Earnings call analysis

Hecla Mining (HL) Q3 2026 Earnings Call: Key Takeaways

Hecla reported strong financial results, including record operating and free cash flow, driven by its core mining operations. The call focused on the company's robust balance sheet, the advancement of three low-capital-intensity organic growth projects, and the management of permitting constraints at the Keno Hill mine.

About Hecla Mining. Hecla Mining Company, along with its subsidiaries, engages in the exploration, acquisition, development, and extraction of both precious and base metal resources across the United States and internationally. The company produces concentrates of silver, gold, lead, and zinc, as well as carbon material and doré, both of which contain silver and gold.

Call date

Nov 4, 2026

Sentiment score

+35 Balanced

Management tone, -100 to +100

Sentiment change

vs Q2 2026 call

Sector

Materials, Metals and Mining

Next report

Feb 16, 2027

View calendar

Key takeaways

Hecla achieved record operating cash flow of $203 million and record free cash flow of $151 million.
The company ended the quarter with $692 million in cash and no long-term debt, representing the strongest balance sheet in its history.
Greens Creek produced 1.9 million ounces of silver, with revenue impacted by the timing of concentrate shipments.
Keno Hill produced a record 963,000 ounces of silver, but throughput will be suppressed in the fourth quarter to stay within permit limits.
Management is advancing three low-capital-intensity projects: the Greens Creek pyrite concentrate circuit, tailings reprocessing, and the Midas restart.
The company tightened its 2026 production guidance and improved its cost guidance for both cash costs and all-in sustaining costs.

Key financial results

Revenue from continuing operations was $334 million for the third quarter of 2026.Revenue from continuing operations was $334 million compared to the record $411 million we reported in the first quarter.
Income from continuing operations was $160 million, or $0.22 per share.Income from continuing operations was $160 million or $0.22 a share, up from $118 million or $0.18 a share in the second quarter.
Adjusted EBITDA from continuing operations was $211 million, representing a 6% increase over the second quarter.Adjusted EBITDA from continuing operations was $211 million. That's up 6% over the quarter and up more than 40% on a year ago.
Operating cash flow from continuing operations reached a record $203 million.Operating cash flow from continuing operations was a record $203 million.
Consolidated free cash flow was a record $151 million.Free cash flow was recut at $151 million, which is nearly true to what we generated in the third quarter last year.
The company ended the quarter with $692 million in cash and no long-term debt, excluding finance leases.We finished the quarter with almost $700 million in cash and no long-term debt up from finance leases.

Business segment results

Greens Creek: Greens Creek produced 1.9 million ounces of silver and nearly 12,000 ounces of gold.
Greens Creek: Greens Creek achieved a record free cash flow of $147 million.Greens Creek led the way with a site record of $147 million.
Lucky Friday: Lucky Friday produced nearly 1.3 million ounces of silver.
Lucky Friday: Lucky Friday generated $67 million in free cash flow.Free cash flow was $67 million.
Keno Hill: Keno Hill produced a record 963,000 ounces of silver.At Keno Hill produced a record 963,000 ounces of silver in the third quarter.
Keno Hill: Keno Hill free cash flow was negative $2 million due to capital investment and working capital outflows.Free cash flow was negative $2 million, reflecting continued capital investment in working capital outflows.

Capital allocation

The company established a new $500 million revolving credit facility, which remains undrawn.
Total liquidity is approximately $1.2 billion, including cash and the credit facility.
Management plans to discuss potential capital returns with the Board in the first half of 2027.I expect we're going to have a much more robust discussion at the Board in the first half of next year.

Industry trends and dynamics

Management remains positive on the outlook for silver and gold prices.I remain very confident in the outlook for silver and gold prices.
Competition for labor in the mining sector is a factor, with labor representing approximately 50% of costs.We do see about 50% of our cost comes from labor.

