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« The Accumulator Trade 1 Update 28 February 2011 | Main | Silver prices ambushed by the Shorts »
Friday
Feb252011

Hecla Mining Company Up 6.94% Today

HL Chart 26 Feb 2011.JPG

Hecla Mining Company (HL) had a good day on the back of a bounce in silver prices and the release of their fourth quarter and year-end results, taking their stock price up 6.94% or $0.70, to close at $10.79. Hecla's President and Chief Executive Officer, Phillips S. Baker, Jr. commented as follows:

"The fourth quarter and year-end results were record setting in a number of areas, reflecting increased throughput and low costs at our Greens Creek and Lucky Friday operations, and strong metals prices. After considering all investing and financing activities, we generated $178.9 million in net cash flow last year. Our strong balance sheet and growing cash flow should be sufficient to meet our financial obligations of a potential Basin litigation settlement, as well as continuing to fund capital projects to expand our operations and explore our large land packages in the U.S. and Mexico."

The main points of the news release are summarized as follows:

FULL YEAR 2010 HIGHLIGHTS - RECORD FINANCIAL RESULTS

Highest annual revenue and operating cash flow in Hecla's 120-year history
Revenue of $418.8 million, a $106.3 million increase over 2009
Net income applicable to common shareholders of $35.4 million, or $0.14 per basic share
Adjusted net income applicable to common shareholders of $82.6 million, or $0.33 per basic share
Operating cash flow of $197.8 million, a 66% increase over 2009
Silver production of 10.6 million ounces at a total cash cost of negative $1.46 per ounce, net of by-products
Silver reserves and resources increased to 142 million ounces and 248 million ounces, respectively
Significant advancement with the Lucky Friday #4 Shaft Project
Cash and cash equivalents of $283.6 million at December 31, 2010 and no debt

FOURTH QUARTER 2010 HIGHLIGHTS

Revenue of $134.5 million, a $46.4 million increase over the same period in 2009
Net loss applicable to common shareholders of $13.1 million, or $0.05 per basic share, after giving effect to certain significant items:
$193.2 million accrual on the Coeur d'Alene Basin litigation
$133.6 million in tax benefit
Adjusted net income applicable to common shareholders of $30.6 million, or $0.12 per basic share
Operating cash flow of $85.8 million, a 34% increase over the same period in 2009
Silver production of 2.7 million ounces at a total cash cost of negative $0.14 per ounce, net of by-products

Established in 1891 in northern Idaho’s Silver Valley, Hecla Mining Company’s rich history of mining has distinguished it as a respected precious metals producer. Hecla is the oldest U.S.-based precious metals mining company in North America and the largest producer of silver in the U.S. Headquartered in Coeur d’Alene, Idaho, with a sister office in Vancouver, B.C., this international, publicly traded company is 119 years old.

In 2009, Hecla was one of the lowest-cost primary silver producers in North America, producing a record 10.9 million ounces of silver at an average total cash cost of $1.91 per ounce. The company has exploration properties and operating mines in the U.S. and Mexico. Hecla has proven operating expertise and highly prospective exploration opportunities where it operates as well as within its development projects.


Back in the day of the Hunt Brothers this stock traded above $30.00, with silver prices pushing to higher levels this could just be one the stocks to follow. Also note that their cash costs are negative due to the credits obtained from the base metals that they also produce.

For disclosure purposes we do own this stock.


PS: Just in case you missed it we have just closed an option play on www.silver-prices.net with an average profit of 96.5% on Silver Wheaton Call Options. Click here to read more.


Many thanks to those of you who have recently signed up for options trading service, its very much appreciated. Please be patient as we have a number of new trades on the drawing board and as you are aware the timing of them is critical to their success.

We now have 65 winners out of 67 options trades, or a 97.00% success rate If you have any questions regarding these trades please address them through their site where they will be handled quickly and I hope efficiently.

sk chart 19 Feb 2011.JPG



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Stay on your toes and have a good one.

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