Hecla Mining Slides 20% Despite Record Silver Output
Hecla Mining's stock fell 20% in October despite record silver output and $734 million in operating cash flow. Two consecutive EPS misses and an unexplained September restructuring signal that operati
Hecla Mining Slides 20% Despite Record Silver Output
NEW YORK, October 24 —
The VP of Sustainability at Hecla Mining Company (HL) pocketed approximately $498,000 selling shares at $20.76 and $20.97 in August; those same shares trade at $13.85 today after a roughly 20% October decline, even as the company reports record silver output and approximately $398 million in trailing free cash flow.
- Revenue up 52.4% year-over-year to $1.74 billion; trailing operating cash flow $734 million; gross margin 61.4%.
- September 18 8-K disclosed a new direct financial obligation and a material modification to security-holder rights, per the filing.
Gross Margin Doesn't Reach the Check
Hecla mines silver, gold, lead, and zinc concentrates from operations across the United States and Canada, selling doré and concentrates to custom smelters and metal traders. Revenue of $1.74 billion, up 52.4% year-over-year, flows through a 61.4% gross margin. The drag lies below that line: trailing FCF of $342 million against operating cash flow of $734 million implies a capital program absorbing nearly $390 million annually. Two consecutive EPS misses of 0.8% and 4.5% compound the gap, showing that operational strength at the gross line has not yet reached the per-share earnings that quarterly scorecards track, making the DCF calculator a useful lens for the valuation math.
The August Exit and a September Restructuring
When Patrick Shay Malone, VP of Sustainability, sold approximately $498,000 in shares on August 20 at $20.76 and $20.97, the stock traded well above current levels. It sits at $13.85 today, roughly 33% below his exit price. Six weeks later, on September 18, Hecla filed an 8-K disclosing a new material definitive agreement, the termination of a prior one, the creation of a new direct financial obligation, and a material modification to security-holder rights. The 90-day insider record shows zero purchases against those $498,000 in sales, and the September filing's pairing of a new obligation with altered security-holder rights raises questions the earnings reports have not yet answered.
| Ticker | Mkt cap | Fwd P/E | 52-wk |
|---|---|---|---|
| HL | $9.3B | 13.4x | +12.1% |
| CDE | $13.8B | 7.3x | -23.9% |
| PAAS | $16.6B | 9.4x | +15.6% |
| AG | $7.3B | 15.0x | +18.7% |
| KGC | $26.5B | 8.3x | -1.9% |
| EXK | $2.2B | 7.2x | -4.5% |
Three Hurdles to the $21 Target
A return to EPS beats would show that gross-margin strength is filtering to the bottom line; two misses after two earlier beats reset that assumption. The September 18 8-K's creation of a new obligation and modification of security-holder rights will need explanation at the next earnings presentation, since the form items specify no terms. Record silver output and lower all-in sustaining costs provide the operational basis for the thesis. Run the free Hecla Mining Company deep-dive → to follow the numbers as they arrive.
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Frequently Asked Questions
Why is Hecla Mining stock down 20%?
Hecla Mining shares fell 20% in October despite record silver output and $734 million in operating cash flow. The decline reflects two consecutive EPS misses of 0.8% and 4.5% and an unexplained September 18 8-K filing that disclosed a new financial obligation and material modification to security-holder rights.
What is Hecla Mining's gross margin?
Hecla Mining reported a gross margin of 61.4%, which is strong. However, this operational strength has not filtered to the bottom line: trailing free cash flow of $342 million against operating cash flow of $734 million implies a capital program absorbing approximately $390 million annually.
When did Hecla Mining's VP sell stock?
Patrick Shay Malone, VP of Sustainability, sold approximately $498,000 in shares on August 20 at $20.76 and $20.97 per share. Those shares now trade at $13.85, roughly 33% below his exit price, and the 90-day insider record shows zero purchases against those sales.
What is Hecla Mining's stock price target?
The analyst consensus price target for Hecla Mining is $21.875, representing approximately 58% upside from the current price of $13.85. However, closing that gap requires a return to EPS beats, an explanation of the September restructuring, and confirmation that record silver output and lower all-in sustaining costs can support higher earnings.
What was in Hecla Mining's September 8-K?
On September 18, Hecla filed an 8-K disclosing a new material definitive agreement, termination of a prior one, creation of a new direct financial obligation, and a material modification to security-holder rights. The filing included no detailed terms, leaving questions about the restructuring unanswered until the next earnings presentation.
Hecla Mining has shed approximately 20% in October alone, pulling shares to $13.85 — well below both the $21.875 analyst consensus target and the $20.76 price at which the company's VP of Sustainability exited in August. A September 18 filing simultaneously disclosed a new financial obligation and a material modification to security-holder rights, even as the company's latest operating data points to record silver output and approximately $398 million in LTM free cash flow.