Lucky Friday Mine Feasibility Study: $554M NPV Over a 17-Year Mine Life
Hecla Mining Company's Lucky Friday Mine in Shoshone County, Idaho, USA has a Feasibility Study outlining an after-tax NPV of $554M. The mine plan runs 17 years at about 425000 tons ore per year.
Hecla Mining Company's Lucky Friday Mine has reported Feasibility Study results for the silver, lead, zinc project in Shoshone County, Idaho, USA. The study headlines an after-tax net present value of $554M at a 5% discount rate. It reflects Hecla Mining Company's (HL) latest disclosed economics for the asset.
Economics. The after-tax NPV is $554M using a 5% discount rate. Economics are based on US$21/oz Ag, US$0.95/lb Pb, US$1.25/lb Zn.
Production and mine plan. The project envisions an underground operation. Life of mine is 17 years. Average annual production is approximately 425000 tons ore. Average head grade is 13.7 oz/ton Ag, 8.3% Pb, 3.3% Zn. Metallurgical recovery averages 96.4%.
Resources and ownership. The company holds a 100% interest in the project.
These figures are extracted from Hecla Mining Company's technical disclosures and reflect the most recent Feasibility Study on file. Compare this project against other developers and producers in our project economics database, and always verify the numbers against the original technical report before making any investment decision.
Reserves & Resources
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Proven & Probable | 5.46 Mst | 13.7 oz/ton Ag, 8.3% Pb, 3.3% Zn | 74.7 Moz silver, 452,000 tons lead, 181,000 tons zinc |
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Measured & Indicated | 10.50 Mst | 7.6 oz/ton Ag, 4.9% Pb, 2.5% Zn | — |
| Inferred | 5.38 Mst | 7.8 oz/ton Ag, 5.8% Pb, 2.4% Zn | — |
Our Analysis
- NPV after-tax
- $554M
higher than 51% of 360 projects we track
- Mine life
- 17yrs
- Study price assumption
- US$21/oz Ag, US$0.95/lb Pb, US$1.25/lb Zn
The project lands squarely in the middle of the pack: an after-tax NPV of $554M ranks it higher than 51% of the 360 projects we track. That is not a standout number, and it does not need to be. What matters more is that this is a feasibility study, the build-ready estimate with a typical plus or minus 15% band, so the returns carry real weight rather than scoping-level optimism. For an investor, the takeaway is not that this asset is exceptional, but that it is credible and financeable.
The financeability question is answered by the company's size. With a market cap of roughly US$10.01B and a portfolio of 14 tracked projects, this is a large-cap diversified miner, and the NPV sits well below that equity value. The build is not a stretch for the balance sheet, which removes the dilution and funding overhang that typically discounts single-asset developers. The 17-year mine life in Shoshone County, Idaho, adds a further layer of comfort: a US jurisdiction with a long production horizon is a lower-risk backdrop for a base and precious metals project.
The constraint to watch is the price deck. The study assumes US$21/oz Ag, US$0.95/lb Pb, and US$1.25/lb Zn. The silver price is the swing factor for a project of this type, and the NPV is only as good as that assumption holds. The single question that decides whether this works is whether the silver price sustains the level the study requires over a 17-year life; if it slips, the mid-pack ranking starts to look less comfortable.
Our take, benchmarked against the project economics in the Mining Stocks database. Figures are estimates drawn from company technical reports — not investment advice; always verify against the source filing.