Press release·03/02/2025 21:30:56

2024 Highlights

Operational Achievements:

• Production - Delivered 16.2 million ounces of silver and 141,923 ounces of gold. See Consolidated Results of Operations below for information on total cost of sales, as well as cash costs and AISC, each after by-product credits, per silver and gold ounce for 2024, 2023 and 2022.

• Lucky Friday Recovery - Successfully restored to full production in the first quarter, delivering 4.9 million ounces of silver, after operations were suspended due to an underground fire in August 2023.

• Keno Hill Success - Produced 2.8 million ounces of silver, meeting production guidance of 2.7 - 3.0 million ounces, despite reduced fourth quarter throughput due to power conservation measures by Yukon Energy Corp.

• Diversification Milestone - Copper became a payable metal for Greens Creek, resulting in a new revenue stream that generated $0.4 million of copper sales.

Financial Performance:

• Revenue Generation - Achieved record sales of $929.9 million.

• Shareholder Returns - Generated net income applicable to common stockholders of $35.3 million and returned $24.9 million to our common stockholders through dividend payments. Contributing to net income was $50.0 million in insurance proceeds related to the Lucky Friday fire.

• Continued Investment in Operations - Made capital expenditures of approximately $214.5 million, including $47.8 million at Greens Creek, $49.6 million at Lucky Friday, $60.7 million at Casa Berardi and $54.9 million at Keno Hill.

• Exploration - Incurred $27.3 million on exploration and pre-development activities.

• Improved Liquidity - Raised $58.4 million in common stock sales under our ATM program which were utilized to make repayments on our outstanding revolving credit facility balance.

Our average realized prices for silver, gold and zinc increased in 2024 compared to 2023 while lead decreased. Our average realized silver, gold and lead increased while zinc decreased in 2023 compared to 2022. See the Consolidated Results of Operations section below for information on our average realized metals prices for 2024, 2023 and 2022. Lead and zinc represent important by-products at our Greens Creek and Lucky Friday segments, and gold is also a significant by-product at Greens Creek. Copper is a minor by-product credit at Greens Creek, in addition to lead and zinc at Keno Hill.

See the Consolidated Results of Operations section below for a discussion of the factors impacting income applicable to common stockholders for the three years ended December 31, 2024, 2023 and 2022.

Key Issues Impacting our Business

Our current business strategy is to focus our financial and human resources in the following areas:

• operating our properties safely, in an environmentally responsible and cost-effective manner;

• strengthen balance sheet to preserve our financial position in varying metals price and operational environments, improve capital allocation framework with a focus on ROIC and increasing free cash flow;

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

• optimize asset portfolio and identify growth opportunities;

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

• advancing the development and ramp up of the Keno Hill mine to profitability;

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

• advancing permitting of the Libby Exploration project in Montana;

• enhance ESG performance and risk management systems;

• build high-performing teams and strengthen organizational capabilities; and

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

We strive to achieve excellent mine safety and health performance. We seek to implement this goal by: training employees in safe work practices; establishing, following and improving safety standards; investigating accidents, incidents and losses to avoid recurrence; involving employees in the establishment of safety standards; and participating in the National Mining Association’s CORESafety program. We seek to implement reasonable best practices with respect to mine safety and emergency preparedness. We respond to issues outlined in investigations and inspections by MSHA, the Commission of Labor Standards, Pay Equity and Occupational Health and Safety in Quebec, the Workers’ Safety and Compensation Board in the Yukon and the Mexico Ministry of Economy and Mining and continue to evaluate our safety practices. There can be no assurance that our practices will mitigate or eliminate all safety risks. Achieving and maintaining compliance with regulations will be challenging and may increase our operating costs. See Item 1A. Risk Factors - We face substantial governmental regulation, including the Mine Safety and Health Act, various environmental laws and regulations and the 1872 Mining Law.

A number of key factors may impact the execution of our strategy, including regulatory issues, metals prices and inflationary pressures on input costs. Metals prices can be very volatile and are influenced by a number of factors beyond our control (except on a limited basis through the use of derivative contracts). See Item 7. Critical Accounting Estimates and Note 10 of Notes to Consolidated Financial Statements. While we believe longer-term global economic and industrial trends could result in continued demand for the metals we produce, prices have been volatile and there can be no assurance that current prices will continue.

Volatility in global financial markets and other factors can pose a significant challenge to our ability to access credit and equity markets, should we need to do so. We utilize forward contracts to manage exposure to declines in the prices of (i) silver, gold, zinc and lead contained in our concentrates that have been shipped but have not yet settled, and (ii) from time to time zinc and lead that we forecast for future concentrate shipments. In addition, we have in place a $225.0 million revolving credit agreement. As of December 31, 2024, $29.2 million of the facility was utilized, with $6.2 million being used for letters of credit, $23.0 million was drawn on the facility, leaving approximately $195.8 million available for borrowing.

Another challenge for us is the risk associated with environmental litigation and ongoing reclamation activities. As described in Item 1A. Risk Factors and in Note 16 of Notes to Consolidated Financial Statements, it is possible that our estimate of these liabilities may change in the future, affecting our strategic plans. We are involved in various environmental legal matters and the estimate of our environmental liabilities and liquidity needs, as well as our strategic plans, may be significantly impacted as a result of these matters or new matters that may arise. We strive to ensure that our activities are conducted in compliance with applicable laws and regulations and attempt to resolve environmental litigation on terms as favorable to us as possible.

Reserve and resource estimation is a major risk inherent in mining. Our reserve and resource estimates, which underlie (i) our mining and investment plans, (ii) the valuation of a significant portion of our long-term assets and (iii) depreciation, depletion and amortization expense, may change based on economic factors and actual production experience. Until ore is mined and processed, the volumes and grades of our reserves and resources must be considered as estimates. Our reserves are depleted as we mine. Reserves and resources can also change as a result of changes in economic and operating assumptions. See Item 1A. Risk Factors - Our mineral reserve and resource estimates may be imprecise.

