Hecla Mining Q3 net income rises to $150M
Nine-month operating cash flow was $572.1 million, while long-term debt including finance leases stood at $7.1 million.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Filing Summary
Hecla Mining Company reported third-quarter sales of $394.8 million, compared with $316.0 million a year earlier, and net income of $149.6 million, versus $100.7 million. For the first nine months, net cash provided by operating activities was $572.1 million, compared with $345.6 million in 2025. Cash, cash equivalents and restricted cash totaled $692.7 million at September 30, 2026. Long-term debt, including finance leases, was $7.1 million at that date, versus $263.2 million at December 31, 2025.
On March 25, 2026, Hecla completed the sale of wholly owned Hecla Quebec Inc., which owned the Casa Berardi mine and other exploration properties in Quebec, to Orezone Gold Corporation. Total undiscounted consideration was up to $601.7 million; Hecla recognized a $192.5 million loss based on the fair value of consideration received compared with net assets disposed. Casa Berardi results are presented as discontinued operations; Hecla’s current reportable operating segments are Greens Creek, Lucky Friday and Keno Hill.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointThird-quarter sales reached $394.8 million, versus $316.0 million in 2025.
- Moderate pointThird-quarter net income was $149.6 million, versus $100.7 million.
- Moderate pointNine-month operating cash flow was $572.1 million, versus $345.6 million.
- Moderate pointLong-term debt including finance leases: $7.1 million, versus $263.2 million.
Negative
- Moderate pointHecla recognized a $192.5 million loss on the Hecla Quebec sale. 2.2% of market cap
Filing Explained
Hecla’s ATM agreement allows up to 60 million cumulative share sales; 59,802,012 shares had been sold since inception, but none in the first nine months of 2026, so the program added no shares—and caused no dilution through ATM sales—in that period.
Key Figures
Key Terms
discontinued operation financial
embedded derivative financial
host contract financial
annual effective tax rate method financial
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were HL’s third-quarter sales and net income?
What happened to HL’s Hecla Quebec business?
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to .
Commission File Number:
(Exact Name of Registrant as Specified in its Charter)
(State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer |
(Address of principal executive offices) |
(Zip Code) |
Registrant’s telephone number, including area code: (
Securities registered pursuant to Section 12(b) of the Act:
Title of each class |
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Trading Symbol(s) |
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Name of each exchange on which registered |
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Stock, par value $0.25 per share |
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Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
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Accelerated filer |
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Non-accelerated filer |
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Smaller reporting company |
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Emerging growth company |
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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
Class |
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Shares Outstanding October 30, 2026 |
Common stock, par value $0.25 par value per share |
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Hecla Mining Company
Form 10-Q
For the Quarter Ended September 30, 2026
INDEX*
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Page |
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PART I. |
FINANCIAL INFORMATION |
3 |
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Item 1. |
Financial Statements (Unaudited) |
3 |
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Condensed Consolidated Statements of Operations and Comprehensive Income - Three Months Ended and Nine Months Ended September 30, 2026 and 2025 |
3 |
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Condensed Consolidated Statements of Cash Flows - Nine Months Ended September 30, 2026 and 2025 |
4 |
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Condensed Consolidated Balance Sheets - September 30, 2026 and December 31, 2025 |
5 |
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Condensed Consolidated Statements of Changes in Stockholders' Equity – Three Months Ended and Nine Months Ended September 30, 2026 and 2025 |
6 |
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Notes to Condensed Consolidated Financial Statements (unaudited) |
8 |
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Forward-Looking Statements |
27 |
Item 2. |
Management’s Discussion and Analysis of Financial Condition and Results of Operations |
28 |
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Overview |
28 |
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Consolidated Results of Operations |
30 |
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Reconciliation of Costs Applicable to Sales to Cash Cost, Before By-product Credits (non-GAAP) and Cash Cost (non-GAAP) and All-In Sustaining Cost, Before By-product Credits (non-GAAP) and All-In Sustaining Cost (non-GAAP) |
43 |
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Financial Liquidity and Capital Resources |
47 |
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Contractual Obligations, Contingent Liabilities and Commitments |
50 |
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Off-Balance Sheet Arrangements |
50 |
Item 3. |
Quantitative and Qualitative Disclosures About Market Risk |
51 |
Item 4. |
Controls and Procedures |
52 |
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PART II. |
OTHER INFORMATION |
53 |
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Item 1. |
Legal Proceedings |
53 |
Item 1A. |
Risk Factors |
53 |
Item 4. |
Mine Safety Disclosures |
54 |
Item 5. |
Other Information |
54 |
Item 6. |
Exhibits |
55 |
Signatures |
56 |
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*Items 2 and 3 of Part II are omitted as they are not applicable. |
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2
Part I - Financial Information
Item 1. Financial Statements
Hecla Mining Company
Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited)
(Dollars and shares in thousands, except for per-share amounts)
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Three Months Ended |
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Nine Months Ended |
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September 30, 2026 |
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September 30, 2025 |
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September 30, 2026 |
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September 30, 2025 |
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Sales |
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$ |
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$ |
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$ |
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$ |
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COSTS AND EXPENSES |
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Costs applicable to sales (1) |
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Depreciation, depletion and amortization |
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General and administrative |
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Exploration and pre-development |
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Care and maintenance |
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Provision for closed operations and environmental matters |
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Other operating expense, net |
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Total costs and expenses |
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Income from operations |
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Other income (expense): |
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Interest expense |
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( |
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( |
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( |
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Fair value adjustments, net |
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Net foreign exchange (loss) gain |
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( |
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Other income |
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Total other income (expense) |
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( |
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Income before income and mining taxes |
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Income and mining tax provision |
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( |
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( |
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( |
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Income from continuing operations |
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Income (loss) from discontinued operations, net of income and mining taxes |
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( |
) |
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Net income |
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$ |
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$ |
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$ |
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$ |
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Preferred stock dividends |
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( |
) |
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( |
) |
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( |
) |
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( |
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Net income applicable to common stockholders |
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$ |
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$ |
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$ |
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$ |
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Comprehensive income: |
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Income from continuing operations |
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$ |
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$ |
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$ |
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$ |
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Change in fair value of derivative contracts designated as hedge transactions and other |
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( |
) |
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( |
) |
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( |
) |
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Comprehensive income from continuing operations |
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$ |
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$ |
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$ |
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$ |
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Comprehensive income (loss) from discontinued operations |
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( |
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Comprehensive income |
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$ |
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$ |
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$ |
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$ |
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Net income (loss) per common share: |
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Basic: |
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Continuing operations |
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$ |
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$ |
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$ |
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$ |
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Discontinued operations |
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( |
) |
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Basic income per common share after preferred dividends |
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$ |
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$ |
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$ |
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$ |
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Diluted income (loss) per share: |
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Continuing operations |
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$ |
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$ |
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$ |
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$ |
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Discontinued operations |
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( |
) |
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Diluted income per common share after preferred dividends |
|
$ |
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$ |
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$ |
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$ |
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Weighted average number of common shares outstanding - basic |
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Weighted average number of common shares outstanding - diluted |
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(1) Excludes depreciation, depletion and amortization |
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The accompanying notes are an integral part of the interim condensed consolidated financial statements.
3
Hecla Mining Company
Condensed Consolidated Statements of Cash Flows (Unaudited)
(In thousands)
|
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Nine Months Ended |
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|||||
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September 30, 2026 |
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September 30, 2025 |
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Operating activities: |
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Net income |
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$ |
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$ |
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Less: (Loss) income from discontinued operations, net of taxes |
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( |
) |
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Income from continuing operations |
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$ |
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$ |
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Non-cash elements included in net income: |
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Depreciation, depletion and amortization |
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Inventory adjustments |
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Fair value adjustments, net |
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( |
) |
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( |
) |
Provision for reclamation and closure costs |
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Stock-based compensation |
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Deferred income taxes |
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Net foreign exchange loss |
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Other non-cash items, net |
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Change in assets and liabilities: |
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Accounts receivable |
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( |
) |
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Inventories |
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( |
) |
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( |
) |
Other current and non-current assets |
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( |
) |
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Accounts payable, accrued and other current liabilities |
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( |
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Accrued payroll and related benefits |
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( |
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Accrued taxes |
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Accrued reclamation and closure costs and other non-current liabilities |
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( |
) |
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Cash provided by operating activities of continuing operations |
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Cash provided by operating activities of discontinued operations |
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Net cash provided by operating activities |
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Investing activities: |
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Additions to property, plant and mine development |
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( |
) |
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( |
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Proceeds from sale of Hecla Quebec, net of transaction costs |
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Proceeds from sale of Minera Hecla |
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Proceeds from sales of investments |
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Purchases of investments |
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( |
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Proceeds from asset dispositions |
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Net cash provided by (used in) investing activities of continuing operations |
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( |
) |
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Net cash used in investing activities of discontinued operations |
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( |
) |
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( |
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Net cash provided by (used in) investing activities |
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( |
) |
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Financing activities: |
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Proceeds from sale of common stock, net |
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Acquisition of treasury stock |
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( |
) |
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( |
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Borrowing of debt |
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Repayment of debt |
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( |
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( |
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Dividends paid to common and preferred stockholders |
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( |
) |
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( |
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Credit facility costs |
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( |
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Repayments of finance leases and other |
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( |
) |
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( |
) |
Net cash (used in) provided by financing activities of continuing operations |
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( |
) |
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( |
) |
Net cash used in financing activities of discontinued operations |
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( |
) |
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( |
) |
Net cash used in financing activities |
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( |
) |
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( |
) |
Effect of exchange rates on cash |
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( |
) |
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Net increase in cash, cash equivalents and restricted cash and cash equivalents |
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Cash, cash equivalents and restricted cash and cash equivalents at beginning of period |
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Cash, cash equivalents and restricted cash and cash equivalents at end of period |
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$ |
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$ |
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Reconciliation of cash and cash equivalents and restricted cash and cash equivalents above |
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Cash and cash equivalents |
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$ |
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$ |
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Non-current restricted cash and cash equivalents |
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$ |
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$ |
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Total cash and cash equivalents and restricted cash and cash equivalents as reported on the consolidated statements of cash flows |
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$ |
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$ |
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Supplemental disclosure of cash flow information: |
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Cash paid for interest |
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$ |
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$ |
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Cash paid for income and mining taxes, net |
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$ |
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$ |
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Significant non-cash investing and financing activities: |
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Common stock issued as incentive compensation |
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$ |
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$ |
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Common stock issued for 401(k) match |
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$ |
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$ |
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Common shares and royalty asset received for sale of Hecla Quebec |
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$ |
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$ |
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The accompanying notes are an integral part of the interim condensed consolidated financial statements.
4
Hecla Mining Company
Condensed Consolidated Balance Sheets (Unaudited)
(In thousands, except shares)
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September 30, 2026 |
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December 31, 2025 |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
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$ |
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$ |
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Accounts receivable: |
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Trade |
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Other, net |
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Inventories: |
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Product inventories |
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Materials and supplies |
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Current investments |
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Other current assets |
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Assets of discontinued operations |
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Total current assets |
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Non-current investments |
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Restricted cash and cash equivalents |
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Property, plants, equipment and mine development, net |
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Operating lease right-of-use assets |
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Other non-current assets |
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Assets of discontinued operations |
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Total assets |
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$ |
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$ |
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LIABILITIES |
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Current liabilities: |
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Accounts payable and accrued liabilities |
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$ |
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$ |
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Accrued payroll and related benefits |
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Accrued taxes |
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Finance leases |
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Accrued reclamation and closure costs |
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Accrued interest |
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Other current liabilities |
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Liabilities of discontinued operations |
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Total current liabilities |
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Accrued reclamation and closure costs |
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Long-term debt including finance leases |
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Deferred tax liabilities |
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Other non-current liabilities |
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Liabilities of discontinued operations |
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Total liabilities |
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STOCKHOLDERS’ EQUITY |
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Preferred stock, |
|
|
|
|
|
|
||
Series B preferred stock, $ |
|
|
|
|
|
|
||
Common stock, $ |
|
|
|
|
|
|
||
Capital surplus |
|
|
|
|
|
|
||
Retained earnings (accumulated deficit) |
|
|
|
|
|
( |
) |
|
Accumulated other comprehensive loss, net |
|
|
( |
) |
|
|
( |
) |
Less treasury stock, at cost; September 30, 2026 — |
|
|
( |
) |
|
|
( |
) |
Total stockholders’ equity |
|
|
|
|
|
|
||
Total liabilities and stockholders’ equity |
|
$ |
|
|
$ |
|
||
The accompanying notes are an integral part of the interim condensed consolidated financial statements.
5
Hecla Mining Company
Condensed Consolidated Statements of Changes in Stockholders’ Equity (Unaudited)
(Dollars are in thousands, except for share and per share amounts)
|
|
Three Months Ended September 30, 2026 |
||||||||||||
|
|
Series B |
|
Common |
|
Capital Surplus |
|
Retained Earnings (Accumulated |
|
Accumulated |
|
Treasury |
|
Total |
Balances, July 1, 2026 |
|
$ |
|
$ |
|
$ |
|
$( |
|
$( |
|
$( |
|
$ |
Net income |
|
— |
|
— |
|
— |
|
|
— |
|
— |
|
||
Stock-based compensation expense |
|
— |
|
— |
|
|
— |
|
— |
|
— |
|
||
Stock-based compensation distributed ( |
|
— |
|
|
|
— |
|
— |
|
|
||||
Common stock ($ |
|
— |
|
— |
|
— |
|
( |
|
— |
|
— |
|
( |
Other comprehensive loss |
|
— |
|
— |
|
— |
|
— |
|
( |
|
|
|
( |
Balances, September 30, 2026 |
|
$ |
|
$ |
|
$ |
|
$ |
|
$( |
|
$( |
|
$ |
|
|
Three Months Ended September 30, 2025 |
||||||||||||
|
|
Series B |
|
Common |
|
Capital Surplus |
|
Accumulated |
|
Accumulated |
|
Treasury |
|
Total |
Balances, July 1, 2025 |
|
$ |
|
$ |
|
$ |
|
$( |
|
$( |
|
$( |
|
$ |
Net income |
|
— |
|
— |
|
— |
|
|
— |
|
— |
|
||
Stock-based compensation expense |
|
— |
|
— |
|
|
— |
|
— |
|
— |
|
||
Stock-based compensation distributed ( |
|
— |
|
|
|
— |
|
— |
|
|
||||
Common stock issued for 401(k) match ( |
|
— |
|
|
|
— |
|
— |
|
— |
|
|||
Common stock ($ |
|
— |
|
— |
|
— |
|
( |
|
— |
|
— |
|
( |
Common stock issued under ATM program ( |
|
— |
|
|
|
— |
|
— |
|
— |
|
|||
Other comprehensive loss |
|
— |
|
— |
|
— |
|
— |
|
( |
|
— |
|
( |
Balances, September 30, 2025 |
|
$ |
|
$ |
|
$ |
|
$( |
|
$( |
|
$( |
|
$ |
|
|
Nine Months Ended September 30, 2026 |
||||||||||||
|
|
Series B |
|
Common |
|
Capital Surplus |
|
Retained Earnings (Accumulated |
|
Accumulated |
|
Treasury |
|
Total |
Balances, January 1, 2026 |
|
$ |
|
$ |
|
$ |
|
$( |
|
$( |
|
$( |
|
$ |
Net income |
|
— |
|
— |
|
— |
|
|
— |
|
— |
|
||
Stock-based compensation expense |
|
— |
|
— |
|
|
— |
|
— |
|
— |
|
||
Stock-based compensation distributed ( |
|
— |
|
|
( |
|
— |
|
— |
|
( |
|
( |
|
Common stock issued for warrant ( |
|
( |
|
|
|
— |
|
— |
|
— |
|
|||
Common stock issued to directors ( |
|
— |
|
|
|
— |
|
— |
|
— |
|
|||
Common stock issued for 401(k) match ( |
|
— |
|
|
|
— |
|
— |
|
— |
|
|||
Common stock ($ |
|
— |
|
— |
|
— |
|
( |
|
— |
|
— |
|
( |
Other comprehensive loss |
|
— |
|
— |
|
— |
|
— |
|
( |
|
— |
|
( |
Balances, September 30, 2026 |
|
$ |
|
$ |
|
$ |
|
$ |
|
$( |
|
$( |
|
$ |
6
|
|
Nine Months Ended September 30, 2025 |
||||||||||||
|
|
Series B |
|
Common |
|
Capital Surplus |
|
Accumulated |
|
Accumulated |
|
Treasury |
|
Total |
Balances, January 1, 2025 |
|
$ |
|
$ |
|
$ |
|
$( |
|
$( |
|
$( |
|
$ |
Net income |
|
— |
|
— |
|
— |
|
|
— |
|
— |
|
||
Stock-based compensation expense |
|
— |
|
— |
|
|
— |
|
— |
|
— |
|
||
Stock-based compensation distributed ( |
|
— |
|
|
( |
|
— |
|
— |
|
( |
|
( |
|
Stock issued for incentive compensation ( |
|
— |
|
|
|
— |
|
— |
|
— |
|
|||
Common stock issued to directors ( |
|
— |
|
|
|
— |
|
— |
|
— |
|
|||
Common stock ($ |
|
— |
|
— |
|
— |
|
( |
|
— |
|
— |
|
( |
Common stock issued under ATM program ( |
|
— |
|
|
|
— |
|
— |
|
— |
|
|||
Common stock issued for 401(k) match ( |
|
— |
|
|
|
— |
|
— |
|
— |
|
|||
Other comprehensive income |
|
— |
|
— |
|
— |
|
— |
|
|
— |
|
||
Balances, September 30, 2025 |
|
$ |
|
$ |
|
$ |
|
$( |
|
$( |
|
$( |
|
$ |
The accompanying notes are an integral part of the interim condensed consolidated financial statements.
