Hecla enters 2026 with ultra-low silver costs from Greens Creek and stable output, but execution at higher-cost mines remains critical to sustaining growth.
Hecla Mining Company HL enters 2026 with a differentiated cost profile in the silver space, underpinned by strong by-product credits and supported by steady production scale following a record 2025. This combination positions the company to better withstand commodity cycles than many peers.
Greens Creek remains Hecla’s primary cost driver, with by-product credits from zinc, lead and gold significantly lowering reported silver costs. This structure supports margins in weaker pricing environments and enhances profitability during upcycles.
In fourth-quarter 2025, the mine produced about 2 million ounces of silver at an AISC of $2.70 per ounce. For the full year, AISC was negative $2.36 per ounce. Management expects 2026 AISC of $0.00–$0.50 per ounce, keeping Greens Creek firmly positioned as a low-cost anchor.
For 2026, the company forecasts silver cash costs between negative $1.50 and negative $1.25 per ounce, alongside consolidated AISC of $15.00-$16.25 per ounce. Management also flagged upside potential if by-product prices remain above planning assumptions.
The Zacks Consensus Estimate for HL’s 2026 earnings indicates year-over-year growth of 40.8% and the same for 2027 suggests a decline of 47.1%
Image Source: Zacks Investment Research
Within the broader silver mining landscape, cost stability is often influenced by portfolio composition and exposure to by-products. Pan American Silver Corp. PAAS leverages a diversified asset base across the Americas to mitigate operational volatility while First Majestic Silver Corp. AG maintains a more geographically concentrated portfolio in Mexico, which can increase sensitivity to local operating conditions and mine sequencing.
The company produced around 17 million ounces of silver in 2025, up 5% from the prior year, with growth led by Greens Creek, Lucky Friday and Keno Hill.
For 2026, production is guided at 15.1–16.5 million ounces, indicating a largely stable base as the company advances permitting and development work. The sale of Casa Berardi sharpens focus on core silver assets, increasing leverage to silver prices and by-product credits. The company is now debt-free after redeeming senior notes, improving financial flexibility for future investments.
Hecla’s longer-dated visibility is being supported by permitting progress and mine-life initiatives. The company’s project pipeline supports the potential of 20 million ounces over the medium term with further (long-term) upside potential.
Challenges remain at certain operations. Lucky Friday continues to face high costs, with 2026 AISC guidance of $23.50–$26.00 per ounce, above 2025 levels.
Keno Hill is another focus area. While profitable in 2025, sustainable returns require throughput of 500–600 tons per day. The mine operated below its permitted 440 tons per day in 2025, making consistent throughput and permitting execution critical.
Hecla’s 2026 outlook is anchored by Greens Creek’s low-cost advantage and a stable production base. While a stronger balance sheet and growth initiatives support the long-term story, execution at higher-cost assets and operational improvements at Keno Hill will be key to delivering value.
Hecla currently carries a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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