Shares of Hecla Mining (NYSE: HL) plummeted 25.2% in March, according to data provided by S&P Global Market Intelligence, hitting 2026 lows of $16.25 per share. That decline represented a staggering 52% retreat from its 52-week high, a peak it reached less than two months ago.
Hecla closed an asset sale last month and plans to use the proceeds to repay debt. While the move bolsters its financials, the underlying prices of precious metals remain the primary driver of Hecla’s stock price.
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Because silver as an asset does not pay interest, it often loses appeal compared to bonds when inflation remains high. With the Federal Reserve keeping interest rates unchanged because of stubborn inflation, silver plunged in March, including a more than 10% single-day drop on March 19.
Gold struggled as well, despite the Iran war. Surging Treasury yields, a stronger U.S. dollar, and stubborn inflation overshadowed gold’s appeal as a safe-haven asset, prompting investors to lock in gains following a record-breaking rally in the preceding months.
In the last quarter, nearly 60% of Hecla’s revenue came from silver, and 29% from gold. In 2024, Hecla alone accounted for 37% of total U.S. silver production, leaving it highly sensitive to fluctuations in precious metal prices.
Hecla’s sell-off in particular intensified in March because the company had recently issued lower silver production guidance for 2026. Following a successful 2025, where silver production climbed 5% to 17 million ounces, the miner now anticipates a pullback to between 15.1 million and 16.5 million ounces this year.
In March, Hecla sold its subsidiary that owns the Casa Berardi gold mine in Quebec, Canada to a subsidiary of Orezone Gold for a total value of around $593 million, including an upfront cash payment of $160 million and…
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