Hecla's Keno Hill mine had a strong quarter. A slowdown comes next.
The company plans to slow Keno Hill to conserve permitted space for mine waste. It expects lower revenue and higher costs there during 2027 through 2029.
Hecla Mining has chosen to slow processing at Keno Hill as it works within the mine's remaining permitted capacity. The plan puts fourth-quarter throughput at approximately 300 tons a day, followed by a further reduction beginning in January 2027.
The constraint concerns the space and infrastructure approved for tailings, the material left after ore is processed, along with water and waste-rock management. The reduced pace is intended to conserve that capacity while Hecla pursues permit amendments.
A new operating plan for an existing constraint
Research by Ticker Byline shows that Hecla had already disclosed an approximately mid-2029 permitting timeline in its June-quarter report, alongside the possibility of production curtailments. It had described a choice between faster production followed by a longer pause and a slower processing rate. The new disclosure specifies the fourth-quarter rate and another reduction in January.
The current quarterly report expects reduced production to lower revenue and increase costs at Keno Hill during 2027 through 2029. Infrastructure work would follow the permit amendments, so the permitting estimate is a separate milestone from a return to higher production.
The slowdown follows a strong quarter
Keno Hill produced 963,048 ounces of silver in the third quarter, compared with 625,236 ounces in the second. The future reduction therefore follows stronger production and higher grades.
Hecla expects silver output to decline less than throughput as the mine selects higher-grade material and stockpiles lower-grade ore. It plans to provide detailed 2027 production guidance in February.
The company raised the lower end of its 2026 silver forecast and now expects 15.3 million to 16.1 million ounces.
The wider company is generating cash
Hecla's continuing operations generated $203.0 million of operating cash flow and $151.2 million of free cash flow after capital investment in the quarter. Cash and cash equivalents at September 30 were $691.6 million.
The Hecla mine results and financial history tracks Keno Hill alongside the cash generation of the wider company.