HL

Image source: The Motley Fool. Wednesday, Aug. 5, 2026 at 10:00 a.m. ET President and Chief Executive Officer - Robert Krcmarov Senior Vice President and Chief Financial Officer - Russell Lawlar Senior Vice President and Chief Operations Officer - Carlos Aguiar Vice President of Operations - Brian Erickson Vice President of Exploration - Kurt Allen Vice President of Strategy and Investor Relations - Michael Parkin Operator: Hello, everyone. Thank you for joining us, and welcome to the Q2 2026 Hecla Mining Company Earnings Conference Call. [Operator Instructions] I will now hand the conference over to Mike Parkin, Vice President of Strategy and Investor Relations. Mike, please go ahead. Michael Parkin: Thanks, Hilary. Good morning, and thank you all for joining us for Hecla's second quarter 2026 results conference call. I'm Mike Parkin, Vice President of Strategy and Investor Relations. Our earnings release that was issued yesterday along with today's presentation are available on our website. On the call with us today is Rob Krcmarov, President and Chief Executive Officer; Russell Lawlar, Senior Vice President and Chief Financial Officer; Carlos Aguiar, Senior Vice President and Chief Operations Officer; Brian Erickson, Vice President of Operations; Kurt Allen, Vice President of Exploration, along with other members of our management team. At the conclusion of our prepared remarks, we will be able -- we will be available for -- to answer any questions you might have. Turning to Slide 2. Any forward-looking statements made today by the management team come under the Private Securities Litigation Reform Act and involve risks as shown on this slide in our earnings release and in our 10-Q filing with the SEC. These and other risks could cause results to differ from those projected in the forward-looking statements. Non-GAAP measures cited in this call and related slides are reconciled in the slides or news release. Please note, as we discuss the financial figures and projections throughout this presentation and in the earnings release, we are referring to our continuing operations. I will now pass the call over to Rob. Robert Krcmarov: Thank you, Mike, and good morning, everyone. Turning to Slide 3. Hecla ended the third (sic) [ second ] quarter of 2026 from a position of real strength. And I'm speaking to the financial strength, a position today that marks the strongest balance sheet in the company's very long history. And the attributes shown on this slide that define us as North America's premier silver producers, they haven't changed. What has changed, though, is that we have confidence with which we can now invest in what comes next. So I'm eager to have our teams discuss some remarkable developments that are coming out of our substantial project pipeline, which further solidifies our market positioning. More on that in a minute. Turning to Slide 4. This was another very strong quarter for Hecla, even though a couple of headline numbers moved in a different direction than last quarter. And I want to spend a moment walking through why because I think the underlying story here is a good one. Revenue from continuing operations was $334 million compared to the record $411 million we reported in the first quarter. Two things are driving that change, and it's worth being clear about both because neither of them is a production problem. First, metal prices pulled back from the highs we saw early in the year. although I do remain confident in the outlook for silver and gold prices. And second, part of the gap was simply timing. A meaningful amount of silver concentrate mostly at Greens Creek was produced but not yet sold as of quarter end. Had that concentrate shipped within the quarter, revenue would have been noticeably higher on top of an already strong quarter. That inventory shipped in early August, and you're going to see it show up in our third quarter results. Those of you who have followed us for some time know the lumpy sales pattern at Greens Creek. The adjusted EBITDA from continuing operations was $199 million, more than double the $94 million we generated a year ago. Operating cash flow was $175 million and free cash flow was $136 million. Our second best quarter on record and very close to the record $144 million we posted last quarter. Every single one of our mines generated free cash flow again this quarter. with Greens Creek and Lucky Friday each setting new site level quarterly free cash flow records at $130 million and $88 million, respectively. Our balance sheet is simply the best it's been in our long history. We ended the quarter with $483 million in cash, no long-term debt outside of capital leases and an essentially fully undrawn $225 million revolving credit facility with a $75 million accordion. The balance sheet, this strong gives us real optionality, the flexibility to keep investing in the projects and the assets that make the most sense for this business on our own time line rather than being dictated to by our balance sheet. On the operating side, we produced 4.2 million ounces of silver up 8% from the prior quarter. And Lucky Friday delivered new quarterly production record of 1.5 million ounces of silver. And I'm especially pleased with our safety performance. Our consolidated total recordable injury frequency rate or TRIFR for short, improved to 1.57, and that's a meaningful improvement from the 2.07 reported for the first quarter. That's the kind of improvement that reflects real deliberate commitment by our teams. And frankly, it matters more to me than any financial metric on this slide. We also conducted our annual Safety Day in early June with senior leadership visiting every site to reinforce safe working practices. Turning to Slide 5. Our medium-term pathway to 20-plus million ounce silver producer is advancing, and it's anchored by the Keno Hill ramp-up and a potential Midas restart with further potential upside from Keno Hill expansion and from Aurora and Hollister in later years. And nearer term, we've got 2 organic opportunities at Greens Creek that I'm really excited to give you more detail on today. Both are the kind of high return, low capital intensity projects that we look for. Our bar for any of these organic investments is a return on invested capital that clears our cost of capital by a healthy margin and early work on both suggest that they can. I'll turn it over to Brian now to walk you through those. Brian, over to you. Brian Erickson: Thanks, Rob. Good morning, everyone. Turning to Slide 6. I'll start with the Greens Creek pyrite concentrate circuit. It's a project we're going to share considerably more detail about today. To summarize, we're advancing engineering and metallurgical studies on a new processing circuit at the Greens Creek mill. But if the studies pan out, we would produce marketable pyrite concentrate stream from mill tailings that currently goes to the dry stack tailings facility. Still pretty early stage work, but I want to be clear about our conviction. Relative simplicity of the project, combined with the potential returns we're seeing at this stage of the study give us confidence that this moves towards execution, not an evaluation for its own sake. Once fully ramped up, we expect the new circuit could add approximately 1 million to 1.2 million ounces of silver and 10,000 to 15,000 ounces of gold in additional annual production. This is on top of Greens Creek's existing output while also reducing the volume we're adding to the tailings facility. Early engineering and medical -- sorry, metallurgical work points to the potential robust return on capital that would meet our investment thresholds. It's expected to be a low capital intensity project with CapEx currently estimated at about $40 million to $60 million anticipated mostly for mill components, storage building, sizing upgrades and some ship loader work to support the additional tonnage. Additional operating costs throughout the new circuit are also expected to be relatively low in terms of the overall increase to our annual spend and are currently estimated at an incremental $10 million to $15 million per annum. When you put all this together, you can see the potential for impressive NPV upside at current metals prices. Currently, we're targeting first quarter or first production between the fourth quarter of 2027 and the first half of 2028 with the ramp-up period of roughly a year. We'll continue to firm up the economics as engineering advances, and we'll keep you updated. I want to stress, these numbers are subject to change as we advance through more engineering studies but we're very excited about the potential for this project in terms of production, but more importantly, in potential future cash flows. Second, I'll discuss the Greens Creek tailings reprocessing project. This remains one of the more compelling opportunities in the portfolio, the dry stack tailings facility [indiscernible] over 600,000 ounces of gold [indiscernible]. At June 30, 2026, metals prices, this represents an in situ value of roughly $6.1 billion, I must emphasize is supporting recovery processing capital cost. We're working with a vendor who specializes in new technology and set to commence Phase 3 metallurgical test work this month, which we expect to complete in the quarter. That work together with confirming a suitable processing facility is expected to determine how we move forward. And as with pyrite concentrate potential to reduce Greens Creek reclamation liability potentially meaningful added benefit to the potential cash flows it could generate. If this project proves viable, we would expect it to be an additional low-cost intensity project that dovetails well with the pyrite concentrate project. Finally, the Midas restart project in Nevada also continues to advance. We're continuing to evaluate the hub and spoke model that would bring ore from Midas and potentially Hollister or other regional sources through the existing permitted mill. We're also evaluating remaining mineralization in the old mine under the existing mill as a potential additional resource. Kurt will touch on the latest Midas exploration results in a few minutes. I'll now turn the call over to Carlos for an operations review. Carlos Aguiar: Thank you, Brian. Turning to Slide 8. Greens Creek produced 2.1 million ounces of silver and over 14,000 ounces of gold in the second quarter, in line with our expectations. Cost applicable to sales were $50 million, with cash costs of negative $17.11 per ounce, and AISC of negative $10.71 per ounce, both after byproduct credits. Exceptional results this quarter driven by very strong byproduct revenue. Cash flow from operations was $139 million, and free cash flow was a new site level record of $130 million. As Rob mentioned it, a portion of the concentrate produced this quarter hadn't yet been sold at the end of the last quarter, which is what drove the gap between our strong production and the revenue we recognized. That inventory was shipped in early August and will be reflected in the third quarter financials. For the full year, we now expect Greens Creek to produce 8 million to 8.3 million ounces of silver, an improvement over prior guidance and 51,000 to 55,000 ounces of gold of cost applicable to sales of $240 million, with cash costs of negative $12.50 to negative $12 per ounce and AISC of negative $4.25 to negative $3.75 per ounce, both after byproduct credits involved an improvement to prior guidance. Turning to Slide 9. Lucky Friday had an outstanding quarter, producing a record 1.5 million ounces of silver on higher mill grade. Cost applicable to sales were $35 million with cash costs of $3.95 per ounce and AISC of $17.8 per ounce, both after byproduct credits. Cash flow from operation was $104 million, and free cash flow was a new site level record of $88 million. The Surface Cooling project is on track for completion by September. For the full year, we have tightened out our silver production guidance to 4.9 million to 5.2 million ounces with cost applicable to sales of $140 million. Cash costs are now expected to be lower at $9 to $9.75 per ounce, and AISC expected to be modestly higher at $20.50 to $26 per ounce reflecting higher planned sustaining capital investment. Turning to Slide 10. At Keno Hill, we produced 625,000 ounces of silver in the second quarter, up from 0.5 million ounces in the first quarter. Cash flow from operation was $18 million and free cash flow was nearly $15 million, the fifth consecutive quarter of positive free cash flow at Keno. We are taking a deliberate approach at Keno Hill. Rather than push for tonnage growth ahead of the site development and permitting work that needs to happen first, we are running the mine at a sustained lower rate while we focus our efforts there and continue to generate positive free cash flow, work that we believe supports a ramp to meaningfully higher tonnage rate in later years. Our updated full year guidance is 2.2 million to 2.6 million ounces of silver reflecting our focus on permitting and site build-out in the nearer term. I do want to highlight some good news on the permitting front. We received the permit to expand our tailings storage facility at Keno Hill this quarter. That approval reflecting strong working relationships we have built with both the Yukon government and our First Nation partners the NND. And it's an important piece of the foundation supporting our longer-term plans for the site. I now turn the call over to Russell for the finance update. Russell Lawlar: Thank you, Carlos. Turning to Slide 12, let me... Robert Krcmarov: Sorry, Russell, if I could just -- Russell, if I could just jump in. I'm aware that Brian dropped out. He's been dialing in from Yukon. So I just want to repeat a part that might be important that was missed. At the time, Brian was talking about the 51 million ounces of silver and the 600,000 ounces of gold and the many other metals that are locked in. I just want to point out that we are working with a vendor who specializes in this technology. And they are set to commence Phase 3 metallurgical test work this month, which we expect to complete in the quarter. So that worked together with confirming a suitable processing facility is expected to determine how we move forward. So I just wanted to complete the record on that because I'm aware that it was lost in transmission. So over to you, Russell. Thanks. Russell Lawlar: Thanks, Rob. I'm going to start on Slide 12. As Mike noted, everything I'll cover here reflects the results from our continuing operations. Mine revenue during the quarter was $323 million, with silver accounting for 68% of that total while gold was 14% and the remaining from our base metal byproducts. Net income from continuing operations was $118 million or $0.18 per share and adjusted EBITDA was $199 million. Our margins remain exceptional. We realized 90% of the realized silver price as margin during the quarter. Consolidated free cash flow was $136 million, nearly matching last quarter's record of $144 million with all 3 mines contributing. Turning to the balance sheet. We ended the quarter with $483 million in cash, no long-term debt outstanding outside of capital leases and essentially a fully undrawn credit facility. We've moved from a net debt position of nearly $270 million a year ago to a net cash position of roughly $472 million today, the strongest balance sheet in Hecla's history. Turning to Slide 13. We've all watched oil prices and fuel prices climb on the back of current world events, and I want to spend a moment on why this is far less impactful for Hecla than it is much of our peer group. The starting point is the nature of our ore bodies. Our mines are high-grade underground mines. Because of the greatest high, we process far fewer tonnes to produce each ounce. We don't run large diesel haul truck fleets that define low-grade open pit operations so our diesel consumption per ounce is structurally low. That is the primary reason fuel is only about 3% of our consolidated cost structure this quarter. It's a function of these operations. The second piece is where our electricity comes from. Power is our largest energy input and we source it from local utilities primarily from renewable hydro power. Hydro power isn't priced off crude oil or natural gas, so when fuel market spike on geopolitical shocks, the cost of that energy actually runs our mines and mills don't move with them. Put those 2 things together, high-grade ore that keeps our fuel intensity low and a power base anchored in hydro that is decoupled from volatile fuel markets and you get a cost structure that is far more predictable and far more insulated from energy price swings than most of our peers can claim. In an environment of rising and uncertain fuel prices, that translates directly into more resilient margins and it carries the added benefit of a lower carbon footprint for the metals we produce. As we turn to Slide 14, you'll see this slide has been updated for our Q2 results and outlook changes and projects our 2026 after-tax free cash flow across a range of metal prices. A $50 silver and $3,500 gold, we project about $500 million of consolidated free cash flow for the full year, with these prices below current spot prices. At elevated prices of $75 silver and $4,500 gold above current prices, we see the potential to generate nearly $700 million in free cash flow. At the top end of the range, we're showing today $100 per ounce silver and $5,500 gold. We see the potential to generate nearly $800 million of annual free cash flow. That's obviously a bullish scenario, but it shows the kind of operating leverage our platform has across a wide range of prices. This shows how our business has the ability to produce substantial cash flow across a wide range of price