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« Silver: On the rack! | Main | Silver-Prices.net: Portfolio Update 24 September 2008 »
Wednesday
Oct012008

Hecla Mining Company beaten up!

Hecla vs Silver chart 02oct08

As we can see from the above chart this long standing silver producer has been beaten up lately. Earlier this year Hecla managed to keep pace with silver, however over the last two months the stock price has suffered dramatically.

The stock price closed yesterday at $4.75 and our JAN09 Call options closed at $0.30, for which we paid $1.10 including brokerage costs. As you can imagine we are not happy with this situation and we struggle to see just why this stock has been sold off so aggressively. Its true that silver has taken it on the chin but it is only down just over 10% so far this year whereas Hecla is down about 45% so far this year

Hecla Mining Company has a Market capitalisation of $753.12 million. Yesterday the volume of shares traded was 1.97M on the NYSE, which is about half of its average volume of 4.4 million shares traded and the stock rose $0.07 or 1.5%. Maybe the selling pressure has run its course and we can look for some improvement going forward. However we do need to see just what the ramifications of the bail out package will hold before deciding on our next move. We are considering the possibility of averaging down, but that is as far as we have got for now.


Hecla Mining Company trades on the NYSE under the symbol of HL.

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Reader Comments (15)

The fall in price for HL may be poetic justice. Their management in my opinion has been helping the shorts. They even produced a phony "investigation" telling us that at private investigator hired by them looked at the market manipulation and claimed that there was "nothing illegal" being done. Of course, they refused to identify the "investigator" and refused to produce any details.

It's only appropriate that the present cooked futures prices should drive this company into the ground.

October 2, 2008 | Unregistered CommenterJ. Victor

Sir,

This may well help you solving the Hecla downside conundrum: short sellers were 9 million 12 months ago raising last month to 29 million.

Check it out: http://www.nasdaq.com/aspxcontent/shortinterests.aspx?symbol=HL&selected=HL

hellish regards,

October 2, 2008 | Unregistered CommenterThe Devil

Hecla will be at $12 by X-Mas, relax & buy all U can handle!!

October 2, 2008 | Unregistered CommenterRichard Stump M.D.

Buy More!!

October 2, 2008 | Unregistered CommenterRichard Stump M.D.

ANd More!!

October 2, 2008 | Unregistered CommenterRichard Stump M.D.

Hecla is under $3 today (10/16). Good call Dr. Stump!

October 16, 2008 | Unregistered CommenterNorman

The silver shorts are plying a steady hand, forcing the price of silver down right in the face of a silver shortage! Since the management of Hecla wants to ignore the criminals that are setting out to destroy their company, any of you fools who still own this stock deserve what you get!

October 17, 2008 | Unregistered CommenterJ. Victor

Like Mr. Stump, there are a few fellows around that think to spread the word that commodities will flourish this year. They won't.

Today Hecla Mining Company is approx at $1.37. THIS is a buying opportunity if the company can solve its liquidity problem due to the Green Creek takeover/credit crisis. Its a seasoned company.

Check my views on goldprices.biz on commodities and gold if your interested.

November 18, 2008 | Unregistered Commenterde Graaf

OK, how does Hecla solve its "liquidity problem" if the price of silver stays substantially below what would make the company profitable? Below $9/oz Hecla loses substantial money by staying open.

November 20, 2008 | Unregistered CommenterJ. Victor

First, I have no insight in all factors regarding Hecla Mining Company.

Second, good question! I someone can answer that, I'll be happy to listen carefully.

November 20, 2008 | Unregistered Commenterde Graaf

To follow up on Hecla Mining Company;

Read this; http://www.rttnews.com/Content/QuickFacts.aspx?Id=744211

I think, this problem is solved for now. Only risks are the continuous decline of the silver spot price. If it remains above $9, I don't expect to see any problems and they are able to pay of their remaining bride facility ($20M) due Februari '09.
Long term debt; $161M is only a future issue when silver price (and gold related) remains manipulated by 'despicable market forces'.

December 4, 2008 | Unregistered Commenterde Graaf

de Graff, thanks for this - something we had missed.

December 4, 2008 | Unregistered CommenterSilver Prices

My pleasure.
I'm settled @ intraday opportunity $1.25 a share.

Don't you just love it when a plan comes together. ;)

December 4, 2008 | Unregistered Commenterde Graaf

You did really well - have a nice drink at your favourite spot, and we will have a nice cup of tea too!

December 6, 2008 | Unregistered CommenterSilver Prices

Further news; Good for Hecla, a bit disappointing for shareholders as seen by the premarket trading. But nonetheless they are able to get loan agreements, insteed of not getting them at all.

"Hecla Mining announces it has entered into definited agreement to sell securities to institutional investors for gross proceeds of $21 mln Co announces it has entered into a definitive agreement to sell securities to selected institutional investors for aggregate gross proceeds of $21 mln."

read full agreement below:
http://news.moneycentral.msn.com/provider/providerarticle.aspx?feed=BCOM&date=20081211&id=9443984

brgds,

December 11, 2008 | Unregistered Commenterde Graaf

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