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 generally accepted accounting principles in the United States (GAAP). These measures should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP.

(1) Adjusted net (loss) income applicable to common stockholders is a non-GAAP measurement, a reconciliation of which to net (loss) income applicable to common stockholders, the most comparable GAAP measure, can be found at the end of the release. Adjusted net (loss) income is a measure used by management to evaluate the Company's operating performance but should not be considered an alternative to net (loss) income, or cash (used in) 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.

(2) Adjusted EBITDA is a non-GAAP measurement, a reconciliation of which to net (loss) 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 (loss) income, or cash (used in) 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.

(3) Net debt to adjusted EBITDA is a non-GAAP measurement, a reconciliation of which to debt and net (loss) income, 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.

(4) Cash cost, after by-product credits, per silver or 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 (sometimes referred to as "cost of sales" in this release), 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 silver and gold mining company, management also uses the statistic on an aggregate basis - aggregating the Greens Creek, Lucky Friday and San Sebastian 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 second quarters and first halves of 2020 and 2019, as production was limited due to the strike and results are not comparable to those from prior periods and are not indicative of future operating results under full production.

(5) All in sustaining cost (AISC), after by-product credits, is a non-GAAP measurement, a reconciliation of which to cost of sales and other direct production costs and depreciation, depletion and amortization, the closest GAAP measurement, can be found in 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. AISC, after by-product credits, per silver ounce is not presented for Lucky Friday for the second quarters and first halves of 2020 and 2019, as production was limited due to the strike and results are not comparable to those from prior periods and are not indicative of future operating results under full production.

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 in the understanding of the economics of our operations and performance compared to other producers and in the investor's visibility 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.

(6) Cash cost, after by-product credits, per gold ounce is only applicable to Casa Berardi and Nevada Operations production. Gold produced from Greens Creek and San Sebastian is treated as a by-product credit against the silver cash cost.

Numbers may be rounded.

Cautionary Statements to Investors on Forward-Looking Statements

This 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. When a forward-looking statement 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. Forward-looking statements often address our expected future business and financial performance and financial condition and often contain words such as "anticipate," "intend," "plan," "will," "could," "would," "estimate," "should," "expect," "believe," "project," "target," "indicative," "preliminary," "potential" and similar expressions. Forward-looking statements in this news release may include, without limitation: (i) estimates of future production, sales, cash flows and costs; (ii) expectations regarding the development, growth potential, financial performance of the Company's projects, including growth in silver production and throughput rate at Lucky Friday; (iii) the Company's mineral reserves and resources; (iv) performance of our counterparties to our hedging arrangements, including put options; (v) the effectiveness of the Company's protocols to mitigate the risks presented by COVID-19; (vi) improvement of mill performance at Casa Berardi and potential for reduced cost and higher cash flow; (vii) the level of borrowings under the revolving credit agreement at the end of 2020; and (viii) completion and results of the bulk sample test in Nevada; and (ix) impact of metals prices on costs and cash flows. 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, which could cause actual results to differ from forward-looking statements. Such assumptions, include, but are not limited to: (i) there being no significant change to current geotechnical, metallurgical, hydrological and other physical conditions; (ii) permitting, development, operations and expansion of the Company's projects being consistent with current expectations and mine plans; (iii) political/regulatory developments in any jurisdiction in which the Company operates being consistent with its current expectations; (iv) the exchange rate for the USD/CAD and USD/MXN, being approximately consistent with current levels; (v) certain price assumptions for gold, silver, lead and zinc; (vi) prices for key supplies being approximately consistent with current levels; (vii) the accuracy of our current mineral reserve and mineral resource estimates; (viii) 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; (ix) counterparties performing their obligations under hedging instruments and put option contracts; (x) sufficient workforce is available and trained to perform assigned tasks; (xi) weather patterns and rain/snowfall within normal seasonal ranges so as not to impact operations; (xii) relations with interested parties, including Native Americans, remain productive; (xiii) economic terms can be reached with third-party mill operators who have capacity to process our ore; (xiv) maintaining availability of water rights; (xv) factors do not arise that reduce available cash balances, (xvi) there being no material increases in our current requirements to post or maintain reclamation and performance bonds or collateral related thereto, and (xvii) the Company's plans for refinancing its high yield notes proceeding as expected.

In addition, material risks that could cause actual results to differ from forward-looking statements include, but are not limited to: (i) gold, silver and other metals price volatility; (ii) operating risks; (iii) currency fluctuations; (iv) increased production costs and variances in ore grade or recovery rates from those assumed in mining plans; (v) community relations; (vi) conflict resolution and outcome of projects or oppositions; (vii) litigation, political, regulatory, labor and environmental risks; (viii) 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; (ix) the failure of counterparties to perform their obligations under hedging instruments, including put option contracts; (x) our plans for improvements at our Nevada operations, including at Fire Creek, are not successful; (xi) our estimates for the third and fourth quarter results are inaccurate; (xii) we take a material impairment charge on our Nevada operations; and (xiii) we are unable to remain in compliance with all terms of the credit agreement in order to maintain continued access to the revolver. For a more detailed discussion of such risks and other factors, see the Company's 2019 Form 10-K, filed on February 13, 2020, and Form 10-Q filed on each of May 7, 2020 with the Securities and Exchange Commission (SEC), as well as the Company's other SEC filings. 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 presentation, 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.

Qualified Person (QP) Pursuant to Canadian National Instrument 43-101

Kurt D. Allen, MSc., CPG, Director - Exploration of Hecla Limited and Keith Blair, MSc., CPG, Chief Geologist of Hecla Limited, who serve as a Qualified Persons under National Instrument 43-101("NI 43-101"), supervised the preparation of the scientific and technical information concerning Hecla's mineral projects in this news release. 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 four 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 Loss

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



Second Quarter Ended Six Months Ended

June 30, June 30, June 30, June 30, 2020 2019 2020 2019

Sales of products $ 166,355 $ 134,172 $ 303,280 $ 286,789

Cost of sales and other 92,853 104,938 178,740 215,324 direct production costs

Depreciation, depletion 39,423 49,477 79,089 88,264 and amortization

132,276 154,415 257,829 303,588

Gross profit (loss) 34,079 (20,243 ) 45,451 (16,799 )



Other operating expenses:

General and 6,979 8,918 15,918 18,877 administrative

Exploration 1,962 4,346 4,492 8,748

Pre-development 563 798 1,098 1,654

Research and - 158 - 561 development

Other operating expense 1,439 657 2,354 1,244

Loss on disposition orimpairment ofproperties, plants, 677 4,642 573 4,642 equipment and mineralinterests

Provision for closedoperations and 1,037 1,052 1,553 1,622 environmental matters

Ramp-up and suspension 9,572 2,266 22,568 5,044 costs

Foundation grant 1,970 - 1,970 -

Acquisition costs 6 397 11 410

24,205 23,234 50,537 42,802

Income (loss) from 9,874 (43,477 ) (5,086 ) (59,601 )operations

Other income (expense):

Unrealized gain (loss) 6,409 (1,129 ) 5,431 (1,033 )on investments

(Loss) gain on (14,002 ) 3,798 (6,109 ) 1,999 derivative contracts

Other expense (649 ) (1,187 ) (1,176 ) (2,311 )

