Hecla Mining Company

Equities

HL

US4227041062

Non-Gold Precious Metals & Minerals

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Hecla Mining : Reports Third Quarter 2018 Results

November 08, 2018 at 03:06 am EST

Casa Berardi has record low costs

Hecla Mining Company (NYSE:HL) today announced third quarter financial and operating results.

HIGHLIGHTS

Net loss applicable to common shareholders of $23.3 million, or $0.05 per share on lower prices of all four metals.
Cost of sales and other direct production costs and depreciation, depletion and amortization ("cost of sales") of $137.1 million.
Gross profit of $6.6 million and adjusted EBITDA of $40.3 million.¹
Silver production of 2.5 million ounces at cash cost, after by-product credits, of $4.12 per ounce.²
Gold production of 72,995 ounces, up 16%, mainly due to additional ounces from Nevada.
Casa Berardi All In Sustaining Costs ("AISC"), after by-product credits, reduced to $896 per gold ounce, on higher throughput and lower stripping costs.³
Aggressive $12 million exploration spending was highest in Company history (see exploration press release issued November 6, 2018).
Strong financial position: Cash and cash equivalents of $60.9 million at September 30, 2018. Revolving line of credit undrawn at quarter end. Credit limit increased to $250 million on November 1, 2018.
Estimates for annual Company-wide silver and gold production and costs are refined.

"Our strategy is working. The EBITDA we generated despite low metals prices is a result of the improvements we made in our mines. A case in point is Casa Berardi, which is generating strong cash flow, with lower costs, higher mine throughput and an extended mine life," said Phillips S. Baker, Jr., President and CEO. "The Nevada operations are on the same path as Casa Berardi and Greens Creek, with the development and processes which should increase throughput and make the mines more efficient. In the meantime, the higher costs in Nevada are short-term and a function of electing to produce less to avoid sterilizing newly discovered mineralization."

"Greens Creek has been in production for about 30 years, but the mine continues to improve with a new mine plan that significantly increases its value. San Sebastian continues to mine the underground oxide ores and is on the verge of collecting the sulfide bulk sample which could supplement current production as well as significantly extend mine life. At Lucky Friday, our salaried employees are now focusing on production, rather than development, to minimize the financial impact of the strike. Finally, we don't have any large capital projects looming, and we plan to operate at a cash neutral basis, using our $250 million revolving line of credit sparingly to temporarily fund working capital requirements. We do not consider it a long-term source of borrowing," Mr. Baker added.

FINANCIAL OVERVIEW
	Third Quarter Ended			Nine Months Ended
HIGHLIGHTS	September 30, 2018		September 30, 2017	September 30, 2018		September 30, 2017
FINANCIAL DATA
Sales (000)	$143,649		$140,839	$430,617		$417,662
Gross profit (000)	$6,576		$42,963	$80,364		$106,139
(Loss) income applicable to common shareholders (000)	($23,322	)	$176	($3,284	)	$33
Basic and diluted (loss) income per common share	($0.05	)	$—	($0.01	)	$—
(Loss) income (000)	($23,184	)	$314	($2,870	)	$447
Cash provided by operating activities (000)	$28,192		$28,294	$75,210		$74,115

Net loss applicable to common shareholders for the third quarter was $23.3 million, or $0.05 per share, compared to net income of $0.2 million, or $0.00 per share, for the same period a year ago, the result mainly due to the following items:

Sales of $143.6 million were impacted by lower silver and gold production at San Sebastian and Greens Creek, offset by the addition of Nevada sales in the third quarter 2018.
Lower realized silver and gold metals prices, as well as lower realized base metals prices.
Gain on base metal derivatives contracts of $19.5 million, which was net of realized gains on contracts monetized for cash proceeds of $32.8 million in the quarter.
Net foreign exchange loss of $2.2 million versus a loss of $4.9 million in the third quarter of 2017 due to a weakening of the Canadian dollar.
Interest expense, net of amount capitalized, of $10.1 million in the third quarter of 2018, increased over the $9.4 million recognized in the third quarter of 2017.
An increase of $4.6 million in exploration and pre-development expenditures over the third quarter of 2017, particularly focused on Nevada and San Sebastian operations.
Suspension-related costs of $6.5 million included Lucky Friday costs, as well as $1.1 million for curtailment of production from the Midas Mine in Nevada, along with $1.4 million in non-cash depreciation expense, in the third quarter of 2018.
Acquisition costs of $6.1 million recorded in the third quarter 2018.

Operating cash flow was $28.2 million compared to $28.3 million in the third quarter of 2017, and included the proceeds received by monetizing the base metals hedges, offset by the net loss and lower working capital changes recorded in the third quarter 2018.

Adjusted EBITDA was $40.3 million compared to $60.5 million in the third quarter of 2017, with the decrease mainly due to lower base metals prices, higher exploration expense due to the addition of Hecla Nevada, and acquisition costs recorded in the third quarter 2018.

Capital expenditures (excluding capitalized interest) totaled $40.7 million for the third quarter 2018 compared to $25.5 million in the third quarter of 2017, with the increase mainly due to the addition of Hecla Nevada, capitalization of costs recorded in the third quarter 2018 for the Remote Vein Miner (RVM) project at Lucky Friday, and costs related to underground sulfide development at San Sebastian, partly offset by lower capital spending at Casa Berardi. Expenditures at the operations were $15.0 million at Hecla Nevada, $11.0 million at Greens Creek, $8.2 million at Casa Berardi, $4.8 million at Lucky Friday and $1.6 million at San Sebastian.

Metals Prices

The average realized silver price in the third quarter 2018 was $14.68 per ounce, 14% lower than the $17.01 price realized in the third quarter of 2017. The average realized gold price in the third quarter was $1,205 per ounce, 6% lower than the prior year period. Realized lead and zinc prices decreased by 13%, and 22% respectively, from the third quarter of 2017.

OPERATIONS OVERVIEW

Overview

The following table provides the production summary on a consolidated basis for the third quarter and nine months ended September 30, 2018 and 2017:

		Third Quarter Ended		Nine Months Ended
		September 30, 2018	September 30, 2017	September 30, 2018	September 30, 2017
PRODUCTION SUMMARY
Silver -	Ounces produced	2,523,691	3,323,157	7,654,118	9,500,058
	Payable ounces sold	2,588,478	2,540,817	6,993,695	8,098,652
Gold -	Ounces produced	72,995	63,046	191,116	171,720
	Payable ounces sold	68,568	57,380	183,050	161,921
Lead -	Tons produced	4,238	5,370	15,387	18,426
	Payable tons sold	3,986	2,936	12,599	13,612
Zinc -	Tons produced	12,795	14,497	42,312	43,000
	Payable tons sold	9,282	8,444	30,072	29,269

The following tables provide a summary of the final production, cost of sales, cash cost, after by-product credits, per silver and gold ounce, and AISC, after by-product credits, per silver and gold ounce for the third quarter and nine months ended September 30, 2018:

Third Quarter Ended							Greens Creek					Lucky Friday			San Sebastian					Casa Berardi					Nevada Ops
Sept 30, 2018	Silver			Gold			Silver			Gold		Silver			Silver			Gold		Gold			Silver		Gold		Silver
Production (ounces)	2,523,691			72,995			1,876,417			11,559		31,639			521,931			3,666		43,981			9,559		13,789		84,145
Increase/(decrease) over 2017	(24		)%	16		%	(20		)%	(8	)%	(64		)%	(41		)%	(42	)%	—		%	(1	)%	N/A		N/A
Cost of sales & other direct production costs and depreciation, depletion and amortization (000)	$	66,487		$	70,586		$	52,163		N/A		N/A			$	14,325		N/A		$	51,267		N/A		$	19,319	N/A
Increase/(decrease) over 2017	37		%	43		%	24		%	N/A		N/A			114		%	N/A		4		%	N/A		N/A		N/A
Cash costs, after by-prod credits, per silver or gold ounce ^2,4	$	4.12		$	803		$	1.92		N/A		N/A			$	12.02		N/A		$	686		N/A		$	1,179	N/A
Increase/(decrease) over 2017	(754		)%	7		%	(1,380		)%	N/A		N/A			485		%	N/A		(9		)%	N/A		N/A		N/A
AISC, after by-prod credits, per silver or gold ounce ³	$	15.68		$	1,143		$	9.20		N/A		N/A			$	16.95		N/A		$	896		N/A		$	1,932	N/A
Increase/(decrease) over 2017	136		%	5		%	106		%	N/A		N/A			2,142		%	N/A		(18		)%	N/A		N/A		N/A

