Hecla Mining (HL): Among the Best Zinc Stocks to Buy According to Hedge Funds

Hecla Mining (HL) has emerged as a top choice among hedge funds looking to invest in the zinc sector. With a strong focus on zinc production and reserves, as well as a diversified metal portfolio, Hecla Mining offers an attractive investment opportunity for those seeking exposure to the growing demand for zinc in various industries, particularly electric vehicles (EVs) and green technologies.



Hecla Mining's zinc production and reserves are significant compared to its peers. In 2023, the company produced 27.5 million pounds of zinc, higher than many of its peers, such as Coeur Mining (17.5 million pounds) and Alamos Gold (12.5 million pounds). Additionally, Hecla Mining has zinc reserves of 145 million pounds, which is also higher than many of its peers. This strong zinc position provides Hecla Mining with a diversified revenue stream and reduces its dependence on silver and gold.

Hecla Mining's diversified metal production, which includes silver, gold, lead, and other metals, further enhances its investment appeal. This diversification allows the company to mitigate risks associated with price fluctuations in a single commodity and take advantage of opportunities in different markets. For instance, when the price of one metal is low, the company can focus on producing and selling other metals that are in high demand, maintaining profitability and maximizing shareholder value.



Hedge funds recognize the benefits of investing in a company with a balanced portfolio of metals, as it provides a hedge against price fluctuations and reduces the overall risk of the investment. Hecla Mining's strong financial health, with a return on equity (ROE) of 1.79% and a return on invested capital (ROIC) of 2.98%, further supports its investment appeal. These positive financial indicators suggest that Hecla Mining is a stable and profitable company, making it an attractive investment for hedge funds.

In conclusion, Hecla Mining's strong zinc production and reserves, combined with its diversified metal portfolio and robust financial health, make it an attractive investment for hedge funds seeking exposure to the growing demand for zinc. As the company continues to expand its operations and increase production, it is well-positioned to capitalize on the growing demand for zinc in various industries, particularly EVs and green technologies. Investors looking to gain exposure to the zinc sector should consider adding Hecla Mining to their portfolios.