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AH?
Yes we had a nice 1 buck run from around 1.25 to about 2.25 in rough numbers in short order. I think that bodes well for the future.
Best of Luck I am off to work.
Tom
Volume coming into the bid maybe we bottomed for the day?
Volume coming into the bid maybe we bottomed for the day?
You are correct Montanore even with the dilution we should have a bright future with HL.
Off to work have a good weekend.
Tom
Hello Montanore,
Did you ever try the wine http://www.montinore.com/index.html
I have all my HL still and wish I could day trade to buy low and sell high and build my position but do not seem to have the luck or skill.
I have to look at HL different as they have diluted so much since I bought in. Now 260 million shares FD. Of course they have a monster deposit with Greens Creek.Last year HL ran to almost 14 with silver at 20. So with the debt and costs down if we see 20 buck silver and do not see as high a price for lead and zinc it may be hard for HL to go over 7 bucks.
I would be interested in hearing how other people see HL price wise in the long term with silver at 20 or so bucks if not more.
Tom
montanore do you or anyone else have a link to HL short interest? I saw a rumor that CDE short interest had seen some covering.TIA.
EDIT:
http://www.shortsqueeze.com/?symbol=hl&submit=Short+Quote%99
Thank you Montanore. Good post.
A careful review of that chart shows a lot of big sellers have bailed. Now some funds coming in and buying. Maybe HL has bottomed.
Eastbourne and T Rowe Price sold 20,000,000 shares. Hopefully the big sellers are gone. Van Eck added a few million:
http://www.mffais.com/hl-b.html
Hello Montanore,
I hope your timing the buy on HL was good! Last week the price fell below my buy point. I got a good buy on HL only because I had sold some other miners that had fallen 70% + and was in a panic mode. I thought HL would hold up better than it has in a rally.
There are many things I like about HL though:
1.Huge resource.
2.Resources all in the USA.
3.Comptetitive production costs.
4.No hedging even though they should have hedged zinc and lead looking back.I say this as I could see silver go to 20 and zinc and lead be quite low still.
5.Hydro coming to Greens Creek. They use 550,000 gallons of diesel a month. We have cost savings now but need the hydro.
6.Upside exploration at Greens Creek but maybe more so in the Lucky Friday area:
< successful exploration and definition drilling at the Lucky Friday mine also contributed, by adding
more than 10 years of production to the mine life at the current mining rate. It was a phenomenal year at Lucky Friday,
Mineralized material is up by 55%. Recent drilling has also shown there is potential to expand the resource further to the East and at depth.
Lucky Friday is but one of four major districts that we have the dominant land position. Exploration is occurring at all four that we expect to add resources. But more importantly, these are places we believe have the potential to find that new ore body that can change the Company.
http://library.corporate-ir.net/library/63/632/63202/items/325962/B69514B1-0832-4E4E-8496-94ADAB5E643C_HL-Transcript-Q4Year2008-02-24-2009.pdf
I understand drilling has been quite successful. I am wondering if they have already located a rainmaker deposit?
Hello Montanore,
I am still holding HL. At least my other one is shining bright. But HL will have it's day in the sun, gulp I hope.
The Northern Miner, 2/26/2009
Richmont shows the way in tough times
While other junior miners continue to be under-cut by economic uncertainty, Richmont Mines' (RIC-T, RIC-N) fourth quarter results show a company being rewarded for its shrewd moves.
In December of last year Richmont closed a friendly takeover of its joint venture partner, Patricia Mining, at the high grade Island gold mine 50-km north of Wawa Ont.
The timing of the deal was perfect.
Richmont swooped when the mine wasn't generating the anticipated cash flows that Patricia needed to meet its commitments. Richmont got Patricia's 45% interest for just $17 million right around the time that many of the issues at the mine were being sorted out.
For the quarter the mine processed 47,898 tonnes of ore at an average grade of 9.04 grams per tonne, and 13,915 oz. of gold were sold at an average price of US$890 per oz.
That compares well with the previous year's fourth quarter when 35,202 tonnes of ore were processed at an average recovered grade of 6.45 grams per tonne, and just 7,302 oz of gold were sold at an average price of US$726 per oz.
Richmont's president and chief executive, Martin Rivard, says while the company had been anticipating mining higher grades in the quarter, it benefited from unforeseen events too.
"What was unplanned was the workforce issue improving quite a bit with base metal mines closing," Rivard says.
