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Hecla Mining (HL): Valuation Check After Polaris Exploration Approval and Positive Nevada Drill Results

Simply Wall St · 2d ago

Hecla Mining (HL) just cleared an important regulatory hurdle, winning U.S. Forest Service approval to advance its Polaris exploration program in Nevada’s Aurora district from 2026. This move tightens the long term growth story.

See our latest analysis for Hecla Mining.

Those exploration wins appear to be feeding into sentiment, with a roughly 219.8% year to date share price return and a 197.3% one year total shareholder return suggesting momentum is firmly building around Hecla’s growth story at $16.82.

If Hecla’s run has you rethinking your exposure to miners, this could also be a good moment to broaden your search and discover fast growing stocks with high insider ownership.

Yet with the stock now trading above the average analyst price target and recent gains already reflecting exploration optimism, investors must ask whether Hecla is still mispriced or whether the market is already incorporating much of that future growth.

Most Popular Narrative: 16.8% Overvalued

With Hecla Mining closing at $16.82 against a narrative fair value of $14.40, the current price bakes in a premium to future expectations.

The company's disciplined production ramp up at Keno Hill targeting a sustainable throughput of 440 tonnes per day by 2028, alongside proven high return economics even at conservative silver price levels, sets the stage for steady long term free cash flow and earnings growth as the mine achieves scale. Enhanced operational efficiency through automation, advanced analytics, and mine planning improvements at Greens Creek and Lucky Friday is expected to lower all in sustaining costs (AISC), contributing to healthier net margins and stronger bottom line performance as silver markets improve.

Read the complete narrative.

Want to see why steady volumes, fatter margins, and a richer earnings multiple still support a higher fair value than today’s consensus? The narrative lays out the full math.

Result: Fair Value of $14.40 (OVERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, steadily rising capital needs at Keno Hill and tougher North American regulations could pressure free cash flow and squeeze long term margins.

Find out about the key risks to this Hecla Mining narrative.

Build Your Own Hecla Mining Narrative

If you see the story differently or prefer hands on research, you can shape your own view in just a few minutes: Do it your way.

A great starting point for your Hecla Mining research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.