Nine Months Ended							Greens Creek					Lucky Friday			San Sebastian					Casa Berardi					Nevada Ops
Sept 30, 2018	Silver			Gold			Silver			Gold		Silver			Silver			Gold		Gold			Silver		Gold		Silver
Production (ounces)	7,654,118			191,116			5,789,440			38,396		156,015			1,593,770			12,051		126,880			30,748		13,789		84,145
Increase/(decrease) over 2017	(19		)%	11		%	(7		)%	(2	)%	(80		)%	(36		)%	(37	)%	12		%	15	%	N/A		N/A
Cost of sales and other direct production costs and depreciation, depletion and amortization (000)	$	178,784		$	171,469		$	141,763		N/A		$	5,844		$	31,177		N/A		$	152,150		N/A		$	19,319	N/A
Increase/(decrease) over 2017	3		%	24		%	1		%	N/A		(60		)%	70		%	N/A		10		%	N/A		N/A		N/A
Cash costs, after by-prod credits, per silver or gold ounce ^2,4	$	0.05		$	802		$	(2.22	)	N/A		N/A			$	8.28		N/A		$	760		N/A		$	1,179	N/A
Increase/(decrease) over 2017	(69		)%	(7		)%	(404		)%	N/A		N/A			356		%	N/A		(11		)%	N/A		N/A		N/A
AISC, after by-prod credits, per silver or gold ounce ³	$	10.71		$	1,095		$	4.71		N/A		N/A			$	13.34		N/A		$	1,004		N/A		$	1,932	N/A
Increase/(decrease) over 2017	33		%	(11		)%	(16		)%	N/A		N/A			9,629		%	N/A		(18		)%	N/A		N/A		N/A

Greens Creek Mine - Alaska

At the Greens Creek mine, 1.9 million ounces of silver and 11,559 ounces of gold were produced in the third quarter, compared to 2.3 million ounces and 12,563 ounces, respectively, in the third quarter of 2017. Lower silver production was expected as a result of lower grades due to mine sequencing. The mill operated at an average of 2,316 tons per day (tpd) in the third quarter, 3% lower than the third quarter of 2017.

The cost of sales for the third quarter was $52.2 million, and the cash cost, after by-product credits, per silver ounce, was $1.92, compared to $41.9 million and ($0.15), respectively, for the third quarter of 2017.² The AISC, after by-product credits, was $9.20 per silver ounce for the third quarter compared to $4.47 in the third quarter of 2017.³ The per ounce silver costs were higher primarily due to lower base metals prices and the number of tons milled.

A new 2019 mine plan should reduce the amount of development in the next four years to access significant ore reserves at shallower depth in proximity to old workings (East Ore). It also utilizes existing workings, rather than developing a new ramp system, to access these materials and brings this higher-grade ore into production beginning in 2019, instead of near the end of the mine life, which should increase revenues over the next few years. The combination of exploration success over the past year and the optimization of sequencing should enable the mine life to be maintained or extended.

"When we acquired Greens Creek, our goal was consistency of production at an increased throughput. Having achieved that we moved to continuous improvements like the increased recoveries in the mill. Now we have identified a new mine plan that improves the mine's economics by increasing production, reducing both development and the mining fleet while potentially extending the mine life. The improvements we have made to this mine demonstrate the importance of having a long mine life that allows the time to make improvements and realize their benefits," said Mr. Phillips S. Baker, Jr.

Casa Berardi - Quebec

At the Casa Berardi mine, 43,981 ounces of gold were produced in the third quarter, the second highest quarterly gold production since acquisition, including 7,614 ounces from the East Mine Crown Pillar (EMCP) pit; compared to 44,141 ounces in the third quarter of 2017. The steady production was primarily due to ore throughput. The mill operated at an average of 3,846 tpd in the third quarter, the highest rate since acquisition, and an increase of 8% over the third quarter of 2017.

The cost of sales was $51.3 million for the third quarter and the cash cost, after by-product credits, per gold ounce was $686, compared to $49.3 million and $750, respectively, in the prior year period.^2,4The decrease in cash cost, after by-product credits, per gold ounce is due to the higher gold production. The AISC, after by-product credits, was $896 per gold ounce for the third quarter compared to $1,091 in the third quarter of 2017, primarily due to lower capital spending.³

The automated 985 drift project continues to improve the operating efficiency of the mine, with the autonomous haul truck running better and with higher availability than originally anticipated. The second 40-ton Sandvik autonomous haul truck is scheduled to arrive in the fourth quarter. Operating two autonomous trucks is expected to result in operating savings of several million dollars a year.

"Casa Berardi was the standout mine for us this quarter. The improvements and innovations we have made in the mine are paying off with the declining cost profile, higher gold production and cash flow on record throughput," said Mr. Phillips S. Baker, Jr. "We are very proud of the cover story on Casa Berardi in CIM's September/October issue."

San Sebastian - Mexico

At the San Sebastian mine, 521,931 ounces of silver and 3,666 ounces of gold were produced in the third quarter, compared to 880,885 ounces and 6,342 ounces, respectively, in the third quarter of 2017. The lower silver and gold production was expected as a result of lower grades. The mill operated at an average of 432 tpd, an increase of 9% over the third quarter of 2017.

The cost of sales was $14.3 million for the third quarter and the cash cost, after by-product credits, was $12.02 per silver ounce, compared to $6.7 million and ($3.12), respectively, in the third quarter of 2017.² The AISC, after by-product credits, was $16.95 per silver ounce for the third quarter compared to ($0.83) in the third quarter of 2017, principally due to the higher costs of mining underground versus higher-grade stockpiles and work being conducted on the Velardeña tailings facility.³The Company plans to process a bulk sample by the end of the year with revenues expected in the first quarter of 2019. If successful, this could lead to the beginning of mining of the sulfides by late 2019.

"The upcoming bulk sample of the Hugh Zone sulfide material could significantly increase the mine life. We plan to continue our "capital lite" strategy here since we already have a contract with a third-party mill and anticipate using a contract miner. With almost no capital at risk, the returns on the investment have been extraordinary," said Mr. Phillips S. Baker, Jr.

Nevada Operations (acquired on July 20, 2018)

For the period July 20 to September 30, 2018, 13,789 ounces of gold were produced. The Nevada operations are focused on development and exploration activities at Fire Creek and Hollister at the expense of production. Little development had been undertaken during 2018 at these properties by the former owners. Our expectation is to increase Fire Creek throughput from 350 tons per day to 550 tons per day by mid-2019. The development of a drift to the Hatter Graben exploration target is underway with completion expected late in 2019.

During the reporting period, approximately $15.0 million in capital and $4.5 million in exploration expense was invested in Nevada. Of the $15.0 million in capital, $7.3 million related to the completion of the tailings facility at Midas which should provide the necessary waste capacity for the next four years, while $7.0 million was for development that is needed to increase Fire Creek and Hollister mine throughput, and $0.7 million was spent on completing the CIL circuit at the Midas Mill which is expected to increase the recoveries of the ore being processed from Hollister.

Notable highlights include:

General
- Movement of personnel and equipment to Fire Creek and Hollister is substantially complete.
Midas
- Production at Midas is winding down with minimal production of previously developed ore planned until year end.
- Midas mill CIL tanks are operational, and completion of the remaining installation work is expected in the fourth quarter.
- New tailings storage facility is on track for completion in 2018.
Fire Creek
- Now fully staffed (with the addition of the Midas crews).
- Ground conditions are improving and new in-cycle procedures have been developed for consistent development advance rates.
- The ramp-up in development is proceeding with the addition of more headings.
- Installation of the shotcrete plant is nearing completion, will be added to the development cycle to mitigate ground issues and support rehabilitation of existing haulage ways.
- The mining of select high-grade zones has been moved from Q3 2018 into 2019 as the ore extended vertically farther than expected, and development is needed for full extraction of the ore panels.
Hollister/Hatter Graben
- Development of the Hatter Graben is ahead of schedule with about 10% of the footage completed.

"In the 100 days we have owned the Nevada properties we have been in continuous change - winding down Midas, resolving the roadbed issues at Fire Creek, advancing the development at Hatter Graben, and completing the capital projects on the mill and tailings facility. We expect the pace of change to continue as we commission a new batch plant that should improve ground control, test a road-header to improve mining in soft rock and rework the mine plan as we gain more knowledge. However, we don't believe we will need to make significant new financial investment to put the mine on the same improvement path that we have seen at Greens Creek and Casa Berardi," said Mr. Phillips S. Baker, Jr.

Lucky Friday Mine - Idaho

At the Lucky Friday mine, 31,639 ounces of silver were produced in the third quarter, compared to 88,298 ounces in the third quarter of 2017, with the salaried workers focused mostly on development.

There was no cost of sales for the third quarter, as there were no concentrate shipments during the quarter.

The Company is now focusing on limited production by salaried staff to help minimize the financial impact of the ongoing strike. In addition, construction of the Remote Vein Miner (RVM) continues in Sweden. The RVM has the potential to revolutionize how the mine operates, making it safer and more efficient. Costs related to care-and-maintenance of the mine are reported in a separate line item in our condensed consolidated statement of operations and are excluded from the calculation of cost of sales, cash cost, after by-product credits, per silver ounce and AISC, after by-product credits, per silver ounce.

