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HECLA MINING CO/DE/ (HL)·Q3 2025 Earnings Summary

Executive Summary

  • Record quarter: Revenue $409.5m (+35% q/q), net income to common $100.6m ($0.15 diluted EPS), and Adjusted EBITDA $195.7m — all company records; net leverage fell to 0.3x after fully repaying the revolver and redeeming $212m of notes .
  • Results beat Wall Street: Revenue $409.5m vs $324.1m consensus; Primary EPS $0.12 actual vs $0.095 consensus; EBITDA $203.4m actual vs $138.8m consensus — driven by higher realized metal prices and increased precious metals sales volumes; reported diluted EPS was $0.15 (definition differences vs “Primary EPS”) . S&P Global estimates marked with asterisks below.*
  • Guidance tightened: 2025 consolidated silver 16.2–17.0 Moz; gold 145–150 koz; mines tightened production ranges; Lucky Friday cost guidance raised; Casa Berardi total cost of sales raised to $205m; capital/exploration guidance unchanged .
  • Stock catalysts: Strong price realizations (late-quarter shipments and adoption of collars), broad-based FCF across all mines, deleveraging, and permitting wins (Greens Creek tailings, Libby project FONSI) .

What Went Well and What Went Wrong

What Went Well

  • Record financial performance and deleveraging: “We delivered revenues of $410 million, net income of $101 million, and Adjusted EBITDA of $196 million… net leverage ratio has decreased to just 0.3x… revolver fully repaid” — Rob Krcmarov .
  • Broad-based free cash flow: All four producing assets generated positive FCF for the second straight quarter (Greens Creek ~$74.5m; Casa Berardi ~$35.5m; Lucky Friday ~$13.5m; Keno Hill ~$8.3m) .
  • Operational momentum and permitting: Greens Creek authorization for dry stack tailings expansion; improved power reliability at Keno Hill; Libby project FONSI advancing copper-silver exploration .

What Went Wrong

  • Cost pressure at Lucky Friday: Cash cost/AISC rose to $9.33/$23.30 per silver ounce due to profit-sharing, insurance, medical, and labor costs; cost mitigation plans under evaluation .
  • Working capital headwinds: Operating cash flow flat q/q at $148.0m despite higher profits, impacted by $61.0m AR build (timing of Greens Creek shipments) and semi-annual interest payment; FCF down to $90.1m from $103.8m q/q .
  • Silver AISC consolidated increased to $11.01/oz (after by-product credits) q/q, driven by planned sustaining capital and treatment charges; silver by-product credits declined vs prior quarter .

Financial Results

Consolidated performance vs prior periods

MetricQ3 2024Q4 2024Q1 2025Q2 2025Q3 2025
Sales ($000)$245,085 $249,655 $261,339 $304,027 $409,542
Gross Profit ($000)$59,286 $68,334 $74,004 $119,524 $180,467
Net Income to Common ($000)$1,623 $11,786 $28,734 $57,567 $100,588
Diluted EPS ($)$0.00 $0.02 $0.05 $0.09 $0.15
Adjusted EBITDA ($000)$88,859 $86,558 $90,788 $132,463 $195,695

Margins trajectory

MetricQ3 2024Q4 2024Q1 2025Q2 2025Q3 2025
Gross Margin %24.2% (59,286/245,085) 27.4% (68,334/249,655) 28.3% (74,004/261,339) 39.3% (119,524/304,027) 44.1% (180,467/409,542)
Net Income Margin %0.7% (1,623/245,085) 4.7% (11,786/249,655) 11.0% (28,734/261,339) 18.9% (57,567/304,027) 24.6% (100,588/409,542)

Actuals vs S&P Global Wall Street consensus (Q3 2025)

MetricConsensusActual
Revenue ($)$324,100,000*$409,542,000
Primary EPS ($)$0.09493*$0.12* (reported diluted EPS $0.15)
EBITDA ($)$138,816,670*$203,358,000* (Adjusted EBITDA $195,695,000)

Values retrieved from S&P Global.*

Segment breakdown (Q3 2025)

