Hecla Mining Q3 2025 presentation slides: Record revenue and earnings amid strong silver prices

Introduction & Market Context

Hecla Mining Company (NYSE:HL) reported record financial results in its third quarter 2025 presentation, driving its stock price up 14.54% to $13.72 following the announcement. The largest silver producer in the U.S. and Canada delivered exceptional performance across all operations, capitalizing on strong silver prices while maintaining disciplined cost management.

The company’s shares are now trading near their 52-week high of $15.44, reflecting investor confidence in Hecla’s operational execution and financial strength. The stock has shown remarkable recovery from its 52-week low of $4.46, demonstrating the company’s successful transformation from a cash-constrained operator to a financially flexible mining company.

Quarterly Performance Highlights

Hecla’s third quarter results showcased record-breaking financial performance, with revenue reaching $409.5 million and net income of $100.6 million ($0.15 per share), significantly exceeding analyst expectations of $0.09 per share. The company reported record Adjusted EBITDA of $195.7 million, while generating operating cash flow of $148.0 million and free cash flow of $90.1 million.

Silver production for the quarter totaled 4.6 million ounces, with an impressively low all-in sustaining cost (AISC) of $11.01 per ounce and cash cost of ($2.03) per ounce after by-product credits. The negative cash cost highlights the substantial value of by-product metals being produced alongside silver.

As shown in the following revenue breakdown chart:

Silver accounted for 48% of Q3 revenues, followed by gold at 37%, lead at 10%, and zinc at 6%. The company achieved a realized silver price of $42.58 per ounce with a substantial margin of $31.57 per ounce. The quarter also saw significant deleveraging, with the net leverage ratio reduced to just 0.3x and the company’s revolving credit facility fully repaid.

Operational Performance by Mine

All four of Hecla’s producing mines generated positive free cash flow during the quarter, with each operation contributing to the company’s strong overall performance.

Greens Creek, described as the company’s "cornerstone mine," delivered exceptional results with 2.3 million ounces of silver production and 15,584 ounces of gold. The operation generated sales of $178.1 million with negative cash costs of ($8.50) per ounce and AISC of ($2.55) per ounce, reflecting strong by-product credits. Free cash flow from Greens Creek reached $74.5 million, making it the largest contributor to the company’s cash generation.

The following slide details Greens Creek’s performance:

Lucky Friday maintained operational consistency with 1.3 million ounces of silver production, benefiting from a 7% increase in milled silver grade. The mine generated $74.2 million in sales (15% higher than the previous quarter) and $13.5 million in free cash flow, with cash costs of $9.33 per ounce and AISC of $23.30 per ounce.

Keno Hill achieved its second consecutive quarter of positive free cash flow, producing 898,300 ounces of silver at a mill throughput of 323 tons per day. The operation generated $8.3 million in free cash flow as it continues to ramp up toward commercial production.

Casa Berardi, Hecla’s primary gold operation, produced 25,100 ounces of gold at cash costs of $1,582 per ounce and AISC of $1,746 per ounce. Despite an 11% decrease in production compared to the previous quarter due to planned lower underground ore grades, the mine generated an impressive $35.5 million in free cash flow.

Financial Position and Capital Allocation

Hecla’s financial position strengthened considerably during the quarter, with Adjusted EBITDA for the last twelve months increasing from $399 million in Q2 2025 to $506 million in Q3 2025. The company’s disciplined approach to capital allocation focuses on six key areas: safety and environmental excellence, sustaining capital, growth capital, exploration, deleveraging, and shareholder returns.

The presentation outlined Hecla’s capital allocation strategy:

CEO Rob Krcmarov emphasized the company’s financial transformation, stating, "We came into 2025 with a clear mission, and that is to transform Hecla from a cash-constrained operator into a financially flexible company. We’ve proven in Q3 that we can do this rapidly when the metal prices support it."

Forward Outlook and Guidance

Hecla has tightened its 2025 production guidance while lowering cost projections, reflecting confidence in operational performance for the remainder of the year. The company’s long-term outlook is supported by substantial mine life across its portfolio, with Lucky Friday (17 years), Keno Hill (16 years), and both Greens Creek and Casa Berardi (12 years each) providing a solid foundation for sustained production.

The following guidance slide details Hecla’s updated projections:

The company’s strategic priorities focus on long-term value creation from Keno Hill and its exploration portfolio, continued deleveraging with emphasis on free cash flow generation, establishing a capital allocation framework for organic investment, and portfolio rationalization.

Hecla plans to allocate 2-5% of its revenues for exploration in 2026, focusing on near-mine and brownfield exploration, particularly in Nevada. Keno Hill is expected to reach commercial production in 2027, with nameplate throughput anticipated in 2028, providing additional growth potential beyond the current record performance.

With all projects on track for completion in the first half of 2026 and permits secured for key initiatives including Greens Creek tailings and the Libby Exploration Project, Hecla is well-positioned to maintain its operational momentum while capitalizing on favorable silver and gold prices.

Full presentation:

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