"Lucky Friday has the longest mine life of all our properties, but at these silver prices and with the work rules the union workers have clung to, even at full production the mine doesn't generate significant free cash flow. So, we are operating to minimize the cash consumption before we go back into production which we expect to be primarily from the RVM," said Phillips S. Baker, Jr.

EXPLORATION AND PRE-DEVELOPMENT

Expenditures

Exploration (including corporate development) expenses were $12.4 million, an increase of $5.2 million compared to the third quarter of 2017. Full year exploration (including corporate development) expenses are expected to be $35 million, up from $23.5 million in 2017, in part reflecting exploration at the Nevada operations, San Sebastian, Casa Berardi and Greens Creek and drilling at Kinskuch and Little Baldy.

A complete summary of exploration for the third quarter can be found in the news release entitled "Hecla Reports Continued Drilling Success in the Third Quarter" released on November 6, 2018.

"This quarter's exploration, at $12 million, is 60% more than any quarter in the past five years primarily as a result of adding Nevada exploration to an already substantial program. While there are good results from all the programs, we plan to pare back future expenditures to operate within cash flow," said Mr. Phillips S. Baker, Jr.

PRE-DEVELOPMENT

Pre-development spending was $1.2 million for the quarter, for permitting of Rock Creek and Montanore.

In August, the U.S. Forest Service issued its Final Record of Decision (ROD) authorizing Phase 1, which is the exploration phase, for Rock Creek.

At the Montanore project, the Forest Service continues to work on a Supplemental Environmental Impact Statement (EIS), pursuant to the 2017 Montana Federal District Court remand of the previous Forest Service ROD. The court's decision allows the agency to advance authorizations for the initial evaluation phase of the project. A draft Supplemental EIS is anticipated in the first half of 2019.

BASE METALS AND CURRENCY HEDGING

Base Metals Forward Sales Contracts

There are no forward sales contracts outstanding at this time, other than provisional hedges (which address changes in prices between shipment and settlement with customers).

Foreign Currency Forward Purchase Contracts

The following table summarizes the quantities of Canadian dollars and Mexican pesos committed under financially settled forward purchase contracts at September 30, 2018:

	Currency Under Contract (in thousands of CAD/MXN)		Average Exchange Rate
	CAD	MXN	CAD/USD	MXN/USD
2018 settlements	29,300	47,110	1.30	19.66
2019 settlements	91,200	124,320	1.31	20.28
2020 settlements	61,700	7,100	1.29	20.72
2021 settlements	36,500	—	1.28	—
2022 settlements	6,400	—	1.27	—

2018 ESTIMATES⁵

The Company is providing updated annual estimates as follows:

2018 Production Outlook

	Silver Production (Moz)		Gold Production (Koz)		Silver Equivalent (Moz)		Gold Equivalent (Koz)
	Original (if revised)	Current	Original (if revised)	Current	Original (if revised)	Current	Original (if revised)	Current
Greens Creek	7.5-8.1	7.6-7.9	50-55	50-53	21.0-22.5	21.1-22.1	300-315	301-310
Lucky Friday
San Sebastian	2.0-2.5	2.0-2.2	15-17	15-16	2.9-3.7	2.9-3.3	41-52	41-47
Casa Berardi			157-162	161-165	11.0-11.5	11.3-11.7	157-162	161-165
Nevada Operations		0.1-0.2	40-50	36-41	2.9-3.8	2.6-3.1	41-52	37-43
Total	9.5-10.6	9.7-10.3	262-284	262-275	37.8-41.5	37.9-40.2	539-581	540-565

2018 Cost Outlook

	Costs of Sales (million)				Cash cost, after by-product credits, per silver/gold ounce^2,4						AISC, after by-product credits, per produced silver/gold ounce³
	Original (if revised)		Current		Original (if revised)			Current			Original (if revised)		Current
Greens Creek	$	198	$	183	$	(0.50	)	$	(1.00	)	$	7.00	$	6.00
Lucky Friday
San Sebastian	$	44	$	42	$	8.50		$	9.50		$	12.50	$	14.00
Total Silver	$	242	$	225	$	1.50		$	1.00		$	12.75	$	12.25
Casa Berardi	$	185	$	203	$	800		$	775		$	1,100	$	1,050
Nevada Operations	$	68	$	64	$	800		$	1,275		$	1,100	$	1,875
Total Gold	$	253	$	267	$	800		$	850		$	1,100	$	1,200

2018 Capital and Exploration Outlook
	Original (if revised)	Current
2018E Capital expenditures (excluding capitalized interest)		$140-$145 million
2018E Exploration expenditures (includes Corporate Development)	$34-$37 million	$35-$37 million
2018E Pre-development expenditures	$5 million	$4 million
2018E Research and Development expenditures	$6-$10 million	$7-$9 million

DIVIDENDS

The Board of Directors declared a quarterly cash dividend of $0.0025 per share of common stock, payable on or about December 3, 2018, to stockholders of record on November 20, 2018. The realized silver price was $14.68 in the third quarter and therefore did not satisfy the criteria for a larger dividend under the Company's dividend policy.

The Board of Directors also declared the regular quarterly dividend of $0.875 per share on the 157,816 outstanding shares of Series B Cumulative Convertible Preferred Stock. This represents a total amount to be paid of approximately $138,000. The cash dividend is payable on or about January 2, 2019 to shareholders of record on December 14, 2018.

CONFERENCE CALL AND WEBCAST

A conference call and webcast will be held Thursday, November 8, at 10:00 a.m. Eastern Time to discuss these results. You may join the conference call by dialing toll-free 1-855-760-8158 or for international dialing 1-720-634-2922. The participant passcode is HECLA. Hecla's live and archived webcast can be accessed at www.hecla-mining.com under Investors or via Thomson StreetEvents Network.

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 growing gold producer with operating mines in Quebec, Canada and in Nevada. The Company also has exploration and pre-development properties in eight world-class silver and gold mining districts in the U.S., Canada and Mexico.

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 EBITDA is a non-GAAP measurement, a reconciliation of which to net income (loss), 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 (loss), 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.

⁽²⁾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 primary silver 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 primary silver mining companies. With regard to Casa Berardi and the Nevada operations, management uses cash cost, after by-product credits, per gold ounce to compare its performance with other gold mines. 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 third quarters of 2018 and 2017 and year to date 2018, 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. The estimated fair value of the stockpile acquired at Hollister has been removed from the cash cost, after by-product credits calculation.

⁽³⁾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 of 2018 and 2017 and the first half of 2018, 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.

⁽⁴⁾ Cash cost, after by-product credits, per gold ounce is only applicable to Casa Berardi and Nevada production. Gold produced from Greens Creek and San Sebastian is treated as a by-product credit against the silver cash cost.

Other

⁽⁵⁾ Expectations for 2018 includes silver, gold, lead and zinc production from Greens Creek, San Sebastian, Casa Berardi and Nevada operations converted using Au $1,250/oz, Ag $16.00/oz, Zn $1.25/lb, and Pb $1.00/lb. Lucky Friday expectations are currently suspended as there is currently a strike. Numbers may be rounded.

Cautionary Statements to Investors on Forward-Looking Statements

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. Such forward-looking statements may include, without limitation: (i) estimates of future production and sales; (ii) the impact of the Klondex acquisition on the Company's operations and results; (iii) expectations regarding the development, growth potential, financial performance of the Company’s projects; (iv) ability to complete construction of the remote vein miner and for it to operate successfully; (v) impact of the Lucky Friday strike on production and cash flow; (vi) ability to generate value from innovations being introduced into the mines; (vii) impact of metals prices on cash costs, after by-product credits; and (viii) ability to permit and timing of Montana projects. 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: (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 rates for the Canadian dollar and Mexican peso to the U.S. dollar, 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; and (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. 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 2017 Form 10-K, filed on February 15, 2018, and Forms 10-Q filed on May 10, 2018 and August 9, 2018, with the Securities and Exchange Commission (SEC), as well as the Company’s other SEC filings. The Company does not undertake any obligation to publicly release 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.


