Hecla Reports Third Quarter 2025 Results
11/05/2025
Cash Flow from Operations $148 million, Free Cash Flow $90 million, numerous records achieved; deleveraging continues with revolver fully repaid; tightening up silver and gold production and reiterating consolidated silver and gold cash cost and AISC guidance
COEUR D'ALENE, Idaho--(BUSINESS WIRE)-- Hecla Mining Company (NYSE:HL) ("Hecla", "we", "our" or the "Company") today announced third quarter 2025 financial and operating results. "Prior quarter" refers to the second quarter of 2025.
THIRD QUARTER HIGHLIGHTS
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Financial Performance and Capital Execution:
Record quarterly revenue: $409.5 million, representing a 35% increase over prior quarter.
Strong profitability - record net income: Net income applicable to common stockholders of $100.6 million, or $0.15 per share; $198.7 million during the last 12 months.
Record Adjusted EBITDA: $195.7 million during the quarter, $505.5 million during the last 12 months. 5
Substantial deleveraging: Net leverage ratio* decreased to 0.3x from 0.7x in prior quarter, revolving credit facility fully repaid.
Building balance sheet strength: Cash balance of $133.9 million at quarter end, providing strategic flexibility.
Continued strong cash flow generation: $148 million cash generated from operations, with $90.1 million in free cash flow. 2
Operational Performance:
Silver Operations - Production and Costs:
4.6 million ounces of silver produced (2% higher than prior quarter).
Year-to-date production exceeding plan, driving the production guidance revision.
Total cost of sales of $157.5 million, with silver cash cost of ($2.03) per ounce and AISC of $11.01 per ounce (both after by-product credits). 3,4
Gold Operations - Production and Costs:
Casa Berardi and Greens Creek delivered continued robust gold production, supporting the guidance revision for consolidated gold production.
Casa Berardi total cost of sales of $55.4 million, with gold cash cost of $1,582 per ounce and AISC of $1,746 per ounce (both after by-product credits). 3,4
Individual Mine Performance:
Greens Creek: Continued gold production outperformance driven by higher grades.
Keno Hill: Delivered third consecutive quarter of profitability under Hecla ownership; Yukon Energy Corporation completed Aishihik hydroelectric plant repairs, improving power supply reliability to the operation.
Lucky Friday: Production consistent with prior quarter record while continuing construction of the surface cooling project (a key infrastructure project required to increase the cooling capacity for the mine over the reserve life). The project is 66% complete and tracking for completion in the first half of 2026.
Casa Berardi: At current gold prices, underground operations are expected to remain in production to capitalize on available margins. The 160 Pit stripping ratio is declining and the third-party surface contractor is demobilizing.
Permitting:
Greens Creek: In August, Greens Creek received authorization from the U.S. Army Corps of Engineers for wetland impacts associated with future expansion activities of dry stack tailings, pending renewal of the waste management permit. Construction is scheduled to begin in the fourth quarter, with full construction anticipated to commence in 2026.
Libby Exploration Project Advancement Subsequent to Quarter End: In early October the U.S. Forest Service issued final decision of notice and finding of no significant impact for 100% owned Libby Exploration Project.
*Net leverage ratio, a non-GAAP metric, is calculated as current debt plus long-term debt plus finance leases minus cash divided by trailing twelve-month adjusted EBITDA.
Rob Krcmarov, President and Chief Executive Officer, said, "Our third quarter results represent a defining moment for Hecla, with record-breaking performance across a number of key financial metrics. We achieved quarterly revenues of $410 million, net income of $101 million, and Adjusted EBITDA of $196 million, all records in the Company's 134 year history.
Perhaps our most significant accomplishment is our substantial balance sheet transformation - our net leverage ratio has decreased to just 0.3x, the revolving credit facility is fully repaid, we repaid the Investissement Quebec notes and our cash and cash equivalents position has grown to $134 million. During the quarter we achieved $90 million in free cash flow which is a genuine inflection point in our financial flexibility, strengthening our financial position.
Operationally, all four producing assets contributed to positive free cash flow for the second consecutive quarter. Greens Creek continues to exceed expectations, Keno Hill has delivered three consecutive quarters of profitability under our ownership, Lucky Friday maintained consistent production while advancing the surface cooling project, and Casa Berardi’s cost trajectory is improving. This validates both the quality of our asset base and the skill of our operating teams.
We continue to make significant progress on our strategic priorities including operational excellence, balance sheet strength, and value creation for shareholders, which has led to these results."
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