Hecla Mining's Q3 Sales Soar 67%, Net Income Jumps to $100.7M

TL;DR

**Hecla's Q3 numbers are a goldmine, signaling strong operational leverage and a bullish outlook for precious metals.**

AI Summary

Hecla Mining Company reported a significant increase in financial performance for the three and nine months ended September 30, 2025. Sales for the three months ended September 30, 2025, surged to $409.5 million, up from $245.1 million in the prior year, representing a 67% increase. Net income for the three-month period dramatically rose to $100.7 million, compared to $1.8 million in the same period of 2024. For the nine months ended September 30, 2025, sales reached $974.9 million, a 43% increase from $680.3 million in 2024, and net income grew to $187.3 million, up from $23.9 million. Key business changes include a substantial increase in gross profit to $180.5 million for the three months, from $59.3 million, driven by strong metal sales across all segments, particularly Greens Creek and Casa Berardi. The company also saw a reduction in ramp-up and suspension costs to $3.3 million from $13.7 million. Risks include a significant increase in income and mining tax provision to $54.9 million for the quarter, up from $11.5 million, and a rise in deferred tax liabilities to $196.5 million from $110.3 million. The strategic outlook appears positive, with strong operational performance and increased cash flow from operations, which reached $345.6 million for the nine months, compared to $150.8 million in the prior year.

Why It Matters

This robust performance by Hecla Mining signals strong operational execution and favorable market conditions for precious metals, which could attract significant investor interest. The substantial increase in net income and sales demonstrates the company's ability to capitalize on its mining assets, particularly Greens Creek and Casa Berardi, outperforming competitors who may face higher operational costs or lower commodity prices. For employees, this could mean job security and potential for growth, while customers benefit from a stable supply of metals. The broader market may see this as an indicator of sustained demand in the mining sector, potentially influencing other mining stocks and commodity prices.

Risk Assessment

Risk Level: medium — The risk level is medium due to the significant increase in income and mining tax provision, which jumped to $54.9 million for the three months ended September 30, 2025, from $11.5 million in the prior year. Additionally, deferred tax liabilities nearly doubled to $196.5 million from $110.3 million, indicating potential future tax obligations that could impact profitability despite strong current performance.

Analyst Insight

Investors should consider increasing their exposure to HL-PB, given the substantial growth in sales and net income, and the strong cash flow generation. The company's reduced ramp-up costs and increased gross profit suggest improved operational efficiency, making it an attractive long-term hold in the mining sector.

Financial Highlights

debt To Equity

N/A

revenue

$409.5M

operating Margin

N/A

total Assets

N/A

total Debt

N/A

net Income

$100.7M

eps

N/A

gross Margin

N/A

cash Position

N/A

revenue Growth

+67%

Revenue Breakdown

Key Numbers

• $409.5M — Sales for Q3 2025 (Increased 67% from $245.1M in Q3 2024)
• $100.7M — Net income for Q3 2025 (Increased from $1.8M in Q3 2024)
• $974.9M — Sales for nine months ended Sep 30, 2025 (Increased 43% from $680.3M in 2024)
• $187.3M — Net income for nine months ended Sep 30, 2025 (Increased from $23.9M in 2024)
• $180.5M — Gross profit for Q3 2025 (Increased from $59.3M in Q3 2024)
• $3.3M — Ramp-up and suspension costs for Q3 2025 (Decreased from $13.7M in Q3 2024)
• $54.9M — Income and mining tax provision for Q3 2025 (Increased from $11.5M in Q3 2024)
• $196.5M — Deferred tax liabilities as of Sep 30, 2025 (Increased from $110.3M as of Dec 31, 2024)
• $345.6M — Net cash provided by operating activities for nine months ended Sep 30, 2025 (Increased from $150.8M in 2024)
• 670,098,670 — Common shares outstanding as of Nov 3, 2025 (Indicates share count)

Key Players & Entities

• HECLA MINING COMPANY (company) — Registrant as Specified in its Charter
• Greens Creek (company) — mining segment
• Lucky Friday (company) — mining segment
• Keno Hill (company) — mining segment
• Casa Berardi (company) — mining segment
• New York Stock Exchange (regulator) — exchange where securities are registered
• SEC (regulator) — Securities and Exchange Commission
• President and Chief Executive Officer (person) — Chief Operating Decision Maker (CODM)

