Core Viewpoint - Hecla Mining Company is set to report its fourth-quarter 2025 results on February 17, with earnings expected to increase by 250% year-over-year, driven by higher silver production and favorable market conditions [1][5][17]. Financial Performance - The Zacks Consensus Estimate for earnings is 14 cents per share, with revenues projected at $358.5 million, reflecting a year-over-year increase of 43.6% [1]. - Fourth-quarter earnings estimates have risen by 1 cent over the past 60 days, indicating positive momentum [1]. - Hecla Mining has a trailing four-quarter earnings surprise average of 25.6%, having beaten estimates in each of the last four quarters [2]. Production and Operations - In 2025, Hecla Mining produced 17.0 million ounces of silver, a 5% increase from the previous year, primarily from the Greens Creek and Lucky Friday mines [5][6]. - The Greens Creek mine produced 8.7 million ounces of silver, up 3% compared to 2024, while the Lucky Friday project produced 5.3 million ounces, benefiting from higher milled grades [7][8]. - The Keno Hill project also saw a 9% increase in silver production, totaling 3.02 million ounces, supported by improved power reliability and higher milling rates [9]. Cost and Margin Pressures - Hecla Mining is facing increased all-in sustaining costs (AISC) per ounce due to higher labor costs and capital spending, which may impact margins in the fourth quarter [10]. - Despite cost pressures, the company is focused on disciplined capital deployment and improving mine performance to support revenue growth [17]. Market Performance - Hecla Mining's shares have surged 172.8% over the past six months, outperforming both the industry and the S&P 500 [11]. - The company's trailing price-to-earnings ratio stands at 33.17X, higher than the industry average of 19.77X, indicating a premium valuation compared to peers [14]. Investment Outlook - The company is well-positioned for sustained growth due to strong performance at key mines and favorable silver prices, which are expected to drive revenue growth [17][18]. - Positive analyst sentiment and robust growth prospects suggest that Hecla Mining is a strong candidate for investment [18].

Core Insights - Hecla Mining Company's (HL) shares have increased by 62% over the past three months, underperforming the industry but outperforming the S&P 500 [1] - The company's peers, Avino Silver & Gold Mines Ltd. (ASM) and First Majestic Silver Corp. (AG), have seen gains of 134.4% and 98.9%, respectively, during the same period [1] Stock Performance - HL closed at $23.94, below its 52-week high of $34.17 and significantly above its 52-week low of $4.46 [4] - The stock is trading above both its 50-day and 200-day moving averages, indicating strong upward momentum [4] Production and Financial Performance - In 2025, HL's silver output increased by 5% to 17.0 million ounces, driven by core assets like Greens Creek, Lucky Friday, and Keno Hill [9][10] - The company reported Q3 2025 revenues of $409.5 million, a 35% increase sequentially, supported by higher metal prices and increased sales volumes [15] - Operating cash flow for Q3 was $148 million, with free cash flow around $90 million, contributing to a reduction in net leverage from 0.7x to 0.3x [15] Cost and Operational Challenges - Hecla Mining reported an increase in all-in-sustaining costs (AISC) for silver to $11.01 per ounce in Q3, up from $5.19 in the previous quarter, due to higher labor costs and increased capital spending [16] - The company operates in a competitive silver mining market, facing challenges from major players like Avino Silver and First Majestic [17] Strategic Moves - In January 2026, HL agreed to sell the Casa Berardi operation for up to $593 million, aiming to focus on premier silver assets and strengthen its financial position [13] - The Polaris Exploration Project has received approval for exploration activities in 2026, and early drilling at the Midas Project has shown promising results [14] Valuation and Market Position - Hecla Mining's trailing price-to-earnings ratio is 37.98X, compared to the industry average of 19.84X, with peers trading at 30.18X and 61.31X [21] - The Zacks Consensus Estimate for HL's bottom line for 2026 has increased by 56.1% in the past 60 days, indicating positive market sentiment [19] Conclusion - Strong performance from key mines and ongoing exploration projects position Hecla Mining for sustained growth, despite rising costs [22] - The company's improved liquidity and balance sheet suggest it may be an attractive option for potential investors [22]

