Key Highlights 

  • Record revenue of USD 1.4 billion driven by higher silver prices and asset optimisation. 
  • Adjusted EBITDA reached USD 670 million as operating margins expanded sharply. 
  • Net leverage ratio declined to 0.1x from 1.6x, reflecting significant balance sheet deleveraging. 
  • Silver production reached 17 million ounces, meeting the top end of guidance. 
  • Strategic shift toward a pure-play silver portfolio continues with the planned Casa Berardi divestiture. 

Record Financial Performance Driven by Silver Strength 

Hecla Mining Company reported record financial and operational results for the fourth quarter and full year, supported by strong silver prices and improved operational productivity across its core mines. 

The company reported annual revenue of USD 1.4 billion, the highest in its history. Net income attributable to shareholders reached USD 21 million, equivalent to earnings of USD 0.49 per share. 

Operating performance translated into substantial cash generation. Operating cash flow totalled USD 563 million during the year, enabling free cash flow of approximately USD 310 million. 

Adjusted EBITDA reached USD 670 million, reflecting both higher realised metal prices and disciplined cost management. Management noted that margin expansion across the portfolio played a key role in improving returns and strengthening the balance sheet. 

Chief Executive Officer Robert L. Krcmarov described the period as transformational for the company. 

“Our strategy to become the premier silver producer in North America is delivering tangible results through operational execution, disciplined capital allocation, and strong asset performance,” he said during the earnings call. 

Balance Sheet Strength Improves Sharply 

A central theme of the earnings report was the rapid strengthening of the company’s financial position. 

Gross debt declined to USD 276 million, reducing the gross debt to adjusted EBITDA ratio to 0.4x. Net leverage improved even more dramatically, falling from 1.6x to 0.1x during the year. 

The improvement reflects both higher cash generation and a focus on disciplined capital allocation. 

Chief Financial Officer Russell D. Lawlar noted that at current metal prices the company is positioned to achieve a debt free balance sheet as early as 2026. 

Cash balances increased substantially, rising to USD 242 million from USD 27 million a year earlier. 

Return on invested capital also improved, rising from 4 percent to 12 percent as operating margins expanded and capital efficiency improved. 

Strong Operational Performance Across Core Mines 

Operational performance across the company’s key silver assets also supported the strong financial results. 

Total silver production reached 17 million ounces during the year, meeting the top end of company guidance. Gold production reached 150,000 ounces, exceeding internal forecasts. 

The company’s flagship operations delivered strong results. 

Greens Creek produced 8.7 million ounces of silver during the year, achieving the top end of its production guidance. All in sustaining costs after byproduct credits remained exceptionally low, falling below negative USD 2 per ounce. 

Lucky Friday produced a record 5.3 million ounces of silver, representing a nearly 50 percent increase in production compared with four years earlier. All in sustaining costs remained below USD 22 per ounce for the year. 

Keno Hill also delivered strong operational progress. The mine produced more than 3 million ounces of silver and achieved its first year of profitability and positive free cash flow since the acquisition. 

Each operating mine generated positive free cash flow during the year. 

Fourth Quarter Results Highlight Margin Expansion 

During the fourth quarter alone, revenue reached USD 439 million. 

Silver accounted for approximately 59 percent of total revenue during the quarter. Excluding the Casa Berardi gold operation, it expects that silver exposure to increase to roughly 73 percent of total revenue. 

The realised silver price during the quarter reached nearly USD 70 per ounce, exceeding the period average by about USD 14 per ounce. 

All in sustaining costs during the quarter averaged USD 18.11 per ounce, resulting in an operating margin of approximately USD 51 per ounce. 

The company generated nearly USD 135 million in free cash flow during the quarter, with all mines contributing positively to cash generation. 

Strategic Shift Toward Silver Portfolio 

A key strategic development highlighted, was the planned sale of the Casa Berardi gold mine. 

The transaction will transfer the asset to Aurizon Gold Corporation and represents a major step in the company’s transition toward a silver focused portfolio. 

Following the transaction, silver is expected to account for roughly 73 percent of total company revenue, among the highest levels of silver exposure among diversified mining peers. 

The proceeds from the sale will be used primarily to reduce debt and redeploy capital toward silver assets. 

The company will also retain some exposure to potential upside from the asset through an equity stake in Orezone. 

Chief Financial Officer Russell D. Lawlar noted that the transaction could result in an accounting loss due to the carrying value of the asset being higher than the transaction value. 

Growth Pipeline Targets Higher Silver Production 

The medium-term pathway is to increase silver production to around 20 million ounces annually. 

Several internal projects are expected to contribute to this growth target. 

At Lucky Friday, a surface cooling project is approximately 79 percent complete and scheduled for completion by mid-2026. The project is expected to improve underground working conditions and support productivity gains at deeper levels. 

Keno Hill is continuing to ramp up toward its nameplate processing capacity of 440 tonnes per day. As throughput increases, management expects the operation to generate stronger cash flows. 

Exploration also remains a priority. The company plans to invest between USD 45 million and USD 55 million in exploration during 2026, with most activity focused on Nevada and near mine resource expansion. 

The organic growth remains a central component of its long-term strategy. 

Safety Performance and Operational Discipline 

Operational safety also improved during the year. 

The company reported a total reportable injury frequency rate of 1.69, representing a 13 percent improvement compared with the previous year. 

The improvement reflects a multi-year effort to strengthen safety culture and systems across all operations. 

The safety performance remains a core pillar of the company’s capital allocation framework and operational strategy. 

Outlook 

For 2026, the company expects silver production to range between 15.1 million and 16.5 million ounces. 

Greens Creek is expected to produce between 7.5 million and 8.1 million ounces of silver, while Lucky Friday production is projected between 4.7 million and 5.2 million ounces. 

The combination of asset optimisation, exploration investment, and operational improvements positions the company for continued growth in cash flow and production over the medium term. 

 

FAQs 

  1. What were Hecla Mining’s key financial results for the quarter? 

The company reported annual revenue of USD 1.4 billion and adjusted EBITDA of USD 670 million. Free cash flow reached approximately USD 310 million for the year. 

  1. How much silver did the company produce? 

Total silver production reached 17 million ounces during the year, meeting the top end of company guidance. 

  1. Why is Hecla selling the Casa Berardi mine? 

The sale aligns with the company’s strategy to focus more strongly on silver production. After the transaction, silver is expected to account for about 73 percent of total revenue. 

  1. What is the company’s production outlook? 

For 2026, the company expects silver production between 15.1 million and 16.5 million ounces. 

  1. What are the company’s long term growth targets? 

Increase silver production to around 20 million ounces annually through optimisation at existing mines and exploration driven resource expansion.