3. Hecla Mining Company (NYSE:HL)
Average Upside Potential: 46%
Number of Hedge Fund Holders: 27
With a robust portfolio of top-tier, long-lived mines, Hecla Mining Company (NYSE:HL) is the largest silver producer in the United States. Contributing to Hecla’s influential lead in the silver industry, its operations are anchored by its flagship Greens Creek mine in Alaska, Lucky Friday in Idaho, and Keno Hill in Canada. Hecla retains its position as a key player in the sector due to its continuous production growth and substantial silver reserves.
Driven by rising metal prices, Hecla Mining Company (NYSE:HL) achieved silver production of 16.2 million ounces, the second-highest in its history, as of the fourth quarter ended December 31, 2024. The company achieved record revenues of $929.9 million and adjusted EBITDA of $337.9 million, despite missing analysts’ earnings forecasts with a basic income of $0.06 per share versus the expected $0.11.
In 2024, Greens Creek generated 8.5 million ounces of silver, positioning itself as the company’s key asset. In the fourth quarter, due to equipment difficulties, the company encountered marginal setbacks, but it is forecasted to regain equilibrium by 2025. Lucky Friday set a production record by yielding 4.9 million ounces of silver owing to its strong operational performance. However, a trend that is forecasted to persist into 2025 is higher all-in-sustaining costs.
While struggling to navigate hurdles such as ramp-up challenges, power constraints, and permitting delays, Hecla Mining Company (NYSE:HL)’s primary growth project, Keno Hill, yielded 2.8 million ounces of silver. Developing a strategy to increase throughput to 440 tons per day by 2026, the company maintains its commitment to securing sustainable output levels at the site. Simultaneously, Hecla bolstered its long-term growth potential by expanding its silver reserve to 240 million ounces.
Hecla Mining Company (NYSE:HL) made a pivotal move to terminate its silver-linked dividend, despite its strong operational performance. At Keno Hill specifically, the company plans to invest in organic growth prospects. This step is well integrated with its core focus on stakeholder engagement, innovation, and capital discipline.
The stock remains a compelling option among silver mining equities as analysts forecast a 46% upside. Hence, Hecla Mining serves as a top choice in the Ten Best Junior Silver Mining Stocks to Buy.
