Precious metals miner Hecla Mining’s Keno Hill operation in Canada’s Yukon Territory posted its first profitable quarter under company ownership, even as power disruptions curbed throughput and delayed progress toward commercial production.

Keno Hill generated a gross profit of $1-million in the first quarter of 2025, producing 772 430 oz of silver – a 23% increase over the previous quarter. The mine, which has not yet reached commercial production status, averaged mill throughput of 305 t/d, below its permitted 440 t/d capacity.

The operation faced power curtailments linked to maintenance work by Yukon Energy Corporation and a turbine failure at a hydroelectric plant in Whitehorse. Hecla expects further curtailments in the third quarter, which could reduce silver output by up to 90 000 oz.

Despite the challenges, Hecla remains committed to ramping up Keno Hill to sustainable production levels. The company said throughput would need to reach 500 t/d to 600 t/d to ensure profitability at current silver prices. That goal will require further permitting, development of new deposits and significant capital investment.

"If any one of these were not to occur, particularly if prices were to decrease from current prices, Keno Hill as currently configured would not be profitable, and placing the operation on care and maintenance would be an option," Hecla cautioned.

RECORD FINANCIALS ON SILVER STRENGTH
The Keno Hill milestone came as Hecla reported record first-quarter sales of $261.3-million, driven by strong silver prices and solid operational performance across its portfolio. Silver production totalled 4.1-million ounces, while gold output reached 34 232 oz.

Total cost of sales for silver operations was $129.6-million, with a cash of $1.29/oz and an all-in sustaining cost (AISC) of $11.91/oz. Gold operations posted a cost of sales of $50.7-million, with cash cost and AISC at $2 195/oz and $2 303/oz, respectively.

The Lucky Friday mine in Idaho achieved a new quarterly milling record of 108 745 t, beating the previous high set in the fourth quarter of 2024.

Hecla reported adjusted earnings before interest, taxes, depreciation and amortisation of $90.8-million for the quarter and $357.1-million over the past year, improving its net leverage ratio to 1.5x from 1.6x in the prior quarter.

President and CEO Rob Krcmarov said the results highlighted the strength of Hecla’s business model. “Our operational excellence continues to shine through, with Lucky Friday setting a new milling record and Keno Hill increasing silver production,” he said.

Looking ahead, Hecla said it would continue to focus on four strategic priorities: operational excellence, portfolio optimisation, financial discipline, and positioning itself to meet growing demand for silver in green technologies.