HECLA MINING CO/DE/
For the period ended Jun 30, 2026. Filed Aug 4, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Aug 4, 2026
HL$14.74+2.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-05.
0001193125-26-206810
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsOverviewConsolidated Results of OperationsFinancial Liquidity and Capital ResourcesContractual Obligations, Contingent Liabilities and CommitmentsOff-Balance Sheet ArrangementsGuarantor SubsidiariesCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-04.
0001193125-26-333090
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsOverviewConsolidated Results of OperationsFinancial Liquidity and Capital ResourcesContractual Obligations, Contingent Liabilities and CommitmentsOff-Balance Sheet ArrangementsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 173 previous paragraphs and 184 current paragraphs.
77 unchanged; 66 reworded; 36 added; 26 removed; 4 previous and 5 current paragraphs rearranged.
Tables are not compared: 25 previous and 23 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (36)
Current report
Production- We produced 8.1 million ounces of silver, compared to 8.6 million ounces of silver in 2025, primarily due to lower grades at Keno Hill and throughput at Greens Creek, partly offset by higher grades at Lucky Friday. At Greens Creek, we produced 27,085 ounces of gold, a decrease compared to 31,509 ounces produced in 2025, driven by lower grade and throughput.
Current report
Revenue Generation - Generated sales of $745.3 million, a 76% increase over 2025.
Current report
Income from continuing operations and shareholder returns- Generated income from continuing operations of $282.5 million, compared to $51.2 million in the 2025 period and returned $5.0 million in dividends to common stockholders.
Current report
We are evaluating several organic growth opportunities that may leverage existing infrastructure, operational expertise, and permitting frameworks.
Current report
At Greens Creek, we are evaluating a proposed pyrite concentrate circuit that, if developed, could recover additional silver and gold that currently report to tailings. Preliminary engineering and metallurgical work indicates the potential for incremental future silver and gold production from this circuit, possibly as soon as late 2027 or the first half of 2028. These estimates are preliminary and remain subject to significant technical, economic, permitting, metallurgical, and other uncertainties, and the project has not been approved for construction.
Current report
We are also evaluating the potential to reprocess all or part of the existing dry-stack tailings facility at Greens Creek. This project could recover additional silver and gold currently contained in tailings material, subject to further metallurgical testing and the identification of a suitable third-party processing arrangement.
Current report
Lastly, we continue to evaluate the potential restart of our fully permitted Midas mill in northern Nevada. Any restart would depend on, among other things, our ability to expand the existing high-grade gold and silver resource to a scale sufficient to support a sustainable operation.
Current report
Each of these opportunities remains in varying stages of engineering, metallurgical evaluation, permitting review, and economic analysis. The timing, scope, and ultimate development of these opportunities may influence future capital allocation decisions, exploration expenditures, and sustaining or growth capital requirements, and may require the receipt of additional permits, approvals, and other authorizations. We have not approved construction or development of any of these projects, and any decision to proceed would require further technical, economic, and regulatory review and approval by management and, where applicable, our Board of Directors.
Current report
There is no assurance that any of these opportunities will be developed, or that if developed, will be completed on the timeline or with the results currently anticipated.
Current report
A reconciliation of these non-GAAP measures to costs applicable to sales, the most comparable GAAP measure, can be found below in Reconciliation of Costs Applicable to Sales (GAAP) 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).
Current report
For the three and six months ended June 30, 2026, Other includes sales of $10.8 million (2025: $6.6 million) and $15.5 million (2025: $13.7 million) and costs applicable to sales of $10.3 million (2025: $6.6 million) and $15.2 million (2025: $13.7 million), respectively, from our environmental remediation services in the Yukon.
Current report
For the three months ended June 30, 2026 we reported income from continuing operations of $117.9 million (2025: $26.9 million) and net income applicable to common stockholders of $117.7 million (2025: $57.6 million). The following were the significant drivers of the increase in income from continuing operations:
Current report
Other income increased by $5.7 million primarily due to higher interest earned on the increased cash position and accretion income on our deferred cash consideration received as part of the consideration for the Hecla Quebec sale.
Current report
Income and mining tax expense decreased by $3.3 million primarily due to the release of a historical valuation allowance related to our Nevada subsidiary, partly offset by the revaluation of the Nevada subsidiary's deferred balance now that they are combined into the Hecla Mining Company Consolidated Group.
Current report
General and administrative expense increased by $2.6 million due to increased headcount.
Current report
Exploration and pre-development expense increased by $2.9 million due to increased activity across our exploration portfolio.
Current report
Interest expense decreased by $14.3 million primarily due to lower total debt levels compared to the same period of 2025 following redemption of $263 million and $212 million of Senior Notes in April 2026 and August 2025, respectively.
Current report
Excludes depreciation, depletion and amortization.
Current report
A reconciliation of these non-GAAP measures to costs applicable to sales, the most comparable GAAP measure, can be found below in Reconciliation of Costs Applicable to Sales (GAAP) 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).
Current report
Capital investments in the current year were $1.0 million lower compared to the same period in 2025. Current year costs included $7.3 million for surface infrastructure and equipment, $4.8 million for primary ore access development, $2.5 million for mining equipment and related costs, $2.2 million for definition drilling and $1.1 million on mill equipment.
Current report
Production of all metals was negatively impacted during the six months ended June 30, 2026, compared to the same period in 2025, primarily due to lower tons milled and grades.
Current report
A reconciliation of these non-GAAP measures to costs applicable to sales, the most comparable GAAP measure, can be found below in Reconciliation of Costs Applicable to Sales (GAAP) 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).