HECLA MINING COMPANY Condensed Consolidated Statements of (Loss) Income (dollars and shares in thousands, except per share amounts - unaudited)

	Third Quarter Ended						Nine Months Ended
	September 30, 2018			September 30, 2017			September 30, 2018			September 30, 2017
Sales of products	$	143,649		$	140,839		$	430,617		$	417,662
Cost of sales and other direct production costs	93,609			68,358			246,918			224,537
Depreciation, depletion and amortization	43,464			29,518			103,335			86,986
	137,073			97,876			350,253			311,523
Gross profit	6,576			42,963			80,364			106,139

Other operating expenses:
General and administrative	10,327			9,529			27,849			29,044
Exploration	12,411			7,255			27,609			17,622
Pre-development	1,195			1,757			3,615			4,061
Research and development	1,269			1,130			5,042			2,125
Other operating expense	448			134			1,767			1,590
Gain on disposition of properties, plants, equipment and mineral interests	(3,208		)	(4,830		)	(3,374		)	(4,924		)
Provision or closed operations and reclamation	1,852			2,940			4,534			5,044
Suspension-related costs	6,519			4,780			18,337			14,385
Acquisition costs	6,139			—			9,656			25
	36,952			22,695			95,035			68,972
Income from operations	(30,376		)	20,268			(14,671		)	37,167
Other income (expense):
Gain (loss) on derivative contracts	19,460			(11,226		)	40,271			(16,548		)
Loss on disposition of investments	(36		)	—			(36		)	(167		)
Unrealized (loss) gain on investments	(2,207		)	(124		)	(2,461		)	(73		)
Foreign exchange (loss) gain	(2,212		)	(4,917		)	2,856			(10,258		)
Interest income and other (expense) income	(346		)	541			(294		)	1,185
Interest expense, net of amount capitalized	(10,146		)	(9,358		)	(30,019		)	(28,423		)
	4,513			(25,084		)	10,317			(54,284		)
(Loss) income before income taxes	(25,863		)	(4,816		)	(4,354		)	(17,117		)
Income tax benefit	2,679			5,130			1,484			17,564
Net (loss) income	(23,184		)	314			(2,870		)	447
Preferred stock dividends	(138		)	(138		)	(414		)	(414		)
(Loss) income applicable to common shareholders	$	(23,322	)	$	176		$	(3,284	)	$	33
Basic (loss) income per common share after preferred dividends	$	(0.05	)	$	—		$	(0.01	)	$	—
Diluted (loss) income per common share after preferred dividends	$	(0.05	)	$	—		$	(0.01	)	$	—
Weighted average number of common shares outstanding - basic	452,636			398,848			417,532			396,809
Weighted average number of common shares outstanding - diluted	452,636			401,258			417,532			400,176

HECLA MINING COMPANY

Condensed Consolidated Balance Sheets

(dollars and share in thousands - unaudited)

September 30, 2018

December 31, 2017

ASSETS

Current assets:

Cash and cash equivalents

60,856

186,107

Short-term investments and securities

—

33,758

Accounts receivable:

Trade

12,947

14,805

Other, net

26,928

17,385

Inventories

76,088

55,466

Other current assets

21,510

13,715

Total current assets

198,329

321,236

Non-current investments

7,190

7,561

Non-current restricted cash and investments

1,010

1,032

Properties, plants, equipment and mineral interests, net

2,487,429

1,999,311

Non-current deferred income taxes

1,601

1,509

Other non-current assets and deferred charges

14,699

14,509

Total assets

2,710,258

2,345,158

LIABILITIES

Current liabilities:

Accounts payable and accrued liabilities

65,755

46,549

Accrued payroll and related benefits

29,488

31,259

Accrued taxes

8,274

5,919

Current portion of capital leases

6,069

5,608

Current portion of accrued reclamation and closure costs

6,621

6,679

Other current liabilities

16,249

16,116

Total current liabilities

132,456

112,130

Capital leases

8,638

6,193

Accrued reclamation and closure costs

99,314

79,366

Long-term debt

534,067

502,229

Non-current deferred tax liability

164,928

124,352

Non-current pension liability

44,097

46,628

Other non-current liabilities

4,689

12,983

Total liabilities

988,189

883,881

SHAREHOLDERS’ EQUITY

Preferred stock

Common stock

121,283

100,926

Capital surplus

1,872,946

1,619,816

Accumulated deficit

(223,280

)

(218,089

)

Accumulated other comprehensive loss

(28,183

)

(23,373

)

Treasury stock

(20,736

)

(18,042

)

Total shareholders’ equity

1,722,069

1,461,277

Total liabilities and shareholders’ equity

2,710,258

2,345,158

Common shares outstanding

479,909

399,176


HECLA MINING COMPANY Condensed Consolidated Statements of Cash Flows(dollars in thousands - unaudited)

	Nine Months Ended
	September 30, 2018			September 30, 2017
OPERATING ACTIVITIES
Net (loss) income	$	(2,870	)	$	447
Non-cash elements included in net (loss) income:
Depreciation, depletion and amortization	108,814			91,255
Loss on disposition of investments	—			167
Gain on disposition of properties, plants, equipment and mineral interests	(3,374		)	(4,924		)
Unrealized loss on investments	2,461			73
Adjustment of inventory to market value	7,232			—
Provision for reclamation and closure costs	3,957			3,379
Stock compensation	4,672			4,943
Deferred income taxes	(4,637		)	(23,467		)
Amortization of loan origination fees	1,471			1,415
(Gain) loss on derivative contracts	(15,208		)	16,718
Foreign exchange (gain) loss	(2,032		)	10,520
Other non-cash items, net	(37		)	(1		)
Change in assets and liabilities:
Accounts receivable	(4,424		)	4,903
Inventories	(18,954		)	(9,611		)
Other current and non-current assets	(5,569		)	(2,685		)
Accounts payable and accrued liabilities	12,308			(7,759		)
Accrued payroll and related benefits	(4,207		)	(913		)
Accrued taxes	845			(4,469		)
Accrued reclamation and closure costs and other non-current liabilities	(5,238		)	(5,876		)
Cash provided by operating activities	75,210			74,115

INVESTING ACTIVITIES
Additions to properties, plants, equipment and mineral interests	(83,285		)	(70,390		)
Acquisition of Klondex, net of cash and restricted cash acquired	(139,326		)	—
Proceeds from disposition of properties, plants and equipment	722			151
Insurance proceeds received for damaged property	4,377			5,628
Purchases of investments	(31,971		)	(36,916		)
Maturities of short-term investments	64,895			31,169
Net cash used in investing activities	(184,588		)	(70,358		)

FINANCING ACTIVITIES
Proceeds from issue of stock, net of related costs	3,085			9,610
Acquisition of treasury shares	(2,694		)	(2,993		)
Dividends paid to common shareholders	(3,193		)	(2,978		)
Dividends paid to preferred shareholders	(414		)	(414		)
Debt origination fees	(2,460		)	(476		)
Repayments of debt	(82,036		)	(470		)
Borrowings on debt	78,024			—
Payments on capital leases	(5,992		)	(5,065		)
Net cash used in financing activities	(15,680		)	(2,786		)
Effect of exchange rates on cash	(215		)	1,051
Net increase in cash, cash equivalents and restricted cash and cash equivalents	(125,273		)	2,022
Cash, cash equivalents and restricted cash and cash equivalents at beginning of period	187,139			171,977
Cash, cash equivalents and restricted cash and cash equivalents at end of period	$	61,866		$	173,999


