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Hecla Mining vs. First Majestic: Which Silver Mining Stock has Greater Upside?
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Key Takeaways
HL grew Q3 2025 silver output to 4.6M oz and revenues to $409.5M, driven by higher prices and volumes.
AG delivered record silver output, supported by higher production across silver, gold and base metals.
AG faces rising costs and Mexico-related legal risks despite strong cash flow and liquidity.
Hecla Mining Company (HL - Free Report) and First Majestic Silver Corp. (AG - Free Report) are both prominent names operating in the Zacks Mining - Silver industry. As competitors, these two are focused on extracting and operating silver mines, while driving growth through exploration activities, mine expansions and strategic partnerships.
Both companies have been benefiting from strong growth opportunities in the silver mining sector, supported by higher silver prices and sustained investments in expanding production capacity in recent years. Let’s take a closer look at their fundamentals, growth prospects and challenges.
The Case for Hecla Mining
HL is strengthening its position as a leading North American precious metals producer. In the third quarter of 2025, the company produced 4.6 million ounces of silver, representing a 1.5% increase from the previous quarter. Revenues rose to $409.5 million, up 35% sequentially, driven by higher metal prices and increased precious-metals sales volumes.
The strong quarterly results were supported by Hecla Mining’s core operating assets, led by the Greens Creek mine in Alaska. During the quarter, Greens Creek produced 2.3 million ounces of silver and 15,600 ounces of gold. Capital investment at the facility is expected to have risen in the fourth quarter of 2025, reflecting ongoing projects and early-stage work related to the dry-stack tailings expansion.
HL’s Lucky Friday mine also delivered improved performance, producing 1.3 million ounces of silver during the quarter. Higher milled grades and stable operations supported output, while progress on the surface cooling project continues. The project is expected to be completed in the first half of 2026, which will enable access to deeper, higher-grade ore and will extend the mine’s operating life.
The Keno Hill project showed continued operational momentum, producing 898,328 ounces of silver, up 20% sequentially. Improved power reliability and higher milling rates supported the increase, as HL advances the asset toward commercial production through investments in infrastructure.
It is worth noting that HL received approval to commence exploration at the Polaris project in Nevada in 2026. Early drilling at the Midas project has also 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 developments highlight Midas’ potential as a low-capital growth opportunity 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, cost pressures remain a challenge. HL’s silver all-in sustaining costs rose to $11.01 per ounce from $5.19 in the prior quarter, reflecting higher labor expenses and increased sustaining capital investments.
The Case for First Majestic
AG’s total production reached 7.8 million silver-equivalent (AgEq) ounces in the fourth quarter of 2025. The figure includes a record 4.2 million silver ounces and 41,417 gold ounces. It also includes 14.2 million pounds of zinc, 8.1 million pounds of lead and 235,886 pounds of copper. The AgEq ounces produced marked a solid 37% year-over-year increase, attributed to a 77% surge in silver production.
In the third quarter of 2025, First Majestic produced 7.7 million silver-equivalent (AgEq) ounces. The figure includes a record 3.9 million silver ounces and 35,681 gold ounces. It also includes 13.9 million pounds of zinc and 7.7 million pounds of lead. The AgEq ounces produced marked a solid 39% year-over-year increase.
Also, First Majestic achieved a record quarterly free cash flow in the third quarter. The company’s cash flow surged 67.5% year over year to $98.8 million, with liquidity reaching $682 million. AG reported a record working capital of $542.4 million.
Also, on January 2025, First Majestic completed the acquisition of Gatos Silver, Inc., gaining a 70% interest in the high-quality and long-life Cerro Los Gatos Silver underground mine. This deal solidified AG’s position as an intermediate primary silver producer.
However, First Majestic has been dealing with the adverse impacts of the high cost of sales and operating expenses. In the first nine months of 2025, its cost of sales surged 52.8% year over year, while general and administrative expenses increased 27.3%. The company has been incurring high costs and expenses related to an increase in production, labor and other selling costs, along with a rise in integration costs associated with its acquisitions, such as Gatos Silver.
