Revenue Growth and Strong Top-Line
Revenue from continuing operations exceeded $410 million in Q1 2026, up 13% sequentially and approximately 100% higher than Q1 2025 (double the prior-year level).
Hecla Mining Company
· HL
May 5th, 2026
Summary
- Earnings Call Date:
- 2026-05-05
- Change Since:
- -14.84%
- Next Earnings Date:
- 2026-08-11
Earnings Call Sentiment
PositiveThe call emphasized a strong operational and financial turnaround: debt elimination, record free cash flow and EBITDA, low costs, and clear organic growth and exploration upsides. Challenges noted were largely execution and timing related (permitting at Keno Hill, early-stage project uncertainties, grade variability at Lucky Friday, and shipping/AR timing). Overall the narrative was confident and forward-looking with multiple near- and medium-term value-creation initiatives under evaluation.
Company Guidance
Management reiterated 2026 operational guidance of 15.1–16.5 million ounces of silver with consolidated AISC below $10/oz, while reporting Q1 continuing-operations revenue >$410M, record adjusted EBITDA of $265M and record consolidated free cash flow of $144M; Q1 silver production was ~3.9M oz (Greens Creek 2.2M oz Ag and 13k oz Au, Lucky Friday 1.2M oz, Keno Hill ~0.5M oz), consolidated cash costs near negative $3/oz, Greens Creek cash costs nearly -$12/oz and AISC -$8.39/oz, and mine-level free cash flow of roughly $126M (Greens Creek), $49M (Lucky Friday) and $16.3M (Keno Hill). The balance sheet strength underpins the plan—$588M cash, $266M total debt (net cash ~$321M) and no long-term debt after redeeming remaining senior notes, a fully undrawn $225M revolver with a $75M accordion, a board-approved 20M-share buyback program, and a stepped-up 2026 exploration/pre-development budget of $55M (including $16M for Nevada); management also highlighted near-term, low‑capex growth opportunities (Greens Creek pyrite concentrate circuit with cash flow potential in ~2 years and an internal estimate of relatively modest capital, plus Greens Creek tailings containing ~10.4M tons with an estimated ~50M oz Ag and ~600k oz Au valued at ~ $6.8B gross at year‑end 2025 prices) and projected 2026 consolidated free cash flow of >$900M at $100/oz Ag & $5,500/oz Au (and >$700M at $75 Ag & $4,500 Au).
Record Profitability and Cash Generation
Record adjusted EBITDA of $265 million and record consolidated free cash flow of $144 million for the quarter; every mine reported positive free cash flow in Q1.
Debt Elimination and Strengthened Balance Sheet
Redeemed senior notes (including a $263M redemption on April 9 and subsequent redemption of remaining notes after quarter-end), ending the company with no long-term debt. Ended the quarter with $588 million cash, $266 million total debt (net cash position reported $321 million) and a fully undrawn $225 million revolving credit facility (with $75 million accordion).
Low Costs and Exceptional Margins
Consolidated cash costs near negative $3/oz and all-in sustaining costs (AISC) below $10/oz. Greens Creek delivered cash costs of roughly negative $12/oz and AISC of negative $8.39/oz (after by-product credits). Realized margin of ~90% of the realized silver price during the quarter.
Production and Operational Performance
Consolidated production of 3.9 million ounces of silver in Q1, ~3% higher than the prior quarter. Greens Creek produced 2.2 million oz silver and 13,000 oz gold; Lucky Friday produced 1.2 million oz silver; Keno Hill produced nearly 0.5 million oz silver. Greens Creek set a record for underground backfill placement (164,000 tons, +16% vs 2025 quarterly average).
Robust Production Guidance and Growth Pathway
2026 silver production guidance reiterated at 15.1 to 16.5 million ounces, with a longer-term pathway to 20+ million ounces driven by Keno Hill ramp, potential Midas restart, and other Nevada projects.
Exploration Ramp-Up
Transformational 2026 exploration budget of $55 million (near doubling vs 2025), including $16 million allocated to Nevada (more than 3x last year). Ongoing drilling at Midas with high-grade intercepts (e.g., DMC-476: 0.21 oz/ton Au and 1.6 oz/ton Ag over 2.3 ft) and active programs at Hollister and Aurora.
Significant Asset Optionality at Greens Creek
Evaluating a pyrite concentrate circuit (low capital intensity, potential cash flow in ~2 years) and tailings reprocessing (estimated ~10.4M tons in dry stack containing an estimated 50M oz silver and ~600k oz gold; gross metal value ~$6.8B at 2025 prices) — both could increase recoveries and reduce reclamation liability if advanced.
Large Projected Cash Flow Upside at Multiple Price Decks
Projected 2026 consolidated free cash flow: >$900 million at $100/oz silver & $5,500/oz gold; >$700 million at ~$75/oz silver & $4,500/oz gold — highlighting strong cash generation sensitivity to metal prices.
Operator
Thank you for joining us, welcome to Q1 2026 Hecla Mining Company Earnings Conference Call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star 1 to raise your hand. To withdraw your question, please press star 1 again. I will now hand the conference over to Mike Parkin, Vice President of Strategy and Investor Relations. Please go ahead.
Mike Parkin
Thank you, Hillary. Good morning, and thank you for joining us for Hecla Mining Company's first quarter 2026 results conference call. I am Mike Parkin, Vice President of Strategy and Investor Relations. Our earnings release that was issued yesterday along with today's presentation are both available on our website. On the call today with us is Robert L. Krcmarov, President and Chief Executive Officer; Russell D. Lawlar, Senior Vice President and Chief Financial Officer; Carlos Aguiar, Senior Vice President and Chief Operations Officer; Kurt D. Allen, Vice President, Exploration; Matthew Blattman, Vice President, Technical Services; as well as other members of our management team.
At the conclusion of our prepared remarks, we will also be available for questions. Turning to slide two, cautionary statements. Any forward-looking statements made today by the management team come under the Private Securities Litigation Reform Act and involve risks as shown on slide two, in our earnings release, and in our 10-Q filing with the SEC. These and other risks could cause results to differ from those projected in the forward-looking statements. Non-GAAP measures cited in this...
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