7
Note 1. Basis of Preparation of Financial Statements
The accompanying unaudited interim condensed consolidated financial statements of Hecla Mining Company and its subsidiaries (collectively, “Hecla,” “the Company,” “we,” “our,” or “us,” except where the context requires otherwise) have been prepared in accordance with the instructions to Form 10-Q and do not include all information and disclosures required annually by accounting principles generally accepted in the United States of America (“GAAP”). Therefore, this information should be read in conjunction with the Company’s consolidated financial statements and notes contained in our annual report for the year ended December 31, 2025, which were revised to conform with current year financial statement changes as described in Note 2U. Reclassifications — regarding reclassifications in the Consolidated Statements of Operations and Comprehensive Income (Loss) presentation and the elimination of Casa Berardi as segment and reported as a discontinued operation and are included in Exhibit 99.1 to the Company's Current Report on Form 8-K filed with the Securities and Exchange Commission on August 28, 2026. The information furnished herein reflects all adjustments that are, in the opinion of management, necessary for the fair presentation of the results for the interim periods reported. All such adjustments are, in the opinion of management, of a normal recurring nature. Operating results for the three and nine months ended September 30, 2026 are not necessarily indicative of the results that may be expected for the year ending December 31, 2026.
On March 25, 2026, we completed the previously announced sale of our wholly owned subsidiary Hecla Quebec Inc. (“Hecla Quebec”), which owned the Casa Berardi mine and other exploration properties in Quebec, Canada, to Orezone Gold Corporation (“Orezone”) for total undiscounted consideration of up to $
During the nine months ended September 30, 2026, we also completed the sale of our immaterial Mexican subsidiaries, Minera Hecla and Industrias Hecla, as we executed on our strategic decision to exit Mexico. Minera Hecla was engaged in rehabilitation activities of the former San Sebastian mine site. Total cash consideration of $
Note 2. Business Segments and Sales of Products
We discover, acquire and develop mines and other mineral interests and produce and market (i) concentrates containing silver, gold, lead, zinc, and copper, and (ii) doré containing silver and gold. We are currently organized and managed in
We regularly review our segment reporting for alignment with our strategic goals and operational structure as well as for evaluation of business performance and the allocation of resources by our President and Chief Executive Officer, who has been identified as our Chief Operating Decision Maker ("CODM"). The CODM evaluates the performance for all of our reportable segments based on gross profit. For all segments, the CODM uses segment gross profit to assess segment performance and allocate resources for each segment predominantly in the annual budget and quarterly forecasting process. The CODM considers budget to actual variances on a monthly basis when making decisions about allocating capital and personnel to the segments. Significant segment expenses that drive the financial performance of our reportable segments are (i) salaries, wages and other benefits, (ii) contractors, (iii) materials and consumables, (iv) change in product inventory, and (v) other direct production costs. In further evaluating the operational performance of each segment, the CODM also considers the amount of metal production versus budget, and the grade of the metal processed.
General corporate activities not associated with operating mines and their various exploration activities, as well as idle properties and environmental remediation services we provide in the Yukon, Canada, are presented as “other.” The nature of the items that reconcile gross profit (loss) to income before income and mining taxes are not related to our reportable segments.
8
The tables below present information about our reportable segments for the three and nine months ended September 30, 2026 and 2025 (in thousands):
Three months ended September 30, 2026 |
Greens Creek |
|
Lucky Friday |
|
Keno Hill |
|
Total Reportable Segments |
|
Other |
|
Total |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Metal sales |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||
Environmental remediation services |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Intersegment sales |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Reconciliation of sales |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Elimination of intersegment sales |
|
|
|
|
|
( |
) |
|
( |
) |
|
|
|
( |
) |
|||
Total consolidated sales |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Salaries, wages and other benefits |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Contractors |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Materials and consumables |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Product inventory change |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Other direct production costs |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Depreciation, depletion and amortization |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Gross profit (loss) |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
( |
) |
$ |
|
|||||
Other operating expenses (a) |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Income from operations |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest expense |
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|||||
Fair value adjustments, net |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Foreign exchange loss, net |
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|||||
Other income |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Income before income and mining taxes |
|
|
|
|
|
|
|
|
|
|
$ |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Capital investments |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||
(a)
9
Three months ended September 30, 2025 |
Greens Creek |
|
Lucky Friday |
|
Keno Hill |
|
Total Reportable Segments |
|
Other |
|
Total |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Metal sales |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||
Environmental remediation services |
|
|
|
|
|
|
|
|
|
16,191 |
|
|
|
|||||
Intersegment sales |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Reconciliation of sales |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Elimination of intersegment sales |
|
|
|
|
|
( |
) |
|
( |
) |
|
|
|
( |
) |
|||
Total consolidated sales |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Salaries, wages and other benefits |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Contractors |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Materials and consumables |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Product inventory change |
|
|
|
( |
) |
|
|
|
|
|
|
|
|
|||||
Other direct production costs |
|
|
|
|
|
( |
) |
|
|
|
|
|
|
|||||
Depreciation, depletion and amortization |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Gross profit |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||
Other operating expenses (a) |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Income from operations |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest expense |
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|||||
Fair value adjustments, net |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Foreign exchange gain, net |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Other income |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Income before income and mining taxes |
|
|
|
|
|
|
|
|
|
|
$ |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Capital investments |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||
(a)
10
Nine months ended September 30, 2026 |
Greens Creek |
|
Lucky Friday |
|
Keno Hill |
|
Total Reportable Segments |
|
Other |
|
Total |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Metal sales |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||
Environmental remediation services |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Intersegment sales |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Reconciliation of sales |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Elimination of intersegment sales |
|
|
|
|
|
( |
) |
|
( |
) |
|
|
|
( |
) |
|||
Total consolidated sales |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Salaries, wages and other benefits |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Contractors |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Materials and consumables |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Product inventory change |
|
|
|
|
|
( |
) |
|
|
|
|
|
|
|||||
Other direct production costs |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Depreciation, depletion and amortization |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Gross profit |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||
Other operating expenses (a) |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Income from operations |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest expense |
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|||||
Fair value adjustments, net |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Foreign exchange loss, net |
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|||||
Other income |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Income before income and mining taxes |
|
|
|
|
|
|
|
|
|
|
$ |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Capital investments |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||
(a)
11
Nine months ended September 30, 2025 |
Greens Creek |
|
Lucky Friday |
|
Keno Hill |
|
Total Reportable Segments |
|
Other |
|
Total |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Metal sales |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||
Environmental remediation services |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Intersegment sales |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Reconciliation of sales |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Elimination of intersegment sales |
|
|
|
|
|
( |
) |
|
( |
) |
|
|
|
( |
) |
|||
Total consolidated sales |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Salaries, wages and other benefits |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Contractors |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Materials and consumables |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Product inventory change |
|
( |
) |
|
( |
) |
|
|
|
( |
) |
|
|
|
( |
) |
||
Other direct production costs |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Depreciation, depletion and amortization |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Gross profit (loss) |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
( |
) |
$ |
|
|||||
Other operating expenses (a) |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Income from operations |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest expense |
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|||||
Fair value adjustments, net |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Foreign exchange loss, net |
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|||||
Other income |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Income before income and mining taxes |
|
|
|
|
|
|
|
|
|
|
$ |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Capital investments |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||
(a)
Other sales for the three and nine months ended September 30, 2026 and 2025, consists solely of revenue from our environmental remediation services subsidiary in the Yukon. During the three and nine months ended September 30, 2026, Keno Hill sold $
Sales by metal for the three and nine months ended September 30, 2026 and 2025 were as follows (in thousands):
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
||||||||||
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
||||
Silver |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Gold |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Lead |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Zinc |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Copper |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Less: Smelter and refining charges |
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
||
Total metal sales |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Environmental remediation services |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total sales |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
The Company enters into sales contracts with third-party smelters, refiners and off-take customers which, in some cases, provide for a provisional payment based upon preliminary assays and quoted metal prices. The provisionally priced sales contracts contain an embedded derivative that is required to be separated from the host contract for accounting purposes. The host contract is the receivable recorded at the forward price at the time of sale. The embedded derivatives do not qualify for hedge accounting and are marked to market through earnings each period until final settlement.
12
Sales of metals for the three months ended September 30, 2026 include net losses of $
The following table presents total assets by reportable segment as of September 30, 2026 and December 31, 2025 (in thousands):
|
|
September 30, 2026 |
|
|
December 31, 2025 |
|
||
Total assets: |
|
|
|
|
|
|
||
Greens Creek |
|
$ |
|
|
$ |
|
||
Lucky Friday |
|
|
|
|
|
|
||
Keno Hill |
|
|
|
|
|
|
||
Total assets of reportable segments |
|
|
|
|
|
|
||
Other |
|
|
|
|
|
|
||
Assets of discontinued operations |
|
|
|
|
|
|
||
Total assets |
|
$ |
|
|
$ |
|
||
Note 3. Income and Mining Taxes
Major components of our income and mining tax for the three and nine months ended September 30, 2026 and 2025 are as follows (in thousands):
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
||||||||||
|
|
September 30, |
|
|
September 30, |
|
||||||||||
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
||||
Current: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Domestic |
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
Foreign |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
Total current income and mining tax provision |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Deferred: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Domestic |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
Foreign |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Total deferred income and mining tax provision |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
Total income and mining tax provision |
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
The income and mining tax provision for the three and nine months ended September 30, 2026 and 2025 varies from the amounts that would have resulted from applying the statutory tax rates to pre-tax income primarily due to the impact of taxation in foreign jurisdictions, domestic and foreign mining taxes, percentage depletion, non-recognition of net operating losses, the tax effect of Global Intangible Low-Taxed Income and subpart F income inclusion, foreign exchange gains and losses in certain jurisdictions, and the tax effects of the entity classification election discussed below.
For the three and nine months ended September 30, 2026, we used the annual effective tax rate method to calculate the income and mining tax provision. During the second quarter we filed and were approved for an Entity Classification Election to classify Klondex Mines Unlimited Liability Company, the subsidiary that owns our Nevada assets, as a disregarded entity effective January 1, 2026. The Klondex (USA) Group joined the U.S. consolidated Hecla Mining Company Group's income tax filings. Due to this change in entity classification, we released a portion of the valuation allowance and revalued the state deferred tax liabilities in our Klondex USA tax group. These amounts were treated as discrete adjustments within the tax provision.
We file income tax returns in U.S. federal and state jurisdictions. Our Canadian subsidiaries file income tax returns in Canada, as well as in the province of British Columbia, and the Yukon Territory.
13
Note 4. Employee Benefit Plans
We sponsor defined benefit pension plans covering all non-hourly U.S. employees hired prior to July 2024 and our hourly workers at the Lucky Friday mine, as well as a Supplemental Excess Retirement Plan ("SERP") covering certain eligible employees.
Net periodic pension cost for the plans consisted of the following for the three and nine months ended September 30, 2026 and 2025 (in thousands):
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
||||||||||
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
||||
Service cost |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Interest cost |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Expected return on plan assets |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Amortization of prior service cost |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Amortization of net loss |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net periodic pension cost |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
For the three and nine months ended September 30, 2026 and 2025, the service cost component of net periodic pension cost is included in the same line items of our condensed consolidated financial statements as other employee compensation costs. For the three and nine months ended September 30, 2026, the net benefit related to all other components of net periodic pension cost of $
14
Note 5. Income (Loss) Per Common Share
We calculate basic earnings per common share on the basis of the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share is calculated using the weighted average number of shares of common stock outstanding during the period plus the effect of potential dilutive common shares during the period using the treasury stock and if-converted methods.
Potential dilutive shares of common stock include outstanding unvested restricted stock awards, deferred restricted stock units, unvested performance-based units, and convertible preferred stock (collectively referred to as dilutive units) for all periods presented.
The following table represents net income (loss) per common share – basic and diluted (in thousands, except income
(loss) per share):
|
|
Three months ended September 30, |
|
|
Nine months ended September 30, |
|
||||||||||
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
||||
Numerator |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Income from continuing operations |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Income (loss) from discontinued operations |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|||
Preferred stock dividends |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Net income applicable to common stockholders |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Denominator |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic weighted average common shares |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Dilutive units |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Diluted weighted average common shares |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic income per share: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Income from continuing operations |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Income (loss) from discontinued operations |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|||
Basic earnings per common share |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Diluted income per common share |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Income from continuing operations |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Income (loss) from discontinued operations |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|||
Diluted earnings per common share |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Note 6. Stockholders’ Equity
Warrants
We have
At-The-Market ("ATM") Equity Distribution Agreement
Pursuant to an equity distribution agreement dated February 18, 2021, we may offer and sell up to
Preferred Stock
15
During the nine months ended September 30, 2026,
Stock-based Compensation Plans
We have stock incentive plans for executives, directors, and eligible employees, under which performance stock units, restricted stock units, and shares of common stock are granted. For the three and nine months ended September 30, 2026, stock-based compensation expense for restricted stock units and performance-based grants to employees, totaled $
The following table summarizes the stock-based compensation grants awarded during the nine months ended September 30, 2026:
Grant date |
|
Award type |
|
Number granted |
|
|
Grant date fair value per share |
|
|
Restricted stock |
|
|
|
|
|||
|
Performance based |
|
|
|
|
|||
Pursuant to our directors stock plan,
In connection with the vesting of incentive and share-based compensation, certain employees have in the past, at their election and when permitted by us, chosen to satisfy their minimum tax withholding obligations through net share settlement, pursuant to which we withhold the number of shares necessary to satisfy such tax withholding obligations and pay the obligations in cash. As a result, in the nine months ended September 30, 2026, we withheld
Common and Preferred Stock Dividends
During the first three quarters of 2026, our Board of Directors declared and we paid a quarterly dividend of $
Accumulated Other Comprehensive Income (Loss), Net ("AOCI")
The following table lists the beginning balance, quarterly activity, and ending balances, net of income and mining tax, of each component of “Accumulated Other Comprehensive Income (Loss), net” (in thousands):
|
|
Changes in fair value of derivative contracts designated as hedge transactions |
|
|
Adjustments |
|
|
AOCI |
|
|||
Balance January 1, 2026 |
|
$ |
|
|
$ |
( |
) |
|
$ |
( |
) |
|
Other comprehensive loss before reclassification |
|
|
( |
) |
|
|
|
|
|
( |
) |
|
Reclassification from AOCI to sales |
|
|
( |
) |
|
|
|
|
|
( |
) |
|
Reclassification from AOCI to costs applicable to sales |
|
|
|
|
|
|
|
|
|
|||
Reclassification from AOCI to fair value adjustments, net |
|
|
|
|
|
|
|
|
|
|||
Provision for income taxes |
|
|
|
|
|
|
|
|
|
|||
Balance March 31, 2026 |
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
Other comprehensive loss before reclassification |
|
|
( |
) |
|
|
— |
|
|
|
( |
) |
Reclassification from AOCI to sales |
|
|
|
|
|
— |
|
|
|
|
||
Provision for income taxes |
|
|
|
|
|
|
|
|
|
|||
Balance June 30, 2026 |
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
Other comprehensive loss before reclassification |
|
|
( |
) |
|
|
|
|
|
( |
) |
|
Reclassification from AOCI to sales |
|
|
|
|
|
|
|
|
|
|||
Provision for income taxes |
|
|
|
|
|
|
|
|
|
|||
Balance September 30, 2026 |
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
16
|
|
Changes in fair value of derivative contracts designated as hedge transactions |
|
|
Adjustments |
|
|
AOCI |
|
|||
Balance January 1, 2025 |
|
$ |
|
|
$ |
( |
) |
|
$ |
( |
) |
|
Other comprehensive gain before reclassification |
|
|
|
|
|
|
|
|
|
|||
Reclassification from AOCI to sales |
|
|
( |
) |
|
|
|
|
|
( |
) |
|
Reclassification from AOCI to discontinued operations |
|
|
|
|
|
|
|
|
|
|||
Provision for income taxes |
|
|
( |
) |
|
|
|
|
|
( |
) |
|
Balance March 31, 2025 |
|
$ |
|
|
$ |
( |
) |
|
$ |
( |
) |
|
Other comprehensive gain before reclassification |
|
|
|
|
|
|
|
|
|
|||
Reclassification from AOCI to sales |
|
|
( |
) |
|
|
|
|
|
( |
) |
|
Reclassification from AOCI to discontinued operations |
|
|
|
|
|
|
|
|
|
|||
Provision for income taxes |
|
|
( |
) |
|
|
|
|
|
( |
) |
|
Balance June 30, 2025 |
|
$ |
|
|
$ |
( |
) |
|
$ |
( |
) |
|
Other comprehensive loss before reclassification |
|
|
( |
) |
|
|
|
|
|
( |
) |
|
Reclassification from AOCI to sales |
|
|
( |
) |
|
|
|
|
|
( |
) |
|
Reclassification from AOCI to discontinued operations |
|
|
|
|
|
|
|
|
|
|||
Provision for income taxes |
|
|
|
|
|
|
|
|
|
|||
Balance September 30, 2025 |
|
$ |
|
|
$ |
( |
) |
|
$ |
( |
) |
|
Note 7. Debt, Credit Agreement and Leases
On April 9, 2026, we repaid the remaining $
The following table summarizes our long-term debt balances as of December 31, 2025 (in thousands):
|
|
December 31, 2025 |
|
|
|
|
Senior Notes |
|
|
Principal |
|
$ |
|
|
Unamortized discount/premium and issuance costs |
|
|
( |
) |
Total debt |
|
$ |
|
|
The following table summarizes the scheduled annual future payments, including interest, for our finance and operating leases as of September 30, 2026 (in thousands). Operating leases are included in other current and non-current liabilities on our condensed consolidated balance sheets. See Note 11 for more information.
Twelve-month period ending September 30, |
|
Finance Leases |
|
|
Operating Leases |
|
||
2027 |
|
$ |
|
|
$ |
|
||
2028 |
|
|
|
|
|
|
||
2029 |
|
|
|
|
|
|
||
2030 |
|
|
|
|
|
|
||
2031 |
|
|
|
|
|
|
||
Thereafter |
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
Less: effect of discounting |
|
|
( |
) |
|
|
( |
) |
Total |
|
$ |
|
|
$ |
|
||
17
Credit Agreement
New $500 million facility
On September 16, 2026, we entered into a revolving credit agreement (the “New Credit Agreement”) with various financial institutions (the “Lenders”), Bank of Montreal and Bank of America, N.A. as letters of credit issuers, and Bank of America, N.A., as administrative agent for the Lenders and as swingline lender and L/C issuer.
The New Credit Agreement provides for a $
The interest rate on outstanding loans under the New Credit Agreement is, at the option of the applicable borrower, based on Term Secured Overnight Financing Rate ("SOFR") or a base rate, in each case plus an applicable margin determined in accordance with the terms of the New Credit Agreement.