Current report
Gross profit increased by $49.3 million for the three months ended June 30, 2026 compared to the comparable period in 2025, reflecting higher realized prices for silver, zinc, and lead and higher sales volumes for silver and lead reflecting higher production resulting from improved grades.
Current report
Capital investments increased by $2.3 million for the six months ended June 30, 2026, compared to the same period in 2025. Significant capital expenditures during the six months ended June 30, 2026, included capital development of $13.5 million, $7.3 million on tailings facility pond 5 construction, $2.5 million for the surface cooling project, $2.6 million for a shaft rehabilitation, $1.5 million for definition drilling, $1.5 million for underground equipment, $1.2 million on ramp work and $1.1 million on a cone crusher replacement.
Current report
For the six months ended June 30, 2026, Cash Cost, After By-product Credits, per Silver Ounce was largely in line with the same period in 2025 as higher silver production and by-product credits were offset by higher as-produced costs, primarily related to higher profit sharing. AISC, After By-product Credits, per Silver Ounce were higher than the same period in 2025 primarily due to higher sustaining capital investments.
Current report
Excludes depreciation, depletion and amortization.
Current report
During the six months ended June 30, 2026, Keno Hill recorded sales of $80.9 million (2025: $43.0 million), with the increase due to higher realized prices, partly offset by lower metals sales volumes driven by lower grades. As a result of higher revenues, Keno Hill generated gross profit of $31.2 million during the six months ended June 30, 2026 (2025: $1.3 million). During the six months ended June 30, 2026, Keno Hill recorded capital investments of $22.3 million, primarily related to $15.9 million for mine development and infrastructure, $3.3 million for mobile equipment, $1.5 million for phase 2 of the dry-stack tailings facility, $1.1 million for definition drilling and $0.5 million for permitting.
Current report
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)
Current report
For the three and six months ended June 30, 2026, Other includes $10.3 million (2025: $6.6 million) and $15.4 million (2025: $13.7 million) of costs applicable to sales, respectively, related to our environmental remediation services business.
Current report
Cash flows from discontinued operations for the six months ended June 30, 2026 have been presented in our condensed consolidated statements of cash flows. The discontinued operations reflect only the period prior to the disposal of Hecla Quebec on March 25, 2026, and are therefore not comparable to the six months ended June 30, 2025, which reflects a full six months of activity.
Removed paragraphs (26)
Previous report
Lucky Friday Surface Cooling Project Advancement -Construction of the surface cooling project continued with the project 81% complete and tracking for completion by mid-2026.
Previous report
Continuous Improvement - Keno Hill's recent track record of gross profit generation continued with $24.3 million of gross profit, driven by higher realized prices, partly offset by lower volumes sold, compared to a gross profit of $1.0 million in the first quarter of 2025.
Previous report
A reconciliation of these non-GAAP measures to total cost of sales, the most comparable GAAP measure, can be found below in Reconciliation of Total Cost of Sales (GAAP) 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).
Previous report
For the three months ended March 31, 2026, Other includes sales of $4.7 million and total cost of sales of $4.9 million from our environmental remediation services in the Yukon. For the three months ended March 31, 2025, Other includes sales and total cost of sales of $7.1 million.
Previous report
A reconciliation of these non-GAAP measures to total cost of sales, the most comparable GAAP measure, can be found below in Reconciliation of Total Cost of Sales (GAAP) 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).
Previous report
A reconciliation of these non-GAAP measures to total cost of sales, the most comparable GAAP measure, can be found below in Reconciliation of Total Cost of Sales (GAAP) 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).
Previous report
Reconciliation of Total Cost of 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)
Previous report
Other includes $4.9 million and $7.1 million of total cost of sales for the three months ended March 31, 2026, and 2025, respectively.
Previous report
we made repayments on our finance leases of $1.2 million and $1.6 million, respectively; and
Previous report
treasury stock acquisitions of $1.2 million.
Previous report
During the three months ended March 31, 2026 and 2025, cash provided by operating activities from discontinued operations was $11.3 million and $8.1 million, respectively. The increase in cash provided by operating activities related to higher operating income due to higher realized prices.
Previous report
During the three months ended March 31, 2026 and 2025, cash used in investing activities from discontinued operations was $8.8 million and $16.3 million, respectively. The decrease in investing activities related to the seasonal variations in our investments at Casa Berardi.
Previous report
During the three months ended March 31, 2026 and 2025, cash used in financing activities from discontinued operations was $8.4 million and $0.7 million, respectively, with the increase used in financing activities related to the early repayment of finance leases.
Previous report
On February 19, 2020, we completed an offering of $475 million in aggregate principal amount of our Senior Notes due February 15, 2028. The Senior Notes bear interest at a rate of 7.25% per year, with interest payable on February 15 and August 15 of each year, of which $212 million were partially redeemed on August 18, 2025. On April 9, 2026, we redeemed the outstanding Senior Notes of $263 million for $265.8 million, including $2.8 million of accrued interest. See Notes 8 and 14 of Notes to Condensed Consolidated Financial Statements (Unaudited) for more information.
