Hecla Mining Company (HL) AI Stock Analysis

• Market Cap: $3.02B
• Dividend Yield: 0.8%
• Average Volume (3M): 21.29M
• Price to Earnings (P/E): 84.5
• Beta (1Y): 1.44
• Revenue Growth: 29.12%
• EPS Growth: N/A
• Country: US
• Employees: 1,830
• Sector: Basic Materials
• Sector Strength: 52
• Industry: Gold
• EPS (TTM): 0.06
• Shares Outstanding: 631,831,100
• 10 Day Avg. Volume: 19,286,643
• 30 Day Avg. Volume: 21,285,567
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.91
• Price to Cash Flow (P/CF): 13.50
• P/FCF Ratio: 15.70
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $8.13
• Price Target Upside: 53.98% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

Hecla Mining Company exhibits strong financial growth and a robust balance sheet, but high valuation and operational challenges present risks. While technical indicators suggest stability, strategic uncertainties and increased costs weigh on the outlook. The company's ability to manage these challenges while capitalizing on its strong silver reserves will be crucial for future performance.

Positive Factors

Debt Management

The company managed to significantly reduce its net debt and improve its net leverage ratio from 2.7x to 1.6x.

Financial Performance

Hecla Mining recorded a significant 29% increase in year-over-year revenue, driven by higher metal prices and increased sales volumes.

Growth Potential

Hecla is well-positioned for continued growth due to the strength of its operations and a healthy balance sheet.

Negative Factors

Cost Increases

Silver AISC guidance of $15.75-$17.00/oz is up from $13.06/oz due to higher capital investment.

Operational Challenges

Keno Hill delays are expected to continue, with Q4 affected by 35 days of mill downtime due to permitting delays and power curtailments.

Production Issues

Lower production and sales at Lucky Friday and Casa Berardi were driven by lower grades and decreased mill throughput.

Hecla Mining Company Business Overview & Revenue Model

Company Description

Hecla Mining Company (HL) is a leading precious metals mining company based in the United States. With operations primarily focused on silver and gold, Hecla has established itself as one of the largest and lowest-cost primary silver producers in the U.S. The company operates several mines in North America, including the Greens Creek mine in Alaska and the Lucky Friday mine in Idaho, and it is involved in exploration and development projects to sustain and expand its production capabilities.

How the Company Makes Money

Hecla Mining Company generates revenue primarily through the extraction and sale of precious metals such as silver, gold, lead, and zinc. The company's revenue model is based on the production outputs from its mining operations, where it extracts these metals from its owned and operated mines. After extraction, the metals are sold to various customers, including metals traders, smelters, and refineries, at market prices. Key revenue streams include the sale of silver and gold, which are often hedged to manage price volatility. Significant factors contributing to Hecla's earnings include metal grade, recovery rates, and production volumes from its mines, as well as strategic initiatives to control costs and optimize operations. Partnerships with local communities and governments play a role in facilitating operations and ensuring compliance with environmental and safety standards.

Hecla Mining Company Financial Statement Overview

Summary

Hecla Mining Company has demonstrated strong financial performance with significant revenue growth and a return to profitability. The balance sheet is robust with low leverage, and cash flow generation is strong despite high capital expenditures. Key areas for improvement include enhancing returns on equity.

Income Statement

Hecla Mining Company has demonstrated strong revenue growth, with a notable increase from $720.23M in 2023 to $929.93M in 2024, reflecting a 29.1% growth rate. The company's net profit margin improved significantly, moving from a loss in previous years to a net profit of $96.63M in 2024, yielding a net profit margin of 10.4%. The gross profit margin is healthy at 21.3%. The EBIT margin shows recovery from negative values in 2023 to 11.4% in 2024, indicating improved operational efficiency. Overall, the income statement reflects positive growth and profitability trends.

Balance Sheet

The balance sheet shows a solid equity base with stockholders' equity at $2.04B, contributing to an equity ratio of 68.4%, which indicates financial stability. The debt-to-equity ratio is low at 0.02, suggesting minimal reliance on debt financing. However, the return on equity (ROE) stands at 4.7%, which, although positive, indicates room for improvement in generating returns on equity. Overall, the balance sheet is strong but could benefit from enhanced profitability.

Cash Flow

Cash flow from operations increased significantly to $218.28M in 2024, indicating robust cash generation. Free cash flow turned positive to $3.79M from negative values, showing improvement in cash management. The operating cash flow to net income ratio is 2.26, highlighting efficient conversion of profits into cash. However, capital expenditure remains high, which could constrain free cash flow growth. Overall, the cash flow statement reflects strong operational cash generation but high investment levels.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
929.92M	720.23M	718.90M	807.47M	691.87M
	Gross Profit
198.21M	112.95M	116.16M	217.80M	145.70M
	EBIT
106.28M	-44.67M	28.30M	120.52M	78.76M
	EBITDA
306.52M	131.57M	143.03M	293.02M	247.93M
	Net Income Common Stockholders
35.80M	-84.22M	-37.35M	35.09M	-16.79M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
28.05M	106.37M	104.74M	210.01M	129.83M
	Total Assets
2.98B	3.01B	2.93B	2.73B	2.67B
	Total Debt
33.62M	662.82M	527.23M	533.92M	533.65M
	Net Debt
5.57M	556.44M	422.48M	323.91M	403.82M
	Total Liabilities
941.55M	1.04B	948.21M	968.02M	965.38M
	Stockholders Equity
2.04B	1.97B	1.98B	1.76B	1.70B
Cash Flow		Free Cash Flow
3.79M	-148.39M	-59.49M	111.29M	89.78M
	Operating Cash Flow
218.28M	75.50M	89.89M	220.34M	180.79M
	Investing Cash Flow
-212.87M	-231.29M	-187.27M	-107.03M	-92.90M
	Financing Cash Flow
-83.82M	156.33M	-7.50M	-32.60M	-19.38M

Hecla Mining Company Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.28
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HL, the sentiment is Negative. The current price of 5.28 is below the 20-day moving average (MA) of 5.56, below the 50-day MA of 5.57, and below the 200-day MA of 5.74, indicating a bearish trend. The MACD of 0.04 indicates Positive momentum. The RSI at 44.93 is Neutral, neither overbought nor oversold. The STOCH value of 20.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HL.

Hecla Mining Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HMY	76 Outperform	$8.27B	13.87	25.19%	0.81%	20.35%	20.44%
DRD	72 Outperform	$1.17B	12.59	24.89%	1.56%	22.63%	28.96%
CDE	70 Outperform	$3.57B	38.78	5.49%	―	27.30%	―
HL	67 Neutral	$3.02B	84.45	1.79%	0.80%	29.12%	―
SBSW	47 Neutral	$2.50B	―	-15.89%	―	-0.71%	80.26%
Sector *	47 Neutral	$2.43B	-2.83	-21.77%	3.74%	4.16%	-28.83%
PZG	38 Underperform	$24.40M	―	-20.99%	―	―	0.16%

Hecla Mining Company Corporate Events

Hecla Mining Reports Significant 2024 Silver Reserves

On February 12, 2025, Hecla Mining Company reported its exploration results and year-end mineral reserves for 2024, highlighting significant achievements. The company’s silver reserves reached 240 million ounces, marking the second highest in its history, and Keno Hill reserves grew by 17%. This growth was driven by successful exploration programs that expanded high-grade mineralization and strategically replaced silver production. These accomplishments position Hecla for future growth and reinforce its standing in the industry.