Net foreign exchange (3,205 ) (4,381 ) 3,431 (7,514 )(loss) gain

Interest expense (11,829 ) (11,335 ) (28,140 ) (22,000 )

(23,276 ) (14,234 ) (26,563 ) (30,859 )

Loss before income (13,402 ) (57,711 ) (31,649 ) (90,460 )taxes

Income tax (provision) (626 ) 11,179 436 18,395 benefit

Net loss (14,028 ) (46,532 ) (31,213 ) (72,065 )

Preferred stock (138 ) (138 ) (276 ) (276 )dividends

Loss applicable to $ (14,166 ) $ (46,670 ) $ (31,489 ) $ (72,341 )common shareholders

Basic and diluted lossper common share after $ (0.03 ) $ (0.10 ) $ (0.06 ) $ (0.15 )preferred dividends

Weighted average numberof common shares 525,243 486,065 524,218 484,438 outstanding - basic

Weighted average numberof common shares 525,243 486,065 524,218 484,438 outstanding - diluted

HECLA MINING COMPANYCondensed Consolidated Balance Sheets

(dollars and shares in thousands - unaudited)



June 30, 2020 December 31, 2019

ASSETS

Current assets:

Cash and cash equivalents $ 75,923 $ 62,452

Accounts receivable:

Trade 26,003 11,952

Taxes 11,847 20,048

Other, net 3,851 6,421

Inventories 82,542 66,213

Prepaid taxes 5,148 107

Other current assets 9,567 11,931

Total current assets 214,881 179,124

Non-current investments 12,162 6,207

Non-current restricted cash and investments 1,053 1,025

Properties, plants, equipment and mineral 2,354,883 2,423,698 interests, net

Operating lease right-of-use asset 13,220 16,381

Non-current deferred income taxes 3,181 3,537

Other non-current assets and deferred charges 4,028 7,336

Total assets $ 2,603,408 $ 2,637,308



LIABILITIES

Current liabilities:

Accounts payable and accrued liabilities $ 40,789 $ 57,716

Accrued payroll and related benefits 24,561 26,916

Accrued taxes 8,451 4,776

Current portion of finance leases 5,745 5,429

Current portion of operating leases 4,162 5,580

Other current liabilities 26,819 11,976

Current portion of accrued reclamation and 5,109 4,581 closure costs

Total current liabilities 115,636 116,974

Non-current finance leases 7,057 7,214

Non-current operating leases 9,079 10,818

Accrued reclamation and closure costs 99,449 103,793

Long-term debt - Senior Notes 468,252 504,729

Long-term debt - revolving credit facility 50,000 -

Non-current deferred tax liability 128,677 138,282

Non-current pension liability 58,848 56,219

Other non-current liabilities 7,717 6,856

Total liabilities 944,715 944,885



SHAREHOLDERS' EQUITY

Preferred stock 39 39

Common stock 133,699 132,292

Capital surplus 1,982,400 1,973,700

Accumulated deficit (387,688 ) (353,331 )

Accumulated other comprehensive loss (46,261 ) (37,310 )

Treasury stock (23,496 ) (22,967 )

Total shareholders' equity 1,658,693 1,692,423

Total liabilities and shareholders' equity $ 2,603,408 $ 2,637,308

Common shares outstanding 527,839 522,896

HECLA MINING COMPANYCondensed Consolidated Statements of Cash Flows

(dollars in thousands - unaudited)



Six Months Ended

June 30, 2020 June 30, 2019

OPERATING ACTIVITIES

Net loss $ (31,213 ) $ (72,065 )

Non-cash elements included in net loss:

Depreciation, depletion and amortization 84,185 90,821

Unrealized (gain) loss on investments (5,431 ) 1,033

Adjustment of inventory to market value - 1,399

Loss on disposition of properties, plants, equipment 573 4,642 and mineral interests

Provision for reclamation and closure costs 3,093 3,209

Stock compensation 2,428 3,552

Deferred income taxes (5,165 ) (22,585 )

Amortization of loan origination fees 2,624 1,252

Loss (gain) on derivative contracts 11,188 (6,101 )

Foreign exchange (gain) loss (3,725 ) 12,220

Foundation grant 1,970 -

Change in assets and liabilities:

Accounts receivable (6,050 ) (12,772 )

Inventories (4,580 ) (147 )

Other current and non-current assets (924 ) 16,784

Accounts payable and accrued liabilities (15,415 ) (12,085 )

Accrued payroll and related benefits 5,418 1,660

Accrued taxes 3,912 (6,452 )

Accrued reclamation and closure costs and other (435 ) 4,348 non-current liabilities

Cash provided by operating activities 42,453 8,713



INVESTING ACTIVITIES

Additions to properties, plants, equipment and mineral (30,689 ) (71,245 )interests

Proceeds from disposition of properties, plants and 200 25 equipment

Purchases of investments (637 ) (107 )

Net cash used in investing activities (31,126 ) (71,327 )



FINANCING ACTIVITIES

Acquisition of treasury shares (2,745 ) (1,644 )

Dividends paid to common shareholders (2,622 ) (2,430 )

Dividends paid to preferred shareholders (276 ) (276 )

Credit availability and debt issuance fees paid (551 ) (46 )

Payments on debt (666,500 ) (118,000 )

Borrowings on debt 679,500 170,000

Repayments of finance leases (2,840 ) (3,377 )

Net cash provided by financing activities 3,966 44,227

Effect of exchange rates on cash (1,794 ) 432

Net increase (decrease) in cash, cash equivalents and 13,499 (17,955 )restricted cash

Cash, cash equivalents and restricted cash at 63,477 28,414 beginning of period

Cash, cash equivalents and restricted cash at end of $ 76,976 $ 10,459 period

HECLA MINING COMPANYProduction Data



Three Months Ended Six Months Ended

June 30, June 30, June 30, June 30, 2020 2019 2020 2019

GREENS CREEK UNIT

Tons of ore milled 215,275 209,370 414,079 416,195

Mining cost per ton of ore $ 81.16 $ 80.41 $ 82.40 $ 79.62

Milling cost per ton of ore $ 34.90 $ 35.10 $ 38.61 $ 35.48

Ore grade milled - Silver (oz. 15.56 14.36 16.19 13.91 /ton)

Ore grade milled - Gold (oz./ 0.084 0.092 0.084 0.095 ton)

Ore grade milled - Lead (%) 3.27 2.75 3.20 2.79

Ore grade milled - Zinc (%) 8.16 6.82 7.55 7.07

Silver produced (oz.) 2,753,919 2,372,270 5,529,626 4,605,017

Gold produced (oz.) 13,104 13,257 25,377 27,585

Lead produced (tons) 5,889 4,628 11,087 9,410

Zinc produced (tons) 16,184 12,739 28,671 26,257

Cash cost, after by-product $ 5.19 $ 2.38 $ 5.41 $ 1.46 credits, per silver ounce ^1

AISC, after by-product $ 7.11 $ 6.37 $ 7.51 $ 4.85 credits, per silver ounce ^1

Capital additions (in $ 4,501 $ 8,665 $ 10,011 $ 13,977 thousands)