Previous report
Presented below are Hecla’s unaudited interim condensed consolidating financial statements as required by Rule 3-10 of Regulation S-X of the Securities Exchange Act of 1934, as amended, resulting from the guarantees by certain of Hecla's subsidiaries of the Senior Notes (see Note 8 of Notes to Condensed Consolidated Financial Statements (Unaudited)for more information). The Guarantors consist of the following of Hecla's 100%-owned subsidiaries: Hecla Limited; Silver Hunter Mining Company; Rio Grande Silver, Inc.; Hecla MC Subsidiary, LLC; Hecla Silver Valley, Inc.; Burke Trading, Inc.; Hecla Montana, Inc.; Revett Silver Company; RC Resources, Inc.; Troy Mine Inc.; Revett Exploration, Inc.; Revett Holdings, Inc.; Mines Management, Inc.; Newhi, Inc.; Montanore Minerals Corp.; Hecla Alaska LLC; Hecla Greens Creek Mining Company; Hecla Admiralty Company; Hecla Juneau Mining Company; Klondex Holdings Inc.; Klondex Gold & Silver Mining Co.; Klondex Midas Holdings Limited; Klondex Aurora Mine Inc.; Klondex Hollister Mine Inc.; and Alexco Resource Corp. We completed the offering of the Senior Notes on February 19, 2020 under our shelf registration statement previously filed with the SEC.
Previous report
The unaudited interim condensed consolidating financial statements below have been prepared from our financial information on the same basis of accounting as the unaudited interim condensed consolidated financial statements set forth elsewhere in this report. Investments in the subsidiaries are accounted for under the equity method. Accordingly, the entries necessary to consolidate Hecla, the Guarantors, and our non-guarantor subsidiaries are reflected in the intercompany eliminations column. In the course of preparing consolidated financial statements, we eliminate the effects of various transactions conducted between Hecla and its subsidiaries and among the subsidiaries. While valid at an individual subsidiary level, such activities are eliminated in consolidation because, when taken as a whole, they do not represent business activity with third-party customers, vendors, and other parties. Examples of such eliminations include the following:
Previous report
Investments in subsidiaries. The acquisition of a company results in an investment in debt or equity capital on the records of the parent company and a contribution to debt or equity capital on the records of the subsidiary. Such investments and capital contributions are eliminated in consolidation.
Previous report
Capital contributions. Certain of Hecla's subsidiaries do not generate cash flow, either at all or that is sufficient to meet their capital needs, and their cash requirements are routinely met with inter-company advances from their parent companies. Generally on an annual basis, when not otherwise intended as debt, the Boards of Directors of such parent companies declare contributions of capital to their subsidiary companies, which increase the parents' investment and the subsidiaries' additional paid-in capital. Occasionally, parent companies may also subscribe for additional common shares of their subsidiaries. In consolidation, investments in subsidiaries and related additional paid-in capital are eliminated.
Previous report
Debt. At times, inter-company debt agreements have been established between certain of Hecla's subsidiaries and their parents. The related debt liability and receivable balances, accrued interest expense (if any) and income activity (if any), and payments of principal and accrued interest amounts (if any) by the subsidiary companies to their parents are eliminated in consolidation.
Previous report
Dividends. Certain of Hecla's subsidiaries which generate cash flow routinely provide cash to their parent companies through inter-company transfers. On at least an annual basis, the Boards of Directors of such subsidiary companies declare dividends to their parent companies, which reduces the subsidiaries' retained earnings and increases the parents' dividend income. In consolidation, such activity is eliminated.
Previous report
Deferred taxes. Our ability to realize deferred tax assets and liabilities is considered for two consolidated tax groups of subsidiaries within the United States: The Nevada U.S. Group and the Hecla U.S. Group. Within each tax group, all subsidiaries' estimated future taxable income contributes to the ability of their tax group to realize all such assets and liabilities. However, when Hecla's subsidiaries are viewed independently, we use the separate return method to assess the realizability of each subsidiary's deferred tax assets and whether a valuation allowance is required against such deferred tax assets. In some instances, a parent company or subsidiary may possess deferred tax assets whose realization depends on the future taxable incomes of other subsidiaries on a consolidated-return basis, but would not be considered realizable if such parent or subsidiary filed on a separate stand-alone basis. In such a situation, a valuation allowance is assessed on that subsidiary's deferred tax assets, with the resulting adjustment reported in the eliminations column of the guarantor and parent's financial statements, as is the case in the unaudited interim financial statements set forth below. The separate return method can result in significant eliminations of deferred tax assets and liabilities and related income tax provisions and benefits. Non-current deferred tax asset balances are included in other non-current assets on the consolidating balance sheets and make up a large portion of that item, particularly for the guarantor balances.
Previous report
Separate financial statements of the Guarantors are not presented because the guarantees by the Guarantors are joint and several and full and unconditional, except for certain customary release provisions, including: (1) the sale or disposal of all or substantially all of the assets of the Guarantor; (2) the sale or other disposition of the capital stock of the Guarantor; (3) the Guarantor is designated as an unrestricted entity in accordance with the applicable provisions of the indenture; (4) Hecla ceases to be a borrower as defined in the indenture; and (5) upon legal or covenant defeasance or satisfaction and discharge of the indenture.
Previous report
Unaudited Interim Condensed Consolidating Balance Sheets
Previous report
Unaudited Interim Condensed Consolidating Statements of Operations
Reworded paragraphs (66)
Previous wording
Hecla Mining Company stands as North America's premier silver producer, with a rich heritage dating back to 1891. Our operations at Greens Creek, Lucky Friday and Keno Hill combined to produce 37% of 2025 silver production in the U.S. and Canada, complemented by significant gold production from Greens Creek and our former Casa Berardi operation. Our strategic positioning in the stable jurisdictions of the U.S. and Canada provides us with distinct operational advantages and reduced political risk compared to our global peers. Our operational and strategic framework centers on four core pillars:
Current wording
Hecla Mining Company stands as North America's premier silver producer, with a rich heritage dating back to 1891. Our operations at Greens Creek, Lucky Friday, and Keno Hill combined to produce 37% of total 2025 silver production in the U.S. and Canada, complemented by significant gold production from Greens Creek. Our strategic positioning in the stable jurisdictions of the U.S. and Canada provides us with distinct operational advantages and reduced political risk compared to our global peers. Our operational and strategic framework centers on four core pillars:
Previous wording
Accounts receivable related to working capital adjustments of $16.6 million of which $15.6 million was received during April and the remaining $1.0 million is expected to be received in May
Current wording
Accounts receivable related to working capital adjustments of $16.6 million
Previous wording
Orezone has a set-off right to reduce the unpaid balance of the Deferred Contingent Cash or the Contingent Cash Consideration payments by 50% of the amount by which the financial assurance required by the Quebec government under the updated Casa Berardi closure plan exceeds $150 million, excluding increases caused by Orezone's post-closing actions. Our current estimate of that excess has been included in determining the fair values of the Deferred Cash consideration and Contingent Cash Consideration for the first gold-priced payment.
