Hecla Q3 2026 slides: record cash flow, path to 20+ Moz silver output

Hecla Mining Company (NYSE:HL) presented its third quarter 2026 results on November 4, 2026, showcasing record financial performance and outlining a clear pathway to becoming a 20+ million ounce annual silver producer. The presentation comes as shares jumped nearly 12% in after-hours trading to $14.79, following earnings that beat Wall Street estimates by a significant margin.

The company, which positions itself as North America’s premier silver producer with 135 years of history, reported adjusted earnings of $0.22 per share versus the $0.15 consensus estimate, while revenue of $395 million topped expectations of $343.4 million. More importantly for investors focused on cash generation, Hecla delivered record free cash flow of $151 million—nearly triple the $52 million generated in the same quarter last year.

As detailed in the company’s third quarter performance summary, Hecla achieved what management described as the strongest balance sheet in company history, combining robust operational execution with exceptional financial results.

The financial highlights reveal a company firing on multiple cylinders. Revenue from continuing operations reached $395 million, while adjusted EBITDA climbed to $211 million, representing a 6% increase over the prior quarter and a 40% jump from Q3 2025. Operating cash flow from continuing operations hit a record $203 million, supporting the record free cash flow of $151 million.

Operationally, Hecla produced 4.2 million ounces of silver in the quarter, within 1% of the prior quarter’s output. The company’s consolidated all-in sustaining cost (AISC) came in at $14.34 per ounce, while the realized silver price of $63.62 per ounce delivered a margin of 77% of the realized price. Safety performance also improved, with the consolidated total recordable incident frequency rate (TRIFR) declining to 1.51 from 1.57 in the prior quarter.

The company’s balance sheet transformation stands out particularly. Hecla ended the quarter with $692 million in cash and no long-term debt outside of finance leases, backed by a fully undrawn new $500 million revolving credit facility plus a $100 million accordion option. This represents a dramatic shift from a net debt position of approximately $144 million a year ago to a net cash position of about $680 million.

The presentation emphasized Hecla’s unique competitive position in the North American silver mining landscape through six key strengths.

As the oldest precious metals mining company on the NYSE with 135 years of history, Hecla benefits from 100% of operations located in the U.S. and Canada—jurisdictions considered among the most favorable for mining. The company maintains peer-leading silver exposure in both revenue and reserves, with an average reserve equivalent life nearly 72% longer than the peer group average.

Critically, Hecla claims to be the lowest-cost producer in its peer group on an AISC basis, with the third quarter results supporting this assertion. The company’s cash cost per silver ounce, after byproduct credits, came in at negative $3.20 per ounce, meaning byproduct revenues from gold, lead, zinc, and copper more than covered direct silver production costs.

Silver accounted for 69% of third quarter revenues, as illustrated in the company’s revenue breakdown by metal and mine.

The revenue composition shows Greens Creek contributing 60% of total revenue, Lucky Friday 27%, and Keno Hill 13%. At the individual mine level, Greens Creek’s revenue mix was 61% silver, 24% gold, 11% zinc, and 4% lead. Lucky Friday was even more silver-focused at 76% silver, while Keno Hill derived 97% of revenue from silver.

Perhaps the most significant aspect of the presentation was management’s articulation of a clear path to significantly higher production levels over the medium term.

The company outlined a medium-term silver growth potential of 20+ million ounces annually, up from the 15.3-16.1 million ounces guided for 2026. This represents potential growth of approximately 30% from current levels. The growth is expected to come from multiple sources: nearer-term opportunities at Greens Creek including a pyrite concentrate circuit and tailings reprocessing, medium-term potential from Keno Hill ramping to 440 tons per day following license amendments and related infrastructure, and a production restart at Midas.

The historical production chart shows the company produced approximately 14.5 million ounces in 2023, ramped to about 17 million ounces in 2025, before pulling back to approximately 15.5 million ounces in 2026 due to planned reductions at Keno Hill. The medium-term projection shows total production approaching 20 million ounces, with contributions from all four mines including the restarted Midas operation.

The company detailed three major organic growth opportunities that underpin its medium-term production targets.

