Despite low-cost status, Hecla Mining also must wait for gold price recovery

|About: Hecla Mining Co. (HL)|By:, SA News Editor

Gold and silver miners - even low-cost producers such as Hecla Mining (HL +1.4%) - have been cutting costs to improve profits and attract investors, but BB&T analysts think it may not matter - even to those low-cost producers - unless the price of gold starts rising again.

In initiating HL with a Neutral rating, BB&T believes investors will treat Hecla like the other miners: They'll want to see austerity and further spending cuts when it introduces 2014 guidance along with its Q4 earnings release.

Given HL’s earnings leverage to silver and gold prices, the firm doesn’t see HL generating meaningful free cash flow or the stock appreciating materially from current levels until precious metals prices rebound.

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