He explains that since taking over as operator of the project in 2005 Richmont has been dogged by staffing issues --- issues that it was unable to resolve until the downturn in the base metals prices freed up skilled miners.
"Execution is a key thing at Island," he says. "It's not a large operation so you need experienced miners to get the production levels."
Coupled with improved production was good news on the cost side as cash costs decreased to US$546 from US$621 in last year's fourth quarter.
The rejuvenation of the mine helped bolster overall company revenue for the quarter to $22.9 million, up 122% from the same period last year, with full year revenue up 85% to $70.6 million.
Company wide Richmont sold 70,945 oz. of gold at an average price of US$876 per oz. That compares will with the 46,193 oz it sold for all of 2007 at an average price of US$699 per oz.
Most importantly the stronger revenue wasn't completely eroded by higher costs and write-downs as it has been for so many other miners.
Revenue managed to flow down to the bottom line bringing net income in at $2.1 million, or 9¢ per share, compared with a net loss of $1 million, or 3¢ per share for the year previous.
That isn't to say, however, that the company escaped the quarter entirely unscathed.
Operating costs for the quarter came in at $13 million compared with just $6.5 million in the same period the prior year.
Rivard attributes the higher operating costs to its Beaufor mine in Quebec where increased definition drilling and higher milling costs - due to prior high steel and zinc prices - hurt the bottom line.
But with zinc and steel prices now lower, it is only a matter of time before those reduced costs make their way into Richmont's milling cost.
"Unfortunately it takes a little bit more time getting the reductions," he says. "We don't get reductions as fast we get increases."
He anticipates that such downward re-pricing of inputs will flow through to the company in the second quarter of this year.
In the meantime, increased production and lower costs overall -- the average cash cost overall came down to US$550 per oz. of gold from US$556 per - managed to offset the higher operating costs.
But the solid results on the production side causing Richmont to neglect its exploration program.
The company upped its exploration and project evaluation expenditures to $2.4 million in the fourth quarter from $1.3 million for the same quarter the year previous.
Of that amount, $700,000 was spent on exploration at its Beaufor Mine; $900,000 was spent at Island gold mine and $500,000 at the Golden Wonder project.
And the company's exploration program for the coming year calls 45,000 meters of drilling at Beaufor to test for further development at depth and 26,000 metres of definition and exploration drilling at Island.
As for Golden Wonder, back in October Richmont announced it wouldn't pursue its joint venture option there after results from 16 holes for 2,037 metres didn't confirm continuity of an economically viable ore zone in the area it was targeting.
Another key element to the Richmont story is the company's strong cash position and lack of debt -- two factors that speak to the carefulness with which the company has been built since going public in 1985. Richmont's having just 26 million shares outstanding is also testimony to its financial sharpness, and leaves it with many options when it comes to raising new funds.
At year end cash and cash equivalents were $26 million, compared with $27.3 million at December 31, 2007.
Being in such a strong position has Richmont looking to stay on the acquisition path. Rivard says any possible acquisition would be made with an eye towards strengthening the company's position in Ontario and Quebec.
Still, Richmont isn't about to throw-off its carefully built balance sheet in a wild blaze of acquisitions.
"We're not looking to get debt on the balance sheet," Rivard says. "We're focused on using our working capital to fund acquisition and for the right projects."
A statement many chief executives would love to make, but only a very few are actually in a position to execute on.
The Island gold mine went into production in the fourth quarter of 2007 and currently has proven and probable reserves of 1.03 million tonnes grading 8.72 grams gold for 289,069 oz. of gold.
During the first nine months of 2008, the mine produced at approximately 65% of its design capacity. In the fourth quarter of 2008, production was at around 80% of design capacity.
The Beaufor mine produced 123,958 tonnes of ore at 8.62 grams for production of 34,353 oz. of gold in 2008.
Proven and probable reserves at the Beaufor Mine come in at 244,063 tonnes grading 8.89 grams per tonne for 69,792 oz. of gold.
New HL presentation. I think things may be on the upswing. Latest financials are also out:
http://media.corporate-ir.net/media_files/irol/63/63202/Hecla_Presentation_BMO_Feb09.pdf
http://phx.corporate-ir.net/phoenix.zhtml?c=63202&p=irol-newsArticle&ID=1259173&highlight=
Exploration drilling at the Lucky Friday mine focused on the east and central part of the resource down to the 7100 Level. This drilling suggests that the two main 30 and 40 veins are in places coalescing into a thicker, high-grade vein below the 6300 Level. These drill intersections are some of the most impressive in the history of drilling at Lucky Friday and represent an even better orebody than currently being mined.
