The quarter was weaker than the headline cash-flow figures suggest. Published estimates ahead of the release clustered around $369-$379 million of revenue and $0.18-$0.23 of EPS. Sales were $334 million, roughly 9%-12% below that revenue range, while $0.18 in basic continuing-operations EPS was in line with the low estimate but below the higher one. Lower realized silver and gold prices and shipment timing reduced sales even though silver output rose. (Financial Highlights; Second Quarter Results)
| Metric | 2Q 2026 actual | Prior quarter | Standing expectation / change |
|---|---|---|---|
| Sales | $334m | $411m | Published consensus: ~$369m-$379m (Financial Highlights) |
| Basic EPS, continuing operations | $0.18 | $0.25 | Published consensus: ~$0.18-$0.23 (Financial Highlights) |
| Silver production | 4.21m oz | 3.90m oz | +8% sequentially (Operational Highlights) |
| Free cash flow, continuing operations | $136m | $144m | -5% sequentially; +107% year over year (Financial Highlights) |
| 2026 silver-production guidance | 15.1m-16.1m oz | 15.1m-16.5m oz | Upper end cut by 0.4m oz (Guidance) |
| Total-silver AISC guidance | $12.50-$13.50/oz | Previously higher | Lowered after first-half cost outperformance (Guidance) |
Guidance is a net step down on volume, despite better costs. The company raised Greens Creek's production outlook and narrowed Lucky Friday's range upward, but cut Keno Hill's expected 2026 production to 2.2m-2.6m ounces from 2.9m-3.2m. That more than offsets the mine-level improvements at the consolidated upper end. Cost guidance improved, with total-silver cash cost now expected to be negative $4.00 to negative $3.75 per ounce and AISC at $12.50-$13.50 per ounce; however, those measures exclude Keno Hill because it remains pre-commercial. (Guidance; 2026 Guidance Reconciliation)
Cash generation and the balance sheet materially cushion the operating shortfall, but do not erase it. Continuing-operations free cash flow was still $136 million, and the company used $263 million to redeem its remaining senior notes, leaving no conventional debt and $483 million of cash. Yet operating cash flow also benefited from a $63 million release of receivables, so not all of the quarter's cash conversion reflects recurring mine economics. (Cash Flow Statement; Second Quarter Results; Balance Sheets)
The production gain needs context. Lucky Friday set a quarterly record at 1.53 million ounces, but it was helped by a 31% increase in mined grade that the filing says is not expected to persist. Meanwhile, Greens Creek produced less silver than in the first quarter and Keno Hill remains in a lower-throughput, infrastructure-and-permitting-focused ramp-up. This makes the lower consolidated production ceiling more important than the headline 8% quarterly production increase. (Operational Highlights; Guidance)
Net: investors received lower costs, exceptional cash flow, and a debt-free balance sheet, but those positives are countered by a clear revenue shortfall and a reduced 2026 output ceiling driven by Keno Hill. The new Greens Creek processing and tailings concepts are potential longer-term upside, not near-term offsets: the pyrite circuit remains preliminary, lacks final cost estimates and approvals, and targets initial production no earlier than late 2027. (Project Pipeline Update)
Read the original 8-K on SEC EDGAR ↗