Core Viewpoint - Hecla Mining (HL) shows a significantly improving earnings outlook, making it an attractive option for investors as analysts continue to raise earnings estimates for the company [1][3]. Earnings Estimate Revisions - The trend in estimate revisions reflects growing analyst optimism regarding Hecla Mining's earnings prospects, which is expected to positively influence its stock price [2]. - For the current quarter, Hecla Mining is projected to earn $0.13 per share, representing a 225.0% increase from the previous year [5]. - The Zacks Consensus Estimate for the current quarter has risen by 8.33% over the last 30 days, with no negative revisions [5]. - For the full year, the earnings estimate stands at $0.38 per share, indicating a 245.5% increase from the prior year [6]. - The consensus estimate for the current year has increased by 14.14% due to two upward revisions and no negative changes [7]. Zacks Rank and Performance - Hecla Mining has achieved a Zacks Rank 2 (Buy), reflecting strong agreement among analysts in raising earnings estimates [8]. - Stocks with Zacks Rank 1 (Strong Buy) and 2 (Buy) have historically outperformed the S&P 500 [8]. - The stock has appreciated by 11.4% over the past four weeks due to favorable estimate revisions, suggesting potential for further upside [9].

Industry Overview - The Zacks Mining - Silver industry is experiencing a promising outlook due to a strong rally in silver prices, with global industrial demand projected at approximately 1.15 billion ounces [1][4] - The industry comprises companies involved in the exploration, development, and production of silver, with only 20% of silver sourced from mining activities where it is the primary revenue source [3] - The industry is currently facing a persistent demand-supply gap, with projected demand exceeding supply, leading to a fifth consecutive year of deficit [6] Demand Drivers - Industrial demand for silver is expected to dominate, accounting for around 59% of total demand, driven by the solar energy sector and advancements in technology [4] - Silver's inclusion in the critical minerals list by the U.S. Geological Survey enhances its strategic importance, potentially leading to increased investment and policy support [4] Price Trends - Silver prices have surged approximately 74.5% this year, reaching a peak of $54.48 on October 17, 2025, driven by economic uncertainties and rising investor demand [5] - Current prices are around $50, supported by expectations of a Federal Reserve rate cut amid signs of economic weakness [5] Company Performance - Fresnillo (FNLPF) has a strong project pipeline, with a targeted silver equivalent production of 91-102 million ounces for 2025 and a recent acquisition of Probe Gold [17][18] - Pan American Silver (PAAS) has rationalized its portfolio post-Yamana acquisition and is expected to increase silver production by approximately 35% annually through the Juanicipio mine [22][23] - Hecla Mining (HL) reported record revenues of $410 million and a 95.8% stock appreciation in the last three months, with a focus on operational excellence and debt reduction [25][27] - First Majestic Silver (AG) achieved a 39% year-over-year increase in silver-equivalent production, bolstered by the acquisition of Gatos Silver, leading to record revenues of $285.1 million [29][30] Market Performance - The Mining-Silver Industry has outperformed the Basic Materials sector and the S&P 500 composite, with a collective gain of 79.3% over the past year compared to 8.5% and 14.4% respectively [10] - The industry currently trades at a trailing 12-month EV/EBITDA ratio of 14.66X, which is lower than the S&P 500's 18.24X, indicating potential value [13]

Core Viewpoint - Hecla Mining Company (NYSE:HL) has demonstrated exceptional financial performance in the third quarter, leading to a significant increase in stock price and investor interest [1][2]. Financial Performance - Hecla Mining's net income attributable to shareholders surged by 6,109 percent to $100.59 million compared to $1.62 million in the same quarter last year [2]. - Sales increased by 67 percent, reaching $409 million, up from $245 million year-on-year [2]. - Adjusted EBITDA rose by 120 percent to $195.69 million from $88.86 million [3]. Stock Performance - During intra-day trading, Hecla Mining's stock price peaked at $15.42, just 2 cents below its 52-week high, before closing at $13.55, an increase of 11.89 percent [2]. Operational Highlights - All four producing assets contributed to positive free cash flow for the second consecutive quarter, indicating strong operational performance [4]. - Greens Creek exceeded expectations, Keno Hill achieved three consecutive quarters of profitability, Lucky Friday maintained consistent production, and Casa Berardi showed improving cost trajectories [4]. Production Outlook - For full-year 2025, Hecla Mining raised its production outlook for silver to 16.2 to 17 million ounces, up from the previous lower-end guidance of 15.5 million ounces [5]. - Gold production outlook was also increased to 145,000 to 150,000 troy ounces from the previous range of 126,000 to 137,000 troy ounces [5].

