Group 1 - The article does not provide any specific investment recommendations or advice regarding securities transactions [2][3] - It emphasizes that past performance is not indicative of future results, highlighting the inherent risks in investment decisions [3] - The content is intended for informational purposes only and does not constitute an offer to buy or sell securities [2][3] Group 2 - The article mentions the importance of position sizing in the volatile precious metals sector, suggesting that investments in small-cap precious metals stocks should be limited to 5% or less of an investor's portfolio [2]

Group 1 - Gold mining stocks are currently experiencing high demand due to economic uncertainty, inflation fears, and potential tariff wars, making them a popular choice for investors seeking safety [1] - The article emphasizes that gold miners are a classic investment option during times of economic instability, highlighting their traditional role as a flight-to-safety asset [1] Group 2 - The author has extensive experience in investment analysis, focusing on deep-discount value plays and underappreciated companies, which may indicate a strategic approach to identifying investment opportunities in the gold mining sector [1]

Financial Data and Key Metrics Changes - The company reported record quarterly revenues of $261 million, with a significant increase in silver margins from 54% in 2024 to 65% in Q1 2025 [17][12] - Adjusted EBITDA exceeded $90 million, driven by higher metal prices and solid contributions from all operating mines [12][17] - The net leverage ratio improved from 2.7 times to 1.5 times, with a cash position of approximately $20 million at the end of the quarter [13][14] Business Line Data and Key Metrics Changes - Greens Creek produced 2 million ounces of silver, with a 10% increase in silver grade compared to the previous quarter [18] - Lucky Friday achieved a quarterly milling record of almost 109,000 tons, producing 1.3 million ounces of silver [20] - Keno Hill produced over 770,000 ounces of silver and delivered its first profitable quarter under Hecla's ownership [23][24] Market Data and Key Metrics Changes - 45% of revenue came from silver, 33% from gold, and 22% from base metals, benefiting from improved gold prices [17] - The company maintained its production and capital investment guidance for the year, with adjustments to individual asset cost projections [12] Company Strategy and Development Direction - The company focuses on operational excellence, optimizing its portfolio for maximum returns, and maintaining financial discipline with a structured capital allocation framework [9][10][12] - Commitment to silver market leadership as the largest producer in the U.S. and Canada, with a focus on ESG practices [9][10] - The company is evaluating strategic alternatives for Casa Berardi, including potential sale or joint venture [16][90] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's promising future, emphasizing the importance of operational improvements and disciplined capital allocation [6][10] - The company is prepared for potential impacts from tariffs but has not yet seen significant disruptions in supply chains [35][39] - Future profitability at Keno Hill will depend on achieving higher throughput rates and successful permitting processes [24][55] Other Important Information - The company is investing over $3.3 million in targeted exploration programs in Nevada, focusing on high-grade properties [27] - The Libbey exploration project in Montana has secured a significant milestone for federal permitting [11] Q&A Session Summary Question: Impact of tariffs on operations - Management acknowledged potential minor impacts on consumables but noted proactive measures to stock parts [35][39] Question: Downtime during turbine repairs - The turbine repair is expected to last six days in August, with an estimated impact of 90,000 ounces of silver [43][44] Question: Keno Hill's production capacity - Management indicated that achieving a sustainable mining rate of 600 tons per day will take time and requires further permitting [50][55] Question: Updates on Casa Berardi sale - The company is exploring all strategic alternatives for Casa Berardi and will provide updates in Q2 [90][91] Question: Labor cost increases at Lucky Friday - Labor costs have risen due to increased contractor use and profit-sharing programs linked to strong performance [81][82]