Earnings Overview - More than half of the S&P 500 companies have reported Q4 earnings, with 79% of the 293 companies beating expectations [1] - S&P earnings growth is projected to increase by +8.4% in Q4, marking the tenth consecutive quarter of year-over-year growth [1] - Excluding the Magnificent Seven technology stocks, Q4 earnings are expected to rise by +4.6% [1] Economic Indicators - The Q4 employment cost index is expected to rise by 0.8% [2] - December retail sales are anticipated to increase by +0.4% month-over-month [2] - January nonfarm payrolls are expected to rise by +69,000, with the unemployment rate remaining at 4.4% [2] - January average hourly earnings are projected to increase by +0.3% month-over-month and +3.7% year-over-year [2] - Initial weekly unemployment claims are expected to decrease by -7,000 to 224,000 [2] - January CPI is expected to rise by +2.5% year-over-year [2] Market Movements - The S&P 500 Index is up +0.46%, the Dow Jones is up +0.09%, and the Nasdaq 100 is up +0.61% [6] - Overseas markets are also showing positive movements, with the Euro Stoxx 50 up +0.66% and Japan's Nikkei Stock 225 up +3.89% [7] Sector Performance - Chip makers and AI-infrastructure stocks have rebounded, with Nvidia up more than +3% and AMD, Broadcom, and Western Digital up more than +2% [12] - Mining stocks are performing well, with gold prices up more than +1% and silver prices up more than +6% [13] - AppLovin is up more than +13% after positive client performance news [13] - Oracle is up more than +9% following an upgrade to buy from neutral [14] Company-Specific News - Dynatrace reported Q3 revenue of $515.5 million, exceeding consensus estimates, and raised its full-year revenue forecast [15] - Kyndryl Holdings is down more than -54% after reporting lower-than-expected Q3 revenue and cutting its profit estimate [16] - Hims & Hers Health is down more than -23% after halting sales of a new product [17] - Monday.com is down more than -21% after forecasting lower Q4 revenue [17]

Industry Overview - The Zacks Mining - Silver industry is experiencing strong momentum due to rising silver prices and robust demand from industrial applications, which are expected to account for a significant share of global silver consumption [1][4] - Only 20% of silver comes from mining activities where it is the primary revenue source, while the rest is a by-product of mining other metals [3] Demand Drivers - Industrial applications, particularly in the solar energy sector, account for approximately 59% of total silver demand, with significant growth expected due to the global push for renewable energy [4] - The electrification of the automotive industry and the rise of AI are emerging as new demand drivers for silver, solidifying its role as a critical metal for future technologies [4] Price Performance - Silver prices surged by 170% in 2025, significantly outperforming gold, driven by geopolitical risks, economic uncertainty, and strong demand [4] - As of late January 2026, silver reached a record high of $121.67 per ounce, with prices up 16.4% year-to-date [4] Cost Management - Industry players are facing rising production costs, particularly in energy, which constitutes about 50% of their production costs [5] - Companies are investing in R&D and technological innovations to improve efficiency and manage costs effectively [5] Industry Ranking - The Zacks Mining - Silver industry holds a Zacks Industry Rank of 16, placing it in the top 7% of 244 Zacks industries, indicating strong prospects in the near term [6] Stock Performance - The Mining-Silver Industry has outperformed both the Basic Material sector and the Zacks S&P 500 composite over the past year, with a collective gain of 162.9% compared to 35.7% and 18% respectively [8] Valuation Metrics - The industry is currently trading at a trailing 12-month EV/EBITDA ratio of 22.67X, higher than the S&P 500's 19.17X and the Basic Material sector's 16.32X [11] Company Highlights - **Fresnillo plc (FNLPF)**: Reported silver production of 48.7 million ounces in 2025, with shares gaining 85.2% in the past three months. The Zacks Consensus Estimate for fiscal 2026 earnings has increased by 16.7% [15][16] - **Buenaventura Mining (BVN)**: Initiated operations at the San Gabriel gold mine, with shares up 72.9% in the past three months. The Zacks Consensus Estimate for fiscal 2026 earnings has risen by 35.8% [20][21] - **Hecla Mining (HL)**: Produced 17 million ounces of silver in 2025, with shares increasing by 95.8% in the past three months. The Zacks Consensus Estimate for fiscal 2026 earnings indicates growth of 56.5% [22][25] - **Avino Silver Mines (ASM)**: Produced 2.6 million silver equivalent ounces in 2025, with shares gaining 152.4% in the past three months. The Zacks Consensus Estimate for fiscal 2026 earnings has moved up by 68% [27][28]

