Highlights

  • Hecla shows 216.93% one-year basic EPS growth, P/E of 16.87 and PEG of -1.86.
  • Second quarter sales were $333.9 million, up 52%; income from continuing operations was $117.9 million.
  • Hecla redeemed its remaining $263 million of Senior Notes on April 9, 2026.
  • Hecla held $483.5 million in cash with no amount drawn on its credit facility.

One-year earnings growth of 216.93%, paired with a trailing twelve-month P/E of 16.87 and an expected-basis PEG of -1.86, puts Hecla Mining (NYSE:HL) among undervalued growth stocks, with shares trading at USD 14.53 on October 28, 2026, down 0.58%. On the company's side, the silver producer completed the sale of Hecla Quebec on March 25, redeemed the remaining $263 million of its Senior Notes on April 9, and reported second quarter 2026 sales of $333.9 million in early August.

Based in Coeur d'Alene, Idaho, and incorporated in Delaware, Hecla describes itself as North America's premier silver producer, with a heritage dating back to 1891. It discovers, acquires and develops mines and markets concentrates and doré containing silver, gold, lead, zinc and copper. The company is organized in three segments, Greens Creek, Lucky Friday and Keno Hill.

Growth: Second Quarter Earnings, Sales and Silver Production

Income from continuing operations was $117.9 million in the second quarter against $26.9 million a year earlier, and net income applicable to common stockholders was $117.7 million against $57.6 million. Basic income per common share after preferred dividends was $0.18 against $0.09, with continuing operations contributing $0.18 against $0.04. For the six months, income from continuing operations was $282.5 million against $51.2 million, while net income applicable to common stockholders was $98.6 million against $86.3 million after a $183.7 million loss from discontinued operations, primarily a $192.5 million loss on the Hecla Quebec sale.

Sales were $333.9 million in the quarter, up 52%, and $745.3 million for the six months, up 76%. The company said higher metal prices were partly offset by lower sales volumes. Silver production was 4.2 million ounces against 4.5 million, primarily on lower throughput and grades at Greens Creek, where gold production was 14,199 ounces against 17,750.

Valuation: P/E of 16.87, PEG of -1.86 and Management Commentary

The P/E ratio of 16.87 is measured on trailing twelve-month earnings, and the PEG ratio of -1.86 on expected growth. Cash provided by operating activities from continuing operations was $357.8 million for the six months against $136.0 million.

On the August 5 call, Chief Executive Officer Robert Krcmarov said the balance sheet is the strongest in the company's history and gives it the flexibility to keep investing on its own timeline. Chief Financial Officer Russell Lawlar said fuel is about 3% of the consolidated cost structure.

Capital and Balance Sheet: Debt Redemption, Liquidity and Dividends

Hecla held $483.5 million in cash and cash equivalents at June 30, 2026, and $637.9 million in cash, cash equivalents and investments against $349.1 million at December 31, 2025. Nothing was drawn on its $225 million credit facility, which has a $75 million accordion, leaving $221.5 million available after $3.5 million of letters of credit. The April 9 redemption of the 7.25% Senior Notes cost $265.8 million including interest.

The Hecla Quebec sale to Orezone carried a fair value of $385.7 million, including $170.0 million of cash at closing and deferred payments of $30 million and $50 million due 18 and 30 months after closing. Hecla paid $2.5 million in dividends in the second quarter. It has not repurchased shares since June 2014, and 19.1 million shares remain under its 20 million share authorization.

Disclosed Risks and Outlook

Keno Hill has not met the company's definition of commercial production, satisfying one of five criteria. The company estimates the permitting process could be completed by approximately mid-2029, projects that the waste rock production limit could be reached by approximately mid-2027, and said Keno Hill could be placed on care and maintenance if prerequisites are not met or metal prices fall materially.

Quebec authorities issued four Statements of Offence in July 2026 over the 2023 HM3 incident at Casa Berardi, seeking about $2.7 million, and Hecla agreed to reimburse Orezone for related penalties. Hecla also disclosed EPA matters at three sites for which it cannot estimate liability. The company said tariffs have not materially affected results to date.

Hecla estimates 2026 capital investments of about $208 million to $223 million and exploration and pre-development spending of about $55 million. On the call, management guided 2026 silver production to 8 million to 8.3 million ounces at Greens Creek, 4.9 million to 5.2 million ounces at Lucky Friday and 2.2 million to 2.6 million ounces at Keno Hill. A Greens Creek pyrite concentrate circuit remains unapproved.