SegmentSales ($000)Gross Profit ($000)Cash from Ops ($000)Free Cash Flow ($000)
Greens Creek$178,064 $96,406 $83,408 $74,457
Lucky Friday$74,192 $29,551 $29,279 $13,468
Keno Hill$47,551 $16,380 $22,109 $8,337
Casa Berardi$93,544 $38,122 $48,938 $35,458

KPIs (Q3 2025)

KPIQ3 2025Q2 2025Q1 2025
Silver produced (oz)4,590,276 4,520,510 4,112,394
Gold produced (oz)40,654 45,895 34,232
Silver cash cost ($/oz, after credits)($2.03) ($5.46) $1.29
Silver AISC ($/oz, after credits)$11.01 $5.19 $11.91
Cash provided by ops ($000)$148,049 $161,796 $35,738
Free cash flow ($000)$90,144 $103,753 ($18,357)
Cash & equivalents ($000)$133,910 $296,565 $26,868
Net Debt / LTM Adj. EBITDA (x)0.3x 0.7x 1.5x

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Consolidated silver production (Moz)202515.5–17.0 16.2–17.0 Raised low end
Consolidated gold production (koz)2025126–137 145–150 Raised
Greens Creek silver (Moz)20258.1–8.8 8.4–8.8 Tightened (raised low end)
Greens Creek gold (koz)202550–55 53–55 Tightened (raised low end)
Lucky Friday silver (Moz)20254.7–5.1 4.9–5.1 Tightened (raised low end)
Keno Hill silver (Moz)20252.7–3.1 2.9–3.1 Tightened (raised low end)
Total silver cash cost ($/oz, after credits)2025($1.25)–($0.75) ($1.75)–($0.75) Narrowed/ reiterated vs revised set
Total silver AISC ($/oz, after credits)2025$11.50–$13.50 $11.00–$13.00 Lowered midpoint
Greens Creek total cost of sales ($m)2025$289 $289 Maintained
Greens Creek cash cost/AISC ($/oz)2025($6.25)–($5.00); $0.00–$1.50 ($7.00)–($5.75); ($1.00)–$0.50 Lowered costs further
Lucky Friday total cost of sales ($m)2025$165 $175 Raised
Lucky Friday cash cost/AISC ($/oz)2025$7.00–$7.50; $20.00–$21.50 $7.50–$8.50; $21.00–$22.50 Raised
Casa Berardi gold (koz)202576–82 92–95 Raised
Casa Berardi total cost of sales ($m)2025$180 $205 Raised
Casa Berardi cash cost/AISC ($/oz)2025$1,500–$1,650; $1,750–$1,950 $1,700–$1,800; $1,850–$2,000 Reiterated vs Sept set
Consolidated capital ($m)2025$222–$242 $222–$242 Maintained
Exploration & pre-development ($m)2025$28 $28 Maintained
DividendsQ4 2025 payable$0.00375 common; $0.875 Series B $0.00375 common (12/8/25); $0.875 Series B (1/2/26) Maintained policy

Earnings Call Themes & Trends

TopicPrevious Mentions (Q1 & Q2 2025)Current Period (Q3 2025)Trend
Deleveraging & balance sheetNet leverage improved to 1.5x in Q1; plan to redeem notes, eliminate silver-linked dividend . Q2: net leverage 0.7x; announced $212m notes redemption and IQ CAD$50m repayment .Net leverage 0.3x; revolver fully repaid; $212m notes redeemed; balance sheet “structural de-risking” .Improving sharply
Keno Hill ramp/commercial timingQ1/Q2 outlined throughput target 440 tpd; permitting and infrastructure required; discussed power turbine outage impact; optimization to meet hurdle rates at $25/oz .Two consecutive positive FCF quarters; power reliability improved; commercial production broadly targeted around 2027 with full nameplate in 2028 subject to water discharge approval .Operationally improving; timeline clarified
Price realizations & hedgingQ2 noted lumpy concentrate sales and inventory; collars added for Keno Hill; forward hedges for base metals .Late-quarter shipments boosted realized prices; adoption of collars for provisional hedging to capture upside .Positive realization strategy
Cost inflation & laborQ1/Q2 highlighted contractor reliance and profit-sharing impacts at Lucky Friday .Inflation relatively muted; labor tightness persists; tariffs impacting imported components; exploration drilling costs rising .Mixed headwinds
Permitting/project executionFAST-41 for Libby in Q1; tailings/batch fill plant planning at Keno; Greens Creek dry stack tailings planning .Greens Creek wetlands permit authorization; Libby FONSI announced; construction to begin Q4 for dry stack tailings .Advancing permits
Exploration strategy (Nevada)Underinvested historically; plan to scale near-mine and Nevada exploration; Midas/Hollister/Aurora targets .Budget expansion contemplated; exploration update forthcoming; Nevada strategy emphasized .Scaling up

