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Jun 30
Hecla Q2 2025 Earnings Report
Hecla reported record quarterly revenue, record Adjusted EBITDA, and record free cash flow in Q2 2025, with Keno Hill achieving its first positive free cash flow quarter and Lucky Friday setting a new milling record.
Key Takeaways
Hecla Mining Company delivered exceptional financial and operational results in the second quarter of 2025, achieving record revenue of $304.0 million, record Adjusted EBITDA of $132.5 million, and record free cash flow of $103.8 million. The company significantly improved its net leverage ratio to 0.7x and saw increased silver and gold production, with all producing assets contributing positively to cash generation.
Record quarterly revenue of $304.0 million, a 16% increase over the prior quarter, driven by higher realized metal prices and increased precious metals sales volumes.
Achieved record Adjusted EBITDA of $132.5 million and record quarterly free cash flow of $103.8 million, with all producing assets contributing positively.
Net leverage ratio significantly improved to 0.7x from 1.5x in the prior quarter, reflecting strong EBITDA generation and a decrease in net debt.
Increased production volumes with silver up 10% to 4.5 million ounces and gold up 34% to 45,895 ounces quarter-over-quarter, alongside strong cost performance at Greens Creek and Lucky Friday.
Hecla
Hecla
Hecla Revenue by Segment
Revenue by Segment
Greens Creek Revenue
CapyFin.comLucky Friday Revenue
CapyFin.comKeno Hill Revenue
CapyFin.comCasa Berardi Revenue
CapyFin.com Forward Guidance
Hecla expects consolidated silver production of 15.5-17.0 million ounces and revised gold production up to 126-137 thousand ounces for 2025. Cost guidance for consolidated silver cash cost and AISC has been lowered, while capital investment remains unchanged.
Positive Outlook
- Gold production guidance for 2025 increased to 126-137 koz from 120-130 koz.
- Consolidated silver cash cost guidance lowered to ($1.25)-($0.75)/oz from $3.00-$3.25/oz.
- Consolidated silver AISC guidance lowered to $11.50-$13.50/oz from $15.75-$17.00/oz.
- Greens Creek's gold production guidance increased to 50.0-55.0 koz from 44.0-48.0 koz.
- Casa Berardi's stripping ratio is expected to decline in Q4 2025, further reducing costs.
Challenges Ahead
- Keno Hill's production could be lowered by approximately 90,000 ounces of silver in Q3 due to planned August YEC maintenance downtime.
- Lucky Friday's Q3 production is expected to be the lightest of the year due to planned hoist availability impact from the surface cooling project.
- Casa Berardi is expected to have a production gap from 2027 until 2032 or later, assuming no underground mine life extension.
- Greens Creek will shift to partial self-generated power in early July for 8 weeks, which is more costly than purchased power, increasing costs during this period.
- Capital investment is expected to increase in Q3 across all operations due to seasonal construction activities.
Revenue & Expenses
Visualization of income flow from segment revenue to net income