Hecla Mining Company Q1 FY2026 earnings call

18 months ago company had $550M net debt, now no long-term debt. Casa Bradi sale in March, redeemed final $263M senior notes. 2026 exploration program near doubling investment from 2025. Greens Creek Pyrite Concentrate Circuit and tailings reprocessing project discussed. Midas Restart Project in Nevada outlined. Production outlook guiding 15.1 - 16.5M ounces silver in 2026, project pipeline supports potential 20+M ounces annually. Green's Creek set record for underground backfill placement. Reiterated production and cost guidance for the year.

Continuing operations revenue exceeded $410 million, up 13% from prior quarter and double Q1 2025. Record adjusted EBITDA of $265 million and consolidated free cash flow of $144 million. All mines free cash flow positive. Greens Creek produced 2.2 million ounces of silver and 13,000 ounces of gold in Q1, total cost of sales $82 million, cash costs negative nearly $12 per ounce. Lucky Friday produced 1.2 million ounces of silver, total cost of sales $49 million, cash costs $12.07 per ounce. Keno Hill produced nearly half a million ounces of silver, free cash flow $15.3 million. 73% of revenues from silver, all from US or Canada, margin of 90% of realized silver price.

Guiding to 15.1 to 16.5 million ounces of silver in 2026. Reiterated production and cost guidance for the year. Project pipeline supports potential pathway to 20-plus million ounces annually driven by Keno's gradual ramp to 440 tonnes per day and potential restart of MIDAS in Nevada.

Any forward-looking statements involve risks as shown in earnings release and 10Q filing with SEC. Risks could cause results to differ from projections. Permitting issues at Keno Hill could impact ramp up. Potential delay in permitting could have time value of money impact on IRR.

Q: Given current commodity price environment, any longer-term capital projects?

A: Mentioned near-term projects like pyrite concentrate project, others depend on success at Aurora.

Q: Permits at Keno Hill limiting ramp up?

A: Permitting involves submitting to YESA, expect to do by year end, amendments around mid-2029.

Q: Capital returns strategy?

A: Looking at capital returns but investment in business brings better returns, will discuss with board.

Q: Inventory buildup?

A: Timing difference due to shipment lumpy nature, accounts receivable and inventory affected by port and shipment timing.

Q: Return on invested capital for projects?

A: Expected to be compelling, meet 12%-15% target.

Q: Compare new Midas mine to old?

A: Likely different, multiple ore sources, mill rated 1200 tonnes per day.

Q: Aurora details?

A: Underground mineable targets, gold and silver, high-grade.

Q: Acquisition consideration?

A: Consider safer jurisdictions, precious metals focused, need competitive advantage and financial returns, not acquisition dependent for growth