Hecla Mining Company
Materials · Silver
Structural: largest US-domiciled primary silver producer (~45% silver, balance gold/lead/zinc byproducts), exposed to industrial silver demand from solar PV (~20% of global silver offtake) and electrification, plus monetary silver beta when real rates compress.
Greens Creek is a top-10 global silver mine by reserves; Lucky Friday adds high-grade silver concentrate; Casa Berardi provides gold optionality and free cash flow diversification.
- Silver supply deficit structural - 4th consecutive year of physical undersupply per Silver Institute, industrial demand (solar, EVs, 5G) growing faster than mine output
- Operating leverage to silver price: at $30+/oz silver Greens Creek + Lucky Friday cash costs run negative after byproduct credits
- Keno Hill ramp adds ~4-5 Moz/yr silver production at high grades through 2027
- US-domiciled assets become strategic premium if critical minerals policy expands to silver (solar supply chain reshoring)
- Silver is volatile (60-90 day realized vol regularly 35-50%), HL beta to silver ~1.8x - drawdowns are violent
- Lucky Friday seismic/operational history (2017 shutdown, 2023 fire) - single-mine risk is real
- Byproduct economics mean gold/lead/zinc prices can swing cash cost narrative independently of silver
- Capex cycle through Keno Hill ramp + Casa Berardi transition (open pit to underground) keeps FCF lumpy
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