NEW YORK, July 17, 2026, 15:08 EDT New York Stock Exchange Hecla Mining Co (HL) shares dropped as the price of silver continued to trade 32% below the company’s realized average price from the first quarter.
Hecla Mining Company NYSE:HL traded 0.5% lower at $14.45 as of 2:53 p.m. EDT, with core NYSE trading still active. The stock had dropped 6.1% on Thursday.
The shift on Friday was minor. The broader issue for investors is Hecla’s cost buffer in the first quarter.
Hecla’s average realized silver price in the first quarter was $82.70 per ounce, while spot silver was $56.09 by late morning, representing a 32.2% difference. Gold also experienced another squeeze, with spot gold at $4,017 and Hecla’s realized gold price at $4,899.
Hecla posted a non-GAAP all-in sustaining cost (AISC) of $8.17 per silver ounce. Deducting this figure from the realized silver price results in $74.53. If AISC remains unchanged at Friday’s spot price, the spread decreases to $47.92. This represents a reduction of 35.7%. The calculation serves as an example and is not company guidance.
| Per-ounce measure | Q1 2026 actual | July 17 reference | Change |
|---|---|---|---|
| Silver price | $82.70 achieved | $56.09 spot | -32.2% |
| Gold price | $4,899 achieved | $4,017 spot | -18.0% |
| Silver price less reported AISC | $74.53 | $47.92 | -35.7% |
The last row is an example estimate that maintains Q1 AISC at $8.17. Hecla’s stated AISC figures factor in by-product credits and do not include Keno Hill.
The present cushion may be overstated by that static calculation. Hecla reported that $13 million in increased by-product credits, primarily from Greens Creek, contributed to a reduced Q1 AISC. Gold is currently trading 18% below Hecla’s achieved rate. A decrease in by-product credits could push future AISC higher.
Keno Hill is not included in the AISC calculation. Output reached around 0.5 million silver ounces in Q1. Power constraints and ore with lower grades reduced production. Hecla anticipated better milled grades in the second quarter.
Trading volumes were high, with around 48.0 million shares traded as of 2:53 p.m., approximately 55% above the 30.97 million average on Google Finance.
By Friday afternoon, Hecla shares declined 8.7% from their July 10 close. Comex silver finished the week down 6.3%. The stock underperformed the metal by roughly 2.4 percentage points.
Hecla still performed better than three other silver companies on Friday. Coeur Mining NYSE:CDE dropped 3.0%. Pan American Silver NYSE:PAAS fell 0.9%, and First Majestic Silver NYSE:AG declined 0.8%.
Valuation increases sensitivity. Hecla was valued at around 35.3 times its trailing earnings, while Coeur traded at 11.6. Comparing price-to-earnings ratios across miners offers only a rough gauge. The premium continues to be significant.
The company begins the period with a solid financial position. Sales in the first quarter totaled $411 million. Non-GAAP free cash flow from ongoing operations hit a record $144 million. In April, Hecla redeemed $263 million in notes.
Chief Executive Rob Krcmarov said, “the strongest balance sheet in the Company’s recent history.” Hecla reported zero long-term debt and an undrawn revolver of $225 million. SEC
The following operational review focuses on grade delivery. Hecla previously anticipated increased Q2 milled grades at both Lucky Friday and Keno Hill. The company also planned for a capital investment increase during the warmer construction months.
Macro conditions continue to pose challenges. Chris Gaffney of EverBank attributed the decline in bullion prices to “a stronger U.S. dollar and higher global inflation fears.” Rising interest rates diminish the attractiveness of metals that do not yield interest. Reuters
Risks are still clustered. Further declines in silver or gold may put pressure on sales and by-product credits. Any new power or sequencing issues have the potential to postpone Keno Hill’s improvement in grades. A recovery in metals prices could help mitigate those risks.
Hecla’s cost buffer continues to be substantial. Friday’s metal prices suggest that extending the first-quarter gap may not be appropriate.
