Hecla Mining Wipes Out $263 Million in Debt After Pivoting Away from Gold

Hecla Mining exits gold with Casa Berardi sale, repays $263M in bonds, and posts record adjusted EBITDA of $265M as a debt-free silver pure-play.

Hecla Mining has emerged from the first quarter of 2026 as a leaner, debt-free silver pure-play, following a decisive break with its gold mining past. The company used a surge in operating cash flow to repay $263 million in bonds early, leaving its balance sheet clean and its treasury flush with $588 million in cash.

The transformation came at a cost. Hecla booked a non-cash loss of $192.5 million from the sale of its Casa Berardi mine in Quebec, along with the Hecla Quebec subsidiary. That one-time charge dragged the bottom line to a net loss of $19 million, or $0.03 per share. Strip out the discontinued operations, however, and the picture flips dramatically: adjusted net income reached $164.7 million.

Revenue from continuing operations doubled to $411.4 million, fueled by higher silver prices and stronger output from the company's core assets. Adjusted EBITDA hit a record $265 million. The market responded in kind, with shares surging more than 10% on Wednesday to €16.09, bringing the stock back toward its 50-day moving average.

Hecla's three remaining mines — Greens Creek, Lucky Friday, and Keno Hill — are now the sole focus. Together they generated $194.2 million in operating cash flow, which management deployed immediately to eliminate long-term debt. The company's credit line remains untapped, preserving flexibility for future investment.

Silver production reached 3.9 million ounces during the quarter, with all-in sustaining costs of just $8.17 per ounce. The exit from the high-cost Casa Berardi operation has meaningfully lowered the group's overall cost base. Hecla is targeting annual silver output of more than 20 million ounces in the medium term, with the cooling project at Lucky Friday — due for completion this summer — serving as a key milestone.

The company now stands as the largest US-based silver producer, operating exclusively in stable jurisdictions. With a debt-free balance sheet and $588.7 million in liquidity, management plans to channel capital more aggressively into expanding its existing mines. Investors will be watching for exploration results from the three core sites in the months ahead, with the next detailed production update scheduled for August 10. The ex-dividend date falls on May 22.