HECLA MINING CO/DE/ (HL) Company Report

Hecla Mining Company (HL) has agreed to sell its subsidiary that owns the Casa Berardi operation in Quebec, Canada, to Orezone Gold Corporation for up to $593 million in total consideration.
The transaction, announced on January 26, 2026, is expected to close in the first quarter of 2026.
The total consideration includes $160 million in cash upon closing, approximately 65.7 million Orezone common shares valued at about $112 million, $80 million in deferred cash, and up to $241 million in contingent consideration.
This sale aligns with Hecla's strategy to focus on its premier silver assets and is expected to strengthen the company's balance sheet and financial position, with proceeds deployed towards debt reduction and investments in growth initiatives at core silver assets like Keno Hill and Greens Creek.

Jan 28, 2026, 11:01 AM

8-K

Orezone announces acquisition of Hecla Quebec

M&A

New Projects/Investments

Guidance Update

Orezone will acquire Hecla Quebec Inc., a wholly-owned subsidiary of Hecla Mining, which includes the Casa Berardi Mine and a portfolio of exploration assets in Quebec.
The upfront consideration for the acquisition is $272 million, consisting of $160 million in initial cash and an equity issuance of 9.9% for $112 million.
Additional considerations include $80 million in deferred cash payments and up to $240 million in contingent consideration, linked to gold prices and future production from specific open pits.
The acquisition is expected to position Orezone as a diversified multi-asset gold producer in a tier-one mining jurisdiction, adding material scale, production, and free cash flow.
Orezone's 2026 consolidated gold production is projected to be between 230,000-250,000 ounces, with a medium-term target of 350,000 ounces annually. The transaction is expected to close in Q1 2026.

Jan 26, 2026, 9:30 PM

Transcript

Orezone to Acquire Hecla Quebec Inc.

M&A

New Projects/Investments

Guidance Update

Orezone will acquire Hecla Quebec Inc., a wholly-owned subsidiary of Hecla Mining, which includes the Casa Berardi Mine and a portfolio of exploration assets in Quebec.
The upfront consideration for the acquisition is $272 million, comprising $160 million in initial cash (funded by $60 million from Orezone's treasury and $100 million from Franco-Nevada streaming financing) and an equity issuance of 9.9% valued at $112 million.
Additional consideration includes $80 million in deferred cash payments and up to $240 million in contingent payments linked to gold prices and future production.
The transaction is expected to close in Q1 2026 and is projected to increase Orezone's 2026 consolidated gold production to between 230,000-250,000 ounces, establishing it as a diversified multi-asset producer.

Jan 26, 2026, 9:30 PM

Transcript

Orezone Announces Acquisition of Hecla Quebec

M&A

New Projects/Investments

Guidance Update

Orezone announced the acquisition of Hecla Quebec Inc., a wholly-owned subsidiary of Hecla Mining, which includes the Casa Berardi Mine and exploration assets in Quebec.
The transaction's upfront consideration is $272 million, funded by $160 million in initial cash (including $100 million from Franco-Nevada streaming financing) and a $112 million equity issuance to Hecla.
Additional considerations include $80 million in deferred cash payments and up to $240 million in contingent payments tied to gold prices and future production.
This acquisition establishes Orezone as a diversified multi-asset gold producer in a tier-one mining jurisdiction, with a projected consolidated gold production of 230,000-250,000 ounces for 2026.
Orezone plans to extend the underground mine life and F160 Pit operations at Casa Berardi to avoid a processing pause, and will ramp up exploration drilling to 80,000-100,000 meters per year.

Jan 26, 2026, 9:30 PM

Transcript

Hecla Mining Agrees to Sell Casa Berardi Gold Operation

M&A

New Projects/Investments

Guidance Update

Hecla Mining has agreed to sell its Casa Berardi gold operation to Orezone Gold for up to $593 million, with the transaction anticipated to close in the first quarter of 2026.
The consideration for the sale includes $160 million in cash at closing, approximately 65.7 million Orezone shares, $80 million in deferred cash, and up to $241 million in contingent payments.
This sale advances Hecla's strategic transformation to concentrate on silver assets, is expected to be immediately ROIC-accretive, and will strengthen the balance sheet, enabling debt paydown and investment in core projects.
The company reported stronger-than-expected silver output for 2025 but issued guidance for lower production in 2026.

