Thank you for standing by. My name is Van, and I will be your conference operator today. At this time, I would like to welcome everyone to the Q3 2025 Hecla Mining Company Earnings Conference Call. Thank you. I would now like to turn the call over to Mike Parkin, Vice President, Strategy and Investor Relations. Please go ahead.

Thank you, and good morning for joining us on Hecla's Third Quarter 2025 Results Conference Call. I am Mike Parkin, Vice President, Strategy and Investor Relations. Our earnings release that was issued yesterday, along with today's presentation, are available on our website. On the call today is Rob Krcmarov, President and Chief Executive Officer; Russell Lawlar, Senior Vice President and Chief Financial Officer; Carlos Aguiar, Senior Vice President and Chief Operations Officer; Kurt Allen, Vice President, Exploration; as well as other members of the management team. At the conclusion of our prepared remarks, we will all be available to answer questions. Turning to Slide 2, cautionary statements. Any forward-looking statements made today by the management team come under the Private Securities Litigation Reform Act and involve risks as shown on Slide 2 in our earnings release and in our 10-Q filings with the SEC. These and other risks could cause results to differ from those projected in the forward-looking statements. Non-GAAP measures cited in this call and related slides are reconciled in the slides or the news release. I will now pass the call over to Rob.

Thank you, Mike, and good morning, everyone. So turning to Slide 3. Let me just start by reminding you why Hecla stands apart in the silver sector. As the oldest silver company on the New York Stock Exchange with a history dating back 134 years, we operate exclusively in the premier jurisdictions of the United States and Canada. We maintain peer-leading silver exposure on both a revenue and resource basis with an average reserve life that's double our peer group. We're building project momentum through strategic investment in our pipeline, and we're achieving cost excellence as the lowest cost producer among our peers. I've got to say these are exciting times, and Hecla really is thriving on strong silver and gold prices. We're using this momentum to strengthen our finances, fund high-return projects and boost shareholder value. But I think the outlook is even brighter. Silver faces its fifth consecutive year of supply shortages with rising industrial demand and investment flows expected to support prices for years to come. And unlike most of our peers, we're uniquely positioned with one of the most favorable silver to gold revenue ratios in the sector, allowing us to capitalize on the silver strength and drive meaningful value creation for our shareholders. Moving to Slide 4. Q3 really was exceptional, and just let me walk you through why. Firstly, record results. We delivered record results this quarter. We hit revenues of $410 million. Net income came in at $101 million and adjusted EBITDA was $196 million. These aren't just numbers. They prove that our business model works. We capture upside in strong markets while our cost position offers protection in weak ones. Now here's what matters a lot, and that's our balance sheet transformation. Net leverage has improved from 1.8x this time last year to 0.3x in Q3. So that's an 83% reduction. And that's in a single year. That's a structural derisking of the company. This deleveraging consisted of fully repaying our revolver, redeeming $212 million of debt and paying the CAD 50 million note due to Investissement Quebec. So this deleveraging effort has eliminated over $15 million in annual interest expense. We've gone from being capital constrained to capital flexible. Our cash flow generation has been nothing short of stellar. We've generated $148 million in operating cash flow, while consolidated free cash flow came in at $90 million. And here's the key piece. All 4 of our producing assets, Greens Creek, Lucky Friday, Casa Berardi, Keno Hill generated positive free cash flow for the second consecutive quarter. So that's operational momentum. On the operational front, our silver production was 4.6 million ounces, up 2% from last quarter. Cash costs were negative $2.03 per ounce, thanks to strong by-product credits, while all-in sustaining costs came in at $11.01. As a result of this performance, we've tightened our production guidance and reiterated the cost guidance. Lucky Friday surface cooling project is progressing on track and is expected for completion in the first half of 2026, while Greens Creek received its wetlands permit for the dry stack tailings expansion. Completion of these projects is critical to the future success of the company. So in summary, our operations have executed really well. We've derisked the balance sheet and built financial flexibility. We're cash-generative across all assets. And we're positioned to invest in growth, and that's the transformation story. I'll now pass the call over to Russell.