environments. I'll now pass the call to Kurt to go through exploration. Kurt Allen: Thank you, Russell. Turning to Slide 16. Our 2026 exploration and predevelopment budget of $55 million remains at an all-time record for the company, representing about 4.5% of projected revenue. We've structured that across 3 priority areas: $24 million at our near mine programs, which carry the lowest risk and highest return in our targeting -- adding 1 to 2 years' worth of resources for conversion to reserves. $16 million in Nevada across Midas, Aurora and Hollister, targeting a resource of 0.5 million to 1.5 million ounces of gold equivalent aimed at forming the basis for a potential Midas restart. And $10 million in early stage and generative exploration. I'm pleased to share some exciting results from our recent exploration release, which came out last week on the 29th of July and is available on our website. Turning to Slide 17. At Keno Hill, we've extended a high-grade silver trend to 800 feet of strike length, and it remains open in both directions. The extension brings us closer to the historic Hector Calumet mine which produced over 96 million ounces of silver during its operating life. You can see the old working is on the right side of this image. Recent exploration highlights include 10.2 feet at 62.7 ounce per ton silver or nearly 2 kilograms per metric ton, 10.1 feet at 44.6 ounce per ton silver and 8 feet at 22.4 ounce per ton silver. These exceptional results support our long-term vision for Keno Hill as an asset with the potential for generating -- for generational mining. We are following up on these results and are planning to have a further update later this year. Turning to Slide 18. In Nevada, our drilling around the Pogo-Sinter gap at Midas has identified 2 new Midas style high-grade gold silver veins and the system remains open. This adds to the picture Brian described earlier around the broader Midas hub-and-spoke opportunity. The new veins discovered are very similar in style to what was mined very successfully previously at Midas. Beyond these results, I want to flag the 2 additional exploration programs are ramping up this quarter. Drilling at Hollister has been underway for several weeks. And at Aurora, my favorite project, we're on track to begin drilling in mid-August. Aurora is a past producer of extremely high-grade mineralization with historic results grading above 2-ounce per ton gold, which is equivalent to more than 60 grams per tonne. Like Midas, it has a permitted mill at the site. There would be investment needed to make this a viable operating site again. But we'll focus on that with -- depending on what the drill bit tells us before we get there. This could provide -- this could prove to be a major value surfacing opportunity for the company, and I really look forward to the results from the initial holes, which we could have this fall. So stay tuned. I'll now turn the call back to Rob for closing remarks. Robert Krcmarov: Thank you, Kurt. So turning to Slide 19. Let me leave you with a few thoughts before we open the line for questions. This was a quarter of continued strong financial results, building on a track record that has helped us delever and move into a position of real financial strength, the kind that lets us keep investing in our robust project pipeline for years to come and surface value for our shareholders. The underlying business has never been stronger. We're making disciplined investments in our asset base to set it up for continued success. Our safety performance improved meaningfully this quarter. And as I said at the top of the call, our balance sheet is without question, the strongest it's been in this company's history. We believe in a robust precious metals market, and we think silver has a very bright future. At today's prices, we're already generating substantial free cash flow. And as Russell just said at the top end of the price scenarios we showed you today, this platform can generate nearly $800 million in annual free cash flow. So that's the kind of operating leverage we have now, and we're working hard to capture it for our shareholders. I really do hope that you share the enthusiasm that we have through our project pipeline and the excitement it's bringing advances and we believe Hecla remains the most compelling way to gain exposure to silver in this sector, and we look forward to continuing to execute and to keeping you updated throughout the year. I will now ask the operator to open the line for questions. Operator: [Operator Instructions] Your first question comes from the line of Heiko Ihle from H.C. Wainwright. Heiko Ihle: Congratulations on a good quarter. Obviously, metal prices have gone down a little bit. I mean I assume there is some sort of bonus structure for staff by asset related to metal pricing. I just want to see, is there any way for us to extrapolate this into a cost per ounce or cost per tonne by a dollar change in the underlying silver price? Or how do you guys model this out? Robert Krcmarov: I'll hand that one over to Russell. Russell Lawlar: Yes. Yes. No problem, Heiko. I would say the most direct tied to silver price is the profit share at Lucky Friday. And if you go back late last year, you'll see as we guided, we had our prices in lower prices because the guidance obviously came out lower in the year as prices went up, you saw our prices escalate. This year, we intentionally built higher prices when we came into January, February, we were at high price -- high silver prices. And so we intentionally built high prices into that profit share. As the year has come down, we have seen that cost abate. And so in the guidance that we've issued now, we've used robust prices, but not, say, the $90 silver that we used at the beginning of the year. I'm thinking -- trying to figure out a way to convey directly how much that would be per ounce. And frankly, I would have to kind of get back to you on that. I don't have a direct number for you right now. But I think it's generally isolated to Lucky Friday, and you can see it as you look at the cost performance of Lucky Friday over the past kind of year or so. Heiko Ihle: Yes. I think if you guys come up with some sort of -- I don't want to say formula, but yes, almost like a formula for the analyst community. I think that might be quite helpful. Completely -- question. Yes, of course, longer-term capital investment, any color on what we should model for longer-term capital? And maybe you can't really answer that question, but I'll try it differently. If you can, are there any large-scale investments at any of the other assets coming on in 2027 and 2028 that may not be obvious for us. Russell Lawlar: I can continue... Robert Krcmarov: Thanks for the question. Russell Lawlar: Go ahead, Rob. Robert Krcmarov: Okay. Go ahead, Russell. Okay. In terms -- Sorry, this is awkward because we're in separate offices. I'll just start, Russell, maybe you can fill in the gaps, if you don't mind? In terms of CapEx, we don't really have any huge expansions going on in the near future. What we do have is the Nevada restart, we estimate that's going to be pretty low CapEx given that we already own the mill. The CapEx for the pyrite concentrate project, that's really quite low, particularly in the context of the phenomenal returns that it's expected to generate. The cooling project at Lucky Friday, that's almost finished. And so I would say nothing really major coming up. Anything to add, Russell? Russell Lawlar: The only thing I'll add to that Rob is we're building -- yes. Yes, a little bit to add to that. The only thing that I'll add is that we're building tails at Greens Creek, Lucky Friday over the next couple of years. And then Keno Hill, there's tailings that we'll be building in the near term and then kind of more intermediate term, but also Keno Hill will continue to invest in the infrastructure to bring that mine production up. Heiko Ihle: Cool. Thank you both, and I'll get back in queue. And again, good quarter. I appreciate it. Operator: Your next question comes from the line of Cosmos Chiu from CIBC. Cosmos Chiu: Thanks, Rob and team. And congrats on hitting asset level record free cash flows at Greens Creek and Lucky Friday. But I guess my question is, I'm looking at the asset level. And as Russell mentioned, $130 million from Greens Creek, $88 million from Lucky Friday and additional 14-ish from Keno Hill. But I cannot seem to reconcile that down to your corporate level free cash flow of $136 million. So when compared to, say, Q1 last quarter, Greens Creek was actually lower, Lucky Friday was actually lower as well, but the corporate level was higher. So I guess if you can help me reconcile how I can come up with corporate level and then that will help me in terms of trying to figure out how to better utilize or best utilize the asset level free cash flow numbers. Russell Lawlar: I can jump in on that one, Rob. Yes, I was looking at this as well. So it's a good question, Cosmos. If you think about our -- the way we think about our mine site free cash flow, we actually look at the -- looking at Page 3 of our earnings release, where we reconcile free cash flow to cash flow from the operations. And what we do for mine site is we actually add back the exploration expense that was incurred at that site because exploration expense is an expense that we allocate from a corporate perspective, and it's not really related to the core of the operation in the current period. And so as you think about free cash flow at the corporate level in Q1 versus Q2, what you'll see is the exploration expense did go up Q1 over Q2, and that is included in our corporate consolidated free cash flow number. That's one. And then the other is just corporate expenses that are not included in those Q1 corporate cash and cash outflows, I'll say, that it's not included in Q1. So it's essentially timing. It's working capital timing. Cosmos Chiu: Okay. Okay. Maybe switching gears a little bit here in terms of Keno Hill. As you mentioned, Q2 production was about 600,000 silver ounces and as you mentioned in the MD&A, you're working through a lower grade zone. I guess my question is, looking at your revised guidance for the year, 2.2 million to 2.6 million, midpoint is about 2.4 million. So that's about 600,000 ounces annualized times 4. So I'm just trying to figure it out. You're working through a lower grade portion in Q2. If you're getting out of it, I would have thought that guidance, at least the midpoint could be higher than what's annualized for Q2. That's number one. And I guess, number 2 is the 600,000 ounces like a sustainable level? Is that what we're looking at? Again, I'm just trying to wrap my head around it. Carlos Aguiar: Well, we are projecting the third quarter being a really similar -- yes. Rob, go ahead. Robert Krcmarov: No, no, go ahead, please, Carlos. Carlos Aguiar: Okay. We are projecting to be the third quarter really similar to the second quarter. Definitely, we are in the new zones, we are in development of the new zones at Keno Hill. And that the projection that we can report today, it's going to be really similar to the second quarter for the remainder of the year. Cosmos Chiu: I guess my question is... Robert Krcmarov: Yes. As Carlos said, look at Q3 looking very similar to Q2. The key point is that we expect to meet our revised guidance at the end of this year. And so what happens in between, we just don't have that level of detail disclosed yet. Go ahead, please expand on your question. Cosmos Chiu: Yes. No, I'm just trying to wrap my head around the sustainable rate, but I think you've answered my question in terms of the new guidance, Rob. And then I guess my other question on Keno Hill is with the lower guidance for the year, does that impact potential timing of commercial production or does it really matter. Robert Krcmarov: So we've outlined our 5 criteria for commercial production. We've only met one, which is the silver recoveries. What we're focused on right now is getting the permits that we need and investing in the infrastructure and working our way through that. I would say that if we can receive those permits, the critical ones by mid-2029 and we can execute on the key infrastructure projects over the next 2 or 3 years and the tailings expansion could be advanced far enough in 2029 to permit the mill to resume normal production levels. We expect to begin ramping up to higher production levels by the end of roughly 2029. So this is a ramp-up that's been taking a little bit longer than what was initially thought. But we understand what permits we need. We understand the infrastructure that we need to invest in, and we're working to resolve the permits and complete those investments. We are buoyed by the fact that the exploration results that Kurt talked about, you saw the 96 million ounces adjacent at the Hector Calumet. You can see the expansion as we've continued to get high-grade extensions to boom deep. As Kurt said, this is a generational mine that's going to be hopefully in production for a very, very long time, and we just need to get it through this permitting and an investment phase. And it is free cash flow positive today and it has been for the last several quarters. Cosmos Chiu: That's great to hear. And maybe one last question. Rob, sounds great in terms of the different growth projects that you have in the pipeline. I want to focus on the pyrite concentrate circuit, I guess, as you've mentioned, 1 million to 1.2 million ounces of silver per year 10,000 to 15,000 ounces of gold per year. Is that before or after sort of payability? And if it's before, what's the market like for your particular type of pyrite concentrate and is it fairly clean? If I want to just model out what this could mean in terms of value because you've given me the other parameters, $40 million to $50 million CapEx, if I had it correct, you gave me some operating numbers as well, but I'm just trying to figure out the production numbers. Robert Krcmarov: Well, the quality is very high. In fact, we've had extremely high demand from multiple inquiries, I guess. I'll hand it over to Russell, and maybe he can give you a little bit more color on that. Russell Lawlar: Thanks, Rob. As we think about the pyrite concentrate, one thing I do want to point out is you -- I think Brian laid it out well, unfortunately, he kind of -- his line was interrupted a little bit during that. And I think Rob came in and kind of cleared some of that up. But we're still working on this project. It's incredibly, I'll say, perspective. We're very high on it. We think it's going to be a very good project. But we're still working on some of the engineering, and we're still nailing down some of the costs. So what I don't want to do is put out a return on invested capital number now while we're still in those stages while we're putting those numbers together. What I would say is that we have a return on capital criteria, which we presented at our Investor Day earlier this year of 12% to 15% on return on invested capital. This project, we would expect would exceed that substantially. And if you go back and you look, and I think it's in our earnings release or our Q or maybe both, we expect that we would get roughly maybe 1 million ounces of silver a year from this project. Yes, that would increase our recoveries. And we would reduce the amount that goes to the tails, which is also cost savings. And the investment will be relatively modest, along with from a capital perspective. And the fact is we're already producing 3 concentrates at this mine. So as a result, the operating costs, we don't expect would go up substantially either. And so from a return on expected capital, we just -- we think it's going to be very, very robust. Does that [indiscernible] for you? Cosmos Chiu: Yes. But I guess going back to my first question, the 1 million to 1.2 million ounces that you outlined, that's before payability factors, right? So if I want to guesstimate some kind of model on my own, I would have to kind of, again, I can do it on my own guesstimate some kind of payability factor to apply to the 1 million to 1.2 million ounces? Russell Lawlar: I would say -- yes. I mean go ahead and apply payability because, again, like I said, kind of on the front end of this, we're still working through that in some of these details. Operator: Your next question comes from the line of Josh Wolfson from RBC Capital Markets. Joshua Wolfson: Just looking at Lucky Friday and the great performance. I think the company had noted this was in the plan. I'm wondering what was sort of the driver of these high grades. And I guess the commentary that it was not expected to be sustained just going -- looking at the outlook for the second half of the year. Robert Krcmarov: I'll hand it over to Carlos in a minute. But basically, Josh, this was scheduled high grade. It's just a matter of timing. We just went through a high-grade zone this quarter. And again, we don't expect to maintain those high grades. It will probably revert back to the main. Carlos Aguiar: Yes, Yes, it's correct, it was part of the timing, even we were expecting to have a fraction of that high grade at the end of the second quarter. And so at the end of the first quarter -- sorry -- so we had the most significant portion of the high grade in the second quarter and then that was the reason, right, which was planned. And of course, we are not expecting to see that kind of level for the remainder of the year, but definitely it was planned. It was just a matter of timing. Joshua Wolfson: Okay. And then just looking at the cooling project in September, is there anything we should be thinking about in terms of what that means for a tie-in, if that will impact productivity or throughput? And then similarly, once the