Hecla Mining to speed up growth by expanding into Latin America

Hecla Mining (NYSE: HL), the largest silver producer in the United States, is looking to expand into Mexico, Peru and two other countries in Latin America to speed up growth once it consolidates its position in Canada.

The Coeur d’Alene, Idaho-based miner in 2022 set a foothold in one of the world’s highest-grade silver regions — the Keno Hill Silver District in the Yukon — when it acquired Alexco Resources.

“I think this is going to be an incredible mining district, it already is, but it’s going to be even bigger. It’s a 200 million-ounce district and we don’t know what the limit will be,” CEO Phillips J. Baker said in an interview with Peru’s Gestión on Monday.

The executive said Hecla is now considering expanding into Latin America. “We recognize that to grow faster we need to be in Mexico, Peru, Bolivia or Argentina, so we are actively pursuing opportunities in each of those jurisdictions,” he said.

Hecla faced initial challenges at the Keno Hill mine, where inspectors last year found sediment runoff from tailings facilities, poor storage of hazardous materials, hydrocarbon stains on the ground, and discharged water that was toxic to fish.

Despite the setback, Keno Hill produced 1.5 million oz. of silver in 2023, with 608,301 oz. produced in the fourth quarter. The Bermingham deposits, which form the backbone of Hecla’s current mining operations in Yukon, achieved their highest production in December, exceeding 9,500 tonnes mined. Ore inventory at the end of the year was approximately 3,000 tonnes at a silver grade of 27 oz. per tonne.

Hecla, which also has offices in Vancouver, expects to become the country’s largest silver producer as its Yukon operations grow. 

The company is simultaneously looking to maximize value from its four operating mines — Greens Creek (Alaska), Lucky Friday (Idaho), Casa Berardi (Quebec) and Keno Hill (Yukon) — and 10 exploration projects. 

The plan is to churn out up to 20 million oz. of silver a year by 2025, Hecla said in early January.

Hecla shares were down 1.2% to US$4.04 on Tuesday morning, valuing the company at US$2.5 billion. Its shares traded in a 52-week range of US$3.55 and US$7.00.