Thank you, Rob. Moving to Slide 6. I want to continue to highlight the strong financial performance we delivered during the third quarter. We generated $393 million in mine site revenues with silver continuing to be our primary revenue driver at 48% of the total, followed by gold at 37% and base metals rounding out the balance. This percentage of silver revenue, especially with the jurisdictions in which we operate makes us a standout in the industry. Our silver margins remain robust at $31.57 per ounce, representing 74% of the realized price of silver with all-in sustaining costs of just over $11 per silver ounce. We're demonstrating excellent cost discipline across our operations. Our net leverage ratio improved to 0.3x during the quarter, the lowest in more than a decade, down from 0.7x in the second quarter. This reflects our adjusted EBITDA growing to $506 million on a trailing 12-month basis as well as our significant reduction in overall gross debt outstanding while maintaining disciplined capital spending. Most importantly, we generated consolidated free cash flow of more than $90 million during the quarter. Greens Creek led the way with nearly $75 million, demonstrating why it remains one of the world's premier silver mines. We continue to see the free cash flow inflection we've been speaking about at Casa Berardi with nearly $36 million in free cash flow during the quarter, while Lucky Friday added $14 million and Keno Hill impressively contributed more than $8 million, while we continue ramping that asset up. The third quarter marked the second consecutive quarter of all of our producing mines contributing to positive free cash flow. As you can see, at current prices, we anticipate generating significant cash flow. As we turn to Slide 7, I'll walk through our capital allocation framework, which is disciplined and focused on 6 clear priorities with each one having a specific purpose. Our first priority is investment in safety and environmental excellence. This is non-negotiable and is the foundation of everything we do. Second is investing in sustaining capital at our operating mines. We target a minimum of 10% to 15% returns at these operations. Investing in sustaining capital keeps our production stable, extends our mine lives, and generates cash flow with low execution risk. Third is our investment in growth capital, where we target returns of at least 10% to 12%. This investment is intended to increase production and extend mine life. However, we will only make these investments if they demonstrate robust economics at conservative prices. Fourth is investment in exploration. Historically, we've underinvested in exploration. However, because of the deleveraging of the balance sheet and associated cash flow that's been freed up, we anticipate further investment in this area. In fact, we are currently targeting 2% to 5% of revenues as we look to 2026. Investment in exploration provides asymmetric upside. And although we're planning to invest more in this area, we'll also be prudent with our investors' dollars and target the highest return opportunities, both brownfield narrow mines and greenfield optionality. Fifth is we plan to make further investments in deleveraging and strengthening our balance sheet. From a pure financial perspective, we anticipate a return of 5% to 7%. However, more importantly, having a strong and delevered balance sheet reduces risk and provides flexibility. It also allows us to maintain investment during downturns and seize opportunities when they arise. The last priority is shareholder returns. We currently pay a quarterly dividend, and we'll consider further shareholder returns only after operational requirements are met and the balance sheet is strong. That said, we're confident enough in cash flow to start thinking about this. In summary, this framework isn't complicated. It's about maximizing value while maintaining financial flexibility to navigate cycles. We're operating under this framework now, and we've seen better prices and stronger cash flows. We'll see those capital and exploration projects we invest in meet these above criteria, including the remainder of this year. And with that, I'll turn the call to Carlos.