project is completed, how should we be thinking about the outlook for the mine? Robert Krcmarov: Well, this project was really designed to -- go ahead. Unknown Executive: Keep going Rob. Robert Krcmarov: Okay. This project was really primarily designed to set up the long-term future as we get into deeper levels and set ourselves up. We already have a long reserve life ahead of us. It's very difficult to quantify productivity improvements, but it just stands to reason that when you're working in a fairly hot mine, you're going to be less productive when the conditions are not great compared to when the workers are comfortable. I can't really quantify that, but you just know inherently that logically, it makes sense that there should be better productivity. Joshua Wolfson: Got it. Great. And then maybe just last question. The commentary on Keno and looking at sustaining profitability, similar kind of outlook there. Should we be expecting more stable grades and throughput levels to what was achieved in the first half? Or is there still going to be some degree of improvement ahead of this -- the 2029 permitting milestone. Robert Krcmarov: Well, just related to the growth -- go ahead, Carlos. Carlos Aguiar: Well, we are projecting a similar grade and throughput in the third quarter. And with a potential to have some benefit in the last quarter. But it's going to be mostly -- second half of the year is going to be slightly better than the first half. Joshua Wolfson: Okay. And that -- the driver for that was going to be -- which of the factors? Carlos Aguiar: It's going to be a probably better grade. Operator: Your next question comes from the line of Kevin O'Halloran from BMO Capital Markets. Kevin O'Halloran: Just digging into the guidance update, it was great to see the AISC guidance come down. Can you give us a sense of the drivers of that? Was it higher silver production from Greens Creek and Lucky Friday larger byproduct contribution, better unit costs? And then maybe any broader thoughts on any cost pressures that you're seeing. Robert Krcmarov: Go ahead, Russell. Russell Lawlar: Yes. No problem. Thanks, Kevin. Yes, as we think about -- yes, I would say from an AISC perspective, Greens Creek, it really shows the value of that ore that comes out of Greens Creek, right? So 2 or 3 things on Greens Creek specifically. First, they had a great first half of the year, right? In terms of the silver production, so silver ounces were very, very strong. The gold byproduct is huge. And I made a comment in a different question. I think it was to Heiko earlier on the prices that we used in our guidance for Lucky Friday cost will in a similar sense, we have to make an estimate as it relates to the prices that we used for byproducts at the beginning of the year what would be realized versus what we estimate. And so we tend to be a little bit conservative on that. I'd have to go back, frankly, and look to see exactly what those were there in our year-end release. And so we've outperformed on the gold for sure. The Zinc has been a very strong -- the price of zinc has been very strong. And one of the things that people do sometimes oversee is the fact that Greens Creek has an incredible zinc byproduct as well. So that's Greens Creek. As produced costs are essentially online. They're doing well. And then from Lucky Friday's perspective, we've seen a better cost, I'll say, better cost control in general for the mine as a whole. We have seen that profit share that I highlighted earlier come off a little bit just because the price of silver has come off. But then again, they had a fantastic first half of the year from a production perspective. So you kind of wrap all of that up, and that's the reason the AISC guidance is better. I would highlight that we do expect capital spend in the last half of the year to be more than we did in the first half of the year. That's a couple of reasons. The third quarter tends to be kind of a full quarter of better weather as we relate to construction, construction projects are underway that kind of thing. And then we just tend to see more equipment deliveries. We order equipment seems to be earlier in the year and it kind of comes in later in the year. So I would expect the third and the fourth quarter to have more capital spend. And you can see that if you look at our capital spend in the first 6 months versus our guidance. Kevin O'Halloran: Great. Yes, that's helpful. Maybe another one for you, Russell. Could you remind us of the tax losses that you have in the U.S. and Canada? And how should we be thinking about the effective tax rate going forward? Russell Lawlar: I can. So our effective tax rate, one of the things that I would like to highlight as it relates to taxes is our operations in the United States and Canada and as a result, just because -- and I'm going to highlight the United States as a result of the -- frankly, the tax regime in the United States, it's lower than most of the other jurisdictions around the world. And so you should see less cash taxes paid from Hecla than many of our peers. Number two, during the quarter, and you'll see this -- we highlighted it in our earnings release. During the quarter, we did a little bit of tax work to combine our Nevada U.S. group with our kind of main U.S. group that includes Lucky Friday and Greens Creek. And as a result of that, we actually can utilize the expenses in Nevada against the income that's being generated from Greens Creek and Lucky Friday. So you actually see a little bit lower tax rate as a result of that. And we will see, obviously, less cash taxes paid. We expect to utilize our NOLs, both on a state and a federal basis for the year. And so therefore, we did make a cash tax payment in the first quarter. I was just trying to look that up, and I frankly don't have it in front of me. But you would see that at this point, that would be the taxes that we expect to pay. Kevin O'Halloran: Okay. That's great. And then maybe shifting gears back to the pyrite circuit at Greens Creek. Are there any permitting requirements that you would have to secure for that? And any space constraints on surface at the plant there that you would have to work around? And then maybe as a follow-up, as you're doing the technical and the costing work, when should we expect to see some of those details announced? And should we be expecting any changes to the resource or the reserve with the higher recoveries from circuit? Robert Krcmarov: In terms of permitting, I don't really know the answer to that question. It's basically simply an extension to the existing circuit. So I imagine permitting would be minimal, maybe something at the load-out bay. I don't really know Carlos or Matt, could you add any color on that? Carlos Aguiar: Yes. You are right. For the pyrite, there's minimum permitting required and we are not expecting any significant delays [indiscernible] permitting. So for that project, I don't see any issue, but there's some minimum required. Robert Krcmarov: Yes. And in terms of reserves, it's an interesting question because there's almost certainly some material that was stuck in resources. And now that we have the means to process pyritic ore at a profit, I would expect that there may be some of that converting into reserves, but I can't quantify that right now. Kevin O'Halloran: Okay. Great. We'll keep an eye on for that. That's all for me. Operator: Your next question comes from the line of Dalton Baretto from Canaccord. Dalton Baretto: Rob, I'm sure you've seen that the Trail smelter in BC is undergoing like an $800 million upgrade to process, germanium and gallium. I'm just wondering, has Greens Creek ever been assayed for germanium and gallium. Is that something you're looking at and is there a plan to monetize those if it does exist? Robert Krcmarov: I think there could well be some germanium or gallium actually in the tailings project. I don't really know. I'm going to -- I'll defer to Brian. Brian, if you're still on the call, could you answer that, please? Brian Erickson: Yes, I'm on. Can you guys hear me? Robert Krcmarov: Yes. Brian Erickson: Okay. Yes, there is, and we've looked at that as part of both ore production and the tailings reprocessing and pyrite concentrate. It's pretty minor, but certainly, that's a conversation we need to have with smelters on what the recoveries could be on that and the payability. Dalton Baretto: Great. And then just sort of a similar question, I guess, on Lucky Friday. A couple of its neighbors down in the Silver Valley there are banging the drum on antimony and downstream processing there. Is that something you guys are looking at as well? Could you be part of that if there was a central antimony plant? Robert Krcmarov: Lucky Friday doesn't really have any significant antimony compared to our neighbors. So we have looked at that. Dalton Baretto: Great. And just a final one on that sort of Silver Valley thematic there. There's lots of these single asset guys there now that are either up and running or moving towards first production. And there's probably a case to be made for consolidation there. Is that something that Hecla would be interested in or look at all? Robert Krcmarov: We're primarily excited by the inherent upside in our own assets. So at Lucky Friday in particular. There hasn't been any meaningful exploration there since about 2011. And so that's something that we're kicking off at present. We continue to monitor all of our neighbors, I guess, and if there's a compelling value proposition, we will consider it, but we're more excited about the potential on what we already own and understand and where we already have our own infrastructure, which is in top shape. Operator: Your next question comes from the line of Eric Winmill from Scotiabank. Eric Winmill: A lot of mine have been answered, but just a quick question on Aurora. I know it's still early days, but there's a mill on site there? Do you think it makes the most sense if you find a resource to process it on site? Or would it be part of maybe kind of hub and spoke system here at Midas? And if you do it at Aurora, any cost to refurb the mill there? Robert Krcmarov: Do you want to do it? Go ahead. At Aurora -- thanks for your question, Eric. At Aurora, it's too far by road. We had processed some loaded carbon previously. But to take ore from Aurora to Midas, it's probably not going to happen. We do have about a 600 tonne per day mill that's on site. It's actually -- it's not in great condition, I have to say, certainly not as good as Midas. And so that's why they're going to require reinvestment or potentially a new mill that remains to be determined. Really, it's -- let the drill bit do the talking. As Kurt said, he's very excited about this. I went out to this project in the late spring, and I actually understand why he's excited, there's legacy open pits. There's legacy underground production workings and adits. And then the best target that Kurt's focused on hasn't had a single drill hole on it, and you can actually see it from the side of the hill. So I'm very excited to see what he's going to yield. Eric Winmill: Okay. Fantastic. That's very helpful. One more, if you don't mind. Just on Midas and what you're seeing here in the Sinter offset. Presumably, that's on the south side of the main fault there, right? But it looks like some sort of an offset. Is it very similar to what you're seeing in the main Midas mine? Or any additional commentary would be helpful. Unknown Executive: Yes. It's similar to the Midas mine. It's more broken up than what we see at Midas. Midas had very narrow really high-grade veins within a 6-, 7-foot, 8-foot wide zone. And so it's similar to that in that respect. The offset is very similar to the Sinter discovery that we had in 2021. Operator: Your next question comes from the line of Alex Terentiew from National Bank. Alexander Terentiew: A lot of good questions asked here and most of mine are taken, but I've got a couple of follow-ups here. So first, maybe just on Midas. I mean, obviously, there's a lot of some exciting exploration there. You guys have talked quite a bit about a lot of existing infrastructure that you can quickly turn back on. Can you just remind me, maybe kind of walk me through the process of what we should expect over the next 1 or 2 years? I'm just trying to get a better sense of when we could see Midas become a formal project go ahead that you're going to make a production decision there, and we could see the first gold from that? Robert Krcmarov: I'll hand that one over to Matt. Matthew Blattman: Thanks Rob. So to answer your question, Alex, we're actively studying. Obviously, Kurt is drilling and identifying the resource and we get that all firmed up. And my worst nightmare is if Kurt finds that resource and turns to me and says let's put it into production tomorrow, and I don't have that ready. So we've already started geotechnical assessments of the rock. We've started on a hydro geo -- hydrogeologic assessment for inflows and geochemistry. We've also started on some of the mine design and what it would take to refurbish the mill. So those numbers are all ongoing. But obviously, we're not going to invest in any of that until we decide we've been able to firm up with in the ground. So the timing will be very related on exploration success, but we're being prepared now to have that information ready if he gets that -- assuming the drill identifies the resource that we're really looking for. Does that help? Alexander Terentiew: Okay. Yes, yes. No, I guess that helped. I mean, even if the resource proves itself to support a restart, I would expect and still this is a best case, call it, 2, 3 years away from first order, does that kind of make sense still, best case scenario? Matthew Blattman: It's probably in that range. But again, a lot of unknowns out there, but yes, that's probably a reasonable thought. Alexander Terentiew: Okay. Any permitting constraints or any... Matthew Blattman: Permitting constraints. Okay. So in terms of permitting constraints, we're in the process of reviewing what we have available. In general, we have a lot of that -- those permits in hand, some will require modifications, some will require some updates, but that's in general, we're in a much better spot than what we would be if it was just a greenfield site. Alexander Terentiew: Okay. Great. And then just one last question... Robert Krcmarov: Alex, when you think about project -- sorry, Alex, when you think about project development, the normal course is you define a resource, you do your studies and stuff like that. But we're in a unique situation in that we already own some of the key infrastructure. And so what we're trying to do is be agile here and run parallel streams. So Kurt is obviously trying to define the critical mass of resources that we need to get this in the production. Matt's trying to work on all the background engineering study work that needs to happen. So it's really about being agile. In terms of 2 or 3 years, I would suggest it will probably be a little bit longer than that. In terms of key permits, if, for example, conceptually, we want to put a portal to access the new discoveries that Kurt and his team have made. That's probably almost certainly going to require a new permit. But the mill with the tailings facility, all the key ones, we already have them in hand. Alexander Terentiew: Yes, that makes a lot of sense, Rob. I guess we're just going to look at these projects and see all the infrastructure. And I think that these things can be turned on relatively fast, but always forget that there's quite a bit of more work behind the scenes that has to get done. And I just got one more question just on Keno Hill. I mean, obviously, this mine has been running for a few years. You're talking about certain permits, but hopefully by mid-2029. I just want maybe a bit more color on the work that's being done there or what's needed for these permits. Is some of this more of a time series data collection that is just frankly, no matter what you do, it's just going to take some time to prove things up for whether it's environmental or water purposes? Or I'm just trying to see if there's anything that can be done to expedite that process. Robert Krcmarov: Not really. I mean permitting takes its course. It's up to us to provide the engineering and the design criteria that basically informs the permit. And then the regulators take as long as they need, they obviously need to consult with the First Nations group as well. But we do know the sequence. And really, it is -- as we've said previously, it is focused on making sure that we have sufficient water treatment capacity that we have sufficient tailings capacity and waste dump capacity as well. We understand the sequence we -- but in terms of the timing, it's very hard to pin down. We're going as fast as we can, but it's not entirely in our hands. Operator: This concludes the time allocated for questions. If you have any additional questions, please reach out to Mike Parkin via the contact us link on the website. I will now turn the call back to Rob Krcmarov, President and CEO, for closing remarks. Robert Krcmarov: Well, thank you all for the thoughtful questions today, and thanks for joining us this morning. I'll just leave you with this. We are in the strongest position this company has ever been, and we're putting that strength to work in the right places for our shareholders and for the long-term value of this business. We do look forward to updating you again next quarter. So thanks, everyone, and have a great day. Operator: This concludes today's call. Thank you for attending. You may now disconnect. Before you buy stock in Hecla Mining, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Hecla Mining wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $411,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,335,252!