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Hecla Mining Co. (HL) is scheduled to report its Q2 2012 results on August 7, 2012, before market opens. The street expects EPS and revenue of $0.04 and $80.20M, respectively.

In this article I will recap the historical results of the company, its latest EPS estimates vs. surprises, the latest news from HL and the news from its closest competitors.

Hecla Mining Co. Revenue and Net Income History

Recent EPS Actuals vs. Estimates

The company has met or beaten analysts' estimates in the last two quarters. In the last quarter it reported $0.07 EPS, beating analyst estimates of $0.05.

Hecla Mining Co. EPS Historical Results vs Estimates

The consensus EPS estimate is $0.04 based on 9 analysts' estimates, down from $0.11 a year ago. Revenue estimates are $80.20M, down from $117.86M a year ago. The median target price by analysts for the stock is $5.25.

Average recommendation: Hold

Source: Marketwatch

Analyst Upgrades and Downgrades

  • On May 29, 2012, Global Hunter Securities initiated Neutral rating for the company.
  • On March 29, 2012, Deutsche Bank initiated Hold rating for the company.

Latest News

  • On July 26, 2012, Hecla Mining Company (Hecla) announced that it intends to have an indirect wholly-owned subsidiary make offers to acquire all of the outstanding common shares of U.S. Silver Corporation (U.S. Silver) for CDN$1.80 per common share in cash and acquire each outstanding common share purchase warrant for CDN$0.205 (its in the money amount based on such price per common share) (together, the Hecla Offer).
  • On May 8, 2012, Hecla Mining Co announced its Board of Directors has declared the third consecutive quarterly dividend of $0.0225 per share of common stock for a total amount of approximately $6.4 million.
  • On May 8, 2012, Hecla Mining Co announced that it expects to meet fiscal 2012 targets as production and throughput increased through the remainder of the year. With the reopening of the Lucky Friday, along with development projects in the pipeline, the Company fully anticipates production growth between fiscal 2013 and fiscal 2017.
  • On February 21, 2012, Hecla Mining Co reiterated its fiscal 2012 silver production estimate of approximately 7 million ounces, which excludes production from the Lucky Friday mine.
  • On February 21, 2012, Hecla Mining Co announced that its Board of Directors has elected to declare the quarterly silver-linked dividend of $0.01 per share of common stock, based on an average realized silver price of $31.61 in the fourth quarter of 2011.
  • On February 15, 2012, Pomerantz Haudek Grossman & Gross LLP announced that it has filed a federal securities class action (12-cv-067) in United States District Court, District of Idaho, on behalf of all persons who purchased Hecla Mining Company securities between October 26, 2010, and January 11, 2012, inclusive (Class Period).
  • On February 15, 2012, Rigrodsky & Long, P.A. announced that a class action lawsuit has been filed in the United States District Court for the District of Idaho on behalf of all persons or entities that purchased the common stock of Hecla Mining Company between October 26, 2010 and January 11, 2012, inclusive (Class Period), alleging violations of the Securities Exchange Act of 1934 against the Company and certain of its Officers and/or Directors.
  • On February 14, 2012, Brower Piven announced that a class action lawsuit has been commenced in the United States District Court for the District of Idaho on behalf of purchasers of the common stock of Hecla Mining Company during the period between October 26, 2010 and January 11, 2012, inclusive (Class Period).
  • On February 9, 2012, Shareholder rights firm Robbins Umeda LLP is investigating possible breaches of fiduciary duty and other violations of the law by certain officers and directors at Hecla Mining Company.
  • On February 6, 2012, Holzer Holzer & Fistel, LLC announced that it is investigating potential breaches of fiduciary duty by certain officers and directors of Hecla Mining Company.

Competitors

Barrick Gold (ABX), Freeport-McMoRan Copper & Gold (FCX), Pan American Silver (PAAS), Silver Wheaton (SLW), and Silvercorp Metals (SVM) are competitors for Hecla Mining and the table below provides the key metrics for these companies and the industry.

Hecla Mining Co. key ratio comparison with direct competitors

The chart below compares the stock price changes as a percentage for the selected companies for the last one year period.

HL Chart
(Click to enlarge)

HL data by YCharts

Competitors' Latest Development

  • On August 3, 2012, Silvercorp Metals Inc. announced that its Board of Directors has declared its first quarter fiscal 2013 dividend of CAD0.025 per share to be paid on or before October 21, 2012 to shareholders of record at the close of business on September 28, 2012.
  • On July 26, 2012, Barrick Gold Corp announced that for fiscal 2012, it continues to expects gold production to be in the range of 7.3-7.8 million ounces.
  • On July 25, 2012, Barrick Gold Corp announced that its Board of Directors has declared a quarterly dividend of $0.20 per share, payable on September 17, 2012 to shareholders of record at the close of business on August 31, 2012.
  • On July 24, 2012, Reuters reported that Freeport-McMoRan Copper & Gold Inc. has offered a 9.36% stake in its Indonesia operations that run the second-biggest copper mine to the Southeast Asian country's government, a move aimed at deflecting pressure from new industry rules on project ownership.
  • On June 27, 2012, Barrick Gold Corp announced that the Ontario Superior Court of Justice issued its ruling on June 26, 2012, with respect to the El Morro mining project, finding against the position of Barrick Gold Corp.
  • On June 26, 2012, Barrick Gold Corp announced that Ammar Al-Joundi has been named Executive Vice President and Chief Financial Officer of the Company, effective July 10, 2012.
  • On June 6, 2012, Barrick Gold Corp announced that its Board of Directors has appointed Executive Vice President and Chief Financial Officer Jamie Sokalsky as President and Chief Executive Officer, replacing Aaron Regent.
  • On April 19, 2012, Freeport-McMoRan Copper & Gold Inc. announced that fiscal 2012, it expects 3.7 billion pounds of copper sales. 1.1 million ounces of gold. 81 million pounds of molybdenum.
  • On March 23, 2012, Silver Wheaton Corp. announced that its Board of Directors has declared its first quarterly cash dividend payment for 2012 of USD0.09 per common share.
  • On March 23, 2012, Silver Wheaton Corp. announced that for fiscal 2012, it anticipates another year production growth climbing to approximately 27 million silver equivalent ounces.
  • On February 13, 2012, Freeport-McMoRan Copper & Gold Inc. announced that it has completed the sale of $3.0 billion of senior notes. The offering generated net proceeds of approximately $2.97 billion, which FCX expects to use plus cash on hand to redeem its outstanding 8.375% Senior Notes due 2017.
  • On February 10, 2012, Silvercorp Metals Inc. announced that its Board of Directors has declared its third quarter fiscal 2012 dividend of CAD0.025 per share to be paid on or before April 21, 2012 to shareholders of record at the close of business on March 31, 2012.
  • On February 7, 2012, Freeport-McMoRan Copper & Gold Inc. announced that its Board of Directors has authorized an increase in its annual common stock dividend from $1.00 per share to $1.25 per share.

Technical Overview


The stock has a market capitalization of $1.26B and is currently trading at $4.40 with a 52 week range of $3.70 - $8.10. The stock's year-to-date performance has been -15.22%. It is currently trading below 20, 50 and 200 SMA.

Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Source: Earnings Preview: Hecla Mining

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