Hecla Mining Company

Revenue from continuing operations was $334 million versus $411 million in Q1, and mine revenue was $323 million. Adjusted EBITDA from continuing operations was $199 million, compared with $94 million a year ago, while net income from continuing operations was $118 million, or $0.18 per share. Operating cash flow was $175 million and free cash flow was $136 million, with corporate free cash flow nearly matching Q1’s record $144 million. Hecla produced 4.2 million ounces of silver, up 8% from the prior quarter, and Lucky Friday posted a quarterly production record of 1.5 million ounces. The company ended with $483 million in cash and no long-term debt outside capital leases. Guidance updates included Greens Creek silver production of 8.0 million to 8.3 million ounces and gold of 51,000 to 55,000 ounces; Lucky Friday silver production of 4.9 million to 5.2 million ounces; and Keno Hill silver production of 2.2 million to 2.6 million ounces. Management also showed 2026 after-tax free cash flow potential 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.

Rob Krcmarov framed the quarter as evidence that Hecla is in the strongest financial position in its history and said that strength gives the company flexibility to invest in its project pipeline on its own timeline. He repeatedly stressed that the business is generating substantial free cash flow today and that the company is focused on disciplined, high-return organic investments rather than large near-term expansions. His tone was confident and upbeat, especially around Greens Creek, Keno Hill, and the Nevada restart pipeline.

Russell Lawlar emphasized the earnings power of the asset base, noting that realized margins captured 90% of the realized silver price during the quarter. He pointed to the balance sheet improvement from nearly $270 million of net debt a year ago to roughly $472 million of net cash today, supported by $483 million of cash and an essentially fully undrawn revolver. He also explained that lower AISC guidance came from strong Greens Creek byproduct performance, better cost control at Lucky Friday, and the profit-share mechanism at Lucky Friday moving down as silver prices eased; he added that capital spending should be higher in the back half of the year and that tax payments should remain relatively low because of U.S./Canada structure and NOL utilization.

Analysts pressed management on how silver-price-linked compensation and Lucky Friday’s profit share affect costs; Russell said the effect is mostly isolated to Lucky Friday, but he did not give a formula or exact sensitivity. They also asked about the difference between site-level and corporate free cash flow; Russell said the gap is driven by adding back site-level exploration expense and by corporate working-capital/timing items. On Keno Hill, management said Q3 should look similar to Q2 and that the mine remains free-cash-flow positive while permitting and infrastructure work continue toward a later ramp-up. Questions on Greens Creek’s pyrite circuit focused on payability, permits, and scale; management said engineering is still early, permitting should be minimal, and the project’s return is expected to exceed the company’s 12% to 15% ROIC hurdle substantially.