NEW YORK, August 8, 2026, 16:12 EDT — Shares of Hecla Mining Company NYSE:HL climbed 19% after performance at its core mines helped counterbalance the effect of the Keno Hill site.
- Hecla ended Friday at $16.85, up 19.3% over the week.
- In the second quarter, 85.1% of silver came from Greens Creek and Lucky Friday.
- Upcoming U.S. inflation figures will put the recent surge in silver prices to the test.
The U.S. markets did not open on Saturday. Hecla closed 6.24% higher at $16.85 on Friday, up 19.3% compared to its close a week earlier.
The main takeaway this week was operational concentration. Greens Creek and Lucky Friday accounted for 85.1% of Hecla’s silver output in the second quarter. This figure overshadowed the contribution from Keno Hill.
The two mines produced $217.3 million in site-level free cash flow, while consolidated free cash flow reached $135.8 million. The numbers reflect company-specific metrics, each with its own scope.
| Mine | Silver output in Q2 | Portion of total | Free cash flow at site | 2026 guidance midpoint change |
|---|---|---|---|---|
| Greens Creek | 2.051 million oz | 48.7% | $129.7 million | +4.5% |
| Lucky Friday | 1.533 million oz | 36.4% | $87.6 million | +2.0% |
| Keno Hill | 0.625 million oz | 14.9% | $14.6 million | -21.3% |
Hecla’s disclosed figures are used to compute production shares and midpoint adjustments. Free cash flow at each site is a non-GAAP metric.
Keno Hill’s forecast declined by 21.3% at guidance midpoints. Greens Creek increased by 4.5%, and Lucky Friday advanced 2.0%. The overall midpoint dropped by just 1.3% to 15.6 million ounces.
Quarterly output increased even as realized prices softened and concentrate shipments were postponed. However, revenue dropped significantly from the previous quarter.
| Metric | Q2 2026 | Change from Q1 | Change from Q2 2025 |
|---|---|---|---|
| Revenue | $333.9 million | down 18.9% | up 52.4% |
| Adjusted EBITDA | $199.2 million | down 24.9% | up 115.2% |
| Operating cash flow | $174.9 million | down 4.4% | up 61.4% |
| Free cash flow | $135.8 million | down 5.5% | up 106.6% |
| Silver production | 4.209 million oz | up 7.8% | down 6.8% |
The percentages are based on the company’s reported figures for continuing operations. Adjusted EBITDA as well as free cash flow represent non-GAAP metrics.
Silver production rose 7.8% compared to the first quarter. Revenue fell 18.9%, with adjusted EBITDA down 24.9%. Cash generation was still significantly higher on a year-on-year basis.
Hecla ended June holding $483 million in cash. The company repaid the final $263 million in 7.25% senior notes. Apart from finance leases, Hecla held no debt and had a $225 million revolving credit facility fully available.
Chief Executive Rob Krcmarov said, “We ended the quarter with the strongest balance sheet in the company’s history.” Business Wire
Cash quality warrants further examination. Operating cash flow was boosted by a $63 million decline in receivables. Hecla anticipates higher capital investment in the second half.
The surge was not unique. Other silver mining companies rose between 16.6% and 20.6% over the week.
| Company | August 7 close | Friday change | Weekly change |
|---|---|---|---|
| Hecla Mining Company NYSE:HL | $16.85 | +6.24% | +19.33% |
| First Majestic Silver Corp. NYSE:AG | $18.40 | +6.48% | +20.58% |
| Pan American Silver Corp. NYSE:PAAS | $51.22 | +6.60% | +18.81% |
| Coeur Mining Inc. NYSE:CDE | $17.39 | +11.12% | +16.63% |
Weekly changes are based on closing values from July 31 and August 7. The data indicates that Hecla’s rerating was not entirely unique to the company.
Spot silver rose 3% on Friday, reaching $63.29 per ounce. U.S. payrolls posted a surprise drop of 23,000, contrasting with expectations for an 80,000 gain. Odds of a September rate hike in rate markets fell to 43.9% from 57%.
Recent analyst reports were broadly upbeat, though not in full agreement. Price targets set lately have spanned from $19 to $32.
| Date | Firm and analyst | Recommendation | Price target |
|---|---|---|---|
| August 6 | Canaccord Genuity Group (TSE:CF), Dalton Baretto | Buy restated | $19.00 |
| August 5 | CIBC (TSE:CM), Cosmos Chiu | Hold restated | $32.00 |
| August 5 | H.C. Wainwright, Heiko Ihle | Buy restated | $26.75 |
| August 5 | Scotiabank (TSE:BNS), Eric Winmill | Hold restated | $21.00 |
Among six market reports, analysts issued three Buy ratings and three Holds, with an average price target of $23.63, representing a roughly 40% premium to Friday’s closing price. An expanded survey of eight analysts assigned a consensus Hold rating, setting the average target price at $24.13.
Preliminary estimate: The planned Greens Creek pyrite circuit is projected to contribute between 1.0 million and 1.2 million silver ounces per year. Hecla aims to commence first output sometime between late 2027 and mid-2028. Permitting and final investment decisions are still pending.
July consumer price figures are due Wednesday at 08:30 EDT, with producer price data set for release Thursday at the same hour. Strong results may rekindle expectations of further rate hikes and weigh on silver.
Risks: Keno Hill is still not yet commercial, and ramp-up progress has decelerated. Increased investment during the second half may put pressure on free cash flow. Silver price swings and permit approval delays are still significant risks.
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