Hecla Mining (NYSE:HL) outlined its strategy to deepen its identity as a silver-focused producer and discussed industry trends affecting precious metals markets during a webcast hosted by Lytham Partners. Mike Parkin, Hecla’s Vice President of Strategy and Investor Relations, said the company has undergone a “transformation” over the past year and a half following the arrival of CEO Rob Krcmarov, with an emphasis on improving financial flexibility, strengthening its balance sheet, and investing in internal growth opportunities.
Company profile and shift toward silver
Parkin described Hecla as North America’s “premier silver company,” noting the company has operated for 135 years and is the oldest precious metals company listed on the New York Stock Exchange. He said Hecla’s operating assets and project pipeline are located in the U.S. and Canada, which he characterized as “the best jurisdictions.”
Parkin also highlighted the company’s reserve profile. He said Hecla’s average reserve life is “over 13 years,” compared with an industry average “under seven,” adding that Hecla’s mine life is roughly double the sector average.
Production, costs, and 2025 performance
Parkin said the company met its 2025 guidance for silver production, gold production, and costs, and was “off by a few million” on capital spending but “almost in line.” He also pointed to what he called a “big reduction in debt,” a “big swing up in free cash flow,” improvement in return on invested capital, and a “dramatic” year-over-year improvement in safety performance.
On costs, Parkin said Hecla was the “lowest cost silver producer” in 2024 and that company guidance suggests it could maintain that positioning again in 2026. He described cost structure as central to investment decisions in the sector, arguing that low costs provide strong margin exposure to silver prices.
How management views silver demand drivers
In a question-and-answer segment with Robert Blum, Managing Partner at Lytham Partners, Parkin discussed whether silver trades more like a monetary metal or an industrial metal. Parkin said he sees silver as influenced by both factors, with monetary demand tending to dominate in a bull market. He said precious metals typically benefit when the U.S. dollar weakens or when U.S. real rates turn negative, but noted there has been “some volatility” recently tied to geopolitical events and uncertainty about inflation and real rates.
On the industrial side, Parkin said silver’s role in industrial applications tends to support a “floor price,” citing a market that he said has been in deficit for several years and is “not likely to change.” He pointed to growing industrial demand from uses such as solar panels, electric vehicles, and data centers, describing silver as difficult to substitute due to its electrical properties.
Policy shifts, permitting, and project pipeline
Blum also asked about localization of supply chains and strategic metals policy. Parkin said silver is a global market, but that policy support in the U.S. and Canada has helped ease the process of doing business, including engagement around infrastructure, permitting efficiency, and financing support. He said Hecla benefited from the U.S. FAST-41 program, stating the company had three projects in the program last year and obtained permits that allow those projects to advance.
Parkin said Hecla is prioritizing internal project advancement rather than relying on “expensive M&A,” while still acknowledging that mining companies must replenish depleting reserves over time. He said potential acquisitions could include earlier-stage assets rather than fully priced producing mines.
He cited the company’s Nevada portfolio as a nearer-term opportunity, particularly Midas, which has an existing mill on care and maintenance and a tailings facility. Parkin said Hecla is drilling to expand the existing high-grade resource and determine whether it can reach a scale that justifies restarting operations. He said the presence of infrastructure and permits could reduce capital intensity compared to a new build. Parkin said the company is “looking at potentially restarting that asset in about five years,” after additional exploration, investment, and permitting work. He also identified Hollister and Aurora as other Nevada projects to be drilled this year.
Operating constraints and what investors should watch
Asked about cost pressures, Parkin said Hecla benefits from being connected to grid power and “largely hydropower,” reducing exposure to oil compared with some peers. He added that, after the sale of Casa Berardi, Hecla’s remaining mining operations will be underground, with smaller fleets than typical large open-pit mines.
Parkin said labor is the company’s largest cost input—“about half the pie”—and that skilled trades are particularly tight, citing roles such as welders, electricians, and pipe fitters. He said Hecla’s operating jurisdictions, asset longevity, and long corporate history help with retention and recruitment.
Looking ahead, Parkin said investors should watch the ramp-up at Keno Hill, Hecla’s newest mine, which he said is working toward permitted throughput of 440 tons per day over the next couple of years. He also highlighted a tailings reprocessing initiative at Greens Creek, saying metallurgical work is underway and progressing “quite well,” with the company’s partner involved.
Parkin declined to offer a specific silver price forecast, but said management remains constructive on the precious metals backdrop despite what he described as intermediate “noise” from recent global events.
About Hecla Mining (NYSE:HL)
Hecla Mining Company, founded in 1891 and headquartered in Coeur d’Alene, Idaho, is one of the oldest publicly traded precious metals companies in the United States. Originally established to develop the rich silver deposits of the Coeur d’Alene district, Hecla has evolved into a diversified mining enterprise focused on the exploration, development and production of silver and gold, with by-product credits from lead and zinc.
The company’s principal operations are located in North America and Latin America.
