Hecla Mining Q2 Earnings Call Highlights

Hecla Mining NYSE: HL reported second-quarter results marked by strong cash generation, record site-level free cash flow at Greens Creek and Lucky Friday, and a balance sheet that President and Chief Executive Officer Rob Krcmarov called the strongest in the company’s history.

Revenue from continuing operations totaled $334 million in the second quarter, down from a record $411 million in the first quarter. Krcmarov attributed the sequential decline to lower metal prices and shipment timing, particularly at the Greens Creek mine. A meaningful amount of silver concentrate produced at Greens Creek had not been sold by quarter-end, though it shipped in early August and is expected to be reflected in third-quarter results.

Net income from continuing operations was $118 million, or $0.18 per share, while adjusted EBITDA reached $199 million, more than double the $94 million reported a year earlier. Operating cash flow was $175 million and free cash flow was $136 million, near the company’s quarterly record of $144 million in the first quarter.

All three operating mines generated free cash flow during the quarter. Greens Creek produced site-level free cash flow of $130 million, while Lucky Friday generated a site record of $88 million. Keno Hill contributed nearly $15 million of free cash flow, its fifth consecutive quarter of positive free cash flow.

Hecla ended the quarter with $483 million in cash, no long-term debt other than capital leases, and an essentially undrawn $225 million revolving credit facility, including a $75 million accordion feature. Chief Financial Officer Russell Lawlar said the company moved from net debt of nearly $270 million a year earlier to a net cash position of roughly $472 million. Lawlar also said the company’s high-grade underground operations have relatively low diesel intensity and that its principal power supply comes from local utilities, primarily renewable hydropower. Fuel represented about 3% of Hecla’s consolidated cost structure during the quarter, according to Lawlar.

Under its 2026 price-sensitivity scenarios, Hecla projected approximately $500 million in full-year consolidated free cash flow at $50 per ounce silver and $3,500 per ounce gold. The company said potential annual free cash flow could approach $700 million at $75 silver and $4,500 gold, and nearly $800 million at $100 silver and $5,500 gold.

Consolidated silver production totaled 4.2 million ounces, up 8% from the first quarter. Lucky Friday produced a quarterly record of 1.5 million ounces, dri...