HL-PB — Hecla Mining Company

Hecla Mining Company Q2 2026 Earnings Call Summary

1. Key Financial Results and Metrics

• Revenue: $334 million from continuing operations, down from $411 million in Q1 2026, primarily due to lower metal prices and timing of sales.
• Adjusted EBITDA: $199 million, more than double the $94 million from the previous year.
• Operating Cash Flow: $175 million; Free Cash Flow: $136 million, close to the record $144 million from Q1 2026.
• Production: 4.2 million ounces of silver produced, an 8% increase from the prior quarter.
• Cash Position: $483 million in cash, no long-term debt (excluding capital leases), and a fully undrawn $225 million revolving credit facility.
• Net Income: $118 million or $0.18 per share.

2. Strategic Updates and Business Highlights

• Project Pipeline: Hecla is advancing several projects, including the Greens Creek pyrite concentrate circuit and tailings reprocessing project, which could significantly enhance production and cash flows.
• Safety Performance: Improved safety metrics with a total recordable injury frequency rate (TRIFR) of 1.57, down from 2.07 in Q1.
• Greens Creek: Produced 2.1 million ounces of silver with cash costs of negative $17.11 per ounce, and free cash flow of $130 million.
• Lucky Friday: Achieved a production record of 1.5 million ounces of silver, with cash costs of $3.95 per ounce and free cash flow of $88 million.
• Keno Hill: Produced 625,000 ounces of silver, with ongoing focus on permitting and infrastructure development.

3. Forward Guidance and Outlook

• Greens Creek: Revised full-year silver production guidance to 8 million to 8.3 million ounces, with improved cost metrics.
• Lucky Friday: Tightened production guidance to 4.9 million to 5.2 million ounces of silver.
• Keno Hill: Updated guidance of 2.2 million to 2.6 million ounces of silver, with a focus on permitting and site development.
• Free Cash Flow Projections: Potential to generate $500 million to $800 million in free cash flow depending on metal prices.

4. Bad News, Challenges, or Points of Concern

• Revenue Decline: Revenue decreased due to lower metal prices and timing of concentrate sales, which could impact future cash flow.
• Production Timing: Some production was not sold by quarter-end, affecting reported revenue.
• Keno Hill Permitting Delays: The timeline for achieving commercial production is extended, with critical permits expected by mid-2029.
• Market Volatility: Ongoing fluctuations in metal prices pose risks to revenue and profitability.

5. Notable Q&A Insights

• Cost Structure: Management discussed the low impact of rising fuel prices due to the nature of their operations, which are less sensitive to fuel costs compared to peers.
• Pyrite Concentrate Project: Expected to add 1 million to 1.2 million ounces of silver annually, with minimal permitting required and high demand anticipated.
• Lucky Friday Performance: High grades were attributed to scheduled mining of a high-grade zone, with expectations of reverting to lower grades in the future.
• Exploration Plans: Continued investment in exploration with a $55 million budget focused on near-mine programs and potential resource development at Midas and Aurora.

This summary encapsulates the key financial metrics, strategic initiatives, forward guidance, challenges, and insights from the Q&A session, providing a comprehensive overview of Hecla Mining Company's performance and outlook for Q2 2026.