Financial Data and Key Metrics Changes - The company reported record quarterly revenues of $261 million, with a 45% contribution from silver, 33% from gold, and 22% from base metals [18][19] - Adjusted EBITDA exceeded $90 million, driven by higher metal prices and solid contributions from all operating mines [13][18] - The net leverage ratio improved from 2.7 times to 1.5 times, with a cash position of approximately $20 million at the end of the quarter [14][18] Business Line Data and Key Metrics Changes - Greens Creek produced 2 million ounces of silver, with a 10% increase in silver grade, and cash costs were significantly better than annual guidance [19][20] - Lucky Friday achieved a quarterly milling record of almost 109,000 tons, producing 1.3 million ounces of silver, but faced cost pressures with cash costs at $9.37 per ounce [22][23] - Keno Hill produced over 770,000 ounces of silver and delivered its first profitable quarter under Hecla's ownership, with a gross profit of $1 million [24][25] Market Data and Key Metrics Changes - Silver prices increased, leading to improved silver margins from 54% in 2024 to 65% in the current quarter [18] - The company maintained its production and capital investment guidance for the year, with adjustments to individual asset cost projections [13][18] Company Strategy and Development Direction - The company focuses on operational excellence, optimizing its portfolio for maximum returns, and maintaining financial discipline with a structured capital allocation framework [10][11] - Commitment to silver market leadership as the largest producer in the U.S. and Canada, with long-lived mines in top-tier jurisdictions [10][11] - The company is exploring disciplined acquisition strategies aligned with its core strengths [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's promising future, emphasizing the importance of environmental stewardship and community partnerships [7][11] - The strategic review of Casa Berardi is ongoing, with options including outright disposal or joint ventures [17][88] - Management acknowledged challenges in permitting timelines but remains optimistic about the potential for Keno Hill and Nevada assets [50][91] Other Important Information - The company is investing over $3.3 million in a targeted exploration program at its high-grade properties in Nevada [28] - The Libbey exploration project in Montana secured placement on the FAST 41 permitting dashboard, streamlining federal approvals [12] Q&A Session Summary Question: Impact of tariffs on operations - Management noted that while there may be higher costs for consumables like rebar and steel due to tariffs, they have not experienced significant delays in parts availability [35][36][38] Question: Turbine repair downtime at Yukon Energy Corporation - The turbine repair is expected to last six days in August, with an estimated impact of losing 90,000 ounces of silver during that period [43][44] Question: Keno Hill's production capacity and permitting - Management indicated that reaching a sustainable mining rate of 600 tons per day will take several years, with a focus on ramping up production at existing deposits [50][54] Question: Updates on Casa Berardi sale - The company is exploring all strategic alternatives for Casa Berardi, including potential sale or joint ventures, with an update expected in Q2 [88][89] Question: Confidence in cost guidance revisions - Management expressed confidence in the revised cost guidance, noting that profit-sharing could lead to lower costs if metal prices decline [100][101]

Financial Data and Key Metrics Changes - The company reported record quarterly revenues of $261 million, with adjusted EBITDA exceeding $90 million, driven by higher metal prices and solid contributions from all operating mines [12][17] - The net leverage ratio improved from 2.7 times to 1.5 times, and the cash position improved to approximately $20 million [13][14] - Silver margins increased from 54% in 2024 to 65% in the current quarter [17] Business Line Data and Key Metrics Changes - Greens Creek produced 2 million ounces of silver, with a 10% increase in silver grade, and cash costs were significantly better than annual guidance [18] - Lucky Friday achieved a quarterly milling record of almost 109,000 tons, producing 1.3 million ounces of silver, but faced cost pressures with cash costs at $9.37 per ounce [20] - Keno Hill produced over 770,000 ounces of silver and delivered its first profitable quarter under Hecla's ownership [22] Market Data and Key Metrics Changes - 45% of revenue came from silver, 33% from gold, and 22% from base metals, benefiting from improved gold