- Hecla Mining (HL -3.2%) and Alio Gold (ALO -5%) are lower in early trading after RBC downgrades both stocks to Underperform from Sector Perform (I, II), saying the companies’ limited near-term cash flow is placing further strain on existing operational challenges.
- For HL, negative impacts of thin balance sheets will have a ripple effect on under-invested projects, preventing it from improving cash flow declines for San Sebastian underground mining, says RBC analyst Mark Mihaljevic.
- ALO's balance sheet is expected to remain tight through 2021 and insufficient in supporting developments on the high potential Ana Paula project, and updates on mining plans in Florida Canyon were below expectations and a sign of near-term challenges in allocating project capital, according to Mihaljevic.
- Source: Bloomberg First Word