HL Stock Surges 62% in 3 Months: Should You Buy the Stock Now?

Hecla Mining Company’s HL shares have surged 62% in the past three months, underperforming the industry and outperforming the S&P 500, which have returned 65.7% and 2.2%, respectively. In comparison, the company’s peers like Avino Silver & Gold Mines Ltd. ASM and First Majestic Silver Corp. AG have gained 134.4% and 98.9%, respectively, over the same time frame.

HL Outperforms Industry & S&P 500

Closing at $23.94 in the last trading session, the stock is trading below its 52-week high of $34.17 but significantly higher than its 52-week low of $4.46. It is trading above both its 50-day and 200-day moving averages, indicating solid upward momentum and confidence in the company's long-term prospects.

HL Stock’s 50-Day & 200-Day Moving Averages

Let’s take a look at HL’s fundamentals to better analyze how to play the stock.

Factors Driving Hecla Mining’s Performance

HL continues to strengthen its position as a leading North American precious metals producer, supported by strong silver prices, stable operations and disciplined capital deployment. Per the latest production report, in 2025, the company produced 17.0 million ounces of silver, up 5% from the previous year. 

The increase in silver production was mainly driven by Hecla Mining’s core operating assets, led by the Greens Creek mine in Alaska. During 2025, Greens Creek produced 8.7 million ounces of silver, up 3% compared with 2024. Also, capital investment at Greens Creek in the fourth quarter of 2025 is expected to have increased due to ongoing projects and early-stage work on the dry-stack tailings expansion project.

HL’s Lucky Friday project also delivered improved performance during the year. The mine produced 5.3 million ounces of silver, driven by higher milled grades and throughput. The surface cooling project at the mine continues to progress and is expected to be completed in the first half of 2026, which should allow access to deeper, higher-grade ore and extend the mine life.

The Keno Hill project also continued to show steady improvement during 2025. The mine produced 3.02 million ounces of silver in the year (up 9% year over year), supported by improved power reliability and higher milling rates. HL continues to advance Keno Hill toward commercial production through ongoing investment in critical infrastructure.

In January 2026, the company agreed to sell the Casa Berardi operation in Quebec, Canada, for up to $593 million in total consideration. The move advances Hecla Mining's strategic transformation to focus on its premier silver assets and is expected to strengthen its financial position. 

Also, HL’s Polaris Exploration Project in Mineral County, NV, has received approval to begin exploration activities in 2026. In addition, early drilling at the Midas Project in Nevada has delivered encouraging results. Initial drilling along the previously untested two-mile-long Pogo Trend identified high-grade gold mineralization, including visible gold on a new structure. These results highlight the potential for Midas to grow well while needing only a small amount of capital and support the expansion of HL’s production profile in a well-established mining district.

In the third quarter of 2025, the company reported revenues of $409.5 million, up 35% on a sequential basis, driven by higher metal prices and increased sales volumes of precious metals. Also, Hecla Mining delivered strong cash generation in the third quarter, driven by solid operating performance. The company generated $148 million in operating cash flow and approximately $90 million in free cash flow. This cash generation supported continued balance sheet improvement. HL reduced its debt significantly and lowered net leverage from 0.7x to 0.3x at the end of third-quarter 2025.

However, the company continues to face cost pressures. Hecla Mining reported an increase in its all-in-sustaining costs (AISC) per ounce, a key indicator of cost efficiency in mining. It reported silver AISC of $11.01 per ounce in the third quarter, significantly up from $5.19 in the previous quarter. Higher labor costs and increased sustaining capital spending led to elevated operating expenses during the quarter.

HL operates in the highly competitive silver mining market, which includes major industry players such as Avino Silver and First Majestic.

It is worth noting that HL is scheduled to release fourth-quarter 2025 results on Feb. 17, after market close.

Estimate Revisions

The Zacks Consensus Estimate for HL’s bottom line for 2026 has increased 56.1% in the past 60 days.

Valuation

From a valuation standpoint, Hecla Mining is trading at a trailing price-to-earnings ratio of 37.98X compared with the industry average of 19.84X. In comparison, Avino Silver and First Majestic are trading at 30.18X and 61.31X, respectively.

Conclusion

Strong performance at Greens Creek, Lucky Friday and Keno Hill mines and exploration projects positions Hecla Mining for sustained growth in the quarters ahead. While rising costs remain a concern, as silver AISC increased sharply amid higher labor and sustaining capital expenses, its diversified asset base, improving operational performance and expanding exploration pipeline are likely to support its fourth-quarter 2025 results. HL’s strong liquidity profile and a strengthened balance sheet suggest it is the appropriate time for potential investors to bet on this Zacks Rank #2 (Buy) company.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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