HL Q2 2026 - Preliminary Earnings Alert

Event: Quartr Q2 2026 event Retrieved: 2026-08-04T22:30:00Z Comparison mode: maximal Scorecard contract: v1 Source status: release=Form 10-Q only, no separate earnings release attached | financials=Form 10-Q | transcript=not available (call scheduled 2026-08-05 14:00Z)

Consensus scorecard

Reported results and guidance

Sales variance attribution for the quarter, as disclosed:

• This event has no separate earnings release attached in Quartr; the Form 10-Q is the source document and it contains no revenue, production, or cost guidance.
• Scorecard recap: total sales of $333.9m missed the $368.8m consensus by 9.5%, and GAAP diluted EPS of $0.17 missed the $0.1814 estimate by 6.3%.
• The sale of Hecla Quebec closed on 25 March 2026 for total consideration with a fair value of $385.7m, producing a $192.5m loss recognized within discontinued operations in the six-month period. Prior-year comparatives are restated for discontinued operations.
• The company recorded net negative price adjustments to provisional settlements of $13.1m in the quarter, against $4.2m of positive adjustments a year earlier.

Key bullish aspects

• Total sales rose 52.4% year over year to $333.9m and income from continuing operations rose to $117.9m from $26.9m, more than quadrupling on the same basis.
• Realized silver prices rose 81.1% to $63.06 per ounce and realized gold prices rose 28.4% to $4,256 per ounce; the disclosed price effect alone added $112.9m to sales of products in the quarter.
• Operating leverage was strong: costs applicable to sales rose 14.5% against a 52.4% sales increase, and income from operations rose 151.3% to $145.7m.
• Interest expense fell 78.0% to $2.4m after the company repaid $263.0m of debt in the first six months, up from $117.0m repaid a year earlier.
• Six-month operating cash flow from continuing operations rose 163.1% to $357.8m, and period-end cash and equivalents reached $483.5m against $296.6m a year earlier.
• Smelter and refining charges turned into a $4.2m credit from a $2.5m charge a year earlier, adding $6.8m to sales of products on the company's own variance attribution.
• The Hecla Quebec sale brought $178.2m of net cash plus $117.4m of investment sale proceeds in the six months, funding the debt reduction while retaining $57.1m of deferred and $35.9m of contingent consideration plus 65.8m Orezone shares valued at $106.1m at closing.
• Zinc and lead sales grew 20.3% and 13.4% respectively on higher realized prices, providing by-product support alongside the silver base.
• Three organic growth options are disclosed — a Greens Creek pyrite concentrate circuit possibly producing as soon as late 2027 or the first half of 2028, reprocessing of the Greens Creek dry-stack tailings, and a potential restart of the fully permitted Midas mill in Nevada.
• The company states tariffs have not materially affected results to date.

Key bearish aspects

• Both scorecard metrics missed: sales of $333.9m were 9.5% below the $368.8m consensus and diluted EPS of $0.17 was 6.3% below the $0.1814 estimate, despite the very large year-over-year growth.
• Production fell: silver output declined to 4.2 million ounces from 4.5 million and Greens Creek gold output fell 20.0% to 14,199 ounces, both attributed to lower throughput and grades at Greens Creek. Six-month silver production fell to 8.1 million ounces from 8.6 million.
• Volume was a $9.0m drag on sales of products in the quarter, so essentially all of the revenue growth came from price rather than operations.
• Net negative provisional price adjustments of $13.1m hit the quarter, reversing $4.2m of positive adjustments a year earlier — a $17.3m year-over-year swing embedded in reported sales.
• Fair value adjustments swung to a $9.2m loss from a $4.5m gain, and six-month fair value adjustments were a $15.2m loss against a $7.8m gain.
• Cost inflation is explicit: the company cites higher energy prices and increased costs for reagents, explosives, steel, labor and contractors. General and administrative expense rose 21.0% and exploration and pre-development rose 33.7%.
• The Hecla Quebec disposal produced a $192.5m loss on sale within discontinued operations, cutting six-month net income to $98.8m despite $282.5m from continuing operations.
• Casa Berardi closure liability risk persists after the sale: the Quebec government fixed required financial assurance at CAD $237.1m against a $150m threshold, giving the buyer a set-off right against deferred payments; the company has accrued $11.5m.
• Four Statements of Offence were issued in July 2026 over the 2023 HM3 impoundment dam incident, seeking penalties, costs and contributions of approximately $2.7m in aggregate, which the company has agreed to reimburse to the buyer.
• Diluted share count rose 5.7% year over year to 675.9 million, so per-share results carry ongoing dilution.
• Surety bonds of $221.7m and letters of credit of $3.5m remain outstanding as financial support for reclamation and closure obligations.