Core Viewpoint - The recent decline in metals and mining shares, particularly on January 30th, was significant but should not lead to panic as the long-term fundamentals remain strong for precious metals like gold and silver [5][6][27]. Group 1: Market Performance - On January 30th, prices for silver, gold, platinum, and copper fell sharply, along with mining shares [6][21]. - Despite the drop, gold and silver still set monthly record highs, with gold rising from $4,000 in early November to over $4,600 by the end of January, representing a 15% increase [11][13]. - Silver prices increased from $48 per ounce in early November to $78 at the end of January, marking a 60% gain, despite a drop after the recent sell-off [11][13]. Group 2: Supply and Demand Dynamics - The surge in silver prices was driven by a structural long-term deficit in mine and refinery production, coupled with increasing industrial demand from sectors like electronics and renewable energy [18]. - The market is currently facing a situation where there are approximately 350 paper contracts for every real ounce of silver, indicating a significant disparity between paper and physical metal availability [31]. Group 3: Investment Strategy - Investors are advised to hold onto physical silver and gold, as the current market dynamics favor real metal over paper contracts [31][37]. - The Sprott Physical Silver Trust (PSLV) is highlighted as a viable investment option, as it owns physical silver, which is seen as a more stable asset in the current market [33]. - The recent sell-off in mining shares presents a buying opportunity for strong companies with solid management and profitable operations, as many are still generating significant earnings despite market fluctuations [32].

Group 1 - The core viewpoint of the article highlights the rise in British precious metal mining stocks on February 3, with notable increases in share prices for several companies [1] Group 2 - Antofagasta shares increased by 4.8% [1] - Fresnillo shares rose by 4.6% [1] - Hochschild Mining shares saw a rise of 3.7% [1]

Core Viewpoint - Hecla Mining experienced significant financial improvement in 2025 due to rising silver and gold prices, leading to a 290% increase in share price, but the company is unlikely to change its dividend policy despite improved cash flow [1][3]. Group 1: Company Performance - Hecla Mining's primary focus is on silver, which contributed approximately 48% of its revenues in Q3 2025, followed by gold at 37% [2]. - The company's sales increased by 67% year over year in Q3 2025, transitioning from break-even to earnings of $0.15 per share [3]. - The current market capitalization of Hecla Mining is $15 billion, with a gross margin of 33.05% and a dividend yield of 0.07% [5]. Group 2: Dividend Policy - Hecla Mining's current dividend policy is set at $0.015 per share per year, with no expected changes despite improved financial results [5][7]. - Unlike some peers, Hecla's dividend is not tied to commodity prices or financial performance, making it a discretionary decision by the Board of Directors [7]. - Given the recent decline in silver and gold prices, investors should not anticipate a significant increase in dividends from Hecla Mining [9].