Current wording
Orezone has a set-off right to reduce the unpaid balance of the Deferred Cash Consideration payments by 50% of the amount by which the financial assurance required by the Quebec government under the updated Casa Berardi closure plan exceeds $150 million, excluding increases caused by Orezone's post-closing actions. The closure excess amount has been included in determining the fair value of the Deferred Cash Consideration.
Previous wording
The sale of Hecla Quebec represents a disciplined portfolio optimization and focuses capital allocation on our silver assets, which we believe to represent significant growth and value creation opportunities. We have solidified our revenue exposure to silver and we are focused on operating in what we view to be the most favorable jurisdictions. Subsequent to March 31, 2026, we used the cash proceeds from the transaction for debt reduction and balance sheet strengthening, enhancing our financial flexibility and capacity to invest in strategic growth investments.
Current wording
The sale of Hecla Quebec represents disciplined portfolio optimization and focuses capital allocation on our silver assets, which we believe to represent significant growth and value creation opportunities. We have solidified our revenue exposure to silver and we are focused on operating in what we view to be the most favorable jurisdictions. We used the cash proceeds from the transaction for debt reduction and balance sheet strengthening, enhancing our financial flexibility and capacity to invest in strategic growth investments.
Previous wording
We determined that the sale of Hecla Quebec represents a strategic shift that has a major effect on our operations and financial results and therefore, beginning with this quarterly report on Form 10-Q for the period ending March 31, 2026, the Casa Berardi operation is no longer a reportable segment and its financial results are reflected in the Company’s unaudited interim condensed consolidated financial statements as a discontinued operation for all periods presented. Unless otherwise specified, the discussion of financial results within this Item 2 (MD&A) will focus on our continuing operations, in relation to the respective comparative periods which have been recast to reflect the continuing operations of our business.
Current wording
We determined that the sale of Hecla Quebec represents a strategic shift that has a major effect on our operations and financial results and therefore, beginning in the first quarterly report on Form 10-Q for the period ending March 31, 2026, the Casa Berardi operation is no longer a reportable segment and its financial results are reflected in the Company’s unaudited interim condensed consolidated financial statements as a discontinued operation for all periods presented. Unless otherwise specified, the discussion of financial results within this Item 2 MD&A will focus on our continuing operations, in relation to the respective comparative periods which have been recast to reflect the continuing operations of our business.
Previous wording
Production- We produced 3.9 million ounces of silver at our primary silver operations, compared to 4.1 million ounces of silver in the first quarter of 2025. At Greens Creek, we produced 12,886 ounces of gold, a decrease compared to 13,759 ounces of gold produced in the first quarter of 2025, driven primarily by lower throughput.
Current wording
Production- We produced 4.2 million ounces of silver, compared to 4.5 million ounces in the second quarter of 2025, primarily due to lower throughput and grades at Greens Creek. We produced 14,199 ounces of gold at Greens Creek, a decrease compared to 17,750 ounces produced in the second quarter of 2025, driven by lower throughput and grades.
Previous wording
Revenue Generation - Generated sales of $411.4 million, a 100% increase over the first quarter of 2025.
Current wording
Revenue Generation - Generated sales of $333.9 million, a 52% increase over the second quarter of 2025.
Previous wording
Net income from continuing operations and shareholder returns- Generated net income from continuing operations of $164.7 million, compared to $24.3 million in the first quarter of 2025 and returned $2.5 million in dividends to common stockholders.
Current wording
Income from continuing operations and shareholder returns- Generated income from continuing operations of $117.9 million, compared to $26.9 million in the second quarter of 2025 and returned $2.5 million in dividends to common stockholders.
Previous wording
Investments in Continuing Operations - Made capital investments of $39.3 million, including $6.1 million at Greens Creek, $17.0 million at Lucky Friday and $15.0 million at Keno Hill.
Current wording
Investments in Continuing Operations - Made capital investments of $39.1 million, including $12.1 million at Greens Creek, $16.7 million at Lucky Friday and $7.2 million at Keno Hill.
Previous wording
Leading North American Silver Producer - Through the completion of the sale of Hecla Quebec, we have solidified our position as a leading silver multi-asset mining company.
Current wording
Leading North American Silver Producer - Through the completion of the sale of Hecla Quebec, we have solidified our position as North America's premier silver producer.