Also, AG has been grappling with long-running issues in Mexico, primarily related to a major tax conflict with the Mexican government. The company currently owns four operating mines in the country that includes the likes of Santa Elena Silver/Gold mine, Los Gatos Silver mine, San Dimas Silver/Gold mine and La Encantada Silver mine. However, ongoing legal and regulatory challenges pose financial and operational risks to these sites, despite their strong production performance.
Rise in long-term debt remains a concern for AG. Exiting the third quarter of 2025, the company’s overall consolidated indebtedness was $216.8 million. The figure reflects an increase of 3.5% on a year-over-year basis. Although the current liquidity level safeguards the company from immediate financial risks, a further rise in debt might affect its margins and profitability going forward.
How Does the Zacks Consensus Estimate Compare for HL & AG?
The Zacks Consensus Estimate for HL’s 2025 earnings per share (EPS) indicates growth of 281.8%. The company’s EPS estimates have been trending northward over the past 60 days for 2025.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for AG’s 2025 EPS implies year-over-year growth of 314.2%. The company’s EPS estimates for 2025 have remained steady over the past 60 days.
Image Source: Zacks Investment Research
Price Performance and Valuation of HL & AG
In the past three months, Hecla Mining’s shares have surged 107.2%, while First Majestic stock has gained 68.6%.
Image Source: Zacks Investment Research
Hecla Mining is trading at a forward 12-month price-to-earnings ratio of 45.76X, above its median of 36.97X over the past five years. First Majestic’s forward earnings multiple sits at 60.07X, higher than its median of 30.16X over the same period.
Image Source: Zacks Investment Research
Final Take
Hecla Mining remains well-positioned for growth in the quarters ahead, supported by the steady advancement its core operations and exploration projects. Improvements in operational efficiency and access to higher-grade ore are helping stabilize production and extend mine lives, while ongoing exploration activities are strengthening the company’s long-term growth pipeline. Combined with a solid balance sheet and favorable precious-metals market conditions, these factors position HL to deliver sustainable growth and improved financial performance in the near term.
In contrast, while First Majestic delivered strong production growth and record cash flow, near-term challenges remain. Rising operating costs, regulatory challenges in Mexico and higher debt levels remain key overhangs that could pressure margins and profitability going forward.
Given these factors, HL seems a better pick for investors than AG currently. While Hecla Mining carries a Zacks Rank #2 (Buy), First Majestic currently has a Zacks Rank #3 (Hold).
Image: Bigstock
Hecla Mining vs. First Majestic: Which Silver Mining Stock has Greater Upside?
Key Takeaways
Hecla Mining Company (HL - Free Report) and First Majestic Silver Corp. (AG - Free Report) are both prominent names operating in the Zacks Mining - Silver industry. As competitors, these two are focused on extracting and operating silver mines, while driving growth through exploration activities, mine expansions and strategic partnerships.
Both companies have been benefiting from strong growth opportunities in the silver mining sector, supported by higher silver prices and sustained investments in expanding production capacity in recent years. Let’s take a closer look at their fundamentals, growth prospects and challenges.
The Case for Hecla Mining
HL is strengthening its position as a leading North American precious metals producer. In the third quarter of 2025, the company produced 4.6 million ounces of silver, representing a 1.5% increase from the previous quarter. Revenues rose to $409.5 million, up 35% sequentially, driven by higher metal prices and increased precious-metals sales volumes.
The strong quarterly results were supported by Hecla Mining’s core operating assets, led by the Greens Creek mine in Alaska. During the quarter, Greens Creek produced 2.3 million ounces of silver and 15,600 ounces of gold. Capital investment at the facility is expected to have risen in the fourth quarter of 2025, reflecting ongoing projects and early-stage work related to the dry-stack tailings expansion.
HL’s Lucky Friday mine also delivered improved performance, producing 1.3 million ounces of silver during the quarter. Higher milled grades and stable operations supported output, while progress on the surface cooling project continues. The project is expected to be completed in the first half of 2026, which will enable access to deeper, higher-grade ore and will extend the mine’s operating life.
The Keno Hill project showed continued operational momentum, producing 898,328 ounces of silver, up 20% sequentially. Improved power reliability and higher milling rates supported the increase, as HL advances the asset toward commercial production through investments in infrastructure.
