Hecla Mining Company has entered into a definitive agreement to sell its wholly owned subsidiary that operates the Casa Berardi gold mine in Quebec, Canada to Orezone Gold Corporation for total consideration of up to $593 million. The transaction includes $352 million in upfront and deferred consideration—comprising $160 million in cash on closing, $112 million in Orezone common shares (representing 9.9% of pro forma issued and outstanding shares), and $80 million in cash installments payable at 18 and 30 months post-closing—and contingent payments of up to $241 million tied to future gold prices and production milestones. Casa Berardi has produced over 3.2 million ounces of gold since 1988 and, as of December 31, 2024, held proven and probable reserves of 1.3 million ounces at 2.79 g/t, measured and indicated resources of 0.9 million ounces at 5.92 g/t, and inferred resources of 0.5 million ounces at 6.01 g/t. Closing is expected in the current quarter, subject to customary regulatory approvals and financing conditions.

In 2025 Hecla achieved consolidated silver production of 17.0 million ounces—5% above 2024 and at the top end of its guidance range—and consolidated gold production of 150,509 ounces, slightly exceeding the high end of its forecast. Lucky Friday delivered 5.3 million ounces of silver (an 8% year-over-year gain), Greens Creek produced 8.7 million ounces of silver (+3%) and 59,349 ounces of gold (+7%), and Keno Hill generated 3.02 million ounces of silver (+9%). Casa Berardi, pending sale, contributed 91,160 ounces of gold (a 5% increase). For 2026, Hecla forecasts silver output of 15.1–16.5 million ounces and gold output of 134,000–146,000 ounces. It plans record exploration and pre-development spending of $55 million—nearly double 2025—while guiding consolidated silver cash costs after by-product credits of negative $1.50 to negative $1.25 per ounce, all-in sustaining costs of $15.00 to $16.25 per ounce, and total capital investment of $255–$279 million.

Proceeds from the Casa Berardi sale are expected to bolster Hecla’s liquidity and reduce leverage, enabling continued investment in its core silver assets. At year-end 2025, Hecla held no borrowings on its revolving credit facility following $100 million of net debt repayment, and reported $148 million of operating cash flow in the third quarter alone. The company is targeting disciplined capital allocation in 2026, funding record exploration while maintaining a conservative payout ratio and preserving flexibility to pursue opportunistic asset acquisitions or mine expansions within its Alaska, Idaho and Yukon portfolio.