Competitive landscape

Hecla emphasizes its position as a pure-play silver producer with long mine lives.We're kind of unique in our space in that we have more silver exposure than the majority of our peers.
The company focuses on operating in safe jurisdictions, specifically the United States and Canada.

Macroeconomic environment

The call did not provide a detailed discussion on the broader macroeconomic environment, focusing instead on operational and company-specific factors.

Growth opportunities and strategies

Greens Creek: The Greens Creek pyrite concentrate circuit is in the scoping phase and could add 1 million to 1.2 million ounces of silver annually.
Greens Creek: The company is evaluating three pathways for dry stack tailings, including third-party processing, direct sale, and self-processing.We're evaluating the potential of three pathways forward with this.
Midas: The Midas Restart Project is being evaluated using a hub-and-spoke model to utilize existing infrastructure.

Financial guidance and outlook

The company raised the bottom end of its consolidated silver production range.We raised the bottom end of our consolidated silver production range.
Guidance for silver cash costs and all-in sustaining costs was improved.
Capital investment guidance was lowered.We lowered our capital investment guidance.
Greens Creek: Greens Creek production guidance is maintained at 8 million to 8.3 million ounces of silver and 51,000 to 55,000 ounces of gold.
Lucky Friday: Lucky Friday silver production guidance was tightened by raising the low end to 5.2 million ounces.

Keno Hill Operational Constraints

Operations are constrained by permitting limits on tailings capacity, waste rock, and water treatment.
Throughput is being suppressed to 300 tonnes per day in the fourth quarter, with further reductions planned for 2027.
The company expects to reach full potential at Keno Hill around mid-2029 once permitting and infrastructure work is complete.

Q3 2026 results

Metric	Result	Change
Revenue	$334 million	Lower than the $411 million reported in the first quarter
Income from continuing operations	$160 million	Up from $118 million in the second quarter
Adjusted EBITDA	$211 million	Up 6% over the quarter and up more than 40% on a year ago
Operating cash flow	$203 million	Up 16% from the prior quarter
Silver production	4.2 million ounces	Within 1% of the second quarter

How management sounded

Balanced (+35 on our -100 to +100 scale). Management emphasized the strongest balance sheet in company history and a clear path for organic growth, while transparently addressing permitting and throughput constraints at Keno Hill. Management sounded more upbeat than on 20% of the 302 calls we cover; most companies sound positive on their own calls, so the comparison says more than the label.

Read the analyst Q&A summary and guidance and outlook for this call.

What to watch before the next call

Permitting progress at Keno Hill, specifically the project proposal filing by year-end.
Metallurgical results from the Greens Creek tailings Phase 3 testing.
The outcome of the 5,500 dry metric ton test parcel shipment of low-grade feedstock from Greens Creek.

Earlier calls

Q2 2026 (Aug 5, 2026), tone Balanced: Hecla Mining reported $136 million in free cash flow and record site-level performance at Greens Creek and Lucky Friday. The company maintains a strong balance sheet with $483 million in cash and no long-term debt, while advancing the Greens Creek pyrite concentrate project.

Frequently asked questions

Did Hecla beat earnings in Q3 2026?

The company reported income from continuing operations of $160 million or $0.22 per share, up from $118 million or $0.18 per share in the second quarter.

What is the status of Keno Hill?

Keno Hill produced a record 963,000 ounces of silver in Q3, but throughput will be reduced to 300 tonnes per day in Q4 to remain within permit limits for tailings and water.

What is Hecla's liquidity position?

Hecla ended the quarter with $692 million in cash and a new $500 million undrawn revolving credit facility, providing total liquidity of approximately $1.2 billion.

Sources and method

Dombey's summary of the Hecla Mining Q3 2026 earnings call held Nov 4, 2026, written from the call itself. Every figure on this page was checked against what was said on the call, and quoted lines are management's own words; we do not add estimates or prices. The tone score is our read of management's wording, guidance and answers. Check figures against the company's SEC filings before acting. This is research, not investment advice.

Updated Nov 9, 2026. All earnings call analyses

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