Coeur d'Alene Mines Corp. (CDE)

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HL=arg - I also own HL - They have debt issues - overhang from better days of easy credit - IMO HL is going to get scouped up - they will not find it easy to refinance debt and or sell shares with the balance sheet... Now WHEN , when Silver gets above $15 it will lift ALL boats , but read HL cost per ounce from recent filings. And the creative financing these miners have to use these days cause problems with PPS , as well as needs to hedge in an increasing commodities market like CDE has done, is going to cause problems down the line....

Per HL:

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
http://finance.yahoo.com/news/Hecla-Reschedules-Debt-bw-14244947.html


Also: This is another reason:(CDE has sold similiar deals - see the HUGE open interest in CDE CALL Options - covered calls sold - I wish I would have done more DD before buying CDE call options - IMO it is same scenario as HL)

The reason for today's wholesale call-writing is most likely associated with the provision embedded in the terms of the underwriting agreement, which attaches warrants to each share convertible at $2.50 for four years. This will likely cap the share price for Hecla and is enough to allow option traders to sell implied volatility and collect premiums at the strike price, which ought by definition to be worthless.

Nearly 7,000 calls were sold at the March 2.5 strike for six cents, over 8,000 calls sold at the June 2.5 strike for 18 cents, and finally, over 4,000 calls sold at the January 2010 2.5 strike price for 43 cents
http://www.forbes.com/2009/02/05/hecla-ge-gold-personal-finance-investing-ideas_0205_wells_fargo.html?partner=yahootix