Thank you, Russell. Turning to Slide 9. Greens Creek is delivering exactly what we need from our cornerstone asset, a strong operational quarter, driving robust free cash flow generation. The third quarter silver production came in at 2.3 million ounces with 15,600 ounces of gold, both tracking well to full year guidance. Sales came in at $178 million, up 46% from last quarter, driven by higher volumes sold and metal prices. More importantly, the unit economics are excellent. Cash costs came in at negative $8.50 per silver ounce and AISC of negative $2.55 per ounce, both offset by-product credits. Free cash flow was nearly $75 million for the quarter. Based on our strong year-to-date performance at Greens Creek, we are tightening our silver and gold production guidance and lowering our capital expenditure guidance while reiterating our cost guidance. Moving to Slide 10. Lucky Friday continues to do what it does well, deliver consistent profitable silver. Third quarter silver production was 1.3 million ounces with a 7% increase in milled silver grade. Sales came in at $74.2 million, up 15% quarter-over-quarter. The free cash flow was $13.5 million, nearly triple the prior quarter, reflecting improving operational momentum. The surface cooling project is on track for 2026 completion. This investment is strategic. It opens access to deeper high-grade zones, extending mine life and profitability. Thanks to our strong year-to-date performance on Lucky Friday, we are tightening our silver production guidance, reiterating our total capital expenditure guidance and modestly raising our cost guidance. Turning to Slide 11, Keno Hill. We have now delivered 2 consecutive quarters of positive free cash flow, a significant milestone. Third quarter silver production came in at nearly 900,000 ounces at an average milling rate of 323 tons per day. Keno Hill is well positioned to deliver on its 2025 silver production guidance. The free cash flow was $8.3 million, positive cash generation while still in ramp-up and investment mode. We have hedges through the second quarter of 2026 providing silver price protection during this period of capital investment. Our reliability improved significantly in the third quarter, thanks to the Yukon Energy's successful repair of the hydroelectric plant. This reduced a key operational risk we have been managing. Consistent with the other 2 primary silver mines, we are tightening our silver production guidance at Keno Hill based on a strong year-to-date performance. Capital expenditures are expected to modestly exceed our original guidance as we are outperforming on several key factors, including the underground development, which is tracking 13% above plan year-to-date. Turning to Slide 12. Casa Berardi delivered another solid performance, setting the mine up well to achieve guidance. Gold production of 25,000 ounces, down 11% due to planned lower underground ore grades, and cash costs of $1,582 per ounce and AISC of $1,746 per ounce. We are tightening gold production guidance for Casa Berardi based on a strong year-to-date performance while maintaining our cash cost and AISC guidance. Our 2025 capital expenditure guidance for the mine remains unchanged. The company is actively evaluating options to extend production beyond 2027. These initiatives could potentially reduce the previously disclosed production gap and enable Casa Berardi to remain a sustaining cash flow contributor to the portfolio. I'll now turn the call over to Kurt.

Thanks, Carlos. Moving to Slide 13. Our Nevada assets offer opportunities to unlock hidden value. We have 3 key properties with significant historical production. Midas, 2.2 million ounces of gold historically, with a fully permitted mill and tailings capacity. Hollister, 0.5 million gold equivalent ounces within hauling distance of Midas. And Aurora, 1.9 million ounces of gold historically with an on-site 600 ton per day mill. All properties have significant exploration potential, minimal regulatory hurdles and existing infrastructure. We're developing a comprehensive Nevada strategy with an exploration update on Nevada, Keno Hill and Greens Creek coming later this month that will shed light on our Nevada exploration progress and what's to come next year. You can expect a heightened level of activity in Nevada next year as we work to surface value from this exploration portfolio. I'll now turn the call over back to Rob.

Thanks, Kurt. I'm pretty excited about what you and your team are doing in Nevada, so keep up this work. We've got 4 strategic priorities that flow directly from our transformation. And the first is long-term value creation at Keno Hill, prioritizing permitting and execution. At current prices and even at lower prices, this asset is expected to generate material returns at 440 tons per day and has expansion optionality beyond that. Second, continued deleveraging and strengthening our balance sheet with focus on free cash flow generation across all assets. And we've proven in Q3 that we can do this rapidly when the metal prices support it. Third, establish a capital allocation framework, balancing further debt reduction, organic growth investment, exploration and potential shareholder returns. And fourth, portfolio rationalization, continually assessing which assets deserve more capital and where to monetize noncore assets for high-return opportunities. With that, I'll turn it over for questions.

Our first question comes from Heiko Ihle from H.C. Wainwright.

Can you hear me all right?

We can hear you.

Perfect. Can you go over some of the inflationary factors you are experiencing at your mining assets? I assume that the impact has been somewhat limited in the past few quarters. However, could you discuss some of the inputs, equipment, or hiring, where you are still noticing inflationary effects and any supply chain bottlenecks?