LUCKY FRIDAY UNIT

Tons of ore milled 44,682 13,697 54,901 27,500

Ore grade milled - Silver (oz. 10.99 10.12 10.78 11.73 /ton)

Ore grade milled - Lead (%) 7.33 7.19 7.31 7.58

Ore grade milled - Zinc (%) 4.07 5.03 4.03 4.28

Silver produced (oz.) 469,537 127,147 565,285 300,774

Lead produced (tons) 3,088 887 3,783 1,889

Zinc produced (tons) 1,671 576 2,031 1,002

Capital additions (in $ 4,761 $ 1,481 $ 9,056 $ 3,207 thousands)



Three Months Ended Six Months Ended

June 30, June 30, June 30, June 30, 2020 2019 2020 2019

CASA BERARDI UNIT

Tons of ore milled - 154,265 200,148 315,202 389,504 underground

Tons of ore milled - surface 126,155 147,448 296,836 287,850 pit

Tons of ore milled - total 280,420 347,596 612,038 677,347

Surface tons mined - ore and 930,117 1,862,402 2,655,091 4,022,525 waste

Mining cost per ton of ore - $ 104.00 $ 94.16 $ 111.05 $ 101.89 underground

Mining cost per ton - combined $ 71.68 $ 76.35 $ 74.21 $ 81.11

Mining cost per ton of ore and $ 4.18 $ 4.13 $ 3.85 $ 3.96 waste - surface tons mined

Milling cost per ton of ore $ 21.11 $ 18.28 $ 21.57 $ 17.06

Ore grade milled - Gold (oz./ 0.163 0.155 0.135 0.162 ton) - underground

Ore grade milled - Gold (oz./ 0.045 0.052 0.050 0.053 ton) - surface pit

Ore grade milled - Gold (oz./ 0.130 0.112 0.115 0.116 ton) - combined

Ore grade milled - Silver (oz. 0.02 0.02 0.02 0.03 /ton)

Gold produced (oz.) - 25,074 24,585 42,655 49,848 underground

Gold produced (oz.) - surface 5,682 6,685 14,853 13,221 pit

Gold produced (oz.) - total 30,756 31,270 57,508 63,069

Silver produced (oz.) 5,495 6,164 11,429 14,404

Cash cost, after by-product $ 919 $ 1,101 $ 1,081 $ 1,107 credits, per gold ounce ^1

AISC, after by-product $ 1,077 $ 1,437 $ 1,327 $ 1,387 credits, per gold ounce ^1

Capital additions (in $ 4,278 $ 9,442 $ 12,784 $ 15,121 thousands)

SAN SEBASTIAN

Tons of ore milled 21,647 45,869 57,123 90,344

Mining cost per ton of ore $ 31.01 $ 108.25 $ 67.59 $ 116.79

Milling cost per ton of ore $ 51.68 $ 61.43 $ 58.95 $ 61.81

Ore grade milled - Silver (oz. 7.96 11.03 9.63 10.99 /ton)

Ore grade milled - Gold (oz./ 0.074 0.092 0.085 0.093 ton)

Silver produced (oz.) 158,842 463,735 505,467 904,814

Gold produced (oz.) 1,331 3,547 4,133 7,077

Cash cost, after by-product $ 1.14 $ 9.22 $ 5.09 $ 10.20 credits, per silver ounce ^1

AISC, after by-product $ 1.85 $ 15.50 $ 5.65 $ 16.02 credits, per silver ounce ^1

Capital additions (in $ (499 ) $ 2,084 $ 304 $ 3,980 thousands)

NEVADA OPERATIONS

Tons of ore milled 10,686 58,417 27,984 99,782

Mining cost per ton of ore $ 403.38 $ 129.75 $ 402.94 $ 164.08

Milling cost per ton of ore $ 219.32 $ 75.44 $ 176.63 $ 90.74

Ore grade milled - Gold (oz./ 1.519 0.259 1.232 0.276 ton)

Ore grade milled - Silver (oz. 2.07 1.63 1.7 1.99 /ton)

Gold produced (oz.) 14,791 12,694 31,756 23,058

Silver produced (oz.) 15,988 49,449 37,443 116,887

Cash cost, after by-product $ 694 $ 1,274 $ 716 $ 1,502 credits, per gold ounce ^1

AISC, after by-product $ 769 $ 2,347 $ 787 $ 2,666 credits, per gold ounce ^1

Capital additions (in $ 612 $ 17,269 $ 1,469 $ 39,074 thousands)

(1) Cash cost, after by-product credits, per ounce and AISC, after by-productcredits. per ounce represent non-U.S. Generally Accepted Accounting Principles(GAAP) measurements. A reconciliation of cost of sales and other directproduction costs and depreciation, depletion and amortization (GAAP) to cashcost, after by-product credits can be found in the cash cost per ouncereconciliation section of this news release. Gold, lead and zinc produced havebeen treated as by-product credits in calculating silver costs per ounce. Theprimary metal produced at Casa Berardi is gold, with a by-product credit forthe value of silver production.

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 Cash Cost, Before By-product Credits, Cash Cost, After By-product Credits, AISC, Before By-product Credits and AISC, After By-product Credits for our operations at the Greens Creek, Lucky Friday, San Sebastian and Casa Berardi units for the three- and six-month periods ended June 30, 2020 and 2019.

Cash Cost, After By-product Credits, per Ounce is an important operating statistic that we utilize to measure each mine's operating performance. AISC, After By-product Credits, per Ounce is an important operating statistic that we utilize as a measures of our mines' net cash flow after costs for exploration, pre-development, reclamation, and sustaining capital. Current GAAP measures used in the mining industry, such as cost of goods sold, do not capture all the expenditures incurred to discover, develop and sustain silver and gold production. Cash Cost, After By-product Credits, per Ounce and AISC, After By-product Credits, per Ounce also allow us to benchmark the performance of each of our mines versus those of our competitors. As a silver and gold mining company, we also use these statistics on an aggregate basis - aggregating the Greens Creek, Lucky Friday and San Sebastian mines - to compare our performance with that of other silver mining companies, and aggregating Casa Berardi and Nevada Operations for comparison to other 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 mine 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, reclamation, exploration, and pre-development. By-product credits include revenues earned from all metals other than the primary metal produced at each unit. As depicted in the tables below, by-product credits comprise an essential element of our silver unit cost structure, distinguishing our silver operations due to the polymetallic nature of their orebodies. 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. 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 our reporting of these non-GAAP measures are the same as those reported by other mining companies.

The Casa Berardi, Nevada Operations and combined gold properties information below reports Cash Cost, After By-product Credits, per Gold Ounce and AISC, After By-product Credits, per Gold Ounce for the production of gold, its 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 units 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 our Casa Berardi and Nevada Operations units is not included as a by-product credit when calculating Cash Cost, After By-product Credits, per Silver Ounce and AISC, After By-product Credits, per Silver Ounce for the total of Greens Creek, Lucky Friday and San Sebastian, our combined silver properties. Similarly, the silver produced at our other three units is not included as a by-product credit when calculating the gold metrics for Casa Berardi and Nevada Operations.