Alaska – Underground exploration drilling in the Gallagher Zone at Greens Creek successfully extended the mineralization in a southerly plunge over 200 feet. Surface drilling defined extensions of the mine contact rocks northeast of the current mine workings, which can be correlated for over 2,000 feet and is still open in both directions. This target area could be accessed through the mine’s current infrastructure and will be drilled in 2009. Surface drilling during the summer has also confirmed the presence of mine contact rock eight miles north of the mine.
Silver production rose to 8.7 million ounces at a cash cost of $4.20 per ounce in 2008. Cash costs per ounce rose in the second half of the year due to higher costs for fuel and supplies and lower by-product credits from lower lead and zinc prices. Fourth quarter 2008 silver production was 2.5 million ounces of silver at a cash cost of $7.49 per ounce. Hecla forecasts 2009 silver production in the range of 10 million to 11 million ounces, with estimated average total cash costs of about $6 per ounce of silver, at current by-product metals and diesel prices.
LOL. The bowser. I still have high hopes for HL. When the public gets involved and when they clear this debt issue somewhat it will fly.They have about 10 year P&P I think if not more and it may get rerated upwards with silver prices and discoveries at lucky friday.Saville built a case a year or so ago for HL at 20 bucks so with the dilution and higher silver we could see 12 bucks. That is about a 7 bagger from her. JMO.
RIC my other hold other than HL just hit a 6-7 month high.HL still struggling. I think it may take more time (3 months to next quarter release) to get to 3 bucks.
Burn the Silver Share Shorts - Check Out CDE Fundamentals
James Anderson
And an Open Letter to Nancy Pelosi –Speaker of the US House of Representatives
Silver Investors, especially those in Silver Equities have been put to a severe test over the past 8mths. It was bad enough that the Silver bullion price was cut over 50% from US$19 in July ’08 to $9 in Nov. Silver shares started falling a lot earlier than physical from March/April ’08 & fell right out of bed losing up to 94% of their value. - and that’s just the BIG already established Companies ! A lot of smaller Co’s have been wiped out & will not recover.
There is no doubt in my mind that the above was no accident. It was in my opinion engineered by greedy, unscrupulous Wall St criminals who are allowed to do so by corrupt & negligent regulators. Those already interested & involved with owning Precious Metals are well aware of the ongoing & continuous manipulation & intervention by TPTB. It is a subject that has been well covered & we expect that the manipulators will be overwhelmed at some time & hopefully sooner than later J
Short Selling (without the "Up-Tick" rule) is the mechanism used to rape & plunder
(Naked Short selling is another issue -well covered by Financial Sense & others . It is still an unresolved issue)
Many of us are victims of US short selling. Short sellers have targeted the Co I am invested in even though the Co has working assets (Mines) , appears to be well funded & has assets that have appreciated significantly since the melt down on World Share Markets in Oct 2008. This has caused me to doubt there is anyone responsible in the US Govt for Financial Management . As an Australian citizen I find it incomprehensible that such lax financial oversight could be allowed to happen in the so called World's most "advanced country" -and for so long! Many thousands are in a similar position having lost on paper a huge part of their former Share investment for no good, explainable reason except that Greed & Corruption runs rampant in the US Share Markets despite "supposed" increased scrutiny since the meltdown last year. It would appear to be a fact of life that the US Regulators are beholden to & in cahoots with the criminal side of Wall Street. Otherwise why have immediate changes not been made to the Short Selling Rules?
Shorting is done by Institutions & not always just by Hedge Funds. Shorting is always better if you hunt in packs. Collusion between shorting Fund Managers pays although no one will admit it & no one will be able to prove that it goes on! Targets for shorting are shares in which you can generate fear. When you factor in the huge whack that Silver received last year (US$19 down to $9) it would appear that was the first step –now followed up by unrelenting shorting. it's likely that the Criminals have been given the perfect victims –the large & liquid Silver Co's who have exposure to debt because of funding for new mines etc. Analysts & Rating agencies jump on the "band wagon" to help their "mates". It’s a bad situation to be in for any Co –but the Shorts can be beaten. The following is essential for a fair market.
