Hecla Mining Company

Hecla reported revenue from continuing operations of $334 million versus $411 million in Q1, adjusted EBITDA of $199 million versus $94 million a year ago, operating cash flow of $175 million, free cash flow of $136 million, and net income from continuing operations of $118 million, or $0.18 per share. Mine revenue was $323 million, and management said the company realized 90% of the realized silver price as margin during the quarter. Silver production was 4.2 million ounces, up 8% sequentially, and Lucky Friday produced a quarterly record 1.5 million ounces of silver. On guidance, Greens Creek now expects 8.0 million to 8.3 million ounces of silver and 51,000 to 55,000 ounces of gold for the full year, with AISC of negative $4.25 to negative $3.75 per ounce after byproduct credits. Lucky Friday’s full-year silver guidance was tightened to 4.9 million to 5.2 million ounces, with cash costs of $9 to $9.75 per ounce and AISC of $20.50 to $26 per ounce. Keno Hill’s full-year silver guidance was revised to 2.2 million to 2.6 million ounces. The company ended the quarter with $483 million in cash, no long-term debt outside capital leases, and an essentially fully undrawn $225 million revolving credit facility with a $75 million accordion.

Rob Krcmarov framed the quarter as proof that Hecla is in the strongest financial position in its history and said the business now has the flexibility to invest in future growth on its own timetable. He emphasized that the company’s core assets remain high quality, safety improved meaningfully, and the project pipeline is expanding with low-capital, high-return opportunities. His tone was confident and upbeat, but he also stressed discipline: projects must clear Hecla’s return hurdles and move forward only when the engineering supports it.

Russell Lawlar highlighted the key financial results, including $199 million of adjusted EBITDA, $136 million of free cash flow, and $483 million in cash at quarter end. He said the company moved from nearly $270 million of net debt a year ago to roughly $472 million of net cash today, and noted that Hecla’s operations are relatively insulated from energy-price spikes because fuel was only about 3% of consolidated cost structure and power is largely hydro-based. He also pointed to the 2026 free cash flow outlook of about $500 million at $50 silver and $3,500 gold, nearly $700 million at $75 silver and $4,500 gold, and nearly $800 million at $100 silver and $5,500 gold. On taxes, he said Hecla expects to use NOLs on both a state and federal basis this year and benefited from combining its Nevada U.S. group with its main U.S. group.

Analysts focused on why corporate free cash flow did not line up neatly with the strong site-level numbers, and Russell said the difference was mainly exploration expense, corporate items, and working-capital timing. Questions on Keno Hill centered on whether the lower 2026 guidance implies a lower sustainable run rate; management said Q3 should look similar to Q2, the second half should be slightly better than the first half, and the mine is being run deliberately while permitting and infrastructure are advanced. Analysts also pressed on the Greens Creek pyrite concentrate project, asking about payability, permitting, and potential reserve impact; management said payability is still being worked through, permitting should be minimal, and some material may convert from resources into reserves. Additional questions on Lucky Friday’s strong grades, the cooling project, and Midas/Aurora confirmed that some of the grade strength was planned timing, the cooling project should support long-term productivity, and Midas/Aurora are being advanced in parallel with permitting and engineering work.