Heiko, this is Russell. I'll address this question, and Carlos can join in as well. The main inflationary factor we are encountering is the pricing environment for metals, alongside labor competition. We need to remain competitive regarding labor costs and filling roles; when we can't find suitable candidates, we have to rely on contractors, which has been a significant challenge for some time. The higher prices have intensified this issue. From an inflation standpoint, the overall impact is relatively minor, as you mentioned, but we are facing some tariff costs related to capital projects and the need to import components. We strive to reduce these costs by seeking the best competitive bids for the quality we require. Carlos, do you have anything to add?

Yes, there's a little bit related with mining supplies and reagents and air movement. That is mainly all the stuff related with the workforce consultants and labor.

I had a different follow-up question planned, but now you got me curious. I mean you spent almost $9 million on exploration, $8.8 million, I think it was. What are you seeing with labor costs related to drilling and also timing for getting your assays back? Is there any positive or negative changes?

You, Kurt?

Yes. This is Kurt. We have seen some increase in our drilling costs. Really, it's associated with labor, drillers and drillers helpers. Regarding assaying, turnaround has been somewhat normal. Of course, this time of the year, it starts to tighten up a little bit as people are getting their summer sampling programs into the assay labs. But it hasn't been as bad as it was a few years ago.

Our next question comes from the line of Alex Terentiew from National Bank.

Congratulations on another strong quarter. I have two questions. First, regarding your last comment about providing an update on exploration and projects in about a month, I understand that may need to wait, but I'd still like to ask. Your balance sheet has improved significantly, and your cash flow outlook looks better as well. Can you share any insights on your exploration plans for next year and any projects that excite you? Have you received any permit approvals for starting exploration? You mentioned Nevada, and I'm trying to get a clearer picture of what we can expect there. My second question is about Keno Hill. This is the second consecutive quarter where it seems you've made solid progress. Could you remind me of the metrics you need to achieve to declare that mine or project commercial?

Sure. I'll start with exploration, and then I'll hand it over to Kurt to fill in some more details. So we're going to substantially increase our exploration budget in Nevada. In fact, we've increased it beyond what the starting budget was this year. I'm quite excited by the results that we're getting there. We've also had quite a few dormant projects, which we expect to reinitiate. So things like the Rackla build targets up in the Yukon. This is virgin country with outcropping gossans, and so we need to make some advance there. And then obviously, our near-mine exploration where we continue to do resource extension drilling and seek new discoveries. Could you just fill in some more gaps, please?

Yes. Next year, we're really planning on focusing on near-mine and brownfields to start with. That's going to get the biggest part of the budget for next year. And then we're also doing more greenfields exploration and early-stage exploration than what we've done in the past with a generative exploration program that will be kicked off next year as well. We've got some really good targets. We've got some really good property packages. As Rob said, the Rackla district is just ripe for discovery, and we're looking forward to getting in there and spending the summer, doing the basic boots on the ground field work there. And then Nevada as well. Go ahead, Rob.

Kurt, sorry.

I am really excited about Nevada. As we discussed, we have the necessary infrastructure and minimal permitting requirements. This puts us on a faster track to production compared to any of our exploration projects outside the current mine operations areas.

I’d like to add that Kurt mentioned an important point about our increased efforts in project generation. When I joined Hecla, I noticed that our focus was primarily on existing mine sites and exploration in those areas. I've discussed portfolio rationalization, and while we plan to divest and farm out some projects, it is crucial that we replace them. Project generation is essential, and we need to adopt a more commercial approach to develop various options. In the future, we will be pursuing earn-in agreements on properties owned by other companies. Regarding Keno Hill, we have established five criteria for commercial production, and currently, we meet only one of those, which is the silver recoveries. We still need to complete major components, achieve 75% of mill capacity, and finalize significant capital expenditures. Our current ramp-up plan suggests that we could reach commercial production around 2027, targeting 345 to 385 tons per day. The following year, 2028, we aim to achieve nameplate throughput, provided we receive the necessary water discharge approval from Yukon regulators. To summarize, we anticipate commercial production in 2027 and full nameplate capacity in 2028.

