Hecla Mining hits silver production peak, sets record exploration budget

Hecla Mining (NYSE:HL) reported that its silver production rose more than 5% in 2025, reaching 17 million ounces and hitting the top end of its annual guidance.

The Idaho-based miner, the largest silver producer in the United States, also surpassed its gold targets, finishing the year with 150,509 ounces.

The strong performance was bolstered by the Lucky Friday mine, which produced 5.3 million ounces of silver, outperforming its own internal forecasts.

All of the company's silver operations met or exceeded their respective guidance ranges, providing a solid foundation for the year ahead.

Looking toward 2026, Hecla is shifting into a high-growth phase. The company announced a record $55 million budget for exploration and pre-development—nearly double the amount spent in 2025.

This aggressive reinvestment highlights management's confidence in expanding its resource base amid a favorable pricing environment for precious metals.

For the 2026 fiscal year, Hecla issued silver production guidance of 15.1 million to 16.5 million ounces and gold guidance of 134,000 to 146,000 ounces.

While production volume is projected to be slightly lower than the 2025 peak, the company expects to maintain high margins.

Silver cash costs are projected at a negative $(1.50) to $(1.25) per ounce after by-product credits, with All-In Sustaining Costs (AISC) estimated between $15.00 and $16.25 per ounce.

The company also noted that there is significant potential to beat these cost estimates if current spot prices for by-products—like lead and zinc—remain above the conservative price assumptions used in their formal guidance.

Meanwhile, total capital investment for 2026 is guided at $255 million to $279 million, a modest increase from 2025 levels.