BMO Capital recently adjusted its valuation outlook for Hecla Mining Co., raising the price target to $28.00 from $16.00 while keeping a Market Perform rating in place. At present the shares trade at $29.97 and show a price-to-earnings ratio of 98.32, a level that suggests a stretched valuation by conventional P/E measures.
In operational results, Hecla reported fourth-quarter production that fell slightly short of BMO's expectations. Despite that, the company achieved the top end of its full-year 2025 production guidance for both silver and gold. For the calendar year 2025, Hecla recorded silver production of 17.0 million ounces and gold production of 150,509 ounces. The Lucky Friday mine delivered a record year for silver output at 5.3 million ounces, exceeding prior expectations.
Hecla's revenue performance has been strong, with year-over-year growth of 45.61% over the last twelve months. InvestingPro data noted a remarkable price return for the shares over the past year, recorded at 463.53%. Analysts covering the company expect continued growth in net income moving forward.
Looking ahead, Hecla's 2026 production guidance came in line with consensus expectations. The company's all-in sustaining cost guidance, however, was higher than forecasts due to increased sustaining capital requirements. Financially, Hecla operates with what has been described as a moderate level of debt and reports a current ratio of 2.15, indicating a solid short-term liquidity position.
In recent corporate developments, Hecla announced the sale of the Casa Berardi gold operation in Quebec. Casa Berardi was the company's only asset focused solely on gold. The buyer is Orezone Gold Corporation and the deal is structured for up to $593 million, consisting of a mix of cash, shares and contingent payments. The transaction is expected to close in the first quarter of 2026.
The company also used an investor day to emphasize its concentrated silver exposure in high-quality jurisdictions and to highlight exploration opportunities that management believes could create additional value over the medium term. Separately, Hecla is set to join the S&P MidCap 400 Index on December 22, 2025, a change announced by S&P Dow Jones Indices that will alter index composition.
Market context around Hecla has been mixed. While Hecla outperformed over the last year, some of the larger gold producers such as Barrick and Newmont experienced share price declines as precious metal prices moved down from recent highs. Hecla's next scheduled earnings release is expected on February 18, 2026.
What this means
- Analysts at BMO increased the price target substantially but retained a Market Perform stance, reflecting a cautious view despite operational momentum.
- Production metrics for 2025 were strong, with Hecla hitting the top end of its guided range for both metals and delivering a record year at Lucky Friday.
- Costs and capital intensity remain areas to watch, with AISC guidance coming in above forecasts due to higher sustaining capital.
This reporting synthesizes the recent analyst update, production disclosures and corporate transactions tied to Hecla. The company operates mines in the United States and Canada and has recently reshaped its portfolio with the announced sale of Casa Berardi.