Hecla Mining Company (HL) AI Stock Analysis

• Market Cap: $3.12B
• Dividend Yield: 0.76%
• Average Volume (3M): 22.80M
• Price to Earnings (P/E): 43.1
• Beta (1Y): 1.39
• Revenue Growth: 41.04%
• EPS Growth: N/A
• Country: US
• Employees: 1,830
• Sector: Basic Materials
• Sector Strength: 63
• Industry: Gold
• EPS (TTM): 0.04
• Shares Outstanding: 632,563,230
• 10 Day Avg. Volume: 25,136,511
• 30 Day Avg. Volume: 22,804,339
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.31
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 20.62
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $6.63
• Price Target Upside: 28.74% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

Hecla Mining has shown strong financial performance with revenue growth and solid cash flow, but faces challenges from high valuation and bearish technical indicators. While record revenues and improved financial metrics are positives, operational and cost challenges remain. The significant growth in silver reserves presents future growth potential.

Positive Factors

Debt and Leverage

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

Financial Performance

Hecla announced $261.3M in sales with a net income of $28.7M, showing a significant improvement from the previous year's sales and net loss.

Production and Performance

Hecla's average realized prices for silver and gold increased by 36% and 40% year over year, respectively, contributing to the rise in gross profit.

Negative Factors

Cost Management

Cash costs per silver ounce guidance for Lucky Friday was raised due to higher labor, insurance, profit-sharing, contractor expenditures, and consumable costs.

Market Uncertainty

Ongoing challenges at Keno Hill and uncertainty at Casa Berardi are expected to remain an overhang to HL shares.

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.

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's financial statements show strong revenue growth and solid cash flow generation. The balance sheet reflects stability with low debt and high equity, but historical earnings volatility and limited growth potential due to high equity are concerns.

Income Statement

Hecla Mining Company has shown a strong revenue growth trajectory with a 43.3% increase in Total Revenue TTM compared to the previous annual report. The Gross Profit Margin at 18.5% and Net Profit Margin at 9.4% TTM indicate healthy operational efficiency. However, historical fluctuations in EBIT and Net Income highlight potential profitability risks.

Balance Sheet

The balance sheet demonstrates stability with a Debt-to-Equity Ratio of 0.02 and a high Equity Ratio of 68.6% TTM, reflecting strong financial leverage management. Return on Equity has improved significantly, reaching 6.1% TTM, signaling enhanced shareholder value. Nonetheless, the industry-standard high equity might limit aggressive growth opportunities.

Cash Flow

Cash flow statements reveal a positive trend with a significant Free Cash Flow growth TTM. The Operating Cash Flow to Net Income Ratio of 1.89 TTM suggests robust cash generation capability. However, fluctuations in Free Cash Flow to Net Income ratios across periods suggest volatility in cash conversion efficiency.

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
313.36M	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
26.87M	106.37M	104.74M	210.01M	129.83M
	Total Assets
2.98B	3.01B	2.93B	2.73B	2.67B
	Total Debt
550.71M	662.82M	527.23M	533.92M	533.65M
	Net Debt
523.85M	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: 5.15
• 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 5.15 is below the 20-day moving average (MA) of 5.53, below the 50-day MA of 5.50, and below the 200-day MA of 5.75, indicating a bearish trend. The MACD of -0.17 indicates Positive momentum. The RSI at 45.06 is Neutral, neither overbought nor oversold. The STOCH value of 32.64 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	$9.68B	16.10	25.19%	0.91%	20.35%	20.44%
CDE	74 Outperform	$3.39B	37.87	6.44%	―	41.79%	―
DRD	72 Outperform	$1.29B	13.36	24.89%	1.41%	22.63%	28.96%
HL	59 Neutral	$3.12B	43.11	3.49%	0.76%	41.04%	―
Sector *	49 Neutral	$1.95B	-1.21	-21.28%	3.72%	1.18%	-30.47%
SBSW	47 Neutral	$3.43B	―	-15.89%	―	-0.71%	80.26%
PZG	45 Neutral	$31.74M	―	-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.