In thousands(except per ounce Three Months Ended June 30, 2020amounts)

Greens Lucky San Corporate Total Creek Friday^ Sebastian ^(4) Silver (2) ^(3)

Cost of sales andother directproduction costs $ 57,672 11,455 $ 4,010 $ 73,137 and depreciation,depletion andamortization

Depreciation,depletion and (12,988 ) (1,894 ) (895 ) (15,777 )amortization

Treatment costs 20,016 3,032 47 23,095

Change in product (4,020 ) (118 ) (398 ) (4,536 )inventory

Reclamation and 93 - (296 ) (203 )other costs

Exclusion of Lucky - (12,475 ) - (12,475 )Friday costs

Cash Cost, BeforeBy-product Credits 60,773 - 2,468 63,241 ^(1)

Reclamation and 789 114 903 other costs

Exploration - - 314 314

Sustaining capital 4,501 (1 ) - 4,500

General and 6,979 6,979 administrative

AISC, BeforeBy-product Credits 66,063 - 2,581 75,937 ^(1)

By-product credits:

Zinc (19,913 ) - (19,913 )

Gold (19,427 ) - (2,287 ) (21,714 )

Lead (7,133 ) - (7,133 )

Total By-product (46,473 ) - (2,287 ) (48,760 )credits

Cash Cost, After $ 14,300 $ - $ 181 $ 14,481 By-product Credits

AISC, After $ 19,590 $ - $ 294 $ 27,177 By-product Credits

Divided by ounces 2,754 - 158 2,912 produced

Cash Cost, BeforeBy-product Credits, $ 22.06 $ - $ 15.61 $ 21.71 per Ounce

By-product credits (16.87 ) - (14.47 ) (16.74 )per ounce

Cash Cost, AfterBy-product Credits, $ 5.19 $ - $ 1.14 $ 4.97 per Ounce

AISC, BeforeBy-product Credits, $ 23.98 $ - $ 16.32 $ 26.07 per Ounce

By-product credits (16.87 ) - (14.47 ) (16.74 )per ounce

AISC, AfterBy-product Credits, $ 7.11 $ - $ 1.85 $ 9.33 per Ounce

In thousands (except per ounce amounts) Three months ended June 30, 2020

Casa Nevada Berardi ^ Operations Total Gold (5) ^(6)

Cost of sales and other direct productioncosts and depreciation, depletion and $ 45,582 $ 13,557 $ 59,139 amortization

Depreciation, depletion and amortization (17,281 ) (6,365 ) (23,646 )

Treatment costs 558 19 577

Change in product inventory (400 ) 3,669 3,269

Reclamation and other costs (92 ) (328 ) (420 )

Cash Cost, Before By-product Credits ^(1) 28,367 10,552 38,919

Reclamation and other costs 94 327 421

Exploration 467 - 467

Sustaining capital 4,278 774 5,052

AISC, Before By-product Credits ^(1) 33,206 11,653 44,859

By-product credits:

Silver (92 ) (282 ) (374 )

Total By-product credits (92 ) (282 ) (374 )

Cash Cost, After By-product Credits $ 28,275 $ 10,270 $ 38,545

AISC, After By-product Credits $ 33,114 $ 11,371 $ 44,485

Divided by ounces produced 31 15 46

Cash Cost, Before By-product Credits, per $ 922 $ 713 $ 854 Ounce

By-product credits per ounce (3 ) (19 ) (8 )

Cash Cost, After By-product Credits, per $ 919 $ 694 $ 846 Ounce

AISC, Before By-product Credits, per Ounce $ 1,080 $ 788 $ 985

By-product credits per ounce (3 ) (19 ) (8 )

AISC, After By-product Credits, per Ounce $ 1,077 $ 769 $ 977

In thousands (except per ounce amounts) Three months ended June 30, 2020

Total Total Gold Total Silver

Cost of sales and other direct productioncosts and depreciation, depletion and $ 73,137 $ 59,139 $ 132,276 amortization

Depreciation, depletion and amortization (15,777 ) (23,646 ) (39,423 )

Treatment costs 23,095 577 23,672

Change in product inventory (4,536 ) 3,269 (1,267 )

Reclamation and other costs (203 ) (420 ) (623 )

Exclusion of Lucky Friday costs (12,475 ) - (12,475 )

Cash Cost, Before By-product Credits ^(1) 63,241 38,919 102,160

Reclamation and other costs 903 421 1,324

Exploration 314 467 781

Sustaining capital 4,500 5,052 9,552

General and administrative 6,979 - 6,979

AISC, Before By-product Credits ^(1) 75,937 44,859 120,796

By-product credits:

Zinc (19,913 ) - (19,913 )

Gold (21,714 ) - (21,714 )

Lead (7,133 ) - (7,133 )

Silver (374 ) (374 )

Total By-product credits (48,760 ) (374 ) (49,134 )

Cash Cost, After By-product Credits $ 14,481 $ 38,545 $ 53,026

AISC, After By-product Credits $ 27,177 $ 44,485 $ 71,662

Divided by ounces produced 2,912 46

Cash Cost, Before By-product Credits, per $ 21.71 $ 854 Ounce

By-product credits per ounce (16.74 ) (8 )

Cash Cost, After By-product Credits, per $ 4.97 $ 846 Ounce

AISC, Before By-product Credits, per $ 26.07 $ 985 Ounce

By-product credits per ounce (16.74 ) (8 )

AISC, After By-product Credits, per Ounce $ 9.33 $ 977

In thousands Three Months Ended June 30, 2019(except per ounceamounts) Greens Lucky San Corporate Total Creek Friday^ Sebastian ^(4) Silver (2)

Cost of sales andother directproduction costs $ 45,650 $ 4,951 $ 11,143 $ 61,744 and depreciation,depletion andamortization

Depreciation,depletion and (10,850 ) (422 ) (1,848 ) (13,120 )amortization

Treatment costs 10,964 524 238 11,726

Change in product 4,577 (641 ) (190 ) 3,746 inventory

Reclamation and (933 ) - (422 ) (1,355 )other costs

Exclusion of Lucky - (4,412 ) - (4,412 )Friday cash costs

Cash Cost, BeforeBy-product Credits 49,408 - 8,921 58,329 ^(1)

Reclamation and 738 - 123 861 other costs

Exploration 79 - 1,483 497 2,059

Sustaining capital 8,665 - 1,308 12 9,985

General and 8,918 8,918 administrative

AISC, BeforeBy-product Credits 58,890 - 11,835 80,152 ^(1)

By-product credits:

Zinc (22,221 ) - - (22,221 )

Gold (15,350 ) - (4,645 ) (19,995 )

Lead (6,198 ) - - (6,198 )

Total By-product (43,769 ) - (4,645 ) (48,414 )credits

Cash Cost, After $ 5,639 $ - $ 4,276 $ 9,915 By-product Credits

AISC, After $ 15,121 $ - $ 7,190 $ 31,738 By-product Credits

Divided by ounces 2,372 - 464 2,836 produced

Cash Cost, BeforeBy-product $ 20.83 $ - $ 19.23 $ 20.57 Credits, per Ounce

By-product credits (18.45 ) - (10.01 ) (17.07 )per ounce

Cash Cost, AfterBy-product $ 2.38 $ - $ 9.22 $ 3.50 Credits, per Ounce

AISC, BeforeBy-product $ 24.82 $ - $ 25.51 $ 28.23 Credits, per Ounce

By-product credits (18.45 ) - (10.01 ) (17.07 )per ounce

AISC, AfterBy-product $ 6.37 $ - $ 15.50 $ 11.16 Credits, per Ounce

In thousands (except per ounce amounts) Three Months Ended June 30, 2019

Casa Nevada Total Gold Berardi Operations

Cost of sales and other direct productioncosts and depreciation, depletion and $ 55,152 $ 37,519 $ 92,671 amortization