We are required to pay a commitment fee of between
Hecla Mining Company and certain of our subsidiaries are borrowers under the New Credit Agreement, while certain of our subsidiaries are guarantors of the borrowers obligations under the New Credit Agreement. As further security, the New Credit Agreement is collateralized by certain equity interests of subsidiaries associated with the Greens Creek operations. Unlike the Prior Credit Agreement, the New Credit Agreement does not include a mortgage on the Greens Creek mine or a lien on substantially all assets of the Greens Creek Group.
At September 30, 2026, we had
We believe we were in compliance with all covenants under the New Credit Agreement as of September 30, 2026.
Prior $225 million facility
On July 21, 2022, we entered into a revolving credit agreement (as amended the "Prior Credit Agreement") providing for a $
We were also able to obtain letters of credit under the facility, and for any such letters we were required to pay a participation fee of between
In connection with our entry into the New Credit Agreement, the Prior Credit Agreement was terminated on
Note 8. Derivative Instruments
General
Our current risk management policy provides that up to
These instruments expose us to (i) credit risk in the form of non-performance by counterparties for contracts in which the contract price exceeds the spot price of the hedged commodity or foreign currency and (ii) price risk to the extent that the spot price or
18
currency exchange rate exceeds the contract price for quantities of our production and/or forecasted costs covered under contract positions.
Foreign Currency
Our wholly-owned non-US subsidiaries owning the Keno Hill operation are USD-functional currency entities which routinely incur Canadian dollar ("CAD") denominated expenses. Such expenses expose us to exchange rate fluctuations, for which we have a program to manage our exposure to fluctuations of these subsidiaries' future CAD denominated operating and capital costs. The program utilizes forward contracts to buy CAD, which are not designated as cash flow hedges.
During the nine months ended September 30, 2026, realized losses of $
As of September 30, 2026, we have a total of
As of September 30, 2026 and December 31, 2025, we recorded the following balances for the fair value of the forward contracts (in millions):
|
|
September 30, |
|
|
December 31, |
|
||
Balance sheet line item: |
|
2026 |
|
|
2025 |
|
||
Other current assets |
|
$ |
|
|
$ |
|
||
Other current liabilities |
|
|
( |
) |
|
|
( |
) |
For the three and nine months ended September 30, 2026, a net gain of $
Metals Prices
We currently utilize a combination of derivatives including financially settled forward contracts, commodity price collars, and commodity price put options to manage the exposure to:
The following tables summarize the quantities of metals committed under forward metals contracts at September 30, 2026 and December 31, 2025 which are designated and accounted for as cash flow hedges:
September 30, 2026 |
|
Pounds under contract (in 000's) |
|
|
Average price per pound |
|
||||||||||
|
|
Zinc |
|
|
Lead |
|
|
Zinc |
|
|
Lead |
|
||||
|
|
(pounds) |
|
|
(pounds) |
|
|
(pounds) |
|
|
(pounds) |
|
||||
Contracts on provisional sales |
|
|
|
|
|
|
|
|
|
|
|
|
||||
2026 settlements |
|
|
|
|
|
|
|
$ |
|
|
$ |
|
||||
2027 settlements |
|
|
|
|
|
— |
|
|
$ |
|
|
$ |
— |
|
||
Contracts on forecasted sales |
|
|
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||||
2026 settlements |
|
|
— |
|
|
|
|
|
$ |
— |
|
|
$ |
|
||
2027 settlements |
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|
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— |
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|
$ |
|
|
$ |
— |
|
||
2028 settlements |
|
|
|
|
|
— |
|
|
$ |
|
|
$ |
— |
|
||
19
December 31, 2025 |
|
Pounds under contract (in 000's) |
|
|
Average price per pound |
|
||||||||||
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|
Zinc |
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Lead |
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Zinc |
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Lead |
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||||
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|
(pounds) |
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(pounds) |
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(pounds) |
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(pounds) |
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||||
Contracts on provisional sales |
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||||
2026 settlements |
|
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$ |
|
|
$ |
|
||||
Contracts on forecasted sales |
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||||
2026 settlements |
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||||
2027 settlements |
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N/A |
|
||||
We utilize Zero Cost Collars ("Collars") to manage our exposure to changes in the price of precious metals in our provisional concentrate sales shipments. These Collars provide us a contractual right to receive at least the minimum price if market prices fall below the minimum price level specified in the contracts, while limiting our potential gains to the maximum price level specified in the contracts, should market prices rise higher. Should the price at settlement date be within the Collars price range, the Collars expire unexercised and we receive the spot price on settlement date. This strategy helps protect us from significant price drops while still allowing for some upside participation within the minimum and maximum price range. For the three and nine months ended September 30, 2026, these Collars had net gains of $
The following table summarizes the quantities of silver and gold ounces committed under Collars at September 30, 2026.
Settlement Period |
|
Ounces under contract |
|
|
Average strike price per silver ounce |
|
|
Average strike price per gold ounce |
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|||||||||||||||
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Silver (ounces) |
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Gold (ounces) |
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Minimum ($) |
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Maximum ($) |
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Minimum ($) |
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Maximum ($) |
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||||||
Contracts on provisional sales |
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||||||
2026 settlements |
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||||||
In December 2025, we entered into financially-settled put option contracts to manage the exposure of future silver sales to potential declines in silver market prices. These put options give us the option, but not the obligation, to realize established prices on quantities of silver to be sold in the future. For the three and nine months ended September 30, 2026, we recognized net losses of $
Settlement Period |
|
|
|
Production Protected (in 000's) |
|
|
Strike price per ounce |
|
||
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|
Silver (ounces) |
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($) |
|
||
Contracts on forecasted sales |
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|
||
2026 settlements |
|
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|
||
We recorded the following balances for the fair value of our metals price contracts as of September 30, 2026 and December 31, 2025 (in millions):
|
|
September 30, |
|
|
December 31, |
|
||
Balance sheet line item: |
|
2026 |
|
|
2025 |
|
||
Other current assets |
|
$ |
|
|
$ |
|
||
Other non-current assets |
|
|
|
|
|
|
||
Other current liabilities |
|
|
( |
) |
|
|
( |
) |
Other non-current liabilities |
|
|
( |
) |
|
|
( |
) |
Net unrealized losses of $
During the three months ended September 30, 2026, we recognized a net loss of $
20
from accumulated other comprehensive loss (2025: $
The losses recognized on the contracts offset net gains of $
Credit-risk-related Contingent Features
Certain of our derivative contracts contain cross-default provisions which provide that a default under our Credit Agreement would cause a default under the derivative contract. As of September 30, 2026, we have not posted any collateral related to these contracts. The fair value of derivatives in a net liability position related to these agreements was $
Note 9. Fair Value Measurement
Fair value adjustments, net is comprised of the following (in thousands):
|
|
Three months ended September 30, |
|
|
Nine months ended September 30, |
|
||||||||||
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
||||
Loss on derivative contracts |
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
Gain on sale of equity security investments |
|
|
|
|
|
|
|
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|
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|
||||
|
|
|
|
|
|
|
|
( |
) |
|
|
|
||||
Total fair value adjustments, net |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
During the three and nine months ended September 30, 2026, we disposed of
Accounting guidance has established a hierarchy for inputs used to measure assets and liabilities at fair value on a recurring basis. The three levels included in the hierarchy are:
Level 1: quoted prices in active markets for identical assets or liabilities;
Level 2: significant other observable inputs; and
Level 3: significant unobservable inputs.
The table below sets forth our assets and liabilities that were accounted for at fair value on a recurring basis and the fair value calculation input hierarchy level that we have determined applies to each asset and liability category (in thousands).
21
Description |
|
Balance at |
|
|
Balance at |
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|
Input |
||
Assets: |
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||
Cash and cash equivalents: |
|
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|
|
|
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|
||
Money market funds and other bank deposits |
|
$ |
|
|
$ |
|
|
Level 1 |
||
Current and non-current investments: |
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|
|
||
Equity securities |
|
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|
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|
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Level 1 |
||
Trade accounts receivable: |
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|
||
Receivables from provisional concentrate sales |
|
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Level 2 |
||
Restricted cash and cash equivalent balances: |
|
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|
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|
||
Certificates of deposit and other deposits |
|
|
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|
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|
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Level 1 |
||
Derivative contracts - current and non-current derivative assets: |
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|
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Foreign exchange contracts |
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Level 2 |
||
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Level 2 |
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Gold-price contingent asset |
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Level 2 |
||
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|
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Liabilities: |
|
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|
|
|
|
|
|
||
Derivative contracts - current and non-current derivative liabilities: |
|
|
|
|
|
|
|
|
||
Foreign exchange contracts |
|
$ |
|
|
$ |
|
|
Level 2 |
||
Metal forward contracts |
|
|
|
|
|
|
|
Level 2 |
||
Cash and cash equivalents consist primarily of money market funds which are carried at fair value.
Non-current restricted cash and cash equivalent balances consist primarily of certificates of deposit, U.S. Treasury securities, and other deposits and are valued at cost, which approximates fair value.
Our current and non-current investments consist of marketable equity securities of mining companies and mutual funds held by our SERP which are valued using quoted market prices for each security.
Trade accounts receivable from provisional concentrate sales are subject to final pricing and valued using quoted prices based on the forward price curves for the particular metals.
We use financially-settled forward contracts to manage exposure to changes in the exchange rate between USD and CAD, and the impact on CAD-denominated operating and capital costs incurred at our Keno Hill operation (see Note 8 for more information). The fair value of each contract represents the present value of the difference between the forward exchange rate for the contract settlement period as of the measurement date and the contract settlement exchange rate.
We use derivative contracts to (i) manage the exposure to changes in prices of silver, gold, zinc, and lead contained in our concentrate shipments that have not reached final settlement and (ii) manage the exposure to changes in prices of silver, zinc, and lead contained in our forecasted future sales (see Note 8 for more information). The fair value of each forward contract represents the present value of the difference between the forward metal price for the contract settlement period as of the measurement date and the contract settlement metal price.
The gold-price linked contingent assets were part of the consideration for the sale of Hecla Quebec to Orezone (see Note 13). The contingent assets are valued quarterly using an option pricing model with observable inputs.
The New Credit Agreement, which we consider to be Level 2 in the fair value hierarchy, has a carrying and fair value of nil.
Note 10. Product Inventories
Our major components of product inventories are (in thousands):
|
|
September 30, 2026 |
|
|
December 31, 2025 |
|
||
Concentrates |
|
$ |
|
|
$ |
|
||
Stockpiled ore |
|
|
|
|
|
|
||
Total product inventories |
|
$ |
|
|
$ |
|
||
22
Note 11. Commitments, Contingencies and Obligations
San Mateo Creek Basin, New Mexico
In July 2018, the EPA informed Hecla Limited that it and several other potentially responsible parties (“PRPs”) may be liable for cleanup of the San Mateo Creek Basin (“SMCB”), which is an approximately 321 square mile area in New Mexico that contains numerous legacy uranium mines and mills. At the time, the EPA stated it had incurred approximately $
Carpenter Snow Creek and Barker-Hughesville Sites in Montana
In July 2010, the EPA made a formal request to Hecla for information regarding the Carpenter Snow Creek Superfund site located in Cascade County, Montana. The Carpenter Snow Creek site is located in a historical mining district, and in the early 1980s Hecla Limited leased 6 mining claims and performed limited exploration activities at the site. Hecla Limited terminated the mining lease in 1988.
In June 2011, the EPA informed Hecla Limited that it believes Hecla Limited, and several other PRPs, may be liable for cleanup of the site or for costs incurred by the EPA in cleaning up the site. The EPA stated in the letter that it has incurred approximately $
In February 2017, the EPA made a formal request to Hecla for information regarding the Barker-Hughesville Mining District Superfund site located in Judith Basin and Cascade Counties, Montana. Hecla Limited submitted a response in April 2017. The Barker-Hughesville site is located in a historic mining district, and between approximately June and December 1983, Hecla Limited was party to an agreement with another mining company under which limited exploration activities occurred at or near the site.
In August 2018, the EPA informed Hecla Limited that it and several other PRPs may be liable for cleanup of the site or for costs incurred by the EPA in cleaning up the site. The EPA did not include an amount of its alleged response costs to date. Hecla Limited cannot with reasonable certainty estimate the amount or range of liability, if any, relating to this matter because of, among other reasons, the lack of information concerning past or anticipated future costs at the site and the relative contributions of contamination by various other PRPs.
Contingencies Relating to former Casa Berardi Segment
In May 2023, the wall of an impoundment dam (HM3) storing mixed waste material (i.e. clay, till, and rock, but not tailings or other deleterious materials) stripped during open pit mining at our former Casa Berardi mine experienced a slip resulting in the waste material being mobilized downstream. The incident was investigated by the Quebec Ministry of Environment, Fight Against Climate Change, Wildlife and Parks. This investigation resulted in the issuance in July 2026 of four Statements of Offence by the Directeur des poursuites criminelles et pénales (the Quebec authority responsible for prosecuting penal violations of environmental legislation) against Orezone Quebec Inc. (formerly Hecla Quebec Inc.), alleging non-compliance with the conditions of HM3's waste storage authorization and an unauthorized release of contaminants in connection with the incident described above, and seeking penalties, costs, and contributions of approximately $
Under the terms of our sale of Hecla Quebec to Orezone, we have agreed to reimburse Orezone for any financial penalties, fines, charges, surcharges, or other amounts payable as a result of the HM3 incident described above, excluding any remediation, closure or similar work at HM3 or any costs associated therewith. We are not liable for any portion of such penalties resulting from actions taken at Casa Berardi after closing. Another term of the transaction provides Orezone with a set-off right to reduce future deferred cash payments owed to us if the financial assurance required under Casa Berardi’s updated closure plan exceeds $
23
terms of the purchase agreement, excluding amounts arising from the mine's post-closing actions that increase the closure scope beyond what is currently contemplated. We have accrued $
Debt
See Note 7 for information on the commitments related to our debt arrangements as of September 30, 2026.
Other Commitments
Our contractual obligations as of September 30, 2026 included open purchase orders and commitments of $
Other Contingencies
We also have certain other contingencies resulting from litigation, claims, EPA investigations, and other commitments and are subject to a variety of environmental and safety laws and regulations incident to the ordinary course of business. We currently have no basis to conclude that any or all of such contingencies will materially affect our financial position, results of operations, or cash flows. However, in the future, there may be changes to these contingencies, or additional contingencies may occur, any of which might result in an accrual or a change in current accruals recorded by us, and there can be no assurance that their ultimate disposition will not have a material adverse effect on our financial position, results of operations, or cash flows.
Note 12. Recent Accounting Pronouncements
Accounting Standard Updates that Became Effective in the Current Period
In September 2025, the FASB issued ASU 2025-07, Derivatives and Hedging (Topic 815) and Revenue from Contracts with Customers (Topic 606): Derivatives Scope Refinements and Scope Clarification for Share-Based Noncash Consideration from a Customer in a Revenue Contract. The ASU expands an existing scope exception under ASC 815 to exclude certain contracts with underlyings based on the operations or activities of one of the parties, such as contingent payments the Company may receive related to the permitting success of two open pits at Casa Berardi. The ASU is effective for annual periods beginning after December 15, 2026, including interim periods therein. We early adopted ASU 2025-07 during the nine months ended September 30, 2026.
Accounting Standards Updates to Become Effective in Future Periods
In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income (Topic 220): Expense Disaggregation Disclosures, which includes amendments to require the disclosure of certain specific costs and expenses that are included in a relevant expense caption on the face of the income statement. Specific costs and expenses that would be required to be disclosed include: (i) purchases of inventory, (ii) employee compensation, (iii) depreciation, (iv) depreciation, depletion and amortization from oil and gas, and other extractive sector activities, and (v) intangible asset amortization. Additionally, a qualitative description of other items is required, equal to the difference between the relevant expense caption and the separately disclosed specific costs. The amendments in ASU 2024-03 are effective for fiscal years beginning after December 15, 2026, and for interim periods beginning after December 15, 2027, and are applied either prospectively or retrospectively at the option of the Company. We are evaluating the impact of the amendments on our consolidated financial statements and disclosures.
Note 13. Sale of Hecla Quebec Inc. and Discontinued Operations
24
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 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 investment opportunities.
As part of the sale of Hecla Quebec, we received total consideration with a fair value of $
The fair value of the Deferred Cash Consideration was determined using a present value model by reference to Orezone's estimated credit rating and considering the expected excess closure amount to be withheld from the first payment. The Deferred Cash Consideration payments consists of two installments, due at 18 and 30 months from the closing date, and are classified as receivables recorded at amortized cost due to being contractual rights to receive cash. The discount will be unwound in line with the effective interest method and recognized as interest income over the respective payment periods for each payment. At September 30, 2026, the first instalment is due within 12 months and has been classified as a current receivable which is included in other current assets, and the second instalment (due at 30 months from the closing date) is a non-current receivable, which is included in other non-current assets on the unaudited interim Condensed Consolidated Balance Sheet.
The fair value of each Contingent Cash Consideration payment to be received was determined by using an option pricing model, with significant assumptions including the following: expected success and timing of permitting, the timing of when production would commence, forward gold prices, and Orezone's estimated credit rating. The Company concluded that each contingent consideration payment to be received is a financial asset as it will be settled in cash. The Company next evaluated whether each contingent consideration payment is within the scope of ASC 815 "Derivatives and Hedging" or not. For the contingent consideration payment to be received linked to future gold prices, we concluded that the underlying being the gold price is a market rate, and that the fair value of this contingent consideration payment is assessed at each reporting date, with changes in fair value recorded in earnings. The contingent consideration payments linked to future assets have been classified as current and non-current receivables, which is included in other current and non-current assets on the Condensed Consolidated Balance Sheet, due to being contractual rights to receive cash at 12 and 24 months, and have been recorded at fair value.
For the contingent consideration payments linked to permitting success and future production following permitting success, we concluded these contingent consideration payments are not within the scope of ASC 815, "Derivatives and Hedging" as the receipt of the permits and future production are subject to operational and/or regulatory factors. The Company elected to follow the guidance in ASC 450, Contingencies which requires subsequent assessment for indicators of impairment. Additionally, payment received in excess of initial fair value recorded will be recognized as gains in the period received. The contingent consideration payments linked to permitting success and future production following permitting success, have been classified as non-current receivables, which is included in other non-current assets on the Condensed Consolidated Balance Sheet.
