Hecla Mining Co (HL)

[MWM]

Helca Mining upgraded on raised production outlook
RBC upgrades Helca Mining following higher production outlook, lower cash-cost guidance

* On Monday September 14, 2009, 10:29 am EDT
o Hecla Mining Co.

NEW YORK (AP) -- Precious metals miner Hecla Mining Co. should perform in line with its peers after raising its full-year production outlook and lowering its estimated cash costs, an analyst said Monday as he upgraded his rating on the stock.

Last week on Wednesday the miner of silver and gold raised its 2009 silver production estimates to between 10.5 million and 11 million ounces, up from earlier predictions between 10 million and 11 million ounces. The company also cut its estimate for the cash cost per ounce of silver to less than $3 per ounce of silver, down from previous forecasts of $4.50 per ounce.

RBC Capital Markets analyst Michael Curran said that operating improvements and stronger byproduct metal prices led to lower cash costs. Curran upgraded the stock to "Sector Perform" from "Underperform."

"With exploration now back on line, improved balance sheet and cash flow generating potential, the company is in a better position to resolve its lack of growth going forward," Curran said.

Shares of the company rose 3 cents to $4.42 in morning trading.