Previous wording
Our financial results vary as a result of fluctuations in market prices primarily for silver and gold and, to a lesser extent, zinc, lead and copper. World market prices for these commodities have fluctuated historically and are affected by numerous factors beyond our control. To date, tariffs have not materially impacted our financial results. However, future tariffs or other global trade restraints could impact our performance. Historically our US operations have had significant sales into China and Canada, and each of those countries is or could be subject to tariffs, and each has or may retaliate in kind. Notwithstanding these recent developments, we believe that the outlook for precious metals fundamentals is favorable due to macro-economic factors such as lower interest rate expectations, geopolitical uncertainty and global growth expectations, which have resulted in significant volatility in the financial and commodities markets, including the precious metals market. See Item 1A. “Risk Factors” contained in Part I of our 2025 Form 10-K for further discussion. Because we cannot control the price of our products, except to the extent we have entered into hedging transactions, the key measures that management focuses on in operating our business are production volumes, payable sales volumes, Cash Cost, After By-product Credits, per Ounce (non-GAAP) and All-In Sustaining Cost, After By-product Credits, per Ounce (“AISC”) (non-GAAP), operating cash flows, capital expenditures, free cash flow (non-GAAP) and adjusted EBITDA (non-GAAP). The average realized prices for all metals sold by us continued to exhibit significant volatility during the period. We have also experienced significant cost inflation across our operations, principally associated with higher energy prices, increased costs for other consumables such as reagents, explosives and steel, and higher labor and contractor costs.
Current wording
Our financial results vary as a result of fluctuations in market prices primarily for silver and, to a lesser extent, gold, zinc, lead, and copper. World market prices for these commodities have fluctuated historically and are affected by numerous factors beyond our control. To date, tariffs have not materially impacted our financial results. However, future tariffs or other global trade restraints could impact our performance. Historically our US operations have had significant sales into China and Canada, and each of those countries is or could be subject to tariffs, and each has or may retaliate in kind. Notwithstanding these recent developments, we believe that the outlook for precious metals fundamentals is favorable due to macro-economic factors such as geopolitical uncertainty and global growth expectations, which have resulted in significant volatility in the financial and commodities markets, including the precious metals market. See Item 1A. “Risk Factors” contained in Part I of our 2025 Form 10-K for further discussion. Because we cannot control the price of our products, except to the extent we have entered into hedging transactions, the key measures that management focuses on in operating our business are production volumes, payable sales volumes, Cash Cost, After By-product Credits, per Ounce (non-GAAP) and All-In Sustaining Cost, After By-product Credits, per Ounce (“AISC”) (non-GAAP), operating cash flows, capital investments, free cash flow (non-GAAP), and adjusted EBITDA (non-GAAP). The average realized prices for all metals sold by us continued to exhibit significant volatility during the period. We have also experienced significant cost inflation across our operations, principally associated with higher energy prices, increased costs for other consumables such as reagents, explosives, steel, and higher labor and contractor costs.
Previous wording
Total sales for the three months ended March 31, 2026 and 2025 were as follows:
Current wording
Total sales for the three and six months ended June 30, 2026 and 2025 were as follows:
Previous wording
Environmental remediation services revenue is generated by performing remediation work in the historical Yukon Territory mining district on behalf of the Canadian government. The scope and estimated cost of all work is agreed to in advance by the Canadian government, and the expenses incurred are passed through to the government for reimbursement with minimal margin generated by us in performing this work.
Current wording
Environmental remediation services revenue is generated by performing remediation work in the historical Yukon Territory mining district on behalf of the Canadian government. The scope and estimated cost of all work is agreed to in advance by the Canadian government, and the expenses incurred are passed through to the government for reimbursement with minimal operating income generated by us in performing this work.
Previous wording
Total metal sales for the three months ended March 31, 2026 and 2025, and the approximate variances attributed to differences in metals prices, sales volumes and smelter terms, were as follows:
Current wording
Total metal sales for the three and six months ended June 30, 2026 and 2025, and the approximate variances attributed to differences in metals prices, sales volumes, and smelter terms, were as follows:
Previous wording
The fluctuation in sales for the three months ended March 31, 2026 compared to the same periods in 2025 was primarily due to the following:
Current wording
The fluctuation in sales for the three and six months ended June 30, 2026 compared to the same periods in 2025 was primarily due to the following:
Previous wording
Higher average realized prices for all metals for compared to the same period in 2025. The table below summarizes average spot prices and our average realized prices for the commodities we sell:
Current wording
Higher average realized prices for all metals compared to the same period in 2025. The table below summarizes average spot prices and our average realized prices for the commodities we sell:
Previous wording
Average realized prices typically differ from average market prices primarily because concentrate sales are generally recorded as revenues at the time of shipment at forward prices for the estimated month of settlement, which differ from average market prices. Due to the time elapsed between shipment of concentrates and final settlement with the customers, we must estimate the prices at which sales of our metals will be settled. Previously recorded sales are adjusted to estimated settlement metals prices each period through final settlement. We recorded net positive price adjustments to provisional settlements of $0.8 million and $6.9 million for the three months ended March 31, 2026 and 2025, respectively. The price adjustments related to silver, gold, zinc, lead and copper contained in our concentrate shipments were partially offset by gains and losses on forward contracts and collars for those metals. See Note 9 of Notes to Condensed Consolidated Financial Statements (Unaudited)for more information. The gains and losses on these contracts are included in revenues and impact the realized prices for silver, gold, lead, and zinc. Realized prices are calculated by dividing gross revenues for each metal (which include the price adjustments and gains and losses on the forward contracts and collars discussed above) by the payable quantities of each metal included in concentrate, doré and carbon material shipped during the period.