Depreciation, depletion and amortization (18,561 ) (17,796 ) (36,357 )

Treatment costs 427 36 463

Change in product inventory (2,367 ) (1,969 ) (4,336 )

Reclamation and other costs (128 ) (885 ) (1,013 )

Cash Cost, Before By-product Credits ^(1) 34,523 16,905 51,428

Reclamation and other costs 127 378 505

Exploration 941 698 1,639

Sustaining capital 9,431 12,553 21,984

AISC, Before By-product Credits ^(1) 45,022 30,534 75,556

By-product credits:

Silver (91 ) (739 ) (830 )

Total By-product credits (91 ) (739 ) (830 )

Cash Cost, After By-product Credits $ 34,432 $ 16,166 $ 50,598

AISC, After By-product Credits $ 44,931 $ 29,795 $ 74,726

Divided by ounces produced 31 13 44

Cash Cost, Before By-product Credits, per $ 1,104 $ 1,332 $ 1,170 Ounce

By-product credits per ounce (3 ) (58 ) (19 )

Cash Cost, After By-product Credits, per $ 1,101 $ 1,274 $ 1,151 Ounce

AISC, Before By-product Credits, per Ounce $ 1,440 $ 2,405 $ 1,719

By-product credits per ounce (3 ) (58 ) (19 )

AISC, After By-product Credits, per Ounce $ 1,437 $ 2,347 $ 1,700

In thousands (except per ounce amounts) Three Months Ended June 30, 2019

Total Total Gold Total Silver

Cost of sales and other direct productioncosts and depreciation, depletion and $ 61,744 $ 92,671 $ 154,415 amortization

Depreciation, depletion and amortization (13,120 ) (36,357 ) (49,477 )

Treatment costs 11,726 463 12,189

Change in product inventory 3,746 (4,336 ) (590 )

Reclamation and other costs (1,355 ) (1,013 ) (2,368 )

Exclusion of Lucky Friday cash costs (4,412 ) - (4,412 )

Cash Cost, Before By-product Credits ^(1) 58,329 51,428 109,757

Reclamation and other costs 861 505 1,366

Exploration 2,059 1,639 3,698

Sustaining capital 9,985 21,984 31,969

General and administrative 8,918 - 8,918

AISC, Before By-product Credits ^(1) 80,152 75,556 155,708

By-product credits:

Zinc (22,221 ) - (22,221 )

Gold (19,995 ) - (19,995 )

Lead (6,198 ) - (6,198 )

Silver (830 ) (830 )

Total By-product credits (48,414 ) (830 ) (49,244 )

Cash Cost, After By-product Credits $ 9,915 $ 50,598 $ 60,513

AISC, After By-product Credits $ 31,738 $ 74,726 $ 106,464

Divided by ounces produced 2,836 44

Cash Cost, Before By-product Credits, per $ 20.57 $ 1,170 Ounce

By-product credits per ounce (17.07 ) (19 )

Cash Cost, After By-product Credits, per $ 3.50 $ 1,151 Ounce

AISC, Before By-product Credits, per $ 28.23 $ 1,719 Ounce

By-product credits per ounce (17.07 ) (19 )

AISC, After By-product Credits, per Ounce $ 11.16 $ 1,700

In thousands Six Months Ended June 30, 2020(except perounce amounts) Greens Lucky San Corporate Total Creek Friday^(2) Sebastian ^(4) Silver ^(3)

Cost of salesand otherdirectproduction $ 106,853 $ 14,287 $ 12,311 $ 133,451 costs anddepreciation,depletion andamortization

Depreciation,depletion and (25,417 ) (2,196 ) (2,368 ) (29,981 )amortization

Treatment costs 35,842 3,464 151 39,457

Change inproduct (1,150 ) 796 (145 ) (499 )inventory

Reclamation and 413 - (658 ) (245 )other costs

Exclusion ofLucky Friday - (16,351 ) - (16,351 )costs

Cash Cost,Before 116,541 - 9,291 125,832 By-productCredits ^(1)

Reclamation and 1,577 - 228 1,805 other costs

Exploration 4 - - 664 668

Sustaining 10,011 - 55 - 10,066 capital

General and 15,918 15,918 administrative

AISC, BeforeBy-product 128,133 - 9,574 154,289 Credits ^(1)

By-product credits:

Zinc (35,939 ) - (35,939 )

Gold (36,624 ) (6,716 ) (43,340 )

Lead (14,059 ) - (14,059 )

TotalBy-product (86,622 ) - (6,716 ) (93,338 )credits

Cash Cost,After $ 29,919 $ - $ 2,575 $ 32,494 By-productCredits

AISC, AfterBy-product $ 41,511 $ - $ 2,858 $ 60,951 Credits

Divided by 5,530 - 505 6,035 ounces produced

Cash Cost,BeforeBy-product $ 21.07 $ - $ 18.39 $ 20.85 Credits, perOunce

By-productcredits per (15.66 ) - (13.30 ) (15.47 )ounce

Cash Cost,AfterBy-product $ 5.41 $ - $ 5.09 $ 5.38 Credits, perOunce

AISC, BeforeBy-product $ 23.17 $ - $ 18.95 $ 25.57 Credits, perOunce

By-productcredits per (15.66 ) - (13.30 ) (15.47 )ounce

AISC, AfterBy-product $ 7.51 $ - $ 5.65 $ 10.10 Credits, perOunce

In thousands (except per ounce amounts) Six Months Ended June 30, 2020

Casa Nevada Berardi ^ Operations Total Gold (5) ^(6)

Cost of sales and other directproduction costs and depreciation, $ 93,907 $ 30,471 $ 124,378 depletion and amortization

Depreciation, depletion and amortization (33,678 ) (15,430 ) (49,108 )

Treatment costs 1,132 45 1,177

Change in product inventory 1,208 8,949 10,157

Reclamation and other costs (189 ) (654 ) (843 )

Cash Cost, Before By-product Credits ^ 62,380 23,381 85,761 (1)

Reclamation and other costs 190 654 844

Exploration 1,158 - 1,158

Sustaining capital 12,784 1,600 14,384

AISC, Before By-product Credits ^(1) 76,512 25,635 102,147

By-product credits:

Silver (192 ) (635 ) (827 )

Total By-product credits (192 ) (635 ) (827 )

Cash Cost, After By-product Credits $ 62,188 $ 22,746 $ 84,934

AISC, After By-product Credits $ 76,320 $ 25,000 $ 101,320

Divided by ounces produced 58 32 90

Cash Cost, Before By-product Credits, $ 1,084 $ 736 $ 961 per Ounce

By-product credits per ounce (3 ) (20 ) (9 )