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 11, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Hecla Mining (HL) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Interested in Hecla Mining Company? Here are five stocks we like better. Strong financial performance: Hecla generated $136 million in free cash flow and ended the quarter with $483 million in cash, no significant long-term debt, and approximately $472 million in net cash. Greens Creek and Lucky Friday delivered record site-level free cash flow. Production and guidance improved: Second-quarter silver production rose 8% sequentially to 4.2 million ounces, prompting Hecla to raise Greens Creek guidance and tighten Lucky Friday expectations. Keno Hill also increased production but is prioritizing permitting and infrastructure over near-term expansion. Growth projects could add significant output: A proposed Greens Creek pyrite concentrate circuit could add 1.0–1.2 million ounces of silver and 10,000–15,000 ounces of gold annually, with production targeted for late 2027 or early 2028. Hecla is also evaluating Greens Creek tailings reprocessing and a potential Nevada hub-and-spoke restart. Why These 2 Hotel Stocks Are Beating Travel Peers 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. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling 3 Metals and Mining Stocks Riding the Commodity Supercycle 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. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High Hilton’s Q1 Report Put One Big Question Front and Center for 2026 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. → No Hangover: Revisiting Microsoft One Week After Earnings 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, driven by higher mill grade from a planned high-grade mining area. Management said it does not expect those grades to continue through the remainder of the year. Greens Creek: Produced 2.1 million ounces of silver and more than 14,000 ounces of gold. Hecla raised its full-year silver guidance to 8.0 million to 8.3 million ounces and expects 51,000 to 55,000 ounces of gold. The company also improved its cost guidance, projecting cash costs of negative $12.50 to negative $12.00 per ounce and all-in sustaining costs of negative $4.25 to negative $3.75 per ounce, after by-product credits. Lucky Friday: Hecla tightened silver production guidance to 4.9 million to 5.2 million ounces. It now expects cash costs of $9.00 to $9.75 per ounce and AISC of $20.50 to $26.00 per ounce, after by-product credits. The mine’s surface cooling project remained on track for completion by September. Keno Hill: Produced 625,000 ounces of silver, compared with 500,000 ounces in the first quarter. Full-year guidance was updated to 2.2 million to 2.6 million ounces as the company prioritizes permitting and site infrastructure work rather than pursuing near-term tonnage growth. Keno Hill received a permit during the quarter to expand its tailings storage facility. Krcmarov said the company expects to begin ramping toward higher production levels around the end of 2029 if it receives critical permits, completes infrastructure projects, and advances the tailings expansion sufficiently to support normal mill production. Hecla is advancing engineering and metallurgical studies for a pyrite concentrate circuit at Greens Creek. If developed, the circuit would recover metals from mill tailings currently sent to the dry-stack tailings facility. Vice President of Operations Brian Erickson said the project could add approximately 1.0 million to 1.2 million ounces of silver and 10,000 to 15,000 ounces of gold annually once fully ramped up. Initial capital spending for the project is estimated at $40 million to $60 million, with incremental annual operating costs estimated at $10 million to $15 million. Hecla is targeting first production between the fourth quarter of 2027 and the first half of 2028, followed by an approximately one-year ramp-up period. Management said the production figures are before payability factors and remain subject to further engineering work. The company is also conducting phase-three metallurgical test work on potential reprocessing of Greens Creek dry-stack tailings. The facility contains more than 600,000 ounces of gold, 51 million ounces of silver and other metals, which Hecla valued at roughly $6.1 billion in situ at June 30 metal prices before recovery, processing and capital costs. The test work and evaluation of a suitable processing facility are expected to help determine next steps. Hecla’s 2026 exploration and pre-development budget remains $55 million. At Keno Hill, the company extended a high-grade silver trend to 800 feet of strike length, where it remains open in both directions. Reported drill highlights included 10.2 feet grading 62.7 ounces per ton silver, 10.1 feet grading 44.6 ounces per ton silver, and 8 feet grading 22.4 ounces per ton silver. In Nevada, drilling at Midas identified two new high-grade gold-silver veins near the Sinter-Pogo Gap. Hecla is evaluating a potential hub-and-spoke restart model that could use the existing permitted Midas mill to process ore from Midas, Hollister or other regional sources. Management said a restart timeline will depend on exploration results, technical studies and certain permit modifications, though key mill and tailings permits are already in hand. Drilling at Hollister was underway, while exploration at Aurora was expected to begin in mid-August. Krcmarov said Aurora’s on-site mill would require reinvestment or potentially replacement if a viable resource is defined, and that hauling ore from Aurora to Midas is unlikely because of the distance by road. Hecla Mining Company, founded in 1891 and headquartered in Coeur d'Alene, Idaho, is one of the oldest publicly traded precious metals companies in the United States. Originally established to develop the rich silver deposits of the Coeur d'Alene district, Hecla has evolved into a diversified mining enterprise focused on the exploration, development and production of silver and gold, with by-product credits from lead and zinc. The company's principal operations are located in North America and Latin America. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Hecla Mining Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Hecla Mining Company HL used its second-quarter 2026 earnings call to emphasize a stronger balance sheet and organic growth pipeline, even as the timeline for materially higher Keno Hill production moved further out. The central message was that current cash generation supports selective investment, while permitting and infrastructure remain the main constraints on Hecla’s medium-term silver target. Robert Krcmarov, president and CEO, said Hecla ended the quarter with the strongest balance sheet in its history. It held $483 million in cash, had no long-term debt outside capital leases and retained an essentially undrawn $225 million revolver. Krcmarov attributed the sequential revenue decline to lower metal prices and shipment timing, not weaker production. Concentrate produced mainly at Greens Creek but unsold at quarter-end shipped in early August for recognition in the third quarter. Russell Lawlar, senior vice president and CFO, said continuing operations generated $136 million of free cash flow. Hecla also moved from nearly $270 million of net debt a year earlier to about $472 million of net cash. Brian Erickson, vice president of operations, outlined a Greens Creek pyrite concentrate circuit that could add 1.0 million to 1.2 million silver ounces and 10,000 to 15,000 gold ounces annually after ramp-up. Erickson estimated capital spending of $40 million to $60 million and annual operating costs of $10 million to $15 million. First production is targeted between the fourth quarter of 2027 and the first half of 2028. He also highlighted dry-stack tailings containing an estimated 51 million silver ounces and 600,000 gold ounces. Phase 3 metallurgical testing was scheduled for completion in August 2026. Carlos Aguiar, senior vice president and COO, said Hecla is holding Keno Hill at a lower rate while prioritizing permits and infrastructure. The mine still produced positive free cash flow for a fifth consecutive quarter. Krcmarov said only one of five commercial-production criteria, silver recovery, had been met. Hecla expects critical permits by mid-2029 and a ramp toward higher production around the end of 2029. A CIBC analyst asked whether revised 2026 guidance of 2.2 million to 2.6 million ounces represented a sustainable rate. Aguiar said third-quarter grade and throughput should resemble the second quarter, with some improvement possible later. Aguiar raised Greens Creek’s 2026 silver guidance to 8.0 million to 8.3 million ounces and improved its cash-cost and all-in sustaining cost outlook, supported by strong byproduct economics. At Lucky Friday, Aguiar said record production of 1.5 million silver ounces reflected a planned high-grade zone. He and Krcmarov cautioned that those grades are not expected to persist through 2026. Lawlar said stronger gold and zinc byproduct contributions and better cost control supported the cost outlook. He expects capital spending to rise in the second half as construction and equipment deliveries increase. An H.C. Wainwright analyst asked about longer-term capital needs. Krcmarov said no major near-term expansion was planned, though Lawlar noted ongoing tailings work and Keno Hill infrastructure spending. A CIBC analyst questioned the pyrite circuit’s concentrate payability. Lawlar said investors should apply a payability factor because engineering, costs and commercial terms were still being finalized. A National Bank analyst asked whether Midas could restart within two or three years. Matthew Blattman, vice president of technical services, initially called that range reasonable, but Krcmarov later said the process would probably take longer. Krcmarov said Hecla remains more focused on upside within existing assets than on regional consolidation. He pointed to renewed exploration at Lucky Friday and the advantage of investing around infrastructure the company owns. The call combined confidence in financial capacity with caution on execution timelines. Hecla’s priorities remain project engineering, permitting, infrastructure and exploration rather than rapid expansion. HL carries a Zacks Rank #3 (Hold), with a Growth Score of A, Value Score of D, Momentum Score of F and VGM Score of C. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. The grades indicate strong growth characteristics but weaker value and momentum attributes. Zacks Style Scores complement the Zacks Rank, with A and B grades generally preferred, especially alongside a Zacks Rank #1 or #2. The current Zacks Rank can change as analysts revise estimates following the reported results. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Hecla Mining Company (HL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Revenue: $334 million from continuing operations, down from the record $411 million in Q1 2026, due to lower metal prices and timing of concentrate sales. Adjusted EBITDA: $199 million, more than double the $94 million generated in the prior-year quarter. Net Income: $118 million, or $0.18 per share, from continuing operations. Operating Cash Flow: $175 million. Free Cash Flow: $136 million, the second-best quarter on record, close to the record $144 million posted in Q1 2026. Cash Position: Ended the quarter with $483 million in cash, no long-term debt outside of capital leases, and an essentially fully undrawn $225 million revolving credit facility. Silver Production: 4.2 million ounces, up 8% from the prior quarter, with Lucky Friday setting a new quarterly production record of 1.5 million ounces. Greens Creek Production: 2.1 million ounces of silver and over 14,000 ounces of gold in Q2, with cash costs of negative $17.11 per ounce and ASIC of negative $10.71 per ounce, both after byproduct credits. Lucky Friday Production: Record 1.5 million ounces of silver, with cash costs of $3.95 per ounce and ASIC of $17.80 per ounce, both after byproduct credits. Keno Hill Production: 625,000 ounces of silver, up from 500,000 ounces in Q1, with positive free cash flow of nearly $15 million. Mine Revenue: $323 million, with silver accounting for 68% of the total, gold 14%, and the remainder from base metal byproducts. Margin: Realized 90% of the realized silver price as margin during the quarter. Warning! GuruFocus has detected 1 Warning Sign with HL. Is HL fairly valued? Test your thesis with our free DCF calculator. Release Date: August 05, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Hecla Mining Co (NYSE:HL) reported a strong quarter with adjusted EBITDA of $199 million, more than double the $94 million from the same period last year. The company achieved record site-level free cash flow at Greens Creek ($130 million) and Lucky Friday ($88 million), contributing to a consolidated free cash flow of $136 million. Hecla Mining Co (NYSE:HL) ended the quarter with its strongest balance sheet in history: $483 million in cash, no long-term debt (excluding capital leases), and a fully undrawn $225 million credit facility. The company is advancing high-return, low-capital projects, including the Greens Creek pyrite concentrate circuit (expected to add 1-1.2 million ounces of silver and 10,000-15,000 ounces of gold annually) and the tailings reprocessing project with significant in-situ value. Exploration results at Keno Hill and Midas show high-grade extensions and new discoveries, supporting long-term growth potential, with drilling at Aurora and Hollister underway. Safety performance improved significantly, with the total recordable injury frequency rate (TRIFR) dropping to 1.57 from 2.07 in the prior quarter. The company's cost structure is insulated from fuel price spikes due to high-grade underground mining and reliance on hydropower, with fuel only 3% of consolidated costs. Full-year guidance was improved for Greens Creek (silver production raised to 8-8.3 million ounces) and Lucky Friday (cash costs lowered to $9-$9.75 per ounce). Revenue declined to $334 million from the record $411 million in Q1 2026, partly due to lower metal prices and timing of concentrate sales at Greens Creek. Keno Hill's full-year silver production guidance was lowered to 2.2-2.6 million ounces, reflecting a deliberate slowdown to focus on permitting and site development. The company faces permitting delays at Keno Hill, with critical permits not expected until mid-2029, delaying the ramp-up to higher production levels. Lucky Friday's high-grade performance in Q2 is not expected to be sustained, with grades likely reverting to the mean in the second half of the year. The pyrite concentrate project is still in early stages, with capital and operating cost estimates subject to change as engineering advances. The Midas restart is expected to take longer than two to three years, with new permits potentially required for accessing new discoveries. The company's effective tax rate could be impacted by the combination of Nevada operations with the main US group, though this is expected to lower cash taxes. Exploration and development expenses increased in Q2, which contributed to the gap between site-level and corporate free cash flow. Q: Can you provide more details on the new Greens Creek pyrite concentrate circuit project, including its expected production, capital costs, and timeline?A: Brian Erickson, Vice President of Operations, detailed that the project involves a new processing circuit at the Greens Creek mill to produce a marketable pyrite concentrate from tailings. Once fully ramped up, it could add approximately 1 to 1.2 million ounces of silver and 10,000 to 15,000 ounces of gold in additional annual production. The capital expenditure is estimated at $40 million to $60 million, with incremental operating costs of $10 million to $15 million per annum. First production is targeted between Q4 2027 and H1 2028, with a ramp-up period of roughly a year. The project is expected to meet the company's investment thresholds with robust returns. Q: How should we reconcile the record site-level free cash flow at Greens Creek and Lucky Friday with the lower consolidated corporate free cash flow?A: Russell Lawlar, CFO, explained that the difference is due to two factors. First, exploration expenses, which are allocated from a corporate perspective, increased in Q2 compared to Q1 and are included in the consolidated free cash flow number. Second, there are corporate expenses and working capital timing differences that are not included in the site-level calculations. The mine-site free cash flow figures add back exploration expense incurred at each site, which is not considered part of the core current-period operations. Q: Given the lower production guidance for Keno Hill, what is the timeline for reaching commercial production and higher production rates?A: CEO Rob Krcmarov stated that the company has outlined five criteria for commercial production, of which only one (silver recovery) has been met. The focus is on obtaining critical permits and investing in infrastructure. If the key permits are received by mid-2029 and infrastructure projects are executed over the next two to three years, the company expects to begin ramping up to higher production levels by the end of roughly 2029. The mine is currently free cash flow positive and has been for several quarters. Q: Regarding the pyrite concentrate circuit, are the production figures (1 to 1.2 million ounces of silver) before or after payability factors?A: CFO Russell Lawlar confirmed that the figures are before payability. He noted that the project