Following an unprecedented first quarter that saw silver prices break into triple digits before sharply correcting, the sector’s top producers registered massive cash generation and bolstered balance sheets.
Silver achieved a historic milestone early in the first quarter, surging past US$100 an ounce and hitting an all-time high of US$121.62 on January 29. The initial rally was fueled by expanding industrial demand, safe-haven flows, and expectations of Federal Reserve rate cuts.
However, the momentum violently reversed in February. US President Donald Trump’s nomination of the hawkish Kevin Warsh to replace Jerome Powell as Fed chair triggered a 35 percent plunge, dragging silver down to US$71.
As the US-Iran war escalated in March, threatening global oil supplies through the Strait of Hormuz, inflation fears and unpredictable monetary policy dampened precious metal demand. Silver sank as low as US$61 before closing the quarter at US$75.15.
Despite the wild fluctuations, major producers capitalized on the high average realized prices to fortify their balance sheets.
Below is a breakdown of how a few major players fared in Q1.
Pan American Silver targets US$1 billion in shareholder returns
Pan American Silver (TSX:PAAS,NYSE:PAAS) reported strong first-quarter figures, generating US$488 million in attributable free cash flow and boosting its cash and short-term investments to a record US$1.8 billion.
The company posted net earnings of US$456 million on revenues of US$1.2 billion, overcoming a temporary inventory build-up of 644,000 ounces of silver delayed by shipping schedules.
Attributable silver production reached 6.44 million ounces, with a low all-in sustaining cost (AISC) of US$6.63 per ounce, aided by higher gold by-product credits and low-cost output from the Juanicipio mine.
“Q1 delivered solid results, driven by strong production, disciplined cost management, and improved quarter-over-quarter silver and gold prices,” President and CEO Michael Steinmann said.
The company is also advancing its La Colorada Skarn project, approving an initial US$265 million spend to begin construction of an internal ramp to access the high-grade deposit.
Hecla Mining achieves debt-free status
Hecla Mining Company (NYSE:HL) posted record free cash flow from continuing operations of US$144 million and net income from continuing operations of US$165 million.
Revenue from continuing operations topped US$411 million, a 100 percent increase over the first quarter of 2025. The company produced 3.9 million ounces of silver at an AISC of US$8.17 per ounce.
Crucially, the quarter marked a strategic inflection point. Benefiting from organic cash generation and the March sale of its Casa Berardi asset, Hecla ended the quarter with US$588 million in cash.
Subsequent to the quarter’s end, the company redeemed its remaining US$263 million in senior notes.
“The first quarter demonstrates the strength of the platform we have built,” President and CEO Rob Krcmarov said. “The closing of the Casa Berardi sale sharpened our focus on silver and enabled us to redeem our Senior Notes in April, leaving Hecla debt-free with a US$225 million undrawn revolver and the strongest balance sheet in the Company’s recent history.”
Coeur Mining closes major acquisition, cash multiplies
Coeur Mining (TSX:CDE,NYSE:CDE) also reported record financial results, generating US$856 million in revenue and US$247 million in GAAP net income from continuing operations.
Record quarterly adjusted EBITDA of US$475 million helped drive the company’s cash and cash equivalents to US$843 million—a near eleven-fold increase compared to the same period last year.
The quarter was marked by the March 20 closing of the New Gold transaction, which added the New Afton and Rainy River assets to Coeur’s portfolio. First-quarter production totaled 4.4 million ounces of silver and 96,503 ounces of gold.
“Coeur delivered a strong start to what is expected to be a record year, with every mine in the portfolio contributing to record first quarter results,” Chairman, President and Chief Executive Officer Mitchell J. Krebs said. “Adjusted EBITDA reached a new quarterly record and free cash flow remained robust, leading to a quarter-end cash balance of over $840 million – nearly an eleven-fold year-over-year increase.”
The company also launched an expanded US$750 million share repurchase program and established an inaugural dividend policy of US$0.02 per share.
Don’t forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.