HECLA MINING COMPANY Production Data

	Three Months Ended					Nine Months Ended
	September 30, 2018		September 30, 2017			September 30, 2018			September 30, 2017
GREENS CREEK UNIT
Tons of ore milled	213,037		219,983			632,876			627,900
Mining cost per ton	$	68.76	$	69.46		$	69.19		$	69.64
Milling cost per ton	$	31.97	$	31.01		$	32.73		$	32.38
Ore grade milled - Silver (oz./ton)	11.65		13.65			11.94			12.84
Ore grade milled - Gold (oz./ton)	0.087		0.089			0.094			0.095
Ore grade milled - Lead (%)	2.40		2.77			2.84			2.83
Ore grade milled - Zinc (%)	6.87		7.47			7.58			7.49
Silver produced (oz.)	1,876,417		2,344,315			5,789,440			6,205,659
Gold produced (oz.)	11,559		12,563			38,396			39,289
Lead produced (tons)	4,026		4,851			14,352			14,080
Zinc produced (tons)	12,695		14,325			41,673			40,697
Cash cost, after by-product credits, per silver ounce ⁽¹⁾	$	1.92	$	(0.15	)	$	(2.22	)	$	0.73
AISC, after by-product credits, per silver ounce ⁽¹⁾	$	9.20	$	4.47		$	4.71		$	5.60
Capital additions (in thousands)	$	11,029	$	8,206		$	34,694		$	24,891
LUCKY FRIDAY UNIT
Tons of ore milled	3,006		7,302			16,012			64,371
Mining cost per ton	$	—	$	150.89		$	87.79		$	112.60
Milling cost per ton	$	—	$	13.15		$	14.26		$	22.93
Ore grade milled - Silver (oz./ton)	11.41		12.87			11.06			12.45
Ore grade milled - Lead (%)	8.06		7.68			7.21			7.12
Ore grade milled - Zinc (%)	3.64		3.21			4.28			3.90
Silver produced (oz.)	31,639		88,298			156,015			769,080
Lead produced (tons)	212		518			1,035			4,346
Zinc produced (tons)	100		172			639			2,303
Cash cost, after by-product credits, per silver ounce ⁽¹⁾	N/A		$	11.60		N/A			$	6.58
AISC, after by-product credits, per silver ounce ⁽¹⁾	N/A		$	13.37		N/A			$	12.21
Capital additions (in thousands)	$	4,840	$	208		$	6,889		$	5,000
SAN SEBASTIAN
Tons of ore milled	39,739		36,482			111,916			111,623
Mining cost per ton	$	171.87	$	35.69		$	157.21		$	38.70
Milling cost per ton	$	65.98	$	69.42		$	66.16		$	66.64
Ore grade milled - Silver (oz./ton)	14.16		25.48			15.36			23.71
Ore grade milled - Gold (oz./ton)	0.108		0.184			0.12			0.183
Silver produced (oz.)	521,931		880,885			1,593,770			2,498,638
Gold produced (oz.)	3,666		6,342			12,051			19,222
Cash cost, after by-product credits, per silver ounce (1)	$	12.02	$	(3.12	)	$	8.28		$	(3.23	)
AISC, after by-product credits, per silver ounce (1)	$	16.95	$	(0.83	)	$	13.34		$	(0.14	)
Capital additions (in thousands)	$	1,582	$	3,350		$	3,692		$	7,480
CASA BERARDI UNIT
Tons of ore milled - underground	181,285		206,209			556,991			606,201
Tons of ore milled - surface pit	172,555		119,936			495,335			343,745
Tons of ore milled - total	353,840		326,145			1,052,326			949,946
Surface tons mined - ore and waste	1,492,041		2,010,524			5,129,646			6,427,067
Mining cost per ton of ore - underground	$	104.31	$	98.96		$	102.56		$	98.71
Mining cost per ton of ore - combined	$	65.97	$	82.95		$	72.15		$	81.95
Mining cost per ton of ore and waste - surface tons mined	$	4.10	$	3.42		$	3.66		$	2.84
Milling cost per ton	$	15.05	$	16.19		$	15.91		$	16.28
Ore grade milled - Gold (oz./ton) - underground	0.229		0.193			0.204			0.167
Ore grade milled - Gold (oz./ton) - surface pit	0.050		0.084			0.064			0.086
Ore grade milled - Gold (oz./ton) - combined	0.140		0.153			0.138			0.137
Ore grade milled - Silver (oz./ton)	0.03		0.03			0.03			0.03
Gold produced (oz.) - underground	36,367		35,192			99,632			87,622
Gold produced (oz.) - surface pit	7,614		8,949			27,248			25,587
Gold produced (oz.) - total	43,981		44,141			126,880			113,209
Cash cost, after by-product credits, per gold ounce ⁽¹⁾	$	686	$	750		$	760		$	858
AISC, after by-product credits, per gold ounce ⁽¹⁾	$	896	$	1,091		$	1,004		$	1,226
Capital additions (in thousands)	$	8,244	$	13,775		$	27,120		$	38,249
Nevada Operations
Tons of ore milled	55,899		N/A			55,899			N/A
Mining cost per ton	$	186.12	N/A			$	186.12		N/A
Milling cost per ton	$	70.39	N/A			$	70.39		N/A
Ore grade milled - Gold (oz./ton)	0.288		N/A			0.288			N/A
Silver produced (oz.)	84,145		N/A			84,145			N/A
Gold produced (oz.)	13,789		N/A			13,789			N/A
Cash cost, after by-product credits, per silver ounce ⁽¹⁾	$	1,179	N/A			$	1,179		N/A
AISC, after by-product credits, per silver ounce ⁽¹⁾	$	1,932	N/A			$	1,932		N/A
Capital additions (in thousands)	$	14,998	N/A			$	14,998		N/A

(1)			Cash cost, after by-product credits, per ounce and AISC, after by-product credits. per ounce represent non-U.S. Generally Accepted Accounting Principles (GAAP) measurements. A reconciliation of cost of sales and other direct production costs and depreciation, depletion and amortization (GAAP) to cash cost, after by-product credits can be found in the cash cost per ounce reconciliation section of this news release. Gold, lead and zinc produced have been treated as by-product credits in calculating silver costs per ounce. The primary metal produced at Casa Berardi is gold, with a by-product credit for the 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, Casa Berardi and Nevada Operations units for the three- and nine-month periods ended September 30, 2018 and 2017, and for estimated results for the full year ended December 31, 2018.

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 measure 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 primary silver mining companies and aggregating Casa Berardi and Nevada Operations for comparison with 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 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 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 are 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, Lucky Friday and San Sebastian, our combined silver properties.

In thousands (except per ounce amounts)	Three Months Ended September 30, 2018
	Greens Creek			Lucky Friday⁽²⁾			San Sebastian			Corporate⁽³⁾	Total Silver
Cost of sales and other direct production costs and depreciation, depletion and amortization	$	52,163		(1		)	$	14,325			$	66,487
Depreciation, depletion and amortization	(12,428		)	—			(1,795		)		(14,223		)
Treatment costs	8,267			134			205				8,606
Change in product inventory	(4,480		)	—			(1,549		)		(6,029		)
Reclamation and other costs	(965		)	103			(458		)		(1,320		)
Exclusion of Lucky Friday costs	—			(236		)	—				(236		)
Cash Cost, Before By-product Credits⁽¹⁾	42,557			—			10,728				53,285
Reclamation and other costs	849			—			105				954
Exploration	1,771			—			1,982			473	4,226
Sustaining capital	11,029			—			486			704	12,219
General and administrative										10,327	10,327
AISC, Before By-product Credits⁽¹⁾	56,206			—			13,301				81,011
By-product credits:
Zinc	(20,674		)	—							(20,674		)
Gold	(12,229		)	—			(4,450		)		(16,679		)
Lead	(6,041		)	—							(6,041		)
Total By-product credits	(38,944		)	—			(4,450		)		(43,394		)
Cash Cost, After By-product Credits	$	3,613		$	—		$	6,278			$	9,891
AISC, After By-product Credits	$	17,262		$	—		$	8,851			$	37,617
Divided by ounces produced	1,876			—			522				2,398
Cash Cost, Before By-product Credits, per Ounce	$	22.67		N/A			$	20.55			$	22.22
By-product credits per ounce	(20.75		)	N/A			(8.53		)		(18.10		)
Cash Cost, After By-product Credits, per Ounce	$	1.92		N/A			$	12.02			$	4.12
AISC, Before By-product Credits, per Ounce	$	29.95		N/A			$	25.48			$	33.78
By-product credits per ounce	(20.75		)	N/A			(8.53		)		(18.10		)
AISC, After By-product Credits, per Ounce	$	9.20		N/A			$	16.95			$	15.68

In thousands (except per ounce amounts)	Three Months Ended September 30, 2018
	Casa Berardi			Nevada Ops⁽⁴⁾			Total Gold
Cost of sales and other direct production costs and depreciation, depletion and amortization	$	51,267		$	19,319		$	70,586
Depreciation, depletion and amortization	(20,054		)	(9,187		)	(29,241		)
Treatment costs	535			42			577
Change in product inventory	(1,303		)	7,311			6,008
Reclamation and other costs	(140		)	—			(140		)
Cash Cost, Before By-product Credits⁽¹⁾	30,305			17,485			47,790
Reclamation and other costs	138			—			138
Exploration	854			3,322			4,176
Sustaining capital	8,244			7,061			15,305
General and administrative	—			—			—
AISC, Before By-product Credits⁽¹⁾	39,541			27,868			67,409
By-product credits:
Silver	(142		)	(1,232		)	(1,374		)
Total By-product credits	(142		)	(1,232		)	(1,374		)
Cash Cost, After By-product Credits	$	30,163		$	16,253		$	46,416
AISC, After By-product Credits	$	39,399		$	26,636		$	66,035
Divided by ounces produced	44			14			58
Cash Cost, Before By-product Credits, per Ounce	$	689		$	1,268		$	827
By-product credits per ounce	(3		)	(89		)	(24		)
Cash Cost, After By-product Credits, per Ounce	$	686		$	1,179		$	803
AISC, Before By-product Credits, per Ounce	$	899		$	2,021		$	1,167
By-product credits per ounce	(3		)	(89		)	(24		)
AISC, After By-product Credits, per Ounce	$	896		$	1,932		$	1,143

In thousands (except per ounce amounts)	Three Months Ended September 30, 2018
	Total Silver			Total Gold			Total
Cost of sales and other direct production costs and depreciation, depletion and amortization	$	66,487		$	70,586		$	137,073
Depreciation, depletion and amortization	(14,223		)	(29,241		)	(43,464		)
Treatment costs	8,606			577			9,183
Change in product inventory	(6,029		)	6,008			(21		)
Reclamation and other costs	(1,320		)	(140		)	(1,460		)
Exclusion of Lucky Friday costs	(236		)				(236		)
Cash Cost, Before By-product Credits⁽¹⁾	53,285			47,790			101,075
Reclamation and other costs	954			138			1,092
Exploration	4,226			4,176			8,402
Sustaining capital	12,219			15,305			27,524
General and administrative	10,327			—			10,327
AISC, Before By-product Credits⁽¹⁾	81,011			67,409			148,420
By-product credits:
Zinc	(20,674		)				(20,674		)
Gold	(16,679		)				(16,679		)
Lead	(6,041		)				(6,041		)
Silver				(1,374		)	(1,374		)
Total By-product credits	(43,394		)	(1,374		)	(44,768		)
Cash Cost, After By-product Credits	$	9,891		$	46,416		$	56,307
AISC, After By-product Credits	$	37,617		$	66,035		$	103,652
Divided by ounces produced	2,398			58
Cash Cost, Before By-product Credits, per Ounce	$	22.22		$	827
By-product credits per ounce	(18.10		)	(24		)
Cash Cost, After By-product Credits, per Ounce	$	4.12		$	803
AISC, Before By-product Credits, per Ounce	$	33.78		$	1,167
By-product credits per ounce	(18.10		)	(24		)
AISC, After By-product Credits, per Ounce	$	15.68		$	1,143