Current wording
Average realized prices typically differ from average market prices primarily because concentrate sales are generally recorded as revenues at the time of shipment at forward prices for the estimated month of settlement, which differ from average market prices. Due to the time elapsed between shipment of concentrates and final settlement with the customers, we must estimate the prices at which sales of our metals will be settled. Previously recorded sales are adjusted to estimated settlement metals prices each period through final settlement. We recorded net negative price adjustments to provisional settlements of $13.1 million and $6.2 million for the three and six months ended June 30, 2026, respectively, (three and six months ended June 30, 2025: $4.2 million and $11.1 million positive adjustments, respectively). The price adjustments related to silver, gold, zinc, lead, and copper contained in our concentrate shipments were partially offset by gains and losses on forward contracts and collars for those metals. See Note 8 of Notes to Condensed Consolidated Financial Statements (Unaudited)for more information. The gains and losses on these contracts are included in revenues and impact the realized prices for silver, gold, lead, and zinc. Realized prices are calculated by dividing gross revenues for each metal (which include the price adjustments and gains and losses on the metals derivative contracts discussed below) by the payable quantities of each metal included in concentrate, doré, and carbon material shipped during the period.
Previous wording
Higher quantities of all metals sold from continuing operations, except lead and copper, during the three months ended March 31, 2026 compared to the comparable 2025 period. See The Greens Creek Segment, The Lucky Friday Segment, and The Keno Hill Segment sections below for more information on metal production and sales volumes at each of our operating segments. Total metals production and sales volumes for each period are shown in the following table:
Current wording
The positive effect of higher metal prices was partially offset by lower sales volumes of all metals from continuing operations, except lead, during the three and six month period ended June 30, 2026 compared to the comparable 2025 period. See The Greens Creek Segment, The Lucky Friday Segment, and The Keno Hill Segment sections below for more information on metal production and sales volumes at each of our operating segments. Total metals production and sales volumes for each period are shown in the following table:
Previous wording
Sales, total cost of sales, gross profit (loss), Cash Cost, After By-product Credits, per Ounce (“Cash Cost”) (non-GAAP) and AISC (non-GAAP) at our operating segments for the three months ended March 31, 2026 and 2025 were as follows (in thousands, except for Cash Cost and AISC):
Current wording
Sales, costs applicable to sales, depreciation, depletion and amortization, gross profit, Cash Cost, After By-product Credits, per Ounce (“Cash Cost”) (non-GAAP) and AISC (non-GAAP) at our operating segments for the three and six months ended June 30, 2026 and 2025 were as follows (in thousands, except for Cash Cost and AISC):
Previous wording
While revenue from zinc, lead, copper and gold by-products is significant, we believe that identification of silver as the primary product of Greens Creek, Lucky Friday and Keno Hill is appropriate because:
Current wording
While revenue from gold, zinc, lead, and copper by-products is significant, we believe that identification of silver as the primary product of Greens Creek, Lucky Friday, and Keno Hill is appropriate because:
Previous wording
Accordingly, we believe the identification of gold, lead, zinc and copper as by-product credits at Greens Creek, Lucky Friday and Keno Hill is appropriate because of their lower economic value compared to silver and due to the fact that silver is the primary product we intend to produce at those locations. In addition, we have not consistently received sufficient revenue from any single by-product metal to warrant classification of such as a co-product.
Current wording
Accordingly, we believe the identification of gold, lead, zinc, and copper as by-product credits at Greens Creek, Lucky Friday, and Keno Hill is appropriate because of their lower economic value compared to silver and because silver is the primary product we intend to produce at those locations. In addition, we have not consistently received sufficient revenue from any single by-product metal to warrant classification of such as a co-product.
Previous wording
We periodically review our revenues to ensure that reporting of primary products and by-products is appropriate. Because for Greens Creek, Lucky Friday and Keno Hill we consider zinc, lead, gold and copper to be by-products of our silver production, the values of these metals offset operating costs within our calculations of Cash Cost, After By-product Credits, per Silver Ounce and AISC, After By-product Credits, per Silver Ounce. We currently do not report Cash Cost, After By-product Credits, per Silver Ounce and AISC, After By-product Credits, per Silver Ounce for our Keno Hill operation as it has not met our definition of commercial production. We define an operation as being in commercial production upon achievement of the following criteria:
Current wording
We periodically review our revenues to ensure that reporting of primary products and by-products is appropriate. Because we consider zinc, lead, gold, and copper at Greens Creek, Lucky Friday, and Keno Hill to be by-products of our silver production, the values of these metals offset operating costs within our calculations of Cash Cost, After By-product Credits, per Silver Ounce and AISC, After By-product Credits, per Silver Ounce. We currently do not report Cash Cost, After By-product Credits, per Silver Ounce and AISC, After By-product Credits, per Silver Ounce for our Keno Hill operation as it has not met our definition of commercial production. We define an operation as being in commercial production upon achievement of the following criteria:
Previous wording
Consolidated gross profit increased by $184.6 million. See The Greens Creek Segment, The Lucky Friday Segment, and The Keno Hill Segment sections below for a discussion on the key drivers by operation.
Current wording
Variances in gross profit at our operations as illustrated in the table above. See The Greens Creek Segment, The Lucky Friday Segment, and The Keno Hill Segment sections below for a discussion on the key drivers by operation.
Previous wording
Interest expense decreased by $5.7 million primarily due to lower total debt levels compared to the same period of 2025.
Current wording
Interest expense decreased by $8.5 million primarily due to lower total debt levels compared to the same period of 2025 following redemption of $263 million and $212 million of Senior Notes in April 2026 and August 2025 respectively.
Previous wording
Fair value adjustments, net decreased by $9.3 million primarily due to $10.3 million of net losses on undesignated derivative contracts.
Current wording
Fair value adjustments, net decreased by $13.7 million primarily due to $10.2 million of net losses on derivative contracts.
