Hecla Mining Co.: Q3 FY2026 earnings call

What management said about Q3 FY2026, from the documents filed with the SEC on 4 November 2026: press release. Guidance figures: 1 raised, 5 lowered, 4 narrowed, 2 new, 7 kept. The quarter’s numbers.

Read the filing

Key takeaways

• Income and per-share earnings rose: Income from continuing operations was $149.6 million, or $0.22 per share, against $117.9 million or $0.18 in the prior quarter. Sales were $394.8 million. Source
• Record quarterly free cash flow: Free cash flow from continuing operations was $151.2 million, above the first-quarter high of $144 million; operating cash flow was $203 million. Source
• Keno Hill set a quarterly silver record: Keno Hill silver output rose 54% to a new quarterly record near 1.0 million ounces, on record tons milled and a higher milled silver grade. Source
• Keno Hill milling cut from fourth quarter: Management is suppressing Keno Hill milling to protect permitted tailings, waste rock and water capacity, with further cuts from January 2027. The company said the cut is not cost-driven. Source
• Silver cash cost and AISC rose: Silver cash cost stayed negative at ($3.20) per ounce and AISC was $14.34, both excluding Keno Hill, which has not reached commercial production. Source
• Lower by-product credits drove the rise: Costs rose $26 million and by-product credits fell $14 million on lower gold production, partly offset by $4 million lower treatment charges. Source
• Cash rose to $692 million: Cash rose over 43% to $692 million, with operating cash flow and $64 million of investment sale proceeds contributing. Source

“Our third quarter results reflect the strength of the platform we have built, and we are well positioned to achieve our 2026 guidance.”

Rob Krcmarov, President and Chief Executive Officer

Guidance

What changed from last quarter

• Guidance raised: Consolidated silver production low end raised from 15.1 million ounces to 15.3 million ounces. Source
• Guidance raised: Greens Creek costs applicable to sales guidance raised by $10 million to $250 million. Source
• Guidance lowered: Total capital investment guidance lowered by about 4 percent to $198-$214 million. Source
• Guidance lowered: Total silver cash cost and AISC guidance lowered; document describes the change as improved. Source
• New guidance: Keno Hill mill throughput suppressed to about 300 tons per day in the fourth quarter, to preserve permitted tailings and water capacity. Source
• New: Intermittent pyrite concentrate production with temporary equipment is now targeted for late 2027, ahead of the new circuit in late 2028. Source
• New: Greens Creek dry-stack tailings evaluation widened to include two additional potential paths. Source
• New: New $500 million revolving credit agreement with a $100 million accordion option; the facility is undrawn. Source
• New: Dale Andres joined the Board of Directors. Source
• Guidance kept: Exploration and pre-development guidance is unchanged at $55 million. Source
• Guidance kept: Greens Creek gold production guidance reiterated at 51.0-55.0 koz. Source
• Guidance lowered: Mine-level capital: Greens Creek and Keno Hill lowered, Lucky Friday raised versus prior ranges. Source

Results and cash generation

• Income and per-share earnings rose: Income from continuing operations was $149.6 million, or $0.22 per share, against $117.9 million or $0.18 in the prior quarter. Sales were $394.8 million. Source
• Adjusted EBITDA rose six percent: Adjusted EBITDA from continuing operations was $211.5 million, against $199.2 million, with higher revenue partly offset by higher costs and exploration spending. Source
• Record quarterly free cash flow: Free cash flow from continuing operations was $151.2 million, above the first-quarter high of $144 million; operating cash flow was $203 million. Source
• Greens Creek led cash generation: Greens Creek set a site-level quarterly free cash flow record of $147 million, the largest single contributor to the quarter's cash generation. Source
• Revenue rose on sales timing: Sales rose 18% on timing of shipments at Greens Creek; payable silver sold rose 23% on the same timing. Source

Segments and mines

• Greens Creek output fell on maintenance: Greens Creek silver output fell 6% after higher-than-planned maintenance; gold output fell 16% on 5% lower mill throughput. Source
• Lucky Friday fell from record grade: Lucky Friday silver output fell 17% to about 1.3 million ounces as the mine left a high-grade pocket that drove the prior quarter's record. Source
• Keno Hill set a quarterly silver record: Keno Hill silver output rose 54% to a new quarterly record near 1.0 million ounces, on record tons milled and a higher milled silver grade. Source
• Concentrate shipments caught up: Greens Creek concentrate production fell for all three products while silver concentrate sales rose, the company said, reflecting catch-up in shipments. Source

“We generated record free cash flow of $151 million, led by Greens Creek's record $147 million.”

