Key Points
Hecla recently sold a non-core asset and plans to reduce debt while doubling growth spending.
The silver giant entered 2026 with record profits and solid cash flows.
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Shares of Hecla Mining (NYSE: HL) plummeted 25.2% in March, according to data provided by S&P Global Market Intelligence, hitting 2026 lows of $16.25 per share. That decline represented a staggering 52% retreat from its 52-week high, a peak it reached less than two months ago.
Hecla closed an asset sale last month and plans to use the proceeds to repay debt. While the move bolsters its financials, the underlying prices of precious metals remain the primary driver of Hecla's stock price.
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Why did Hecla Mining stock drop so much?
Because silver as an asset does not pay interest, it often loses appeal compared to bonds when inflation remains high. With the Federal Reserve keeping interest rates unchanged because of stubborn inflation, silver plunged in March, including a more than 10% single-day drop on March 19.
Gold struggled as well, despite the Iran war. Surging Treasury yields, a stronger U.S. dollar, and stubborn inflation overshadowed gold's appeal as a safe-haven asset, prompting investors to lock in gains following a record-breaking rally in the preceding months.
In the last quarter, nearly 60% of Hecla's revenue came from silver, and 29% from gold. In 2024, Hecla alone accounted for 37% of total U.S. silver production, leaving it highly sensitive to fluctuations in precious metal prices.
Hecla's sell-off in particular intensified in March because the company had recently issued lower silver production guidance for 2026. Following a successful 2025, where silver production climbed 5% to 17 million ounces, the miner now anticipates a pullback to between 15.1 million and 16.5 million ounces this year.
Is Hecla Mining a good stock to buy now?
In March, Hecla sold its subsidiary that owns the Casa Berardi gold mine in Quebec, Canada to a subsidiary of Orezone Gold for a total value of around $593 million, including an upfront cash payment of $160 million and shares in Orezone worth around $112 million, and $321 million in deferred cash.
Following the divestiture, Hecla has sharpened its focus on primary silver assets, specifically the Tier 1 Greens Creek operation and the ongoing ramp-up at Keno Hill. The move follows a banner 2025, during which Hecla's revenue surged 53% to a record $1.4 billion, driven by higher realized precious metals and zinc prices. Its gross profit tripled as the Keno Hill mine achieved its first full year of profitability, and net income jumped ninefold to a quarterly record of $321 million.
Hecla ended the year with $310 in free cash flow. With all of that cash and the proceeds from the Quebec sale, Hecla plans to repay a portion of its debt and nearly double its exploration and pre-development spending to $55 million in 2026.
Hecla Mining stock is rebounding in April in tandem with silver prices, but I wouldn't rule out more volatility ahead. Regardless, Hecla's dominance in silver and strengthening financials make it one of the best silver stocks to buy on dips.
Should you buy stock in Hecla Mining right now?
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Neha Chamaria has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