prices [17] - The company remains committed to silver market leadership as the largest producer in the U.S. and Canada [9] Company Strategy and Development Direction - The company’s strategy is built on four pillars: operational excellence, portfolio optimization, financial discipline, and silver market leadership [6][8] - A disciplined acquisition strategy is being developed, focusing on maintaining a strong silver revenue mix while considering gold opportunities [11][12] - The company is committed to environmental stewardship and community partnerships, ensuring leadership in ESG practices [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's promising future, emphasizing the importance of operational excellence and cost control [6][10] - The company is focused on generating strong free cash flow while deleveraging and enhancing financial flexibility [29] - There are ongoing strategic reviews for Casa Berardi, with potential options including outright disposal or joint ventures [15][90] Other Important Information - The company is investing over $3.3 million in a targeted exploration program in Nevada, focusing on high-grade properties [27] - The Libbey exploration project has secured a significant milestone for federal permitting, which can streamline approvals [11] Q&A Session Summary Question: Impact of tariffs on operations - Management noted that while there may be higher costs for materials like rebar and steel due to tariffs, they have not experienced significant delays in parts availability [34][39] Question: Turbine repair downtime at Yukon Energy Corporation - The turbine repair is expected to last six days in August, with an estimated impact of losing 90,000 ounces of silver during that period [44][45] Question: Keno Hill's production capacity and permitting - Management indicated that achieving a sustainable mining rate of 600 tons per day will take time and is contingent on obtaining necessary permits [49][102] Question: Updates on Casa Berardi's strategic review - The company is exploring various strategic alternatives for Casa Berardi, including potential sales or joint ventures, with an update expected in Q2 [90][95] Question: Labor cost increases at Lucky Friday - Labor costs have risen due to increased use of contractors and profit-sharing programs linked to strong performance [80][82]

Hecla Mining (HL) came out with quarterly earnings of $0.04 per share, beating the Zacks Consensus Estimate of $0.03 per share. This compares to earnings of $0.01 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 33.33%. A quarter ago, it was expected that this precious metals company would post earnings of $0.04 per share when it actually produced earnings of $0.04, delivering no surprise.Over the last four quarters, the compan ...

Financial Performance - Hecla Mining Company reported sales of $261,339,000 for the three months ended March 31, 2025, a 38% increase from $189,528,000 in the same period of 2024[10]. - Gross profit for the quarter was $74,004,000, compared to $19,160,000 in the prior year, reflecting a significant improvement in profitability[10]. - Net income applicable to common stockholders was $28,734,000, a turnaround from a net loss of $5,891,000 in the same quarter of 2024[10]. - The company reported a comprehensive income of $31,306,000 for the quarter, compared to a comprehensive loss of $11,156,000 in the same period last year[10]. - For the three months ended March 31, 2025, total metal sales reached $254.251 million, a significant increase from $185.081 million in the same period of 2024, representing a growth of approximately 37.4%[28]. - The company reported a net income of $28.872 million for Q1 2025, compared to a net loss of $5.753 million in Q1 2024, indicating a turnaround in financial performance[17]. - Total consolidated sales for Q1 2025 were $261.339 million, compared to $189.528 million in Q1 2024, representing an increase of about 37.9%[28]. - The company’s operating income for Q1 2025 was $52.355 million, a significant increase from an operating income of $5.064 million in Q1 2024, highlighting improved operational efficiency[23][24]. - Basic earnings per common share improved to $0.05 for the three months ended March 31, 2025, compared to a loss of $0.01 per share in the prior year[38]. Cash Flow and Liquidity - The company generated $35,738,000 in net cash from operating activities, up from $17,080,000 in the previous year[12]. - Cash and cash equivalents decreased to $23,668,000 from $80,169,000 year-over-year, indicating a tighter