FAQ

Risk Factors

• Increased Tax Provisions [high — financial]: The company experienced a significant increase in its income and mining tax provision, rising to $54.9 million for Q3 2025 from $11.5 million in the prior year. This substantial jump impacts profitability and cash flow.
• Rising Deferred Tax Liabilities [medium — financial]: Deferred tax liabilities increased to $196.5 million as of September 30, 2025, up from $110.3 million at the end of 2024. This indicates a growing future tax obligation that could affect long-term financial health.
• Mine Safety and Compliance [medium — operational]: The company is subject to stringent mine safety regulations. Any incidents or failures to comply could result in significant fines, operational disruptions, and reputational damage.
• Commodity Price Volatility [high — market]: As a mining company, Hecla's financial performance is highly sensitive to fluctuations in the prices of metals such as silver, gold, lead, and zinc. Significant price drops could negatively impact revenue and profitability.

Industry Context

The mining industry is cyclical and heavily influenced by global commodity prices for metals like silver, gold, lead, and zinc. Companies like Hecla Mining operate in a competitive landscape requiring significant capital investment, efficient operations, and adherence to strict environmental and safety regulations. Recent trends show a demand for precious metals driven by inflation hedging and industrial applications, while base metals are influenced by global economic growth and supply chain dynamics.

Regulatory Implications

Hecla Mining operates under a complex web of regulations related to environmental protection, mine safety, and labor practices. Compliance is critical, as violations can lead to substantial fines, operational shutdowns, and reputational damage. Changes in tax laws or mining regulations in the jurisdictions where the company operates can also significantly impact profitability and operational costs.

What Investors Should Do

1. Monitor commodity price trends
2. Analyze tax provision and deferred tax liabilities
3. Evaluate operational efficiency and cost management

Key Dates

• 2025-09-30: Quarter and Nine Months Ended — Reporting period for the significant increase in sales and net income, driven by strong metal prices and operational performance.
• 2025-11-03: Common Shares Outstanding — Indicates the total number of shares outstanding as of this date, relevant for per-share calculations and market capitalization.

Glossary

By-product Credits

Revenue generated from the sale of metals that are incidentally produced during the mining of a primary metal. These credits reduce the overall cost of production for the primary metal. (Used in calculating cash costs and all-in sustaining costs, impacting the reported profitability of mining operations.)

All-In Sustaining Cost (AISC)

A non-GAAP measure that reflects the total costs of producing a metal, including operating costs, sustaining capital expenditures, and other costs, net of by-product credits. (Provides a more comprehensive view of the true cost of production and profitability per ounce/pound of metal mined.)

Deferred Tax Liabilities

Taxes that are owed but have not yet been paid. These arise from temporary differences between accounting income and taxable income. (An increase in deferred tax liabilities suggests higher future tax payments, impacting the company's long-term financial obligations.)

Year-Over-Year Comparison

Hecla Mining Company has demonstrated a substantial improvement in financial performance compared to the prior year. Revenue for the three months ended September 30, 2025, surged by 67% to $409.5 million, and net income saw a dramatic increase to $100.7 million from $1.8 million. This growth is attributed to strong metal sales and a reduction in ramp-up and suspension costs. However, a notable increase in the income and mining tax provision to $54.9 million and a rise in deferred tax liabilities to $196.5 million present new financial considerations.

Key Financial Figures

• $0.25 — ch registered Common Stock, par value $0.25 per share HL New York Stock Exchang
• $7,889 — d outstanding, liquidation preference — $7,889 39 39 Common stock, $ 0.25 par va

Filing Documents

• hl-20250930.htm (10-Q) — 6570KB
• hl-ex31_1.htm (EX-31.1) — 17KB
• hl-ex31_2.htm (EX-31.2) — 17KB
• hl-ex32_1.htm (EX-32.1) — 10KB
• hl-ex32_2.htm (EX-32.2) — 11KB
• hl-ex95.htm (EX-95) — 75KB
• img157652304_0.jpg (GRAPHIC) — 366KB
• img157652304_1.jpg (GRAPHIC) — 336KB
• img157652304_2.jpg (GRAPHIC) — 376KB
• img157652304_3.jpg (GRAPHIC) — 379KB
• img157652304_4.jpg (GRAPHIC) — 303KB
• img157652304_5.jpg (GRAPHIC) — 309KB
• 0001193125-25-267093.txt ( ) — 23169KB
• hl-20250930.xsd (EX-101.SCH) — 1543KB
• hl-20250930_htm.xml (XML) — 3919KB

