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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%.
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.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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