Hecla Mining (HL) Q2 Revenue Jumps 24%

Hecla Mining (HL -0.49%), a leading North American silver and gold producer, released its earnings for the second quarter of fiscal 2025 on August 6, 2025. The company reported record revenue of $304.0 million. Revenue increased 23.7% over the prior year. Earnings per share (GAAP) came in at $0.09. Hecla also generated its highest ever quarterly free cash flow (non-GAAP), reporting a record $103.8 million, supporting further debt reduction and improved operational efficiency. Management described the period as record-setting, with significant progress on cost containment and asset productivity.

Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.

Understanding Hecla Mining’s Business and Strategic Focus

Hecla Mining is one of the largest silver producers in the United States and Canada, with a portfolio that includes the Greens Creek and Lucky Friday mines, Casa Berardi gold mine, and the Keno Hill silver project. It produces silver, gold, zinc, and lead from its underground operations. The company’s focus is on operational efficiency, cost management, and expanding its portfolio through targeted exploration and disciplined acquisitions.

Hecla’s recent business strategy has centered on several key areas. These include optimizing production at core assets, lowering costs per ounce of silver through efficient operations, and actively managing metals price volatility. Growth projects like Keno Hill and asset reviews, mainly at Casa Berardi, are also important. Maintaining regulatory compliance and developing a skilled workforce have been additional priorities, supporting both operational excellence and long-term growth.

Quarterly Highlights: Financials, Operations, and Segment Performance

The period marked record quarterly revenue, adjusted EBITDA, and free cash flow for Hecla. Revenue (GAAP) reached $304.0 million, Revenue increased 23.7% from the prior year. GAAP earnings per share increased from $0.04 in Q2 2024 to $0.09, a 125% year-over-year growth, landing at $0.09 (GAAP) Adjusted EBITDA (non-GAAP), an indicator of underlying profitability, climbed 46% to a new high of $132.5 million. Notably, Free cash flow (non-GAAP) hit $103.8 million, reversing a negative free cash flow (non-GAAP) position in the prior year. Management attributed this to higher operating cash flow, better working capital, and increased metals prices.

The company also improved its balance sheet. Net leverage ratio (non-GAAP), which measures debt against adjusted EBITDA, dropped to 0.7 from 2.3 in the prior year, reflecting the announced partial debt repayment of $212 million in senior notes, expected to close in mid-to-late August and a substantial increase in cash reserves to $296.6 million. These steps are expected to trim annual interest expense by around $17.8 million. The company’s hedging activity covered approximately 12% of 2025–2026 zinc and 24% of lead output as of June 30, mitigating some pricing risk in its base metals revenue stream.

Operationally, the company benefited from strong realized prices for silver and gold. Average realized silver price was $34.82 per ounce, up from $29.77 per ounce in the prior year, while average gold selling price soared to $3,314 per ounce. Production highlights included total silver output of 4.52 million ounces and gold production of 45,895 ounces. The Greens Creek mine saw a 21% jump in silver production and a 29% rise in gold output compared to Q1 2025. Greens Creek’s cash cost per silver ounce (after by-product credits)—a non-GAAP metric representing its effective out-of-pocket cost net of revenues from other metals—fell sharply from last year’s figures, landing at a negative $11.91 per ounce.

Lucky Friday achieved a quarterly record for tons milled, with cash costs per silver ounce (non-GAAP) dropping to $6.19, though all-in sustaining cost (AISC)—a non-GAAP measure that includes maintenance and capital spending—remained high at $19.07 per ounce. The Keno Hill project posted its first positive free cash flow (non-GAAP) quarter since acquisition, reflecting progress in operational ramp-up despite the mill running below its 440-ton-per-day capacity. Casa Berardi produced 28,145 ounces of gold, improved its unit costs by over $600 per ounce compared to Q1 2025, and showed strong cost control and free cash flow. Segment free cash flow (non-GAAP) was $69.0 million at Greens Creek, Free cash flow at Lucky Friday was $4.9 million, $2.7 million free cash flow at Keno Hill, and $31.8 million free cash flow (non-GAAP) at Casa Berardi.

Hecla also advanced asset portfolio optimization. Significant steps included the sale of the Kinskuch property, generating a $3.2 million gain, and further asset rationalization as part of the ongoing strategic review of Casa Berardi. Exploration spending totaled $8.3 million, targeting new discoveries and extensions in key districts.

Looking Forward: Guidance, Priorities, and Dividend Status

Management maintained consolidated production and capital spending guidance for fiscal 2025. Silver output is expected between 15.5 and 17.0 million ounces, and gold output guidance has been raised to 126–137 thousand ounces. Capital investment guidance remains set at $222–$242 million. However, cost guidance improved: consolidated cash cost per silver ounce (after by-product credits, non-GAAP) was revised down significantly to between negative $1.25 and negative $0.75, thanks to better-than-expected gold prices and cost controls at the Greens Creek mine. The company continues to focus on scaling up Keno Hill and completing the strategic review of Casa Berardi. No new management guidance was issued regarding longer-term production or capital plans beyond the current year.

Hecla declared a preferred dividend of $0.875 per share and a common stock dividend of $0.00375 per share.

Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.