Financial Statements (Unaudited)

Financial Statements (Unaudited) 3 Condensed Consolidated Statements of Operations and Comprehensive Income - Three Months Ended and Nine Months Ended September 30, 2025 and 2024 3 Condensed Consolidated Statements of Cash Flows - Nine Months Ended September 30 , 2025 and 2024 4 Condensed Consolidated Balance Sheets - September 30, 2025 and December 31, 2024 5 Condensed Consolidated Statements of Changes in Stockholders' Equity – Three Months Ended and Nine Months Ended September 30, 2025 and 2024 6 Notes to Condensed Consolidated Financial Statements (unaudited) 8

Forward-Looking Statements

Forward-Looking Statements 24 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 25 Overview 25 Consolidated Results of Operations 27 Reconciliation of Total Cost of Sales to Cash Cost, Before By-product Credits and Cash Cost, After By-product Credits (non-GAAP) and All-In Sustaining Cost, Before By-product Credits and All-In Sustaining Cost, After By-product Credits (non-GAAP) 43 Financial Liquidity and Capital Resources 54 Contractual Obligations, Contingent Liabilities and Commitments 56 Critical Accounting Estimates 56 Off-Balance Sheet Arrangements 56 Guarantor Subsidiaries 57 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 60 Item 4.

Controls and Procedures

Controls and Procedures 61 PART II. OTHER INFORMATION 62 Item 1.

Legal Proceedings

Legal Proceedings 62 Item 1A.

Risk Factors

Risk Factors 62 Item 4. Mine Safety Disclosures 63 Item 5. Other Information 63 Item 6. Exhibits 64

Signatures

Signatures 65 *Items 2 and 3 of Part II are omitted as they are not applicable. 2

- Fin ancial Information

Part I - Fin ancial Information

Fina ncial Statements

Item 1. Fina ncial Statements Hecla Mining Company Condensed Consol idated Statements of Operations and Comprehensive Income (Unaudited) (Dollars and shares in thousands, except for per-share amounts) Three Months Ended Nine Months Ended September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024 Sales $ 409,542 $ 245,085 $ 974,908 $ 680,270 Cost of sales and other direct production costs 180,451 144,855 476,745 406,780 Depreciation, depletion and amortization 48,624 40,944 124,168 143,614 Total cost of sales 229,075 185,799 600,913 550,394 Gross profit 180,467 59,286 373,995 129,876 Other operating expenses: General and administrative 13,872 10,401 38,411 36,357 Exploration and pre-development 9,554 10,553 22,864 21,577 Ramp-up and suspension costs 3,257 13,679 10,728 33,740 Provision for closed operations and environmental matters 1,268 1,542 2,902 3,681 Other operating expense (income), net 3,871 636 4,334 ( 33,618 ) Total other operating expenses 31,822 36,811 79,239 61,737 Income from operations 148,645 22,475 294,756 68,139 Other income (expense): Interest expense ( 13,405 ) ( 10,901 ) ( 36,055 ) ( 36,050 ) Fair value adjustments, net 17,625 3,654 30,867 6,804 Net foreign exchange gain (loss) 305 ( 3,246 ) ( 3,568 ) 3,409 Other income 2,433 1,229 4,886 3,921 Total other income (expense) 6,958 ( 9,264 ) ( 3,870 ) ( 21,916 ) Income before income and mining taxes 155,603 13,211 290,886 46,223 Income and mining tax provision ( 54,877 ) ( 11,450 ) ( 103,583 ) ( 22,345 ) Net income 100,726 1,761 187,303 23,878 Preferred stock dividends ( 138 ) ( 138 ) ( 414 ) ( 414 ) Net income applicable to common stockholders $ 100,588 $ 1,623 $ 186,889 $ 23,464 Comprehensiv

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