Cash Cost, After By-product Credits, per $ 1,081 $ 716 $ 952 Ounce

AISC, Before By-product Credits, per $ 1,330 $ 807 $ 1,144 Ounce

By-product credits per ounce (3 ) (20 ) (9 )

AISC, After By-product Credits, per $ 1,327 $ 787 $ 1,135 Ounce

In thousands (except per ounce amounts) Six Months Ended June 30, 2020

Total Total Gold Total Silver

Cost of sales and other directproduction costs and depreciation, $ 133,451 $ 124,378 $ 257,829 depletion and amortization

Depreciation, depletion and (29,981 ) (49,108 ) (79,089 )amortization

Treatment costs 39,457 1,177 40,634

Change in product inventory (499 ) 10,157 9,658

Reclamation and other costs (245 ) (843 ) (1,088 )

Exclusion of Lucky Friday costs (16,351 ) - (16,351 )

Cash Cost, Before By-product Credits ^ 125,832 85,761 211,593 (1)

Reclamation and other costs 1,805 844 2,649

Exploration 668 1,158 1,826

Sustaining capital 10,066 14,384 24,450

General and administrative 15,918 - 15,918

AISC, Before By-product Credits ^(1) 154,289 102,147 256,436

By-product credits:

Zinc (35,939 ) - (35,939 )

Gold (43,340 ) - (43,340 )

Lead (14,059 ) - (14,059 )

Silver (827 ) (827 )

Total By-product credits (93,338 ) (827 ) (94,165 )

Cash Cost, After By-product Credits $ 32,494 $ 84,934 $ 117,428

AISC, After By-product Credits $ 60,951 $ 101,320 $ 162,271

Divided by ounces produced 6,035 90

Cash Cost, Before By-product Credits, $ 20.85 $ 961 per Ounce

By-product credits per ounce (15.47 ) (9 )

Cash Cost, After By-product Credits, $ 5.38 $ 952 per Ounce

AISC, Before By-product Credits, per $ 25.57 $ 1,144 Ounce

By-product credits per ounce (15.47 ) (9 )

AISC, After By-product Credits, per $ 10.10 $ 1,135 Ounce

In thousands (except per Six Months Ended June 30, 2019ounce amounts) Greens Lucky San Corporate Total Creek Friday^ Sebastian ^(4) Silver (2)

Cost of sales and otherdirect production costsand depreciation, $ 99,762 $ 7,132 $ 23,495 $ 130,389depletion andamortization

Depreciation, depletion (23,220) (591) (3,608) (27,419)and amortization

Treatment costs 21,316 1,334 369 23,019

Change in product 712 842 (1,043) 511inventory

Reclamation and other (1,347) - (735) (2,082)costs

Exclusion of Lucky - (8,717) - (8,717)Friday cash costs

Cash Cost, Before 97,223 - 18,478 115,701By-product Credits ^(1)

Reclamation and other 1,475 - 246 1,721costs

Exploration 160 - 3,200 938 4,298

Sustaining capital 13,977 - 1,814 73 15,864

General and 18,877 18,877administrative

AISC, Before By-product 112,835 - 23,738 156,461Credits ^(1)

By-product credits:

Zinc (45,506) - - (45,506)

Gold (31,868) (9,247) (41,115)

Lead (13,115) - - (13,115)

Total By-product credits (90,489) - (9,247) (99,736)

Cash Cost, After $ 6,734 $ - $ 9,231 $ 15,965By-product Credits

AISC, After By-product $ 22,346 $ - $ 14,491 $ 56,725Credits

Divided by ounces 4,605 - 905 5,510produced

Cash Cost, BeforeBy-product Credits, per $ 21.11 $ - $ 20.42 $ 21.00Ounce

By-product credits per (19.65) - (10.22) (18.10)ounce

Cash Cost, AfterBy-product Credits, per $ 1.46 $ - $ 10.20 $ 2.90Ounce

AISC, Before By-product $ 24.50 $ - $ 26.24 $ 28.39Credits, per Ounce

By-product credits per (19.65) - (10.22) (18.10)ounce

AISC, After By-product $ 4.85 $ - $ 16.02 $ 10.29Credits, per Ounce

In thousands (except per ounce amounts) Six Months Ended June 30, 2019

Casa Nevada Total Gold Berardi Operations

Cost of sales and other directproduction costs and depreciation, $ 104,233 $ 68,966 $ 173,199 depletion and amortization

Depreciation, depletion and amortization (34,716 ) (26,129 ) (60,845 )

Treatment costs 869 74 943

Change in product inventory (99 ) (5,215 ) (5,314 )

Reclamation and other costs (257 ) (1,264 ) (1,521 )

Cash Cost, Before By-product Credits ^ 70,030 36,432 106,462 (1)

Reclamation and other costs 256 756 1,012

Exploration 2,287 816 3,103

Sustaining capital 15,123 25,260 40,383

AISC, Before By-product Credits ^(1) 87,696 63,264 150,960

By-product credits:

Silver (217 ) (1,796 ) (2,013 )

Total By-product credits (217 ) (1,796 ) (2,013 )

Cash Cost, After By-product Credits $ 69,813 $ 34,636 $ 104,449

AISC, After By-product Credits $ 87,479 $ 61,468 $ 148,947

Divided by ounces produced 63 23 86

Cash Cost, Before By-product Credits, $ 1,110 $ 1,580 $ 1,236 per Ounce

By-product credits per ounce (3 ) (78 ) (23 )

Cash Cost, After By-product Credits, per $ 1,107 $ 1,502 $ 1,213 Ounce

AISC, Before By-product Credits, per $ 1,390 $ 2,744 $ 1,752 Ounce

By-product credits per ounce (3 ) (78 ) (23 )

AISC, After By-product Credits, per $ 1,387 $ 2,666 $ 1,729 Ounce

In thousands (except per ounce amounts) Six Months Ended June 30, 2019

Total Total Gold Total Silver

Cost of sales and other directproduction costs and depreciation, $ 130,389 $ 173,199 $ 303,588 depletion and amortization

Depreciation, depletion and (27,419 ) (60,845 ) (88,264 )amortization

Treatment costs 23,019 943 23,962

Change in product inventory 511 (5,314 ) (4,803 )

Reclamation and other costs (2,082 ) (1,521 ) (3,603 )

Exclusion of Lucky Friday cash costs (8,717 ) - (8,717 )

Cash Cost, Before By-product Credits ^ 115,701 106,462 222,163 (1)

Reclamation and other costs 1,721 1,012 2,733

Exploration 4,298 3,103 7,401

Sustaining capital 15,864 40,383 56,247

General and administrative 18,877 - 18,877

AISC, Before By-product Credits ^(1) 156,461 150,960 307,421

By-product credits:

Zinc (45,506 ) - (45,506 )

Gold (41,115 ) - (41,115 )

Lead (13,115 ) - (13,115 )

Silver (2,013 ) (2,013 )

Total By-product credits (99,736 ) (2,013 ) (101,749 )

Cash Cost, After By-product Credits $ 15,965 $ 104,449 $ 120,414

AISC, After By-product Credits $ 56,725 $ 148,947 $ 205,672

Divided by ounces produced 5,510 86

Cash Cost, Before By-product Credits, $ 21.00 $ 1,236 per Ounce

By-product credits per ounce (18.10 ) (23 )

Cash Cost, After By-product Credits, $ 2.90 $ 1,213 per Ounce

AISC, Before By-product Credits, per $ 28.39 $ 1,752 Ounce

By-product credits per ounce (18.10 ) (23 )

AISC, After By-product Credits, per $ 10.29 $ 1,729 Ounce

Includes all direct and indirect operating costs related to the physical activities of producing metals, including mining, processing and other plant costs, third-party refining and marketing expense, on-site general(1) and administrative costs, royalties and mining production taxes, before by-product revenues earned from all metals other than the primary metal produced at each unit. AISC, Before By-product Credits also includes on-site exploration, reclamation, and sustaining capital costs.



