Earnings Analysis November 4, 2026

Hecla Mining ($HL) Q3 FY2026 Earnings Analysis: Revenue Beats Estimates, Record Free Cash Flow

Earnings Report

Revenue: $394.82 million (Year-over-year +24.9%, Estimated $340.20 million) ✅ Beat

EPS (Earnings Per Share): $0.22 (GAAP continuing operations, previous quarter $0.18; note that the $0.14 estimate is based on adjusted figures, resulting in a difference in accounting standards) ✅ Beat

Guidance: Upward revision · 2026 silver production 15.3 million~16.1 million ounces (lower bound raised), silver cash costs -$4.75~-$4.25 per ounce, total sustaining costs $11.50~12.50 per ounce, capital expenditures $198 million~214 million (downward revision)

Stock Price Reaction: Regular session (pre-announcement session) +13.36% ($14.975, as of 11-05 05:16 KST)

Highlights

Free Cash Flow of $151.23 million: More than doubled from $57.13 million in the same period last year, marking an all-time high.

Revenue of $394.82 million: Increased by 25% compared to the same period last year, representing the second-largest quarterly revenue in the company's history.

Cash of $692 million: Increased by more than 43% from the previous quarter, and with the new $500 million limit virtually untouched, the company remains in a debt-free state.

Keno Hill offset the production decline at Greens Creek by producing a quarterly record of approximately 1 million ounces. Greens Creek generated a quarterly record of $147 million in free cash flow on an asset basis.

Lowlights

Silver Production of 4.17 million ounces: Decreased by 9% from 4.58 million ounces in the same period last year. Year-over-year, Greens Creek decreased by approximately 18% and Lucky Friday by approximately 5%, while quarter-over-quarter, Greens Creek decreased by 6% and Lucky Friday by 17%.

Reduction in Keno Hill Throughput: Lowered to approximately 300 tons per day in Q4, with plans for further reductions starting in January 2027. Permit revisions are expected around mid-2029.

Total Sustaining Costs of $14.34 per ounce: Jumped from $6.07 in the previous quarter. This was caused by a 35% increase in cost of goods sold depending on the timing of sales and a decrease in byproduct credits.

This was a quarter where costs rose due to decreased production and increased sales volume. Lucky Friday's total sustaining cost also remained at a higher level than other mines at $27.68 per ounce.

What the Company Said

CEO Rob Krcmarov noted that the record cash generation and debt-free financial structure represent the strongest position in the company's history. The market appears to have reflected both this cash flow and the improvement in cost guidance.

Market Reaction and Future Outlook

The simultaneous presentation of record free cash flow, a debt-free financial structure, and improved silver cost guidance appears to be the driver behind the stock price increase.

While the utilization rate decreases due to maintenance at Greens Creek in Q4, it is necessary to confirm whether annual silver production falls within the 15.3 million to 16.1 million ounces range.

The progress of the Keno Hill permit revision and the Keno Hill production guidance to be presented in February 2027 must be monitored.

The next key point to watch is whether the initial economic results for the three pathways—the Greens Creek pyrite concentrate circuit and dry stack reprocessing—are released.

Earnings Call Key Summary

Once the earnings call concludes and the company script is released, the key takeaways from the call will be added to this section. We will select and summarize only the most important details, such as how management explained performance and outlook, and what analysts asked.