What The Hecla? A Miner With A Silver Lining

Dec. 16, 2015 10:28 AM ETHecla Mining Company (HL)28 Comments
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DLP Investing


  • The entire precious metals mining sector is extremely under valued, which is exactly what a prudent value investor seeks.
  • Hecla is a "best of breed" company that is poised to profit when the metals cycle turns.
  • Prudent management decisions and profitable operations make Hecla a big "Buy".

Hecla Mining (NYSE:NYSE:HL), based in Coeur d'Alene, Idaho, with a sister office in Vancouver, is one of the lowest cost producers and largest primary silver miner in the U.S. The company, which has been in existence since 1891, owns the Greens Creek mine in Alaska and the Lucky Friday mine in Idaho. Additionally, the company owns Casa Berardi, a gold mine located in Quebec, Canada. The company is also active on the exploration and development front throughout North America and claims a reserve base of 173 million ounces of silver and 2.1 million ounces of gold.

While Hecla is a pure precious metals play in a sector sitting in the trough of a cycle, true value investors recognize that significant money can be made by patiently investing in "best of breed" companies that are well suited to take advantage as the sector recovers - and Hecla fits this bill.

A Brief History:

Hecla Mining was incorporated in Idaho on October 14, 1891 and, subsequently, in the state of Washington on July 12, 1898, according to the company's timeline. In 1904, the company moved its offices from Spokane to Wallace, Idaho, where it remained for the next 80 years. Throughout the next century, Hecla concentrated on mining silver, lead, zinc, and, eventually, gold, while also venturing into the uranium business with the purchase of deposits in Utah. In 1958, Hecla purchased its first shares of the Lucky Friday mine, which is still operating today.

Hecla became listed on the New York Stock Exchange in 1964 after trading for 49 years on the now-defunct American Stock Exchange, which merged with the NYSE in 2008.

In 1967, Hecla began investing in the development of the Lakeshore copper mine in Arizona, but 10 years later, the impact of low copper prices forced the mine to close, setting Hecla

This article was written by

DLP Investing profile picture
I am a civil engineer and individual investor. I spend a substantial amount of time reading and researching commodities, macro economic trends, and value investing strategies. With my background in the construction industry, I am able to analyze real world information compared to data provided by media outlets. I plan to eventually transition my career towards the financial sector.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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