Consolidated Results of Operations

Total metal sales for the years ended December 31, 2024, 2023 and 2022, and the approximate variances attributed to differences in metals prices, sales volumes and smelter terms, were as follows:

(in thousands)	Silver	Gold	Base metals	Less: smelter and refining charges	Total sales of products
2022	$265,054	$298,910	$206,441	$(51,973)	$718,432
Variances - 2023 vs 2022:
Price	19,682	18,044	(2,897)	(624)	34,205
Volume	17,548	(42,343)	(14,586)	148	(39,233)
Smelter terms	-	-	-	1,540	1,540
2023	302,284	274,611	188,958	(50,909)	714,944
Variances - 2024 vs 2023:
Price	76,019	61,309	(2,873)	10,743	145,198
Volume	35,677	(17,664)	32,321	(2,485)	47,849
Smelter terms	-	-	-	1,378	1,378
2024	$413,980	$318,256	$218,406	$(41,273)	$909,369

Average market and realized metals prices for 2024, 2023 and 2022 were as follows:

| | Average price for the year ended December 31 |

	2024	2023	2022
Silver	Realized price per ounce	$28.58	$23.33
	London PM Fix ($/ounce)	28.24	23.39
Gold	Realized price per ounce	2,403	1,939
	London PM Fix ($/ounce)	2,387	1,943
Lead	Realized price per pound	0.97	1.03
	LME Final Cash Buyer ($/pound)	0.94	0.97
Zinc	Realized price per pound	1.37	1.35
	LME Final Cash Buyer ($/pound)	$1.26	$1.20
Copper	Realized price per pound	4.20	-
	LME Final Cash Buyer ($/pound)	$4.15	NA

Average realized prices differ from average market prices primarily because concentrate sales are generally recorded as revenues at the time of shipment at forward prices for the estimated month of settlement, which differ from average market prices. Due to the time elapsed between shipment of concentrates and final settlement with customers, we must estimate the prices at which sales of our metals will be settled. Previously recorded sales are adjusted to estimated settlement metals prices each period through final settlement. For 2024 and 2023, we recorded net positive price adjustments to provisional settlements of $22.9 million and $18.2 million, respectively, and $20.8 million in net negative price adjustments to provisional settlements in 2022. The price adjustments related to silver, gold, zinc and lead contained in our concentrate sales were partially offset by gains and losses on forward contracts for those metals for each year (see Note 10 of Notes to Consolidated Financial Statements for more information). The gains and losses on these contracts are included in revenues and impact the realized prices for silver, gold, lead and zinc. Realized prices are calculated by dividing gross revenues for each metal (which include the price adjustments and gains and losses on the forward contracts discussed above) by the payable quantities of each metal included in products sold during the period.

Total metals production and sales volumes for each period are shown in the following table:

| | Year Ended December 31 |

	2024	2023	2022
Silver -	Ounces produced	16,169,930	14,342,863
	Payable ounces sold	14,485,158	12,955,006
Gold -	Ounces produced	141,923	151,259
	Payable ounces sold	132,442	141,602
Lead -	Tons produced	52,515	40,347
	Payable tons sold	44,795	35,429
Zinc -	Tons produced	66,308	60,579
	Payable tons sold	47,593	43,050
Copper -	Tons produced	1,874	1,823
	Payable tons sold	50	-

The difference between what we report as “ounces/tons produced” and “payable ounces/tons sold” is attributable to the difference between the quantities of metals contained in our products versus the portion of those metals actually paid for by our customers pursuant to of our sales contract terms. Differences can also arise from inventory changes incidental to shipping schedules, or variances in ore grades which impact the amount of metals contained in concentrates produced and sold.

Sales, total cost of sales, gross profit (loss), Cash Cost, After By-product Credits, per Ounce (“Cash Cost”) (non-GAAP) and AISC (non-GAAP) at our operating units for 2024, 2023 and 2022 were as follows (in thousands, except for Cash Cost and AISC):

	Silver					Gold
	Greens Creek	Lucky Friday	Keno Hill	Total Silver (2)	Casa Berardi	Other (3)	Total Gold
2024:
Sales	$421,574	$203,154	$74,962	$699,690	$209,679	$20,556	$230,235
Total cost of sales	(268,127)	(144,485)	(74,962)	(487,574)	(223,614)	(20,527)	(244,141)
Gross profit (loss)	$153,447	$58,669	$-	$212,116	$(13,935)	$29	$(13,906)
Cash Cost After By-product Credits per Silver or Gold Ounce (1)	$(0.05)	$7.80		$2.72	$1,762		$1,762
AISC After By-product Credits per Silver or Gold Ounce (1)	$5.65	$16.50		$13.06	$1,990		$1,990
2023:
Sales	$384,504	$116,284	$35,518	$536,306	$177,678	$6,243	$183,921
Total cost of sales	(259,895)	(84,185)	(35,518)	(379,598)	(221,341)	(6,339)	(227,680)
Gross profit (loss)	$124,609	$32,099	$-	$156,708	$(43,663)	$(96)	$(43,759)
Cash Cost After By-product Credits per Silver or Gold Ounce (1)	$2.53	$5.51		$3.23	$1,652		$1,652
AISC After By-product Credits per Silver or Gold Ounce (1)	$7.14	$12.21		$11.76	$2,048		$2,048
2022:
Sales	$335,062	$147,814	$-	$482,876	$235,136	$893	$236,029
Total cost of sales	(232,718)	(116,598)	-