The Up-Tick Rule
In Australia & other "advanced" countries the "up-tick Rule" applies to all shorting -whether deemed to be a "Financial Stock or not". The "up-tick rule" or "tick test" required short sellers to sell at a price above the last price paid for a stock, or at the price of the stock’s last trade if it was higher than the previous price. The rule had been in effect since 1938, but the SEC removed the rule last year, on July 6, 2007, after saying it was "obsolete" thus giving short traders a free reign on shorting without any real mechanism to mitigate.
Nov 18th 2008 - -Wall St Journal -- "There's a Better Way to Prevent 'Bear Raids" - The SEC should restore the up-tick rule http://online.wsj.com/article/SB122697410070336091.html --
The SEC was warned by two commentators not to repeal the up-tick rule since it limited "bear raids" -- when short sellers drive down a stock's price in the hopes of scaring other investors into dumping the stock or triggering margin calls to force liquidations. In response, the agency approvingly summarized the views of three other commentators -- that bear raids "are highly unlikely to occur in today's markets, which are characterized by much smaller spreads, higher liquidity, and greater transparency than when the rule was adopted 70 years ago." This summary did not take into account another factor -- the advent of over $1 trillion managed by hedge funds with the ability to short stocks.
In fact, after the repeal of the up-tick rule, there was a marked increase in the number of NYSE-listed stocks with price drops of over 40% in a day -- a rough proxy for a bear raid. In the 12 months following Sept. 30, 2007, the number of such huge drops doubled as compared to a prior period with similar market declines and high volatility -- the 12 months following March 31, 2000.
The passage of the Economic Stabilization Act of 2008 has not stopped bear raids, so the SEC is reviewing its tool kit on short selling. Instead of another blunt tool like a temporary ban, the SEC should promptly bring back the up-tick rule
Nothing so far has happened -- allowing the criminal element to rape & pillage as usual.
Of the major Silver Co’s the 3 most shorted are Silver Standard Resources Inc (SSRI) 7% of Shares, Hecla Mining Company (HL) 13.9% of Shares & Coeur dAlene Mines Corp (CDE) a massive 14.85% or 76.4 million shares! It is mind boggling & patently reeks of collusion. All of these Companies are invested in an asset that has appreciated substantially over the past few months. Silver has risen over 30% ( Oct 24th '08 to Feb 11th 09)
CDE - Worth looking at for the fundamentals if you believe in a higher Silver Price.
Despite being "well funded" CDE was driven down to a low of .36cents on Nov 20th .The price then gradually recovered to .98cents on Jan 8th when physical Silver was at US$ 10.88 per oz. Silver is now at US$13.40 on Feb 11th ’09 and CDE has been driven down again by Shorting to the unrealistic price of $.68cents !
*So the facts are that after an increase of 18.81% in the price of Silver CDE drops over 30% in Value!
This is plainly ridiculous but small & even large investor are held captive by these criminals.,with NO HELP from the regulatory authorities. Check out CDE "assets" for yourself. Management may be lacking in entrepreneurial ideas BUT they still have a very impressive list of assets not at all factored in by most PM investors. Do your own due diligence & see what value lies here in a very manipulated share price.
(CDE) http://www.coeur.com/ . From their Website is the following brief facts:
Snip: Couer d'Alene Mines Cororation is one of the World's leading Silver companies and also a significant gold producer. Coeur, which has no silver production hedged, expects to produce over 20 million ounces in 2009, a 66% increase over 2008 levels. Last year, we began production at what is expected to be the world’s largest pure silver mine - San Bartolomé in Bolivia – and we are also currently constructing another world-leading silver/gold mine – Palmarejo in Mexico, which is expected to begin production this March. Coeur also owns and operates underground mines in southern Chile and Argentina and one surface mine in Nevada; and owns non-operating interests in two low-cost mines in Australia. We own a major gold project - Kensington in Alaska - and conduct exploration activities in Argentina, Chile and Mexico.
Coeur’s cash costs have remained below $5 per ounce (adjusted for gold byproduct), as silver prices have fluctuated from $9 to $17 per ounce over the last 2 years. Its Palmarejo project has the potential to substantially reduce those cash costs. In late 2008, Coeur cut its corporate G&A costs by 40%.
Back to the Shorting of CDE by criminal elements of the USA Financial Mafia.