We recognized a loss of $
25
Below is a summary of Hecla Quebec's results from discontinued operations for the nine months ended September 30, 2026, three and nine months ended September 30, 2025, and statement of financial position as of December 31, 2025.
Hecla Quebec Inc.
Results of Discontinued Operations
(Dollars are in Thousands)
|
Three Months Ended |
|
|
Nine Months Ended |
|
||||||
|
September 30, 2025 |
|
|
September 30, 2026 |
|
|
September 30, 2025 |
|
|||
Sales |
$ |
|
|
$ |
|
|
$ |
|
|||
COSTS AND EXPENSES |
|
|
|
|
|
|
|
|
|||
Costs applicable to sales (1) |
|
|
|
|
|
|
|
|
|||
Depreciation, depletion and amortization |
|
|
|
|
|
|
|
|
|||
Exploration and pre-development |
|
|
|
|
|
|
|
|
|||
Other operating income, net |
|
|
|
|
|
|
|
( |
) |
||
Total costs and expenses |
|
|
|
|
|
|
|
|
|||
Income from discontinued operations |
|
|
|
|
|
|
|
|
|||
Other expense: |
|
|
|
|
|
|
|
|
|||
Interest expense |
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Fair value adjustments, net |
|
( |
) |
|
|
( |
) |
|
|
|
|
Net foreign exchange (loss) gain |
|
( |
) |
|
|
|
|
|
|
||
Other income |
|
|
|
|
— |
|
|
|
|
||
Total other expense (income) |
|
( |
) |
|
|
( |
) |
|
|
|
|
Income from discontinued operations |
|
|
|
|
|
|
|
|
|||
Loss on disposal of Hecla Quebec Inc. |
|
|
|
|
( |
) |
|
|
|
||
Income and mining tax provision |
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Income (loss) from discontinued operations, net of taxes |
$ |
|
|
$ |
( |
) |
|
$ |
|
||
(1) Excludes depreciation, depletion and amortization |
|
|
|
|
|
|
|
|
|||
26
Hecla Quebec Inc.
Reconciliation of Assets and Liabilities of Discontinued Operations to Balance Sheet
(Dollars are in Thousands)
|
|
December 31, 2025 |
|
|
ASSETS |
|
|
|
|
Accounts receivable |
|
$ |
|
|
Inventories: |
|
|
|
|
Product inventories |
|
|
|
|
Materials and supplies |
|
|
|
|
Prepaid expenses |
|
|
|
|
Total current assets |
|
|
|
|
Property, plants, equipment and mine development, net |
|
|
|
|
Other non-current assets |
|
|
|
|
Total assets |
|
$ |
|
|
LIABILITIES |
|
|
|
|
Current liabilities: |
|
|
|
|
Accounts payable and accrued liabilities |
|
$ |
|
|
Accrued payroll and related benefits |
|
|
|
|
Accrued taxes |
|
|
|
|
Finance leases |
|
|
|
|
Total current liabilities |
|
|
|
|
Accrued reclamation and closure costs |
|
|
|
|
Deferred tax liabilities |
|
|
|
|
Other non-current liabilities |
|
|
|
|
Total liabilities |
|
$ |
|
|
Forward-Looking Statements
Certain statements contained in this Form 10-Q, including in Management’s Discussion and Analysis of Financial Condition and Results of Operations and Quantitative and Qualitative Disclosures About Market Risk, are intended to be covered by the safe harbor provided for under Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Our forward-looking statements include our current expectations and projections about future results, performance, results of litigation, prospects and opportunities, including reserves and other mineralization. We have tried to identify these forward-looking statements by using words such as “may,” “will,” “expect,” “anticipate,” “believe,” “intend,” “feel,” “plan,” “estimate,” “project,” “forecast”, and similar expressions. These forward-looking statements are based on information currently available to us and are expressed in good faith and believed to have a reasonable basis. However, our forward-looking statements are subject to a number of risks, uncertainties, and other factors that could cause our actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements.
These risks, uncertainties and other factors include, but are not limited to, those set forth under Part II, Item 1A. - Risk Factors of this report and Part I, Item 1A. – Risk Factors in our 2025 Form 10-K. Given these risks and uncertainties, readers are cautioned not to place undue reliance on our forward-looking statements. All subsequent written and oral forward-looking statements attributable to Hecla Mining Company or to persons acting on our behalf are expressly qualified in their entirety by these cautionary statements. Except as required by federal securities laws, we do not intend to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
27
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
In this Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”), “Hecla,” “the Company,” “we,” “us”, and “our” refer to Hecla Mining Company and its consolidated subsidiaries, except where the context requires otherwise. You should read this discussion in conjunction with our consolidated financial statements and the related MD&A contained in our annual report for the year ended December 31, 2025, which were revised to conform with current year financial statement changes as described in Exhibit 99.1 to the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission (the “SEC”) on August 28, 2026, including Note 2U. Reclassifications and Note 3. Sale of Hecla Quebec, Inc. and Discontinued Operations, reflecting reclassifications in the Consolidated Statements of Operations and Comprehensive Income (Loss) presentation, the elimination of Casa Berardi as a segment and classification of Casa Berardi as a discontinued operation. The results of operations reported and summarized below are not necessarily indicative of future operating results (refer to “Forward-Looking Statements” above for further discussion). References to “Notes” are Notes included in our Notes to Condensed Consolidated Financial Statements (Unaudited). Throughout this MD&A, all references to income or losses per share are on a diluted basis.
Overview
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:
Recent Developments
On March 25, 2026, we completed the sale of our Hecla Quebec Inc. ("Hecla Quebec") subsidiary which owns the Casa Berardi mine to Orezone Gold Corporation ("Orezone") for a fair value of $385.7 million ($601.7 million on an undiscounted basis) comprised of the following:
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 excess closure amount ($11.5 million) has been included in determining the fair value of the Deferred Cash Consideration.
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.
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 ended 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
28
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.
Third Quarter 2026 Highlights
Operational Achievements:
Financial Performance:
Year to date 2026 Highlights
Operational Achievements:
Financial Performance:
Growth Pipeline
We are evaluating several organic growth opportunities that may leverage existing infrastructure, operational expertise, and permitting frameworks.
Greens Creek is advancing engineering and evaluation of a pyrite concentrate circuit which has the potential to recover additional silver and gold that currently report to tailings. If the project is approved, intermittent production using temporary equipment could occur from late 2027 through 2028, with construction of the new circuit expected to be completed in late 2028. Thereafter, preliminary metallurgical and engineering work indicate the project could, at average reserve grades, add approximately 1.0 to 1.2 million ounces of silver and 10,000 to 15,000 ounces of gold in annual production, once fully ramped up.
We are also evaluating the potential to reprocess all or part of the existing dry-stack tailings facility at Greens Creek. Advances in processing technology and growing market demand for this type of material have created the potential to turn material once managed only as tailings into a marketable low-grade feedstock. 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. In the fourth quarter, we expect to load a test parcel from Greens Creek of approximately 5,500 dry metric tonnes of this low-grade feedstock for shipment and sale to a third-party smelter.
Lastly, we continue to evaluate the potential restart of our 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.
29
Each of these opportunities remains in varying stages of exploration, 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 final construction or development of any of these projects (other than the test parcel described above), and any decision to proceed would require further technical, economic, and regulatory review and approval by management and, where applicable, our Board of Directors. 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 anticipated at the time of any such approval. See the Risk Factor "The growth opportunities described in this report are subject to significant risks and uncertainties" under Item 1A. "Risk Factors" in Part II of this report.
External Factors that Impact our Results
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. As a result of tariffs, the China market is effectively closed for us, and we have not shipped any products to China since March 2025. 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 per Silver Ounce After By-product Credits (“Cash Cost”) (non-GAAP) and All-In Sustaining Cost per Silver Ounce After By-product Credits (“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.
Consolidated Results of Continuing Operations
Total sales for the three and nine months ended September 30, 2026 and 2025 were as follows:
|
|
Three Months Ended |
|
Nine Months Ended |
||||
(in thousands) |
|
2026 |
|
2025 |
|
2026 |
|
2025 |
Silver |
|
$257,697 |
|
$189,775 |
|
$767,058 |
|
$430,227 |
Gold |
|
54,368 |
|
50,748 |
|
154,550 |
|
120,979 |
Lead |
|
23,991 |
|
24,379 |
|
70,652 |
|
67,961 |
Zinc |
|
33,892 |
|
37,422 |
|
108,235 |
|
101,685 |
Copper |
|
680 |
|
880 |
|
1,100 |
|
2,250 |
Less: Smelter and refining charges |
|
1,826 |
|
(3,397) |
|
662 |
|
(12,653) |
Total metal sales |
|
372,454 |
|
299,807 |
|
1,102,257 |
|
710,449 |
Environmental remediation services |
|
22,366 |
|
16,191 |
|
37,847 |
|
29,875 |
Total sales |
|
$394,820 |
|
$315,998 |
|
$1,140,104 |
|
$740,324 |
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.
Total metal sales for the three and nine months ended September 30, 2026 and 2025, and the approximate variances attributed to differences in metals prices, sales volumes, and smelter terms, were as follows:
30
(in thousands) |
|
Silver |
|
|
Gold |
|
|
Base metals |
|
|
Less: smelter and refining charges |
|
|
Total sales of products |
|
|||||
Three months ended September 30, 2025 |
|
$ |
189,775 |
|
|
$ |
50,748 |
|
|
$ |
62,681 |
|
|
$ |
(3,397 |
) |
|
$ |
299,807 |
|
Variances - 2026 versus 2025: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Price |
|
|
85,593 |
|
|
|
8,406 |
|
|
|
(798 |
) |
|
|
— |
|
|
|
93,201 |
|
Volume |
|
|
(17,671 |
) |
|
|
(4,786 |
) |
|
|
(3,320 |
) |
|
|
— |
|
|
|
(25,777 |
) |
Smelter terms |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5,223 |
|
|
|
5,223 |
|
Three months ended September 30, 2026 |
|
$ |
257,697 |
|
|
$ |
54,368 |
|
|
$ |
58,563 |
|
|
$ |
1,826 |
|
|
$ |
372,454 |
|
(in thousands) |
|
Silver |
|
|
Gold |
|
|
Base metals |
|
|
Less: smelter and refining charges |
|
|
Total sales of products |
|
|||||
Nine months ended September 30, 2025 |
|
$ |
430,227 |
|
|
$ |
120,979 |
|
|
$ |
171,896 |
|
|
$ |
(12,653 |
) |
|
$ |
710,449 |
|
Variances - 2026 versus 2025: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Price |
|
|
356,928 |
|
|
|
39,715 |
|
|
|
11,163 |
|
|
|
— |
|
|
|
407,806 |
|
Volume |
|
|
(20,097 |
) |
|
|
(6,144 |
) |
|
|
(3,072 |
) |
|
|
— |
|
|
|
(29,313 |
) |
Smelter terms |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
13,315 |
|
|
|
13,315 |
|
Nine months ended September 30, 2026 |
|
$ |
767,058 |
|
|
$ |
154,550 |
|
|
$ |
179,987 |
|
|
$ |
662 |
|
|
$ |
1,102,257 |
|
The fluctuation in sales for the three and nine months ended September 30, 2026 compared to the same periods in 2025 was primarily due to the following:
|
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
||||||||||
|
|
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
||||
Silver – |
|
London PM Fix ($/ounce) |
|
$ |
62.73 |
|
|
$ |
39.38 |
|
|
$ |
73.52 |
|
|
$ |
34.97 |
|
|
|
Realized price per ounce |
|
$ |
63.62 |
|
|
$ |
42.58 |
|
|
$ |
69.81 |
|
|
$ |
37.45 |
|
Gold – |
|
London PM Fix ($/ounce) |
|
$ |
4,270 |
|
|
$ |
3,456 |
|
|
$ |
4,554 |
|
|
$ |
3,199 |
|
|
|
Realized price per ounce |
|
$ |
4,279 |
|
|
$ |
3,535 |
|
|
$ |
4,604 |
|
|
$ |
3,307 |
|
Lead – |
|
LME Final Cash Buyer ($/pound) |
|
$ |
0.84 |
|
|
$ |
0.89 |
|
|
$ |
0.87 |
|
|
$ |
0.89 |
|
|
|
Realized price per pound |
|
$ |
0.91 |
|
|
$ |
0.93 |
|
|
$ |
0.95 |
|
|
$ |
0.92 |
|
Zinc – |
|
LME Final Cash Buyer ($/pound) |
|
$ |
1.74 |
|
|
$ |
1.28 |
|
|
$ |
1.59 |
|
|
$ |
1.25 |
|
|
|
Realized price per pound |
|
$ |
1.48 |
|
|
$ |
1.48 |
|
|
$ |
1.50 |
|
|
$ |
1.37 |
|
Copper – |
|
LME Final Cash Buyer ($/pound) |
|
$ |
6.40 |
|
|
$ |
4.45 |
|
|
$ |
6.09 |
|
|
$ |
4.34 |
|
|
|
Realized price per pound |
|
$ |
6.53 |
|
|
$ |
4.47 |
|
|
$ |
6.19 |
|
|
$ |
4.50 |
|
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 $7.1 million and $13.3 million for the three and nine months ended September 30, 2026, respectively, (three and nine months ended September 30, 2025: $10.9 million and $22.0 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.
31
|
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
||||||||||
|
|
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
||||
Silver - |
|
Ounces produced |
|
|
4,170,826 |
|
|
|
4,583,355 |
|
|
|
12,282,802 |
|
|
|
13,205,164 |
|
|
|
Payable ounces sold |
|
|
4,094,203 |
|
|
|
4,457,094 |
|
|
|
10,988,127 |
|
|
|
11,487,556 |
|
Gold - |
|
Ounces produced |
|
|
11,996 |
|
|
|
15,584 |
|
|
|
39,081 |
|
|
|
47,093 |
|
|
|
Payable ounces sold |
|
|
12,706 |
|
|
|
14,277 |
|
|
|
34,390 |
|
|
|
36,389 |
|
Lead - |
|
Tons produced |
|
|
13,826 |
|
|
|
14,757 |
|
|
|
42,211 |
|
|
|
43,414 |
|
|
|
Payable tons sold |
|
|
13,229 |
|
|
|
13,096 |
|
|
|
37,157 |
|
|
|
36,749 |
|
Zinc - |
|
Tons produced |
|
|
16,145 |
|
|
|
17,309 |
|
|
|
49,963 |
|
|
|
52,723 |
|
|
|
Payable tons sold |
|
|
11,463 |
|
|
|
12,637 |
|
|
|
36,083 |
|
|
|
37,151 |
|
Copper |
|
Tons produced |
|
|
414 |
|
|
|
491 |
|
|
|
1,279 |
|
|
|
1,401 |
|
|
|
Payable tons sold |
|
|
52 |
|
|
|
98 |
|
|
|
89 |
|
|
|
250 |
|
The difference between what we report as “ounces/tons produced” and “payable ounces/tons sold” is attributable to the difference between the quantities of metals contained in the concentrates we produce versus the portion of those metals actually paid for by our customers according to the terms of our sales contracts. Differences can also arise from inventory changes incidental to shipping schedules, or variances in ore grades which impact the amount of metals contained in concentrates produced and sold.