Key uncertainties

• The Form 10-Q contains no production, cost, or capital guidance for the remainder of 2026, and no separate earnings release is attached to this Quartr event, so there is no company-set bar for the second half in these documents.
• Cash Cost After By-product Credits per ounce and All-In Sustaining Cost per ounce — the two measures the company names as its key operating metrics — are not captured in the sections read for this stage, so unit-cost performance against the price move cannot be assessed here.
• The Greens Creek throughput and grade shortfall is stated as the cause of lower production but is not quantified by tonnes milled or head grade in the sections read, so whether it is a sequencing issue or a reserve-quality issue is unclear.
• The consensus revenue estimate of $368.8m is 10.5% above reported sales; the release does not indicate whether the estimate was built on a pre-disposal revenue base, and prior-period comparatives here are restated for discontinued operations.
• Realized silver of $63.06 per ounce sits 14% below the $73.44 London PM Fix average for the quarter, reflecting provisional pricing, settlement timing and hedge effects; the durability of that gap into the second half is not addressed.
• The $35.9m fair value of contingent consideration from the Hecla Quebec sale depends on permitting success, future gold production, and gold prices above $4,200 per ounce, with up to $241m of undiscounted payments; none of these outcomes is within the company's control.
• The Orezone share consideration of 65.8m shares valued at $106.1m at closing is exposed to that company's share price, and the deferred cash consideration is subject to a set-off the company has already accrued against.
• The three growth options at Greens Creek and Midas are each described as unapproved and subject to further technical, economic, permitting and board review, with no capital cost or production estimate given.
• The company notes historical significant sales into China and Canada and flags potential tariff and retaliation exposure without quantifying it.
• No transcript is available yet, so management's account of the Greens Creek shortfall and the cost outlook cannot be assessed for this stage.

Market context

• API Ninjas snapshot: HL $15.39 on NYSE, volume 31,626,081, retrieved 2026-08-04T22:13:38Z. The Form 10-Q carries a Quartr filing timestamp of 2026-08-05T14:00Z and the document was ingested at approximately 2026-08-04T21:10Z, after the 4:00 p.m. ET close; the conference call is scheduled for 10:00 a.m. ET on 2026-08-05. This is a single quote of unstated session basis, not a measured reaction to the filing.

Source limitations

• Every actual above comes from the Quartr Q2 2026 Form 10-Q. No earnings release document is attached to this Quartr event, and Quartr standardized financials for this event are not yet populated.
• API Ninjas supplied no actual or difference fields for this event, so each beat/miss is calculated locally as Quartr actual minus API Ninjas estimate. The API row carried no fiscal year or quarter, so the exact ticker-and-event-date match path was used.
• The API Ninjas estimate row is dated 2026-08-04 while the Quartr event is dated 2026-08-05; the one-day drift is within the tolerance of the configured comparison mode.
• The scorecard uses GAAP diluted EPS after preferred dividends of $0.17. The 10-Q presents no adjusted or non-GAAP per-share measure, and diluted EPS from continuing operations is also $0.17 for the quarter.
• Prior-year comparatives reflect the restatement of Hecla Quebec as discontinued operations, so the reported Q2 2025 sales of $218.992m are not comparable to the provider's historical actual for that quarter.
• Quarterly capital investment and dividend figures are disclosed for Q2 2026 only in the highlights section; the corresponding prior-quarter figures are not presented, so those rows are left unpopulated rather than derived.
• Year-over-year percentage changes not printed in the filing are calculated from the filing's own three-month and six-month columns.
• The 10-Q runs to 69 pages in Quartr; the financial statements, results-of-operations overview, sales variance analysis, discontinued operations note, and contingencies note were read for this stage. The segment sections and the non-GAAP unit-cost reconciliations were not.
• No transcript exists for this event yet; the call is scheduled for 2026-08-05. A separate post-call update will cover it.

Source links

• Quartr Q2 2026 Form 10-Q
• Quartr filing condensed consolidated statements of operations page
• Quartr filing condensed consolidated statements of cash flows page
• Quartr filing quarterly highlights page
• Quartr filing sales variance and realized price pages
• Quartr filing discontinued operations note