is still in the engineering and costing stages, so the company is not yet providing a formal return on invested capital number. However, the project is expected to substantially exceed the company's 12% to 15% ROIC criteria. The quality of the concentrate is very high, and there has been strong demand from multiple potential buyers. Q: What drove the exceptional grade performance at Lucky Friday in Q2, and should we expect this to continue?A: COO Carlos Aguiar explained that the high grades were part of the planned mining sequence. The most significant portion of the high-grade zone was mined in Q2, which was a matter of timing. The company does not expect to maintain these high grades for the remainder of the year and anticipates production will revert to the mean. Q: What are the drivers behind the improved ASIC guidance, and are there any cost pressures to be aware of?A: CFO Russell Lawlar attributed the improved guidance to strong performance at Greens Creek, including higher silver production and significant gold and zinc byproduct credits. At Lucky Friday, better cost control and lower profit share payments due to reduced silver prices contributed. He noted that capital spending is expected to increase in H2 2026 due to construction projects and equipment deliveries, which is typical for the seasonal pattern. Q: Can you provide an update on the Midas restart project and the timeline for a potential production decision?A: Matt Blattman, VP of Technical Services, stated that the company is actively studying the project, including geotechnical, hydrogeologic, and mine design assessments, while exploration drilling continues. The timeline is highly dependent on exploration success. CEO Rob Krcmarov added that the company is running parallel work streams to be agile. A production decision would likely take longer than two to three years, especially if new permits are required for a new portal, though the mill and tailings facility permits are already in hand. Q: Has Greens Creek ever been assayed for germanium and gallium, and is there a plan to monetize these metals?A: VP of Operations Brian Erickson confirmed that the company has looked at germanium and gallium as part of both production and the tailings reprocessing and pyrite concentrate projects. The quantities are "pretty minor," but the company is having conversations with smelters about potential recoveries and payability. Q: What is the outlook for Keno Hill production in the second half of 2026?A: COO Carlos Aguiar stated that Q3 production is expected to be very similar to Q2, with the potential for a slight improvement in Q4. The second half of the year is expected to be slightly better than the first half, driven primarily by grade improvements. Q: Could you provide more color on the Aurora project and its potential?A: VP of Exploration Kurt Allen noted that Aurora is a past producer of extremely high-grade mineralization, with historic grades above 2 ounces per ton gold. Drilling is expected to begin in mid-August. CEO Rob Krcmarov added that the site has a 600-tonne-per-day mill, though it is not in great condition and may require reinvestment or replacement. The best target has not had a single drill hole, and initial results could be available this fall. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Cash Flow from Continuing Operations up 61% Year-Over-Year to $175 million; Free Cash Flow1 More Than Doubles Year-Over-Year to $136 million; Strongest balance sheet in Company's history; Lucky Friday sets new production record COEUR D'ALENE, Idaho, August 04, 2026--(BUSINESS WIRE)--Hecla Mining Company (NYSE:HL) ("Hecla", or the "Company") today announced second quarter 2026 financial and operating results. "Prior quarter" refers to the first quarter of 2026. Prior period financial information has been recast to reflect Casa Berardi as a discontinued operation. SECOND QUARTER 2026 HIGHLIGHTS Financial Performance: Revenue: $334 million, an expected pullback from a record prior quarter, primarily reflecting lower realized silver and gold prices, in line with the trend of lower market prices during the quarter. Consolidated silver and gold production was higher than the prior quarter; the softer sales volumes reflect the timing of shipments, mainly at Greens Creek. Profitability: Income from continuing operations of $118 million or $0.18 per share - down from $165 million or $0.25 per share in the prior quarter. Adjusted EBITDA: $199 million from continuing operations, a 25% decrease over the prior quarter but more than double the $93 million recorded in the second quarter of 2025 (both periods on a continuing operations basis, excluding Casa Berardi).4 Continued strong cash flow generation: $175 million cash generated from continuing operations, and second best quarterly free cash flow from continuing operations of $136 million, with all producing assets contributing and Greens Creek and Lucky Friday setting new quarterly site-level free cash flow records.1 Building balance sheet strength: Cash position of $483 million underscores continued balance sheet strengthening and strategic flexibility. With the redemption of the remaining $263 million in 7.25% Senior Notes ("Senior Notes"), the Company ends the second quarter debt free (excluding financial leases) and backed by a fully undrawn $225 million revolving credit facility, with $3.5 million of availability utilized for outstanding letters of credit, plus a $75 million undrawn accordion option, representing the strongest balance sheet position in the Company's history. Operational Performance: Operations: Individual Mine Performance: Rob Krcmarov, President and Chief Executive Officer, said: "Our second quarter results reflect the strength of the platform we have built. We ended the quarter with the strongest balance sheet in the Company's history, and Lucky Friday delivered record quarterly silver production, underscoring the quality of our silver portfolio. I'm also encouraged by our strong safety performance across the operations, which remains a foundation of everything we do. At the same time, our organic project pipeline continues to advance, demonstrating real potential for meaningful value creation and further solidify Hecla's position as North America's premier silver producer." FINANCIAL AND OPERATIONAL OVERVIEW In the following table and throughout this release, "costs applicable to sales" is exclusive of depreciation, depletion and amortization; "prior quarter" refers to the first quarter of 2026. All information in the table below is presented on a continuing operations basis. SECOND QUARTER RESULTS Sales of $334 million decreased 19% compared to the prior quarter, primarily reflecting lower realized precious metals prices, due largely to timing of sales, a declining price environment and lower precious metals sales volumes. Payable silver sold was roughly 5% lower compared to the prior quarter, primarily driven by the timing of sales at Greens Creek. Income from continuing operations was $118 million, or $0.18 per share compared to the record $165 million in the prior quarter (in each case from continuing operations, excluding Casa Berardi). The decline was primarily related to: A 19% decrease in revenue from continuing operations for the items noted above A $7 million increase in exploration and pre-development expense, primarily related to the seasonal increase in exploration activities across the portfolio A $3 million increase in depreciation expense due primarily to higher production and sales volumes at Lucky Friday and Keno Hill Partly offset by: A $32 million decrease in tax expense primarily related to lower profitability compared to the prior quarter and tax planning strategies allowing for consolidation of tax groups A $7 million decrease in costs applicable to sales primarily related to lower consolidated volumes of silver sold5 A $3 million decrease in interest expense primarily related to the repayment of the Senior Notes Adjusted EBITDA from continuing operations was $199 million, down 25% from the prior quarter (in each period, excluding Casa Berardi), primarily reflecting the decrease in revenue, partly offset by lower costs applicable to sales.4,5 Cash and cash equivalents at June 30, 2026, of $483 million, with no draws on the revolving credit facility, with $3.5 million of availability utilized for outstanding letters of credit. Cash provided by operating activities from continuing operations was $175 million, down 4% from the prior quarter, primarily due to lower realized metal prices for silver, gold and lead, and lower volumes of payable silver and gold ounces sold, partly offset by a higher realized zinc price (in each period, excluding Casa Berardi). Cash provided by operating activities was positively impacted by a $63 million decrease in accounts receivable, driven by timing of concentrate shipments, the collection of receivables and lower metal prices reducing the value of concentrate receivables as of June 30, 2026. Capital investment in continuing operations was $39 million, nearly unchanged from the prior quarter (in each period, excluding Casa Berardi). Capital investment is expected to increase in the third quarter and remain elevated in the fourth quarter, as projects across the portfolio advance through the warmer-weather construction season and into the fall. The Company continues to invest in 2026 corporate initiatives to strengthen planning discipline and operational efficiency. Free cash flow from continuing operations was $136 million, compared to a record $144 million in the prior quarter, with the 5% decrease primarily due to lower cash flow from operations (in each period, excluding Casa Berardi).1 Greens Creek and Lucky Friday set new quarterly site-level free cash flow records of $130 million and $88 million, respectively.1 Consolidated silver production from continuing operations was 4.2 million ounces, up 8% from the prior quarter. The increase was driven by Lucky Friday's new quarterly record of 1.5 million ounces, benefiting from a 31% higher milled grade, a level consistent with plan, but not expected to be sustained, partly offset by 6% lower tons milled. Production also increased 28% at Keno Hill, as milling rates rose 38%, partly offset by 7% lower milled grade. Gold production from Greens Creek was 14 thousand ounces, up 10% from the prior quarter due to 4% higher mill throughput and a higher grade milled. Silver payable ounces sold of 3.4 million ounces, down 5% from the prior quarter, primarily due to lower payable ounces sold at Greens Creek and Keno Hill, partly offset by higher sales at Lucky Friday. Gold payable ounces sold of 10 thousand ounces, down 12% from the prior quarter due to the timing of sales at Greens Creek. Concentrate volumes produced and sold were higher at Lucky Friday and Keno Hill compared to the prior quarter. At Greens Creek, concentrate production was higher for one of the three concentrates produced, while concentrate sales were lower across all three, reflecting a lag between production and shipment: zinc and precious metals concentrate sales roughly matched production, while silver concentrate shipments lagged production, resulting in a build-up of silver concentrate inventory at quarter end that was shipped in early August. Concentrates sales at Lucky Friday were broadly in line with production in the second quarter. At Keno Hill, silver and zinc concentrate sales were below production volumes due to timing of sales, despite overall concentrate production and sales being higher than the prior quarter. Consolidated silver costs applicable to sales (excludes depreciation) from continuing operations improved 6% over the prior quarter to $117 million, primarily due to lower volumes of silver sold.5 Silver cash costs and AISC per silver ounce from continuing operations, each after by-product credits and excluding Keno Hill, which has not yet achieved commercial production, were ($8.10) and $6.07, respectively, lower than the prior quarter, primarily due to higher ounces produced and $6 million higher by-product credits, mostly associated with higher volumes, partly offset by $2 million higher treatment charges. The decrease in AISC compared to the prior quarter reflects these same cash cost drivers, along with $1 million lower general and administrative expense, offset by $11 million higher sustaining capital investment, split roughly evenly between Lucky Friday and Greens Creek.2,3 GUIDANCE In the tables below the Company provides production, cost, and capital guidance on a consolidated basis and by mine, as well as projected consolidated exploration and pre-development expenditures. Silver production guidance is increased for Greens Creek, tightened up for Lucky Friday, and reduced for Keno Hill. There is no change to Greens Creek gold production guidance. Total silver cash costs and AISC per ounce (after by-product credits)3,4 guidance is lowered on better than planned 1H26 results, and the lower end of total capital investment guidance is raised by about 2%. 2026 Production Outlook Consolidated silver production is expected to be 15.1-16.1 million ounces, a lower upper end compared to prior guidance. Greens Creek's silver production is expected to be 8.0-8.3 million ounces, raised up from the prior guidance of 7.5-8.1 million ounces. Lucky Friday's silver production is expected to be 4.9-5.2 million ounces, tightened up from the prior 4.7-5.2 million ounces. Keno Hill's silver production is expected to be 2.2-2.6 million ounces, lowered from the prior 2.9-3.2 million ounces. The Company's plan at Keno Hill is to run the operation at a sustained, more modest rate, while permitting and infrastructure build-out is prioritized, as previously disclosed. Greens Creek's gold production guidance of 51.0-55.0 koz is reiterated. 2026 Cost Guidance Revised Lower Total silver cash cost and AISC guidance per silver ounce (after by-product credits) is improved to ($4.00)-($3.75)/oz and $12.50-$13.50/oz respectively.2,3 This guidance only incorporates Greens Creek and Lucky Friday, as Keno Hill remains in a state of pre-commercial production. At Greens Creek, guidance for costs applicable to sales (excludes depreciation) at $240 million. Cash cost per silver ounce (after by-product credits) and AISC per silver ounce (after by-product credits) guidance is lowered to ($12.50)-($12.00) and ($4.25)-($3.75) respectively from ($9.00)-($8.25) and $0.00-$0.50 respectively.2,3,5 At Lucky Friday, guidance for costs applicable to sales (excludes depreciation) of $139 million. Cash cost guidance is lowered to $9.00-$9.75 from the prior $10.25-$11.00 (after by-product credits), per silver ounce, and the lower end of AISC raised to $24.50-$26.00 from $23.50-$26.00 (after by-product credits), per silver ounce to reflect the higher sustaining capital investment guidance at the mine.2,3,5 2026 Capital and Exploration Lower end of total capital (growth and sustaining) investment guidance raised, top end reiterated, now at $208-$223 million from $204-$223 million. Greens Creek's capital investment is primarily attributable to mine development and the expansion of its tailings facility, which, when completed is expected to provide tailings storage capacity through 2045. Lucky Friday's capital investment is heavily tied to underground development, a new tailings facility and a surface cooling project, which is expected to be completed by September and to increase the designed cooling capacity at the mine to support its reserve mine-life of fifteen years. Expected capital investment at Keno Hill comprises mine development, expansion of its tailings facility, and infrastructure projects. Exploration and pre-development expenditures remain unchanged and are expected to be $55 million, with the focus at Greens Creek and Keno Hill, Nevada and Lucky Friday. Metal Prices and FX rate assumptions for 2H26 (1H26 actuals). Expectations for gold $4,000/oz, silver $55.00/oz, zinc $1.40/lb, lead $0.85/lb and copper $4.00/lb, for byproduct credit calculations. Numbers are rounded. Assumed exchange rate for Canadian dollar is unchanged at 1.35 CAD/USD. PROJECT PIPELINE UPDATE Hecla remains focused on advancing a pipeline of organic growth opportunities that build on existing infrastructure, established permitting paths, and the Company's deep operational expertise. The projects outlined below are anticipated to be low-capital-intensity opportunities with the potential to meaningfully expanding precious metal output, cash flows and net asset value over time, while avoiding many of the exploration and development risks inherent in greenfield projects. Greens Creek Pyrite Concentrate Circuit Greens Creek is advancing engineering and evaluation of a pyrite concentrate circuit which has the potential to recover additional silver and gold that currently report to tailings. Preliminary metallurgical and engineering work indicates the project could, at average reserve grades, add approximately 1.0 to 1.2 million ounces of silver and 10,000 to 15,000 ounces of gold in annual production, once fully ramped up. Preliminary cost estimates are underway. Early indications point to a potential robust return on capital meeting Company thresholds, while potentially also reducing the rate of tailings deposited into the tailing storage facility, which would be expected to lower future tailings-related capital investment. This work is at a preliminary economic assessment level of engineering, incorporating some advanced design (equivalent to an AACE Class 4 cost estimate advancing toward Class 3). Given the projected favorable benefit-to-cost ratio and low technical risk, the project is well suited to an accelerated engineering and execution path subject to receipt of applicable permits, and final investment approval. The Company currently targets first