Hecla Revenue Falls as Prices and Shipments Weaken
Silver production increased 8% from the prior quarter to 4.21 million ounces.
Hecla Mining (HL), the silver producer, reported a sequential revenue decline as lower realized metal prices and reduced shipments outweighed higher silver production. Revenue fell 19% to $333.9 million, reversing the prior quarter’s 13% increase.
The pullback marked an inflection from Hecla’s record first quarter, though revenue remained 52% above the year-earlier period. Realized silver prices fell to $63.06 an ounce from $82.70, while realized gold prices declined to $4,256 from $4,899. Payable silver ounces sold decreased 5%, and payable gold ounces sold dropped 12%.
Income from continuing operations declined to $117.9 million, or $0.18 a share, from $164.7 million, or $0.25 a share, in the first quarter. A year earlier, Hecla earned $26.9 million, or $0.04 a share. Adjusted EBITDA fell 25% sequentially to $199.2 million, leaving the margin at about 59.7%, down from 64.4%.
Production shifted toward Lucky Friday and Keno Hill. Lucky Friday output jumped 24% to a record 1.53 million silver ounces as grade increased 31%, though the planned higher grade wasn’t expected to be sustained. Keno Hill production rose 28% to 625,236 ounces on a 38% increase in tons milled, while Greens Creek silver output declined 6% to 2.05 million ounces.
Higher production and by-product credits improved consolidated silver cash cost to negative $8.10 an ounce from negative $3.24, while all-in sustaining cost declined to $6.07 from $8.17. Lucky Friday’s free cash flow rose to a record $87.6 million, and Greens Creek reached a record $129.7 million, even as consolidated free cash flow eased 5% to $135.8 million.
Hecla now expects 2026 silver production of 15.1 million to 16.1 million ounces, narrowing the prior range’s upper end of 16.5 million. The company cut Keno Hill’s forecast and raised Greens Creek’s range, while total silver cost guidance improved to a cash cost between negative $4.00 and negative $3.75 an ounce and all-in sustaining cost of $12.50 to $13.50.
Hecla ended the quarter with no debt excluding finance leases after redeeming $263 million of senior notes, while cash declined to $483 million. The company also outlined a potential Greens Creek pyrite-concentrate circuit capable of adding 1.0 million to 1.2 million silver ounces annually, with first production targeted between the fourth quarter of 2027 and the first half of 2028.