In thousands (except per ounce amounts)	Nine Months Ended September 30, 2018
	Greens Creek			Lucky Friday⁽²⁾			San Sebastian			Corporate⁽³⁾	Total Silver
Cost of sales and other direct production costs and depreciation, depletion and amortization	$	141,763		$	5,844		$	31,177			$	178,784
Depreciation, depletion and amortization	(34,880		)	(803		)	(3,586		)		(39,269		)
Treatment costs	29,136			761			627				30,524
Change in product inventory	995			(2,182		)	1,858				671
Reclamation and other costs	(2,323		)	—			(1,374		)		(3,697		)
Exclusion of Lucky Friday costs	—			(3,620		)	—				(3,620		)
Cash Cost, Before By-product Credits⁽¹⁾	134,691			—			28,702				163,393
Reclamation and other costs	2,548			—			314				2,862
Exploration	2,909			—			6,628			1,351	10,888
Sustaining capital	34,694			—			1,119			1,338	37,151
General and administrative										27,849	27,849
AISC, Before By-product Credits⁽¹⁾	174,842			—			36,763				242,143
By-product credits:
Zinc	(80,308		)	—							(80,308		)
Gold	(43,237		)				(15,505		)		(58,742		)
Lead	(24,037		)	—							(24,037		)
Total By-product credits	(147,582		)	—			(15,505		)		(163,087		)
Cash Cost, After By-product Credits	$	(12,891	)	$	—		$	13,197			$	306
AISC, After By-product Credits	$	27,260		$	—		$	21,258			$	79,056
Divided by ounces produced	5,789			—			1,594				7,383
Cash Cost, Before By-product Credits, per Ounce	$	23.27		N/A			$	18.01			$	22.14
By-product credits per ounce	(25.49		)	N/A			(9.73		)		(22.09		)
Cash Cost, After By-product Credits, per Ounce	$	(2.22	)	N/A			$	8.28			$	0.05
AISC, Before By-product Credits, per Ounce	$	30.20		N/A			$	23.07			$	32.80
By-product credits per ounce	(25.49		)	N/A			(9.73		)		(22.09		)
AISC, After By-product Credits, per Ounce	$	4.71		N/A			$	13.34			$	10.71

In thousands (except per ounce amounts)	Nine Months Ended September 30, 2018
	Casa Berardi			Nevada Ops⁽⁴⁾			Total Gold
Cost of sales and other direct production costs and depreciation, depletion and amortization	$	152,150		$	19,319		$	171,469
Depreciation, depletion and amortization	(54,879		)	(9,187		)	(64,066		)
Treatment costs	1,628			42			1,670
Change in product inventory	(1,482		)	7,311			5,829
Reclamation and other costs	(421		)	—			(421		)
Cash Cost, Before By-product Credits⁽¹⁾	96,996			17,485			114,481
Reclamation and other costs	421			—			421
Exploration	3,374			3,322			6,696
Sustaining capital	27,120			7,061			34,181
General and administrative	—			—			—
AISC, Before By-product Credits⁽¹⁾	127,911			27,868			155,779
By-product credits:
Silver	(491		)	(1,232		)	(1,723		)
Total By-product credits	(491		)	(1,232		)	(1,723		)
Cash Cost, After By-product Credits	$	96,505		$	16,253		$	112,758
AISC, After By-product Credits	$	127,420		$	26,636		$	154,056
Divided by ounces produced	127			14			141
Cash Cost, Before By-product Credits, per Ounce	$	764		$	1,268		$	814
By-product credits per ounce	(4		)	(89		)	(12		)
Cash Cost, After By-product Credits, per Ounce	$	760		$	1,179		$	802
AISC, Before By-product Credits, per Ounce	$	1,008		$	2,021		$	1,107
By-product credits per ounce	(4		)	(89		)	(12		)
AISC, After By-product Credits, per Ounce	$	1,004		$	1,932		$	1,095

In thousands (except per ounce amounts)	Nine Months Ended September 30, 2018
	Total Silver			Total Gold			Total
Cost of sales and other direct production costs and depreciation, depletion and amortization	$	178,784		$	171,469		$	350,253
Depreciation, depletion and amortization	(39,269		)	(64,066		)	(103,335		)
Treatment costs	30,524			1,670			32,194
Change in product inventory	671			5,829			6,500
Reclamation and other costs	(3,697		)	(421		)	(4,118		)
Exclusion of Lucky Friday costs	(3,620		)	—			(3,620		)
Cash Cost, Before By-product Credits⁽¹⁾	163,393			114,481			277,874
Reclamation and other costs	2,862			421			3,283
Exploration	10,888			6,696			17,584
Sustaining capital	37,151			34,181			71,332
General and administrative	27,849			—			27,849
AISC, Before By-product Credits⁽¹⁾	242,143			155,779			397,922
By-product credits:
Zinc	(80,308		)				(80,308		)
Gold	(58,742		)				(58,742		)
Lead	(24,037		)				(24,037		)
Silver				(1,723		)	(1,723		)
Total By-product credits	(163,087		)	(1,723		)	(164,810		)
Cash Cost, After By-product Credits	$	306		$	112,758		$	113,064
AISC, After By-product Credits	$	79,056		$	154,056		$	233,112
Divided by ounces produced	7,383			141
Cash Cost, Before By-product Credits, per Ounce	$	22.14		$	814
By-product credits per ounce	(22.09		)	(12		)
Cash Cost, After By-product Credits, per Ounce	$	0.05		$	802
AISC, Before By-product Credits, per Ounce	$	32.80		$	1,107
By-product credits per ounce	(22.09		)	(12		)
AISC, After By-product Credits, per Ounce	$	10.71		$	1,095

In thousands (except per ounce amounts)	Three Months Ended September 30, 2017
	Greens Creek			Lucky Friday⁽²⁾			San Sebastian			Corporate⁽³⁾	Total Silver
Cost of sales and other direct production costs and depreciation, depletion and amortization	$	41,927		$	—		$	6,680			$	48,607
Depreciation, depletion and amortization	(12,607		)	—			(641		)		(13,248		)
Treatment costs	12,067			440			422				12,929
Change in product inventory	7,675			1,960			(627		)		9,008
Reclamation and other costs	(394		)	18			(494		)		(870		)
Cash Cost, Before By-product Credits⁽¹⁾	48,668			2,418			5,340				56,426
Reclamation and other costs	666			38			117				821
Exploration	1,944			(2		)	1,495			477	3,914
Sustaining capital	8,210			119			402			1,105	9,836
General and administrative										9,529	9,529
AISC, Before By-product Credits⁽¹⁾	59,488			2,573			7,354				80,526
By-product credits:
Zinc	(27,046		)	(293		)					(27,339		)
Gold	(13,907		)	—			(8,088		)		(21,995		)
Lead	(8,067		)	(1,102		)					(9,169		)
Total By-product credits	(49,020		)	(1,395		)	(8,088		)		(58,503		)
Cash Cost, After By-product Credits	$	(352	)	$	1,023		$	(2,748	)		$	(2,077	)
AISC, After By-product Credits	$	10,468		$	1,178		$	(734	)		$	22,023
Divided by ounces produced	2,344			88			880				3,312
Cash Cost, Before By-product Credits, per Ounce	$	20.75		$	27.44		$	6.07			$	17.03
By-product credits per ounce	(20.90		)	(15.84		)	(9.19		)		(17.66		)
Cash Cost, After By-product Credits, per Ounce	$	(0.15	)	$	11.60		$	(3.12	)		$	(0.63	)
AISC, Before By-product Credits, per Ounce	$	25.37		$	29.21		$	8.36			$	24.31
By-product credits per ounce	(20.90		)	(15.84		)	(9.19		)		(17.66		)
AISC, After By-product Credits, per Ounce	$	4.47		$	13.37		$	(0.83	)		$	6.65

