Why Hecla Mining Stock Is Soaring This Week

The Motley Fool · 1d ago

Key Points

  • Gold and silver prices are rising this week.

  • Hecla Mining stock is priced at a discount to its historical valuation.

Shares of Hecla Mining (NYSE: HL) have been red hot in August. Before the start of this week, shares of the precious metals mining company had risen 30.1% since the beginning of August. The upward trajectory continues this week as gold and silver prices rise.

According to data provided by S&P Global Market Intelligence, shares of Hecla Mining are up 13.3% from the end of trading last Friday through the close of today's market session.

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investor puts gold coins in coin purse.

Image source: Getty Images.

An attempt to lower yields makes gold glitter brightly in investors' eyes

On Wednesday, the U.S. Treasury announced plans to implement measures intended to curb the rising yields on government bonds. As a result of the announcement, gold and silver prices accelerated higher -- a common dynamic in which investors rush to buy precious metals (and send their prices higher) when they suspect that Treasury yields will fall.

From the close of trading on Friday through the close of today's session, the prices of gold and silver have risen 2.4% and 4.7%, respectively.

In 2026, Hecla Mining projects gold production of 51,000 to 55,000 ounces and silver production of 15.1 to 16.1 million ounces.

Is it too late to load up on Hecla Mining stock?

For those mining the market for opportunities to invest in precious metals stocks, Hecla Mining is a great option right now -- even with shares rising higher this week. Currently, Hecla Mining is changing hands at 15.8 times operating cash flow, representing a discount to its five-year average cash flow multiple of 17.4.

Scott Levine 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.