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Financial Data and Key Metrics Changes - Hecla Mining Company reported record revenues of $410 million for Q3 2025, with net income of $101 million and adjusted EBITDA of $196 million, indicating strong operational performance [5][6][8] - The net leverage ratio improved significantly from 1.8 times last year to 0.3 times in Q3 2025, representing an 83% reduction [6][8] - Operating cash flow generated was $148 million, with consolidated free cash flow at $90 million [6][9] Business Line Data and Key Metrics Changes - Silver production reached 4.6 million ounces, a 2% increase from the previous quarter, with cash costs at negative $2.03 per ounce and all-in sustaining costs at $11.01 [7][8] - Greens Creek produced 2.3 million ounces of silver, with sales of $178 million, up 46% from the last quarter [14] - Lucky Friday's silver production was 1.3 million ounces, with free cash flow nearly tripling to $13.5 million [15] - Keno Hill achieved silver production of nearly 900,000 ounces, generating $8.3 million in free cash flow [16] - Casa Berardi produced 25,000 ounces of gold, with cash costs of $1,582 per ounce [17] Market Data and Key Metrics Changes - Silver revenue accounted for 48% of total mine site revenues, followed by gold at 37% [8] - Silver margins remained robust at $31.57 per ounce, representing 74% of the realized price of silver [8] Company Strategy and Development Direction - The company is focused on long-term value creation, operational execution, and maintaining financial flexibility to pursue growth opportunities [19][48] - A disciplined capital allocation framework prioritizes safety, sustaining capital, growth capital, exploration, deleveraging, and shareholder returns [10][12] - The company plans to increase exploration investments, particularly in Nevada, targeting 2%-5% of revenues for exploration in 2026 [11][18] Management's Comments on Operating Environment and Future Outlook - Management highlighted the ongoing supply shortages in silver and the favorable market conditions expected to support prices for years [5][6] - The company expressed confidence in its ability to generate substantial free cash flow and maintain operational momentum across all assets [6][48] - The outlook for Keno Hill includes plans for commercial production around 2027, contingent on regulatory approvals [38] Other Important Information - The company has successfully de-risked its balance sheet, eliminating over $15 million in annual interest expense [6][8] - All four producing assets generated positive free cash flow for the second consecutive quarter, demonstrating operational strength [6][9] Q&A Session Summary Question: Inflationary factors affecting asset base - Management noted that labor competition and tariff costs are the main inflationary pressures, but overall impacts have been muted [24][25] Question: Exploration spending and labor costs - Drilling costs have increased due to labor, but assay turnaround times have remained normal [27] Question: Exploration and project updates - The company plans to significantly increase its exploration budget in Nevada and reinitiate dormant projects [32][33] Question: Guidance and production expectations - Management explained that production profiles can vary, and guidance reflects expected performance based on historical data [41][42] Question: Strong price realizations in the quarter - The strong price realizations were attributed to timing of shipments and the use of collars for provisional hedging [43][44]

Largest Silver Producer in U.S. and Canada THIRD QUARTER 2025 Conference Call RESPONSIBLE. SAFE. INNOVATIVE. Cautionary Statements HECLA MINING COMPANY NYSE: HL Cautionary Statement Regarding Forward-Looking Statements, Including 2025 Outlook This presentation and the related news release and conference call contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended t ...

