Hecla Mining Co.: Q1 FY2026 earnings call

What management said about Q1 FY2026, from the documents filed with the SEC on 5 May 2026: press release. Guidance figures: 1 kept. The quarter’s numbers.

Read the filing

Key takeaways

• Free cash flow reached $144 million: Free cash flow from continuing operations was $144 million, up from $100 million in the prior quarter. Cash and cash equivalents were $588 million at March 31, 2026. Source
• Adjusted EBITDA rose 31 percent: Adjusted EBITDA from continuing operations was $265 million, up 31% on the prior quarter. Sales were $411 million, up 13%. Source
• Net income and EPS from continuing operations: Net income from continuing operations was $165 million, or $0.25 per share, against $24 million or $0.04 a year earlier. After a $192 million non-cash write-down on the Casa Berardi sale, the net loss to common was $19 million, or ($0.03) per share. Source
• Greens Creek cost per ounce much lower: Greens Creek silver AISC was ($8.39) per ounce after by-product credits, against ($0.03) in the first quarter of 2025, on higher production and gold by-product credits. Source
• Silver cash cost and AISC improved sharply: Silver cash cost was ($3.24) per ounce and AISC $8.17 per ounce, after by-product credits and excluding Keno Hill, against ($0.23) and $18.11 in the prior quarter. Source
• Net cash position at quarter end: Total debt was $266 million against cash of $588 million at March 31, 2026, moving the company to a net cash position. Source
• Realized silver and gold prices rose: Realized silver was $82.70 per ounce and gold $4,899, up from $69.28 and $4,210 in the prior quarter; realized lead rose slightly and zinc fell. Source

“The first quarter demonstrates the strength of the platform we have built.”

Rob Krcmarov, President and Chief Executive Officer

Guidance

What changed from last quarter

• Guidance kept: Production and cost guidance was reiterated; the release gives no revised production or cost figures. Source
• Ended: The Casa Berardi sale closed on March 25, and the mine is reported as a discontinued operation. Source
• New: The company redeemed the remaining $263 million of 7.25% Senior Notes on April 9, 2026, leaving no long-term debt. Source

Results and growth drivers

• Free cash flow reached $144 million: Free cash flow from continuing operations was $144 million, up from $100 million in the prior quarter. Cash and cash equivalents were $588 million at March 31, 2026. Source
• Adjusted EBITDA rose 31 percent: Adjusted EBITDA from continuing operations was $265 million, up 31% on the prior quarter. Sales were $411 million, up 13%. Source
• Net income and EPS from continuing operations: Net income from continuing operations was $165 million, or $0.25 per share, against $24 million or $0.04 a year earlier. After a $192 million non-cash write-down on the Casa Berardi sale, the net loss to common was $19 million, or ($0.03) per share. Source

Mines and operating segments

• Greens Creek cost per ounce much lower: Greens Creek silver AISC was ($8.39) per ounce after by-product credits, against ($0.03) in the first quarter of 2025, on higher production and gold by-product credits. Source
• Record underground backfill placement at Greens Creek: Greens Creek placed nearly 164 thousand tons of underground backfill, 16% above the 2025 quarterly average. Source
• Lucky Friday grade fell against higher throughput: Lucky Friday silver AISC was $23.78 per ounce after by-product credits; mill throughput rose 10% while head grade fell 11%. Source
• Keno Hill output down on grade and power: Keno Hill output fell 18% on the prior quarter as mining moved through a lower-grade Bermingham zone and power constraints delayed sequencing at Flame and Moth. Source

“The closing of the Casa Berardi sale sharpened our focus on silver and enabled us to redeem our Senior Notes in April, leaving Hecla debt-free with a $225 million undrawn revolver”

Rob Krcmarov, President and Chief Executive Officer

Costs, margins and by-product credits

• Silver cash cost and AISC improved sharply: Silver cash cost was ($3.24) per ounce and AISC $8.17 per ounce, after by-product credits and excluding Keno Hill, against ($0.23) and $18.11 in the prior quarter. Source
• By-product credits drove the cost change: By-product credits rose $13 million, mostly at Greens Creek, and general and administrative expense fell $3 million. Cash costs rose $3 million and treatment charges rose $1 million. Source
• Cost of sales rose on depreciation: Total cost of sales was $158 million, up $8 million, mainly from $6 million higher depreciation. The tax expense rose $25 million on higher profitability. Source

