NEW YORK, August 5, 2026, 3:05 p.m. EDT — U.S. trading session underway
- Hecla shares were up 8.3%, trading at $16.67 during afternoon trade.
- Free cash flow for the quarter was $135.8 million, representing a modest 5.5% decline from the prior quarter. Sales decreased by 18.9%.
- Hecla reported having $483 million in cash and was free of debt, not including leases, at the close of June.
Shares of Hecla Mining Company rose 8.3% on Wednesday as its second-quarter free cash flow remained close to a record, even though the company faced a significant fall in realized precious-metal prices.
The advance was not as concentrated as the headline increase indicates. Shares of Coeur Mining Inc. NYSE:CDE and Pan American Silver Corp. NASDAQ:PAAS both climbed around 7%. Spot silver rose 4.4%.
Hecla outperformed the two-stock peer average by roughly 1.3 percentage points. Compared to silver, its lead was close to four points.
| Wednesday market move | Price or level | Change |
|---|---|---|
| Hecla Mining NYSE:HL | $16.67 | up 8.3% |
| Coeur Mining NYSE:CDE | $17.36 | up 7.1% |
| Pan American Silver NASDAQ:PAAS | $48.01 | up 6.9% |
| Spot silver | $62.11 an ounce | up 4.4% |
Equity prices were shown with a delay until approximately 2:50 p.m. EDT. Reuters listed silver prices at 2:15 p.m. EDT.
Cash conversion provided the clearest indication unique to the company. Revenue dropped by 18.9% compared to the first quarter, while free cash flow declined just 5.5%. The portion of revenue it represented increased to 40.7% from 34.9%.
| Continuing operations | Q2 2026 | Q1 2026 | Q2 2025 | Q/Q change |
|---|---|---|---|---|
| Revenue | $333.9 mln | $411.4 mln | $219.0 mln | -18.9% |
| Adjusted EBITDA | $199.2 mln | $265.1 mln | $92.6 mln | -24.9% |
| Operating cash flow | $174.9 mln | $182.9 mln | $108.4 mln | -4.4% |
| Free cash flow | $135.8 mln | $143.7 mln | $65.7 mln | -5.5% |
| Free-cash-flow margin | 40.7% | 34.9% | 30.0% | +5.8 points |
Company data is unaudited. Adjusted EBITDA and free cash flow represent non-GAAP metrics. Percentage variations are based on reported figures.
Hecla reported free cash flow of $279.4 million for the first half. Doubling this number results in a straightforward 5.0% yield based on Hecla’s market capitalization. The figure is a run-rate estimate and does not represent official company guidance.
Hecla also reported changes to its balance sheet. The company paid off the last $263 million of its 7.25% senior notes. Its $225 million revolving credit facility continued to be undrawn, except for existing letters of credit.
Chief Executive Rob Krcmarov said, “We ended the quarter with the strongest balance sheet in the company’s history.” Business Wire
Most operating gains were attributed to Lucky Friday, which achieved a quarterly peak in silver output at 1.53 million ounces. Greens Creek continued as the site with the lowest costs.
| Mine | Q2 silver output | Q/Q change | Silver grade | AISC per ounce |
|---|---|---|---|---|
| Greens Creek | 2.05 mln oz | down 5.8% | 12.0 oz/ton | -$10.71 |
| Lucky Friday | 1.53 mln oz | up 23.9% | 15.6 oz/ton | $17.08 |
| Keno Hill | 0.63 mln oz | up 27.9% | 19.3 oz/ton | Not reported |
Keno Hill is still in the pre-commercial production phase and is not included in consolidated silver cost guidance.
Hecla reported that Lucky Friday saw a 31% rise in milled grade during the quarter. The company noted this higher grade was expected but is not anticipated to continue. Both Greens Creek and Lucky Friday posted site-level records for free cash flow.
The company adjusted its full-year silver guidance to a range of 15.1 million to 16.1 million ounces, lowering the previous high end of 16.5 million. Increased output outlooks for Greens Creek and Lucky Friday helped to partly counterbalance a reduction at Keno Hill.
The firm cut its consolidated AISC forecast to $12.50-$13.50 per ounce. It increased the minimum planned capital expenditure to $208 million, up from $204 million, while keeping the $223 million maximum unchanged.
Initial engineering at Greens Creek suggests another potential avenue for expansion. Hecla projects that a pyrite circuit may increase silver output by 1.0 million to 1.2 million ounces per year. These projections are preliminary and will depend on permits, technical studies and final authorization.
Wall Street sentiment has become more positive amid the pullback in shares. FactSet now records six buy ratings and five hold ratings. Three months prior, analysts had issued four buy ratings, five holds, and one sell.
| FactSet analyst recommendations | Three months ago | One month ago | Current |
|---|---|---|---|
| Buy | 4 | 5 | 6 |
| Hold | 5 | 5 | 5 |
| Sell | 1 | 0 | 0 |
| Consensus | Overweight | Overweight | Overweight |
The consensus target is $23.53, placing it roughly 41% higher than Wednesday’s late price. Analysts’ estimates span from $17 to $32.
Risks are still evident. Capital expenditures are expected to increase in the third quarter and maintain high levels into the fourth. Guidance for Keno Hill has been reduced, and silver’s 4.4% one-day swing highlights how rapidly sentiment in the sector can shift.
The following assessment focuses on cash conversion. Increased construction spending is expected to create more challenges in the second half. Hecla, with its debt-free balance sheet, has greater flexibility, though operational performance at the mine is set to play a more significant role.
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