I have seen my own "Investment" in this USA Co go from $US5.16 (March3rd 08) to $US$.36cents! on Nov 20th 2008. I have a very large holding & elected NOT to sell on the way down. In my wildest nightmare I could not have imagined this Operating Co with 5 mines being manipulated to the depths it has been. I am still holding over half a million shares because I don’t believe the current price is anything other than a false price. I urge you to put prejudice aside & look closely at CDE for the inherent value I believe is there.
If CDE does not appeal for what ever reason please buy one of the other major shorted Silver Stocks. We can win this with or without the regulators. Don’t hold your breath waiting for "them" to fix things.
James Anderson
Australia
Contact - james.ander@hotmail.com
Disclaimer -- The author is a private investor with no formal qualifications. This article has been prepared from a wide variety of sources which the author to the best of his knowledge and belief considers accurate. The author does not warrant the accuracy of the information and forecasts contained in this publication. This information is provided for educational purposes and nothing written should be construed as a solicitation to buy and sell securities
An Open Letter to Nancy Pelosi- The Speaker of the United States House of Representatives
Dear Madam Speaker,
I'm a 64 yr old self funded, retired Australian with US Stock Investments and am writing to you in desperation because of the ongoing financial manipulation that is occurring unabated on US Sharemarkets. It is a disgrace that the most obvious & blatant manipulation (Short Selling without restriction) by Giant Hedge Funds & Institutions often working in collusion has not yet been addressed ! This is making US markets a no-go area for ordinary investors -hardly a situation that will lead to economic recovery. It is disturbing & unjustified that the SEC has not already taken steps to curtail the actions of these criminals. One only has to get on the Internet to find that this Criminal Shorting is occurring right across the USA stock market. Hardly a good advertisement for your Country.There are plenty of US citizens also up in arms but so far there has been no action. Anyone with sense would not invest in ANY USA based company under the present regulations & lack of accountability.
The current situation it not fair and not good for America's reputation. It needs urgent fixing. I wish you well with that mission & hope you can turn things around.For a start the SEC should be forced to immediately & without further procrastination bring back the "Up-tick Rule" for shorting ANY Stock or Security. ( I have already sent a letter to Mary Schapiro the Chairman of the SEC. All I received back was an automated receipt)
In Australia & other "advanced" countries the "up-tick Rule" applies to all shorting -whether "Financial or Not"
Bringing back the up-tick rule would at least prevent basically sound institutions from falling victim to over aggressive bear raids -which is what is happening right now! Among the many news reports on the subject is a theory that if the up-tick rule were put back into place then it would begin to level the playing field to at least some extent. Is it enough? Likely not, but it would at least give some measure of control into the markets.
The "up-tick rule" or "tick test" required short sellers to sell at a price above the last price paid for a stock, or at the price of the stock’s last trade if it was higher than the previous price. The rule had been in effect since 1938, but the SEC removed the rule last year, on July 6, 2007, after saying it was "obsolete" thus giving short traders a free reign on shorting without any real mechanism to mitigate.
Nov 18th 2008 - -Wall St Journal -- "There's a Better Way to Prevent 'Bear Raids" - The SEC should restore the up-tick rule http://online.wsj.com/article/SB122697410070336091.html
http://online.wsj.com/article/SB122697410070336091.html -- The SEC should restore the uptick rule
http://www.cnbc.com/id/27850397 Out with Cox, in with Uptick Rule
http://www.shortsqueeze.com/?symbol=CDE&submit=Short+Quote%99 -- @11th Feb short position was 76.4m shares or 14.85% of issued Shares
Madam Speaker this is a scandal of gigantic proportions & it is now in your court to fix it without delay. Every day that drags by with nothing done puts another nail in the US recovery. I urge you to bite the bullet & fix it now.
Thank you
James Anderson
Australia
Hecla sells plant for cash NR is edited:
2009-01-27 16:01 ET - News Release
ECU ANNOUNCES PROPOSED ACQUISITION OF GOLD AND SILVER PLANT AND CONCURRENT BOUGHT DEAL FINANCING
ECU Silver Mining Inc. has entered into a non-binding letter of intent with Hecla Mining Company for the acquisition of a 500-ton-per-day gold and silver recovery plant located adjacent to ECU's properties near the town of Velardena, in Durango, Mexico. The proposed transaction is subject to ECU and Hecla executing a definitive purchase and sale agreement for the mill. In order to finance such acquisition, ECU has entered into an agreement to proceed with a bought deal offering of subscription receipts by way of short form prospectus for gross proceeds of $17.5-million.