Management Commentary

  • “Our third quarter results represent a defining moment… quarterly revenues of $410 million, net income of $101 million, and Adjusted EBITDA of $196 million… net leverage ratio has decreased to just 0.3x… revolving credit facility is fully repaid” — Rob Krcmarov .
  • CFO on realizations/hedging: “Greens Creek shipments later in the quarter… we started to utilize more collars… allowing investors to enjoy more upside” — Russell Lawlar .
  • COO on operations: “Greens Creek… cash costs negative $8.50 per silver ounce and AISC of -$2.55… Free cash flow nearly $75 million” .
  • Exploration VP: “We’re developing a comprehensive Nevada strategy… exploration update later this month… heightened activity in Nevada next year” — Kurt Allen .

Q&A Highlights

  • Cost inflation and labor: Inflation muted but labor tightness requires competitiveness; some tariff impacts on imported capital components; exploration drilling costs up modestly .
  • Keno Hill commercial production: Five criteria; only silver recoveries met; commercial around 2027 at ~345–385 tpd with nameplate in 2028 pending water discharge approvals .
  • Guidance bounds: Company models imply Greens Creek’s Q4 near ~2 Moz; policy avoids quarter-specific guidance even with strong YTD .
  • Price realizations: Late-quarter shipments and provisional hedging via collars boosted realized prices .

Estimates Context

  • Revenue beat: $409.5m vs $324.1m consensus; driven by higher realized prices and higher precious metals volumes while lead/zinc volumes softened .*
  • EPS beat: Primary EPS $0.12 actual vs $0.095 consensus; reported diluted EPS $0.15 — note definitional differences between “Primary EPS” and diluted EPS .*
  • EBITDA beat: $203.4m actual vs $138.8m consensus; Adjusted EBITDA reported $195.7m .*
  • Estimate dispersion: Only ~2 revenue estimates and ~5 EPS estimates, suggesting potential for larger post-print revisions given low coverage breadth.*

Values retrieved from S&P Global.*

Key Takeaways for Investors

  • The quarter delivered record revenue, EPS, and Adjusted EBITDA with a sharp deleveraging to 0.3x; balance sheet flexibility increases optionality for exploration, targeted growth capex, and potential shareholder returns .
  • Beats versus consensus were broad (revenue, EPS, EBITDA) due to timing of shipments and hedging strategy changes; narrative supports estimate upgrades, especially on margins and FCF .*
  • Greens Creek remains the cash engine; Keno Hill’s consecutive FCF positives and improved power reliability reduce operational risk; timing to commercial is clarified (2027/2028) .
  • Lucky Friday’s cost uptick is identifiable and being addressed; silver price strength and grade support unit economics even as AISC rose q/q .
  • Casa Berardi guidance raised for gold output with higher total cost of sales; near-term FCF outlook remains constructive at current gold prices; strategic alternatives continue to be evaluated .
  • Permitting momentum (Greens Creek tailings, Libby FONSI) de-risks long-duration assets; capital guidance steady supports disciplined allocation .
  • Near-term trading: Positive momentum from beats and deleveraging; watch Q4 shipment timing, realized prices, and any incremental guidance at the upcoming investor/strategy update .
Non-GAAP notes: Adjusted EBITDA, free cash flow, cash cost and AISC definitions and reconciliations provided in the release **[719413_0001193125-25-267085_hl-ex99_1.htm:17]** **[719413_0001193125-25-267085_hl-ex99_1.htm:18]** **[719413_0001193125-25-267085_hl-ex99_1.htm:27]** **[719413_0001193125-25-267085_hl-ex99_1.htm:41]**.