Contradictions Unveiled: Keno Hill's Production Expectations and Labor Disputes at Lucky Friday

Operational and Financial Performance:
- Hecla Mining reported record sales of $304 million and net income of nearly $58 million for Q2 2025, achieving record adjusted EBITDA of $133 million and generating over $160 million in cash from operations.
- The strong financial performance was driven by increased silver and gold production, with 4.5 million ounces of silver and nearly 46,000 ounces of gold.

Keno Hill Strategic Recalibration:
- Keno Hill is planned to ramp up to 440 tonnes per day, with significant investments in infrastructure like cemented tailings plants and mine development.
- The strategic decision to reduce throughput targets from 550-600 to 440 tonnes per day aims to optimize returns and preserve expansion optionality while addressing permitting constraints.

Debt Reduction and Capital Allocation:
- Hecla Mining executed a $212 million partial redemption of its senior notes and repaid CAD 50 million of Quebec notes.
- The debt reduction is part of a strategy to deleverage and invest in high-return projects, with a focus on maximizing free cash flow and strengthening the balance sheet.

Exploration and Asset Development:
- The company highlighted exploration successes at its Nevada properties, with new gold-bearing structures identified at the Midas and Hollister projects.
- These discoveries are part of Hecla's strategic focus on value creation through exploration rather than expensive M&A deals, aiming to unlock the potential of its existing assets.