The unionized employees at Lucky Friday were on strike from March 2017 until January 2020, and production at Lucky Friday has been limited since the start of the strike. Costs related to ramp-up activities totaling $9.3 million in the first half of 2020, and suspension-related costs totaling $3.0 million during the strike in the first half of 2019, along with $4.1(2) million and $2.1 million, respectively, in non-cash depreciation expense for those periods, have 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.



In early April 2020, the Government of Mexico issued an order to the mining industry to reduce operations to a minimum level until April 30 in response to COVID-19, and the order was subsequently extended until May 30. Our operations at San Sebastian were suspended during that time.(3) Suspension-related costs totaling $1.0 million for the first half of 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, mining and milling cost per ton, and Cash Cost and AISC, After By-product Credits, per Gold Ounce.



AISC, Before By-product Credits for our consolidated silver properties(4) includes corporate costs for general and administrative expense, exploration and sustaining capital.



In late March 2020, the Government of Quebec ordered the mining industry to reduce to minimum operations as part of the fight against the COVID-19 virus, causing us to suspend our Casa Berardi operations from approximately March 24 until April 15, when limited mining operations resumed, resulting(5) in the reduced mill throughput. Suspension-related costs totaling $1.6 million for the first half of 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.



Production was suspended at the Hollister mine in the third quarter of 2019 and at the Midas mine and Aurora mill in late-2019. Suspension-related costs at Hollister, Midas and Aurora totaling $6.7 million for the first(6) half of 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.

Reconciliation of Net Loss Applicable to Common Shareholders (GAAP) to Adjusted Net Income (Loss) Applicable to Common Stockholders (non-GAAP)

This release refers to a non-GAAP measure of adjusted net loss applicable to common stockholders and adjusted net income (loss) per share, which are indicators of our performance. They exclude certain impacts which are of a nature which we believe are not reflective of our underlying performance. Management believes that adjusted net income (loss) per common share provides investors with the ability to better evaluate our underlying operating performance.

Dollars are in thousands Three Months Ended June(except per share 30, Six Months Ended June 30,amounts)

2020 2019 2020 2019

Net loss applicable tocommon shareholders $ (14,166 ) $ (46,670 ) $ (31,489 ) $ (72,341 )(GAAP)

Adjusting items:

Loss (gains) on 14,002 (3,798 ) 6,109 (1,999 )derivatives contracts

Provisional price (gains) (1,579 ) 1,225 (4,190 ) 700 losses

Foreign exchange loss 3,205 4,381 (3,431 ) 7,514 (gain)

Ramp-up and suspension 9,572 2,266 22,568 5,044 costs

Acquisition costs 6 397 11 410

Unrealized (gain) loss on (6,409 ) 1,129 (5,431 ) 1,033 investments

Foundation grant 1,970 - 1,970 -

Loss on disposition orimpairment of properties, 677 4,642 573 4,642 plants, equipment andmineral interests

Additional interestassociated with early - - 2,902 - repayment of long-termdebt

Loss on extinguishment of - - 1,666 - debt

Adjusted net income(loss) applicable to $ 7,278 $ (36,428 ) $ (8,742 ) $ (54,997 )common shareholders

Weighted average shares - 525,243 486,065 524,218 484,438 basic

Weighted average shares - 531,130 486,065 524,218 484,438 diluted

Basic adjusted net income $ 0.01 $ (0.07 ) $ (0.02 ) $ (0.11 )(loss) per common share

Diluted adjusted netincome (loss) per common $ 0.01 $ (0.07 ) $ (0.02 ) $ (0.11 )share

Reconciliation of Net Loss Income (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 loss before the following items: interest expense, income tax provision, depreciation, depletion, and amortization expense, acquisition costs, foreign exchange gains and losses, gains and losses on derivative contracts, ramp-up and suspension costs, provisional price gains and losses, stock-based compensation, unrealized losses and gains on investments, provisions for closed operations, Foundation grant expense and interest and other income (expense). Net debt is calculated as total debt, which consists of the liability balances for our Senior Notes, revolving credit facility and finance leases, less the total of our cash and cash equivalents. 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 Three Months Ended Six Months Ended Twelve Months Endedin thousands June 30, June 30, June 30,

2020 2019 2020 2019 2020 2019

Net loss $ (14,028 ) $ (46,532 ) $ (31,213 ) $ (72,065 ) $ (58,705 ) $ (118,942 )

Plus:Interest 11,829 11,335 28,140 22,000 54,587 43,071 expense

Plus/(Less): 626 (11,179 ) (436 ) (18,395 ) (6,142 ) (26,291 )Income taxes

Plus:Depreciation, 39,423 49,477 79,089 88,264 190,343 162,437 depletion andamortization

Plus/(Less):Foreign 3,205 4,381 (3,431 ) 7,514 (2,709 ) 2,272 exchange loss(gain)

Plus: Ramp-upand 9,572 2,266 22,568 5,044 29,575 13,919 suspensioncosts

Plus: Lossesondispositionofproperties, 677 4,642 573 4,642 574 2,015 plants,equipment andmineralinterests

Plus:Acquisition 6 397 11 410 246 6,938 costs

Plus:Stock-based 1,210 1,973 2,428 3,552 4,544 7,390 compensation

Plus/(Less):Losses(gains) on 12,594 (4,201 ) 4,767 (2,402 ) 17,128 15,870 derivativecontracts

Plus/Less:Provisional (1,579 ) 1,225 (4,190 ) 700 (45,487 ) 1,921 price (gain)loss

Plus:Provision forclosedoperations 1,545 1,615 3,093 3,209 6,798 6,659 andenvironmentalmatters

Plus/(Less):Unrealized(gain) loss (6,409 ) 1,129 (5,431 ) 1,033 (4,075 ) 3,595 oninvestments

Foundation 1,970 - 1,970 - 1,970 - grant

Other 649 1,187 1,176 2,311 2,371 3,304

Adjusted $ 61,290 $ 17,715 $ 99,114 $ 45,817 $ 231,018 $ 124,158 EBITDA

Total debt $ 531,054 $ 600,072

Less: Cashand cash $ (75,923 ) $ (9,434 )equivalents

Net debt $ 455,131 $ 590,638

Net debt/LTMadjusted 2.0 4.8 EBITDA(non-GAAP)

Reconciliation of Cash Provided by (Used in) Operating Activities (GAAP) to Free Cash Flow (non-GAAP)

