Hecla Mining Company
Q4 2024 Earnings
Market Reaction
S&P 500 over the same 30 days: −6.98%.
Did HL Beat Earnings? Q4 2024 Results
Hecla Mining delivered a mixed fourth quarter, posting earnings of $0.02 per share against a consensus estimate of $0.05, a miss of 61.24%, even as revenue came in at $249.66 million, beating estimates by 4.18% and surging 55.4% year over year. The earnings shortfall reflected the uneven contribution from Keno Hill, where power curtailments by Yukon Energy Corporation disrupted operations late in the quarter and a non-cash write-down of $14.57 million tied to a terminated remote vein mine technology program weighed on the bottom line. Still, the broader 2024 story was one of operational recovery and record revenue of $929.92 million for the full year, driven by higher realized silver, gold, and zinc prices alongside Lucky Friday's return to full production after its fire-related suspension in 2023. Looking ahead, Hecla guides 2025 silver production at 15.5 to 17.0 million ounces and gold at 120 to 130 thousand ounces, with capital expenditures of $222 to $242 million, while Keno Hill growth remains on hold until power and permitting issues clear, with a recovery expected in 2026.
- Higher realized prices for silver, gold, and zinc drove revenue growth
- Lucky Friday resumption of full operations in January 2024 after August 2023 fire suspension
- Greens Creek generated $186.5 million in operating cash flow and $146.7 million in free cash flow
- Lucky Friday set multiple production records including highest tons mined in 80-year history
- Keno Hill silver production increased 85% over prior year to 2.8 million ounces
- $50 million Lucky Friday insurance proceeds collected
“In balancing our proud heritage with our refocused forward-looking vision, we are implementing a strategic shift that emphasizes sustainable profitable growth and operational excellence while continuing to focus on industry leading safety standards. Our renewed focus on optimizing cash flow generation and return on capital investment will drive shareholder value, supported by four key pillars: stakeholder relationship management, capital discipline, technical innovation, and environmental stewardship. As part of this commitment to disciplined capital allocation, we have streamlined our dividend policy to eliminate the silver-linked component, enabling us to pursue significant growth opportunities, particularly at Keno Hill.”
Hecla Mining CEO, on the earnings call
Forward Guidance & Outlook
For 2025, Hecla expects consolidated silver production of 15.5-17.0 million ounces (in line with 2024) and gold production of 120-130 thousand ounces (lower due to Casa Berardi's transition to surface-only operations). Consolidated capital expenditures are projected at $222-$242 million, increasing over 2024 due to investment at Greens Creek (DSTF expansion) and Lucky Friday (surface cooling project). Exploration and pre-development spending is expected at $28 million. Keno Hill faces power curtailment disruptions expected through H1 2025 and permitting challenges from the Victoria Gold Eagle Mine incident; production growth is expected to resume in 2026. Casa Berardi is transitioning to a surface-only operation by mid-2025, with free cash flow generation expected in H2 2025 as the strip ratio declines. The company continues to evaluate strategic alternatives for Casa Berardi given an expected production gap from 2027 to 2032 or later. Silver market conditions are favorable with a fifth consecutive deficit year driven by industrial demand and safe-haven investment.
HL YoY Financials
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Figures from SEC filings and company reports. Not investment advice.