Hecla Delivers Record Results: Strong Free Cash Flow, Deleveraging, and Production Guidance Tightened Across Portfolio
Third Quarter Sets New Records in Revenue, Profitability, and Cash Flow
Hecla Mining Company has posted its most impressive quarterly performance in its 134-year history for the third quarter of 2025. The Company achieved a record $409.5 million in revenue, 35% above the prior quarter, and reported a record net income of $100.6 million and record adjusted EBITDA of $195.7 million. Importantly, Hecla also delivered free cash flow of $90.1 million, strengthening its balance sheet and providing new strategic flexibility.
| Key Financial Metrics (3Q 2025) | Value | % Change vs 2Q 2025 |
|---|---|---|
| Revenue ($ millions) | 409.5 | +35% |
| Net Income to Common ($ millions) | 100.6 | +75% |
| Adjusted EBITDA ($ millions) | 195.7 | +48% |
| Free Cash Flow ($ millions) | 90.1 | -13% |
| Net Leverage Ratio | 0.3x | Improved from 0.7x |
| Cash Balance ($ millions) | 133.9 | +399% |
Operational Momentum: All Major Mines Contribute to Free Cash Flow
For the second straight quarter, each of Hecla’s core operating assets—Greens Creek, Lucky Friday, Keno Hill, and Casa Berardi—contributed positive free cash flow. Greens Creek stood out with $74.5 million in free cash flow, a record gross profit, and a notable margin on silver production. Keno Hill achieved its third consecutive profitable quarter, aided by increased production and improved reliability from upgraded hydroelectric power. Lucky Friday delivered steady output, progressing its key surface cooling infrastructure project (now 66% complete and on track for 2026). Casa Berardi posted strong free cash flow, even as underground gold production became more efficient and the stripping ratio at the surface pit declined.
| Mine | Silver Production (oz) | Gold Production (oz) | Free Cash Flow ($ millions) |
|---|---|---|---|
| Greens Creek | 2,347,674 | 15,584 | 74.5 |
| Lucky Friday | 1,337,353 | N/A | 13.5 |
| Keno Hill | 898,328 | N/A | 8.3 |
| Casa Berardi | N/A | 25,070 | 35.5 |
Cost Discipline: Low Silver Cash Costs and Stable AISC
Hecla continued to exercise cost discipline across its operations. Consolidated silver cash cost (after by-product credits) landed at ($2.03) per ounce, with all-in sustaining cost (AISC) at $11.01 per ounce. Gold cash cost at Casa Berardi was $1,582 per ounce with an AISC of $1,746 per ounce—both in line with previous guidance.
| Cost Metric | Silver (per oz) | Gold (per oz) |
|---|---|---|
| Cash Cost (after by-product credits) | ($2.03) | $1,582 |
| AISC | $11.01 | $1,746 |
Balance Sheet Transformation: Deleveraging Drives Financial Flexibility
Hecla has fully repaid its revolving credit facility and the Quebec notes, while net leverage fell from 0.7x to 0.3x. Cash and cash equivalents climbed to $133.9 million, enhancing resilience for both organic investments and potential M&A. Total debt decreased by $287 million in the past quarter.
2025 Guidance Tightened: Stronger Outlook for Production and Margins
Management tightened both silver and gold production guidance across all mines:
- Consolidated silver production is now expected between 16.2–17.0 million ounces (previously 16.0–17.0 million).
- Gold production is projected at 145.0–150.0 thousand ounces.
- Guidance for cost per ounce is reiterated—showing continued cost control, despite inflationary pressures at certain mines.
| Mine | 2025 Silver Guidance (Moz) | 2025 Gold Guidance (Koz) | Cash Cost (Silver) | AISC (Silver) |
|---|---|---|---|---|
| Greens Creek | 8.4 – 8.8 | 53.0 – 55.0 | ($7.00) – ($5.75) | ($1.00) – $0.50 |
| Lucky Friday | 4.9 – 5.1 | N/A | $7.50 – $8.50 | $21.00 – $22.50 |
| Keno Hill | 2.9 – 3.1 | N/A | Pre-commercial phase | Pre-commercial phase |
| Casa Berardi | N/A | 92.0 – 95.0 | $1,700 – $1,800 (Gold) | $1,850 – $2,000 (Gold) |
Exploration Continues to Expand Asset Value
Hecla invested $8.8 million in high-impact exploration during the quarter, with drilling at all key operations (Greens Creek, Keno Hill, Casa Berardi) yielding promising intercepts and extending mine life potential. The Libby Exploration Project also received key federal approval, laying groundwork for potential long-term value.
Strategic Outlook: Operational Strength and Disciplined Growth
Hecla's operational improvements, disciplined capital allocation, and balance sheet strength set the Company up for continued outperformance, even as costs in some areas tick higher. Management remains committed to sustainable cash generation, reserve growth, and flexible risk management through hedging. With robust operating margins, positive free cash flow at every core mine, and ample financial firepower, Hecla’s multi-mine portfolio is well positioned for both resilience and opportunistic growth.
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