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Hecla Mining: Stock Price Estimate at $100 Silver
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Key Assumptions
1. 2025 Production:
Silver: 20M oz.
Gold: 175K oz.
2. Prices:
Silver: $100/oz.
Gold: $4,000/oz.
3. Free Cash Flow (FCF): ~$1.6B annually.
4. Shares Outstanding: ~400M.
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Step 1: Revenue Estimation
1. Silver Revenue:
20M oz × $100/oz = $2,000M ($2B).
2. Gold Revenue:
175K oz × $4,000/oz = $700M.
3. Total Revenue:
$2B + $700M = $2.7B.
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Step 2: Market Cap Calculation
1. Using a 20x FCF Multiple:
Market Cap = $1.6B × 20 = $32B.
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Step 3: Stock Price Calculation
1. Stock Price:
Market Cap ÷ Shares Outstanding.
$32B ÷ 400M = $80 per share.
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Conclusion
If silver reaches $100/oz and gold reaches $4,000/oz, Hecla Mining’s estimated stock price could be approximately $80/share. This assumes continued strong production and successful project development.
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Additional Considerations:
Debt Management: Leveraging higher silver prices effectively.
Permitting: Success in permitting Montana projects could boost production.
Market Sentiment: Global economic conditions and silver demand will impact valuations.
This scenario represents a bullish case for Hecla Mining with significant upside potential tied to rising silver and gold prices.
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