Hecla Mining Analysis
Hecla Mining (NYSE: HL) – Updated Report (September 22, 2025)
Executive Summary:
Hecla Mining (HL) continues to strengthen as a leading U.S.-based silver and gold producer, supported by a record silver price of $43.54/oz and gold at $3,692/oz. The stock recently rebounded from a pullback, trading at $11.02, up over 100% from its 12-month lows. With operations in safe jurisdictions and strong leverage to rising silver, Hecla remains well positioned, though investors must weigh elevated volatility and the risk of equity dilution.
Implication for HL:
Heclas earnings are increasingly leveraged to silver. Every $1/oz move in silver shifts annual free cash flow by ~$20–25M. At today’s prices, margins at Greens Creek and Lucky Friday are exceptionally strong.
Company Overview
Headquarters: Coeur d’Alene, Idaho, U.S.
Market Cap: ~$7.2B at $11.02/share
Business Model: Precious metals mining, primarily silver (~40% revenue) and gold (~35% revenue).
Key Mines: Greens Creek (AK), Lucky Friday (ID), Casa Berardi (QC).
Management & Leadership
CEO: Phillips S. Baker Jr. (20+ years at HL).
Strengths: Stability, silver market expertise, history of navigating commodity cycles.
Weaknesses: Track record of shareholder dilution in downturns.
✅ Overall: Solid leadership with strong silver mining experience, but shareholder alignment has been questioned.
Mining Properties & Geology
Greens Creek (Alaska): World-class silver mine, robust by-product credits.
Lucky Friday (Idaho): High-grade underground silver mine, ramping production with new automation.
Casa Berardi (Quebec): Transitioning to underground gold, higher costs but steady contribution.
Exploration: District-scale upside at Greens Creek and Lucky Friday; $45M exploration budget in 2025.
Resources & Reserves (2024 YE)
Production & Operations
Financial Performance
Q2 2025 Revenue: ~$265M
EBITDA Margin: ~35% (expected to expand >45% in Q3 on stronger silver).
Net Debt/EBITDA: ~1.2x, moderate leverage.
Liquidity: >$300M in cash & credit.
Capex: ~$170M in 2025.
Outlook
With silver prices at multi-decade highs and Hecla’s production growth profile intact, HL is set to deliver record cash flow in H2 2025. The company’s pure-play silver exposure and U.S./Canada jurisdiction make it a preferred vehicle for investors seeking leverage to silver, though volatility remains elevated.
Risk-Adjusted Metrics (1-Year vs. GDXJ Benchmark)
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