Sales, costs applicable to sales, depreciation, depletion and amortization, and gross profit at our operating segments, Cash Cost (non-GAAP) and AISC (non-GAAP) at our operating segments and Cash Cost (non-GAAP) and AISC (non-GAAP) for our Greens Creek and Lucky Friday operating segments, in each case for the three and nine months ended September 30, 2026 and 2025 were as follows (in thousands, except for Cash Cost and AISC):
|
|
Greens Creek |
|
|
Lucky Friday |
|
|
Keno Hill |
|
|
Total Silver (3) |
|
|
Other (4) |
|
|
Total Silver and Other |
|
||||||
Three Months Ended September 30, 2026 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Sales |
|
$ |
222,216 |
|
|
$ |
100,066 |
|
|
$ |
50,172 |
|
|
$ |
372,454 |
|
|
$ |
22,366 |
|
|
$ |
394,820 |
|
Costs applicable to sales (1) |
|
|
(76,167 |
) |
|
|
(34,225 |
) |
|
|
(25,402 |
) |
|
|
(135,794 |
) |
|
|
(22,403 |
) |
|
$ |
(158,197 |
) |
Depreciation, depletion and amortization |
|
|
(15,621 |
) |
|
|
(14,985 |
) |
|
|
(5,943 |
) |
|
|
(36,549 |
) |
|
$ |
— |
|
|
$ |
(36,549 |
) |
Gross profit (loss) |
|
$ |
130,428 |
|
|
$ |
50,856 |
|
|
$ |
18,827 |
|
|
$ |
200,111 |
|
|
$ |
(37 |
) |
|
$ |
200,074 |
|
Cash Cost (2) per silver ounce |
|
$ |
(10.11 |
) |
|
$ |
7.31 |
|
|
$ |
— |
|
|
$ |
(3.20 |
) |
|
$ |
— |
|
|
$ |
(3.20 |
) |
AISC (2) per silver ounce |
|
$ |
(3.25 |
) |
|
$ |
27.68 |
|
|
$ |
— |
|
|
$ |
14.34 |
|
|
$ |
— |
|
|
$ |
14.34 |
|
Three Months Ended September 30, 2025 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Sales |
|
$ |
178,064 |
|
|
$ |
74,192 |
|
|
$ |
47,551 |
|
|
$ |
299,807 |
|
|
$ |
16,191 |
|
|
$ |
315,998 |
|
Costs applicable to sales(1) |
|
|
(65,429 |
) |
|
|
(31,170 |
) |
|
|
(23,143 |
) |
|
|
(119,742 |
) |
|
|
(16,183 |
) |
|
|
(135,925 |
) |
Depreciation, depletion and amortization |
|
|
(16,229 |
) |
|
|
(13,471 |
) |
|
|
(8,028 |
) |
|
|
(37,728 |
) |
|
|
— |
|
|
|
(37,728 |
) |
Gross profit |
|
$ |
96,406 |
|
|
$ |
29,551 |
|
|
$ |
16,380 |
|
|
$ |
142,337 |
|
|
$ |
8 |
|
|
$ |
142,345 |
|
Cash Cost (2) per silver ounce |
|
$ |
(8.50 |
) |
|
$ |
9.33 |
|
|
$ |
— |
|
|
$ |
(2.03 |
) |
|
$ |
— |
|
|
$ |
(2.03 |
) |
AISC (2) per silver ounce |
|
$ |
(2.55 |
) |
|
$ |
23.30 |
|
|
$ |
— |
|
|
$ |
11.01 |
|
|
$ |
— |
|
|
$ |
11.01 |
|
32
|
|
Greens Creek |
|
|
Lucky Friday |
|
|
Keno Hill |
|
|
Total Silver (3) |
|
|
Other (4) |
|
|
Total Silver and Other |
|
||||||
Nine Months Ended September 30, 2026 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Sales |
|
$ |
638,548 |
|
|
$ |
332,643 |
|
|
$ |
131,066 |
|
|
$ |
1,102,257 |
|
|
$ |
37,847 |
|
|
$ |
1,140,104 |
|
Costs applicable to sales (1) |
|
|
(192,453 |
) |
|
|
(104,368 |
) |
|
|
(65,461 |
) |
|
|
(362,282 |
) |
|
|
(37,608 |
) |
|
|
(399,890 |
) |
Depreciation, depletion and amortization |
|
|
(45,918 |
) |
|
|
(45,545 |
) |
|
|
(15,626 |
) |
|
|
(107,089 |
) |
|
|
— |
|
|
|
(107,089 |
) |
Gross profit |
|
$ |
400,177 |
|
|
$ |
182,730 |
|
|
$ |
49,979 |
|
|
$ |
632,886 |
|
|
$ |
239 |
|
|
$ |
633,125 |
|
Cash Cost (2) per silver ounce |
|
$ |
(13.09 |
) |
|
$ |
7.50 |
|
|
$ |
— |
|
|
$ |
(4.94 |
) |
|
$ |
— |
|
|
$ |
(4.94 |
) |
AISC (2) per silver ounce |
|
$ |
(7.55 |
) |
|
$ |
22.47 |
|
|
$ |
— |
|
|
$ |
9.37 |
|
|
$ |
— |
|
|
$ |
9.37 |
|
Nine Months Ended September 30, 2025 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Sales |
|
$ |
418,209 |
|
|
$ |
201,659 |
|
|
$ |
90,581 |
|
|
$ |
710,449 |
|
|
$ |
29,875 |
|
|
|
740,324 |
|
Costs applicable to sales (1) |
|
|
(167,502 |
) |
|
|
(90,805 |
) |
|
|
(56,952 |
) |
|
|
(315,259 |
) |
|
|
(29,903 |
) |
|
|
(345,162 |
) |
Depreciation, depletion and amortization |
|
|
(42,715 |
) |
|
|
(40,171 |
) |
|
|
(15,971 |
) |
|
|
(98,857 |
) |
|
|
— |
|
|
|
(98,857 |
) |
Gross profit (loss) |
|
$ |
207,992 |
|
|
$ |
70,683 |
|
|
$ |
17,658 |
|
|
$ |
296,333 |
|
|
$ |
(28 |
) |
|
$ |
296,305 |
|
Cash Cost (2) per silver ounce |
|
$ |
(8.41 |
) |
|
$ |
8.29 |
|
|
$ |
— |
|
|
$ |
(2.20 |
) |
|
$ |
— |
|
|
$ |
(2.20 |
) |
AISC (2) per silver ounce |
|
$ |
(3.82 |
) |
|
$ |
20.81 |
|
|
$ |
— |
|
|
$ |
9.26 |
|
|
$ |
— |
|
|
$ |
9.26 |
|
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:
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.
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 and AISC. We currently do not report Cash Cost and AISC 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 all of the following criteria:
33
Determination of when these criteria have been met requires the use of judgment, and our definition of commercial production may differ from that of other mining companies. Currently Keno Hill meets two of the above criteria - silver recoveries are at expected steady-state production levels, and a significant portion of available funding allocated to Keno Hill is directed to operating activities.
As Keno Hill has not yet been determined to be in commercial production, its costs and by-product credits are excluded from our consolidated Cash Cost and AISC because (i) by definition it has not reached the sustaining stage and (ii) including its costs and by-product credits we believe would distort consolidated Cash Cost and AISC of our operating silver mines that are in commercial production and operating as designed, and would not facilitate a meaningful comparison of our performance versus that of our peers who do not report such metrics for mines that are not in commercial production.
For the three months ended September 30, 2026 we reported income from continuing operations of $149.6 million (2025: $89.4 million) and net income applicable to common stockholders of $149.5 million (2025: $100.6 million). The following were the significant drivers of the increase in income from continuing operations:
The positive movements mentioned above were partly offset by:
For the nine months ended September 30, 2026 we reported income from continuing operations of $432.1 million (2025: $148.0 million) and net income applicable to common stockholders of $248.1 million (2025: $186.9 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:
The positive movements mentioned above were partly offset by:
34
Greens Creek
Dollars are in thousands (except per ounce and per ton amounts) |
|
Three Months Ended |
|
|
Nine Months Ended |
|
||||||||||
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
||||
Sales |
|
$ |
222,216 |
|
|
$ |
178,064 |
|
|
$ |
638,548 |
|
|
$ |
418,209 |
|
Costs applicable to sales (1) |
|
|
(76,167 |
) |
|
|
(65,429 |
) |
|
|
(192,453 |
) |
|
|
(167,502 |
) |
Depreciation, depletion and amortization |
|
|
(15,621 |
) |
|
|
(16,229 |
) |
|
|
(45,918 |
) |
|
|
(42,715 |
) |
Gross profit |
|
$ |
130,428 |
|
|
$ |
96,406 |
|
|
$ |
400,177 |
|
|
$ |
207,992 |
|
Tons of ore milled |
|
|
207,638 |
|
|
|
227,587 |
|
|
|
633,993 |
|
|
|
670,707 |
|
Production: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Silver (ounces) |
|
|
1,935,193 |
|
|
|
2,347,674 |
|
|
|
6,163,357 |
|
|
|
6,773,212 |
|
Gold (ounces) |
|
|
11,996 |
|
|
|
15,584 |
|
|
|
39,081 |
|
|
|
47,093 |
|
Lead (tons) |
|
|
4,292 |
|
|
|
4,751 |
|
|
|
13,442 |
|
|
|
14,178 |
|
Zinc (tons) |
|
|
11,376 |
|
|
|
12,747 |
|
|
|
36,479 |
|
|
|
39,606 |
|
Copper (tons) |
|
|
414 |
|
|
|
491 |
|
|
|
1,279 |
|
|
|
1,401 |
|
Payable metal quantities sold: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Silver (ounces) |
|
|
2,161,907 |
|
|
|
2,238,283 |
|
|
|
5,520,318 |
|
|
|
5,574,680 |
|
Gold (ounces) |
|
|
12,706 |
|
|
|
14,277 |
|
|
|
34,390 |
|
|
|
36,389 |
|
Lead (tons) |
|
|
4,375 |
|
|
|
3,839 |
|
|
|
10,486 |
|
|
|
10,022 |
|
Zinc (tons) |
|
|
8,383 |
|
|
|
10,114 |
|
|
|
27,358 |
|
|
|
28,660 |
|
Copper (tons) |
|
|
52 |
|
|
|
98 |
|
|
|
89 |
|
|
|
250 |
|
Ore grades: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Silver ounces per ton |
|
|
11.7 |
|
|
|
13.1 |
|
|
|
12.2 |
|
|
|
12.8 |
|
Gold ounces per ton |
|
|
0.080 |
|
|
|
0.092 |
|
|
|
0.084 |
|
|
|
0.094 |
|
Lead percent |
|
|
2.5 |
% |
|
|
2.5 |
% |
|
|
2.5 |
% |
|
|
2.6 |
% |
Zinc percent |
|
|
6.2 |
% |
|
|
6.3 |
% |
|
|
6.5 |
% |
|
|
6.6 |
% |
Copper percent |
|
|
0.3 |
% |
|
|
0.3 |
% |
|
|
0.3 |
% |
|
|
0.3 |
% |
Total production cost per ton |
|
$ |
278.16 |
|
|
$ |
246.93 |
|
|
$ |
268.42 |
|
|
$ |
237.44 |
|
Cash Cost per Silver Ounce (2) |
|
$ |
(10.11 |
) |
|
$ |
(8.50 |
) |
|
$ |
(13.09 |
) |
|
$ |
(8.41 |
) |
AISC per Silver Ounce (2) |
|
$ |
(3.25 |
) |
|
$ |
(2.55 |
) |
|
$ |
(7.55 |
) |
|
$ |
(3.82 |
) |
Capital investments |
|
$ |
11,746 |
|
|
$ |
12,179 |
|
|
$ |
29,929 |
|
|
$ |
31,335 |
|
The $34.0 million increase in gross profit for the three months ended September 30, 2026, compared to the same period in 2025 was primarily due to higher realized sales prices for all metals, except lead and zinc, partly offset by lower sales volumes, reflecting lower grades and tons milled, except lead and copper.
Capital investments in the current quarter were $0.4 million lower compared to the same period in 2025. Current quarter investments included $3.4 million for a tailings expansion project, $2.7 million for mining equipment and development, $2.0 million for a cleaner cell replacement and other mill items, $1.6 million for definition drilling and $0.9 million for surface infrastructure and equipment.
The $192.2 million increase in gross profit for the nine months ended September 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 for all metals, except lead.
Capital investments in the current year were $1.4 million lower compared to the same period in 2025. Current year investments included $7.0 million for a tailings expansion project, $6.2 million for primary ore access development, $4.9 million for mining equipment and development, $4.8 million for surface infrastructure and equipment, $3.8 million for definition drilling and $1.2 million for a cleaner cell replacement.
35
The charts below illustrate the factors contributing to Cash Cost per Silver Ounce for Greens Creek:
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
||||||||||
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
||||
Cash Cost, Before By-product Credits, per Silver Ounce |
|
$ |
30.43 |
|
|
$ |
25.20 |
|
|
$ |
28.46 |
|
|
$ |
25.17 |
|
By-product credits |
|
|
(40.54 |
) |
|
|
(33.70 |
) |
|
|
(41.55 |
) |
|
|
(33.58 |
) |
Cash Cost per Silver Ounce |
|
$ |
(10.11 |
) |
|
$ |
(8.50 |
) |
|
$ |
(13.09 |
) |
|
$ |
(8.41 |
) |
36
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
||||||||||
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
||||
AISC, Before By-product Credits, per Silver Ounce |
|
$ |
37.29 |
|
|
$ |
31.15 |
|
|
$ |
34.00 |
|
|
$ |
29.76 |
|
By-product credits |
|
|
(40.54 |
) |
|
|
(33.70 |
) |
|
|
(41.55 |
) |
|
|
(33.58 |
) |
AISC per Silver Ounce |
|
$ |
(3.25 |
) |
|
$ |
(2.55 |
) |
|
$ |
(7.55 |
) |
|
$ |
(3.82 |
) |
For the three and nine months ended September 30, 2026, the increase in Cash Cost, Before By-product Credits, per Silver Ounce and AISC, Before By-product Credits, per Silver Ounce compared to the same period in 2025 was primarily due to lower silver production, in addition to higher production costs. By-product credits increased for both the three and nine month periods ended September 30, 2026, compared to the same periods in the prior years due to higher gold by-product credits, resulting in lower Cash Cost per Silver Ounce and AISC per Silver Ounce compared to the comparative periods from 2025.
Lucky Friday
Dollars are in thousands (except per ounce and per ton amounts) |
|
Three Months Ended |
|
Nine Months Ended |
||||
|
|
2026 |
|
2025 |
|
2026 |
|
2025 |
Sales |
|
$100,066 |
|
$74,192 |
|
$332,643 |
|
$201,659 |
Costs applicable to sales (1) |
|
(34,225) |
|
(31,170) |
|
(104,368) |
|
(90,805) |
Depreciation, depletion and amortization |
|
(14,985) |
|
(13,471) |
|
(45,545) |
|
(40,171) |
Gross profit |
|
$50,856 |
|
$29,551 |
|
$182,730 |
|
$70,683 |
Tons of ore milled |
|
100,545 |
|
105,329 |
|
311,131 |
|
328,549 |
Production: |
|
|
|
|
|
|
|
|
Silver (ounces) |
|
1,272,585 |
|
1,337,353 |
|
4,042,442 |
|
4,010,482 |
Lead (tons) |
|
8,499 |
|
8,894 |
|
26,716 |
|
26,203 |
Zinc (tons) |
|
4,048 |
|
3,716 |
|
11,764 |
|
11,308 |
Payable metal quantities sold: |
|
|
|
|
|
|
|
|
Silver (ounces) |
|
1,191,854 |
|
1,235,686 |
|
3,780,612 |
|
3,733,024 |
Lead (tons) |
|
7,971 |
|
8,182 |
|
24,988 |
|
24,187 |
Zinc (tons) |
|
3,080 |
|
2,523 |
|
8,725 |
|
8,491 |
Ore grades: |
|
|
|
|
|
|
|
|
Silver ounces per ton |
|
13.2 |
|
13.4 |
|
13.6 |
|
12.9 |
Lead percent |
|
8.9% |
|
9.0% |
|
9.0% |
|
8.5% |
Zinc percent |
|
4.9% |
|
4.1% |
|
4.5% |
|
4.1% |
Total production cost per ton |
|
$315.96 |
|
$289.84 |
|
$315.51 |
|
$262.70 |
Cash Cost per Silver Ounce (2) |
|
$7.31 |
|
$9.33 |
|
$7.50 |
|
$8.29 |
AISC per Silver Ounce (2) |
|
$27.68 |
|
$23.30 |
|
$22.47 |
|
$20.81 |
Capital investments |
|
$23,655 |
|
$16,865 |
|
$57,354 |
|
$48,253 |
Gross profit increased by $21.3 million for the three months ended September 30, 2026 compared to the comparable period in 2025, reflecting higher realized silver prices, partly offset by lower sales volumes, except for zinc.
Capital investments increased by $6.8 million for the three months ended September 30, 2026, compared to the same period in 2025. Significant capital investments during the three months ended September 30, 2026, included $8.3 million on tailings facility pond 5 construction, capital development of $6.6 million, $2.0 million for the surface cooling project, $1.3 million for the national portal project, $1.0 million for a shaft rehabilitation, $0.9 million for a cone crusher replacement, $0.9 million for ramp work, and $0.8 million for definition drilling.
Gross profit increased by $112.0 million for the nine months ended September 30, 2026 compared to the comparable period in 2025, reflecting higher realized prices for all metals and higher sales volumes for all metals reflecting higher production from improved grades.
37
Capital investments increased by $9.1 million for the nine months ended September 30, 2026, compared to the same period in 2025. Significant capital investments during the nine months ended September 30, 2026, included capital development of $20.1 million, $15.6 million on tailings facility pond 5 construction, $4.5 million for the surface cooling project, $5.1 million for a shaft rehabilitation and related work, $3.8 million for underground equipment, $3.5 million on a cone crusher replacement and other mill items, $2.4 million for definition drilling, and $2.0 million for ramp work.
The charts below illustrate the factors contributing to Cash Cost per Silver Ounce for Lucky Friday:
38
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
||||||||||
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
||||
Cash Cost, Before By-product Credits, per Silver Ounce |
|
$ |
26.15 |
|
|
$ |
25.73 |
|
|
$ |
25.32 |
|
|
$ |
24.44 |
|
By-product credits |
|
|
(18.84 |
) |
|
|
(16.40 |
) |
|
|
(17.82 |
) |
|
|
(16.15 |
) |
Cash Cost per Silver Ounce |
|
$ |
7.31 |
|
|
$ |
9.33 |
|
|
$ |
7.50 |
|
|
$ |
8.29 |
|
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
||||||||||
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
||||
AISC, Before By-product Credits, per Silver Ounce |
|
$ |
46.52 |
|
|
$ |
39.70 |
|
|
$ |
40.29 |
|
|
$ |
36.96 |
|
By-product credits |
|
|
(18.84 |
) |
|
|
(16.40 |
) |
|
|
(17.82 |
) |
|
|
(16.15 |
) |
AISC per Silver Ounce |
|
$ |
27.68 |
|
|
$ |
23.30 |
|
|
$ |
22.47 |
|
|
$ |
20.81 |
|
For the three months ended September 30, 2026, Cash Cost per Silver Ounce was lower than the same period in 2025 primarily due to higher by-product credits and lower treatment costs, partly offset by higher profit sharing. AISC per Silver Ounce are higher than the comparable period from 2025 due to higher sustaining capital investments.
For the nine months ended September 30, 2026, Cash Cost per Silver Ounce was lower than the same period in 2025 due to higher by-product credits and lower treatment costs, partly offset by higher as-produced costs, primarily related to higher profit sharing. AISC per Silver Ounce were higher than the same period in 2025 primarily due to higher sustaining capital investments.
Keno Hill
Dollars are in thousands (except per ounce and per ton amounts) |
|
Three Months Ended |
|
|
Nine Months Ended |
|
||||||||||
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
||||
Sales |
|
$ |
50,172 |
|
|
$ |
47,551 |
|
|
$ |
131,066 |
|
|
$ |
90,581 |
|
Costs applicable to sales (1) |
|
|
(25,402 |
) |
|
|
(23,143 |
) |
|
|
(65,461 |
) |
|
|
(56,952 |
) |
Depreciation, depletion and amortization |
|
|
(5,943 |
) |
|
|
(8,028 |
) |
|
|
(15,626 |
) |
|
|
(15,971 |
) |
Gross profit |
|
$ |
18,827 |
|
|
$ |
16,380 |
|
|
$ |
49,979 |
|
|
$ |
17,658 |
|
Tons of ore milled |
|
|
38,163 |
|
|
|
29,740 |
|
|
|
95,941 |
|
|
|
83,922 |
|
Production: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Silver (ounces) |
|
|
963,048 |
|
|
|
898,328 |
|
|
|
2,077,003 |
|
|
|
2,421,470 |
|
Lead (tons) |
|
|
1,035 |
|
|
|
1,111 |
|
|
|
2,053 |
|
|
|
3,032 |
|
Zinc (tons) |
|
|
721 |
|
|
|
847 |
|
|
|
1,720 |
|
|
|
1,810 |
|
Payable metal quantities sold: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Silver (ounces) |
|
|
740,442 |
|
|
|
983,125 |
|
|
|
1,687,197 |
|
|
|
2,179,852 |
|
Lead (tons) |
|
|
883 |
|
|
|
1,074 |
|
|
|
1,683 |
|
|
|
2,540 |
|
Zinc (tons) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Ore grades: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Silver ounces per ton |
|
|
26.2 |
|
|
|
31.8 |
|
|
|
22.4 |
|
|
|
30.0 |
|
Lead percent |
|
|
3.1 |
% |
|
|
4.0 |
% |
|
|
2.3 |
% |
|
|
3.8 |
% |
Zinc percent |
|
|
2.3 |
% |
|
|
3.6 |
% |
|
|
2.2 |
% |
|
|
2.6 |
% |
Capital investments |
|
$ |
11,205 |
|
|
$ |
14,747 |
|
|
$ |
33,466 |
|
|
$ |
42,228 |
|
We have not disclosed cost per ounce statistics for the Keno Hill operation as it has not met our definition of commercial production. See above "Consolidated Results of Continuing Operations" for our definition of commercial production. Determination of when those criteria have been met requires the use of judgment, and our definition of commercial production may differ from that of other mining companies.
