Hecla shares jump 13.2% after record free cash flow

Hecla (HL) shares rose 13.2% in regular trading as of 3:59 p.m. ET on Nov. 4, from a regular-session close of $13.21.

Hecla (HL) said on Nov. 3 that third-quarter 2026 revenue rose to $394.8 million, topping the $350.2 million consensus estimate.

Profit from continuing operations was 22 cents per share, also above the 20 cents consensus estimate, as free cash flow reached a record for the quarter.

Hecla is the largest silver producer in the United States and Canada, with mines in Alaska and Idaho and its Keno Hill mine in the Yukon, according to its own description.

Here's how the company did:

• Revenue: $394.8 million vs. $333.9 million in the prior quarter
• Earnings per share: 22 cents, vs. 20 cents expected
• Adjusted EBITDA from continuing operations: $211.5 million vs. $199.2 million in the prior quarter

The company said revenue rose 18% from the prior quarter, driven mainly by the timing of sales at Greens Creek.

Income from continuing operations was $149.6 million, compared with $117.9 million in the prior quarter. Fair value adjustments added $36 million, mainly from marketable securities gains.

Costs applicable to sales rose 35% to $158.2 million, and a $22 million increase in tax expense partly offset those gains.

Cash provided by operating activities from continuing operations was $203.0 million, up 16% from the prior quarter.

Free cash flow reached $151.2 million, surpassing the previous all-time high of $144 million set in the first quarter of 2026.

Net income swung from a loss of $19.0 million in the first quarter of 2026 to a profit of $117.9 million in the second quarter, according to its SEC filings.

President and Chief Executive Officer Rob Krcmarov said the results reflect the platform the company has built. “Our third quarter results reflect the strength of the platform we have built, and we are well positioned to achieve our 2026 guidance.”

He added: “We generated record free cash flow of $151 million, led by Greens Creek’s record $147 million.”

Segment results

Consolidated silver production was 4.2 million ounces, nearly unchanged from the prior quarter.

Greens Creek produced 1.9 million ounces of silver and nearly 12 thousand ounces of gold. Its free cash flow was $147 million, a site-level quarterly record, the company said.

Lucky Friday silver production fell 17% from the prior quarter, as the mine moved out of a high-grade pocket of ore that drove a record in the second quarter.

Keno Hill produced nearly 1.0 million ounces of silver, a quarterly record, on 38,163 tons milled.

The company said it will suppress Keno Hill mill throughput to about 300 tons per day in the fourth quarter. The move preserves tailings storage while it pursues license amendments, and it is not a cost-driven decision, the company said.

Preliminary work on a Greens Creek pyrite concentrate circuit could add 1.0 million to 1.2 million ounces of silver a year once fully ramped up, the company said.

Guidance

Consolidated 2026 silver production is expected to be 15.3 million to 16.1 million ounces, with the low end raised from 15.1 million.

Total silver cash cost guidance improved to between negative $4.75 and negative $4.25 an ounce.

All-in sustaining cost guidance is now $11.50 to $12.50 an ounce.

Total capital investment guidance is now $198 million to $214 million, down from $208 million to $223 million.

Balance sheet and board

Hecla ended the quarter with $692 million of cash and cash equivalents, up over 43% from the prior quarter.

The company remains debt free, excluding finance leases. It has a new $500 million revolving credit agreement with a $100 million accordion option, and the facility is undrawn.

The company also said Dale Andres joined its board as a Class II director, effective Nov. 2.