In thousands (except per ounce amounts)	Three Months Ended September 30, 2017
	Casa Berardi			Nevada Ops⁽⁴⁾	Total Gold
Cost of sales and other direct production costs and depreciation, depletion and amortization	$	49,269		N/A	$	49,269
Depreciation, depletion and amortization	(16,270		)	N/A	(16,270		)
Treatment costs	682			N/A	682
Change in product inventory	(288		)	N/A	(288		)
Reclamation and other costs	(124		)	N/A	(124		)
Cash Cost, Before By-product Credits⁽¹⁾	33,269			—	33,269
Reclamation and other costs	123			N/A	123
Exploration	1,161			N/A	1,161
Sustaining capital	13,775			N/A	13,775
General and administrative	—			N/A	—
AISC, Before By-product Credits⁽¹⁾	48,328			—	48,328
By-product credits:
Silver	(161		)	N/A	(161		)
Total By-product credits	(161		)	N/A	(161		)
Cash Cost, After By-product Credits	$	33,108		N/A	$	33,108
AISC, After By-product Credits	$	48,167		N/A	$	48,167
Divided by ounces produced	44			N/A	44
Cash Cost, Before By-product Credits, per Ounce	$	754		N/A	$	754
By-product credits per ounce	(4		)	N/A	(4		)
Cash Cost, After By-product Credits, per Ounce	$	750		N/A	$	750
AISC, Before By-product Credits, per Ounce	$	1,095		N/A	$	1,095
By-product credits per ounce	(4		)	N/A	(4		)
AISC, After By-product Credits, per Ounce	$	1,091		N/A	$	1,091

In thousands (except per ounce amounts)	Nine Months Ended September 30, 2017
	Greens Creek			Lucky Friday⁽²⁾			San Sebastian			Corporate⁽³⁾	Total Silver
Cost of sales and other direct production costs and depreciation, depletion and amortization	$	140,241		$	14,542		$	18,377			$	173,160
Depreciation, depletion and amortization	(39,442		)	(2,433		)	(2,036		)		(43,911		)
Treatment costs	37,621			4,257			906				42,784
Change in product inventory	5,398			1,811			(192		)		7,017
Reclamation and other costs	(1,474		)	(163		)	(1,089		)		(2,726		)
Cash Cost, Before By-product Credits⁽¹⁾	142,344			18,014			15,966				176,324
Reclamation and other costs	1,999			217			351				2,567
Exploration	3,339			(1		)	4,984			1,307	9,629
Sustaining capital	24,895			4,109			2,379			2,275	33,658
General and administrative										29,044	29,044
AISC, Before By-product Credits⁽¹⁾	172,577			22,339			23,680				251,222
By-product credits:
Zinc	(72,472		)	(4,353		)					(76,825		)
Gold	(42,675		)				(24,032		)		(66,707		)
Lead	(22,696		)	(8,599		)					(31,295		)
Total By-product credits	(137,843		)	(12,952		)	(24,032		)		(174,827		)
Cash Cost, After By-product Credits	$	4,501		$	5,062		$	(8,066	)		$	1,497
AISC, After By-product Credits	$	34,734		$	9,387		$	(352	)		$	76,395
Divided by ounces produced	6,206			769			2,498				9,473
Cash Cost, Before By-product Credits, per Ounce	$	22.94		$	23.42		$	6.39			$	18.62
By-product credits per ounce	(22.21		)	(16.84		)	(9.62		)		(18.46		)
Cash Cost, After By-product Credits, per Ounce	$	0.73		$	6.58		$	(3.23	)		$	0.16
AISC, Before By-product Credits, per Ounce	$	27.81		$	29.05		$	9.48			$	26.52
By-product credits per ounce	(22.21		)	(16.84		)	(9.62		)		(18.46		)
AISC, After By-product Credits, per Ounce	$	5.60		$	12.21		$	(0.14	)		$	8.06

In thousands (except per ounce amounts)	Nine Months Ended September 30, 2017
	Casa Berardi (Gold)			Nevada Ops⁽⁴⁾	Total Gold
Cost of sales and other direct production costs and depreciation, depletion and amortization	$	138,363		N/A	$	138,363
Depreciation, depletion and amortization	(43,075		)	N/A	(43,075		)
Treatment costs	1,774			N/A	1,774
Change in product inventory	881			N/A	881
Reclamation and other costs	(354		)	N/A	(354		)
Cash Cost, Before By-product Credits⁽¹⁾	97,589			—	97,589
Reclamation and other costs	353			N/A	353
Exploration	3,029			N/A	3,029
Sustaining capital	38,245			N/A	38,245
General and administrative				N/A
AISC, Before By-product Credits⁽¹⁾	139,216			—	139,216
By-product credits:
Silver	(450		)	N/A	(450		)
Total By-product credits	(450		)	N/A	(450		)
Cash Cost, After By-product Credits	$	97,139		N/A	$	97,139
AISC, After By-product Credits	$	138,766		N/A	$	138,766
Divided by ounces produced	113			N/A	113
Cash Cost, Before By-product Credits, per Ounce	$	862		N/A	$	862
By-product credits per ounce	(4		)	N/A	(4		)
Cash Cost, After By-product Credits, per Ounce	$	858		N/A	$	858
AISC, Before By-product Credits, per Ounce	$	1,230		N/A	$	1,230
By-product credits per ounce	(4		)	N/A	(4		)
AISC, After By-product Credits, per Ounce	$	1,226		N/A	$	1,226

In thousands (except per ounce amounts)	Estimate for the Twelve Months Ended December 31, 2018
	Greens Creek			Lucky Friday⁽²⁾	San Sebastian			Corporate⁽³⁾	Total Silver			Casa Berardi (Gold)			Nevada Ops⁽⁴⁾			Total Gold
Cost of sales and other direct production costs and depreciation, depletion and amortization	$	183,000			$	42,000			$	225,000		$	203,000		$	64,000		$	267,000
Depreciation, depletion and amortization	(44,000		)		(5,000		)		(49,000		)	(72,000		)	(14,000		)	(86,000		)
Treatment costs	38,000				1,000				39,000			2,000			—			2,000
Change in product inventory	4,000				2,000				6,000			(2,000		)	—			(2,000		)
Reclamation and other costs					(1,000		)		(1,000		)	(1,000		)	—			(1,000		)
Cash Cost, Before By-product Credits⁽¹⁾	181,000				39,000				220,000			130,000			50,000			180,000
Reclamation and other costs	3,000				1,000				4,000			—			—			—
Exploration	3,000				7,000			2,500	12,500			5,000			7,000			12,000
Sustaining capital	52,000				3,000			2,000	57,000			43,000			16,000			59,000
General and administrative								35,000	35,000
AISC, Before By-product Credits⁽¹⁾	239,000				50,000				328,500			178,000			73,000			251,000
By-product credits:	(193,000		)		(20,000		)		(213,000		)	(600		)	(3,500		)	(4,100		)
Cash Cost, After By-product Credits	$	(12,000	)		$	19,000			$	7,000		$	129,400		$	46,500		$	175,900
AISC, After By-product Credits	$	46,000			$	30,000			$	115,500		$	177,400		$	69,500		$	246,900
Divided by ounces produced	7,641				2,038				9,679			165			37			202
Cash Cost, Before By-product Credits, per Ounce	$	23.69			$	19.14			$	22.73		$	788		$	1,351		$	891
By-product credits per ounce	(25.26		)		(9.81		)		(22.01		)	(4		)	(95		)	(20		)
Cash Cost, After By-product Credits, per Ounce	$	(1.57	)		$	9.33			$	0.72		$	784		$	1,256		$	871
AISC, Before By-product Credits, per Ounce	$	31.28			$	24.53			$	33.94		$	1,079		$	1,973		$	1,243
By-product credits per ounce	(25.26		)		(9.81		)		(22.01		)	(4		)	(95		)	(20		)
AISC, After By-product Credits, per Ounce	$	6.02			$	14.72			$	11.93		$	1,075		$	1,878		$	1,223

In thousands (except per ounce amounts)	Original Estimate for Twelve Months Ended December 31, 2018
	Greens Creek			Lucky Friday⁽²⁾	San Sebastian			Corporate⁽³⁾	Total Silver			Casa Berardi (Gold)			Nevada Ops⁽⁴⁾			Total Gold
Cost of sales and other direct production costs and depreciation, depletion and amortization	$	198,000			$	44,000			$	242,000		$	185,000		$	68,000		$	253,000
Depreciation, depletion and amortization	(50,000		)		(6,000		)		(56,000		)	(58,000		)	(16,000		)	(74,000		)
Treatment costs	44,000				550				44,550			400			—			400
Change in product inventory	—				(1,000		)		(1,000		)	—			(14,000		)	(14,000		)
Reclamation and other costs	(2,900		)		(500		)		(3,400		)	(800		)	—			(800		)
Cash Cost, Before By-product Credits⁽¹⁾	189,100				37,050				226,150			126,600			38,000			164,600
Reclamation and other costs	2,500				240				2,740			450			—			450
Exploration	3,500				4,800			2,500	10,800			5,000			5,000			10,000
Sustaining capital	51,000				3,700			2,000	56,700			45,000			18,000			63,000
General and administrative								35,000	35,000									—
AISC, Before By-product Credits⁽¹⁾	246,100				45,790				331,390			177,050			61,000			238,050
By-product credits	(193,000		)		(18,000		)		(211,000		)	(800		)	(3,000		)	(3,800		)
Cash Cost, After By-product Credits	$	(3,900	)		$	19,050			$	15,150		$	125,800		$	35,000		$	160,800
AISC, After By-product Credits	$	53,100			$	27,790			$	120,390		$	176,250		$	58,000		$	234,250
Divided by ounces produced	7,800				2,250				10,050			160			50			210
Cash Cost, Before By-product Credits, per Ounce	$	24.24			$	16.47			$	22.50		$	791		$	760.00		$	783.81
By-product credits per ounce	(24.74		)		(8.00		)		(21.00		)	(5		)	(60		)	(18		)
Cash Cost, After By-product Credits, per Ounce	$	(0.50	)		$	8.47			$	1.50		$	786		$	700		$	766
AISC, Before By-product Credits, per Ounce	$	31.55			$	20.35			$	32.97		$	1,107		$	1,220.00		$	1,133.57
By-product credits per ounce	(24.74		)		(8.00		)		(21.00		)	(5		)	(60		)	(18		)
AISC, After By-product Credits, per Ounce	$	6.81			$	12.35			$	11.97		$	1,102		$	1,160		$	1,116

(1)		Includes all direct and indirect operating costs related to the physical activities of producing metals, including mining, processing and other plant costs, third-party refining and marketing expense, on-site general and administrative costs, 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.