Okay. That's great. And obviously, a lot of exciting stuff to come next year on the exploration front. Looking forward to it.

Thanks, Alex.

Our next question comes from Joseph Reagor from ROTH Capital.

I had a question on your guidance. Obviously, raising the low end was great. But it seems like if I look at, say, like Greens Creek's gold production, Lucky Friday's silver and Casa's gold production, you'd have to have a pretty weak quarter for Q4 to not hit like above the high end. And so I'm wondering if that's just a matter of like company policy not to raise the high end of guidance? Or is it that you guys are having some expected downtime or anything during the quarter or lower grades? Just help me figure out how to stay within that high end.

I think, Joe, this is Russell. I'll take the question, but my colleagues will also provide input. If you review our earnings release, which includes our production figures for the past five quarters, you'll notice that Greens Creek, for instance, has a production profile that fluctuates. In Q3 and Q4 of last year, we produced less than 2 million ounces. Our guidance suggests that we will likely see around 2 million ounces from Greens Creek in Q4. While we generally avoid quarter-specific guidance, we recognize we only have one quarter remaining, and our models indicate that this is where we expect to land.

Okay. That's fair. And then looking at the really strong price realizations you guys had in the quarter. I mean normally, there's some fluctuation, but it was abnormally strong this quarter. Was there anything specific that led to that? Was it just timing of shipments? Did you have more like late quarter shipments and early quarter shipments and that's how the weighted price got so well above spot? Or is there something else I'm missing there?

I would like to add some thoughts. There are two factors at play here. The first is the timing you mentioned. Greens Creek is our largest silver producer, and they ship once a month, typically later in the quarter. As you can see, the price fluctuated during the quarter and increased towards the end, which naturally affected our sales, concentrating them towards that period. The second factor involves a change in the silver market dynamics. We have seen more potential for upside, and as a result, we began utilizing more collars in our provisional hedging, allowing us to capture that upside. In the past, we would have relied on forwards, but with the changing market, we became more flexible and opted for collars, benefiting our investors with greater upside. So, I believe both of these factors contributed to the strong price realizations.

There are no further questions. I will now turn the call back over to Rob Krcmarov, President and CEO, for closing remarks.

Thank you, Van. Let me summarize our position. We entered 2025 with a clear goal to transform Hecla from being cash-constrained to a financially flexible company that can pursue value-creating opportunities. Our results show that we have successfully implemented this plan. I want to highlight four key points. First, our operational execution is strong. All four of our producing assets generated positive free cash flow this quarter. Greens Creek and Lucky Friday are performing as anticipated. Casa Berardi is making progress on cost improvements, and Keno Hill has achieved profitability for consecutive quarters and is ramping up towards our next production target of 440 tons per day. Second, we reached record financial performance with quarterly revenue, net income, and adjusted EBITDA at all-time highs. We actively managed our debt repayment, combining cash generation with strategic capital allocation to fully repay our revolver, redeem $212 million in debt, and settle the maturing IQ notes from free cash flow, reducing our leverage from 0.7x to 0.3x in just one quarter. This disciplined approach provides us with the necessary flexibility. Third, we now have genuine options available. With reserve lives of 12 to 17 years, expansion potential at Keno Hill, a strategic evaluation of our broader portfolio to create value for shareholders, and the ability to pursue strategic mergers and acquisitions if the right opportunity arises, we now possess the flexibility that was lacking when we were cash-constrained. Our next phase focuses on consistent execution, stable cash generation, continued debt reduction, and disciplined capital deployment. This consistency will help us regain our historical value premium, and we are confident in our path. Fourth, we have established clear strategic direction with four long-term pillars to guide our capital allocation, which we will discuss further on our Investor Day on January 26th. In conclusion, we believe we present a compelling valuation with industry-leading reserve life, substantial silver exposure, and high-quality jurisdictions, all at a reasonable valuation that offers significant upside. We are executing our plans, generating substantial free cash flow, and building a foundation for sustained value creation for our shareholders. Thank you all for joining today, and have a great day.

Ladies and gentlemen, that concludes today's call. Thank you all for joining. You may now disconnect.