Acquisition of gold and silver plant
ECU has entered into a letter of intent with Hecla, whereupon ECU will acquire the mill in consideration of a cash payment of $8-million (U.S.) and the issuance by ECU to Hecla, by way of private placement, of 750,000 common shares of ECU. If issued, the resale of the ECU common shares by Hecla will be subject to certain quantitative restrictions over and above the four-month hold period that applies under applicable Canadian securities legislation.
The acquisition by the company of the mill is subject to: (i) the execution of a definitive agreement acceptable to each of the company and Hecla; (ii) the completion by the company of its due diligence review of the mill; (iii) the receipt of all requisite third party consents and approvals; and (iv) the approval of the board of directors of the company.
Thanks Montanore for the upbeat post. I do not hold a lot of stocks and one has rallied well during recent weeks(RIC) but not today and then HL has disappointed. Still holding though.
HL has their conference call at 6:00AM on Tuesday announcing earnings. I plan on listening if I can log in.
Tom
I hope the rest of you guys sold your HL. I am still holding all shares but quite upset that we cannot rally with another huge day for silver. Something is clearly wrong here.
It is a bit scary though with silver up 3 bucks in the last 30 days and HL is down. I wish I knew I wish I knew..............
Good news I think. Paying off the bridge loan and some of the term loan. For me HL is a long long term play not a day trade or a slice and dice chart mastering exercise. HL is a venerable company with a great story and a great resource in a politically safe region.
<Hecla Announces Closing of Offering and Fully Exercised Over-Allotment Option
Ticker Symbol: U:HL
COEUR D’ALENE, Idaho -- (Business Wire) --
Hecla Mining Company (NYSE:HL) today announced the closing of its underwritten public offering of 36.8 million shares of common stock and Series 3 warrants to purchase 18.4 million shares of Hecla common stock, including the underwriters’ exercise of their over-allotment option. The securities were issued in the form of units (“Units”), with each Unit consisting of one common share of Hecla and one-half Series 3 common stock purchase warrant. The Units were sold at a price of $2.05 per Unit.
The net proceeds from the offering, including the over-allotment option, were approximately $71.3 million. Hecla will use the net proceeds from the offering to repay in full Hecla’s $40 million bridge loan facility (as outlined in the company’s press release dated February 3, 2009), to repay a portion of Hecla’s term loan and for general working capital requirements.
The Units were sold pursuant to Hecla’s existing shelf registration statement and base prospectus previously filed with the Securities and Exchange Commission. This press release shall not constitute an offer to sell or a solicitation of an offer to buy the Units or any other securities, nor shall there be any sale of the Units or any other securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. Any offering of Units will be made only by means of a prospectus and prospectus supplement.
Canaccord Adams acted as the sole book-running manager for the offering. Copies of the final prospectus supplement and accompanying prospectus relating to this offering may be obtained from the offices of Canaccord Adams Inc., Attn: Syndicate Dept., 99 High Street, 12th Floor, Boston, Massachusetts 02110, phone: 1-800/225-6201.
Hecla Mining Company, headquartered in Coeur d'Alene, Idaho, mines, processes and explores for silver and gold in the United States and Mexico. A 118-year-old company, Hecla has long been well known in the mining world and financial markets as a quality producer of silver and gold. Hecla's common and preferred shares are traded on the New York Stock Exchange under the symbols “HL,” “HL-PrB” and “HL-PrC.”
Statements made which are not historical facts, such as anticipated payments or purchases are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, and involve a number of risks and uncertainties that could cause actual results to differ materially from those projected, anticipated, expected or implied. These risks and uncertainties include, but are not limited to, metals price volatility, volatility of metals production and costs, exploration risks and results, political risks, project development risks, labor issues and ability to raise financing. Refer to the company's Form 8-K, Form 10-Q and 10-K reports for a more detailed discussion of factors that may impact expected future results. The company undertakes no obligation and has no intention of updating forward-looking statements. >
I held on. Not sure what to think. I know this much a long term rally for HL depends on the recovery of zinc and silver and a big rally in silver.
I just sent this to HL
Hello Jeanne,
Thank you for your answers. I am sorely disappointed in the management of HL. Mr. Baker should resign.Please read this statement he made in the earnings report for the 2nd quarter last year. Please forward this to him. I expect an email response or phone call from him leaving a message. My number is 503-xxx-xxxx. Since some of us work for a living I will need a number I can call him back at and a time. Outside of my work hours of 8:30-4:45.
