Silver pivot and new growth pipeline bets
- Casa Berardi was sold on March 25, 2026, making Hecla a cleaner silver miner.
- Keno Hill permits needed for the full ramp are expected sometime around mid-2029.
- Management detailed the Greens Creek pyrite circuit, estimating $40 to $60 million in capital to add silver production.
- Greens Creek remains the primary cash engine for the company.
- The balance sheet is stronger, but the new growth projects face early execution risks.
Clean silver story, new project bets
Hecla sold Casa Berardi, cut down debt, and made the company much more focused on silver in the United States and Canada. That focus matters because silver prices have been high, and the core mines are throwing off cash.
The main problem is Keno Hill. This mine was supposed to be the next growth step, but management now says key permits may not arrive until mid-2029. Until then, investors should expect a more steady rate, or even a slower rate if short-term relief does not come. The company did recently receive a permit to expand the tailings storage facility, which is a positive step for the long-term plan.
To fix the growth gap, management introduced three new internal projects. These include a pyrite circuit and tailings reprocessing at Greens Creek, plus a potential Midas mill restart. The pyrite circuit is targeted to cost between $40 million and $60 million, potentially starting production by late 2027. These projects are in very early stages of study. If they stumble, Hecla is mostly a cash-flowing operation heavily dependent on silver prices and its two mature mines.
Ore in, metal out
Hecla mines ore, processes it, and sells concentrates and doré to third-party smelters and refiners. Its main product is silver. It also sells gold, lead, and zinc that come out of the same ore.
Those extra metals are important. Hecla treats gold, lead, and zinc as by-product credits. Their value lowers the reported cost of each silver ounce. Because silver now makes up the vast majority of sales, the company is directly tied to silver prices.
The model breaks when permits, mine grades, labor, power, or metal prices move the wrong way. The new internal growth pipeline adds risk because the projects have not passed final economic or technical reviews.
What Hecla sells
Silver
Silver is the main product at Greens Creek, Lucky Friday, and Keno Hill. It drives the story and most of the metal sales.
Gold
Gold mainly comes from Greens Creek after the Casa Berardi sale. It helps lower silver costs through by-product credits.
Lead
Lead is sold from the silver mines as part of concentrate shipments. It is smaller than silver, but it helps lower cash costs.
Zinc
Zinc is another by-product from the core mines. Higher zinc prices make reported silver costs look better.
Three mines do the work
Mix is based on Q1 2026 sales from continuing operations in Hecla's Form 10-Q. Greens Creek and Lucky Friday made up about 88% of total Q1 sales, keeping the company concentrated in two mature assets.
What can break
New growth project execution
High impact · Medium oddsHecla is betting on new internal projects like the Greens Creek pyrite circuit to replace Keno Hill growth. These are in early stages of technical and economic review. If capital costs run higher than the estimated $40 million to $60 million or metallurgy fails, the growth story stalls again.
Keno Hill permit clock
High impact · High oddsKeno Hill needs amended permits to remove long-term limits on waste rock and tailings. Management expects to submit a project proposal by year-end 2026, with amended permits possible around mid-2029. Any delay pushes the project further out.
Keno Hill capacity squeeze
High impact · Medium oddsWhile the company received a permit to expand the tailings storage facility, broader waste rock limits remain tight. Without short-term regulatory relief, production could slow or stop entirely before long-term permits arrive.
Silver and gold price reversal
High impact · Medium oddsRecent results were helped by much higher realized prices for silver and gold. If prices fall, by-product credits shrink and cash flow can drop quickly.
In one breath
Is Hecla mainly a silver company now?
Yes. After selling Casa Berardi in early 2026, Hecla is focused on silver assets in North America. It still sells gold, lead, and zinc as by-products.
What is the main issue at Keno Hill?
Keno Hill needs permit changes for waste rock and tailings. Management expects key amended permits around mid-2029, so the mine may stay at a steady or slower rate until then.
What are the new growth projects?
Management recently outlined plans to study a pyrite concentrate circuit and tailings reprocessing at Greens Creek, along with a potential Midas mill restart. These could add production by late 2027 or 2028.