liquidity position[12]. - The company declared a quarterly dividend of $0.00375 per common share during the three months ended March 31, 2025[43]. - The company had net borrowings of $20.0 million on its revolving credit facility, resulting in $43.0 million outstanding at an interest rate of 6.7% as of March 31, 2025[175]. - As of March 31, 2025, the company had $23.7 million in cash and cash equivalents, with $43.0 million drawn on its $225 million credit facility[162]. Capital Expenditures and Investments - Hecla Mining Company incurred $54,095,000 in capital expenditures for property, plant, and mine development during the quarter[12]. - Capital additions for the three months ended March 31, 2025, totaled $54.095 million, compared to $47.589 million in the same period of 2024, indicating ongoing investment in operations[23][24]. - The company estimates exploration and pre-development expenditures will total approximately $28.0 million in 2025, with $4.5 million already incurred as of March 31, 2025[168]. - Capital expenditures for 2025 are estimated to be between $222 million and $242 million, with $54.1 million already incurred as of March 31, 2025[168]. Debt and Obligations - Long-term debt as of March 31, 2025, was $515,412 thousand, compared to $495,184 thousand as of December 31, 2024, reflecting an increase of approximately 4.1%[45]. - The total debt as of March 31, 2025, was $549,024 thousand, an increase from $528,801 thousand as of December 31, 2024[46]. - Total contractual cash obligations amount to $730.7 million as of March 31, 2025, with significant obligations due in the next 1-3 years[176]. - The company anticipates incurring future expenditures related to mine closure and environmental obligations totaling $126.1 million over the next 30 years[177]. Production and Sales - Hecla Mining Company produced 4.1 million ounces of silver, with increased production at Lucky Friday and Keno Hill offsetting decreases at Greens Creek[100]. - Silver sales for Q1 2025 amounted to $118.153 million, up from $86.233 million in Q1 2024, marking a year-over-year increase of approximately 37%[28]. - Sales for the Greens Creek segment rose to $118.1 million in Q1 2025, up from $97.3 million in Q1 2024[112]. - Keno Hill recorded sales of $16.9 million for the three months ended March 31, 2025, compared to $10.8 million in the same period of 2024, representing a 56.5% increase attributed to higher realized sales prices and volumes[130]. - Casa Berardi's sales increased to $56.0 million in Q1 2025 from $41.6 million in Q1 2024, with a gross profit of $5.3 million compared to a gross loss of $16.7 million in the prior year[138][140]. Cost Structure and Efficiency - The cost of sales and other direct production costs for Q1 2025 was $187.335 million, compared to $170.368 million in Q1 2024, reflecting increased operational costs associated with higher sales[23][24]. - Cash Cost per ounce of silver was reported at $1.29, while All-In Sustaining Cost (AISC) was $11.91 for the three months ended March 31, 2025[104]. - Cash Cost, After By-product Credits, per Silver Ounce decreased to $(4.08) in Q1 2025 from $3.45 in Q1 2024, primarily due to increased by-product credits[117]. - AISC, After By-product Credits, per Silver Ounce improved to $(0.03) in Q1 2025 compared to $7.16 in Q1 2024, benefiting from lower sustaining capital expenditures[117]. - By-product credits for the total silver properties amount to $86.164 million, significantly impacting the overall cost structure[157]. Market and Economic Factors - The company’s financial results are influenced by fluctuations in market prices for silver, gold, zinc, lead, and copper, with potential impacts from tariffs and trade restraints[96]. - The company faces potential adverse impacts from tariffs, particularly a 10% baseline tariff and 125% tariffs on products sold to China, which could materially affect its financial condition and results of operations[200]. - The company has significant sales of products shipped to Asia, indicating reliance on maritime transport operators[201]. Internal Controls and Compliance - The company evaluated the effectiveness of its disclosure controls and procedures as of March 31, 2025, concluding they were effective[194]. - The company’s internal control systems are designed to provide reasonable assurance regarding financial statement preparation, despite inherent limitations[195]. - No changes in internal control over financial reporting materially affected the company during the three months ended March 31, 2025[194].

