Hecla Mining Company (HL, Financial) has announced that its Libby Exploration Project has been included in the Federal Permitting Improvement Steering Council's FAST-41 dashboard. This strategic designation, made public on April 18, 2025, aims to expedite the permitting process for essential infrastructure projects and boost transparency. The project, which is located in northwestern Montana, benefits from this prioritization due to its significance in increasing domestic production of silver and copper. Vox Royalty, holding a US$0.20/ton production royalty over the project, reported this development. The FAST-41 status is expected to streamline Hecla's path towards securing the final Record of Decision, underscoring the administration’s emphasis on advancing critical mineral initiatives.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 10 analysts, the average target price for Hecla Mining Co (HL, Financial) is $7.48 with a high estimate of $11.50 and a low estimate of $6.00. The average target implies an upside of 27.45% from the current price of $5.87. More detailed estimate data can be found on the Hecla Mining Co (HL) Forecast page.
Based on the consensus recommendation from 10 brokerage firms, Hecla Mining Co's (HL, Financial) average brokerage recommendation is currently 2.3, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Hecla Mining Co (HL, Financial) in one year is $6.35, suggesting a upside of 8.27% from the current price of $5.865. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Hecla Mining Co (HL) Summary page.
HL Key Business Developments
Release Date: February 14, 2025
- Revenue: Record revenues of over $900 million in 2024.
- Free Cash Flow: $228 million generated by Greens Creek and Lucky Friday.
- Net Leverage Ratio: Improved from 2.7x to 1.6x.
- Silver Production: 15.5 million to 17 million ounces anticipated for 2025.
- Gold Production: 87,000 ounces in 2024 at Casa Berardi.
- Silver Reserve Increase: 17% increase at Keno Hill.
- Adjusted EBITDA: Record levels achieved, contributing to improved leverage.
- All-in Sustaining Cost: $16.6 per ounce at Lucky Friday in 2024.
- Dividend: Base annual dividend maintained at $0.015.
- Capital Investment: $215 million invested across the portfolio in 2024.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Hecla Mining Co (HL, Financial) achieved record revenues of over $900 million in 2024, driven by higher metal prices and solid contributions from all four operating mines.
- The company maintained its silver reserve position, the second highest in its history, with a 17% increase in reserves at Keno Hill.
- Greens Creek and Lucky Friday mines generated $228 million in free cash flow, showcasing their strong performance and cash generation capabilities.
- Hecla Mining Co (HL) improved its net leverage ratio from 2.7 to 1.6x, demonstrating significant progress in strengthening its balance sheet.
- The company is committed to ESG leadership, focusing on responsible environmental stewardship and strong community partnerships.
Negative Points
- Keno Hill's ramp-up has been more challenging than initially anticipated, with operational and social challenges impacting production.
- Casa Berardi has not yet realized its potential, leading to a strategic review to evaluate all alternatives for maximizing shareholder value.
- Higher labor and power costs are expected to increase the cost per ounce at Greens Creek and Lucky Friday.
- Permitting delays and infrastructure challenges at Keno Hill are impacting the timeline for achieving profitable production.
- The company eliminated its silver-linked dividend to reinvest in organic growth opportunities, which may disappoint some shareholders seeking immediate returns.
