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Hecla Mining Company (HL)
NYSE:HL
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Hecla Mining Company
(NYSE:HL)
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Rating:70Outperform
Price Target:
$8.50
▼(-22.37% Downside)
Hecla Mining Company demonstrates strong financial performance and positive earnings call sentiment, which are the most significant factors driving the score. Technical analysis indicates potential overbought conditions, while valuation metrics suggest the stock may be overvalued. Corporate events further support the company's strategic positioning and growth potential.
Positive Factors
Revenue Growth
Record sales indicate strong demand and effective market positioning, supporting long-term revenue growth and business expansion.
Cash Flow Generation
Strong cash flow generation enhances financial flexibility, allowing for reinvestment in growth opportunities and debt reduction.
Debt Management
Reducing debt obligations strengthens the balance sheet, lowers interest expenses, and improves financial stability over the long term.
Negative Factors
Operational Challenges
Lower production targets at Keno Hill may impact future revenue and profitability, requiring strategic adjustments to maintain growth.
Permitting Risks
Dependence on future permits introduces uncertainty, potentially delaying expansion plans and affecting long-term production capabilities.
Casa Berardi Uncertainty
Uncertainty around Casa Berardi's future could impact overall production and strategic planning, posing risks to sustained growth.
Hecla Mining Company (HL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.34B
Dividend Yield0.23%
Average Volume (3M)28.89M
Price to Earnings (P/E)71.4
Beta (1Y)1.33
Revenue Growth36.30%
EPS GrowthN/A
CountryUS
Employees1,830
SectorBasic Materials
Sector Strength58
IndustryGold
Share Statistics
EPS (TTM)0.08
Shares Outstanding669,983,640
10 Day Avg. Volume42,149,277
30 Day Avg. Volume28,886,394
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.56
Enterprise Value/Revenue2.96
Enterprise Value/Gross Profit12.80
Enterprise Value/Ebitda12.49
Forecast
1Y Price Target
$8.96Price Target Upside-18.17% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering7
Hecla Mining Company Business Overview & Revenue Model
Company DescriptionHecla Mining Company (HL) is a leading precious metals mining company focused primarily on the extraction of silver and gold. Established in 1891, Hecla operates mining and exploration properties in North America, particularly in the United States and Canada, with significant assets including the Greens Creek mine in Alaska and the Lucky Friday mine in Idaho. The company is committed to sustainable mining practices and aims to enhance shareholder value through the exploration and development of mineral resources.
How the Company Makes MoneyHecla Mining Company generates revenue primarily through the sale of silver and gold, which are its core products. The company operates several mines that produce these precious metals, and it sells them in the global market, where prices fluctuate based on supply and demand dynamics. Key revenue streams include the production of silver and gold ounces, as well as potential by-product sales from other metals like lead and zinc. Hecla also engages in exploration activities to discover new mineral resources, which can lead to future production and revenue growth. Additionally, the company may benefit from partnerships or joint ventures with other mining firms, allowing for shared resources and enhanced operational efficiencies. Factors contributing to its earnings include the prevailing market prices of silver and gold, operational efficiency, production costs, and the successful management of mining projects.
Hecla Mining Company Earnings Call Summary
Earnings Call Date:Aug 06, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Positive
The earnings call presented a strong financial performance and effective cost management, with significant achievements in operational milestones and strategic optimization at key sites. However, challenges at Keno Hill and the ongoing strategic review of Casa Berardi present potential risks. The overall sentiment is positive due to the company's financial strength and strategic initiatives outweighing the operational challenges.Q2-2025 Updates
Positive Updates
Record Financial Performance
Hecla Mining achieved record sales of $304 million, net income of nearly $58 million, and record adjusted EBITDA of $133 million. Additionally, they generated cash from operations over $160 million and record quarterly free cash flow of $104 million.
Cost Efficiency at Silver Operations
Silver operations delivered cash costs of negative $5.46 per ounce and all-in sustaining costs of $5.19 per ounce after byproduct credits. Casa Berardi's unit costs dropped by over $600 per ounce over the prior quarter.