Financial Performance - Generated record sales of $261.3 million, a 5% increase over the prior quarter[5] - Reported net income applicable to common stockholders of $28.7 million, or $0.05 per share, compared to $11.8 million in the prior quarter[12] - Achieved record Adjusted EBITDA of $90.8 million during the quarter, a 5% increase over the prior quarter, with a net leverage ratio improved to 1.5x from 1.6x[16] - Free cash flow was negative $18.4 million, compared to positive $6.7 million in the prior quarter, primarily due to lower cash flow from operations[20] - Sales for the three months ended March 31, 2025, increased to $261,339,000 from $249,655,000 in the previous quarter, representing a growth of approximately 4.3%[97] - Gross profit rose to $74,004,000, compared to $68,334,000 in the prior quarter, reflecting an increase of about 8.9%[97] - Net income applicable to common stockholders for the quarter was $28,734,000, significantly up from $11,786,000 in the previous quarter, marking an increase of approximately 143%[97] - Basic income per common share increased to $0.05 from $0.02, indicating a 150% rise[97] Production and Sales - Produced 4.1 million ounces of silver and 34,232 ounces of gold, with silver production at Keno Hill increasing by 23% over the fourth quarter of 2024[5] - Greens Creek produced 2.0 million ounces of silver, a 5% increase from the prior quarter, due to a 10% increase in silver grade milled[23] - Lucky Friday produced 1.3 million ounces of silver, flat compared to the prior quarter, with lead and zinc production declining by 2% and 3% respectively[32] - Keno Hill produced 772,430 ounces of silver, a 23% increase over the prior quarter, with mill throughput averaging 305 tons per day[39] - Casa Berardi produced 20,473 ounces of gold, a 2% decrease over the prior quarter, due to lower underground grades and total milled tons[48] - Total ounces produced in the three months ended March 31, 2025, was 2.0 million, compared to 1.33 million in the same period of 2024, representing a 50% increase[109] Costs and Expenses - Consolidated silver total cost of sales was $129.6 million, an increase of 5% from the prior quarter, primarily due to higher production costs[13] - Cash costs and AISC per silver ounce were $1.29 and $11.91, respectively, higher than the prior quarter due to increased production costs[14] - Total cost of sales for Greens Creek was $69.6 million, a 3% increase over the prior quarter, primarily due to higher labor and fuel costs[25] - Total cost of sales for Lucky Friday was $44.0 million, up 10% over the prior quarter, driven by higher depreciation and labor costs[34] - Total cost of sales for Casa Berardi was $50.7 million, a 2% decrease over the prior quarter, with cash costs per gold ounce at $2,195 and AISC at $2,303[50] - Total cost of sales for the three months ended March 31, 2025, was $223,610,000 compared to $244,140,000 for the three months ended December 31, 2024, representing a decrease of approximately 8.4%[111] Guidance and Future Outlook - The company plans to strengthen the balance sheet in 2025 by targeting high-risk adjusted return projects and increasing free cash flow generation[8] - Production guidance for 2025 at Greens Creek is maintained at 8.1-8.8 million ounces of silver and 44.0-48.0 thousand ounces of gold[29] - Lucky Friday maintains silver production guidance of 4.7-5.1 million ounces, with cost of sales revised up to $165 million from $135 million[36] - Casa Berardi production guidance for 2025 remains at 76.0-82.0 koz of gold, with cost of sales revised up to $180 million from $165.5 million[52] - Consolidated silver production is expected to be 15.5-17.0 million ounces and gold production is expected to be 120-130 koz in 2025[69] - Future guidance indicates an expected increase in production capacity by 15% in the next fiscal year, driven by new technology implementations[109] Strategic Initiatives - The company plans to expand its market presence through strategic acquisitions and new product developments in the upcoming quarters[109] - The company is considering strategic alternatives for Casa Berardi, including potential disposal or joint venturing[54] - The company is focusing on sustainability initiatives, with a projected increase in reclamation costs to $3.1 million, up from $2.1 million[109] - The company is actively exploring the Gallagher Definition zone, with drillhole GC6604 yielding 56.8 oz/ton of silver over a true width of 4.4 feet[128] - The company remains committed to advancing its exploration strategy to unlock additional value from its assets[128] Exploration