Core Viewpoint - Hecla Mining reported quarterly earnings of $0.12 per share, exceeding the Zacks Consensus Estimate of $0.11 per share, and showing significant growth from $0.03 per share a year ago, indicating strong performance in the precious metals sector [1][2]. Financial Performance - The company achieved revenues of $409.54 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 29.77% and up from $245.09 million year-over-year [2]. - Over the last four quarters, Hecla Mining has exceeded consensus EPS estimates three times and topped revenue estimates four times [2]. Stock Performance - Hecla Mining shares have increased approximately 143.8% since the beginning of the year, significantly outperforming the S&P 500's gain of 15.1% [3]. - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6]. Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.12 on revenues of $331 million, while for the current fiscal year, the estimate is $0.33 on revenues of $1.15 billion [7]. - The outlook for the Mining - Silver industry is strong, with the sector currently ranking in the top 5% of over 250 Zacks industries, suggesting potential for continued outperformance [8].

Financial Performance and Capital Execution - Hecla Mining Company reported record quarterly revenue of $409.5 million, which is a 35% increase compared to the prior quarter [1] - The company achieved strong profitability with record net income applicable to shareholders [1]

Financial Performance - Sales for Q3 2025 reached $409,542,000, a 67% increase from $245,085,000 in Q3 2024[10] - Gross profit for the nine months ended September 30, 2025, was $373,995,000, compared to $129,876,000 for the same period in 2024, representing a 188% increase[10] - Net income for the nine months ended September 30, 2025, was $187,303,000, significantly up from $23,878,000 in 2024, marking a 684% increase[10] - The company reported a comprehensive income of $96,329,000 for Q3 2025, compared to $4,932,000 in Q3 2024[10] - Hecla Mining Company reported a net income of $100.726 million for the three months ended September 30, 2025, compared to $1.761 million for the same period in 2024, indicating a significant increase in profitability[16] - For the nine months ended September 30, 2025, Hecla Mining reported a net income of $187.303 million, compared to a net income of $23.878 million for the same period in 2024, indicating strong year-over-year growth[19] - For the three months ended September 30, 2025, net income was $100.726 million, compared to $1.761 million for the same period in 2024, representing a significant increase[44] - Net income applicable to common stockholders reached $100.6 million in Q3 2025, a significant increase from $1.6 million in Q3 2024[106] - Net income applicable to common stockholders for the nine months ended September 30, 2025, was $186.9 million, significantly up from $23.5 million in the comparable 2024 period[123] Cash Flow and Liquidity - Cash provided by operating activities for the nine months ended September 30, 2025, was $345,583,000, compared to $150,807,000 in 2024, an increase of 129%[12] - Cash and cash equivalents at the end of Q3 2025 were $135,082,000, compared to $23,457,000 at the end of Q3 2024, indicating a significant increase[12] - As of September 30, 2025, the company had $133.9 million in cash and cash equivalents, with $117.1 million held in U.S. dollars and $16.8 million in foreign currency[206] - The company aims to maintain an acceptable level of debt and sufficient liquidity to fund operations, capital expenditures, and return cash to stockholders[196] Assets and Liabilities - Total assets as of September 30, 2025, amounted to $3,221,842,000, up from $2,981,060,000 at the end of 2024, reflecting an 8% increase[14] - Total liabilities decreased to $772,198,000 as of September 30, 2025, from $941,546,000 at the end of 2024, a reduction of 18%[14] - The company reported total stockholders' equity of $2.449 billion as of September 30, 2025, an increase from $2.310 billion as of July 1, 2025[16] - As of September 30, 2025, the long-term debt stood at $261.8 million, down from $495.2 million as of December 31, 2024[54] Production and Sales - The company’s total metal sales for the three months ended September 30, 2025, were $393.351 million, with significant contributions from its Greens Creek and Lucky Friday segments[24] - Metal sales for the nine months ended September 