It is worth noting that HL received approval to commence exploration at the Polaris project in Nevada in 2026. Early drilling at the Midas project has also 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 developments highlight Midas’ potential as a low-capital growth opportunity 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, cost pressures remain a challenge. HL’s silver all-in sustaining costs rose to $11.01 per ounce from $5.19 in the prior quarter, reflecting higher labor expenses and increased sustaining capital investments.
The Case for First Majestic
AG’s total production reached 7.8 million silver-equivalent (AgEq) ounces in the fourth quarter of 2025. The figure includes a record 4.2 million silver ounces and 41,417 gold ounces. It also includes 14.2 million pounds of zinc, 8.1 million pounds of lead and 235,886 pounds of copper. The AgEq ounces produced marked a solid 37% year-over-year increase, attributed to a 77% surge in silver production.
In the third quarter of 2025, First Majestic produced 7.7 million silver-equivalent (AgEq) ounces. The figure includes a record 3.9 million silver ounces and 35,681 gold ounces. It also includes 13.9 million pounds of zinc and 7.7 million pounds of lead. The AgEq ounces produced marked a solid 39% year-over-year increase.
Also, First Majestic achieved a record quarterly free cash flow in the third quarter. The company’s cash flow surged 67.5% year over year to $98.8 million, with liquidity reaching $682 million. AG reported a record working capital of $542.4 million.
Also, on January 2025, First Majestic completed the acquisition of Gatos Silver, Inc., gaining a 70% interest in the high-quality and long-life Cerro Los Gatos Silver underground mine. This deal solidified AG’s position as an intermediate primary silver producer.
However, First Majestic has been dealing with the adverse impacts of the high cost of sales and operating expenses. In the first nine months of 2025, its cost of sales surged 52.8% year over year, while general and administrative expenses increased 27.3%. The company has been incurring high costs and expenses related to an increase in production, labor and other selling costs, along with a rise in integration costs associated with its acquisitions, such as Gatos Silver.
Also, AG has been grappling with long-running issues in Mexico, primarily related to a major tax conflict with the Mexican government. The company currently owns four operating mines in the country that includes the likes of Santa Elena Silver/Gold mine, Los Gatos Silver mine, San Dimas Silver/Gold mine and La Encantada Silver mine. However, ongoing legal and regulatory challenges pose financial and operational risks to these sites, despite their strong production performance.
Rise in long-term debt remains a concern for AG. Exiting the third quarter of 2025, the company’s overall consolidated indebtedness was $216.8 million. The figure reflects an increase of 3.5% on a year-over-year basis. Although the current liquidity level safeguards the company from immediate financial risks, a further rise in debt might affect its margins and profitability going forward.
How Does the Zacks Consensus Estimate Compare for HL & AG?
The Zacks Consensus Estimate for HL’s 2025 earnings per share (EPS) indicates growth of 281.8%. The company’s EPS estimates have been trending northward over the past 60 days for 2025.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for AG’s 2025 EPS implies year-over-year growth of 314.2%. The company’s EPS estimates for 2025 have remained steady over the past 60 days.
Image Source: Zacks Investment Research
Price Performance and Valuation of HL & AG
In the past three months, Hecla Mining’s shares have surged 107.2%, while First Majestic stock has gained 68.6%.
Image Source: Zacks Investment Research
Hecla Mining is trading at a forward 12-month price-to-earnings ratio of 45.76X, above its median of 36.97X over the past five years. First Majestic’s forward earnings multiple sits at 60.07X, higher than its median of 30.16X over the same period.
Image Source: Zacks Investment Research
Final Take
Hecla Mining remains well-positioned for growth in the quarters ahead, supported by the steady advancement its core operations and exploration projects. Improvements in operational efficiency and access to higher-grade ore are helping stabilize production and extend mine lives, while ongoing exploration activities are strengthening the company’s long-term growth pipeline. Combined with a solid balance sheet and favorable precious-metals market conditions, these factors position HL to deliver sustainable growth and improved financial performance in the near term.
In contrast, while First Majestic delivered strong production growth and record cash flow, near-term challenges remain. Rising operating costs, regulatory challenges in Mexico and higher debt levels remain key overhangs that could pressure margins and profitability going forward.
Given these factors, HL seems a better pick for investors than AG currently. While Hecla Mining carries a Zacks Rank #2 (Buy), First Majestic currently has a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.