This release refers to a non-GAAP measure of free cash flow, calculated as cash provided by (used in) operating activities, less additions to properties, plants, equipment and mineral interests. Management believes that, when presented in conjunction with comparable GAAP measures, free cash flow is useful to investors in evaluating our operating performance. The following table reconciles cash provided by (used in) operating activities to free cash flow:

Dollars are in thousands Three Months Ended June 30,

2020 2019

Cash provided by (used in) operating activities $ 37,526 $ (11,317 )

Less: Additions to properties, plants equipment and (10,819 ) (38,174 )mineral interests

Free cash flow $ 26,707 $ (49,491 )

Table A - Assay Results - Q2 2020

Greens Creek (Alaska)

Depth Drill Drill Sample Sample True Silver Gold Zinc Lead FromZone Hole Hole From To Width (oz/ (oz/ (%) (%) Mine Number Azm/Dip (feet) (feet) (feet) ton) ton) Portal (feet)

East Ore GC5412 63/-63 462.0 463.0 0.7 5.4 0.08 12.7 3.6 266Definition

GC5417 63/-32 332.9 340.0 7.0 12.2 0.09 7.7 2.8 509

GC5418 63/-45 355.0 359.0 3.7 12.5 0.08 13.0 3.6 503

GC5418 63/-45 399.3 400.3 0.9 9.5 0.02 7.0 2.8 418

GC5419 63/-38 330.6 332.5 1.7 12.6 0.06 26.1 8.2 454

GC5420 63/-25 302.5 304.3 1.8 11.4 0.13 4.1 1.6 531

GC5420 63/-25 315.2 316.2 1.0 15.2 0.06 4.5 3.7 523

GC5420 63/-25 327.7 330.7 3.0 10.6 0.12 16.6 5.0 519

GC5424 63/-30 324.8 327.0 2.2 14.3 0.05 16.8 5.7 499

GC5424 63/-30 336.5 337.8 1.3 6.0 0.03 15.3 4.2 489

Casa Berardi (Quebec)

Drill Depth Drill Hole Drill Hole Sample Sample True Gold FromZone Number Hole Azm/ From To Width (oz/ Mine Section Dip (feet) (feet) (feet) ton) Surface (feet)

UG UpperPrincipal 128 CBP-0847 12750 180/-4 326.4 337.2 10.2 0.06 -1589Zone

128 Including 180/-4 326.4 327.7 1.2 0.22 -1589

128 CBP-0848 12750 180/ 383.8 395.6 11.2 0.10 -1694 -22

128 CBP-0848 12750 180/ 405.1 416.9 11.2 0.82 -1699 -22

128 Including 180/ 405.1 409.3 4.1 2.11 -1698 -22

UG East Mine 148 CBE-0207A 14860 358/ 1625.2 1653.1 19.7 0.32 -2839Zone -57

148 Including 358/ 1630.2 1633.4 2.5 0.28 -2835 -57

148 Including 358/ 1636.7 1643.3 4.6 0.78 -2840 -57

148 CBE-0208 14880 6/-55 1676.1 1697.4 13.4 0.07 -2779

148 Including 6/-55 1681.0 1682.6 1.1 0.38 -2776

148 CBE-0218 14830E 4/-63 1704.0 1748.2 31.2 0.20 -2939

148 Including 4/-63 1707.2 1710.5 2.0 1.15 -2927

148 CBE-0219A 14805 4/-71 1877.8 1899.1 12.1 0.04 -3252

148 CBE-0219A 14820 4/-71 1971.3 1986.0 9.2 0.16 -3330

Surface East Mine CBS-20-005 16170 165/ 474.6 478.2 2.6 0.07 -345159 Zone -45

159 CBS-20-006 16170 195/ 242.7 370.6 88.6 0.06 -236 -45

159 Including 195/ 331.3 351.0 13.4 0.24 -260 -45

159 CBS-20-007 16170 180/ 223.0 232.9 6.9 0.04 -179 -45

159 CBS-20-007 16170 180/ 469.0 480.5 7.9 0.04 -345 -45

159 Including 180/ 472.3 474.0 1.3 0.15 -346 -45

Surface East Mine CBF-160-103 15825 360/ 411.0 430.7 15.4 0.06 -319160 Zone -47

160 CBF-160-103 15825 360/ 1153.9 1190.6 27.9 0.04 -832 -47

160 CBF-160-103 15825 360/ 1208.7 1265.4 42.6 0.05 -873 -47

160 Including 360/ 1210.3 1219.2 5.2 0.17 -859 -47

160 CBF-160-103 15825 360/ 1306.1 1323.2 12.8 0.03 -923 -47

160 CBF-160-103 15825 360/ 1371.4 1383.5 8.5 0.03 -964 -47

San Sebastian (Mexico)

Drill Drill Sample Sample True Silver Gold DepthZone Hole Hole From To Width (oz/ (oz/ Zinc Lead Copper From Number Azm/ (feet) (feet) (feet) ton) ton) (%) (%) (%) Surface Dip (feet)

EL TORO SS-2015 75/ 397.0 404.0 5.9 4.5 0.02 0.0 0.0 0.0 340.5VEIN -60

EL TORO SS-2016 75/ 435.3 441.9 4.5 5.6 0.03 0.0 0.0 0.0 404.6VEIN -68

EL TORO SS-2017 75/ 348.3 351.4 2.5 7.8 0.07 0.0 0.0 0.0 293.8VEIN -60

EL TORO SS-2018 75/ 444.8 451.6 5.3 8.4 0.06 0.0 0.0 0.0 385.4VEIN -60

EL TORO SS-2021 75/ 434.1 438.7 3.8 6.0 0.03 0.0 0.0 0.0 373.5VEIN -60

Fire Creek (Nevada)

Depth Drill Drill Sample Sample True Gold Silver FromZone Hole Hole From To Width (oz/ (oz/ Mine Number Azm/Dip (feet) (feet) (feet) ton) ton) Portal (feet)

Spiral FCU-1174 73/-14 19.8 21.4 1.5 0.30 0.3 -5174

Spiral FCU-1174 73/-14 27.0 32.1 4.8 0.79 0.9 -5194

Spiral including 28.8 30.8 1.9 1.13 1.4 -5194

Spiral including 30.8 32.1 1.2 1.12 1.0 -5204

Spiral FCU-1174 73/-14 345.3 349.0 3.6 0.19 1.6 -5964

Spiral FCU-1174 73/-14 366.0 368.0 1.9 0.12 0.3 -6014

Spiral FCU-1175 84/-22 244.5 246.0 1.3 0.20 0.3 -6044

Spiral FCU-1175 84/-22 364.0 365.0 0.8 0.31 1.2 -6494

Spiral FCU-1175 84/-22 547.0 552.7 4.8 0.29 0.5 -7184

Spiral including 547.0 548.7 1.4 0.43 0.3 -7174

Spiral including 550.0 551.0 0.8 0.60 0.3 -7184

Spiral FCU-1175 84/-22 564.5 566.0 1.3 0.29 0.3 -7244

Spiral FCU-1175 84/-22 583.0 583.8 0.7 2.63 26.6 -7314

Category: Earnings

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CONTACT: Mike Westerlund Vice President - Investor Relations 800-HECLA91 (800-432-5291) Email: hmc-info@hecla-mining.com Website: www.hecla-mining.com