(2)		The unionized employees at Lucky Friday have been on strike since March 13, 2017, and production at Lucky Friday has been limited since that time. For the first nine months of 2017, costs related to suspension of full production totaling approximately $11.1 million, along with $3.3 million in non-cash depreciation expense for that period, 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.

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

(4)		Nevada operations acquired on July 20, 2018.

Reconciliation of Net (Loss) Income (GAAP) to Adjusted EBITDA (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. Adjusted EBITDA is calculated as net (loss) income before the following items: interest expense, income tax provision, depreciation, depletion, and amortization expense, exploration expense, pre-development expense, acquisition costs, foreign exchange gains and losses, gains and losses on derivative contracts, Lucky Friday suspension-related costs, provisional price gains and losses, stock-based compensation, unrealized gains on investments, provisions for closed operations, and interest and other income (expense). Management believes that, when presented in conjunction with comparable GAAP measures, Adjusted EBITDA is useful to investors in evaluating our operating performance. The following table reconciles net (loss) income to Adjusted EBITDA:

Dollars are in thousands	Three Months Ended						Nine Months Ended
	Sept 30, 2018			Sept 30, 2017			Sept 30, 2018			Sept 30, 2017
Net (loss) income	$	(23,184	)	$	314		$	(2,870	)	$	447
Plus: Interest expense, net of amount capitalized	10,146			9,358			30,019			28,423
Plus/(Less): Income taxes	(2,679		)	(5,130		)	(1,484		)	(17,564		)
Plus: Depreciation, depletion and amortization	43,464			29,518			103,335			86,986
Plus: Exploration expense	12,411			7,255			27,609			17,622
Plus: Pre-development expense	1,195			1,757			3,615			4,061
Plus: Acquisition costs	6,139			—			9,656			25
Plus: Lucky Friday suspension-related costs	6,519			4,780			18,337			14,385
Less: Gain on disposition of properties, plants, equipment and mineral interests	(3,208		)	(4,830		)	(3,374		)	(4,924		)
Plus: Stock-based compensation	2,232			1,347			4,636			4,951
Plus: Provision for closed operations and environmental matters	1,317			1,680			3,957			3,379
Plus/(Less): Foreign exchange loss (gain)	2,212			4,917			(2,856		)	10,258
Plus/(Less): Losses (gains) on derivative contracts	(19,460		)	11,226			(40,271		)	16,548
(Less)/Plus: Provisional price losses/(gains)	640			(1,244		)	3,272			(564		)
Plus/(Less): Unrealized (gains)/loss on investments	—			—			—			—
(Less)/Plus: Other	2,589			(417		)	2,791			(945		)
Adjusted EBITDA	$	40,333		$	60,531		$	156,372		$	163,088

Reconciliation of Cash Provided by 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 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 operating activities to free cash flow:

Dollars are in thousands	Three Months Ended						Nine Months Ended
	Sept 30, 2018			Sept 30, 2017			Sept 30, 2018			Sept 30, 2017
Cash provided by operating activities	$	28,192		$	28,294		$	75,210		$	74,115
Less: Additions to properties, plants equipment and mineral interests	(39,981		)	(24,426		)	(83,285		)	(70,390		)

Free cash flow	$	(11,789	)	$	3,868		$	(8,075	)	$	3,725

View source version on businesswire.com: https://www.businesswire.com/news/home/20181108005303/en/

Latest news about Hecla Mining Company

Roth MKM Adjusts Hecla Mining Price Target to $6 From $4.60, Maintains Buy Rating	Apr. 09	MT
Hecla Mining Preliminary Figures Show Q1 Silver Production Rose	Apr. 08	MT
Hecla Mining Company Announces Preliminary Production Results for the First Quarter of 2024	Apr. 08	CI
Hecla Mining Company Files NI43-101 Technical Reports for Casa Berardi Mine in Quebec and Keno Hill Mine in Yukon, Canada	Mar. 28	CI
Hecla Mining Company Appoints Mark P. Board as Director	Feb. 26	CI
B. Riley Adjusts Hecla Mining's Price Target to $5 From $5.50, Keeps Buy Rating	Feb. 26	MT
Transcript : Hecla Mining Company, Q4 2023 Earnings Call, Feb 15, 2024	Feb. 15
Hecla Mining Swings to Q4 Adjusted Loss as Sales Decline	Feb. 15	MT
Earnings Flash (HL) HECLA MINING COMPANY Posts Q4 Revenue $160.7M, vs. Street Est of $151.5M	Feb. 14	MT
Hecla Mining Company Declares Quarterly Cash Dividend, Payable on or About March 25, 2024	Feb. 14	CI
Hecla Mining Company Provides Production Guidance for the Year of 2024, 2025 and 2026	Feb. 14	CI
Hecla Mining Company Reports Earnings Results for the Full Year Ended December 31, 2023	Feb. 14	CI
Hecla Mining Company Reports Earnings Results for the Fourth Quarter Ended December 31, 2023	Feb. 14	CI
Hecla Mining Company Reports Exploration Results and Reserves	Feb. 13	CI
Hecla Mining Expects Higher Silver Production in 2023 Despite Shutdown at Lucky Friday Mine	Jan. 10	MT
Hecla Mining Company Announces Preliminary Production Results for the Fourth Quarter and Full Year Ended December 31, 2023	Jan. 10	CI
HC Wainwright Adjusts Hecla Mining's Price Target to $8.75 From $9, Maintains Buy Rating	Nov. 08	MT
Transcript : Hecla Mining Company, Q3 2023 Earnings Call, Nov 07, 2023	Nov. 07
Hecla Mining's Q3 Adjusted Loss Narrows, Sales Rise	Nov. 07	MT
Hecla Mining Company Declares Quarterly Cash Dividend, Payable on or About December 7, 2023	Nov. 06	CI
Hecla Mining Company Revises Production Guidance for the Year of 2023	Nov. 06	CI
Hecla Mining Company Reports Earnings Results for the Third Quarter and Nine Months Ended September 30, 2023	Nov. 06	CI
RBC Trims Price Target on Hecla Mining to $6 From $7, Keeps Outperform Rating	23-10-16	MT
North American Morning Briefing : Middle-East -2-	23-10-16	DJ
Hecla Mining Shares Rise After Roth MKM Upgrade	23-10-13	MT

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Company Profile

Hecla Mining Company discovers, acquires and develops mines and other mineral interests and produces and market concentrates containing silver, gold and other metals, carbon material containing silver and gold, and unrefined dore containing silver and gold. Its segments include Greens Creek, Lucky Friday, Keno Hill, Casa Berardi and Nevada Operations. The Company produces zinc, silver and precious metals flotation concentrates at Greens Creek and silver and zinc flotation concentrates at Lucky Friday. At Greens Creek, it also produces gravity concentrate containing payable silver, gold and lead. It also produces unrefined gold and silver bullion bars (dore) and loaded carbon and precipitates at Casa Berardi, which are shipped to refiners before sale of the metals to precious metal traders. Keno Hill is located in the Keno Hill Silver District in Canada's Yukon Territory. Nevada Operations consists of four land packages in northern Nevada totaling approximately 110 square miles.

Sector

Non-Gold Precious Metals & Minerals

Calendar

2024-05-07 - Q1 2024 Earnings Release

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Russell 2000

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Ratings for Hecla Mining Company

Trading Rating

Investor Rating

ESG Refinitiv

B+

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Analysts' Consensus

Sell

Buy

Mean consensus

OUTPERFORM

Number of Analysts

Last Close Price

5.05 USD

Average target price

6.85 USD

Spread / Average Target

+35.64%

Consensus

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Quarterly earnings - Rate of surprise

Company calendar

Sector Silver Mining

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Silver Mining