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Dec 31, 2024
Hecla Q4 2024 Earnings Report
Hecla reported strong revenue growth and returned to profitability in Q4 2024.
Key Takeaways
Hecla delivered a significant YoY revenue increase, driven by higher silver production and realized prices. The company achieved profitability with a net income of $11.79M, a strong improvement from last year’s loss. Free cash flow turned positive, and Hecla continued deleveraging.
Revenue increased by 55.4% YoY to $249.66M.
Net income rebounded to $11.79M from a $43.07M loss in Q4 2023.
Free cash flow turned positive at $6.69M.
Operating margin improved significantly to 15.3%.
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 stable silver production in 2025 and aims for continued balance sheet improvements. However, operational challenges at Keno Hill and Casa Berardi’s transition to an open-pit-only operation may impact short-term profitability.
Positive Outlook
- 2025 silver production guidance of 15.5-17.0Moz.
- Expected gold production of 120-130koz.
- Cash cost guidance of $3.00-$3.25 per silver ounce.
- CapEx of $222-$242M focused on operational improvements.
- Strong demand fundamentals with silver in a supply deficit for the fifth consecutive year.
Challenges Ahead
- Keno Hill facing permitting delays and power supply issues.
- Casa Berardi transitioning to open-pit-only operation, impacting output.
- Higher labor and power costs at Greens Creek affecting margins.
- Lucky Friday’s costs expected to remain elevated.
- Higher sustaining capital spend in 2025, impacting free cash flow.
Revenue & Expenses
Visualization of income flow from segment revenue to net income