Hecla Mining Company

Overview

An investment analysis of Hecla Mining (NYSE: HL) in the style of William J. O'Neil, applying CAN SLIM to evaluate earnings momentum, leadership, sponsorship, supply/demand, and market trend using the latest structured figures and corroborated sources.

Financial and Business Overview

Hecla Mining is the largest primary silver producer in the U.S., with operating mines in Alaska (Greens Creek), Idaho (Lucky Friday), Canada (Keno Hill, Yukon; Casa Berardi, Quebec) and exploration assets. Financial snapshot (as of 2025-10-10): price $12.54, market cap ~$8.40B, shares ~669.98M, trailing P/E ~78.4, forward P/E ~46.4, P/B ~3.60, book value/share ~$3.48, dividend ~0.02/sh (~0.16% yield). The stock is in a strong uptrend (50-DMA $9.48 > 200-DMA $6.55). Balance sheet: long-term debt was ~$522–565M mid-2025, declining after a $212M senior notes redemption in Q3 2025; net leverage was guided to ~0.7x following record free cash flow (Q2 2025 FCF ~$104M). Cash and short-term investments were cited at ~$297M (source dataset as of late Q3 2025). Operationally, HL delivered record Q2 2025 sales ~$304M, EPS $0.09, adjusted EBITDA ~$133M, with improving unit costs and margin expansion (company cited ~45% gross margin) as silver and gold prices climbed.

Market Position & Competitive Advantages

Competitive position: HL offers high leverage to silver (management: ~41% of revenue from silver in Q2 2025) with long reserve lives and low-risk jurisdictions (U.S./Canada). Core assets Greens Creek and Lucky Friday are long-life, low-cost, and generate robust cash. Keno Hill is being optimized to 440 tpd by 2028 (management IRR ~35% at $30/oz silver), providing upside if execution and permitting milestones are met. Advantages: premier jurisdictions, scale in U.S. silver, improving balance sheet via debt reduction, strong liquidity and coverage (36+ analysts). Key risks: cyclical exposure to silver/gold prices; Keno Hill ramp-up and tailings capacity permitting (needs additional capacity by 2029); Casa Berardi strategic review adds portfolio uncertainty; recent use of ATM equity to redeem debt increased share count (supply overhang risk); valuation multiples are elevated for a miner (TTM P/E ~78, forward P/E ~46), leaving less margin for error; operational hiccups or commodity pullbacks could compress cash flow. Debt service metrics improved in 2025, but interest coverage has historically been a watch item for this company.

Stock Performance

Price $12.54; 52-week range $4.46–$13.84; currently ~9% below the 52-week high and ~181% above the 52-week low; 1-year change ~+92.9%. Trend: price above 50-DMA ($9.48) and 200-DMA ($6.55), indicating institutional accumulation. Liquidity: average 3-month volume ~25.2M shares; 10-day ~20.5M. Valuation: trailing P/E ~78.4, forward P/E ~46.4, P/B ~3.60; modest dividend yield (~0.16%). The stock staged a powerful advance in 2025 alongside a sharp rally in precious metals and improved quarterly results.

CAN SLIM Analysis

Conclusion

HL currently satisfies several CAN SLIM pillars: strong current quarterly growth (C), improving annual trajectory (A), tangible new catalysts (N) around Keno Hill optimization and debt reduction, leadership status (L), growing sponsorship (I), and favorable metals trend (M). While supply/dilution (S) and elevated valuation are notable risks, the combination of sector tailwinds, operational execution, and balance-sheet improvement argues for a BUY, ideally on constructive pullbacks toward rising support or a high-volume breakout through ~$13.85. Risk management is essential given commodity sensitivity and project execution milestones (Keno Hill, Casa Berardi).