HL vs. PAAS: Which Silver Mining Stock has Greater Upside? – March 24, 2026
Key Takeaways
- Hecla Mining boosted 2025 silver output 5% to 17M oz and revenues 53% to $1.4B on higher prices.
- PAAS delivered record $3.62B revenues and 22.8M oz silver output, up 8% year over year.
- HL and PAAS are expanding via acquisitions and exploration to grow reserves and output.
Hecla Mining Company (HL – Free Report) and Pan American Silver (PAAS – Free Report) are well-known names operating in the Zacks Mining – Silver industry. These two companies are focused on the extraction of minerals, including silver, while driving growth through exploration activities, mine expansions and strategic partnerships.
Both companies are poised to gain from strong growth opportunities in the silver mining sector, supported by higher silver prices and sustained investments in expanding production capacity in recent years. Let’s take a closer look at their fundamentals, growth prospects and challenges.
The Case for Hecla Mining
HL is strengthening its position as a leading North American precious metals producer, supported by strong silver prices, steady operations and focused capital discipline. In 2025, the company produced 17.0 million ounces of silver, up 5% year over year. Also, in 2025, it reported revenues of $1.4 billion, up 53% from the previous year, driven by higher precious metal and zinc prices, and increased sales volumes of precious metals.
The strong quarterly performance was mainly driven by Hecla Mining’s core operating assets, led by the Greens Creek mine in Alaska. During 2025, Greens Creek produced 8.7 million ounces of silver, up 3% compared with 2024. Also, capital investment at Greens Creek in the quarters ahead is expected to increase due to ongoing projects and early-stage work on the dry-stack tailings expansion project, which is expected to provide storage capacity through 2045 once completed.
HL’s Lucky Friday project also delivered improved performance during the year. The mine’s silver production totaled 5.3 million ounces, driven by higher milled grades and improved throughput. Also, the surface cooling project is advancing and is slated for completion by mid-2026, which should allow access to deeper, higher-grade ore and help extend the mine’s life.
The Keno Hill project showed steady improvement in 2025, producing 3.02 million ounces of silver in 2025, up 9% year over year. The results were supported by better power reliability and higher milling rates. Hecla Mining continues to invest in critical infrastructure to advance Keno Hill toward commercial production, which is supporting the production ramp-up.
HL recently announced that the Polaris Exploration Project in Mineral County, NV, has received approval to begin exploration activities in 2026. Also, early drilling at the Midas Project in Nevada has delivered encouraging results. Initial drilling along the previously untested two-mile-long Pogo Trend identified high-grade gold mineralization, including visible gold in a new structure.
Hecla Mining’s strong operating performance translated into solid cash generation during the year. The company generated $562.6 million in operating cash flow and approximately $310.2 million in free cash flow. This cash generation supported continued balance sheet improvement, with HL reducing its debt significantly and lowering net leverage from 0.1x to 1.6x in 2025.
However, the company continues to face cost pressures. HL reported silver all-in-sustaining costs (AISC) per ounce of $11.28 per ounce in 2025. Rising labor costs and sustaining capital investments may pressure margins.
The Case for PAAS
PAAS has solidified its position as a leading precious metal producer in the Americas with a diversified asset base. The company has been reshaping its portfolio following the Yamana acquisition (in 2023) and investing in its producing mines while advancing organic opportunities.
In December 2025, the company reported strong drilling results for its operating mines, which will help advance its long-term exploration strategy to replace and grow its mineral resources. The company has also been extending the lifespan of many of its operations, driven by ongoing exploration efforts across its portfolio.
The company invested $94 million in project capital in 2025 to advance several major projects, among which the most notable is the La Colorada mine in Mexico. The company is reevaluating the development plans for the Skarn project since the discovery of high-grade silver zones and increased mineral resources at La Colorada.
In September 2025, PAAS completed the acquisition of MAG Silver Corp. This move boosts Pan American Silver’s position as one of the leading silver producers globally and significantly strengthens its industry-leading silver reserve base.
Pan American Silver gained a 44% stake in the Juanicipio project, which is a large-scale, high-grade silver mine in Zacatecas operated by Fresnillo plc.
The transaction also adds the full ownership of the Larder exploration project and a full earn-in interest in the Deer Trail exploration project to PAAS’ portfolio. The addition of these assets will contribute significantly to Pan American Silver’s production, reserves and cash flow.
Pan American Silver reported record revenues of $3.62 billion in 2025, increasing 28.4% from 2024. This impressive performance was driven by higher metal prices and silver production. PAAS produced 22.8 million ounces of silver in 2025, surpassing the company’s expectations. The figure increased 8% from 2024. Pan American Silver produced a record 7.3 million ounces of silver in the fourth quarter of 2025 on better-than-expected results at the Juanicipio mine.
Mine operating earnings surged 156% year over year to $1.4 billion in 2025. Adjusted earnings per share were $2.54, marking a significant jump from the year-ago’s 79 cents. The company reported a record cash flow in 2025, indicating robust operational cash generation and disciplined capital spending. A free cash flow of $1.15 billion in 2025 pushed Pan American Silver’s cash and short-term investments balance to $1.3 billion.
How Does the Zacks Consensus Estimate Compare for HL & PAAS?
The Zacks Consensus Estimate for HL’s 2026 earnings per share (EPS) indicates growth of 40.6%. The company’s EPS estimates have remained steady over the past 30 days for 2026.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for PAAS’ 2026 EPS implies year-over-year growth of 56.7%. The company’s EPS estimates for 2026 have increased over the past 30 days.
Image Source: Zacks Investment Research
Price Performance and Valuation of HL & PAAS
In the past six months, Hecla Mining’s shares have surged 54.4%, while PAAS stock has gained 33.5%.
Image Source: Zacks Investment Research
Hecla Mining is trading at a forward 12-month price-to-earnings ratio of 29.14X, below its median of 37.60X over the past five years. Pan American Silver’s forward earnings multiple sits at 12.24X, lower than its median of 19.02X over the same period.
Image Source: Zacks Investment Research
Final Take
Hecla Mining is well-positioned for growth in the coming quarters, driven by continued progress across its core operations and exploration initiatives. Gains in operational efficiency, along with improved access to higher-grade ore, are supporting more stable production and helping extend mine life, while sustained exploration efforts are enhancing the company’s long-term growth pipeline. However, cost pressures persist, primarily due to elevated labor expenses and higher sustaining capital requirements.
PAAS is well-positioned to capitalize on the ongoing rally in silver prices and the recent MAG Silver buyout. Continued investments in growth initiatives strengthen its long-term prospects.
Given these factors, PAAS seems a better pick for investors than HL currently. While Pan American Silver carries a Zacks Rank #2 (Buy), Hecla Mining currently has a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
