Hecla Mining Company

What they do

Hecla produces and sells concentrates containing silver, gold, lead, zinc, and copper, as well as carbon material and unrefined doré containing silver and gold. It operates four segments: Greens Creek (Alaska), Lucky Friday (Idaho), Keno Hill (Yukon), and Casa Berardi (Quebec), which is being divested. The company sells to custom smelters, metal traders, and refiners.

Revenue drivers

• Greens Creek — Largest segment, producing 8.7 million ounces of silver and 59,349 ounces of gold in 2025; sells silver and zinc concentrates and doré to smelters and traders.
• Lucky Friday — Underground silver mine in Idaho's Silver Valley; produced a record 1.5 million ounces of silver in Q2 2026, with AISC of $17.08 per ounce after by-product credits.
• Keno Hill — Silver mine in Yukon, ramping up to commercial production; produced 0.6 million ounces in Q2 2026 after working through a lower-grade zone; not yet in commercial production.
• Casa Berardi — Gold mine in Quebec being sold to Orezone Gold for up to $593 million; classified as discontinued operations in recent financials.

Recent performance

For Q2 2026, revenue was $334 million, with income from continuing operations of $118 million ($0.18 per share). Cash flow from continuing operations rose 61% year-over-year to $175 million, and free cash flow more than doubled to $136 million. Silver production from continuing operations was 4.2 million ounces, up 8% from the prior quarter. FY2025 revenue was $1.42 billion with net income of $321.7 million, compared to $929.9 million and $35.8 million in FY2024. The company ended Q2 2026 debt-free (excluding financial leases) with $483 million cash.

Strategy

Hecla's strategy focuses on operating safely and cost-effectively, strengthening the balance sheet to improve capital allocation and return on invested capital, and optimizing its portfolio. Key priorities include completing the ramp-up of Keno Hill, advancing the Libby exploration project in Montana, and maintaining exploration in Nevada and other districts. The company is also developing a pyrite concentrate circuit at Greens Creek for incremental silver and gold production, and expanding exploration in Nevada with 2026 investment guidance of $16 million. The sale of Casa Berardi is part of a portfolio review to focus on core silver assets.

Risks

• Metals price volatility — Revenue is directly tied to silver, gold, lead, zinc, and copper prices, which are volatile and influenced by factors beyond control; sustained price declines could cause losses and asset write-downs.
• Operational execution at Keno Hill — Keno Hill has not yet reached commercial production, and lower-grade zones have affected output, posing risk to achieving production and cost guidance.
• Regulatory and permitting risks — Operations require government permits; Casa Berardi's sale includes a permit receipt payment, and closure plan financial assurance costs could reduce deferred payments.
• Environmental and reclamation obligations — The company has asset retirement obligations, such as $51.6 million at Greens Creek, and potential higher closure costs could adversely affect financial results.

Outlook

Management expects 2026 consolidated silver production of 15.1-16.1 million ounces, revised lower due to Keno Hill but partially offset by improved outlooks at Greens Creek and Lucky Friday. Silver cash cost and AISC guidance were lowered due to better-than-expected first-half performance. The surface cooling project at Lucky Friday is on track for completion in September 2026. The Casa Berardi sale is expected to close, providing cash and equity consideration.