Hecla Mining Company
Q1 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +5.15%.
Did HL Beat Earnings? Q1 2025 Results
Hecla Mining delivered a clean beat to open 2025, with first-quarter revenue of $261.34 million clearing the $238.66 million consensus by 9.50% and climbing 37.9% from a year ago, while earnings of $0.05 per share edged past the $0.05 estimate. The primary engine behind the quarter was a combination of elevated precious metals prices and broad operational improvement across Hecla's portfolio, with Adjusted EBITDA reaching $90.79 million, and the company swinging to net income of $28.73 million compared to a loss of $5.89 million in the year-ago period. Keno Hill contributed meaningfully for the first time, posting its first profitable quarter under Hecla's ownership, though management was candid that sustainable profitability there requires throughput of 500 to 600 tons per day. Looking ahead, Hecla maintained its 2025 silver production guidance of 15.5 to 17.0 million ounces, while revising Lucky Friday cost estimates higher due to labor and contractor pressures, a consideration that some analysts have flagged alongside the company's existing debt load.
- Higher realized precious metals prices drove record quarterly sales
- Greens Creek benefited from 10% increase in silver grade milled and higher realized gold prices for by-product credits
- Lucky Friday set new quarterly milling record of 108,745 tons
- Keno Hill silver production increased 23% sequentially to 772,430 ounces due to higher mill throughput
- Keno Hill posted first profitable quarter under Hecla ownership with $1 million gross profit
- Lower ramp-up and suspension costs decreased by $6.3 million as Keno Hill generated gross profit
“This quarter demonstrates the strength and growth potential of our business, with record sales of $261.3 million representing a 5% increase over the prior quarter. With record Adjusted EBITDA of $90.8 million this quarter and $357.1 million over the past year, we have improved our net leverage ratio to 1.5x, reinforcing our solid financial foundation.”
Hecla Mining CEO, on the earnings call
Forward Guidance & Outlook
Hecla reiterated 2025 consolidated silver production guidance of 15.5-17.0 million ounces and gold production of 120-130 thousand ounces. Capital investment guidance is unchanged at $222-$242 million, and exploration spending is expected at $28 million. Cost guidance was revised: Greens Creek cash cost lowered to $0.25-$0.75/oz from $2.00-$2.50/oz and AISC lowered to $6.50-$7.25/oz from $8.75-$9.50/oz due to higher by-product credits. Lucky Friday cost of sales guidance raised to $165 million from $135 million, with cash cost guidance increased to $7.00-$7.50/oz from $4.25-$4.75/oz and AISC to $20.00-$21.50/oz from $16.50-$18.00/oz due to higher labor, insurance, and contractor costs. Casa Berardi cost of sales guidance raised to $180 million from $165.5 million. Consolidated silver AISC guidance is unchanged at $15.75-$17.00/oz. Casa Berardi costs expected to improve in H2 2025 as pit strip ratio declines. Strategic alternatives for Casa Berardi continue to be evaluated. Keno Hill targets 440 tpd to generate positive free cash flow at current prices; 500-600 tpd needed for sustainable profitability at lower long-range prices.
HL YoY Financials
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Figures from SEC filings and company reports. Not investment advice.