Hecla Mining Eyes 20M+ Silver Ounces as Debt-Free Balance Sheet Builds Cash

Key Points

• Hecla Mining targets more than 20 million silver ounces annually over the medium to long term, compared with 2026 guidance of 15.1 million to 16.1 million ounces. Growth is expected from Keno Hill, potential Midas redevelopment, Nevada exploration and a possible Greens Creek expansion.
• The company’s long-life, low-cost North American operations generated strong cash flow, led by Greens Creek and Lucky Friday. Greens Creek is advancing a pyrite circuit that could add 1 million to 1.2 million silver ounces annually, while Hecla plans a record $55 million exploration budget in 2026.
• Hecla has no debt and is building cash, potentially approaching $1 billion if commodity prices remain favorable. Management said shareholder returns could become a consideration if sufficiently attractive investment opportunities do not emerge.

Hecla Mining NYSE: HL outlined an organic-growth strategy centered on its North American silver operations, long reserve lives and low capital-intensity projects, while signaling that its debt-free balance sheet could eventually support greater shareholder returns if investment opportunities do not emerge.

During a company presentation, management described Hecla as North America’s largest silver producer, with operating mines at Greens Creek in Alaska, Lucky Friday in Idaho and Keno Hill in the Yukon. The company also highlighted exploration and development properties in Nevada, Montana, Colorado and Washington state.

The presenter said Hecla’s operations and projects are located entirely in the United States and Canada, which it characterized as favorable mining jurisdictions. Management also emphasized the company’s 135-year history and said it was the lowest-cost producer among its peer group in 2025 on an all-in sustaining cost basis.

Reserve Life and Silver Exposure

Hecla said its average reserve mine life is 13.3 years, compared with an industry peer average of roughly 7.7 years. Management said the longer reserve life provides lower replacement risk, more predictable production and greater clarity for long-term capital allocation.

Silver represented approximately 68% of the company’s second-quarter 2026 revenue, following a level above 72% in the first quarter, according to the presentation. The company said its reserve base is also heavily weighted toward silver.

Management said fuel accounted for 3% of consolidated costs in the second quarter of 2026, limiting the company’s sensitivity to fluctuations in oil prices. Labor is its largest and most predictable cost input, the presenter said.

Hecla is guiding for 2026 silver production of 15.1 million to 16.1 million ounces. Over the medium and longer term, the company sees a path to production exceeding 20 million ounces annually through the ramp-up of Keno Hill, a potential restart at the Midas mine in Nevada, possible satellite resources in Nevada and a potential Keno Hill expansion.

Greens Creek Projects and Operating Results

Greens Creek, Hecla’s cornerstone mine in Alaska, has generated $2.4 billion in free cash flow since 2006, management said. In the second quarter of 2026, the mine produced 2.1 million ounces of silver and more than 14,000 ounces of gold. It generated nearly $130 million of free cash flow, with an all-in sustaining cost of negative $10.71 per ounce after byproduct credits.

The mine has a 12-year reserve life and is advancing two growth opportunities. The first is a pyrite concentrate circuit that could produce approximately 1 million to 1.2 million ounces of silver annually, along with 10,000 to 15,000 ounces of gold, once fully ramped up. Hecla is targeting first production in the fourth quarter of 2027 or the first half of 2028, followed by roughly a year of ramp-up.

The company is also evaluating the processing of dry-stack tailings at Greens Creek. Management said the material includes 10.6 million tons containing about 51 million ounces of silver and 600,000 ounces of gold, as well as other metals. Phase 3 metallurgical test work concluded in August, and the company is awaiting results.

Lucky Friday, Keno Hill and Nevada Exploration

At Lucky Friday, Hecla reported record second-quarter silver production of 1.5 million ounces. The Idaho mine produced a record 5.3 million ounces during 2025 and generated more than $87 million of free cash flow in the second quarter at all-in sustaining costs of slightly more than $17 per ounce.

Management said its Underhand Closed Bench mining method was adopted largely for safety at the deep, seismic mine, while also helping increase production. A surface cooling project is expected to be completed during the current month. The company said the project supports future mining at depth and is part of a three-phase plan extending capacity toward 2044, with the first phase due in 2028. Lucky Friday has a 15-year reserve mine life.

Keno Hill produced approximately 600,000 ounces of silver and generated nearly $15 million of free cash flow during the second quarter. The Yukon operation remains in an investment and ramp-up phase, with Hecla focused on completing permitting and capital investments toward its permitted 440-ton-per-day limit.

Hecla said it plans to invest a record $55 million in exploration this year, including $24 million for near-mine exploration, $16 million for Nevada growth and $10 million for generative and early-stage programs. In Nevada, the company is evaluating potential opportunities at Midas, Hollister and Aurora, each of which includes historic production or existing permitted milling infrastructure.

Balance Sheet and Capital Allocation

In response to an analyst question, management said the company has no debt and intends to maintain a “fortress balance sheet” through commodity cycles. The presenter said Hecla does not currently face a large wave of capital expenditures because its organic projects are relatively low capital intensity.

At current prices, management said the company could eventually approach $1 billion of cash on its balance sheet. If it does not identify material investments after reaching that point, the company said it would need to consider shareholder returns.

On year-end reserves and resources, management said disclosures are typically made in February and declined to provide specific guidance. The company said it uses factors including three-year trailing average prices, analyst forecasts and the forward curve when assessing reserve pricing, and expects to be in a “pretty healthy position.”

About Hecla Mining (NYSE:HL)

Hecla Mining Company NYSE: HL is a precious and base metals mining company focused primarily on the exploration, development, and production of silver, gold, lead, and zinc. The company sells concentrates and refined metals produced from its mining operations and also maintains a portfolio of exploration and development properties.

Founded in 1891, Hecla is one of the oldest U.S.-based mining companies. Its operating portfolio has included the Greens Creek silver, gold, lead, and zinc mine near Juneau, Alaska; the Lucky Friday silver, lead, and zinc mine in Idaho; the Keno Hill silver district in Yukon, Canada; and the Casa Berardi gold mine in Quebec, Canada.

Through these operations and related exploration activities, Hecla serves the North American metals market, with production and mineral assets located in the United States and Canada.

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