Hecla Reports Strong Production and Cash Generation

Hecla Mining Company (NYSE:HL) today announced preliminary production results, anticipated cash position at the end of the third quarter, repayment of the revolving credit facility and increased production estimates for the year.¹

HIGHLIGHTS

• Estimated silver production between 3.2 million and 3.4 million ounces
• Estimated gold production between 41,000 and 43,000 ounces.
• Revolving credit facility repaid in full during the quarter.
• Cash and Cash Equivalent position anticipated to exceed $90 million.

“We are very pleased with third quarter operational performance particularly as the mines continue safe practices to manage COVID-19,” said Phillips S. Baker, Jr., President and CEO. “Lucky Friday’s ramp up is as planned so this year’s production should double last year and is set up to potentially double again next year. The higher-than-expected silver grades at Greens Creek have driven silver production higher for the quarter and the annual estimate. Gold production was lower at Casa during the quarter where continued major planned maintenance activities in the mill reduced the processing days.”

Baker continued, “Our strong production for the quarter is expected to translate into robust cash flows in excess of $20 million even after repaying our revolver in full and the interest payments on the bonds. We are close to realizing our financial goal of having in excess of $100 million of cash and cash equivalents on the balance sheet. Finally, if our realized silver price is above $25 for September, we expect the silver-linked dividend to be paid pursuant to our enhanced dividend policy.”

Performance Comparison and Updated Outlook
	Silver (Moz)					Gold (Koz)
	Greens Creek	Lucky Friday	San Sebastian	Total		Greens Creek	Casa Berardi	Nevada	San Sebastian	Total
Estimated First 9 months 2020	8.0	1.1	0.8	9.9