New York, January 27, 2026, 13:39 EST — Market open.
- Hecla shares plunged in afternoon trading following the company’s latest deal and outlook announcements
- Exiting Casa Berardi pushes the portfolio deeper into silver
- Analysts warn that valuation and execution risks will be the next hurdles to watch
Hecla Mining Company shares dropped roughly 8% Tuesday afternoon, reversing course from a morning peak to new intraday lows on heavy trading volume. The stock slipped to $27.46 after earlier reaching $30.96, with around 28.3 million shares changing hands.
Hecla is moving forward after striking a deal to sell its Casa Berardi mine in Quebec to Orezone Gold for up to $593 million. That figure includes stock and contingent payments—not just cash. At closing, Hecla expects to receive $160 million in cash plus about 65.7 million Orezone shares, valued around $112 million. There’s also $80 million in deferred cash, with as much as $241 million linked to royalties, permits, and gold prices. CEO Rob Krcmarov described the sale as an “important milestone” as the company pivots toward silver. Hecla plans to use the proceeds to pay down debt and boost its balance sheet. (Business Wire)
Hecla released preliminary production numbers for 2025 and laid out its 2026 guidance, forecasting silver output to slip slightly to between 15.1 million and 16.5 million ounces. Gold production is expected to hit 134,000 to 146,000 ounces. The company aims to nearly double its exploration and pre-development budget to $55 million in 2026, compared to 2025, while total capital spending is projected between $255 million and $279 million. Hecla put all-in sustaining costs (AISC) at $15.00 to $16.25 per silver ounce after factoring in by-product credits—revenues from metals like gold, zinc, and lead that help offset costs. Krcmarov emphasized the plan reflects “financial discipline” as the firm focuses on its core silver assets. (SEC)
Some analysts see the sale as a way to eliminate a distracting asset and clarify the company’s focus, but it also strips away some cushions investors might rely on if the execution falters. Alex Terentiew of National Bank Financial labeled Casa Berardi “a corporate distraction.” Scotia Capital’s Eric Winmill noted the deal “captures value upfront” and trims management’s distractions as Hecla aims to ramp up Keno Hill and keep Greens Creek operating at full tilt. (Mining)
Roth Capital’s Joe Reagor bumped his price target to $16 from $12 on Tuesday but maintained a Sell rating. He argued the stock still trades at a “significant premium” to its historical valuation multiples, even after accounting for the mine sale and revised guidance. (TipRanks)
Hecla’s decline topped much of the sector as metals-linked stocks slipped. The iShares Silver Trust ETF dropped roughly 2%, with Pan American Silver falling close to 3%, and Coeur Mining shedding around 2.6%. The VanEck Gold Miners ETF dipped by less than 1%.
But there’s a catch. Only a portion of the Casa Berardi payment comes in cash at closing; the rest hinges on share prices and future milestones that might not pan out as expected. Any drop in grades, rising costs, or a shift in metal prices could quickly squeeze margins, particularly since the company is betting more on a silver-focused portfolio.
That exposure is exactly the risk. Remove the gold mine, and the stock’s daily moves hinge even more on silver prices and whether management can execute the Keno Hill ramp and capital plans smoothly, without any hiccups.
Next on the agenda: Hecla is set to appear at TD Cowen’s 17th Annual Global Mining Conference on Jan. 29, where investors will be eager for new updates. The market will also be focused on any progress toward finalizing the Casa Berardi sale, along with clearer signals regarding debt reduction and spending priorities. (Hecla)
