Hecla Mining Company
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +2.86%.
Did HL Beat Earnings? Q2 2025 Results
Hecla Mining delivered a blowout second quarter for 2025, posting adjusted earnings of $0.08 per diluted share against a consensus estimate of $0.05, a beat of 48.70%, while revenue of $304.03 million topped expectations by 17.99% and grew 23.8% year over year. The standout driver was a powerful combination of higher realized precious metals prices and surging production volumes, with silver output up 10% and gold production climbing 34% sequentially to 45,895 ounces, the latter fueled heavily by Greens Creek, which alone generated $122.00 million in sales and $69.02 million in free cash flow. The balance sheet transformation was equally notable; net leverage collapsed to 0.7x from 1.5x in Q1, with cash surging to $296.56 million from just $23.67 million. Looking ahead, Hecla raised full-year gold production guidance to 126-137 koz and meaningfully cut silver all-in sustaining cost guidance to $11.50-$13.50 per ounce, while analysts note that share dilution of roughly 6.5% over the past year warrants monitoring alongside the otherwise compelling operational momentum.
- Higher realized precious metal prices across all metals except lead
- Silver production up 10% and gold production up 34% quarter-over-quarter
- Greens Creek silver and gold grade improvements of 14% and 11% respectively with 8% higher mill throughput
- Casa Berardi gold production up 37% sequentially from planned higher underground and surface ore grades
- Lucky Friday set new quarterly milling record of 114,475 tons, beating prior record by over 5%
- Positive fair value adjustments of $9.6 million from marketable securities and hedges
- Favorable working capital changes of $42.3 million
“Our second quarter results demonstrate exceptional execution across all facets of the business. We generated record sales of $304 million, record free cash flow of $103.8 million, and record Adjusted EBITDA of $132.5 million, while dramatically improving our net leverage to 0.7x. Our mines delivered outstanding operational performance, with silver production up 10% and gold production up 34% quarter-over-quarter, and Lucky Friday achieving a new milling record. By putting $212 million raised through our ATM program toward Note redemption and fully repaying our CAD $50 million IQ notes from free cash flow, we've strengthened our balance sheet, which will free up $17.8 million annually in interest expense going forward, allowing us to refocus those funds towards strengthening our balance sheet while enabling strategic reinvestment into the highest return opportunities across our portfolio. These results reflect our commitment to operational excellence, disciplined capital allocation, and creating long-term shareholder value. With Casa Berardi's strategic review progressing and our portfolio optimization continuing, we're well-positioned to achieve our 2025 guidance and beyond.”
Hecla Mining CEO, on the earnings call
Forward Guidance & Outlook
Consolidated silver production guidance for 2025 is maintained at 15.5-17.0 million ounces. Consolidated gold production guidance is raised to 126-137 koz from 120-130 koz, driven by Greens Creek's improved gold outlook (50.0-55.0 koz, up from 44.0-48.0 koz). Total silver cash cost guidance (after by-product credits) is significantly lowered to ($1.25)-($0.75)/oz from the prior $3.00-$3.25/oz, and silver AISC guidance lowered to $11.50-$13.50/oz from $15.75-$17.00/oz. Casa Berardi cost guidance is unchanged at $1,500-$1,650/oz cash cost and $1,750-$1,950/oz AISC. Consolidated capital investment guidance is unchanged at $222-$242 million. Exploration and pre-development spending remains at $28 million. The company expects to complete the Casa Berardi strategic review in the coming weeks. Post quarter, the company is redeeming $212 million of its 7.25% Senior Notes, expected to close mid-to-late August 2025, saving $17.8 million annually in interest expense. If metal prices continue at current levels, the company expects free cash flow generation to be sufficient to meet debt service requirements and support value-enhancing investments.
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Figures from SEC filings and company reports. Not investment advice.