Rob Krcmarov, President and Chief Executive Officer

Keno Hill mill and tailings

• Keno Hill milling cut from fourth quarter: Management is suppressing Keno Hill milling to protect permitted tailings, waste rock and water capacity, with further cuts from January 2027. The company said the cut is not cost-driven. Source
• Permitted capacity is the purpose: The suppression preserves tailings storage, waste rock and water treatment capacity under current permits while license amendments are pursued. Source
• Tailings runway depends on milling rate: About 200,000 tons of tailings storage remains under current permits, including the Phase 2W expansion; its life depends on the milling rate and tailings per ton. Source
• Lower rate held until mid-2029: The lower milling rate is expected to hold until license amendments arrive, currently estimated around mid-2029, and the related infrastructure is built. Source
• Silver to fall less than throughput: Silver output is expected to decline by less than throughput as the mine targets higher-grade areas and stockpiles lower-grade material for later processing. Source

Costs, margins and by-products

• Costs rose with sales timing: Costs applicable to sales rose 35% to $158 million, due mainly to the timing of sales. Source
• Silver cash cost and AISC rose: Silver cash cost stayed negative at ($3.20) per ounce and AISC was $14.34, both excluding Keno Hill, which has not reached commercial production. Source
• Lower by-product credits drove the rise: Costs rose $26 million and by-product credits fell $14 million on lower gold production, partly offset by $4 million lower treatment charges. Source
• Treatment charges turned to a credit: Treatment charges moved to a net credit in the quarter on favorable market conditions, which management said could persist through the fourth quarter. Source
• Year-to-date costs improved: Year-to-date AISC of $9.37 per ounce was close to $9.26 a year earlier; year-to-date cash cost improved to ($4.94) from ($2.20). Source

“These opportunities are still early stage, but they demonstrate the potential for meaningful value creation and to further solidify Hecla's position as North America's premier silver producer.”

Rob Krcmarov, President and Chief Executive Officer

Capital, cash and balance sheet

• Cash rose to $692 million: Cash rose over 43% to $692 million, with operating cash flow and $64 million of investment sale proceeds contributing. Source
• Debt free with undrawn revolver: The company remains debt free excluding finance leases; the new revolver is undrawn, with $3.4 million used for letters of credit. Source
• Capital spending to rise in Q4: Capital investment was $52 million, up 32% on the prior quarter, and is expected to rise in the fourth quarter, including the Keno Hill dry stack expansion. Source

Growth pipeline and exploration

• Pyrite circuit still at scoping level: The Greens Creek pyrite work is at a scoping level of engineering with some advanced design, and is subject to permits and final investment approval. Source
• Tailings testing may reach pilot plant: Phase 3 metallurgical testing is done with results pending; the work has the potential to advance to a pilot plant test in Phase 4. Source
• Dry-stack tailings carry large metal value: The dry-stack tailings are estimated at about $6.4 billion of in-situ gross metal value before costs, but the company says this is not a mineral resource or reserve. Source
• Midas restart still under evaluation: Midas restart evaluation continues with no decision made; the question is whether the veins have enough continuity and grade to support a resource. Source
• Flame and Moth zone extended: A new zone at Flame and Moth is defined over 350 feet of dip length, 900 feet southwest of the existing resource, with follow-up drilling into 2027. Source

Board, safety and shareholder returns

• Dale Andres joins the board: Dale Andres, a mining executive with over 35 years in base and precious metals, joined the Board of Directors. Source
• Safety rate improved: Consolidated total recordable incident rate was 1.51, down from 1.57 in the prior quarter. Source
• Quarterly dividend declared: The Board declared a $0.00375 per share quarterly cash dividend, payable December 8, 2026, to holders of record on November 23. Source

Coming up, as management said on 4 November 2026

• Keno Hill 2027 guidance due: The company expects to provide Keno Hill production guidance for 2027 in February 2027. Source
• Greens Creek test parcel shipment: A test parcel of low-grade dry-stack feedstock is planned for shipment and sale to a third-party smelter in the fourth quarter. Source
• Self-processing testing starts 2027: Metallurgical evaluation of the self-processing concept starts in the first quarter of 2027, with results potentially by spring 2027. Source
• Lucky Friday cooling project commissioning: The Lucky Friday surface cooling project is expected to commission in the fourth quarter. Source

Figures management reported

Risks management discussed

• Regulatory: Keno Hill tailings capacity and its duration depend on milling rate and tailings generated per ton milled. Source
• Operational: Keno Hill is not yet in commercial production, so it is excluded from the silver cost and AISC guidance. Source
• Operational: Actual production depends on grades, dilution and recoveries achieved in the mines and mill. Source
• Regulatory: Greens Creek pyrite circuit proceeds only subject to permits and final investment approval. Source

Earlier plans management reported on

• Not stated: Management now describes the project as in commissioning, with construction recently completed. Source
• Ahead: Management now targets intermittent production in late 2027, ahead of completing the new circuit in late 2028. Source
• Met: Phase 3 testing was completed in August 2026; metallurgical results are still pending. Source
• Met: Drilling began at Aurora and Hollister in Nevada, as the prior release had planned. Source

Other quarters

• Q2 FY2026 earnings call
• Q1 FY2026 earnings call
• Q4 FY2025 earnings call
• Q3 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.