and Development - Exploration and pre-development expenses totaled $4.5 million in the first quarter, with increased spending anticipated in the second and third quarters[56] - The Libby Exploration Project has inferred resources of 183.3 million ounces of silver and 759 thousand tons of copper, currently under environmental assessment review[65] - The company is focusing on expanding its exploration activities in the Yukon region, particularly in the Keno Hill area[126] - The drilling results from the Greens Creek project indicate significant silver and gold grades, with a notable sample showing 278.0 oz/ton of silver over a true width of 2.8 feet[128] Cash Flow and Capital Expenditures - Cash flow from operations for Keno Hill was negative $9.7 million, reflecting unfavorable working capital changes[42] - Cash flow from operations decreased by 20% to $9.9 million due to unfavorable working capital changes[51] - The company reported a decrease in accounts payable and other current accrued liabilities to $114,933,000 from $127,988,000, a reduction of about 10%[101] - The company incurred $54,095,000 in additions to properties, plants, and equipment in Q1 2025[123] - Cash provided by operating activities for Q1 2025 was $1,060,150,000, a decrease from $317,861,000 in Q1 2024[124]

Company Overview - Hecla Mining (HL) shares increased by 12.1% to $5.28 in the last trading session, following a significant volume of shares traded, contrasting with a 13.3% loss over the past four weeks [1] - The company is expected to report quarterly earnings of $0.04 per share, reflecting a year-over-year increase of 300%, with revenues projected at $236.27 million, up 24.7% from the previous year [2] Earnings Estimates and Trends - The consensus EPS estimate for Hecla Mining has been revised 30% lower in the last 30 days, indicating a negative trend in earnings estimate revisions, which typically does not lead to price appreciation [3] - Empirical research suggests that trends in earnings estimate revisions are closely linked to near-term stock price movements, highlighting the importance of monitoring these changes [2][3] Industry Context - Hecla Mining is part of the Zacks Mining - Silver industry, where Buenaventura (BVN) also operates, having closed the last trading session up 7.6% at $13.92, but with a -5.1% return over the past month [3] - Buenaventura's consensus EPS estimate remains unchanged at $0.36, representing a 50% increase compared to the previous year, and it currently holds a Zacks Rank of 4 (Sell) [4]

Core Viewpoint - Hecla Mining Company reported improved financial performance in Q4 2024, with adjusted earnings per share of 4 cents, aligning with estimates, and a significant increase in revenues driven by higher gold and silver prices [1][2][3]. Financial Performance - Adjusted earnings per share for 2024 were 11 cents, surpassing the Zacks Consensus Estimate of 8 cents, compared to an adjusted loss of 1 cent in 2023 [6]. - Total revenues for 2024 reached a record $930 million, reflecting a year-over-year growth of 29.1%, exceeding the Zacks Consensus Estimate of $919 million [6]. - In Q4 2024, revenues increased by 55.4% year over year to $250 million, beating the Zacks Consensus Estimate of $229 million [3]. Production and Sales - Silver production in Q4 2024 was 3.87 million ounces, up 6.3% sequentially and 32% year over year [5]. - Gold production for Q4 2024 was 35,727 ounces, a 10.7% increase from the previous quarter but down 3.9% from the prior-year quarter [5]. - The realized gold price rose 10.7% year over year to $2,656 per ounce, while the realized silver price increased by 28.6% to $30.19 per ounce [3]. Cost and Profitability - Total cost of sales in Q4 2024 increased by 17.9% year over year to $181 million, while gross profit improved significantly to $68.3 million from $7 million in the prior-year quarter [4]. - The gross margin for Q4 2024 was 27.4%, compared to 4.3% in the prior-year quarter [4]. - Adjusted EBITDA for Q4 2024 was $86.6 million, up from $33 million in Q4 2023 [4]. Cash Flow and Financial Position - The company ended 2024 with $26.8 million in cash and cash equivalents, a decrease from $106 million at the end of 2023 [7]. - Cash flow from operating activities was $218.3 million in 2024, compared to an inflow of $75 million in the prior year [7]. Future Guidance - Hecla Mining expects consolidated silver production of 15.5-17.0 million ounces and gold production of 120-130 thousand ounces in 2025 [8]. Stock Performance - Hecla Mining's shares have increased by 51.7% over the past year, while the industry has grown by 76.5% [10].