Hecla Mining (NYSE:HL) executives highlighted record financial results in 2025 and outlined a strategy centered on expanding silver exposure and maintaining capital discipline, according to the company’s fourth-quarter and full-year 2025 conference call.
Record 2025 results and balance sheet deleveraging
President and CEO Rob Krcmarov called 2025 “a transformational year,” pointing to record revenue of $1.4 billion, net income applicable to shareholders of $321 million (or $0.49 per share), and record adjusted EBITDA of $670 million. Hecla reported operating cash flow of $563 million and free cash flow of $310 million, with management noting that each mine generated positive free cash flow during the year.
Lawlar also discussed profitability metrics, including a silver all-in sustaining cost (AISC) margin that improved to 75% in 2025 from 54% in 2024, as well as return on invested capital rising to 12% from 4%.
Portfolio shift: pending Casa Berardi sale
Management spent a portion of the call discussing the pending sale of Casa Berardi to Orezone Gold Corporation, describing the transaction as a move to sharpen Hecla’s silver focus. Krcmarov said Casa Berardi is a gold mine in a “tier one jurisdiction,” but that its mid-range mine plan aligns better with a gold-focused operator. Hecla intends to redirect capital and management attention toward its silver assets.
Krcmarov said Hecla will retain “upside exposure” through a 10% stake in Orezone. He also said that, after closing, silver would represent about 73% of consolidated revenues, which he characterized as the highest silver revenue exposure among multi-asset mining peers.
In the question-and-answer session, management confirmed that Hecla expects to receive Casa Berardi cash flows through the closing date. Lawlar said the company assumed the transaction would close sometime in the first quarter and therefore included a full first quarter of Casa Berardi production and costs in its estimates. He noted that January production was impacted by significant weather in the Abitibi region, which raised unit costs because there was limited time to recover the lost production within the quarter.
On accounting treatment, Lawlar said that upon closing, Casa Berardi would be classified as held for sale and separated from the core financial statements, while the net income line would still reflect Casa operations through closing. He also said the transaction includes deferred and contingent consideration that will require a fair value process and that the company “would actually expect we’ll see some type of a loss on the transaction,” while emphasizing that Hecla was still working through the accounting and did not provide an estimate.
Operational performance and 2026 guidance
On the operational front, Krcmarov said Hecla produced 17 million ounces of silver in 2025, hitting the top end of guidance, and produced 150,000 ounces of gold, exceeding gold guidance. He highlighted record annual silver production of 5.3 million ounces at Lucky Friday and record production of over 3 million ounces at Keno Hill, which management said achieved first-year profitability and positive free cash flow under Hecla ownership.
Senior Vice President and COO Carlos Aguiar said Hecla’s 2025 total reportable injury frequency rate was 1.69, a 13% year-over-year reduction. He said the company plans to implement a formal fatality prevention program in 2026.
- Greens Creek: Q4 silver production of 2.0 million ounces with AISC of under $3/oz after byproduct credits; operating cash flow of $102 million and nearly $80 million in free cash flow. Full-year 2025 silver production of 8.7 million ounces with AISC of under -$2/oz after byproduct credits. 2026 guidance: 7.5–8.1 million ounces of silver and 51,000–55,000 ounces of gold, with AISC guided to nearly $0/oz after byproduct credits.
- Lucky Friday: Q4 silver production of 1.3 million ounces with AISC under $26/oz after byproduct credits; operating cash flow of $57 million and over $33 million in free cash flow. Full-year 2025 record silver production of 5.3 million ounces with AISC under $22/oz. 2026 guidance: 4.7–5.2 million ounces of silver with AISC of $23.50–$26/oz, with Aguiar attributing the higher AISC in part to increased profit-sharing payments to the workforce.
- Keno Hill: Q4 silver production of 597,000 ounces, operating cash flow of $33 million, and over $17 million in free cash flow. Full-year 2025 production exceeded 3.0 million ounces. 2026 guidance: 2.9–3.2 million ounces of silver and capital investment of $61–$66 million as the operation advances toward steady-state throughput of 440 tons per day.
Krcmarov said the Lucky Friday surface cooling project is 79% complete and on track for mid-2026 completion. During Q&A, management said the project is primarily driven by underground health and safety considerations as mining progresses deeper, while also potentially supporting productivity improvements.
Exploration focus and growth options
Vice President of Exploration Kurt Allen said Hecla’s exploration strategy is to “discover and develop the next generation of production from within our existing portfolio.” He said the company plans to invest $45–$55 million in 2026 exploration, weighted toward Nevada and near-mine opportunities, with a goal of achieving greater than 100% reserve replacement and supporting a longer-term objective of reaching 20 million ounces of annual silver production.
At Midas in Nevada, Allen highlighted drill results including 6.1 feet at 0.46 ounces per ton gold and 0.93 ounces per ton silver and 2.2 feet at 0.95 ounces per ton gold and 0.6 ounces per ton silver, which he said support a potential near-term production restart using existing mill infrastructure. Management later said the Midas mill has a permitted capacity of about 1,200 tons per day (approximately 450,000 tons per year), but added it is too early to discuss expected throughput or future grades while exploration continues.
At Aurora, Allen said Hecla received a Finding of No Significant Impact (FONSI) from the U.S. Forest Service, which he described as a major permitting milestone that clears the path for 2026 exploration at the historic high-grade gold-silver producer.
Hecla also discussed reserve and resource work at its operating mines. Allen said Greens Creek definition drilling added 3.7 million silver ounces through model updates, replaced 9.5 million ounces depleted through mining, and increased reserves by 2.4 million ounces net. He said Lucky Friday “nearly replaced” reserves, reducing only 200,000 silver ounces during a record production year, and cited measured and indicated resources beyond reserves at both sites.
Medium-term outlook and capital allocation framework
For 2026, Krcmarov said Hecla’s silver production outlook is 15.1–16.5 million ounces, while reiterating management’s view that there is a “credible pathway” to 20 million ounces over the medium term. He cited continued ramp-up at Keno Hill, potential restart of Midas, further optimization at Lucky Friday, and potential reprocessing of historic dry stack tailings at Greens Creek as internal options.
Lawlar reiterated Hecla’s capital allocation priorities, listing safety and environmental excellence first, followed by sustaining and growth capital, exploration, deleveraging, strategic investments guided by return criteria, and shareholder returns “when appropriate.”
In Q&A, Krcmarov said the company is also working to replenish its longer-term project pipeline. He said he tasked Allen with establishing a project generation and new business group aimed at early entry into new silver districts and monitoring opportunities, particularly among junior companies, while noting that silver-producing assets are scarce.
About Hecla Mining (NYSE:HL)
Hecla Mining Company, founded in 1891 and headquartered in Coeur d’Alene, Idaho, is one of the oldest publicly traded precious metals companies in the United States. Originally established to develop the rich silver deposits of the Coeur d’Alene district, Hecla has evolved into a diversified mining enterprise focused on the exploration, development and production of silver and gold, with by-product credits from lead and zinc.
The company’s principal operations are located in North America and Latin America.
