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1. Company Snapshot

1.a. Company Description

Hecla Mining Company, together with its subsidiaries, discovers, acquires, develops, and produces precious and base metal properties in the United States and internationally.The company mines for silver, gold, lead, and zinc concentrates, as well as carbon material containing silver and gold for sale to custom smelters, metal traders, and third-party processors,; and doré containing silver and gold.It owns 100% interests in the Greens Creek mine located on Admiralty Island in southeast Alaska; the Lucky Friday mine situated in northern Idaho; the Casa Berardi mine located in the Abitibi region of northwestern Quebec, Canada; and the San Sebastian mine situated in the city of Durango, Mexico.


The company also holds 100% interests in the Fire Creek mine located in Lander County, Nevada; and the Hollister and Midas mines situated in Elko County, Nevada.Hecla Mining Company was incorporated in 1891 and is headquartered in Coeur d'Alene, Idaho.

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1.b. Last Insights on HL

Hecla Mining's recent performance was driven by strong Q3 earnings, beating estimates with $0.12 per share, and revenue growth fueled by higher metal prices. The company's ascension to a closely followed stock index and increased institutional investor interest, such as Bank of New York Mellon Corp's 0.4% stake increase, also contributed. Additionally, Hecla's high-grade gold discovery at Midas and expanded mineralization at Keno Hill and Greens Creek have positively impacted its growth prospects. A "Hold" rating from brokerages and a recent environmental permit for the Polaris Exploration Project further support its growth trajectory.

1.c. Company Highlights

2. Hecla's Q3 2025 Earnings: A Strong Quarter with Record Financial Performance

Hecla delivered a robust third quarter with revenues of $410 million, net income of $101 million, and adjusted EBITDA of $196 million. Earnings per share (EPS) came in at $0.12, beating analyst estimates of $0.11. The company's silver margins remained robust at $31.57 per ounce, representing 74% of the realized price of silver. As Russell Lawlar noted, "silver continuing to be our primary revenue driver, followed by gold and base metals," highlighting the importance of silver in Hecla's revenue mix.

Publication Date: Nov -15

📋 Highlights

Operational Highlights

Hecla's operations executed well, with all four producing assets generating positive free cash flow for the second consecutive quarter. Silver production was 4.6 million ounces, up 2% from the last quarter, with cash costs of negative $2.03 per ounce and AISC of $11.01. The Greens Creek mine delivered a strong operational quarter, driving robust free cash flow generation, with silver production coming in at 2.3 million ounces.

Balance Sheet Transformation

Hecla's balance sheet transformation is a significant achievement, with net leverage improving from 1.8x to 0.3x in Q3, an 83% reduction in a single year. The company has fully repaid its revolver, redeemed $212 million of debt, and paid the CAD 50 million note. This transformation has resulted in a structurally derisked company with improved financial flexibility.

Valuation and Outlook

With a P/E Ratio of 31.62 and an EV/EBITDA of 18.84, Hecla's valuation suggests that the market is pricing in a certain level of growth. Analysts estimate revenue growth of 11.0% for next year, which may justify the current valuation. Hecla's mission to transform from a cash-constrained operator to a financially flexible company is on track, with a focus on consistent execution, stable cash generation, and disciplined capital deployment.

Exploration and Growth

Hecla plans to increase its exploration budget in Nevada and reinitiate dormant projects, highlighting the potential for growth and value creation. The company's Nevada assets offer opportunities to unlock hidden value, with three key properties having significant historical production and exploration potential. With a comprehensive Nevada strategy to be unveiled later this month, Hecla is poised to capitalize on its existing assets and create new opportunities for growth.

3. NewsRoom

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Hecla Receives Permit for 2026 Polaris Exploration Program in Nevada's Historic Aurora Mining District

Dec -01

Source: businesswire.com

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BitMine, Rocket Companies, And Symbotic Are Among the Top 10 Large-Cap Gainers Last Week (Nov. 24-Nov. 28): Are the Others in Your Portfolio?

Nov -30

Source: feeds.benzinga.com

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Silver surges to record on Fed rate cut optimism

Nov -28

Source: proactiveinvestors.com

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Tesla plans modest Robotaxi expansion in Austin

Nov -28

Source: proactiveinvestors.com

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SEC reportedly investigating Jefferies over First Brands exposure

Nov -28

Source: proactiveinvestors.com

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Hecla Reports High-Grade Gold Discovery at Midas with Visible Gold Intercepts; Expands Mineralization at Keno Hill and Greens Creek

Nov -24

Source: businesswire.com

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First Eagle Small Cap Opportunity Fund Q3 2025 Portfolio Review

Nov -20

Source: seekingalpha.com

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Elsa Reclamation and Development Corporation Receives 2025 Robert E. Leckie Award

Nov -18

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.00%)

6. Segments

Greens Creek

Expected Growth: 2.0%

Hecla Mining's Greens Creek segment growth is driven by increasing silver production, rising silver prices, and improved milling and mining efficiencies. The mine's high-grade ore and low operating costs also contribute to its growth. Additionally, Hecla's focus on exploration and development of nearby deposits, such as the Niblack project, is expected to further boost production and revenue.