30, 2025, amounted to $945.033 million, compared to $665.141 million in 2024, reflecting a year-over-year increase of 42%[33] - Hecla Mining Company produced 4.6 million ounces of silver in Q3 2025, a 28% increase from 3.6 million ounces in Q3 2024, and 40,654 ounces of gold, up from 32,280 ounces in the same period[106] - Total metals production for silver increased to 4,590,276 ounces in Q3 2025 from 3,645,004 ounces in Q3 2024, representing a 26% increase[1] - Payable ounces of silver sold increased to 4,463,356 in Q3 2025 from 3,729,782 in Q3 2024, a rise of 20%[1] Capital Expenditures - Capital additions for the three months ended September 30, 2025, totaled $57.905 million, which supports ongoing operational improvements and expansions[24] - The company estimates capital expenditures for 2025 to be between $222 million and $242 million, with $170 million already incurred as of September 30, 2025[203] - Capital expenditures for 2025 amounted to approximately $170.0 million, with significant investments at Greens Creek ($31.3 million), Lucky Friday ($48.3 million), Casa Berardi ($45.1 million), and Keno Hill ($42.2 million)[110] Cost Structure - Cash Cost per ounce of silver for the three months ended September 30, 2025, was $(2.03), compared to $4.46 in the same period of 2024[114] - AISC after by-product credits per silver ounce decreased to $(2.55) for the three months ended September 30, 2025, from $7.04 in the comparable 2024 period[134] - Total cost of sales for the nine months ended September 30, 2025, was $414.1 million, up from $364.2 million in the same period of 2024[114] - Total cost of sales for silver operations was $157,470,000 for the three months ended September 30, 2025[185] - Total cost of sales for gold operations was $71,605,000 for the same period[186] Shareholder Returns - The company declared and paid a quarterly dividend of $0.00375 per common share during each of the first three quarters of 2025[51] - The company declared and paid dividends totaling $2.7 million for the three months ended September 30, 2025, compared to $8.7 million in the same period of 2024[198] - The company has a stock repurchase program authorized for up to 20 million shares, with 934,100 shares purchased at an average price of $3.99 per share as of September 30, 2025[200] Exploration and Development - The Greens Creek operation received a Clean Water Act Section 404 permit for a dry stack tailings expansion project, with work expected to commence in Q4 2025[106] - The Libby Exploration Project in Montana advanced with the U.S. Forest Service issuing a final decision notice, facilitating further exploration efforts[110] - The company is assessing strategic alternatives for Casa Berardi, including potential sale, joint ventures, or extending underground mining operations[162] Environmental and Regulatory - The company has surety bonds totaling $218.8 million in place for future reclamation and closure costs as of September 30, 2025[95] - The company anticipates falling within the scope of Pillar Two rules beginning January 1, 2026, but does not expect a material impact on its financial statements[39]

Financial Performance - Record quarterly revenue of $409.5 million, a 35% increase over the prior quarter[4] - Net income applicable to common stockholders reached $100.6 million, or $0.15 per share, compared to $57.6 million in the prior quarter[14] - Adjusted EBITDA was $195.7 million, a 48% increase over the prior quarter[16] - Cash flow from operations totaled $148 million, with free cash flow of $90 million[2] - Revenue increased by 35% due to higher payable silver sold and increased precious metals and zinc prices[17] - Sales for the third quarter were $178.1 million, a 46% increase over the prior quarter, driven by higher realized prices and concentrate volumes sold[28] - Free cash flow reached $74.5 million, an 8% increase from the prior quarter, supported by a 53% rise in gross profit[29] - The company reported an increase in income and mining tax provision of $22.3 million, reflecting higher taxable income[17] - The company reported a gross profit margin of approximately 44% for the three months ended September 30, 2025, compared to 39.2% in the previous quarter[99] - Net income for the three months ended September 30, 2025, was $100,726,000, a significant increase from $57,705,000 in the previous quarter[101] Production and Costs - Silver production was 4.6 