Hecla Mining and First Majestic: Silver Mining Stock Performance and Investment Outlook

Two major players—Hecla Mining Company (HL) and First Majestic Silver Corp. (AG)—dominate the North American precious metals landscape, with both focused on extracting silver and other valuable metals. As the silver market gains momentum through sustained industrial demand and investment interest, these competitors are racing to expand production capacity while managing operational costs. Let’s dive into how these mining stocks are stacking up against each other.

Production Momentum: Scaling Output in a Growing Market

Hecla Mining’s Operational Strength

HL is reinforcing its standing as a top-tier North American precious metals producer. During the recent third quarter, the company extracted 4.6 million ounces of silver, marking a 1.5% sequential increase. Revenue climbed to $409.5 million, jumping 35% quarter-over-quarter, bolstered by higher metal valuations and expanded precious-metals sales.

The Greens Creek operation in Alaska serves as HL’s flagship asset. This facility produced 2.3 million ounces of silver alongside approximately fifteen thousand six hundred ounces of gold during the quarter. Capital projects are advancing, including the dry-stack tailings expansion initiative set to accelerate in the fourth quarter.

Lucky Friday mine also showed gains, producing 1.3 million ounces of silver as higher milled grades supported output stability. A surface cooling project underway at this site is expected to wrap up in the first half of 2026, unlocking access to deeper, richer ore zones and extending the mine’s productive lifespan.

Meanwhile, Keno Hill has demonstrated impressive momentum, generating 898,328 ounces of silver—a 20% sequential jump. Improved electrical infrastructure and elevated milling capacity drove the gains. Beyond current operations, HL received green light to launch exploration at the Polaris project in Nevada during 2026, while early-stage drilling at Midas has uncovered high-grade gold mineralization with visible gold in previously untested zones.

First Majestic’s Aggressive Expansion

AG’s production engine has accelerated markedly. In the fourth quarter of 2025, total output reached 7.8 million silver-equivalent (AgEq) ounces, including a record 4.2 million ounces of pure silver and 41,417 ounces of gold. This represented a 37% year-over-year surge, fueled by a 77% spike in silver production.

The third quarter painted a similarly robust picture, with 7.7 million AgEq ounces produced—reflecting 39% growth versus the prior year. Additionally, AG achieved record quarterly free cash flow in Q3, with cash generation jumping 67.5% year-over-year to $98.8 million. Company liquidity strengthened to $682 million, while working capital reached a record $542.4 million.

A pivotal move came in early 2025 when AG finalized the acquisition of Gatos Silver, gaining 70% ownership of the Cerro Los Gatos underground mine—a high-quality, long-reserve asset that solidified AG’s position as an intermediate-scale primary silver producer.

Financial Performance and Market Valuation

Earnings Growth Trajectories

Zacks consensus projections highlight aggressive growth for both stocks. HL’s 2025 earnings-per-share (EPS) is expected to expand 281.8% year-over-year, with analyst estimates climbing over the past two months. AG’s 2025 EPS forecasts point to 314.2% growth, though estimates have remained steady.

Stock Price and Relative Valuations

Over the preceding three months, HL shares have surged 107.2%, meaningfully outpacing AG’s 68.6% gain. However, valuation multiples tell a different story. HL trades at a forward 12-month price-to-earnings ratio of 45.76x—above its five-year median of 36.97x. AG’s forward P/E sits at 60.07x, substantially elevated versus its median of 30.16x over the same span.

Growth Catalysts and Operational Challenges

HL’s Balanced Approach

Strong cash generation bolstered HL’s financial position during the period. The company produced $148 million in operating cash flow and roughly $90 million in free cash flow, enabling meaningful debt reduction. Net leverage improved to 0.3x from 0.7x by quarter-end.

However, cost inflation persists. All-in sustaining costs for silver jumped to $11.01 per ounce from $5.19 in the prior quarter, reflecting higher labor expenses and elevated capital requirements. This dynamic warrants ongoing attention.

AG’s Path Forward Amid Headwinds

While AG delivered impressive production gains and record cash flow, near-term obstacles loom. Cost of sales climbed 52.8% year-over-year in the first nine months of 2025, while general and administrative expenses rose 27.3%—largely reflecting higher production costs, labor inflation, and integration expenses from the Gatos Silver acquisition.

Mexico operations present another layer of complexity. AG operates four mines across the country, including Santa Elena, Los Gatos (newly acquired), San Dimas, and La Encantada. Ongoing tax disputes and regulatory challenges in Mexico pose meaningful operational and financial risks despite solid production figures.

Debt levels also warrant observation. Total consolidated indebtedness exited Q3 at $216.8 million, reflecting a 3.5% year-over-year uptick. Although current liquidity cushions the company from immediate stress, further debt accumulation could pressure margins and profitability.

Which Silver Mining Stock Offers Better Returns?

HL appears better positioned for sustained growth in the quarters ahead. Steady advancement of core operations, coupled with maturing exploration projects, supports production stabilization and mine-life extension. Operational efficiency gains and access to higher-grade ore reserves provide additional tailwinds. A strengthened balance sheet and favorable precious-metals pricing create an attractive backdrop for near-term financial performance.

AG, conversely, faces more immediate headwinds. While production growth and record cash flow are noteworthy, rising operating expenses, regulatory complications in Mexico, and escalating debt levels pose meaningful constraints on margin expansion and profitability.

HL currently carries a Zacks Rank #2 (Buy) designation, signaling analyst confidence. AG holds Zacks Rank #3 (Hold), reflecting a more cautious stance. For investors prioritizing near-term stability and balance-sheet strength in the silver mining space, HL emerges as the more compelling choice.