Previous wording
For the three months ended March 31, 2026, we reported net income from continuing operations of $164.7 million (2025: $24.3 million) and a net loss applicable to common stockholders of $19.2 million (2025 - $28.7 million). Net loss applicable to common stockholders is lower than net income from continuing operations, due to the recognition of a loss from discontinued operations of $183.7 million, primarily due to the loss of $192.5 million on the sale of Hecla Quebec. The following were the significant drivers of the increase in net income from continuing operations:
Current wording
For the six months ended June 30, 2026 we reported income from continuing operations of $282.5 million (2025: $51.2 million) and net income applicable to common stockholders of $98.6 million (2025: $86.3 million). Net income applicable to common stockholders is lower than income from continuing operations, due to the recognition of a loss from discontinued operations of $183.7 million, primarily due to the loss of $192.5 million on the sale of Hecla Quebec. The following were the significant drivers of the increase in income from continuing operations:
Previous wording
Other income increased by $2.6 million primarily due to higher interest earned as a result of a higher cash position.
Current wording
Other income increased by $8.3 million primarily due to higher interest earned on the increased cash position.
Previous wording
General and administrative expenses increased by $3.8 million primarily due to higher incentive compensation payments driven by improved financial and operational performance and an increase in Corporate headcount.
Current wording
General and administrative expenses increased by $6.4 million primarily due to higher incentive compensation payments driven by improved financial and operational performance and an increase in Corporate headcount.
Previous wording
Other operating expense, net increased by $4.4 million primarily due to a loss on disposal of Minera Hecla of $2.4 million which we sold for cash proceeds of $5.2 million.
Current wording
Other operating expense, net increased by $6.2 million primarily due to a loss on disposal of Minera Hecla of $2.4 million which we sold for cash proceeds of $5.2 million, and losses on other property, plant and equipment disposals.
Previous wording
Income and mining tax expense increased by $35.3 million due to higher taxable income generated primarily by our US operations.
Current wording
Income and mining tax expense increased by $31.9 million due to higher taxable income generated primarily by our US operations, partly offset by the release of a historical valuation allowance related to our Nevada subsidiary.
Previous wording
Capital investments in the current quarter were $4.6 million lower compared to the same period in 2025. Current quarter costs included $3.1 million for primary ore access development, $1.0 million for definition drilling and $1.0 million for mining equipment.
Current wording
Capital investments in the current quarter were $3.7 million higher compared to the same period in 2025. Current quarter costs included $5.8 million for surface infrastructure and equipment, $1.8 million for mining equipment and development, $1.7 million for primary ore access development and $1.2 million for definition drilling.
Previous wording
Production of all metals other than silver was negatively impacted during the three months ended March 31, 2026, compared to the same period in 2025, primarily due to lower milled tons, partly offset by higher silver grades.
Current wording
Production of all metals was negatively impacted during the three months ended June 30, 2026, compared to the same period in 2025, primarily due to lower tons milled and grades.
Previous wording
The $120.1 million increase in gross profit for the three months ended March 31, 2026, compared to the same period in 2025 was primarily due to higher realized sales prices for silver and gold, in addition to higher sales volumes for all metals produced.
Current wording
The $158.2 million increase in gross profit for the six months ended June 30, 2026, compared to the same period in 2025 was primarily due to higher realized sales prices for silver and gold, partly offset by lower sales volumes for silver and gold.
Previous wording
For the three months ended March 31, 2026, the decrease in Cash Cost, After By-product Credits, per Silver Ounce and AISC, After By-product Credits, per Silver Ounce compared to the same period in 2025 was primarily due to an increase in gold by-product credits, reflecting higher realized gold prices, in addition to higher silver production, partly offset by higher production costs.
Current wording
For the three and six months ended June 30, 2026, the decrease in Cash Cost, After By-product Credits, per Silver Ounce and AISC, After By-product Credits, per Silver Ounce compared to the same period in 2025 was primarily due to an increase in gold by-product credits, reflecting higher realized gold prices, partly offset by lower silver production and higher production costs.
Previous wording
Capital investments increased by $1.6 million for the three months ended March 31, 2026, compared to the same period in 2025. Significant capital expenditures during the three months ended March 31, 2026, included capital development of $7.4 million, $1.2 million for a shaft rehabilitation, $1.1 million for the surface cooling project, $0.8 million for definition drilling and $0.7 million for an underground truck replacement, $0.6 million on ramp work and $0.4 million on tailings facility pond 5 construction.
Current wording
Capital investments increased by $0.7 million for the three months ended June 30, 2026, compared to the same period in 2025. Significant capital expenditures during the three months ended June 30, 2026, included $7.0 million on tailings facility pond 5 construction, capital development of $5.7 million, $1.4 million for the surface cooling project, $1.0 million for a shaft rehabilitation, $0.8 million for definition drilling.
Previous wording
Gross profit increased by $41.4 million for the three months ended March 31, 2026 compared to the comparable period in 2025, reflecting higher realized prices for silver, zinc and lead, partly offset by lower sales volumes for all metals driven by lower production reflecting lower processed grade material, except for zinc.
Current wording
Gross profit increased by $90.7 million for the six months ended June 30, 2026 compared to the comparable period in 2025, reflecting higher realized prices for silver, zinc, and lead and higher sales volumes for silver and lead driven by higher production.
Previous wording
For the three months ended March 31, 2026, Cash Cost, After By-product Credits, per Silver Ounce and AISC, After By-product Credits, per Silver Ounce are higher than the same period in 2025 primarily due to lower silver production and higher profit sharing and incentive compensation costs, partly offset by higher by-product credits.
Current wording
For the three months ended June 30, 2026, Cash Cost, After By-product Credits, per Silver Ounce and AISC, After By-product Credits, per Silver Ounce are lower than the same period in 2025 primarily due to higher silver production, by-product credits, and treatment costs, partly offset by higher profit sharing.