Silver Market Overview - Silver prices have tripled in the past year, rising from around $30 in late January 2025 to over $100 today, driven by its status as a safe haven and hedge against inflation [1] - There is a significant shortage of physical silver, estimated at 95 million ounces in 2025, due to soaring demand for technologies like solar panels and electric vehicles [1] Investment Strategies - Investors are advised to consider silver mining companies as a safer investment compared to investing directly in silver [2] - Mining companies benefit from expanding profit margins as silver prices rise above production costs [3] Hecla Mining Company - Hecla Mining is the largest silver producer in the U.S. and Canada, accounting for 37% of U.S. silver production and 29% in Canada, positioning it favorably in a stable jurisdiction [6] - Hecla's profitability is closely tied to silver price fluctuations, with historical data showing significant margin changes during price spikes [7] - Current profit margins are improving but have not fully aligned with the soaring silver prices; Hecla's Greens Creek mine has low all-in sustaining costs of $11.01 per ounce, making it one of the lowest-cost producers in North America [8]

Group 1: Company Analysis - ConocoPhillips is focusing on increasing its production capacity and has plans to invest significantly in new projects to enhance its operational efficiency [1] - Freeport-McMoran Copper & Gold Inc reported a strong quarterly performance, driven by higher copper prices and increased production levels [1] - Agnico Eagle Mines Limited is expanding its mining operations and has announced new exploration projects aimed at increasing its gold reserves [1] Group 2: Industry Trends - The mining industry is experiencing a resurgence due to rising commodity prices, particularly in copper and gold, which are expected to drive profitability for major players [1] - There is a growing emphasis on sustainable mining practices within the industry, as companies seek to reduce their environmental impact while maintaining production levels [1] - The overall market sentiment is positive, with analysts predicting continued growth in the mining sector as demand for metals increases globally [1]

Currency and Market Overview - The U.S. dollar has fallen to its weakest level in nearly four years, declining about 10% over the past year due to rising geopolitical tensions and tariff-driven market volatility [1][2] - The dollar's decline accelerated following President Trump's tariff announcements, which triggered a global market sell-off and increased uncertainty regarding trade relations, particularly with European allies [2][3] Precious Metals Performance - Gold and silver have reached record highs as investors seek safe-haven assets amid economic and geopolitical stress, with spot gold up more than 27% this year and nearing $5,600, while silver approaches a record high near $120 [4][5] - The Federal Reserve's decision to hold interest rates steady, acknowledging elevated inflation, has further supported the rally in precious metals, which typically move inversely to the dollar [5][6] Investment Opportunities in Precious Metal Stocks - AngloGold Ashanti is a leading global gold producer with a strong asset base and recent acquisitions, including Augusta Gold Corp. and Centamin, which have enhanced its production capabilities [7][8] - The Zacks Consensus Estimate for AngloGold's 2026 sales and EPS indicates a year-over-year increase of 23% and 41%, respectively, with an upward revision of 8 cents in EPS over the past 30 days [9] - Fresnillo, a major silver and gold producer in Mexico, has expanded its portfolio through the acquisition of Probe Gold, adding significant gold resources and focusing on improving production efficiency [12][13] - The Zacks Consensus Estimate for Fresnillo's 2026 sales and EPS suggests a substantial year-over-year increase of 75% and 578%, respectively, with a recent EPS revision of 35 cents [14] - Aris Mining is enhancing its presence in Latin America with a focus on gold properties and has a robust project pipeline, including the Segovia mine and the Soto Norte Project [15][16] - The Zacks Consensus Estimate for Aris Mining's 2026 EPS indicates a year-over-year surge of 91%, with an upward revision of 32 cents in the past 30 days [17] - Hecla Mining, the largest silver producer in the U.S. and Canada, is advancing its Keno Hill project towards commercial production and has promising exploration results from its Midas Project [18] - The Zacks Consensus Estimate for Hecla Mining's 2026 sales and EPS forecasts a year-over-year increase of 14% and 38%, respectively, with a recent EPS revision of 17 cents [19]