Hecla Mining Company Reports 38% Revenue Increase and Net Income Turnaround in Q1 2025

Hecla Mining Company reported significant financial improvements in its latest quarterly results, with total sales reaching $261.3 million for the three months ended March 31, 2025, a 38% increase from $189.5 million in the same period last year. The company achieved a net income applicable to common stockholders of $28.7 million, compared to a net loss of $5.9 million in the prior year. This turnaround was driven by higher average realized prices for silver, gold, and base metals, alongside increased sales volumes for silver and base metals, despite a decrease in gold sales.

The company's gross profit surged to $74.0 million, up from $19.2 million in the first quarter of 2024. This increase was attributed to a combination of higher metal prices and improved operational efficiencies. Notably, Hecla's operations at Lucky Friday and Keno Hill contributed positively, with Keno Hill turning profitable for the first time under Hecla's ownership, generating a gross profit of $1.0 million. The company also reported a decrease in ramp-up and suspension costs, which had previously impacted profitability.

Operationally, Hecla's production for the quarter included 4.1 million ounces of silver and 34,232 ounces of gold. The company noted a new quarterly milling record at Lucky Friday, processing 108,745 tons, which reflects its commitment to operational excellence. The total cash cost after by-product credits for silver was reported at $1.29 per ounce, while the all-in sustaining cost was $11.91 per ounce, indicating effective cost management despite inflationary pressures.

In terms of strategic developments, Hecla has continued to invest in its operations, with capital expenditures totaling approximately $54.1 million during the quarter. This includes investments across its key mining operations, aimed at enhancing production capabilities and sustaining long-term growth. The company also maintains a disciplined cash management strategy, with $23.7 million in cash and cash equivalents as of March 31, 2025, and $43.0 million drawn on its $225 million credit facility.

Looking ahead, Hecla remains optimistic about its operational and financial outlook, driven by favorable macroeconomic factors for precious metals and ongoing improvements in production efficiency. The company plans to continue its focus on exploration and development projects, with an estimated capital expenditure range of $222 to $242 million for 2025. However, it acknowledges potential risks related to fluctuating metal prices and operational challenges, particularly in its Keno Hill operations, which are still in the ramp-up phase.