Operational Milestones
Lucky Friday set a new quarterly milling record, and Greens Creek delivered a strong performance with increased production and reduced cost guidance.
Keno Hill Optimization
Keno Hill's revised production target of 440 tonnes per day offers superior returns, with a significant IRR of 35% at $30 silver. The focus on optimization and systematic derisking increases confidence in the project's potential.
Balance Sheet Strengthening
The company improved its net leverage ratio to 0.7x and initiated a partial redemption for $212 million of their senior notes, reducing future interest expenses by about $16 million annually.
Negative Updates
Challenges at Keno Hill
The production target for Keno Hill was revised down from 550-600 tonnes per day to 440 tonnes per day due to constraints, requiring strategic recalibration and optimization efforts.
Potential Permitting and Capacity Risks
Keno Hill's future production level increase depends on additional permitted capacity, which presents a potential risk if not achieved by 2029.
Casa Berardi Uncertainty
The strategic review process for Casa Berardi is ongoing with expected updates soon. The operation is nearing the end of its mine life, posing uncertainty about its future.
Company Guidance
During the Hecla Mining Company's Second Quarter 2025 Earnings Conference Call, several key metrics and strategic guidance points were highlighted. The company reported record sales of $304 million and net income applicable to common shareholders of nearly $58 million. It achieved a record adjusted EBITDA of $133 million, with a net leverage ratio improved to 0.7x. Additionally, cash from operations was over $160 million, and free cash flow reached a quarterly record of $104 million. Hecla produced 4.5 million ounces of silver and nearly 46,000 ounces of gold, with silver operations achieving cash costs of negative $5.46 per ounce and all-in sustaining costs of $5.19 per ounce. Operational excellence was emphasized, including a strategic recalibration at Keno Hill, where production targets were revised to 440 tonnes per day. The company also focused on deleveraging, executing a partial redemption of $212 million of senior notes, and highlighted its commitment to maintaining silver market leadership with an average reserve mine life of 14 years. Future guidance included maintaining Greens Creek's silver production, increasing gold production guidance, and reducing cost guidance.Hecla Mining Company Financial Statement Overview
Summary
Hecla Mining Company exhibits a strong financial position with consistent revenue growth, improved profitability, and robust cash flow generation. The balance sheet reflects a stable leverage position, while the income statement and cash flow statement indicate effective cost management and cash utilization. The company is well-positioned for future growth, although it should continue to manage its debt levels prudently.Income Statement
Hecla Mining Company has shown consistent revenue growth, with a TTM revenue growth rate of 4.38%. The gross profit margin has improved to 23.09% in TTM, indicating better cost management. The net profit margin has significantly increased to 11.18% in TTM, reflecting enhanced profitability. However, the EBIT margin slightly decreased to 12.29%, suggesting some operational challenges. Overall, the income statement reflects a positive growth trajectory with improved profitability.75
Positive
Balance Sheet
The company's debt-to-equity ratio has decreased to 0.24 in TTM, indicating a stable leverage position. Return on equity has improved to 7.35%, showcasing better utilization of equity. The equity ratio remains strong, suggesting a solid financial foundation. However, the company should continue to monitor its debt levels to maintain financial stability.70
Positive
Cash Flow
Hecla Mining Company has demonstrated a remarkable free cash flow growth of 190.62% in TTM, indicating strong cash generation capabilities. The operating cash flow to net income ratio of 1.66 reflects efficient cash flow management. The free cash flow to net income ratio of 0.64 further supports the company's ability to generate cash relative to its net income. Overall, the cash flow statement highlights robust cash flow performance and financial health.80
