HL Surges 85.9% in 6 Months: Here's How to Play the Stock

Hecla Mining Company’s HL shares have surged 85.9% in the past six months, underperforming the industry and outperforming the S&P 500, which have returned 93.9% and 4.1%, respectively. In comparison, the company’s peers like Pan American Silver Corp. PAAS and First Majestic Silver Corp. AG have gained 64.3% and 173.9%, respectively, over the same time frame.

HL Underperforms Industry & Outperforms S&P 500

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Closing at $20.39 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. The stock is trading above its 200-day moving average but below the 50-day moving average, indicating a strong long-term trend despite some near-term softness.

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

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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, steady operations and focused capital discipline. In 2025, the company produced 17.0 million ounces of silver, up 5% year over year. Also, in 2025, it reported revenues of $1.4 billion, up 53% from the previous year, driven by higher precious metal and zinc prices, and increased sales volumes of precious metals.

The strong quarterly performance 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 quarters ahead is expected to increase due to ongoing projects and early-stage work on the dry-stack tailings expansion project, which is expected to provide storage capacity through 2045 once completed.

HL’s Lucky Friday project also delivered improved performance during the year. The mine’s silver production totaled 5.3 million ounces, driven by higher milled grades and improved throughput. Also, the surface cooling project is advancing and is slated for completion by mid-2026, which should allow access to deeper, higher-grade ore and help extend the mine’s life.

The Keno Hill project showed steady improvement in 2025, producing 3.02 million ounces of silver in 2025, up 9% year over year. The results were supported by better power reliability and higher milling rates. Hecla Mining continues to invest in critical infrastructure to advance Keno Hill toward commercial production, which is supporting the production ramp-up.

HL recently announced that the Polaris Exploration Project in Mineral County, NV, has received approval to begin exploration activities in 2026. Also, 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 in a new structure. These results highlight Midas’ potential as a low-capital-cost growth opportunity and support the expansion of the company’s production profile in a well-established mining district.

Hecla Mining’s strong operating performance translated into solid cash generation during the year. The company generated $562.6 million in operating cash flow and approximately $310.2 million in free cash flow. This cash generation supported continued balance sheet improvement, with HL reducing its debt significantly and lowering net leverage from 0.1x to 1.6x in 2025.

However, the company continues to face cost pressures. HL reported silver all-in-sustaining costs (AISC) per ounce of $11.28 per ounce in 2025. Rising labor costs and sustaining capital investments may pressure margins.

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

Estimate Revisions

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The Zacks Consensus Estimate for HL’s bottom line for the first quarter of 2026 has increased 35% in the past 60 days.

Valuation

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From a valuation standpoint, Hecla Mining is trading at a trailing price-to-earnings ratio of 35.34X compared with the industry average of 18.15X. In comparison, Pan American Silver and First Majestic are trading at 14.88X and 37.17X, respectively.

Conclusion

Solid performance at the Greens Creek, Lucky Friday and Keno Hill mines, coupled with progress across exploration projects, positions Hecla Mining for continued growth. Rising labor and sustaining capital costs are likely to continue to impact this Zacks Rank #3 (Hold) company’s performance in the near term.

While current shareholders should hold their positions, new investors should wait for the stock to retract some of its recent gains and provide a better entry point. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.