Hecla Mining Company (HL) Investor Day 2026 summary

Strategic transformation and capital allocation

• A fundamental transformation under new leadership emphasizes disciplined capital allocation, operational excellence, and sustainable growth, with a 12% minimum ROIC threshold and monthly tracking.

• The board approved a $55 million exploration budget for 2026, nearly double the previous year and representing 4.5% of projected revenue, reflecting confidence in the portfolio's discovery potential.

• The sale of the Casa Berardi gold asset for nearly $600 million enables a sharper focus on silver, redirecting capital and management attention to core strengths.

• Capital allocation follows a clear framework: sustain current assets, invest in high-return growth and exploration, strengthen the balance sheet, and return capital to shareholders.

• Disciplined M&A strategy targets only synergistic, accretive Tier 1 assets that meet strict return criteria.

Operational and financial performance

• Achieved $310 million in free cash flow in 2025, with all four operations free cash flow positive and gross leverage reduced to 0.4x, positioning for complete deleveraging.

• 2026 guidance targets 15.1–16.5 million ounces of silver and 134–146 thousand ounces of gold, with AISC for silver at $15.00–$16.25 per ounce.

• Sector-leading share price performance in 2025, with a 292% return, nearly double the silver sector ETF.

• At $50 silver, projected free cash flow is nearly $350 million, with potential to exceed $1 billion in cash by year-end 2026 depending on prices and performance.

• The company’s balance sheet is now an enabler, not a constraint, with plans to fully redeem bonds and maintain gross debt below 1x EBITDA.

Silver market positioning and growth strategy

• Maintains a primary silver focus, with nearly 50% of revenues from silver and a commitment to increase this share, contrasting with peers shifting toward gold.

• Largest silver producer in the U.S. and Canada, operating exclusively in these low-risk jurisdictions and benefiting from critical mineral designations.

• Exploration investment is at peer-competitive levels, targeting 100% reserve replacement and mine life extensions, with a focus on organic growth in Nevada and Keno Hill.

• The Midas project in Nevada, with existing infrastructure and permits, is positioned for a potential restart within five years, supporting a hub-and-spoke model for regional growth.

• The company’s average reserve life is 14 years, double that of peers, supporting long-term sustainability and innovation.