The Greens Creek pyrite concentrate circuit represents a significant value-creation opportunity, with projected additional annual production of approximately 1.0-1.2 million ounces of silver and 10,000-15,000 ounces of gold once fully ramped up. Intermittent production is expected in late 2027, with the new circuit fully operational in late 2028, subject to investment approval. Early indications show a robust return on capital meeting company thresholds, while also reducing the rate of tailings generation.

The Greens Creek dry stack tailings reprocessing project involves approximately 10.7 million tons of tailings containing an estimated 51 million ounces of silver and 600,000 ounces of gold. At September 30, 2026 metal prices, the in-situ value of contained metals is approximately $6.4 billion before costs. Management emphasized this material is not classified as a mineral resource or mineral reserve but represents potential to reduce the mine’s reclamation liability. The company is evaluating three pathways: reprocessing with a third-party facility, direct sale as low-grade feedstock to smelters or concentrate dealers, and/or onsite self-processing.

The Midas restart project benefits from an existing high-grade gold and silver resource, a fully permitted mill at approximately 1,200 tons per day capacity, a permitted tailings facility with roughly 15 years of storage capacity, and permitted surface infrastructure. Management plans to provide regular Midas exploration updates throughout 2027.

Greens Creek, the company’s flagship operation in Alaska, continued to demonstrate why it serves as the cornerstone of Hecla’s business.

In the third quarter, Greens Creek produced 1.9 million ounces of silver and 12,000 ounces of gold. Costs applicable to sales were $76.2 million, resulting in cash costs and AISC per silver ounce of negative $10.11 and negative $3.25, respectively—meaning the mine generated significant positive margins even before accounting for the silver revenue. The operation generated $155.1 million in cash flow from operations and a record quarterly free cash flow of $146.8 million.

For full-year 2026, Greens Creek guidance calls for 8.0-8.3 million ounces of silver and 51,000-55,000 ounces of gold production. While costs applicable to sales guidance was raised to $250 million due to higher-than-expected on-site power generation costs in the fourth quarter, the per-ounce cost metrics improved after accounting for favorable byproduct credits. The mine has a 12-year reserve mine plan and generated $292 million in economic impact in 2025.

Lucky Friday in Idaho maintained its position as a proven silver producer despite some quarter-over-quarter variability.

The operation produced 1.3 million ounces of silver in Q3 2026, with costs applicable to sales of $34.2 million. Cash costs and AISC per silver ounce were $7.31 and $27.68, respectively. The mine generated $88.3 million in cash flow from operations and $66.8 million in free cash flow. An important milestone is the surface cooling project, expected to commission in Q4 2026, which should support more consistent operations.

Full-year 2026 guidance for Lucky Friday calls for 5.0-5.2 million ounces of silver production. Notably, the company tightened and improved its cost guidance during the quarter, with cash costs now expected at $8.50-$9.00 per ounce (down from $9.00-$9.75 previously) and AISC at $24.50-$25.50 per ounce. The operation has a 15-year reserve mine plan and generated $190 million in economic impact in 2025.

Keno Hill in Yukon represents both a near-term challenge and medium-term opportunity for the company.

In Q3 2026, Keno Hill produced 963,000 ounces of silver with a milled silver grade of 26.2 ounces per ton—improving over 35% compared to the prior quarter and achieving a new quarterly record milling rate. The operation generated $4.8 million in cash flow from operations, though free cash flow was slightly negative at $2.1 million as the company continues to invest in infrastructure.

However, management announced that throughput will be suppressed to approximately 300 tons per day in Q4 2026, with further suppression beginning in January 2027 to preserve tailings, waste rock, and water treatment capacity until license amendments and related infrastructure are in place. This explains the near-term production moderation visible in the medium-term outlook chart, even as the mine is expected to ramp to 440 tons per day once permits and infrastructure are completed.

Full-year 2026 guidance calls for 2.3-2.6 million ounces of silver production, with capital investment of $55-59 million. The operation has a 13-year reserve mine plan and generated $176 million in economic impact in 2025.

The company’s financial performance in Q3 2026 demonstrated the operating leverage inherent in its business model, particularly in a favorable precious metals pricing environment.

Income from continuing operations showed a strong upward trajectory, reaching $149.6 million in Q3 2026 compared to $89.4 million in Q3 2025—a 67% year-over-year increase