HL Stock Surges 62% in 3 Months: Should You Buy the Stock Now?

Core Insights - Hecla Mining Company's (HL) shares have increased by 62% over the past three months, underperforming the industry but outperforming the S&P 500 [1] - The company's peers, Avino Silver & Gold Mines Ltd. (ASM) and First Majestic Silver Corp. (AG), have seen gains of 134.4% and 98.9%, respectively, during the same period [1] Stock Performance - HL closed at $23.94, below its 52-week high of $34.17 and significantly above its 52-week low of $4.46 [4] - The stock is trading above both its 50-day and 200-day moving averages, indicating strong upward momentum [4] Production and Financial Performance - In 2025, HL's silver output increased by 5% to 17.0 million ounces, driven by core assets like Greens Creek, Lucky Friday, and Keno Hill [9][10] - The company reported Q3 2025 revenues of $409.5 million, a 35% increase sequentially, supported by higher metal prices and increased sales volumes [15] - Operating cash flow for Q3 was $148 million, with free cash flow around $90 million, contributing to a reduction in net leverage from 0.7x to 0.3x [15] Cost and Operational Challenges - Hecla Mining reported an increase in all-in-sustaining costs (AISC) for silver to $11.01 per ounce in Q3, up from $5.19 in the previous quarter, due to higher labor costs and increased capital spending [16] - The company operates in a competitive silver mining market, facing challenges from major players like Avino Silver and First Majestic [17] Strategic Moves - In January 2026, HL agreed to sell the Casa Berardi operation for up to $593 million, aiming to focus on premier silver assets and strengthen its financial position [13] - The Polaris Exploration Project has received approval for exploration activities in 2026, and early drilling at the Midas Project has shown promising results [14] Valuation and Market Position - Hecla Mining's trailing price-to-earnings ratio is 37.98X, compared to the industry average of 19.84X, with peers trading at 30.18X and 61.31X [21] - The Zacks Consensus Estimate for HL's bottom line for 2026 has increased by 56.1% in the past 60 days, indicating positive market sentiment [19] Conclusion - Strong performance from key mines and ongoing exploration projects position Hecla Mining for sustained growth, despite rising costs [22] - The company's improved liquidity and balance sheet suggest it may be an attractive option for potential investors [22]