Hecla Mining Sharpens Its Edge with Strategic Silver Focus
02.02.2026 - 09:28:04
Hecla Mining is executing a significant strategic pivot, channeling its resources toward strengthening its position as a leading silver producer. This move is underscored by the planned divestiture of a key gold asset and reinforced by robust production results, setting the stage for focused future growth.
The company's operational performance in 2025 provides a solid backdrop for its strategic shift. Preliminary figures show Hecla achieved consolidated silver output of 17.0 million ounces, representing a year-over-year increase exceeding five percent. This performance reached the upper end of the company's earlier guidance. The Lucky Friday mine was a standout contributor, delivering a record 5.3 million ounces. Gold production also surpassed initial expectations, coming in at 150,509 ounces for the year.
Divestiture to Fuel Core Business Growth
Central to Hecla's refined strategy is the sale of its Hecla Quebec subsidiary, which includes the Casa Berardi gold mine. This transaction, anticipated to close in the first quarter of 2026, is valued at up to $600 million. The deal structure includes an upfront cash payment of $160 million upon closing, plus approximately 65.7 million shares of Orezone Gold Corporation, equating to a 9.9 percent ownership stake.
Exiting this gold-focused asset is designed to accelerate cash flow and allow management to direct capital exclusively toward expanding its silver operations. The influx of capital is expected to provide significant firepower for targeted investments in its core business.
Should investors sell immediately? Or is it worth buying Hecla Mining?
Ambitious Plans for 2026 and Beyond
Looking ahead to the current year, Hecla's management has provided production guidance targeting between 15.1 and 16.5 million ounces of silver. Gold production is forecast to be in the range of 134,000 to 146, ounces.
Perhaps more telling of the company's long-term ambitions is a substantial increase in its exploration and pre-development budget. For 2026, this spending is set to nearly double to $55 million, up from the previous year. Total capital expenditures for the year are projected to be between $255 million and $279 million.
This investment supports a clear roadmap focused on silver. Plans include capacity expansions at the Keno Hill operations and a potential restart of the Midas mine. Further financial details and concrete plans for implementing this strategy will be disclosed when Hecla reports its full quarterly and annual results, expected on February 12 or 17, 2026. The strategic question now is whether this sharpened focus will enable Hecla to solidify and expand its leadership within the silver sector.
Ad
Hecla Mining Stock: Buy or Sell?! New Hecla Mining Analysis from February 2 delivers the answer:
The latest Hecla Mining figures speak for themselves: Urgent action needed for Hecla Mining investors. Is it worth buying or should you sell? Find out what to do now in the current free analysis from February 2.
Hecla Mining: Buy or sell? Read more here...