Here is the statement:
<As part of the financing for the acquisition, Hecla had put a $220 million bridge loan in place. The Company is currently examining a number of options to retire the bridge loan. Baker said, “Hecla has a history of carefully controlling dilution to shareholders. I continue to believe that is an important factor in managing our business, so we are considering all our options, including deferral of capital expenditures, to retire the bridge loan.”>
Since that statement counting new shares and warrants HL has increased their stock float by almost 80%. That is an outrage and considering his statement above that statement is an outright lie to shareholders.
Very Disappointed shareholder,
Tom XXXXXXX
It looks terrible pre market. I sam surprised it is getting this bad. The share holders are really getting hosed by HL management. They could have financed it all at 6-8 bucks and had a year to do it.
Their new young president is going to get a hard copy letter from me but these yong guys are so egotistical he will no doubt not even read it or care.
Read this bullsh#t from last years 2nd quarter release:
<The Company is currently examining a number of options to retire the bridge loan. Baker said, “Hecla has a history of carefully controlling dilution to shareholders. I continue to believe that is an important factor in managing our business, so we are considering all our options, including deferral of capital expenditures, to retire the bridge loan.”
I think they have to make the bridge loan payment. With the new financing right?
Not good news IMO. But I have no idea how the stock will react:
Hecla Mining Company (NYSE:HL) today announced it is amending its loan agreement to reschedule all 2009 term debt payments to 2010 and 2011. To make the amendment effective, Hecla will raise at least $50 million in an equity or subordinated debt offering and repay its $40 million bridge loan.
Hecla Mining Company President and Chief Executive Officer Phillips S. Baker, Jr., said, “This amendment will provide Hecla with the time to optimize our business and capital structure by moving about $50 million of debt payments from this year to two years from now and $16 million into next year. We were able to amend our credit facility in these uncertain economic times due to the quality of our mines and people and the support of our banks.”
Preliminary Unaudited Results
Hecla produced approximately 8.7 million ounces of silver in 2008, a 54% increase compared with 2007. The increase is attributable to the acquisition of the 70.3% interest in the Greens Creek mine in Alaska which was acquired from Rio Tinto on April 16, 2008.
Estimated 2008 cash costs are expected to be approximately $4.25 per ounce of silver produced, net of by-product credits. Cash costs were negatively impacted by the dramatic decline in the price of lead and zinc, especially during the fourth quarter of the year. In addition, higher charges for smelting, freight and consumable products, particularly diesel fuel, eroded operating margins.
During the fourth quarter of 2008, Hecla produced approximately 2.5 million ounces of silver at an estimated cash cost of $7.50 per ounce, net of by-product credits. As discussed above, lower by-product metal prices and record high input costs for consumables such as diesel and steel increased production costs during the period. Compared with the third quarter, the average metal prices declines in the fourth quarter for silver, lead and zinc were 32%, 36% and 32%, respectively.
The Company expects to report a net loss applicable to common shareholders of approximately $40 million to $42 million or $0.24 to $0.25 per common share for the fourth quarter of 2008. Results in the fourth quarter were adversely impacted by negative price adjustments to final smelter settlements of approximately $10 million and an estimated reduction in the value of deferred tax assets of $8.5 million. Absent these items, the net loss applicable to common shareholders would have been approximately $21.5 million to $23.5 million or $0.13 to $0.14 per common share.
Hecla expects to report an 80 million ounce increase in silver reserves at year-end 2008, or an increase of approximately 150% over 2007, as a result of successful definition drilling activities at its two operations and from the acquisition of the rest of the Greens Creek mine. Gold reserves are expected to increase 400,000 ounces or 100% over the same period. Lead and zinc reserves are also expected to increase substantially.
Production Outlook
Hecla is forecasting 10 to 11 million ounces of silver production in 2009, or an approximately 20% increase over 2008 production. Cash cost estimates for 2009 are expected to improve compared with fourth quarter 2008 cash costs if cost inputs for consumables used in mine production continue to ease in 2009. Other cost-cutting actions and optimization are aimed at ensuring that Hecla retains a low cost structure relative to its peers.
Amended Credit Facility
Hecla’s credit facility was put in place to fund the acquisition of the Greens Creek mine. Of the $380 million borrowed, Hecla has paid approximately $220 million. The $161 million outstanding consists of a $40 million bridge loan and $121 million term facility. The fourth amendment to the credit facility provides that upon repayment of the bridge loan from a $50 million or more equity or subordinated debt offering prior to February 13th, $66.7 million of term debt payments due in 2009 will be rescheduled to 2010 and 2011. Equal quarterly payments totaling $60 million are to be made in 2010 with a final $61.7 million payment due March 31, 2011.
