US-based silver miner Hecla Mining is forecasting strong production levels across its portfolio in 2025, with consolidated silver output expected to range between 15.5-million and 17-million ounces.

In 2024, the company produced 16.2-million ounces of silver, which was the second-highest in its history, along with 142 000 oz of gold.

The company’s core operations – Greens Greek in Alaska, Lucky Friday in Idaho and Keno Hill in Yukon Territory – are projected to deliver stable output, despite challenges in some regions.

Greens Creek, Hecla’s biggest silver-producing asset, is expected to deliver 8.1-million to 8.8-million ounces of silver in 2025, consistent with 2024 production levels of 8.4-million ounces. Base metal output is also expected to remain steady, while gold production may decline slightly owing to lower grades.

At Lucky Friday, silver production is forecast to reach 4.7-million to 5.1-million ounces, reflecting stable operations at the mine. Last year, Lucky Friday produced 4.89-million ounces.

Meanwhile, Keno Hill’s silver production is projected to be 2.7-million to 3.1-million ounces in 2025, in line with 2024 levels. Mill throughput for 2024 averaged 299 t/d, which is below the permitted capacity of 440 t/d.

Hecla is implementing a phased approach to throughput optimisation at Keno Hill, with the ultimate goal of expanding capacity to 600 t/d. Increased throughput is critical for generating returns at the remote options, owing to its high fixed costs.

The expansion pathway, supported by the mine's resource base and recent increase in silver reserves to over 64-million ounces, is expected to meet the company’s investment threshold criteria at current silver prices.

However, the company is encountering challenges at Keno Hill. Hecla explains that permitting efforts have been affected by broader regional developments, notably the First Nation of Na-Cho Nyäk Dun (FNNND) expressing concerns over mining activities in their Traditional Territory following an unrelated heap leach pad failure at Victoria Gold’s Eagle mine in June last year.

This has slowed the company’s permitting progress as the Yukon government is required to consult with the FNNND on permitting matters.

While progress is being made, Hecla says “significant challenges remain”.

Further, power supply issues have hampered Keno Hill’s operations. Curtailment by Yukon Energy Corporation has led to eight days of operational stoppage so far in 2025, with disruptions expected to persist through the first half of the year.

The outages stem from cold temperatures and the lack of a functioning hydro-electric turbine, which is not expected to be repaired until summer 2025.

“Considering electrical reliability challenges, along with ongoing discussions with the Yukon government and the FNNND regarding the Eagle mine incident, we project 2025 silver production to remain comparable to 2024 levels, with growth expected to resume in 2026,” says Hecla.

Meanwhile, at Casa Berardi in Quebec, Hecla is looking at “strategic alternatives”. The mine is transitioning from a combined underground and surface operation to a surface-only operation. By mid-2025, the company expects to be mining only the 160 openpit, as the higher margin stopes in the west underground mine should be exhausted.  

With the expected decline in 160 pit's strip ratio, the mine's economics are expected to improve with free cash flow generation commencing in the second half of 2025.

Casa Berardi is expected to produce gold from the 160 pit until 2027. At current gold prices, the 160 pit is expected to generate strong free cash flow from the second half of 2025 (when the pit's strip ratio is expected to decline) until 2027. Upon completion of mining at the 160 pit, and milling the remaining stockpiles, Casa Berardi is expected to have a production gap commencing in 2027 and continuing until 2032 or later.

FINANCIAL RESULTS

Meanwhile, Hecla reported net income of $35.3-million in 2025, compared with a loss of $84.8-million in the prior year, with the improvement related to the collection of $50-million of Lucky Friday insurance proceeds, a decrease in the suspension costs of Lucky Friday as it returned to full production and a foreign exchange gain.

Group sales increased to $929.9-million for the year through higher realised prices and higher sales volumes, following the resumption of operations at Lucky Friday in January.  Operations were halted in August 2023 owing to a fire in the underground secondary egress.