The massive debt reduction and upcoming subsidiary sale are allowing the company to aggressively ramp exploration spending in 2026.
The company’s exposure to silver is set to hit 73%, and will likely go higher in the future.
Shares in Hecla Mining (NYSE: HL) shot higher by 10.8% at 11 a.m. this morning as the market digested the company’s fourth quarter earnings report. It’s no secret that silver prices surged in 2025, but they have retracted somewhat this year as the unsustainable rally lost ground.
Still, if you are a silver bull looking to buy in on the dip — not least as AI data centers are contributing to silver demand — then Hecla’s earnings report and strategic positioning have given you great reason to do so, and many investors took that opportunity today.
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The fourth quarter capped off a remarkable year for the company, in which it reported record revenue of more than $1.4 billion, a 53% increase from 2024. Net income of $321 million dropped down into $310 million in free cash flow, with each of its four mining operations generating cash flow last year.
The cash flow contributed to a massive reduction in net debt over the last year. Having started the year with $524 million in net debt, Hecla ended it with just $34 million in net debt and $242 million in cash, giving it the resources to invest in developing its silver assets.
In addition to the cash flow from the relatively high price of silver, management recently agreed to sell the subsidiary that owns the Casa Berardi gold mine for up to $593 million.
The sale will result in Hecla generating 73% of its revenue from silver ,and that percentage is likely to increase as CEO Rob Krcmarov said “we aim to nearly double our exploration and pre-development spending to $55 million in 2026″ on the earnings release.
The balance sheet improvement and the doubling down on silver increase the company’s exposure to the precious metal, which will please silver bulls.
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Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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