Hecla Mining Investor Day: $600M Casa Berardi Sale Fuels “Silver-First” Shift, 2026 Outlook

Hecla Mining (NYSE:HL) executives used the company’s Investor Day event to outline what management described as a transformation in planning discipline, balance sheet strength, and a renewed focus on being a “silver-first” company, while also highlighting an agreement announced earlier in the day to sell its Casa Berardi operation through the sale of its Hecla Quebec subsidiary.

Casa Berardi sale announced ahead of Investor Day

President and CEO Rob Krcmarov opened by calling attention to “news out of Hecla that just hit the wire,” announcing the company had entered into an agreement to sell Hecla Quebec, the subsidiary that owns Casa Berardi. Krcmarov said the purchase price is “almost $600 million,” consisting of $160 million in cash, 9.9% of Aurizon shares at closing, and the remainder in deferred and contingent payments. He said the deal is subject to customary closing conditions and could close in roughly 30 days.

Krcmarov described Casa Berardi as a “key asset” historically, but said selling it would allow Hecla to redirect capital and management attention toward silver. During Q&A, he said Hecla had owned Casa for roughly 13 years and that it had not “really made a lot of money” for most of its life, though he noted improved results at higher gold prices. He said Hecla’s then-current plan would have been to operate the 160 Pit through the end of the year and supplement with stockpiles for roughly two years of production, followed by what he described as a roughly five-year permitting hiatus to advance additional pits. He characterized the transaction as bringing forward the expected cash flow and reducing the need to invest additional capital in a non-core gold asset.

Board oversight and a larger exploration budget

Independent Chair Cassie Boggs said the board sought “a fundamental transformation” when it appointed Krcmarov CEO in November 2024, emphasizing disciplined capital allocation and operational excellence rather than “quick fixes.” Boggs said the board tracks return on invested capital (ROIC) monthly, stress tests capital allocation decisions across price scenarios, and has approved a $55 million exploration budget for 2026, which she described as nearly double the prior year’s level.

Management’s transformation narrative: discipline, deleveraging, and returns

Krcmarov said Hecla had “exceptional silver assets” but was not capturing the value, citing a lack of rigor in capital allocation and underperforming acquisitions. He said the company moved from single-scenario planning to five-scenario optimization and emphasized a value-driven framework with a 12% minimum ROIC threshold that management tracks monthly.

Chief Financial Officer Russell Lawlar said the company ended 2025 with $242 million in cash and more than $500 million in total liquidity, and that Hecla reduced debt by approximately 50% from a year earlier. He said gross leverage improved from 1.6x to 0.4x and free cash flow rose to $310 million in 2025. Lawlar also said the company’s consolidated ROIC increased from about 4% in 2024 to 12% in 2025.

Lawlar said Hecla is targeting gross debt at no more than 1x EBITDA and expects interest expense to drop from $35-$40 million annually to around $20 million as deleveraging continues. He also laid out a capital allocation framework that prioritizes fully funding operations, safety and environmental programs, sustaining capital, and exploration, followed by further debt reduction, strategic investments that meet the 12% ROIC hurdle, and potential capital returns to shareholders.

In a discussion of dividends and buybacks, Lawlar said the prior silver-linked dividend “constrained our ability to invest in growth,” and that management believes internal reinvestment or the right external opportunity can provide superior returns. He said share repurchases would be considered only in the event of a “dislocation in value.”

2026 guidance and medium-term production outline

Management referenced a news release issued the same morning detailing 2025 production results and 2026 guidance. Lawlar said 2026 silver production is expected to be 15.1-16.5 million ounces, with gold production of 134-146 thousand ounces. He said all-in sustaining cost (AISC) per silver ounce is expected to be $15-$16.25, reflecting lower production volumes, higher sustaining capital, and more conservative by-product pricing, while gold AISC is expected to be $2,150-$2,350 per ounce, driven by underground extensions at Casa Berardi “to ensure safe and productive operations over the next few years.”

Capital spending is expected to be $255 million-$279 million, which management said includes continued investment at Keno Hill, tailings work at certain operations, and other capital projects. Hecla also expects to increase exploration spending to $55 million.

Krcmarov presented a medium-term production pathway from 17 million ounces in 2025 toward a potential ~20 million-ounce profile, driven primarily by:

• Keno Hill ramp-up from about 3 million ounces toward 4.5 million ounces; and
• A potential Midas restart in Nevada, which he said could begin contributing meaningful ounces around 2030-2031, assuming exploration success and development.

He emphasized that the chart represented a pipeline rather than a ceiling and cited additional options such as Aurora and Hollister in Nevada, though he said those were not included in the medium-term profile because they require further permitting and investment decisions.

Silver market outlook and “silver-first” positioning

Treasury and finance leader Anvita said silver was above $110 per ounce that day and argued the silver market is in a “structural deficit.” She said global silver supply is about 1 billion ounces annually (about 80% from mine production and 20% from recycling), while demand is roughly 60% industrial and 40% jewelry, silverware, and investment. She said industrial demand has grown at a 10% annual rate over the past five years, led by solar photovoltaics at a 19% annual growth rate, and cited a cumulative supply deficit of 800 million ounces since 2021.

Anvita also pointed to factors she said contributed to recent price strength, including investment demand, uncertainty around U.S. trade policy, China’s restrictions on silver exports, and liquidity tightness in the London market and other exchanges. She said Hecla’s advantages include operating exclusively in the U.S. and Canada, roughly 50% revenue exposure to silver (which she said would increase with the announced Casa sale), long reserve life relative to peers, and cost positioning in the lower end of the silver cost curve.

During Q&A, management said Hecla’s silver is primarily sold in concentrate form to smelter customers such as Korea Zinc and Teck under predetermined contracts, with some spot market sales depending on terms. Executives also said they would not typically hold silver on the balance sheet, citing working-capital considerations and the concentrate sales model.

About Hecla Mining (NYSE:HL)

Hecla Mining Company, founded in 1891 and headquartered in Coeur d’Alene, Idaho, is one of the oldest publicly traded precious metals companies in the United States. Originally established to develop the rich silver deposits of the Coeur d’Alene district, Hecla has evolved into a diversified mining enterprise focused on the exploration, development and production of silver and gold, with by-product credits from lead and zinc.

The company’s principal operations are located in North America and Latin America.