Hecla Posts Record Free Cash Flow of $151 Million

The Tip Desk · November 4, 2026 · 4 min read

The silver miner's third-quarter free cash flow from continuing operations reached a record $151 million, while income from continuing operations was $150 million, or $0.22 a share.

Hecla Mining Company (HL) reported record free cash flow from continuing operations of $151 million in the third quarter of 2026, surpassing the prior all-time high of $144 million set in the first quarter, as cash provided by operating activities from continuing operations reached a record $203 million.

Revenue from continuing operations was $395 million, up 18% from $334 million in the second quarter, reversing the expected pullback from a record first quarter. The company said the increase was primarily driven by the timing of sales at Greens Creek, with payable silver sold 23% higher.

Income from continuing operations was $150 million, or $0.22 a share, compared with $118 million, or $0.18 a share, in the prior quarter. The company said the increase was related to the 18% rise in revenue and a $36 million increase in fair value adjustments, net, primarily from realized and unrealized marketable securities gains, partly offset by a $41 million increase in costs applicable to sales, a $22 million increase in tax expense, and a $6 million increase in exploration and pre-development expense. Adjusted EBITDA from continuing operations was $211 million, up 6% after a 25% sequential decline in the second quarter.

Cash and cash equivalents ended September 30 at $692 million, up over 43% from $483 million, reflecting cash flow generation and $64 million of proceeds from the sale of investments. Hecla remains debt free excluding finance leases and entered a new $500 million revolving credit agreement with a $100 million accordion option. The new facility is undrawn, with $3.4 million of capacity used for letters of credit.

Consolidated silver production from continuing operations was 4.2 million ounces, nearly unchanged from the prior quarter after an 8% increase in the second quarter. Keno Hill produced nearly 1.0 million ounces, a new quarterly record, on record tons milled of 38,163 and a 36% higher milled silver grade, offsetting 6% and 17% declines at Greens Creek and Lucky Friday. Greens Creek produced 1.94 million ounces of silver and nearly 12 thousand ounces of gold. Lucky Friday produced nearly 1.3 million ounces after a 1.5 million ounce record in the second quarter.

Silver payable ounces sold were 4.1 million, primarily from Greens Creek and Keno Hill, partly offset by lower Lucky Friday sales. Costs applicable to sales from continuing operations rose 35% to $158 million from $117 million, primarily on higher sales volumes of silver, gold, lead and zinc. Silver cash cost excluding Keno Hill was ($3.20) per ounce and AISC $14.34, higher than the prior quarter’s ($8.10) and $6.07, on lower Greens Creek and Lucky Friday ounces, $26 million higher costs applicable to sales, and $14 million lower by-product credits, partly offset by $4 million lower treatment charges that shifted to a net credit.

Greens Creek set a new site-level quarterly free cash flow record of $147 million. The company said cash flow from continuing operations rose primarily due to favorable working capital changes, higher volumes of payable silver and gold ounces sold, and a higher realized gold price, partly offset by a lower realized lead and zinc price. Capital investment in continuing operations was $52 million, up 32% from the prior quarter.

Consolidated 2026 silver production guidance is now 15.3-16.1 million ounces, with the low end raised from 15.1-16.1 million ounces. Lucky Friday’s low end was raised to 5.0-5.2 million ounces and Keno Hill’s to 2.3-2.6 million ounces; Greens Creek silver and gold guidance were unchanged. Consolidated silver cash cost and AISC guidance improved to ($4.75)-($4.25)/oz and $11.50-$12.50/oz on first-nine-months outperformance, reduced sustaining capital, and higher by-product credits. Total 2026 capital investment guidance was lowered to $198-$214 million from $208-$223 million.

Keno Hill mill throughput is to be suppressed to about 300 tons per day in the fourth quarter of 2026, with further suppression expected from January 2027, to preserve tailings, waste rock and water treatment capacity while license amendments are pursued, currently estimated by about mid-2029. The company said the suppression is not a cost-driven decision and that it expects to hold the lower milling rate until amendments are received and related infrastructure is built.