Hecla Sells Casa Berardi Mine to Strengthen Balance Sheet
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2d ago
0mins
Source: stocktwits
- Deal Details: Hecla Mining announced the sale of its Casa Berardi gold mine subsidiary in Quebec for $593 million, which includes $160 million in cash, approximately $112 million in equity, and $80 million in deferred cash, expected to close in Q1 2026, aiming to optimize its asset portfolio and focus on silver mining operations.
- Enhanced Financial Flexibility: Hecla intends to use the cash proceeds to reduce debt and strengthen its balance sheet, thereby improving its capacity for strategic investments in core silver assets, which is expected to positively impact shareholders.
- Production Outlook Adjustment: Hecla forecasts a slight decline in silver and gold production for 2026, with silver output expected to be between 15.1 million and 16.5 million ounces and gold output between 134,000 and 146,000 ounces, reflecting lower milled-grade expectations at Greens Creek and Casa Berardi.
- Positive Market Reaction: Despite HL shares slipping over 4% at the time of the announcement, they jumped more than 7% in pre-market trading on Monday, indicating a positive market response to the divestiture and investor optimism about future growth.
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Analyst Views on HL
Wall Street analysts forecast HL stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for HL is 15.42 USD with a low forecast of 12.00 USD and a high forecast of 19.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
6 Analyst Rating
2 Buy
3 Hold
1 Sell
Hold
Current: 27.190
Low
12.00
Averages
15.42
High
19.00
Current: 27.190
Low
12.00
Averages
15.42
High
19.00
About HL
Hecla Mining Company is a silver producer in the United States and Canada. The Company discovers, acquires and develops mines and other mineral interests and produces and markets concentrates containing silver, gold, lead, zinc and copper; carbon material containing silver and gold, and unrefined dore containing silver and gold. The Company's segments include Greens Creek, Lucky Friday, Keno Hill and Casa Berardi. The Greens Creek operation is located on Admiralty Island, near Juneau, Alaska. The Greens Creek ore body contains silver, zinc, gold and lead. The Lucky Friday mine is a deep underground silver, lead, and zinc mine located in the Coeur d’Alene Mining District in northern Idaho. The Casa Berardi mine is an underground/open-pit gold mine located in western Quebec. It owns 100% of the Keno Hill Silver Project, which is located within the Keno Hill Silver District in Canada’s Yukon Territory. The Company also owns a number of exploration and pre-development projects.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Hecla Mining Sells Casa Berardi for Up to $593M
- Asset Sale Agreement: Hecla Mining has agreed to sell its Casa Berardi operation in Quebec to Orezone Gold for up to $593 million, advancing its strategy to focus on premier silver assets.
- Cash and Stock Structure: Under the deal terms, Hecla expects to receive $160 million in cash at closing, $80 million in deferred cash, approximately 65.7 million Orezone shares valued at about $112 million, and contingent consideration of up to $241 million.
- Silver Production Growth: Hecla reported FY 2025 silver production of 17 million ounces, exceeding guidance and up over 5% year-over-year, while gold output reached 150,509 ounces, surpassing last year's 141,923 ounces and the top end of guidance.
- Future Production Guidance: For FY 2026, Hecla guided for consolidated silver production of 15.1 to 16.5 million ounces and gold production of 134,000 to 146,000 ounces, expecting lower ore grades at key mines but maintaining strong silver margins.
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