million ounces, a 2% increase compared to the prior quarter[4] - Total cost of sales for silver was $157.5 million, a 24% increase from the prior quarter[14] - Gold cash costs were $1,582 per ounce, with AISC at $1,746 per ounce[16] - Total production cost per ton at Greens Creek was $246.93, with a gross profit of $96.4 million[25] - Cash costs per silver ounce after by-product credits were $9.33, and AISC was $23.30, both increasing over the prior quarter due to higher production costs[35] - Total cost of sales was $81.7 million, up 39% from the prior quarter, primarily due to a 20% increase in concentrate volumes sold[28] - Total cost of sales for the nine months ended September 30, 2025, was $600,913,000, compared to $550,394,000 for the same period in 2024, showing an increase of 9.1%[99] - Total cost of sales for the three months ended September 30, 2025, was $470,000, compared to $600,000 for the same period in 2024, representing a decrease of approximately 21.67%[116] Cash Flow and Liquidity - Cash and cash equivalents at quarter end were $133.9 million, with no draw on the revolving credit facility[16] - Cash provided by operating activities was $148.0 million, nearly flat over the prior quarter, impacted by unfavorable working capital changes of $37.8 million[18] - Free cash flow decreased to $90.1 million from $103.8 million in the prior quarter, primarily due to lower cash flow from operations[19] - Net cash provided by operating activities for the nine months ended September 30, 2025, was $345,583,000, compared to $150,807,000 for the same period in 2024, reflecting a 129% increase[101] - Cash flow from operations improved by 34% to $22.1 million in Q3 2025, supported by higher silver prices and concentrate sales[42] Capital Expenditures and Investments - Capital investment remained flat at $57.9 million, with significant allocations to Lucky Friday ($16.9 million) and Keno Hill ($14.7 million)[19] - Capital investment guidance for sustaining capital was lowered to $45-$47 million, with growth capital guidance reduced to $2-$5 million[29] - The company invested $8.8 million in exploration activities during Q3 2025, focusing on high-impact discovery drilling and resource expansion[58] - Total capital expenditure guidance remains unchanged at $222 to $242 million for 2025[75] Guidance and Future Outlook - Silver production guidance for 2025 at Greens Creek was tightened to 8.4-8.8 million ounces, and gold production guidance was adjusted to 53.0-55.0 thousand ounces[29] - Silver production guidance for 2025 has been tightened to 2.9-3.1 million ounces, up from the previous guidance of 2.7-3.1 million ounces[43] - Gold production guidance for 2025 has been tightened to 92,000-95,000 ounces, up from the previous guidance of 90,000-95,000 ounces[54] - The company expects to maintain its current production levels and operational plans without significant revisions due to external risks[93] - Future guidance indicates a focus on cost reduction strategies and operational efficiencies to improve overall profitability[114] Exploration and Development - Greens Creek received authorization for future expansion activities, with construction anticipated to begin in Q4 2025[9] - The company is focusing on expanding its drilling program to enhance resource definition and increase production potential[135] - The exploration strategy includes targeting high-grade zones to optimize resource extraction and improve overall project economics[135] - The company plans to continue its drilling efforts in the upcoming quarters to further assess the potential of identified zones[135] Shareholder Returns - The Board of Directors declared a quarterly cash dividend of $0.00375 per share, payable on or about December 8, 2025[66] - The adjusted net income applicable to common stockholders is a key performance indicator, excluding certain impacts not reflective of underlying performance[127] - Basic adjusted net income per common stock for Q3 2025 was 0.12 cents, compared to 0.08 cents in Q2 2025[128] Debt and Leverage - Net leverage ratio improved to 0.3x from 0.7x in the prior quarter, reflecting substantial deleveraging[7] - Adjusted EBITDA for Q3 2025 is $195,695, with a total debt of $277,746 and net debt of $143,836, resulting in a net debt to LTM adjusted EBITDA ratio of 0.3[125] - The company incurred $13,405 in interest expenses for Q3 2025, up from $11,099 in Q2 2025[125]