Hecla Mining Sharpens Its Focus on Silver Production

Hecla Mining US4227041062

Hecla Mining is undertaking a significant strategic pivot to reshape its future. The company is intensifying its commitment to its core strength in silver by divesting a major gold asset. This move comes even as Hecla reports record-breaking operational performance, though its share price has recently experienced a notable pullback.

On the operational front, Hecla closed out 2025 with robust results. Its silver and gold output met the high end of guidance, with the Lucky Friday mine setting a new production record of 5.3 million ounces of silver. The company's total gold production for the year surpassed 150,000 ounces.

Looking ahead to 2026, management has outlined ambitious plans. It intends to nearly double its investment in exploration and pre-development to $55 million. Consolidated silver production is projected to reach as much as 16.5 million ounces.

Key Operational Highlights:
* Record Output: The Lucky Friday mine achieved a record 5.3 million ounces of silver.
* Growth Spending: The 2026 exploration budget is set to double to $55 million.
* Strong Year: 2025 silver and gold production hit the top end of forecasted ranges.

Divesting Gold to Double Down on Silver

The cornerstone of Hecla's new direction is the sale of its Casa Berardi gold mine in Quebec to Orezone Gold Corporation. The agreement has a potential total value of up to $593 million. This strategic disposal allows Hecla to reallocate capital specifically toward expanding its silver project pipeline across North America.

The transaction is anticipated to close in the first quarter of 2026. Upon completion, Hecla will receive $160 million in cash and a stake of nearly 10% in Orezone. Further contingent payments are linked to future operational milestones.

Share Price Correction Amid Overbought Signals

Despite the strong operational results and clear strategic vision, Hecla's stock has faced recent selling pressure. Shares corrected sharply, declining over 17% in the past seven trading sessions.

While the current price of $26.32 remains well above the 200-day moving average of approximately $10.48, the short-term trend is negative. A key technical indicator, the Relative Strength Index (RSI), has fallen to a deeply oversold level of 23.2. Market technicians often interpret such a low RSI reading as a potential signal for an impending rebound.

Investors are now looking toward Hecla Mining's next official earnings report, scheduled for February 12, 2026. The market will be keen to understand management's specific plans for deploying the financial flexibility gained from the mine sale to accelerate its silver-focused growth strategy.