production between the fourth quarter of 2027 and the first half of 2028, with a ramp-up period of approximately one year required to reach full capacity. A dedicated internal project manager has been assigned to oversee execution, consistent with Hecla's approach to advancing near-term growth opportunities. These estimates are preliminary, based on early-stage engineering and metallurgical work, and remain subject to change as the project advances. Actual results may differ materially from these estimates due to further technical work, permitting timelines, market conditions, and other factors described under "Cautionary Statement Regarding Forward-Looking Statements, Including 2026 Outlook" in this news release and under "Risk Factors" in the Company's 2025 Form 10-K filed on February 17, 2026, and Form 10-Q expected to be filed on August 4, 2026, as well as in other reports filed by the Company from time to time with the Securities and Exchange Commission. References to preliminary economic assessment, prefeasibility, and feasibility levels in this section describe the engineering and cost-estimate maturity of processing circuit design work and are not technical reports, preliminary economic assessments, or feasibility studies as those terms are defined under SEC Regulation S-K 1300 or NI 43-101 in Canada. Greens Creek Tailings Reprocessing Project The Greens Creek tailings reprocessing project offers potential organic value creation, though significant groundwork is still needed before that value can be realized. The project is at a preliminary, conceptual stage of engineering (equivalent to an AACE Class 5 to Class 4 cost estimate) and is progressing through a multi-phase metallurgical study conducted with a third party, with Phase 3 testing scheduled for completion in August 2026. This next phase of multi-ton metallurgical work is a key milestone that should help shape next steps, with the potential to advance to a pilot plant test in Phase 4. If the tests yield positive results, it is expected the project would advance through a prefeasibility study before any decision to execute. Early indications point to a potentially low capital intensity path for Hecla to achieve initial cash flows, though the project remains in the early stages of testing and the potential third party partner securing a suitable processing facility. As an added benefit, reprocessing all or part of the existing tailings could decrease the space needed for tailings storage and help lower the mine's long-term reclamation liability. At June 30, 2026, the dry-stack tailings facility at Greens Creek held an estimated 10.6 million tons of material, containing roughly 51 million ounces of silver, nearly 600 thousand ounces of gold, and additional critical minerals, representing a combined estimated in-situ gross metal value of approximately $6.1 billion (based on June 30, 2026 metals prices and before transportation, processing or sales costs, which are expected to be significant). Midas Restart Project Hecla continues to evaluate the potential to restart the existing, permitted Midas mill in northern Nevada, a historic high-grade gold and silver operation. Midas benefits from fully permitted infrastructure, which could help reduce the capital required for restart, and the Company is working to expand the existing high-grade gold and silver resource to the scale needed to support that restart. Midas represents a potential hub-and-spoke operating model, with ore potentially sourced from multiple regional deposits and fed into the 1,200 tpd mill. The site also includes an existing permitted tailings facility, offering approximately 15 years of storage capacity at the mill's nameplate capacity The Company has allocated $16 million of the 2026 exploration budget for the Nevada project portfolio, more than three times the investment made in 2025. The 2026 drill program at Midas is focused on following up on the success of the 2025 drill program with a heavy focus on the Sinter Offset Zone and the Pogo target. The nearby Hollister high-grade gold and silver project is within trucking distance of the Midas mill and drilling has recently resumed after a multi-year pause. With multiple veins and trends still open along strike and at depth, and programs at Hollister and Aurora beginning, the Company expects continued exploration momentum through the second half of 2026 and aims to provide regular exploration updates for the Nevada exploration projects throughout 2026. EXPLORATION AND PRE-DEVELOPMENT Investment and Strategy During the second quarter, the Company invested $11.3 million in exploration and corporate development (and $0.4 million in pre-development) activities, focused on high-impact discovery drilling at Keno Hill in Yukon and Midas in Nevada, and resource expansion programs at the Company's producing assets. This strategy balances district-scale discovery with near-mine resource definition and reserve extension. Guidance for 2026 remains at $55 million investment in exploration and pre-development. See our exploration update news release from July 29, 2026 for detailed results. DIVIDENDS Pursuant to the Company's dividend policy, the Board of Directors declared a quarterly cash dividend of $0.00375 per share of common stock payable on or about September 10, 2026, to stockholders of record on August 26, 2026. Preferred Stock The Board of Directors declared a quarterly cash dividend of $0.875 per share of Series B preferred stock, payable on or about October 1, 2026, to preferred stockholders of record on September 15, 2026. CONFERENCE CALL AND WEBCAST A conference call and webcast will be held on Wednesday, August 5, at 10:00 a.m. Eastern Time to discuss these results. The Company recommends that you dial in at least 10 minutes before the call commencement. You may join the conference call by dialing toll-free 1-833-461-5787 or for international dialing 1-585-542-9983. The Conference ID is 147975178 and must be provided when dialing in. Hecla's live and archived webcast can be accessed at https://events.q4inc.com/attendee/147975178 or www.hecla.com under Investors. ABOUT HECLA Founded in 1891, Hecla Mining Company (NYSE: HL) is the largest silver producer in the United States and Canada. In addition to operating mines in Alaska, Idaho, and the Yukon, Canada, the Company owns a number of exploration and pre-development projects in world-class silver and gold mining districts throughout North America. NOTES Non-GAAP Financial Measures Non-GAAP financial measures are intended to provide additional information only and do not have any standard meaning prescribed by United States generally accepted accounting principles ("GAAP"). These measures should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. The non-GAAP financial measures cited in this release and listed below are reconciled to their most comparable GAAP measure at the end of this release. (1) Free cash flow is a non-GAAP measure calculated as cash provided by operating activities less capital investment. Cash provided by operating activities for the Greens Creek, Lucky Friday, and Keno Hill operations excludes exploration and pre-development investment, as it is a discretionary expenditure and not a component of the mines’ operating performance. Capital investment refers to Additions to properties, plants and equipment from the Consolidated Statements of Cash Flows, net of finance leases. (2) Cash cost, after by-product credits, per silver ounce is a non-GAAP measurement, a reconciliation of costs applicable to sales can be found at the end of the release. It is an important operating statistic that management utilizes to measure each mine's operating performance. It also allows the benchmarking of performance of each mine versus those of our competitors. As a primary silver mining company, management also uses the statistic on an aggregate basis - aggregating the Greens Creek and Lucky Friday mines to compare performance with that of other silver mining companies. Similarly, the statistic is useful in identifying acquisition and investment opportunities as it provides a common tool for measuring the financial performance of other mines with varying geologic, metallurgical and operating characteristics. In addition, the Company may use it when formulating performance goals and targets under its incentive program. (3) All-in sustaining cost ("AISC"), after by-product credits, is a non-GAAP measurement, a reconciliation of which to costs applicable to sales, the closest GAAP measurement, can be found in the end of the release. AISC, after by-product credits, includes costs applicable to sales and other direct production costs, expenses for reclamation at the mine sites and all site sustaining capital costs. AISC, after by-product credits, is calculated net of depreciation, depletion, and amortization and by-product credits. Current GAAP measures used in the mining industry, such as total cost of goods sold, do not capture all the expenditures incurred to discover, develop and sustain silver and gold production. Management believes that AISC is a non-GAAP measure that provides additional information to management, investors and analysts to help (i) in the understanding of the economics of our operations and performance compared to other producers and (ii) in the transparency by better defining the total costs associated with production. Similarly, the statistic is useful in identifying acquisition and investment opportunities as it provides a common tool for measuring the financial performance of other mines with varying geologic, metallurgical and operating characteristics. In addition, the Company may use it when formulating performance goals and targets under its incentive program. (4) Adjusted EBITDA is a non-GAAP measurement, a reconciliation of which to income from continuing operations, the most comparable GAAP measure, can be found at the end of the release. Adjusted EBITDA is a measure used by management to evaluate the Company's operating performance but should not be considered an alternative to income from continuing operations, or cash provided by operating activities as those terms are defined by GAAP, and does not necessarily indicate whether cash flows will be sufficient to fund cash needs. In addition, the Company may use it when formulating performance goals and targets under its incentive program. (5) Excludes depreciation, depletion and amortization. Cautionary Statement Regarding Forward Looking Statements, Including 2026 Outlook This news release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbor created by such sections and other applicable laws, including Canadian securities laws. Words such as "may", "will", "should", "expects", "intends", "projects", "believes", "estimates", "targets", "anticipates" and similar expressions are used to identify these forward-looking statements. Such forward-looking statements may include, without limitation: (i) the Company’s organic project pipeline has potential for meaningful value creation, with the potential to meaningfully expanding precious metal output, cash flows and net asset value over time, while avoiding many of the exploration and development risks inherent in greenfield projects; (ii) at Greens Creek, (a) the expansion of its tailings facility, when completed, is expected to provide tailings storage capacity through 2045; and (b) the potential new pyrite concentrate circuit (1) could create incremental annual production of approximately 1.0 to 1.2 million ounces of silver and 10,000 to 15,000 ounces of gold from material that currently reports to tailings, once fully ramped up, (2) has a potential robust return on capital meeting Company thresholds, while potentially also reducing the rate of tailings deposited into the tailing storage facility, which would be expected to lower future tailings-related capital investment, (3) has projected favorable benefit-to-cost ratio and low technical risk, and is well suited to an accelerated engineering and execution path, and (4) is targeted for first production between the fourth quarter of 2027 and the first half of 2028, with a ramp-up period of approximately one year required to reach full capacity; (c) the tailings reprocessing project (1) offers potential organic value creation, (2) has Phase 3 testing scheduled for completion in August 2026, which is a key milestone that should help shape next steps, with the potential to advance to a pilot plant test in Phase 4, (3) is expected to advance through a prefeasibility study before any decision to execute if the tests yield positive results, (4) represents a potentially low capital intensity path for Hecla to achieve initial cash flows, and (5) could decrease the space needed for tailings storage and help lower the mine's long-term reclamation liability. (iii) the Midas restart project has the potential to reduce the capital required to restart the operation through its fully permitted infrastructure, with Midas representing a potential hub-and-spoke operating model where ore sources could come from multiple regional sources fed into the 1,200 tpd mill; (iv) the surface cooling project at Lucky Friday is expected to be completed by end of third quarter 2026; (v) capital investment is expected to ramp up in the third quarter with the warmer construction months and remain elevated in the fourth quarter as numerous projects are advanced across the portfolio; (vi) Company-wide and mine-specific estimated spending on capital, exploration and predevelopment for 2026; (vii) Company-wide and mine-specific estimated silver and gold production for 2026; and (ix) metals prices and foreign exchange rate assumptions. The material factors or assumptions used to develop such forward-looking statements or forward-looking information include that the Company’s plans for development and production will proceed as expected and will not require revision as a result of risks or uncertainties, whether known, unknown or unanticipated, to which the Company’s operations are subject. Estimates or expectations of future events or results are based upon certain assumptions, which may prove to be incorrect, which could cause actual results to differ from forward-looking statements. Such assumptions, include, but are not limited to: (i) there being no significant change to current geotechnical, metallurgical, hydrological and other physical conditions; (ii) permitting, development, operations and expansion of the Company’s projects being consistent with current expectations and mine plans; (iii) political/regulatory developments in any jurisdiction in which the Company operates being consistent with its current expectations; (iv) the exchange rate for the USD/CAD being approximately consistent with current levels; (v) certain price assumptions for gold, silver, lead and zinc; (vi) prices for key supplies being approximately consistent with current levels; (vii) the accuracy of our current mineral reserve and mineral resource estimates; (viii) there being no significant changes to the availability of employees, vendors and equipment; (ix) the Company’s plans for development and production will proceed as expected and will not require revision as a result of risks or uncertainties, whether known, unknown or unanticipated; (x) counterparties performing their obligations under hedging instruments and put option contracts; (xi) sufficient workforce is available and trained to perform assigned tasks; (xii) weather patterns and rain/snowfall within normal seasonal ranges so as not to impact operations; (xiii) relations with interested parties, including First Nations and Native Americans, remain productive; (xiv) maintaining availability of water rights; (xv) factors do not arise that reduce available cash balances; and (xvi) there being no material increases in our current requirements to post or maintain reclamation and performance bonds or collateral related thereto. In addition, material risks that could cause actual results to differ from forward-looking statements include but are not limited to: (i) gold, silver and other metals price volatility; (ii) operating risks; (iii) currency fluctuations; (iv) increased production costs and variances in ore grade or recovery rates from those assumed in mining plans; (v) community relations; and (vi) litigation, political, regulatory, labor and environmental risks. For a more detailed discussion of such risks and other factors that may impact expected future results, see the Company's 2025 Form 10-K filed on February 17, 2026 and Form 10-Q expected to be filed on August 4, 2026. The Company undertakes no obligation and has no intention of updating forward-looking statements other than as may be required by law. Cautionary Statements to Investors on Reserves and Resources This news release uses the terms "mineral resources", "measured mineral resources", "indicated mineral resources" and "inferred mineral resources." Mineral resources that are not mineral reserves do not have demonstrated economic viability. You should not assume that all or any part of measured or indicated mineral resources will ever be converted into mineral reserves. Further, inferred mineral resources have a great amount of uncertainty as to their existence and as to whether they can be mined legally or economically, and an inferred mineral resource may not be considered when assessing the economic viability of a mining project, and may not be converted to a mineral reserve. The Company reports reserves and resources under the SEC’s mining disclosure rules ("S-K 1300") and Canada’s National Instrument 43-101 – Standards of Disclosure for Mineral Projects ("NI 43-101") because the Company is a "reporting issuer" under Canadian securities laws. Unless otherwise indicated, all resource and reserve estimates contained in this