| Schedule of Discontinued Operations and Comprehensive Loss. |
Below is a summary of Hecla Quebec's results from discontinued operations for the six months ended June 30, 2026, three and six months ended June 30, 2025, and statement of financial position as of December 31, 2025. Hecla Quebec Inc. Results of Discontinued Operations (Dollars are in Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Six Months Ended |
|
|
June 30, 2025 |
|
|
June 30, 2026 |
|
|
June 30, 2025 |
|
Sales |
$ |
85,035 |
|
|
$ |
70,284 |
|
|
$ |
141,040 |
|
COSTS AND EXPENSES |
|
|
|
|
|
|
|
|
Costs applicable to sales (1) |
|
44,944 |
|
|
|
37,629 |
|
|
|
87,057 |
|
Depreciation, depletion and amortization |
|
5,846 |
|
|
|
932 |
|
|
|
14,415 |
|
Exploration and pre-development |
|
72 |
|
|
|
1,051 |
|
|
|
260 |
|
Other operating income, net |
|
(1,616 |
) |
|
|
— |
|
|
|
(1,431 |
) |
Total costs and expenses |
|
49,246 |
|
|
|
39,612 |
|
|
|
100,301 |
|
Income from discontinued operations |
|
35,789 |
|
|
|
30,672 |
|
|
|
40,739 |
|
Other expense: |
|
|
|
|
|
|
|
|
Interest expense |
|
(151 |
) |
|
|
(91 |
) |
|
|
(310 |
) |
Fair value adjustments, net |
|
5,165 |
|
|
|
(2,231 |
) |
|
|
5,404 |
|
Net foreign exchange loss |
|
276 |
|
|
|
— |
|
|
|
287 |
|
Other income |
|
166 |
|
|
|
— |
|
|
|
166 |
|
Total other expense (income) |
|
5,456 |
|
|
|
(2,322 |
) |
|
|
5,547 |
|
Income of discontinued operations |
|
41,245 |
|
|
|
28,350 |
|
|
|
46,286 |
|
Loss on disposal of Hecla Quebec Inc. |
|
— |
|
|
|
(192,482 |
) |
|
|
— |
|
Income and mining tax provision |
|
(10,450 |
) |
|
|
(19,549 |
) |
|
|
(10,958 |
) |
Income (loss) from discontinued operations, net of taxes |
$ |
30,795 |
|
|
$ |
(183,681 |
) |
|
$ |
35,328 |
|
(1) Excludes depreciation, depletion and amortization |
|
|
|
|
|
|
|
|
|
| Schedule of Assets and Liability of Discountinued Operation |
Hecla Quebec Inc. Reconciliation of Assets and Liabilities of Discontinued Operations to Balance Sheet (Dollars are in Thousands)
|
|
|
|
|
|
|
December 31, 2025 |
|
ASSETS |
|
|
|
Accounts receivable |
|
$ |
5,091 |
|
Inventories: |
|
|
|
Product inventories |
|
|
11,615 |
|
Materials and supplies |
|
|
21,483 |
|
Prepaid expenses |
|
|
2,596 |
|
Total current assets |
|
|
40,785 |
|
Property, plants, equipment and mine development, net |
|
|
710,246 |
|
Other non-current assets |
|
|
698 |
|
Total assets |
|
$ |
751,729 |
|
LIABILITIES |
|
|
|
Current liabilities: |
|
|
|
Accounts payable and accrued liabilities |
|
$ |
24,690 |
|
Accrued payroll and related benefits |
|
|
7,891 |
|
Accrued taxes |
|
|
4,866 |
|
Finance leases |
|
|
2,911 |
|
Total current liabilities |
|
|
40,358 |
|
Accrued reclamation and closure costs |
|
|
75,980 |
|
Deferred tax liabilities |
|
|
88,840 |
|
Other non-current liabilities |
|
|
5,456 |
|
Total liabilities |
|
$ |
210,634 |
|
|