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HL Stock Surges 66.3% in 3 Months: Should Investors Ride the Rally?

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Key Takeaways

  • Hecla Mining lifted Q3 2025 silver output to 4.6 million ounces and revenues to $409.5M on higher prices.
  • HL's Greens Creek led results in Q3 2025, producing 2.3 million ounces of silver.
  • HL generated about $90M in free cash flow and cut net leverage to 0.3x despite higher AISC.

Hecla Mining Company’s (HL - Free Report) shares have surged 66.3% in the past three months, outperforming the industry and the S&P 500, which have returned 40.5% and 4.1%, respectively. In comparison, the company’s peers like Pan American Silver Corp. (PAAS - Free Report) and Avino Silver & Gold Mines Ltd. (ASM - Free Report) have gained 38.4% and 21.9%, respectively, over the same time frame.

HL Outperforms Industry & S&P 500

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Closing at $21.37 in the last trading session, the stock is trading close to its 52-week high of $22.28 and significantly higher than its 52-week low of $4.46. It is trading above both its 50-day and 200-day moving averages, indicating solid upward momentum and confidence in the company's long-term prospects.

HL Stock’s 50-Day & 200-Day Moving Averages

 

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Let’s take a look at HL’s fundamentals to better analyze how to play the stock.

Factors Driving Hecla Mining’s Performance

HL is strengthening its position as a leading North American precious metals producer, supported by strong silver prices, steady operations and focused capital discipline. In the third quarter of 2025, the company produced 4.6 million ounces of silver, up 1.5% from the previous quarter. Also, in the same quarter, it reported revenues of $409.5 million, up 35% on a sequential basis, driven by higher metal prices and increased sales volumes of precious metals.

The strong quarterly performance was mainly driven by Hecla Mining’s core operating assets, led by the Greens Creek mine in Alaska. During the third quarter, Greens Creek produced 2.3 million ounces of silver and 15,600 ounces of gold. Also, capital investment at Greens Creek in the fourth quarter of 2025 is expected to have increased due to ongoing projects and early-stage work on the dry-stack tailings expansion project.

HL’s Lucky Friday project also delivered improved performance during the quarter. The mine produced 1.3 million ounces of silver, supported by higher milled grades and stable operations. The surface cooling project at the mine continues to progress and is expected to be completed in the first half of 2026, which should allow access to deeper, higher-grade ore and extend the mine life.

The Keno Hill project also continued to show steady improvement during the third quarter. The mine produced 898,328 ounces of silver in the quarter (up 20% on a sequential basis), supported by improved power reliability and higher milling rates. HL continues to advance Keno Hill toward commercial production through ongoing investment in critical infrastructure, which is supporting the production ramp-up.

HL recently announced that the Polaris Exploration Project in Mineral County, NV, has received approval to begin exploration activities in 2026. In addition, early drilling at the Midas Project in Nevada has delivered encouraging results. Initial drilling along the previously untested two-mile-long Pogo Trend identified high-grade gold mineralization, including visible gold on a new structure. These results highlight the potential for Midas to become a low-capital-cost growth opportunity and support the expansion of HL’s production profile in a well-established mining district.

Also, Hecla Mining’s strong operating performance translated into solid cash generation during the quarter. The company generated $148 million in operating cash flow and approximately $90 million in free cash flow. This cash generation supported continued balance sheet improvement, with HL reducing its debt significantly and lowering net leverage from 0.7x to 0.3x by the end of third-quarter 2025.

However, the company continues to face cost pressures. HL reported an increase in its all-in-sustaining costs (AISC) per ounce, a key indicator of cost efficiency in mining. It reported silver AISC of $11.01 per ounce, significantly up from $5.19 in the previous quarter. Higher labor costs and increased sustaining capital spending led to elevated operating expenses during the quarter.

HL operates in the highly competitive silver mining market, which includes major industry players such as Pan American Silver and Avino Silver.

Estimate Revisions

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The Zacks Consensus Estimate for HL’s bottom line for 2025 has increased 5% in the past 60 days.

Valuation

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From a valuation standpoint, Hecla Mining is trading at a trailing price-to-earnings ratio of 36.85X compared with the industry average of 18.34X. In comparison, Pan American Silver and Avino Silver are trading at 14.66X and 21.52X, respectively.

Conclusion

The steady advancement of Hecla Mining’s core operations and exploration projects positions it for sustained growth in the quarters ahead. While the company continues to face near-term challenges such as rising operating costs and higher AISC, its diversified asset base, improving operational performance and expanding exploration pipeline support a positive outlook. HL’s strong cash generation and a strengthened balance sheet indicate it is the appropriate time for potential investors to bet on this Zacks Rank #2 (Buy) company.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


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