press release have been prepared in accordance with S-K 1300 as well as NI 43-101. Qualified Person (QP) Kurt D. Allen, MSc., CPG, VP-Exploration of Hecla Mining Company, Paul W. Jensen, MSc., CPG, Chief Geologist of Hecla Limited, and Matt Blattman, P.E., RM-SME, MMSA, VP-Technical Services serve as Qualified Persons under S-K 1300 and NI 43-101 for Hecla’s mineral projects. Mr. Allen supervised the preparation of the scientific and technical information concerning exploration activities while Mr. Jensen supervised the preparation of mineral resources for this news release. Mr. Blattman supervised the preparation of the mineral reserves for this news release. Technical Report Summaries for the Company’s Greens Creek, Lucky Friday and Keno Hill properties are filed as exhibits 96.1, 96.2 and 96.4, respectively, to the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, and are available at www.sec.gov. Information regarding data verification, surveys and investigations, quality assurance program and quality control measures and a summary of analytical or testing procedures for (i) the Greens Creek Mine are contained in its Technical Report Summary and in its NI 43-101 technical report titled "Technical Report for the Greens Creek Mine" effective date December 31, 2018, (ii) the Lucky Friday Mine are contained in its Technical Report Summary and in its NI 43-101 technical report titled "Technical Report for the Lucky Friday Mine Shoshone County, Idaho, USA" effective date April 2, 2014, and (iii...) Keno Hill is contained in its Technical Report Summary titled "S-K 1300 Technical Report Summary on the Keno Hill Mine, Yukon, Canada" and in its NI 43-101 technical report titled "Technical Report on the Keno Hill Mine, Yukon, Canada" effective date December 31, 2023. Also included in each Technical Report Summary and technical report listed above is a description of the key assumptions, parameters and methods used to estimate mineral reserves and resources and a general discussion of the extent to which the estimates may be affected by any known environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant factors. Information regarding data verification, surveys and investigations, quality assurance program and quality control measures and a summary of sample, analytical or testing procedures are contained in NI 43-101 technical reports prepared for Klondex Mines Ltd. for (i) the Fire Creek Mine (technical report dated March 31, 2018), (ii) the Hollister Mine (technical report dated May 31, 2017, amended August 9, 2017), and (iii) the Midas Mine (technical report dated August 31, 2014, amended April 2, 2015). Information regarding data verification, surveys and investigations, quality assurance program and quality control measures and a summary of sample, analytical or testing procedures are contained in a NI 43-101 technical reports prepared for ATAC Resources Ltd. for (i) the Osiris Project (technical report dated July 28, 2022) and (ii) the Tiger Project (technical report dated February 27, 2020). Copies of these technical reports are available under the SEDAR profiles of Klondex Mines Unlimited Liability Company and ATAC Resources Ltd., respectively, at www.sedar.com (the Fire Creek technical report is also available under Hecla’s profile on SEDAR). Mr. Jensen reviewed and verified information regarding drill sampling, data verification of all digitally collected data, drill surveys and specific gravity determinations relating to all the mines. The review encompassed quality assurance programs and quality control measures including analytical or testing practice, chain-of-custody procedures, sample storage procedures and included independent sample collection and analysis. This review found the information and procedures meet industry standards and are adequate for Mineral Resource and Mineral Reserve estimation and mine planning purposes. Reconciliation of Costs Applicable to Sales to Cash Cost, Before By-product Credits and Cash Cost, After By-product Credits (non-GAAP) and All-In Sustaining Cost, Before By-product Credits and All-In Sustaining Cost, After By-product Credits (non-GAAP) The tables below present reconciliations between the most comparable GAAP measure of costs applicable to sales to the non-GAAP measures of (i) Cash Cost, Before By-product Credits, (ii) Cash Cost, After By-product Credits, (iii) AISC, Before By-product Credits and (iv) AISC, After By-product Credits for our operations and for the Company for the three and six months ended June 30, 2026, the three months ended March 31, 2026, the three months ended December 31, 2025, September 30, 2025, and the three and six months ended June 30, 2025. Cash Cost, After By-product Credits, per Ounce and AISC, After By-product Credits, per Ounce are measures developed by precious metals companies (including the Silver Institute and the World Gold Council) in an effort to provide a uniform standard for comparison purposes. There can be no assurance, however, that these non-GAAP measures as the Company reports them are the same as those reported by other mining companies. Cash Cost, After By-product Credits, per Ounce is an important operating statistic that the Company utilizes to measure each mine's operating performance. The Company uses AISC, After By-product Credits, per Ounce as a measure of our mines' net cash flow after costs for reclamation and sustaining capital. This is similar to the Cash Cost, After By-product Credits, per Ounce non-GAAP measure the Company reports, but also includes reclamation and sustaining capital costs. Current GAAP measures used in the mining industry, such as cost of goods sold, do not capture all the expenditures incurred to discover, develop and sustain silver and gold production. Cash Cost, After By-product Credits, per Ounce and AISC, After By-product Credits, per Ounce also allow us to benchmark the performance of each of our mines versus those of our competitors. As a silver and gold mining company, we also use these statistics on an aggregate basis - aggregating the Greens Creek and Lucky Friday mines to compare our performance with that of other silver mining companies. Similarly, these statistics are useful in identifying acquisition and investment opportunities as they provide a common tool for measuring the financial performance of other mines with varying geologic, metallurgical and operating characteristics. Cash Cost, Before By-product Credits and AISC, Before By-product Credits include all direct and indirect operating cash costs related directly to the physical activities of producing metals, including mining, processing and other plant costs, third-party refining expense, on-site general and administrative costs, royalties and mining production taxes. AISC, Before By-product Credits for each mine also includes reclamation and sustaining capital costs. AISC, Before By-product Credits for our consolidated silver properties also includes corporate costs for general and administrative expense and sustaining capital costs. By-product credits include revenues earned from all metals other than the primary metal produced at each unit. As depicted in the tables below, by-product credits comprise an essential element of our silver unit cost structure, distinguishing our silver operations due to the polymetallic nature of their orebodies. In addition to the uses described above, Cash Cost, After By-product Credits, per Ounce and AISC, After By-product Credits, per Ounce provide management and investors an indication of operating cash flow, after consideration of the average price, received from production. The Company also uses these measurements for the comparative monitoring of performance of our mining operations period-to-period from a cash flow perspective. 2026 Guidance, Current Estimates: Reconciliation of Costs Applicable to Sales to Non-GAAP Measures Reconciliation of Income from Continuing Operations (GAAP) to Adjusted EBITDA from Continuing Operations (non-GAAP) This release refers to the non-GAAP measures of adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") from continuing operations, which is a measure of our operating performance. Adjusted EBITDA from continuing operations is calculated as income from continuing operations before the following items: interest expense, income and mining taxes, depreciation, depletion, and amortization expense, ramp-up and suspension costs, gains and losses on disposition of assets, foreign exchange gains and losses, write down of property, plant and equipment, fair value adjustments, net, interest and other income, provisions for closed operations and environmental matters, stock-based compensation, provisional price gains, monetization of zinc and lead hedges and inventory adjustments. Management believes that, when presented in conjunction with comparable GAAP measures, adjusted EBITDA is useful to investors in evaluating our operating performance and ability to meet our debt obligations. The following table reconciles income from continuing operations to adjusted EBITDA from continuing operations: Reconciliation of Cash Provided by Operating Activities from Continuing Operations (GAAP) to Free Cash Flow from Continuing Operations (non-GAAP) This release refers to a non-GAAP measure of free cash flow from continuing operations, calculated as cash provided by operating activities from continuing operations, less capital investments. Management believes that, when presented in conjunction with comparable GAAP measures, free cash flow from continuing operations is useful to investors in evaluating our operating performance. The following table reconciles cash provided by operating activities from continuing operations to free cash flow from continuing operations: View source version on businesswire.com: https://www.businesswire.com/news/home/20260804948485/en/ Contacts For further information, please contact: Mike ParkinVice President - Strategy and Investor Relations Cheryl TurnerInvestor Relations Coordinator Investor RelationsEmail: [email protected] Website: http://www.hecla.com

Continued High-Grade Discoveries at Midas and Keno Hill Extend Key Mineralized Trends and Support District-Scale Growth Targets COEUR D'ALENE, Idaho, July 29, 2026--(BUSINESS WIRE)--Hecla Mining Company (NYSE: HL) today reported positive second quarter 2026 exploration and definition drilling results from its Keno Hill, Midas, and Greens Creek properties, highlighted by a significant extension of high-grade mineralization at Keno Hill toward the historic Hector-Calumet Mine and discovery of new high-grade veins at Midas. The Company also advanced exploration programs across its portfolio, by initiating drilling at Hollister and finalizing drill pad construction at Aurora in preparation for drilling in August. "Our exploration teams delivered another quarter of tangible progress toward our district-scale growth targets," said Kurt Allen, Vice President of Exploration. "The extension of the high-grade Bermingham trend toward Hector-Calumet and new discovery at Midas are exactly the kind of results that support our long-term reserve growth strategy across the portfolio." SECOND QUARTER 2026 HIGHLIGHTS Bermingham Deep high-grade trend extended toward the historic Hector-Calumet Mine. Drilling extended this mineralization 165 feet to the northeast (hole 935C: 62.7 oz/ton silver over 10.2 feet) and 165 feet to the southwest along the Footwall Vein (hole 936C: 44.6 oz/ton silver over 10.1 feet). The trend is now traceable over 800 feet and remains open toward both the Bermingham reserve and Hector-Calumet (Figure 1). Encouraging step-outs at the Bermingham Deep Main 2 Vein. Hole 936B returned 21.0 oz/ton silver over 5.8 feet, and hole 940 intersected a 2.5-foot interval bearing high-grade silver minerals (assays pending), generating multiple high-priority step-out targets in Bermingham Deep. New high-grade vein discoveries at Midas. The first vein returned 0.50 oz/ton gold and 3.1 oz/ton silver over 1.8 feet, including a higher-grade interval of 1.56 oz/ton gold and 9.7 oz/ton silver over 0.6 feet (Figure 2). Both veins remain open along strike, with follow-up drilling planned for Q3. Sinter Offset Southeast program completed. The eight-hole program defined a gold-bearing structure over 2,750 feet of strike length. Drilling will now pause as assays are received and an initial resource estimate is generated. Metallurgical, geotechnical, and infill drilling on track at Midas. Hole DMC-00485 returned 0.30 oz/ton gold and 4.0 oz/ton silver over 6.8 feet true width. All three planned metallurgical and geotechnical holes have been completed, with analytical testing in progress. INVESTMENT AND STRATEGY During Q2 2026, the Company invested $11.3 million in exploration and corporate development (and $0.4 million in pre-development) activities, focused on high-impact discovery drilling at Keno Hill in Yukon and Midas in Nevada, and resource expansion programs at our producing assets. This strategy balances district-scale discovery with near-mine resource definition and reserve extension. Guidance for 2026 remains at $55 million investment in exploration and pre-development. PRODUCING ASSET RESOURCE DEFINITION Underground definition drilling programs at Greens Creek, Keno Hill, and Lucky Friday continue to define and expand mineralization near resource boundaries, converting Inferred resources and identifying reserve extension opportunities. Greens Creek Definition drilling at Greens Creek continued to delineate and step out from existing resources using three underground drilling rigs. Assay results have been received from the East, 200s, 5250, Gallagher and Upper Plate zones. Notable intercepts include 169.5 oz/ton silver, 0.55 oz/ton gold, 5.8% zinc, and 3.2% lead over 8.4 feet in the East Zone, and 20.8 oz/ton silver, 0.13 oz/ton gold, 4.8% zinc, and 2.6% lead over 39.8 feet in the Gallagher Zone. Several exceptional drilling intercepts were had in the 200s Zone, including 92.7 oz/ton silver, 0.03 oz/ton gold, 5.5% zinc, and 3.1% lead over 7.7 feet. Keno Hill At Keno Hill, one definition drilling rig continued to define and expand mineralization in the Arctic Zone at the Bermingham Mine. One intercept through the Footwall Vein returned 138.0 oz/ton silver, 0.6% zinc, and 1.5% lead over 3.1 feet, upgrading the resource. Another drillhole intersected 24.3 oz/ton silver, 0.1% zinc, 1.6% lead over 8.5 feet, 40 feet from current resources in the same vein. Lucky Friday Definition drilling has continued on the Intermediate veins and the UCB corridor (30 vein) at Lucky Friday, upgrading the resource. Drilling highlights include an intercept of 12.6 oz/ton silver, 11.4% zinc, and 11.4% lead over 10.5 feet in the 30 vein. EXPLORATION PROGRAMS Keno Hill: Bridging Bermingham and the Historic Hector-Calumet Mine This quarter's most significant regional result was the extension of the Bermingham Deep trend — first discovered and reported in late 2025 — toward Hector-Calumet, one of the highest-grade past-producing silver mines in the district, having produced approximately 96 million ounces of silver and interpreted to share a common mineralizing fluid source with Bermingham. Drilling extended the trend 165 feet to the northeast (hole 935C) and 165 feet to the southwest along the Footwall Vein (hole 936C) (Figure 1). The trend has now been traced over 800 feet of strike length and is open in both directions toward the Bermingham reserve and toward Hector-Calumet. These intercepts provide a clear exploration vector into the significant volume of untested and prospective rock between the two systems — an excellent example of our systematic exploration approach turning management's bullish view of Keno Hill's long-term exploration potential into reality. At Bermingham Deep, step-out drilling in the Bermingham Main Vein 2 supported emerging grade continuity, with holes 936B and 940 both returning mineralized intercepts and generating multiple high-priority step-out targets. Having both the Footwall and Bermingham Main 2 veins significantly mineralized indicates a robust hydrothermal system and its strong potential to host additional economic mineralization. Detailed exploration drill assay highlights can be found in Table A at the end of this release. Midas: New Discovery and Continued Resource Definition The Sinter–Pogo Gap target area, situated between two previously identified high-grade zones, delivered Midas's newest vein discovery this quarter (Figure 2). Drilling intersected two new, narrow, well-developed veins with textures and mineralogy consistent with historic Midas production, reinforcing management's view that the broader SE pediment area hosts significant potential for additional, impactful, Midas-like discoveries. The second vein is similar in texture, mineralogy, and thickness to the first and is pending assay results. Both new veins remain open along strike and are prioritized for Q3 follow-up. Elsewhere on the property, the completed eight-hole Sinter Offset Southeast program returned several gold-bearing structures with positive grades over narrow widths; drilling will now pause as assays are received and next steps are evaluated. Infill and metallurgical drilling also advanced, with hole DMC-00485 returning 0.30 oz/ton gold and 4.0 oz/ton silver over 6.8 feet true width, including three narrower intervals above 0.6 oz/ton gold. Assays are pending for two of the three completed metallurgical and geotechnical holes. Together, these programs have kept the project on track toward a potential mine restart decision. Detailed exploration drill assay highlights can be found in Table A at the end of this release. Greens Creek, Hollister, and Aurora: Program Updates At Greens Creek, exploration drilling at Zinc Creek, Gallagher, and 5250 Offset continued to refine the district