New York, Jan 27, 2026, 10:57 ET — Regular session
- Hecla shares drop as investors react to the gold mine exit and updated 2026 cost and production outlook
- The headline figure for the deal factors in stock and contingent payments, not solely cash
- Attention now shifts to how management handles the balance sheet and core silver assets going forward
Shares of Hecla Mining dropped 6.8% to $27.93 Tuesday morning, adding to the volatility hitting silver miners. The decline followed the company’s announcement of a significant asset sale and its operating goals for 2026.
This move is significant as Hecla reshapes its portfolio amid strong investor demand for precious metals. Offloading a producing gold mine sharpens the company’s focus on silver but shifts its cash flow profile, putting greater pressure on execution at its other assets.
It rolls out fresh guidance on production, spending, and costs right as traders recalibrate ahead of the next earnings and conference waves. The key debate boils down to this: how much cash flows in, how quickly it’s spent, and if margins in 2026 will hold firm should metal prices slide.
Hecla announced Monday it will sell the subsidiary that owns the Casa Berardi mine in Quebec to Orezone Gold for up to $593 million. The deal includes $160 million in cash at closing, with the remainder made up of Orezone shares, deferred cash, and contingent payments tied to production, permits, and a gold-price threshold. Closing is slated for Q1 2026. CEO Rob Krcmarov described the transaction as “an important milestone” as the company sharpens its focus on its “world-class silver portfolio.” (Business Wire)
Financing tied to the buyer also appeared on the tape. Franco-Nevada struck a $100 million gold-stream agreement with Orezone to back the Casa Berardi acquisition. Franco-Nevada CEO Paul Brink framed it as a boost to the company’s Canadian holdings, while Orezone CEO Patrick Downey called the deal “transformational.” (Mining)
Hecla revealed preliminary production figures for 2025 along with its outlook for 2026. Silver output in 2025 hit roughly 17.0 million ounces, with gold reaching 150,509 ounces. Looking ahead to 2026, the company projects silver production between 15.1 million and 16.5 million ounces, and gold between 134,000 and 146,000 ounces. It also announced a capital budget ranging from $255 million to $279 million for 2026, including a record $55 million earmarked for exploration and pre-development. (SEC)
Hecla outlined silver “all-in sustaining costs” between $15.00 and $16.25 per ounce, factoring in by-product credits—a standard mining measure covering ongoing operating expenses plus sustaining capital. The company also projected negative silver cash costs after credits, indicating that revenues from other metals should cover direct cash mining costs, even though sustaining costs remain higher. For 2026, Hecla assumed by-product credits with gold priced at $4,000 per ounce and silver at $50.00 per ounce. (Business Wire)
A regulatory filing revealed Hecla presented the numbers as preliminary, linking them to management’s investor day presentation in New York on Monday, with the slides included in the filing. (SEC)
Hecla’s decline led the pack on Tuesday, slipping more sharply than its listed rivals. Coeur Mining dropped roughly 3.5%, Pan American Silver dipped near 2.9%, and First Majestic Silver was down about 2.8% during morning trading.
That $593 million headline figure isn’t an instant payday. Stock payment, deferred sums, and royalties might come late—or come up short. Contingent payments hinge on permits, future production, and hitting a gold-price level that could stay out of reach. If metals prices slip, the sector usually swings hard the opposite way, and Hecla’s leverage works both for and against it.
Traders will be watching closely for updates on the timing and allocation of proceeds, as well as any tougher language around the Keno Hill ramp-up and spending discipline. Hecla is set to speak at TD Cowen’s 17th Annual Global Mining Conference on Jan. 29 at 3:00 p.m. ET in Toronto. (Hecla)
