Hecla Mining Company Reports Strong Fourth-Quarter Results Amid Rising Gold Prices
Hecla Mining Company (HL) announced its fourth-quarter 2024 adjusted earnings per share of 4 cents, which met the Zacks Consensus Estimate. This marks an improvement from a loss of 4 cents per share reported in the same quarter last year.
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Accounting for one-time items, Hecla reported earnings of 2 cents per share, compared to a loss of 7 cents in the previous year’s fourth quarter.
Financial Summary and Revenue Performance
The company recorded a 55.4% year-over-year revenue increase, amounting to $250 million in the recent quarter, surpassing the Zacks Consensus Estimate of $229 million.
Gold prices climbed 10.7% year-over-year to $2,656 per ounce. In contrast, the realized silver price increased to $30.19 per ounce, up 28.6% from the previous year’s $23.47. However, the prices for lead and zinc faced different trends, with lead down by 13.8% and zinc up by 10.1%.
Total sales costs rose 17.9% year over year to $181 million, leading to a significant gross profit of $68.3 million, compared to just $7 million in the year-ago quarter. The gross margin for the fourth quarter of 2024 improved to 27.4%, up from 4.3% in the same period last year.
Adjusted EBITDA rose sharply to $86.6 million, increased from $33 million in the fourth quarter of 2023.
Production Statistics for Fourth Quarter
In Q4 2024, Hecla reported silver production of 3.87 million ounces, reflecting a 6.3% sequential increase and a notable 32% jump compared to Q4 2023.
Meanwhile, gold production reached 35,727 ounces, a 10.7% increase from Q3 2024, though it saw a decline of 3.9% from the same quarter last year.
Annual Highlights for 2024
For the full year, Hecla achieved adjusted earnings per share of 11 cents, outperforming the Zacks Consensus Estimate of 8 cents. This contrasts with an adjusted loss of 1 cent in 2023.
Including one-time items, the company posted earnings of 6 cents per share, up from a loss of 14 cents reported the prior year.
Hecla’s total revenues also surged, with a 29.1% increase year-over-year, reaching a record $930 million in 2024, exceeding the Zacks Consensus Estimate of $919 million.
Cash Position and Future Expectations
At the end of 2024, Hecla held $26.8 million in cash and cash equivalents, significantly lower than the $106 million from the end of 2023. Operating cash flow stood at $218.3 million, a sharp rise from $75 million the previous year.
Looking forward, the company anticipates consolidated silver production between 15.5 million and 17.0 million ounces in 2025, alongside expected gold production of 120,000 to 130,000 ounces.
Stock Performance Overview
Hecla Mining’s shares have appreciated by 51.7% over the past year, while the mining industry overall saw a growth of 76.5% during the same period.
Upcoming Earnings Releases in Silver Mining
Pan American Silver Corp. (PAAS) is slated to release its fourth-quarter results on February 19, with an anticipated earnings estimate of 35 cents per share. This would mark a recovery from a loss of 4 cents per share in the prior year.
The revenue estimate for PAAS stands at $805 million, projecting a 20.2% improvement from the previous year.
Avino Silver & Gold Mines Ltd. (ASM) is expected to announce fourth-quarter results next month, with earnings projected at 1 cent per share, reflecting a 50% decline year-over-year. However, its revenue is expected to rise by 37.2% to $17.2 million.
Hecla Mining’s Zacks Rank and Noteworthy Alternatives
Hecla currently holds a Zacks Rank #1 (Strong Buy). Another notable stock in the basic materials sector is Carpenter Technology Corporation (CRS), which holds a Zacks Rank #2 (Buy). Carpenter Technology’s projected earnings for 2025 are set at $6.83 per share, reflecting a 1% increase in the consensus estimate over the last two months. It boasts a strong earnings surprise history with an average of 15.7% over the trailing four quarters, alongside a remarkable 188% stock price increase over the last year.
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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
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