Casa Berardi

Expected Growth: 2.0%

Casa Berardi's 2.0% growth is driven by increased gold production, improved ore grades, and enhanced mill recoveries. Additionally, Hecla's focus on cost reduction initiatives, exploration success, and strategic investments in mine development and infrastructure have contributed to the growth. The mine's proximity to existing infrastructure and favorable geology also support its expansion.

Lucky Friday

Expected Growth: 2.0%

Lucky Friday's 2.0% growth is driven by increased silver production, improved ore grades, and enhanced mining efficiency. Hecla Mining Company's strategic investments in exploration and development have expanded the mine's resource base, supporting higher output. Additionally, cost-saving initiatives and favorable silver prices have contributed to the segment's growth.

Keno Hill

Expected Growth: 2.0%

Hecla Mining's Keno Hill segment growth is driven by increasing silver production, rising silver prices, and improved operating efficiencies. The mine's high-grade ore and low cash costs also contribute to its growth. Additionally, Hecla's focus on exploration and development of new deposits, such as the Keno Hill expansion, will further boost production and revenue.

Other

Expected Growth: 2.0%

Hecla Mining's 2.0% growth in 'Other' segment is driven by increased silver and gold production from its Nevada and Alaska operations, coupled with higher average realized prices. Additionally, the company's cost-saving initiatives and improved operational efficiencies have contributed to the growth.

Nevada Operations

Expected Growth: 2.0%

Nevada Operations' 2.0% growth driven by increased silver and gold production at the Fire Creek and Hollister mines, coupled with higher realized prices and improved operating efficiencies. Additionally, the company's focus on cost reduction initiatives and exploration efforts to extend mine life have contributed to the segment's growth.

7. Detailed Products

Silver

Hecla Mining Company is a leading producer of silver, with operations in the United States, Canada, and Mexico. The company's silver production comes from its Greens Creek, Lucky Friday, and Casa Berardi mines.

Gold

Hecla Mining Company is a significant producer of gold, with operations in the United States, Canada, and Mexico. The company's gold production comes from its Casa Berardi, Greens Creek, and San Sebastian mines.

Lead

Hecla Mining Company produces lead as a byproduct of its silver and zinc mining operations. The company's lead production comes from its Greens Creek and Lucky Friday mines.

Zinc

Hecla Mining Company produces zinc as a byproduct of its silver and lead mining operations. The company's zinc production comes from its Greens Creek and Lucky Friday mines.

8. Hecla Mining Company's Porter Forces

Forces Ranking

Threat Of Substitutes

Hecla Mining Company operates in the mining industry, which has a moderate threat of substitutes. While there are alternative metals and materials available, the demand for silver, gold, and other metals is relatively inelastic, reducing the threat of substitutes.

Bargaining Power Of Customers

Hecla Mining Company's customers, such as jewelry manufacturers and industrial companies, have limited bargaining power due to the company's diversified customer base and the lack of concentration in the industry.

Bargaining Power Of Suppliers

Hecla Mining Company's suppliers, such as equipment manufacturers and service providers, have moderate bargaining power due to the availability of alternative suppliers and the company's relatively small size compared to its suppliers.

Threat Of New Entrants

The threat of new entrants in the mining industry is low due to the high barriers to entry, including significant capital requirements, regulatory hurdles, and environmental concerns.

Intensity Of Rivalry

The mining industry is highly competitive, with many established players competing for market share, resources, and talent, leading to a high intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 25.19%
Debt Cost 6.44%
Equity Weight 74.81%
Equity Cost 15.00%
WACC 12.84%
Leverage 33.68%

11. Quality Control: Hecla Mining Company passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Royal Gold

A-Score: 5.7/10

Value: 1.8

Growth: 6.1

Quality: 7.8

Yield: 2.0

Momentum: 9.0

Volatility: 7.3

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FMC

A-Score: 4.4/10

Value: 8.6

Growth: 3.6

Quality: 4.1

Yield: 8.0

Momentum: 0.0

Volatility: 2.3

1-Year Total Return ->

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Coeur Mining

A-Score: 4.3/10

Value: 2.6

Growth: 4.3

Quality: 6.8

Yield: 0.0

Momentum: 10.0

Volatility: 2.3

1-Year Total Return ->

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Alcoa

A-Score: 4.0/10

Value: 7.2

Growth: 2.6

Quality: 6.2

Yield: 2.0

Momentum: 3.0

Volatility: 3.3

1-Year Total Return ->

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Hecla Mining

A-Score: 3.9/10

Value: 1.5

Growth: 4.0

Quality: 5.9

Yield: 0.0

Momentum: 9.5

Volatility: 2.7

1-Year Total Return ->

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Stock-Card
Avantor

A-Score: 3.5/10

Value: 6.3

Growth: 5.8

Quality: 5.0

Yield: 0.0

Momentum: 0.0

Volatility: 3.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

16.97$

Current Price

16.97$

Potential

-0.00%

Expected Cash-Flows