We acquired our Keno Hill operation as part of the Alexco Resource Corp. acquisition in September 2022 and since then we have focused on development activities and began ramping up the mill during the second quarter of 2023. The mine is currently permitted to a maximum annual average of 440 tons per day, with average mill throughput during the three months ended September 30, 2026 of 415 tons per day (2025: 323 tons per day), with silver grades milled of 26.2 ounces per ton (2025: 31.8 ounces per ton). In September 2026, the mill averaged 437 tons per day, approximately 99% of the mine's permitted rate. While this demonstrated Keno Hill's value
39
generation at target throughputs, the tailings storage, waste rock disposal, and water treatment capacity available under our current permits will not support that rate until those permits are amended and the related infrastructure is built. As discussed further below under “Strategic Focus and Path to 440 Tons Per Day,” we expect to suppress throughput beginning in the fourth quarter of 2026, with a further reduction beginning in January 2027, and we expect to hold throughput at the lower rate until those permits are amended and the related infrastructure is built.
During the three months ended September 30, 2026, Keno Hill recorded sales of $50.2 million (2025: $47.6 million), with the increase due to higher realized prices, partly offset by lower metals sales volumes resulting from lower grades. As a result of higher revenues, Keno Hill generated gross profit of $18.8 million during the three months ended September 30, 2026 (2025: $16.4 million). During the quarter, Keno Hill incurred capital investments of $11.2 million, primarily related to $5.0 million for mine development and infrastructure, $3.9 million for dry-stack tailings facility, $1.3 million for mobile equipment, and $0.7 million for definition drilling.
During the nine months ended September 30, 2026, Keno Hill recorded sales of $131.1 million (2025: $90.6 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 $50.0 million during the nine months ended September 30, 2026 (2025: $17.7 million). During the nine months ended September 30, 2026, Keno Hill incurred capital investments of $33.5 million, primarily related to $20.9 million for mine development and infrastructure, $5.4 million for phase 2 of the dry-stack tailings facility, $4.6 million for mobile equipment, and $1.8 million for definition drilling.
Prior Period Disruptions and Ongoing Impacts
From the second quarter of 2023 (commencement of production) until late August 2024, ore production and mill throughput generally increased as planned, although they remained below the mill’s permitted rate. Beginning in mid‑2024 and continuing into 2025, Keno Hill was impacted by external events that affected permitting, projects, production, and delayed our ability to achieve sustained, profitable production.
In late June 2024, an unrelated third party, Victoria Gold, experienced a heap leach failure at its Eagle Mine located near Keno Hill. The Yukon Government (“YG”) and the First Nation of Na‑Cho Nyäk Dun (“FNNND”) focused on responding to the incident rather than on routine permitting matters. As a result, we were required to suspend milling operations at Keno Hill between August 27 and October 26, 2024 while awaiting authorizations and permits.
Between October 2024 and the first quarter of 2025, Keno Hill experienced power curtailments after Yukon Energy ("YE" the local utility) suffered a turbine failure at its Aishihik hydroelectric plant in Whitehorse. That failure, combined with YE's transmission line maintenance and increased power demand due to cold winter temperatures, resulted in reduced power deliveries to Keno Hill and prevented us from fully powering the mine and mill on multiple occasions. These power constraints reduced silver production by approximately 130,000 ounces and resulted in approximately $0.5 million of labor costs for idled employees through September 30, 2025. Power conditions improved following the first quarter of 2025 and we do not expect additional curtailments due to the Aishihik turbine, which was successfully repaired in the third quarter of 2025. However, we have experienced power curtailments and may do so again, particularly since we are in the cold weather season. See the Risk Factors "Production at Keno Hill will decline beginning in the fourth quarter of 2026 and could be further curtailed or suspended until permit amendments are obtained and related infrastructure is built." under Part II, Item 1A. - Risk Factors of this report and "We may be subject to a number of unanticipated risks related to inadequate infrastructure." in our 2025 Form 10-K.
Current Operational Challenges
Keno Hill continues to face operational challenges that constrain throughput and limit our ability to ramp up production. These challenges include: Flame and Moth infrastructure (power availability); workforce availability and retention in a remote location; execution of infrastructure projects; limited camp capacity; and incremental demands on site infrastructure and resources associated with the ramp‑up of our subsidiary’s environmental remediation services activities at the Keno Hill site.
In addition, deliveries of certain equipment, including haul trucks, a bolter, a scissor deck, and a generator, were delayed during the first quarter. These delays affected capital development activities and, in the future, if delays occur and are not resolved on a timely basis, they could adversely impact mining flexibility and future ore availability.
40
Permitting and Infrastructure Constraints
Maintaining recent production levels and any future increases in production requires additional capacity across several operational areas, including tailings storage, waste rock disposal, water treatment and discharge limits, camp accommodation, and reliable power supply. Expanding these capacities requires obtaining new permits or amending existing permits, as well as capital investments to develop the associated infrastructure.
Although progress continues on these permitting matters, the pace of advancement has been affected by delays resulting from the Eagle Mine incident and heightened regulatory focus on the Yukon mining sector.
Tailings Storage
We estimate that approximately 200,000 tons of tailings storage capacity remains available under our current permits; additional capacity beyond that, through the next phase of the dry-stack tailings facility (Phase 3), will require permit amendments and related construction. How long the remaining capacity lasts will depend on the rate at which we mill ore and on the tailings generated per ton milled, which varies with ore grades, the characteristics of the ore processed, and the density at which tailings are placed. At milling rates for the nine months ended September 30, 2026, we project that we would exhaust that capacity in the second quarter of 2028, before Phase 3 is expected to be permitted and constructed. In an effort to maintain operational continuity and to extend the remaining capacity until Phase 3 is in place, we plan to suppress throughput as described below under “Strategic Focus and Path to 440 Tons Per Day.” Even at the reduced rate, however, we expect to exhaust our tailings storage capacity unless Phase 3 is permitted and constructed during the 2029 construction season. If it is not, milling could be further curtailed or interrupted. The construction season in the Yukon is approximately April through October, and if permits are received by the first half of 2029, it is possible that tailings expansion could be advanced far enough in 2029 to permit the mill to resume normal production levels, and begin ramping up to higher production levels by the end of 2029.
Quartz Mining License and Water License Amendments
Keno Hill's mill is currently permitted to process up to 440 tons per day (and it has achieved that rate for multiple weeks); however, several factors other than mill capacity limit actual throughput, including dry-stack tailings capacity and restrictions on waste rock production and disposal. To sustain operations at or near this permitted rate, we will need to amend our quartz mining license (“QML”) and water license (“WL”) to address these constraints. The process for securing these amendments includes submission of a Project Proposal to the Yukon Environmental and Socio‑economic Assessment Board (“YESAB”), which we currently intend to submit by year-end 2026.
The YG is required to consult with the FNNND on permitting matters, including the YESAB review process. FNNND previously entered into a Comprehensive Cooperation and Benefits Agreement ("CBA") for Keno Hill, and we believe they remain supportive of the project. However, there can be no assurance that such support will continue or that the timing or outcome of the YESAB review will not be affected by FNNND’s position. In addition, FNNND has indicated interest in revisiting the existing 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.
The YESAB review process is expected to take approximately 12 months following submission of the Project Proposal, after which applications for amendments to the QML and WL would be submitted to the applicable regulators. We currently estimate that this overall process could be completed by approximately mid‑2029, although each sequential step in this process is subject to its own timing variability, and delays at any stage would affect the overall timeline. There can be no assurance, however, that any of these approvals or amendments will be obtained on this timeline or at all. Construction of the subject projects would commence after receiving the permits and is anticipated to take at least a full construction season.
Waste Rock and Water Management Constraints
Our current QML places limits on the cumulative amount of waste rock that may be produced during mining and on waste rock storage capacity and classification. At current mining rates, we project that the waste rock production limit could be reached by approximately mid‑2027, at which point waste rock production would need to be halted absent receipt of a QML amendment. The planned suppression in throughput described below under “Strategic Focus and Path to 440 Tons Per Day” is intended to keep waste rock production and storage within our existing QML limits until the amended QML is received, which we currently expect by approximately mid‑2029.
41
Our QML also limits capacity in our waste rock disposal areas. If suppressing production is not effective in preserving waste rock disposal capacity, or if neither the QML amendment nor the separate changes to our QML that we are seeking (independent of the QML amendment process described above) is received in 2029, we expect to exhaust our waste rock storage capacity, even at the reduced rate, and mine production could be further curtailed or stop until the amended permits are received and related construction is completed. At Bermingham, we have reached our authorized capacity for the current facility and we are temporarily storing waste rock in stockpiles until approvals to expand the waste rock disposal area can be obtained. In the event the YG restricts our ability to temporarily stockpile waste rock, our ability to further develop Bermingham would be limited (or halted), which could negatively impact production at Keno Hill. There is no assurance such approvals will be received, or that the YG will not impose restrictions, which could force us to further curtail or halt production if alternative arrangements cannot be found.
As we develop new mining zones at Keno Hill, we have periodically encountered higher‑than‑expected groundwater inflows. While we currently remain within permitted water discharge limits, development of new zones could require an amendment to our WL. There can be no assurance that the YG would grant such an amendment. If we are unable to amend our WL on a timely basis and continued development would result in discharges exceeding permitted limits, we may be required to curtail production or adjust mine sequencing to remain in compliance.
See the Risk Factor in our 2025 Form 10‑K, “We are required to obtain governmental permits and other approvals in order to conduct mining operations.”
Strategic Focus and Path to 440 Tons Per Day
As stated above, Keno Hill has generated profits at current throughput rates and metal prices. Our near‑term strategic focus is to advance permitting and execute key infrastructure projects to place the mine on a path toward achieving sustainable production at its currently permitted rate of 440 tons per day. At that rate and at current prices, we expect Keno Hill would generate sustained positive free cash flow while preserving optionality for potential expansion beyond 440 tons per day. As discussed above, to sustain operations at or near this permitted rate, we will need to amend our QML and WL to expand our tailings, waste rock and water treatment capacity. Sustained production at this level would require ore from both the Bermingham deposit and the lower‑grade Flame & Moth deposit, and, as discussed above, completion of infrastructure projects, receipt of required permit amendments, continued mine development, and maintenance of social license to operate.
We expect to begin suppressing throughput in the fourth quarter of 2026 to approximately 300 tons per day, with further suppression, expected beginning in January 2027 to levels significantly below third quarter 2026 throughput. We expect to provide 2027 production guidance for Keno Hill in February 2027. Available capacity for water treatment, tailings storage, and waste rock disposal under our current permits will not support our current levels of production until our QML and WL are amended and the related projects constructed. We are suppressing throughput to preserve that capacity so that operations can continue until then; this is not a cost-driven decision. We are currently targeting license amendments to be finalized by mid-2029, after which, once the related infrastructure is constructed, we would expect to ramp back up toward throughput of 440 tons per day. Permitting timelines depend on regulatory review outside our control and could be extended. If those permits or the related infrastructure projects are delayed beyond our current schedule, throughput could be constrained further or interrupted entirely until the necessary tailings and waste rock storage capacity is in place.
We expect silver production to decline by proportionally less than throughput because, during this period, we expect to be more selective in both mining and processing. In the mine, we will attempt to reduce dilution and prioritize higher-grade areas of the deposit. In the mill, we expect to preferentially process higher-grade material and stockpile lower-grade material for later processing. Actual production will depend on the grades, dilution, and recoveries we achieve.
If the prerequisites to continue mining through both (i) the mid-2027 to mid-2029 (or later) period and (ii) mid-2029 (or later) and thereafter, including receipt of QML and WL amendments, are not met on a timely basis, our operations and financial results could be materially adversely affected. Already, we expect 2027-2029 to be a period of lower revenue and higher costs due to the decreased production described above. Even if amended permits are received on a timely basis, there will be a period of time required to construct the associated infrastructure. Given that the overall permitting process involves multiple sequential regulatory steps, each subject to its own timing variability, and risks inherent to construction in Yukon once permits are received, mining rates and continuous operation at Keno Hill between approximately 2027 and 2030 remains uncertain. It is likely that there will be times of curtailed production, beyond the suppression described above, if not outright halts to production during that period.
If any one of the prerequisites described above is not achieved on a timely basis, or if metal prices decrease materially from current levels, Keno Hill could be placed on care and maintenance. See the Risk Factor in Part II, Item 1A. of this report, “Production
42
at Keno Hill will decline beginning in the fourth quarter of 2026 and could be further curtailed or suspended until permit amendments are obtained and related infrastructure is built,” and the Risk Factor in our 2025 Form 10‑K, “We may not realize all of the anticipated benefits from our acquisitions, including our 2022 acquisition of Alexco.”
Corporate Matters
Income Taxes
For the three months ended September 30, 2026, the Company recorded an income and mining tax provision of $40.5 million (2025: $31.0 million), resulting in an effective tax rate of 21.3% (2025: 25.8%). For the nine months ended September 30, 2026, the Company recorded an income and mining tax provision of $110.2 million (2025: $61.4 million) resulting in an effective tax rate of 20.3% (2025: 29.3%). The comparability of our income and mining tax provision and effective tax rate for the reported periods was impacted by multiple factors, primarily: (i) mining taxes; (ii) variations in our income before income taxes; (iii) geographic distribution of that income; (iv) foreign exchange rates including non-recognition of foreign exchange gains and losses; (v) percentage depletion; (vi) the non-recognition of tax assets, and (vii) the change in tax status of our Klondex ULC subsidiary. The effective tax rate will fluctuate, sometimes significantly, period to period. The change in the effective tax rate during the three and nine months ended September 30, 2026, compared to the comparable period in 2025 is primarily related to variations in our income before taxes and the relative effect on the tax provision.
Each reporting period we assess our deferred tax balances based on a review of long-range forecasts and quarterly activity. A valuation allowance is provided for deferred tax assets for which it is more likely than not the related tax benefits will not be realized. We analyze our deferred tax assets and, if it is determined that we will not realize all or a portion of our deferred tax assets, we record or increase a valuation allowance. Conversely, if it is determined we will ultimately more likely than not be able to realize all or a portion of the related benefits for which a valuation allowance has been provided, all or a portion of the related valuation allowance will be reduced. There are a number of factors that impact our ability to realize our deferred tax assets. Valuation allowances are provided on deferred tax assets in certain Canadian jurisdictions. For additional information, please see risk factors Our accounting and other estimates may be imprecise and Our ability to recognize the benefits of deferred tax assets related to net operating loss carryforwards and other items is dependent on future cash flows generating taxable income in Item 1A -Risk Factors in our 2025 Form 10-K.
Reconciliation of Costs Applicable to Sales to Cash Cost, Before By-product Credits (non-GAAP) and Cash Cost (non-GAAP) and All-In Sustaining Cost, Before By-product Credits (non-GAAP) and All-In Sustaining Cost (non-GAAP)
The tables below present reconciliations between the most comparable GAAP measure of costs applicable to sales to the non-GAAP measures of (i) Cash Cost, Before By-product Credits, (ii) Cash Cost, (iii) AISC, Before By-product Credits and (iv) AISC for our segments and for the consolidated Company for the three and nine months ended September 30, 2026 and 2025.
Cash Cost and AISC are measures developed by precious metals companies (including the Silver Institute and the World Gold Council) in an effort to provide a uniform standard for comparison purposes. There can be no assurance, however, that these non-GAAP measures as we report them are the same as those reported by other mining companies.
Cash Cost is an important operating statistic that we utilize to measure each mine's operating performance. We use AISC as a measure of our mines net cash flow after costs for reclamation and sustaining capital. This is similar to Cash Cost but also includes reclamation and sustaining capital costs. Current GAAP measures used in the mining industry, such as cost of goods sold, do not capture all the expenditures incurred to discover, develop, and sustain silver and gold production. Cash Cost and AISC also allow us to benchmark the performance of each of our mines versus those of our competitors. As a silver and gold mining company, we also use these statistics on an aggregate basis -aggregating the Greens Creek and Lucky Friday mines to compare our performance with that of other silver mining companies. Similarly, these statistics are useful in identifying acquisition and investment opportunities as they provide a common tool for measuring the financial performance of other mines with varying geologic, metallurgical, and operating characteristics.
We have not disclosed cost per ounce statistics for the Keno Hill operation as it has not met our definition of commercial production. See above “Consolidated Results of Continuing Operations” for our definition of commercial production and its applicability to Keno Hill. Determination of when those criteria have been met requires the use of judgment, and our definition of commercial production may differ from that of other mining companies.
Cash Cost, Before By-product Credits and AISC, Before By-product Credits each include all direct and indirect operating cash costs related directly to the physical activities of producing metals, including mining, processing and other plant costs, third-party refining expense, on-site general and administrative costs, royalties and mining production taxes. AISC, Before By-product Credits for each mine also includes reclamation and sustaining capital costs. AISC, Before By-product Credits for our consolidated silver properties
43
also includes corporate costs for general and administrative expense, and sustaining capital costs. By-product credits include revenues earned from all metals other than the primary metal produced at each unit. As depicted in the tables below, by-product credits comprise an essential element of our silver unit cost structure, distinguishing our silver operations due to the polymetallic nature of their orebodies.
In addition to the uses described above, Cash Cost and AISC provide management and investors an indication of operating cash flow, after consideration of the average price received from production. We also use these measurements for the comparative monitoring of performance of our mining operations period-to-period from a cash flow perspective.
