Why Has Hecla Mining Stock Plunged 50% From 52-Week High?

Hecla Mining (NYSE: HL) has been one of the hardest-hit precious metals stocks in recent weeks, losing nearly 50% value from its late-January 52-week high of $34.17 per share. The sell-off continued today, with the stock plunging 12% in early Thursday morning trading to a low of $16.25 per share, a level it last saw in December 2025.

Hecla is the largest silver producer in the U.S. and Canada, with annual production that outpaces its nearest rival by nearly 90%. The sheer size of its operations makes Hecla highly sensitive to silver prices, and that pretty much explains why the stock is in a free fall despite delivering record numbers in 2025.

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The big silver fall

Silver plummeted by more than 10% on March 19 to below $67 per ounce, levels last seen in December 2025. That's a sharp reversal from the near-$115 levels silver was trading at just a few weeks ago.

The Federal Reserve kept interest rates unchanged at its meeting on Wednesday amid stubborn inflation and surging oil and gas prices. Brent crude oil jumped 7% early Thursday to over $114 per barrel on supply disruptions from the Middle East.

Silver is often viewed as a safe-haven asset and a hedge against inflation and economic uncertainty. Ironically, its price is still going down, not up, despite an ongoing war.

One reason is that high oil prices, driven by geopolitical conflicts, are putting upward pressure on inflation, forcing central banks to delay interest rate cuts. High interest rates make other assets, like bonds, more appealing, while non-yielding assets, like silver, become less attractive. Also, oil price shocks have triggered fears of an economic slowdown, which could hurt silver's industrial demand. Silver prices are reflecting the fears.

Should you buy Hecla stock now?

2025 was a record year for Hecla, with both revenue and net income reaching all-time highs on the back of higher production and prices.

Hecla's balance sheet is in its best shape in years, and the miner aims to double its exploration spending in 2026. Hecla has also signed an agreement to sell its Casa Berardi gold mine in Quebec, Canada for $593 million to focus on its premier silver assets. The sale will immediately infuse $160 million in cash, which Hecla plans to use to repay debt and invest in growth.

However, Hecla expects a slight dip in silver production in 2026. That appeared manageable as long as silver prices were elevated, as that could have offset low volumes. That safety net has vanished now, which is why Hecla stock is being so hard. For long-term investors, though, the big drop offers a compelling opportunity to add the silver stock to your portfolio.

Neha Chamaria has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.