Jan 26, 2026, 6:14 PM

Morningstar

Hecla Mining Company Highlights Financial Transformation and 2026 Outlook

Guidance Update

New Projects/Investments

Hecla Mining Company has undergone a significant financial transformation, with gross leverage dropping to 0.4x in 2025 from 1.6x at the beginning of the year, and generating $310 million in free cash flow in 2025.
The company's Return on Invested Capital (ROIC) tripled from 4% in 2024 to 12% in 2025, reflecting improved operational performance and capital allocation discipline.
Hecla plans to invest $55 million in exploration in 2026, double the previous year, focusing on organic growth opportunities, particularly in Nevada.
For 2026, Hecla projects silver production between 15.1-16.5 million ounces and gold production between 134-146 thousand ounces, with All-in Sustaining Cost per ounce of silver expected at $15-$16.25.
The company ended 2025 with $242 million in cash and cash equivalents and a total liquidity of over $500 million, targeting complete deleveraging in 2026.

Jan 26, 2026, 5:30 PM

Transcript

Hecla Reports Strong 2025 Performance and Outlines Strategic Growth

Guidance Update

New Projects/Investments

Revenue Acceleration/Inflection

Hecla achieved significant financial improvements in 2025, with Free Cash Flow of $310M (up from $4M in 2024) , a Gross Leverage Ratio of 0.4x (down from 1.6x in 2024) , and ROIC increasing to 12% (from 6% in 2024).
The company met or exceeded its 2025 production guidance, reporting 17.0 Moz of silver and 151 Koz of gold , with All-in Sustaining Costs (AISC) of $11.23 per silver ounce.
Hecla's strategy emphasizes maintaining silver at over 30% of revenue and pursuing value-accretive growth with a medium-term silver production potential of approximately 20 Moz.
The company is focused on discovery-driven value, with breakthrough high-grade gold discoveries at Nevada Midas in 2025 and significant drilling planned for Nevada Aurora in 2026.

Jan 26, 2026, 5:30 PM

Presentation

Hecla Mining Company Announces Sale of Quebec Subsidiary and Provides 2026 Guidance

M&A

Guidance Update

New Projects/Investments

Hecla Mining Company announced an agreement to sell its subsidiary Hecla Quebec, which owns Casa Berardi, for almost $600 million, including $160 million in cash and 9.9% of Aurizon shares paid at closing.
The company reported a significant financial transformation in 2025, reducing debt by approximately 50%, increasing its net cash balance by over $200 million, and tripling its return on invested capital (ROIC) from 4% in 2024 to 12% in 2025.
For 2026, Hecla expects silver production of 15.1-16.5 million ounces and gold production of 134-146 thousand ounces, with All-in Sustaining Costs (AISC) for silver projected at $15-$16.25 per ounce. Capital expenditure is guided between $255 million-$279 million, including a $55 million exploration budget.
Hecla emphasizes a disciplined capital allocation framework, prioritizing safety, fully funding operations, redeeming bonds, and pursuing strategic investments that meet rigorous criteria, including a 12% ROIC hurdle and alignment with its silver focus in safe jurisdictions.

Jan 26, 2026, 5:30 PM

Transcript

Hecla Announces Casa Berardi Sale and Strategic Transformation

M&A

Guidance Update

New Projects/Investments

Hecla announced the sale of its Hecla Quebec subsidiary, which owns Casa Berardi, for almost $600 million, with closing expected in approximately 30 days.
Under CEO Rob Krcmarov, appointed in November 2024, Hecla underwent a significant transformation in 2025, achieving $310 million in free cash flow, tripling its return on invested capital to 12%, and reducing gross leverage to 0.4x.
For 2026, the company guides for silver production of 15.1-16.5 million ounces and gold production of 134-146 thousand ounces, with an All-in Sustaining Cost per ounce of silver between $15-$16.25.
The company projects a medium-term silver production potential of up to 20 million ounces, driven by the ramp-up of Keno Hill and the potential restart of Midas around 2030-2031.

Jan 26, 2026, 5:30 PM

Transcript

Hecla Mining Company Announces Sale of Casa Berardi Operation

M&A

New Projects/Investments

Hecla Mining Company has agreed to sell its Casa Berardi operation in Quebec, Canada, to Orezone Gold Corporation for up to $593 million in total consideration.
The transaction is expected to close in the first quarter of 2026.
The total consideration includes $160 million in cash upon closing, approximately $112 million in Orezone common shares, $80 million in deferred cash, and up to $241 million in contingent consideration.
This sale aligns with Hecla's strategy to focus on its premier silver assets, strengthen its balance sheet, and deploy cash proceeds towards debt reduction and strategic growth investments.