In thousands (except per ounce amounts) |
|
Three Months Ended September 30, 2026 |
|
|||||||||||||||||||||
|
|
Greens Creek |
|
|
Lucky Friday |
|
|
Keno Hill (4) |
|
|
Corporate (2) |
|
|
Other (3) |
|
|
Total Silver and Other |
|
||||||
Costs applicable to sales (5) |
|
$ |
76,167 |
|
|
$ |
34,225 |
|
|
$ |
25,402 |
|
|
$ |
— |
|
|
$ |
22,403 |
|
|
$ |
158,197 |
|
Treatment costs |
|
|
(2,156 |
) |
|
|
(77 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2,233 |
) |
Change in product inventory |
|
|
(12,561 |
) |
|
|
(624 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(13,185 |
) |
Reclamation and other costs |
|
|
(2,560 |
) |
|
|
(251 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2,811 |
) |
Exclusion of Keno Hill cash costs (4) |
|
|
— |
|
|
|
— |
|
|
|
(25,402 |
) |
|
|
— |
|
|
|
— |
|
|
|
(25,402 |
) |
Exclusion of Other costs (3) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(22,403 |
) |
|
|
(22,403 |
) |
Cash Cost, Before By-product Credits (1) |
|
|
58,890 |
|
|
|
33,273 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
92,163 |
|
Reclamation and other costs |
|
|
934 |
|
|
|
225 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,159 |
|
Sustaining capital |
|
|
12,335 |
|
|
|
25,705 |
|
|
|
— |
|
|
|
1,475 |
|
|
|
— |
|
|
|
39,515 |
|
General and administrative |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
15,582 |
|
|
|
— |
|
|
|
15,582 |
|
AISC, Before By-product Credits (1) |
|
|
72,159 |
|
|
|
59,203 |
|
|
|
— |
|
|
|
17,057 |
|
|
|
— |
|
|
|
148,419 |
|
By-product credits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Zinc |
|
|
(27,048 |
) |
|
|
(10,477 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(37,525 |
) |
Gold |
|
|
(45,222 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(45,222 |
) |
Lead |
|
|
(5,737 |
) |
|
|
(13,495 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(19,232 |
) |
Copper |
|
|
(442 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(442 |
) |
Total By-product credits |
|
|
(78,449 |
) |
|
|
(23,972 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(102,421 |
) |
Cash Cost |
|
$ |
(19,559 |
) |
|
$ |
9,301 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(10,258 |
) |
AISC |
|
$ |
(6,290 |
) |
|
$ |
35,231 |
|
|
$ |
— |
|
|
$ |
17,057 |
|
|
$ |
— |
|
|
$ |
45,998 |
|
Divided by silver ounces produced |
|
|
1,935 |
|
|
|
1,273 |
|
|
|
|
|
|
|
|
|
|
|
|
3,208 |
|
|||
Cash Cost, Before By-product Credits, per Silver Ounce |
|
$ |
30.43 |
|
|
$ |
26.15 |
|
|
|
|
|
|
|
|
|
|
|
$ |
28.73 |
|
|||
By-product credits per silver ounce |
|
|
(40.54 |
) |
|
|
(18.84 |
) |
|
|
|
|
|
|
|
|
|
|
|
(31.93 |
) |
|||
Cash Cost per Silver Ounce |
|
$ |
(10.11 |
) |
|
$ |
7.31 |
|
|
|
|
|
|
|
|
|
|
|
$ |
(3.20 |
) |
|||
AISC, Before By-product Credits, per Silver Ounce |
|
$ |
37.29 |
|
|
$ |
46.52 |
|
|
|
|
|
|
|
|
|
|
|
$ |
46.27 |
|
|||
By-product credits per silver ounce |
|
|
(40.54 |
) |
|
|
(18.84 |
) |
|
|
|
|
|
|
|
|
|
|
|
(31.93 |
) |
|||
AISC per Silver Ounce |
|
$ |
(3.25 |
) |
|
|
27.68 |
|
|
|
|
|
|
|
|
|
|
|
$ |
14.34 |
|
|||
44
In thousands (except per ounce amounts) |
|
Three Months Ended September 30, 2025 |
|
|||||||||||||||||||||
|
|
Greens Creek |
|
|
Lucky Friday |
|
|
Keno Hill (4) |
|
|
Corporate (2) |
|
|
Other (3) |
|
|
Total Silver |
|
||||||
Costs applicable to sales (5) |
|
$ |
65,429 |
|
|
$ |
31,170 |
|
|
$ |
23,143 |
|
|
$ |
— |
|
|
$ |
16,183 |
|
|
$ |
135,925 |
|
Treatment costs |
|
|
(436 |
) |
|
|
2,434 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,998 |
|
Change in product inventory |
|
|
(5,106 |
) |
|
|
946 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(4,160 |
) |
Reclamation and other costs |
|
|
(715 |
) |
|
|
(141 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(856 |
) |
Exclusion of Keno Hill cash costs (4) |
|
|
— |
|
|
|
— |
|
|
|
(23,143 |
) |
|
|
— |
|
|
|
— |
|
|
|
(23,143 |
) |
Exclusion of Other costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(16,183 |
) |
|
|
(16,183 |
) |
Cash Cost, Before By-product Credits (1) |
|
|
59,172 |
|
|
|
34,409 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
93,581 |
|
Reclamation and other costs |
|
|
758 |
|
|
|
195 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
953 |
|
Sustaining capital |
|
|
13,210 |
|
|
|
18,484 |
|
|
|
— |
|
|
|
1,528 |
|
|
|
— |
|
|
|
33,222 |
|
General and administrative |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
13,872 |
|
|
|
— |
|
|
|
13,872 |
|
AISC, Before By-product Credits (1) |
|
|
73,140 |
|
|
|
53,088 |
|
|
|
— |
|
|
|
15,400 |
|
|
|
— |
|
|
|
141,628 |
|
By-product credits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Zinc |
|
|
(22,894 |
) |
|
|
(7,203 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(30,097 |
) |
Gold |
|
|
(48,618 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(48,618 |
) |
Lead |
|
|
(6,670 |
) |
|
|
(14,736 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(21,406 |
) |
Copper |
|
|
(927 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(927 |
) |
Total By-product credits |
|
|
(79,109 |
) |
|
|
(21,939 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(101,048 |
) |
Cash Cost |
|
$ |
(19,937 |
) |
|
$ |
12,470 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(7,467 |
) |
AISC |
|
$ |
(5,969 |
) |
|
$ |
31,149 |
|
|
$ |
— |
|
|
$ |
15,400 |
|
|
$ |
— |
|
|
$ |
40,580 |
|
Divided by silver ounces produced |
|
|
2,348 |
|
|
|
1,337 |
|
|
|
|
|
|
|
|
|
|
|
|
3,685 |
|
|||
Cash Cost, Before By-product Credits, per Silver Ounce |
|
$ |
25.20 |
|
|
$ |
25.73 |
|
|
|
|
|
|
|
|
|
|
|
$ |
25.39 |
|
|||
By-product credits per silver ounce |
|
|
(33.70 |
) |
|
|
(16.40 |
) |
|
|
|
|
|
|
|
|
|
|
|
(27.42 |
) |
|||
Cash Cost per Silver Ounce |
|
$ |
(8.50 |
) |
|
$ |
9.33 |
|
|
|
|
|
|
|
|
|
|
|
$ |
(2.03 |
) |
|||
AISC, Before By-product Credits, per Silver Ounce |
|
$ |
31.15 |
|
|
$ |
39.70 |
|
|
|
|
|
|
|
|
|
|
|
$ |
38.43 |
|
|||
By-product credits per silver ounce |
|
|
(33.70 |
) |
|
|
(16.40 |
) |
|
|
|
|
|
|
|
|
|
|
|
(27.42 |
) |
|||
AISC per Silver Ounce |
|
$ |
(2.55 |
) |
|
$ |
23.30 |
|
|
|
|
|
|
|
|
|
|
|
$ |
11.01 |
|
|||
45
In thousands (except per ounce amounts) |
|
Nine Months Ended September 30, 2026 |
|
|||||||||||||||||||||
|
|
Greens Creek |
|
|
Lucky Friday |
|
|
Keno Hill (4) |
|
|
Corporate (2) |
|
|
Other (3) |
|
|
Total Silver |
|
||||||
Costs applicable to sales (5) |
|
$ |
192,453 |
|
|
$ |
104,368 |
|
|
$ |
65,461 |
|
|
$ |
— |
|
|
$ |
37,608 |
|
|
$ |
399,890 |
|
Treatment costs |
|
|
(4,409 |
) |
|
|
(318 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(4,727 |
) |
Change in product inventory |
|
|
(8,338 |
) |
|
|
(1,042 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(9,380 |
) |
Reclamation and other costs |
|
|
(4,295 |
) |
|
|
(673 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(4,968 |
) |
Exclusion of Keno Hill cash costs (4) |
|
|
— |
|
|
|
— |
|
|
|
(65,461 |
) |
|
|
— |
|
|
|
— |
|
|
|
(65,461 |
) |
Exclusion of Other costs (3) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(37,608 |
) |
|
|
(37,608 |
) |
Cash Cost, Before By-product Credits (1) |
|
|
175,411 |
|
|
|
102,335 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
277,746 |
|
Reclamation and other costs |
|
|
2,801 |
|
|
|
675 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,476 |
|
Sustaining capital |
|
|
31,318 |
|
|
|
59,852 |
|
|
|
— |
|
|
|
4,863 |
|
|
|
— |
|
|
|
96,033 |
|
General and administrative |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
46,508 |
|
|
|
— |
|
|
|
46,508 |
|
AISC, Before By-product Credits (1) |
|
|
209,530 |
|
|
|
162,862 |
|
|
|
— |
|
|
|
51,371 |
|
|
|
— |
|
|
|
423,763 |
|
By-product credits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Zinc |
|
|
(79,086 |
) |
|
|
(28,265 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(107,351 |
) |
Gold |
|
|
(157,371 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(157,371 |
) |
Lead |
|
|
(18,441 |
) |
|
|
(43,764 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(62,205 |
) |
Copper |
|
|
(1,186 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,186 |
) |
Total By-product credits |
|
|
(256,084 |
) |
|
|
(72,029 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(328,113 |
) |
Cash Cost |
|
$ |
(80,673 |
) |
|
$ |
30,306 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(50,367 |
) |
AISC |
|
$ |
(46,554 |
) |
|
$ |
90,833 |
|
|
$ |
— |
|
|
$ |
51,371 |
|
|
$ |
— |
|
|
$ |
95,650 |
|
Divided by silver ounces produced |
|
|
6,163 |
|
|
|
4,042 |
|
|
|
|
|
|
|
|
|
|
|
|
10,206 |
|
|||
Cash Cost, Before By-product Credits, per Silver Ounce |
|
$ |
28.46 |
|
|
$ |
25.32 |
|
|
|
|
|
|
|
|
|
|
|
$ |
27.21 |
|
|||
By-product credits per silver ounce |
|
|
(41.55 |
) |
|
|
(17.82 |
) |
|
|
|
|
|
|
|
|
|
|
|
(32.15 |
) |
|||
Cash Cost per Silver Ounce |
|
$ |
(13.09 |
) |
|
$ |
7.50 |
|
|
|
|
|
|
|
|
|
|
|
$ |
(4.94 |
) |
|||
AISC, Before By-product Credits, per Silver Ounce |
|
$ |
34.00 |
|
|
$ |
40.29 |
|
|
|
|
|
|
|
|
|
|
|
$ |
41.52 |
|
|||
By-product credits per silver ounce |
|
|
(41.55 |
) |
|
|
(17.82 |
) |
|
|
|
|
|
|
|
|
|
|
|
(32.15 |
) |
|||
AISC per Silver Ounce |
|
$ |
(7.55 |
) |
|
$ |
22.47 |
|
|
|
|
|
|
|
|
|
|
|
$ |
9.37 |
|
|||
46
In thousands (except per ounce amounts) |
|
Nine Months Ended September 30, 2025 |
|
|||||||||||||||||||||
|
|
Greens Creek |
|
|
Lucky Friday |
|
|
Keno Hill(4) |
|
|
Corporate (2) |
|
|
Other (3) |
|
|
Total Silver |
|
||||||
Costs applicable to sales (5) |
|
$ |
167,502 |
|
|
$ |
90,805 |
|
|
$ |
56,952 |
|
|
$ |
— |
|
|
$ |
29,903 |
|
|
$ |
345,162 |
|
Treatment costs |
|
|
706 |
|
|
|
7,451 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
8,157 |
|
Change in product inventory |
|
|
3,227 |
|
|
|
332 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,559 |
|
Reclamation and other costs |
|
|
(965 |
) |
|
|
(574 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,539 |
) |
Exclusion of Keno Hill cash costs (4) |
|
|
— |
|
|
|
— |
|
|
|
(56,952 |
) |
|
|
— |
|
|
|
— |
|
|
|
(56,952 |
) |
Exclusion of Other costs (3) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(29,903 |
) |
|
|
(29,903 |
) |
Cash Cost, Before By-product Credits (1) |
|
|
170,470 |
|
|
|
98,014 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
268,484 |
|
Reclamation and other costs |
|
|
2,272 |
|
|
|
585 |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
2,857 |
|
|
Sustaining capital |
|
|
28,846 |
|
|
|
49,623 |
|
|
|
— |
|
|
|
3,823 |
|
|
|
|
|
|
82,292 |
|
|
General and administrative |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
38,411 |
|
|
|
|
|
|
38,411 |
|
|
AISC, Before By-product Credits (1) |
|
|
201,588 |
|
|
|
148,222 |
|
|
|
— |
|
|
|
42,234 |
|
|
|
— |
|
|
|
392,044 |
|
By-product credits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Zinc |
|
|
(69,780 |
) |
|
|
(21,273 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(91,053 |
) |
Gold |
|
|
(135,789 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(135,789 |
) |
Lead |
|
|
(19,371 |
) |
|
|
(43,487 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(62,858 |
) |
Copper |
|
|
(2,527 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2,527 |
) |
Total By-product credits |
|
|
(227,467 |
) |
|
|
(64,760 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(292,227 |
) |
Cash Cost |
|
$ |
(56,997 |
) |
|
$ |
33,254 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(23,743 |
) |
AISC |
|
$ |
(25,879 |
) |
|
$ |
83,462 |
|
|
$ |
— |
|
|
$ |
42,234 |
|
|
$ |
— |
|
|
$ |
99,817 |
|
Divided by silver ounces produced |
|
|
6,773 |
|
|
|
4,010 |
|
|
|
|
|
|
|
|
|
|
|
|
10,783 |
|
|||
Cash Cost, Before By-product Credits, per Silver Ounce |
|
$ |
25.17 |
|
|
$ |
24.44 |
|
|
|
|
|
|
|
|
|
|
|
$ |
24.90 |
|
|||
By-product credits per silver ounce |
|
|
(33.58 |
) |
|
|
(16.15 |
) |
|
|
|
|
|
|
|
|
|
|
|
(27.10 |
) |
|||
Cash Cost per Silver Ounce |
|
$ |
(8.41 |
) |
|
$ |
8.29 |
|
|
|
|
|
|
|
|
|
|
|
$ |
(2.20 |
) |
|||
AISC, Before By-product Credits, per Silver Ounce |
|
$ |
29.76 |
|
|
$ |
36.96 |
|
|
|
|
|
|
|
|
|
|
|
$ |
36.36 |
|
|||
By-product credits per silver ounce |
|
|
(33.58 |
) |
|
|
(16.15 |
) |
|
|
|
|
|
|
|
|
|
|
|
(27.10 |
) |
|||
AISC per Silver Ounce |
|
$ |
(3.82 |
) |
|
$ |
20.81 |
|
|
|
|
|
|
|
|
|
|
|
$ |
9.26 |
|
|||
Financial Liquidity and Capital Resources
We have a disciplined cash management strategy of maintaining financial flexibility to execute our capital priorities and provide long-term value to our stockholders. Consistent with that strategy, we aim to maintain an acceptable level of debt and sufficient liquidity to fund debt service costs, operations, capital expenditures, exploration and pre-development projects, while returning cash to stockholders through dividends and potential share repurchases.
At September 30, 2026, we had $691.6 million in cash and cash equivalents, of which $9.6 million was held in foreign subsidiaries local currency that we anticipate utilizing for near-term operating, exploration or capital costs by those foreign subsidiaries. At September 30, 2026, we had no amount drawn on our New Credit Agreement, a $500 million credit facility plus a $100 million accordion option, with $3.4 million used for letters of credit, leaving $496.6 million available for borrowings. We also have USD cash and cash equivalent balances held by our foreign subsidiaries that, if repatriated, may be subject to withholding taxes. We expect that there would be no additional tax burden upon repatriation after considering the cash cost associated with the withholding taxes. We
47
believe that our liquidity and capital resources from our continuing operations are adequate to fund our operations and corporate activities.
Pursuant to our common stock dividend policy described in Note 12 of Notes to Consolidated Financial Statements in our consolidated financial statements and notes for the year ended December 31, 2025, our Board of Directors declared dividends on our common and preferred stock of $2.7 million (2025: $2.7 million) and paid $2.7 million (2025: $2.7 million) during the three months ended September 30, 2026. During the nine months ended September 30, 2026, we paid dividends on our common and preferred stock of $8.1 million (2025: $7.7 million). Our common stock dividend policy anticipates paying an annual minimum dividend of $0.015 per share. 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.
Pursuant to our stock repurchase program described in Note 12 of Notes to Consolidated Financial Statements in our consolidated financial statements and notes for the year ended December 31, 2025, we are authorized to repurchase up to 20 million shares of our outstanding common stock from time to time in open market or privately negotiated transactions, depending on prevailing market conditions and other factors. The repurchase program may be modified, suspended, or discontinued by us at any time. Whether or not we engage in repurchases from time to time depends on a variety of factors, including not only price and cash resources, but customary black-out restrictions, whether we have any material inside information, limitations on share repurchases or cash usage that may be imposed by our credit agreement or in connection with issuances of securities, alternative uses for cash, applicable law, and other investment opportunities from time to time. As of September 30, 2026 and December 31, 2025, 934,100 shares had been purchased in prior periods at an average price of $3.99 per share, leaving 19.1 million shares that may yet be purchased under the program. We have not repurchased any shares since June 2014.