The interest rate under the loan agreement has not changed. In consideration for the modified credit facility, Hecla will semiannually issue Convertible Preferred Stock to the banking syndicate in an amount equal to 3.75% of the term debt outstanding. The Convertible Preferred Stock will have a dividend of 12% per annum and is convertible into Hecla common shares. In addition, various other covenants and provisions of the agreement were modified. A full copy of the amendment has been filed by Form 8-K with the Securities and Exchange Commission (SEC).
Hecla Mining Company, headquartered in Coeur d'Alene, Idaho, mines, processes and explores for silver and gold in the United States and Mexico. A 118-year-old company, Hecla has long been well known in the mining world and financial markets as a quality producer of silver and gold. Hecla's common and preferred shares are traded on the New York Stock Exchange under the symbols “HL,” “HL-PrB” and “HL-PrC.”
Statements made which are not historical facts, such as anticipated payments or purchases are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, and involve a number of risks and uncertainties that could cause actual results to differ materially from those projected, anticipated, expected or implied. These risks and uncertainties include, but are not limited to, metals price volatility, volatility of metals production and costs, exploration risks and results, political risks, project development risks, labor issues and ability to raise financing. Refer to the company's Form 10-Q and 10-K reports for a more detailed discussion of factors that may impact expected future results. The company undertakes no obligation and has no intention of updating forward-looking statements.
Hecla has filed a registration statement (including a prospectus) with the SEC for any offering to which this communication relates. Before you invest, you should read the base prospectus in that registration statement, the final prospectus, when available, and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the base prospectus or, when available, the final prospectus if you request it by calling 1-208-769-4100.
It is like watching paint dry waiting for HL to let us know what they will do regarding the bridge and term loan payments due by February 16 and Feb 13.
HL held up well today considering the pullback in gold and silver.
I noticed that especially CDE! I think by the third week in February or middle of March HL will do well. They may do an additional financing to cover the bridge loan and the next term loan payment but then over the hump I hope.
Still holding but disappointed in HL with the recent silver move.
RIC trading above HL. Only 24 million shares out will produce 80,000 ounces plus of gold in 2009.
We need to break above 3 bucks to really run.
RIC catching up to HL. It is worth a look. We have a new IR person at HL I sent and email am waiting for an answer. Will post if received.
Tom
Yep we have finished up nicely and on down dow days too. We are going to shine!
Now we are cooking with gas!
Maybe silver stocks are not running because of fear of deeper recession or depression. At some point though I believe silver follows gold and HL rallies strong.
With silver up 50 cents in the last 3 days I would like HL to rally more. But many times I leave for work in the morning and in the afternoon HL has rallied nicely!!! <G>
Silver up two days in a row we need a strong rally out of HL. Will no doubt come out of the blue.
Looks like HL will tread water until the debt payments are made in mid Feb. BWDIK?
<Long-Term:
Silver peaked at the start of 2008 at around $21 an ounce before ranging solidly in the $16-$19 zone for many months. With an attempt to moves past $20 failed, the sell-off was amplified by the destruction in gold and a rush out of silver by short-term speculators, over-leveraged investors has now brought prices down quickly to the single digits again.
There is excellent support from $8-$10 an ounce which will bounce to the $12-14 area before consolidating some more. This pullback has shifted the window for silver from making its next big move higher, but do not discount a quick reversal back to the mid/upper teens as well.
The big picture looks like silver is going to move through a period of base building in the lower teens before attempting its next move higher. $19-21 is a solid resistance at this time, a break above will bring our $25-$30 targets into play. That is not likely to occur until at least well into 2009. Pullbacks remain excellent entry opportunities which are not forecasted to last very long!>
<Silver ratio is reaching an extreme peak as panic selling by de-levergaing funds/investors sells into a less liquid market. The surge to the 90 area makes silver a very attractive investment over gold at this time. Once the rally in gold ensues, expect silver to outperform gold taking the ratio to 60-70 very quickly.
This is an excellent mid to long-term opportunity to favor silver over gold, levels not seen for many years.>
2009 SilverForecaster.com
Great last time I checked it was up 14 cents now we are talking! <G>