geological model, with the intense alteration observed in Zinc Creek drilling flagged as a priority for Q3 follow-up. Hollister drilling commenced on schedule in July and will test four high-priority target areas. At Aurora, site preparation is underway ahead of drilling which is expected to begin in August. The Company's exploration programs continue to ramp up companywide, reflecting an expanding cadence of exploration activity heading into the second half of 2026. With multiple veins and trends still open along strike and at depth, and programs at Hollister and Aurora beginning, the Company expects continued exploration momentum through the second half of 2026. Planned Q3 activity includes follow-up drilling on the Midas Sinter–Pogo Gap veins, further testing of the Bermingham–Hector-Calumet trend, additional Bermingham Deep step-outs, and ramp-up of the newly initiated Hollister and Aurora programs. Overall, the planned programs remain well positioned to achieve our stated goals of reaching a restart decision in Nevada and expanding resources and reserves at the mine sites. ABOUT HECLA Founded in 1891, Hecla Mining Company (NYSE: HL) is the largest silver producer in the United States and Canada. In addition to operating mines in Alaska and Idaho, the Company is ramping up a mine in the Yukon, Canada, and owns a number of exploration and pre-development projects in world-class silver and gold mining districts throughout North America. Cautionary Statement Regarding Forward Looking Statements, Including 2026 Outlook This news release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbor created by such sections and other applicable laws, including Canadian securities laws. Words such as "may", "will", "should", "expects", "intends", "projects", "believes", "estimates", "targets", "anticipates" and similar expressions are used to identify these forward-looking statements. Such forward-looking statements may include, without limitation: (i) planned exploration drilling at Aurora in August; (ii) the Company’s long-term reserve growth strategy; (iii) planned follow-up drilling on new veins at Midas; (iv) the Sinter-Pogo Gap target area has potential for additional, impactful, Midas-like discoveries, and there is plans for an initial resource estimate to be generated for Sinter Offset; (v) the robust hydrothermal system at Bermingham mine having strong potential to host additional economic mineralization; and (vi) the potential to restart operations at Midas; The material factors or assumptions used to develop such forward-looking statements or forward-looking information include that the Company’s plans for development and production will proceed as expected and will not require revision as a result of risks or uncertainties, whether known, unknown or unanticipated, to which the Company’s operations are subject. Estimates or expectations of future events or results are based upon certain assumptions, which may prove to be incorrect, which could cause actual results to differ from forward-looking statements. Such assumptions, include, but are not limited to: (i) there being no significant change to current geotechnical, metallurgical, hydrological and other physical conditions; (ii) permitting, development, operations and expansion of the Company’s projects being consistent with current expectations and mine plans; (iii) political/regulatory developments in any jurisdiction in which the Company operates being consistent with its current expectations; (iv) the exchange rate for the USD/CAD being approximately consistent with current levels; (v) certain price assumptions for gold, silver, lead and zinc; (vi) prices for key supplies being approximately consistent with current levels; (vii) the accuracy of our current mineral reserve and mineral resource estimates; (viii) there being no significant changes to the availability of employees, vendors and equipment; (ix) the Company’s plans for development and production will proceed as expected and will not require revision as a result of risks or uncertainties, whether known, unknown or unanticipated; (x) counterparties performing their obligations under hedging instruments and put option contracts; (xi) sufficient workforce is available and trained to perform assigned tasks; (xii) weather patterns and rain/snowfall within normal seasonal ranges so as not to impact operations; (xiii) relations with interested parties, including First Nations and Native Americans, remain productive; (xiv) maintaining availability of water rights; (xv) factors do not arise that reduce available cash balances; and (xvi) there being no material increases in our current requirements to post or maintain reclamation and performance bonds or collateral related thereto. In addition, material risks that could cause actual results to differ from forward-looking statements include but are not limited to: (i) gold, silver and other metals price volatility; (ii) operating risks; (iii) currency fluctuations; (iv) increased production costs and variances in ore grade or recovery rates from those assumed in mining plans; (v) community relations; and (vi) litigation, political, regulatory, labor and environmental risks. For a more detailed discussion of such risks and other factors, see the Company's 2025 Form 10-K filed on February 17, 2026, and Form 10-Q filed on May 5, 2026, for a more detailed discussion of factors that may impact expected future results. The Company undertakes no obligation and has no intention of updating forward-looking statements other than as may be required by law. Cautionary Statements to Investors on Reserves and Resources This news release uses the terms "reserves", "mineral resources", "measured mineral resources", "indicated mineral resources" and "inferred mineral resources." Mineral resources that are not mineral reserves do not have demonstrated economic viability. You should not assume that all or any part of measured or indicated mineral resources will ever be converted into mineral reserves. Further, inferred mineral resources have a great amount of uncertainty as to their existence and as to whether they can be mined legally or economically, and an inferred mineral resource may not be considered when assessing the economic viability of a mining project, and may not be converted to a mineral reserve. The Company reports reserves and resources under the SEC’s mining disclosure rules ("S-K 1300") and Canada’s National Instrument 43-101 – Standards of Disclosure for Mineral Projects ("NI 43-101") because the Company is a "reporting issuer" under Canadian securities laws. Unless otherwise indicated, all resource and reserve estimates contained in this press release have been prepared in accordance with S-K 1300 as well as NI 43-101. Qualified Person (QP) Kurt D. Allen, MSc., CPG, VP-Exploration of Hecla Mining Company and Paul W. Jensen, MSc., CPG, Chief Geologist of Hecla Limited, serve as a Qualified Persons under S-K 1300 and NI 43-101 for Hecla’s mineral projects. Mr. Allen supervised the preparation of the scientific and technical information concerning exploration activities while Mr. Jensen supervised the preparation of mineral resources for this news release. Technical Report Summaries for the Company’s Greens Creek, Lucky Friday and Keno Hill properties are filed as exhibits 96.1 - 96.4, respectively, to the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 and are available at www.sec.gov. Information regarding data verification, surveys and investigations, quality assurance program and quality control measures and a summary of analytical or testing procedures for (i) the Greens Creek Mine are contained in its Technical Report Summary and in its NI 43-101 technical report titled "Technical Report for the Greens Creek Mine" effective date December 31, 2018, (ii) the Lucky Friday Mine are contained in its Technical Report Summary and in its NI 43-101 technical report titled "Technical Report for the Lucky Friday Mine Shoshone County, Idaho, USA" effective date April 2, 2014, and (iii) Keno Hill is contained in its Technical Report Summary titled "S-K 1300 Technical Report Summary on the Keno Hill Mine, Yukon, Canada" and in its NI 43-101 technical report titled "Technical Report on the Keno Hill Mine, Yukon, Canada" effective date December 31, 2023. Also included in each Technical Report Summary and technical report listed above is a description of the key assumptions, parameters and methods used to estimate mineral reserves and resources and a general discussion of the extent to which the estimates may be affected by any known environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant factors. Information regarding data verification, surveys and investigations, quality assurance program and quality control measures and a summary of sample, analytical or testing procedures are contained in NI 43-101 technical reports prepared for Klondex Mines Ltd. for (i) the Fire Creek Mine (technical report dated March 31, 2018), (ii) the Hollister Mine (technical report dated May 31, 2017, amended August 9, 2017), and (iii) the Midas Mine (technical report dated August 31, 2014, amended April 2, 2015). Information regarding data verification, surveys and investigations, quality assurance program and quality control measures and a summary of sample, analytical or testing procedures are contained in a NI 43-101 technical reports prepared for ATAC Resources Ltd. for (i) the Osiris Project (technical report dated July 28, 2022) and (ii) the Tiger Project (technical report dated February 27, 2020). Copies of these technical reports are available under the SEDAR profiles of Klondex Mines Unlimited Liability Company and ATAC Resources Ltd., respectively, at www.sedar.com (the Fire Creek technical report is also available under Hecla’s profile on SEDAR). Mr. Jensen reviewed and verified information regarding drill sampling, data verification of all digitally collected data, drill surveys and specific gravity determinations relating to all the mines. The review encompassed quality assurance programs and quality control measures including analytical or testing practice, chain-of-custody procedures, sample storage procedures and included independent sample collection and analysis. This review found the information and procedures meet industry standards and are adequate for Mineral Resource and Mineral Reserve estimation and mine planning purposes. Table AAssay Results – Q2/2026 View source version on businesswire.com: https://www.businesswire.com/news/home/20260729134476/en/ Contacts For further information, please contact: Mike ParkinVice President – Strategy and Investor Relations Cheryl TurnerInvestor Relations Coordinator Investor RelationsEmail: [email protected] Website: http://www.hecla.com

It has been about a month since the last earnings report for Hecla Mining (HL). Shares have lost about 8.2% in that time frame, underperforming the S&P 500. Will the recent negative trend continue leading up to its next earnings release, or is Hecla Mining due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts. Hecla Mining posted first-quarter 2026 earnings of 24 cents per share, missing the Zacks Consensus Estimate of 27 cents by 11%. Revenues came in at $411 million, up 100.3% year over year but 13.3% below the consensus mark of $474 million.  The quarter’s metal-price environment was supportive, with realized silver at $82.70 per ounce (up 146% year over year) and realized gold at $4,899 per ounce (up 46% year over year). This, along with higher sales volumes, led to the improvement in the quarter. Total cost of sales in the first quarter was $158 million, up 15.8% from $136.7 million in the year-ago quarter. Gross profit surged 269% to $253 million from $69 million a year earlier. Adjusted EBITDA from continuing operations surged 243% to a record $265 million. Hecla Mining reported silver production of around 3.9 million ounces, down 5% year over year. Higher output at Greens Creek was offset by declines at Lucky Friday and Keno Hill. Gold production dipped 6% year over year to 12,886 ounces. Silver payable ounces sold in the quarter were up 2% in the quarter to around 3.575 million ounces. Gold payable ounces sold were up 10% to 11,533 ounces. Greens Creek produced nearly 2.18 million ounces of silver, 8.7% higher than the last year quarter. Gold output was around 12,886 ounces, a 6% decline year over year. Lucky Friday produced 1.24 million ounces of silver in the quarter, a 7% decline from 1.33 million ounces in the year-ago quarter. At Keno Hill, silver production was about 0.49 million ounces, compared with 0.77 million ounces in the prior year quarter. Production was impacted by reduced power supply during extreme cold weather and lower silver milled grade. Management expects silver grade mined and milled to increase in the second quarter as sequencing improves. Hecla Mining generated cash flow from operating activities of around $183 million compared with $27.6 million in the prior year. Free cash flow was a record $144 million for the quarter, with all operations generating positive free cash flow. The company ended the quarter with cash and cash equivalents of around $588 million, a significant jump from $242.7 million at the end of 2025, benefiting from solid free cash flow and cash proceeds from the Casa Berardi sale. Total debt was reported at $266 million as of the quarter's end. Hecla redeemed its remaining $263 million of 7.25% Senior Notes on April 9, leaving the company with no long-term debt and a $225 million undrawn revolving credit facility (plus a $75 million accordion). Looking ahead, Hecla expects consolidated silver production of 15.1-16.5 million ounces in fiscal 2026. Consolidated gold production is expected to be 51-55 thousand ounces. Exploration and pre-development investments are expected to nearly double to $55 million in fiscal 2026, with heightened focus across Greens Creek, Keno Hill, Lucky Friday and Nevada (Midas, Hollister and Aurora). The company also noted progress on key site initiatives, including continued work on the Lucky Friday surface cooling project, which was 81% complete at year-end and remains on track for mid-2026 completion. It turns out, fresh estimates have trended upward during the past month. The consensus estimate has shifted 42.86% due to these changes. Currently, Hecla Mining has a great Growth Score of A, a grade with the same score on the momentum front. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy. Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. Notably, Hecla Mining has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Hecla Mining Company (HL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Never miss an important update on your stock portfolio and cut through the noise. Over 7 million investors trust Simply Wall St to stay informed where it matters for FREE. Hecla Mining (HL) has been drawing attention after recent trading left the stock down about 3% over the past month and roughly 19% over the past 3 months, prompting fresh questions about its valuation. See our latest analysis for Hecla Mining. At a share price of $17.54, Hecla’s recent moves tell a mixed story, with the stock up over the past week but seeing share price returns weaken over the past quarter, even as multi year total shareholder returns remain very large. If you are watching precious metals and related miners, this can be a useful moment to scan a broader set of silver producers using our discovery focused 9 top silver producer stocks With Hecla posting very large multi year total returns yet trading at $17.54 after recent share price weakness, the key question is whether the stock is now undervalued or if the market is already pricing in future growth. With Hecla Mining last closing at $17.54 against a narrative fair value of $25.80, the current setup centers on how production and margins could support that gap, using an 8.46% discount rate in the model. Read the complete narrative. Want the full story behind that valuation jump? The narrative leans on tighter output guidance, richer margins and a future earnings multiple that is usually reserved for market favorites. Result: Fair Value of $25.80 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, you still need to weigh risks such as higher capital and regulatory costs at Keno Hill, as well as potential shareholder dilution from deleveraging plans, which may challenge that upbeat view. Find out about the key risks to this Hecla Mining narrative. Hecla looks inexpensive compared with the narrative fair value of $25.80. Its P/E of 25.5x is above the US Metals and Mining industry at 21.8x, below the peer average at 32.8x, and close to a fair ratio of 27.8x. Is the margin of safety really as wide as it first appears? For a closer look at how this P/E gap stacks up against the industry, peers, and that fair ratio, the See what the numbers say about this price — find out in our valuation breakdown. With sentiment this mixed, it helps to look past the headlines and into the underlying data yourself, then decide how compelling the upside really feels. To see what is driving optimism, review the 2 key rewards. If Hecla has caught your eye, do not stop here. The market is full of other stocks that could fit your goals just as well. Target stronger value opportunities by scanning our list of 47 high quality undervalued stocks that combine quality fundamentals with attractive pricing. Build a steadier income stream by reviewing companies in the 10 dividend fortresses that focus on higher yields with staying power. Prioritize resilience by checking out the 62 resilient stocks with low risk scores designed to spotlight stocks with more robust risk profiles. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include HL. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]