As discussed in Note 6 of Notes to Condensed Consolidated Financial Statements (Unaudited) pursuant to an equity distribution agreement dated February 18, 2021, as of September 30, 2026, there were 197,988 remaining shares of our common stock that we may offer and sell from time to time in “at-the-market” offerings. Sales of the shares, if any, will be made by means of ordinary brokers transactions or as otherwise agreed between the Company and the agents as principals. Whether or not we engage in sales from time to time may depend on a variety of factors, including share price, our cash resources, customary black-out restrictions, and whether we have any material inside information. The equity distribution agreement can be terminated by us at any time. Any sales of shares under that agreement are registered under the Securities Act of 1933, as amended, pursuant to a shelf registration statement on Form S-3.
As a result of our current cash balances, the expected performance of our operations, current metals prices, proceeds from potential at-the-market sales of common stock, and availability under our Credit Agreement, we believe we will be able to meet our obligations and other potential cash requirements during the next 12 months and beyond. While the formerly held Casa Berardi operation was a significant part of our operations, we don't believe its divestiture will have an impact on our ability to meet future obligations due to projected cash flow generation from our remaining operations, and the redemption of our Senior Notes. Our obligations and other uses of cash may include, but are not limited to: interest payments under our Credit Agreement; care and maintenance costs; capital investments at our operations; potential acquisitions of other mining companies or properties; regulatory matters; litigation; potential repurchases of our common stock under the program described above; and payment of dividends on common stock, if declared by our Board of Directors.
We currently estimate a range of approximately $198 to $214 million will be spent in 2026 on capital investments, primarily for equipment, infrastructure, and development at our mines, before any lease financing. We also estimate exploration and pre-development expenditures will total approximately $55 million in 2026. Our expenditures for these items and our related plans for 2026 may change based upon our financial position, metals prices, and other considerations. Our ability to fund the activities described above will depend on our operating performance, metals prices, our ability to estimate revenues and costs, sources of liquidity available to us, including the revolving credit facility, and other factors. A sustained downturn in metals prices, significant increase in operational or capital costs or other uses of cash, our inability to access the credit facility or the sources of liquidity discussed above, or other factors beyond our control could impact our plans. See the Risk Factor in our 2025 Form 10-K "An extended decline in metals prices, an increase in operating or capital costs, or treatment charges, mine accidents or closures, increasing regulatory obligations, or our inability to convert resources or exploration targets to reserves may cause us to record write-downs, which could negatively impact our results of operations."
Our 2027 budgeting process is ongoing and subject to various internal reviews and ultimately Board of Directors approval. Current expectations are that capital investments, exploration and pre-development and general and administrative expenses will exceed 2026 amounts.
We may defer some capital investment and/or exploration and pre-development activities, engage in asset sales or secure additional capital if necessary to maintain liquidity. We may also pursue additional acquisition opportunities, which could require additional equity issuances or other forms of financing. There can be no assurance that such financing will be available to us.
Our liquid assets include (in millions):
48
|
|
September 30, 2026 |
|
|
December 31, 2025 |
|
||
Cash and cash equivalents held in U.S. dollars |
|
$ |
682.0 |
|
|
$ |
215.1 |
|
Cash and cash equivalents held in foreign currency |
|
|
9.6 |
|
|
|
26.5 |
|
Total cash and cash equivalents |
|
|
691.6 |
|
|
|
241.6 |
|
Marketable equity securities - current and non-current |
|
|
121.2 |
|
|
|
107.5 |
|
Total cash, cash equivalents and investments |
|
$ |
812.8 |
|
|
$ |
349.1 |
|
Cash and cash equivalents increased by $450.0 million in the first nine months of 2026 from cash generated from operations, the proceeds received for disposing of Hecla Quebec, Minera Hecla, and marketable equity securities. Cash held in foreign currencies represents balances in Canadian dollars. The value of our current and non-current marketable equity securities increased by $13.7 million primarily due to consideration received as part of the Hecla Quebec sale, partly offset by disposals.
|
|
Nine months ended |
|
|||||
|
|
September 30, 2026 |
|
|
September 30, 2025 |
|
||
Cash provided by operating activities from continuing operations (in millions) |
|
$ |
560.8 |
|
|
$ |
237.6 |
|
Cash provided by operating activities from continuing operations for the nine months ended September 30, 2026, of $560.8 million represents a $323.2 million increase compared to the $237.6 million of cash provided by operating activities from continuing operations during the same period of 2025. $292.4 million of the variance was attributable to higher income adjusted for non-cash items, reflecting higher net income driven by higher revenues, in addition to a positive $30.8 million working capital and other asset and liability movement.
|
|
Nine months ended |
|
|||||
|
|
September 30, 2026 |
|
|
September 30, 2025 |
|
||
Cash provided by (used in) investing activities of continuing operations (in millions) |
|
$ |
177.9 |
|
|
$ |
(120.5 |
) |
During the nine months ended September 30, 2026, cash provided by investing activities of continuing operations increased by $298.5 million, primarily due to the sales of Hecla Quebec and Minera Hecla for total proceeds of $183.4 million, net of transaction costs paid. In addition, we generated investment proceeds related to our marketable equity securities portfolio (which includes our SERP assets which are held in a Rabbi Trust) of $181.1 million, partly offset by investment purchases of $57.2 million. Capital investments of $130.1 million across our operations were consistent with the same period in 2025.
|
|
Nine months ended |
|
|||||
|
|
September 30, 2026 |
|
|
September 30, 2025 |
|
||
Cash used in financing activities of continuing operations (in millions) |
|
$ |
(282.6 |
) |
|
$ |
(71.9 |
) |
Cash used in financing activities of continuing operations was higher than the same period in 2025 by $210.7 million primarily due to stock issuances under our ATM program in 2025 for net proceeds of $216.2 million. In addition, during the nine months ended September 30, 2026 we paid cash dividends on our common and preferred stock totaling $8.1 million (2025: $7.7 million) and made payments on our finance leases of $5.3 million (2025: $5.3 million).
Cash flows from discontinued operations for the nine months ended September 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 nine months ended September 30, 2025, which reflects a full nine months of activity.
49
Contractual Obligations, Contingent Liabilities and Commitments
The table below presents our fixed, non-cancelable contractual obligations and commitments primarily related to our credit facility, outstanding purchase orders (including certain capital expenditures), and lease arrangements as of September 30, 2026 (in thousands):
|
|
Payments Due By Period |
|
|||||||||||||||||
|
|
Less than 1 year |
|
|
1-3 years |
|
|
4-5 years |
|
|
More than |
|
|
Total |
|
|||||
Purchase obligations (1) |
|
$ |
40,250 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
40,250 |
|
Credit facility(2) |
|
|
993 |
|
|
|
1,986 |
|
|
|
952 |
|
|
|
— |
|
|
|
3,931 |
|
Finance lease commitments (3) |
|
|
4,709 |
|
|
|
4,844 |
|
|
|
3,027 |
|
|
|
— |
|
|
|
12,580 |
|
Operating lease commitments (4) |
|
|
1,509 |
|
|
|
3,013 |
|
|
|
2,164 |
|
|
|
4,767 |
|
|
|
11,453 |
|
Total contractual cash obligations |
|
$ |
47,461 |
|
|
$ |
9,843 |
|
|
$ |
6,143 |
|
|
$ |
4,767 |
|
|
$ |
68,214 |
|
We record liabilities for costs associated with mine closure, reclamation of land and other environmental matters. At September 30, 2026, our liabilities for these matters totaled $130.5 million. Future expenditures related to closure, reclamation and environmental expenditures at our sites are difficult to estimate, although we anticipate we will incur expenditures relating to these obligations over the next 30 years. For additional information relating to our environmental obligations, see Note 11 of Notes to Condensed Consolidated Financial Statements (Unaudited).
Off-Balance Sheet Arrangements
At September 30, 2026, we had no existing off-balance sheet arrangements, as defined under SEC regulations, that have or are reasonably likely to have a current or future effect on our financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to investors.
50
Item 3. Quantitative and Qualitative Disclosures About Market Risk
The following discussion about our exposure to market risks and risk management activities includes forward-looking statements that involve risks and uncertainties, as well as summarizes the financial instruments held by us at September 30, 2026, which are sensitive to changes in commodity prices and foreign exchange rates and are not held for trading purposes. Actual results could differ materially from those projected in the forward-looking statements. In the normal course of business, we also face risks that are either non-financial or non-quantifiable (See Part II, Item 1A. - Risk Factors of this report, and Part I, Item 1A. – Risk Factors of our 2025 Form 10-K).
Metals Prices
Changes in the market prices of silver, gold, lead, zinc, and copper can significantly affect our profitability and cash flow. Metals prices can and often do fluctuate widely and are affected by numerous factors beyond our control (see Item 1A – Risk Factors – A substantial or extended decline in metals prices would have a material adverse effect on us in our 2025 Form 10-K). We utilize collars and financially-settled forward and put option contracts to manage our exposure to changes in prices for silver, gold, zinc, and lead.
Provisional Sales
Sales of all metals products sold directly to customers, including by-product metals, are recorded as revenues when all performance obligations have been completed and the transaction price can be determined or reasonably estimated. For concentrate sales, revenues are generally recorded at the time of shipment at forward prices for the estimated month of settlement. Due to the time elapsed between shipment to the customer and the final settlement with the customer, we must estimate the prices at which sales of our metals will be settled. Previously recorded sales are adjusted to estimated settlement metals prices until final settlement by the customer. Changes in metals prices between shipment and final settlement will result in changes to revenues previously recorded upon shipment. Metals prices can and often do fluctuate widely and are affected by numerous factors beyond our control (see Item 1A – Risk Factors – A substantial or extended decline in metals prices would have a material adverse effect on us in our 2025 Form 10-K). At September 30, 2026, hedged metals contained in concentrate sales and exposed to future price changes totaled 0.9 million ounces of silver, 120 ounces of gold, 10,375 tons of zinc, and 2,950 tons of lead. If the price for each metal were to change by 10%, the change in the total value of the hedged concentrates sold would be approximately $9.5 million. As discussed in Note 8 of Notes to Condensed Consolidated Financial Statements (Unaudited), we utilize a program designed and intended to mitigate the risk of negative price adjustments with limited financially-settled forward contracts for our silver, gold, zinc, and lead sales.
Commodity-Price Risk Management
See Note 8 of Notes to Condensed Consolidated Financial Statements (Unaudited) for a description of our metals prices risk management program.
Foreign Currency Risk Management
We operate and have mining interests in Canada, which exposes us to risks associated with fluctuations in the exchange rates between the USD and the CAD. We determined the functional currency for our Canadian operations is the USD. As such, foreign exchange gains and losses associated with the re-measurement of monetary assets and liabilities from CAD to USD are recorded to earnings each period. For the three and nine months ended September 30, 2026, we recognized a net foreign exchange loss of $0.7 million (2025: $0.4 million gain) and $4.6 million (2025: $3.7 million). Foreign currency exchange rates are influenced by a number of factors beyond our control. A 10% change in the exchange rate between the USD and CAD from the rate at September 30, 2026 would have resulted in a change of approximately $1.7 million in our net foreign exchange gain or loss. We do not hedge the remeasurement of monetary assets and liabilities. We do hedge some of our operating and capital costs denominated in CAD as economic hedges.
See Note 8 of Notes to Condensed Consolidated Financial Statements (Unaudited) for a description of our foreign currency risk management program.
51
Item 4. Controls and Procedures
An evaluation was performed under the supervision and with the participation of our management, including the Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”), of the effectiveness of the design and operation of our disclosure controls and procedures as required by Securities Exchange Act Rules 13a-15(e) and 15d-15(e) as of the end of the period covered by this report. Based on that evaluation, our CEO and CFO concluded that our disclosure controls and procedures, including controls and procedures designed to ensure that information required to be disclosed by us is accumulated and communicated to our management (including our CEO and CFO), were effective as of September 30, 2026, in assuring them in a timely manner that material information required to be disclosed in this report has been properly recorded, processed, summarized and reported.
Changes in Internal Control Over Financial Reporting
During the fiscal quarter ended September 30, 2026, we continued a multi-year phased implementation of a new global Enterprise Resource Planning (“ERP”) system. This implementation is intended to modernize, standardize, and streamline our business operational functionality and transactional financial systems.
As the phased rollout progresses, we are updating and modifying our internal control over financial reporting, as necessary, to accommodate modifications to our business processes, accounting systems, and related application controls. We have applied, and will continue to apply, pre- and post-implementation review procedures to support effective internal control over financial reporting throughout the transition.
Except for the ongoing implementation of the new ERP system described above, there were no changes in our internal control over financial reporting during the quarter ended September 30, 2026 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
Internal control systems, no matter how well designed and operated, have inherent limitations. Therefore, even a system which is determined to be effective cannot provide absolute assurance that all control issues have been detected or prevented. Our systems of internal controls are designed to provide reasonable assurance with respect to financial statement preparation and presentation.
52
Part II - Other Information
Hecla Mining Company and Subsidiaries
Item 1. Legal Proceedings
For information concerning legal proceedings, refer to Note 11 of Notes to Condensed Consolidated Financial Statements (Unaudited), which is incorporated by reference into this Item 1.
Item 1A. Risk Factors
Item 1A. – Risk Factors of our 2025 Form 10-K set forth information relating to important risks and uncertainties that could materially adversely affect our business, financial condition, or operating results. Except as set forth below, there have been no material changes to those risk factors. The risk factors below, which include a new risk factor relating to Keno Hill, should be read in conjunction with those risk factors.
The growth opportunities described in this report are subject to significant risks and uncertainties.
The growth opportunities discussed elsewhere in this report, including the Greens Creek pyrite concentrate circuit, the Greens Creek tailings reprocessing project, and the potential restart of our Midas mill (collectively, the “Growth Projects”), are in early stages of technical and economic evaluation and are subject to the following risks:
In addition, the Growth Projects are subject to the risks described in Part I, Item 1A of our 2025 Form 10-K, including, without limitation, the following risks:
Any decision to proceed with development of these projects would require further technical, economic, and regulatory review and approval by management and, where applicable, our Board of Directors. There is no assurance that any of these projects will be developed, or that if developed, will be profitable or completed on the timeline, at the cost, or with the results currently projected.
Production at Keno Hill will decline beginning in the fourth quarter of 2026 and could be further curtailed or suspended until permit amendments are obtained and related infrastructure is built.
Keno Hill’s mill has recently operated near its permitted maximum annual average of 440 tons per day, but our current quartz mining license and water license do not provide the tailings storage, waste rock and water treatment capacity needed to sustain that rate. As a result, milled tons are expected to decline in the fourth quarter of 2026 to approximately 300 tons per day, and are expected
53
to decline further beginning in January 2027 to levels significantly below third quarter 2026 throughput. We expect throughput to remain at reduced levels until amended licenses are obtained, which we currently estimate could occur by approximately mid-2029 following review by the Yukon Environmental and Socio-economic Assessment Board of a project proposal we intend to submit by year-end 2026, and until the related infrastructure is constructed. We expect this period to be one of lower revenue and higher costs at Keno Hill. Even at the reduced rate, our capacity to manage tailings, waste rock and production water may be even further constrained and may be exhausted if the next phase of our dry-stack tailings facility is not permitted and constructed during the 2029 construction season or if the license amendments are not received in 2029. The review and licensing process involves multiple sequential steps outside our control, including the Yukon Government’s consultation with the First Nation of Na-Cho Nyäk Dun (“FNNND”), which has indicated an interest in revisiting our Comprehensive Cooperation and Benefits Agreement, including its unresolved wealth-sharing provisions; any resolution of those provisions is likely to require ongoing payments to the FNNND. Delays at any step, restrictions on temporary waste rock stockpiling, or reduced power supply from Yukon Energy could require further curtailment or a halt to production. If permits or infrastructure are delayed, or if silver prices decline materially, we could place Keno Hill on care and maintenance and could be required to record an impairment of its long-lived assets, which could be material. See also the risk factors in Part I, Item 1A of our 2025 Form 10-K, “We are required to obtain governmental permits and other approvals in order to conduct mining operations,” “Certain of our mines and exploration properties are located on land that is or may become subject to, competing title claims and/or claims of cultural significance,” and “We may not realize all of the anticipated benefits from our acquisitions, including our 2022 acquisition of Alexco.”
Item 4. Mine Safety Disclosures
The information concerning mine safety violations or other regulatory matters required by Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Item 104 of Regulation S-K is included in exhibit 95 to this Quarterly Report.
Item 5. Other Information
During the three months ended September 30, 2026, no director or officer of the Company
54
Item 6. Exhibits
Hecla Mining Company and Wholly Owned Subsidiaries
Form 10-Q – September 30, 2026
Index to Exhibits
Exhibit Number |
|
Description |
10.1 |
|
Credit Agreement dated as of September 16, 2026, by and among Hecla Mining Company, Hecla Limited, Hecla Alaska LLC, Hecla Greens Creek Mining Company, Hecla Juneau Mining Company, the guarantors party thereto, Bank of America, N.A., as administrative agent, and the lenders party thereto. Filed as exhibit 10.1 to Registrant’s Current Report on Form 8-K on September 18, 2026 (File No. 1-8491) and incorporated herein by reference. |
31.1* |
|
Certification of Principal Executive Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
31.2* |
|
Certification of Principal Financial Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
32.1* |
|
Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
32.2* |
|
Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
95* |
|
Mine safety information listed in Section 1503 of the Dodd-Frank Act. |
101.INS |
|
Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File as its XBRL tags are embedded within the Inline XBRL document. ** |
101.SCH |
|
Inline XBRL Taxonomy Extension Schema with Embedded Linkbase Documents ** |
104 |
|
Cover page formatted as Inline XBRL and contained in Exhibit 101 ** |
* Filed herewith
** XBRL information is furnished and not filed or a part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, is deemed not filed for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended, and otherwise is not subject to liability under these sections.
Items 2 and 3 of Part II are not applicable and are omitted from this report.
55
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
|
|
HECLA MINING COMPANY |
|
|
|
(Registrant) |
|
|
|
|
|
Date: |
November 3, 2026 |
By: |
/s/ Rob Krcmarov |
|
|
|
Rob Krcmarov, President and Chief Executive Officer, |
|
|
|
Director |
|
|
|
|
Date: |
November 3, 2026 |
By: |
/s/ Russell D. Lawlar |
|
|
|
Russell D. Lawlar, Senior Vice President, |
|
|
|
Chief Financial Officer |
56