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.39B | 929.92M | 720.23M | 718.90M | 807.47M | 691.87M |
| Gross Profit | 321.15M | 198.21M | 112.95M | 116.16M | 217.80M | 145.70M |
| EBITDA | 329.37M | 313.36M | 131.57M | 143.03M | 293.02M | 247.93M |
| Net Income | 155.45M | 35.80M | -84.22M | -37.35M | 35.09M | -16.79M |
Balance Sheet | ||||||
| Total Assets | 3.31B | 2.98B | 3.01B | 2.93B | 2.73B | 2.67B |
| Cash, Cash Equivalents and Short-Term Investments | 296.56M | 26.87M | 106.37M | 104.74M | 210.01M | 129.83M |
| Total Debt | 564.72M | 558.71M | 662.82M | 527.23M | 533.92M | 533.65M |
| Total Liabilities | 999.32M | 941.55M | 1.04B | 948.21M | 968.02M | 965.38M |
| Stockholders Equity | 2.31B | 2.04B | 1.97B | 1.98B | 1.76B | 1.70B |
Cash Flow | ||||||
| Free Cash Flow | 203.53M | 3.79M | -148.39M | -59.49M | 111.29M | 89.78M |
| Operating Cash Flow | 320.01M | 218.28M | 75.50M | 89.89M | 220.34M | 180.79M |
| Investing Cash Flow | -224.38M | -212.87M | -231.29M | -187.27M | -107.03M | -92.90M |
| Financing Cash Flow | 175.77M | -83.82M | 156.33M | -7.50M | -32.60M | -19.38M |
Hecla Mining Company Technical Analysis
Positive
10.95
Price Trends
8.14
Positive
6.86
Positive
6.18
Positive
Market Momentum
0.92
Positive
67.87
Neutral
49.54
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HL, the sentiment is Positive. The current price of 10.95 is above the 20-day moving average (MA) of 10.16, above the 50-day MA of 8.14, and above the 200-day MA of 6.18, indicating a bullish trend. The MACD of 0.92 indicates Positive momentum. The RSI at 67.87 is Neutral, neither overbought nor oversold. The STOCH value of 49.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HL.
Hecla Mining Company Risk Analysis
Hecla Mining Company disclosed 56 risk factors in its most recent earnings report. Hecla Mining Company reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Hecla Mining Company Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | 11.20B | 44.67 | 6.74% | ― | 68.88% | ― | |
79 Outperform | 649.66M | 17.76 | 15.74% | 1.66% | 28.06% | 208.80% | |
78 Outperform | 11.58B | 14.18 | ― | 1.00% | 29.08% | 70.63% | |
72 Outperform | 2.37B | 19.24 | ― | 1.48% | 30.05% | 73.23% | |
70 Outperform | $7.34B | 71.37 | 4.67% | 0.23% | 36.30% | ― | |
56 Neutral | 7.46B | -37.33 | -16.59% | ― | 6.27% | 93.14% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% |
* Basic Materials Sector Average
Performance Comparison
HL
Hecla Mining Company
10.95
3.80
53.15%
CDE
Coeur Mining
17.42
9.91
131.96%
DRD
Drdgold
26.26
16.19
160.77%
HMY
Harmony Gold Mining
17.25
6.55
61.21%
SBSW
Sibanye Stillwater
10.19
5.68
125.94%
CMCL
Caledonia Mining
33.67
19.06
130.46%
Hecla Mining Company Corporate Events
Private Placements and FinancingBusiness Operations and Strategy
Hecla Mining Redeems $212M Senior Notes
Neutral
Aug 20, 2025
On August 18, 2025, Hecla Mining Company redeemed $212 million of its outstanding $475 million 7.25% Senior Notes due 2028, paying a total of $216,014,337.38, which included a call premium and accrued interest. This financial move reflects Hecla’s efforts to manage its debt obligations, potentially impacting its financial stability and stakeholder confidence.
DividendsBusiness Operations and StrategyFinancial Disclosures
Hecla Mining Reports Record Q2 2025 Financial Results
Positive
Aug 6, 2025
Hecla Mining Company announced a dividend on its common and preferred stock, alongside a partial redemption of its Senior Notes, contingent on liquidating certain investments. The company reported record financial results for the second quarter of 2025, with significant increases in revenue, free cash flow, and production volumes, while reducing its net leverage ratio. These achievements reflect Hecla’s commitment to operational excellence and strategic reinvestment, positioning it well for future growth.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.