HL Stock Surges 66.3% in 3 Months: Should Investors Ride the Rally?

Core Insights - Hecla Mining Company's shares have increased by 66.3% over the past three months, outperforming the industry and the S&P 500, which returned 40.5% and 4.1% respectively [1] - The company's stock closed at $21.37, nearing its 52-week high of $22.28, and significantly above its 52-week low of $4.46, indicating strong upward momentum [4] Performance Metrics - In Q3 2025, Hecla Mining produced 4.6 million ounces of silver, a 1.5% increase from the previous quarter, and reported revenues of $409.5 million, up 35% sequentially due to higher metal prices and increased sales volumes [9] - The Greens Creek mine was a key contributor, producing 2.3 million ounces of silver and 15,600 ounces of gold during the same quarter [10] - The company generated approximately $90 million in free cash flow and reduced net leverage from 0.7x to 0.3x by the end of Q3 2025 [14] Operational Developments - The Lucky Friday project produced 1.3 million ounces of silver, benefiting from higher milled grades and stable operations, with a surface cooling project expected to enhance access to deeper ore by 2026 [11] - The Keno Hill project showed a 20% increase in silver production to 898,328 ounces, supported by improved power reliability and higher milling rates [12] - Hecla Mining's Polaris Exploration Project has received approval to begin exploration activities in 2026, and early drilling at the Midas Project has shown promising results [13] Financial Health - The company reported an increase in all-in-sustaining costs (AISC) per ounce to $11.01, up from $5.19 in the previous quarter, due to higher labor costs and increased capital spending [15] - Hecla Mining is trading at a trailing price-to-earnings ratio of 36.85X, compared to the industry average of 18.34X, with peers Pan American Silver and Avino Silver at 14.66X and 21.52X respectively [20] Future Outlook - The steady advancement of core operations and exploration projects positions Hecla Mining for sustained growth, despite facing near-term challenges such as rising operating costs [21] - The Zacks Consensus Estimate for the company's bottom line for 2025 has increased by 5% in the past 60 days, indicating positive market sentiment [18]