Previous wording
We acquired our Keno Hill operation as part of the Alexco Resource Corp. acquisition in September 2022 and have focused on development activities and began ramp-up of the mill during the second quarter of 2023. The average mill throughput during the three months ended March 31, 2026, was 276 tons per day (the mine is currently permitted to a maximum of an average of 440 tons per day), with silver grades milled of 20.8 ounces per ton. During the first three months of 2026, the mill has relied on existing ore stockpiles as the mine continues to focus on development and ramp up to higher tonnage rates with mining rates of 276 tons per day during the quarter, with material sourced from both the Bermingham and Flame and Moth deposits. Mill throughput, while currently steady, was negatively impacted in the first quarter by limited ore availability from the Bermingham deposit due to reduced output from the Bear zone and dilution control issues in narrow vein stopes caused by mining remnant areas as we depart that zone and transition into the Arctic zone, as well as by mine sequencing at the Flame and Moth deposit, which was altered as a result of power curtailments by Yukon Energy (the electric utility that supplies the Mine) lasting sixteen days in December 2025 and five days in January 2026 due to extreme cold weather. We expect these impacts to diminish throughout the remainder of the year.
Current wording
We acquired our Keno Hill operation as part of the Alexco Resource Corp. acquisition in September 2022 and have focused on development activities and began ramp-up of the mill during the second quarter of 2023. The average mill throughput during the three months ended June 30, 2026, was 368 tons per day (2025: 294 tons per day) (the mine is currently permitted to a maximum of an average of 440 tons per day), with silver grades milled of 19.3 ounces per ton (2025: 28.9 ounces per ton). During the first six months of 2026, the mine continued to focus on development and ramp up to higher tonnage rates with mining rates of 332 tons per day during the quarter, with material sourced from both the Bermingham and Flame and Moth deposits. Mill throughput, while currently steady, was negatively impacted in the first quarter by limited ore availability from the Bermingham deposit due to reduced output from the Bear zone and dilution control issues in narrow vein stopes caused by mining remnant areas as we departed that zone and transitioned into the Arctic zone, as well as by mine sequencing at both Bermingham and Flame and Moth deposits, which was altered as a result of power curtailments by Yukon Energy (the electric utility that supplies the Mine) lasting sixteen days in December 2025 and five days in January 2026 due to extreme cold weather. These impacts have diminished, however, near-term production may decrease due to other factors discussed below.
Previous wording
During the three months ended March 31, 2026 and 2025, Keno Hill recorded sales of $46.4 million and $16.9 million, respectively, with the increase due to higher realized prices, partly offset by lower metals sales volumes. As a result of higher revenues, Keno Hill generated gross profit of $24.3 million during the three months ended March 31, 2026 (2025 - $1.0 million). During the quarter, Keno Hill recorded capital investments of $15.0 million, primarily related to $7.0 million of mine development, $1.9 million for underground haul trucks, and $0.8 million for surface equipment.
Current wording
During the three months ended June 30, 2026, Keno Hill recorded sales of $34.5 million (2025: $26.1 million), with the increase due to higher realized prices, partly offset by lower metals sales volumes driven by lower grades. As a result of higher revenues, Keno Hill generated gross profit of $6.8 million during the three months ended June 30, 2026 (2025: $0.2 million). During the quarter, Keno Hill recorded capital investments of $7.2 million, primarily related to mine development, camp expansion, dry-stack tailings facility, and surface equipment.
Previous wording
From commencement of production until late August 2024, ore production and mill throughput generally increased as planned, resulting in higher production levels, although still below the mill’s permitted capacity. Beginning in mid‑2024 and continuing into 2025, however, Keno Hill was impacted by external events that affected permitting, projects and production, and delayed our ability to achieve sustained, profitable operations.
Current wording
From commencement of production until late August 2024, ore production and mill throughput generally increased as planned, resulting in higher production levels, although still below the mill’s permitted capacity. Beginning in mid‑2024 and continuing into 2025, however, Keno Hill was impacted by external events that affected permitting, projects, production, and delayed our ability to achieve sustained, profitable operations.
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Rearranged current paragraphs (5)
Current report — wording carried from elsewhere
Investments in Continuing Operations - Made capital investments of $78.4 million, including $18.2 million at Greens Creek, $33.7 million at Lucky Friday and $22.3 million at Keno Hill.
Current report — wording carried from elsewhere
Variances in gross profit at our operations as illustrated in the table above. See The Greens Creek Segment, The Lucky Friday Segment, and The Keno Hill Segment sections below for a discussion on the key drivers by operation.
Current report — wording carried from elsewhere
The positive movements mentioned above were partly offset by:
Current report — wording carried from elsewhere
Fair value adjustments, net decreased by $23 million primarily due to $20.3 million of net losses on derivative contracts.
Current report — wording carried from elsewhere
The $38.0 million increase in gross profit for the three months ended June 30, 2026, compared to the same period in 2025 was primarily due to higher realized sales prices for all metals, partly offset by lower sales volumes reflecting lower grades and tons milled.
Rearranged previous paragraphs (4)
Previous report — wording carried elsewhere
("CBA"), including unresolved wealth‑sharing provisions. We do not currently believe that negotiating changes to the CBA would impede the YESAB review process, but it is possible it could.
Previous report — wording carried elsewhere
The declaration and payment of dividends on our common stock is at the sole discretion of our Board of Directors, and there can be no assurance that we will continue to declare and pay common stock dividends in the future.
Previous report — wording carried elsewhere
We currently estimate a range of approximately $204 to $223 million will be spent in 2026 on capital expenditures,
Previous report — wording carried elsewhere
we paid cash dividends on our common and preferred stock totaling $2.8 million and $2.5 million, respectively;