Hecla Mining Company (NYSE:HL) 2026 Investor Day Transcript

Hecla Mining Company Investor Day Summary Company Overview - Company Name: Hecla Mining Company (NYSE: HL) - Headquarters: Coeur d'Alene, Idaho - Market Capitalization: Over $17 billion as of mid-January 2026 - Share Ownership: 22% retail, 78% institutional - Operations: Four precious metals mines located in the United States and Canada, positioning Hecla as the lowest geopolitical risk silver miner in the sector [4][5] Key Points from the Investor Day Strategic Transformation - Leadership Change: Rob Krcmarov appointed as CEO in November 2024, focusing on fundamental transformation and disciplined capital allocation [7][8] - Exploration Budget: The board approved a $55 million exploration budget for 2026, nearly double the previous year, indicating a commitment to future growth [9] - Operational Excellence: Emphasis on operational performance, financial frameworks, and exploration strategies to sustain growth through commodity cycles [9][10] Recent Developments - Sale of Hecla Quebec: Agreement to sell Hecla Quebec for nearly $600 million, redirecting focus towards silver production [11][12] - Production Guidance: Expected silver production for 2026 is between 15.1 million and 16.5 million ounces, with a potential pathway to 20 million ounces in the medium term [35][36] Financial Performance - Free Cash Flow: Generated $310 million in free cash flow in 2025, with all operations being free cash flow positive [26][43] - Debt Reduction: Gross leverage improved from 1.6x to 0.4x, with a target for complete deleveraging [43][44] - Return on Invested Capital (ROIC): Increased from 4% in 2024 to 12% in 2025, with expectations for continued strong performance [44][46] Market Position and Silver Focus - Silver Revenue: Approximately 50% of revenues generated from silver, compared to 20%-30% for peers, highlighting Hecla's commitment to silver over gold [29][61] - Supply-Demand Dynamics: The silver market is in a structural deficit, with a cumulative supply deficit of 800 million ounces since 2021, driven by strong industrial demand and constrained supply [58][59] - Investment in Silver: Hecla's focus on silver is expected to yield significant returns due to its unique properties and increasing demand in various sectors, including solar energy and electrification [60][61] Operational Excellence - Safety Improvements: Achieved a 13% improvement in total reportable injury frequency rate in 2025, with ongoing investments in safety training and hazard reporting [64][65] - Technology Integration: Implementation of integrated systems for real-time monitoring and decision-making to enhance operational efficiency [66] Conclusion Hecla Mining Company is positioned for significant growth in the silver market, driven by a strategic focus on operational excellence, disciplined capital allocation, and a strong commitment to safety and sustainability. The company's transformation under new leadership aims to unlock value and capitalize on the growing demand for silver in a favorable geopolitical landscape.