Hecla Mining Company (HL) Q4 2024 earnings summary

Executive summary

• Achieved record revenues in 2024, with sales between $900 million and $929.9 million, driven by higher metal prices and strong contributions from all four operating mines.

• Consolidated silver production reached 16.2 million ounces, the second highest in company history, and gold production exceeded guidance at 142,000 ounces.

• Net income was $35.3 million, a turnaround from a loss in 2023, and adjusted EBITDA reached a record $337.9 million.

• Strategic review of Casa Berardi is underway, with a transition to surface mining planned for 2025 to improve economics.

• Eliminated silver-linked dividend to prioritize reinvestment in organic growth and deleveraging.

Financial highlights

• 2024 revenues totaled up to $929.9 million, with silver accounting for 44% of revenues.

• Free cash flow for 2024 was $3.8 million, a $152 million improvement over 2023, with $228 million generated from Greens Creek and Lucky Friday.

• Adjusted EBITDA for 2024 was $337.9 million, up 62% year-over-year.

• Net leverage ratio improved to 1.6x from 2.7x, with net debt reduced to $523.8 million.

• Cash costs per silver ounce were $2.72, and AISC per silver ounce was $13.06, both within guidance.

Outlook and guidance

• 2025 consolidated silver production expected at 15.5–19.5 million ounces, with Greens Creek 8.1–8.8 Moz, Lucky Friday 4.7–5.1 Moz, Keno Hill 2.7–3.1 Moz.

• Gold production expected to decrease to 120–130 thousand ounces due to Casa Berardi's transition to surface-only mining.

• Capital investment guidance for 2025 is $222–$242 million, focused on sustaining core assets and advancing growth initiatives.

• Modest increase in consolidated cost per ounce anticipated due to higher labor and power costs.

• Casa Berardi expected to generate strong free cash flow in H2 2025 as strip ratio declines.