Cash, capital and shareholder returns

• Operating cash flow up despite receivables: Cash from operating activities from continuing operations was $183 million, up 10%, partly offset by a receivables build from elevated metal prices and Greens Creek shipment timing. Source
• Capital spending fell this quarter: Capital investment from continuing operations was $39 million, down $27 million on the prior quarter; corporate projects continue in 2026. Source
• Net cash position at quarter end: Total debt was $266 million against cash of $588 million at March 31, 2026, moving the company to a net cash position. Source
• Common and preferred dividends declared: The board declared a $0.00375 quarterly common dividend, payable June 10, 2026 to holders of record May 22, and a $0.875 Series B preferred dividend payable July 1. Source

“What further excites me is the quality of the organic growth initiatives advancing across our portfolio”

Rob Krcmarov, President and Chief Executive Officer

Project pipeline and strategy

• Greens Creek pyrite circuit under evaluation: The Greens Creek pyrite concentrate circuit is being evaluated; it would add a marketable concentrate and could reduce the mine's reclamation liability. Source
• Greens Creek tailings hold large metal value: The dry-stack tailings are estimated at 10.4 million tons, with about 50 million ounces of silver and nearly 600 thousand ounces of gold, worth about $6.8 billion in place before costs. Source
• Midas restart under evaluation: Management is evaluating restarting the permitted Midas mill in northern Nevada, a 1,200 tpd facility, and is working to expand the high-grade resource to restart scale. Source

Exploration and drilling

• Exploration spend of $4.6 million: Exploration and corporate development spending was $4.6 million in Q1 2026, including $0.3 million of pre-development, focused on Midas and Keno Hill discovery drilling. Source
• Sinter Offset gold structure extended: Drillhole DMC-476 returned 0.21 oz/ton gold and 1.6 oz/ton silver over 2.3 feet. The Sinter Offset structure is now traced over 1,350 feet of strike. Source
• Greens Creek and Lucky Friday drilling results: Greens Creek definition drilling with three underground rigs returned 18.2 oz/ton silver over 7.5 feet in the West Zone. Lucky Friday drilling on the 80 and 90 veins confirmed mineable grade. Source
• Bermingham vein drillhole upgraded resource: A Bermingham Vein drillhole returned 106.6 oz/ton silver over 2.4 feet, which the release says upgrades the local resource. Deep Bermingham assays were pending at quarter end. Source

Volumes sold and metal prices

• Silver payable sales fell on Keno Hill: Lower payable ounces at Keno Hill were the main cause of the drop in silver payable ounces sold in the quarter. Source
• Realized silver and gold prices rose: Realized silver was $82.70 per ounce and gold $4,899, up from $69.28 and $4,210 in the prior quarter; realized lead rose slightly and zinc fell. Source
• Cash flow helped by metal prices: Cash flow was helped by higher realized silver, gold and lead prices, partly offset by lower payable ounces and a lower realized zinc price. Source

Coming up, as management said on 5 May 2026

• Greens Creek tailings Phase 3 test: Phase 3 metallurgical test work on the Greens Creek tailings is scheduled for completion in mid-2026. Source
• Pyrite circuit project update timing: The company expects to give a project update on the Greens Creek pyrite concentrate circuit in late 2026 or early 2027. Source
• Hollister drilling to start late Q2: Drilling at the Hollister project, near the Midas mill, is scheduled to begin late in the second quarter. Source
• Regular Nevada exploration updates: The company aims to provide regular exploration updates on its Nevada projects throughout 2026. Source

Figures management reported

Risks management discussed

• Operational: Keno Hill production was affected by reduced power supply from Yukon Energy during extreme cold weather, which continued from the prior quarter. Source
• Regulatory: Sustained Keno Hill production at permitted capacity needs key infrastructure and amendments to two mining licenses, a multi-year process. Source
• Financial: Receivables tied to concentrate metal value rose at March 31, 2026, and most of that build was collected in April. Source

Earlier plans management reported on

• Met: The February release expected the sale to close in the first quarter of 2026; the sale closed on March 25.
• On track: Management says the surface cooling project is tracking for completion by mid-2026 and is 81% complete. Source
• Not stated: Management reiterated its production and cost guidance for 2026 in this release. Source

Other quarters

• Q2 FY2026 earnings call
• Q4 FY2025 earnings call
• Q3 FY2025 results
• Q2 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.