Hecla Mining Company (NYSE:HL) on August 4, 2016 announced second quarter 2016 financial and operating results.
SECOND QUARTER HIGHLIGHTS AND SIGNIFICANT ITEMS (compared to Q2 2015)
- Net income applicable to common shareholders of $24.0 million, or $0.06 per share.
- Sales of $171.3 million, up 64% on higher production, a record.
- Adjusted EBITDA of $77.8 million, up 164%.
- Silver production of 4.2 million ounces, up 71%.
- Gold production of 62,965 ounces, up 41%.
- Cash and cash equivalents and short-term investments of $159 million, up $25 million over first quarter.
- Increased estimated 2016 silver production to 15.75 million ounces (from 15.0 million) at a cash cost, after by-product credits, of $4.75 per ounce (from $5.00 per ounce) and exploration and pre-development expenditures by 27% to $19.0 million.2
- #4 Shaft at Lucky Friday reached its final depth, expected to be operational by year end.
Net income applicable to common shareholders for the second quarter 2016 was $24.0 million, or $0.06 per share, compared to a net loss applicable to common shareholders of $26.8 million, or $0.07 per share, for the same period in 2015, the result mainly due to the following items:
- Sales were 64% higher than the second quarter 2015, mainly due to 71% increased silver production and 41% increased gold production as well as higher silver and gold prices.
- Cost of sales and other direct production costs and depreciation, depletion and amortization of $112.9 million was higher by 19% mainly due to San Sebastian being in commercial production.
- Cash cost, after by-product credits, decreased 32% per silver ounce and 28% per gold ounce from the second quarter 2015.4,5
- A $7.8 million lower provision for closed operations and environmental matters recorded in 2016, as compared to the same period in 2015.
- Income tax provision of $11.5 million for the second quarter of 2016 compared to an income tax benefit of $0.1 million for the same period in 2015 primarily due to higher net income before taxes, partially offset by a decrease in the valuation allowance on deferred tax assets in Mexico in the second quarter of 2016.
Shares of Hecla Mining Company (NYSE:HL) jumped 2.48% to reach at $6.61 during the course of session. The company has experienced volume of 8.69M shares while on average the company has a capacity of trading 9.45M shares. The stock holds the market capitalization of $2.50B along with 384.01M outstanding shares. The stock traded in the price range of $6.45 – $6.64 for the last trading session. For the stock price target value has been calculated at $5.77 based on calls of 7 experts. Stock’s minimum price target estimates has been figured out at $4.20 while the maximum price target forecast is established at $8.00.
As of current trade, Hecla Mining Company (NYSE:HL) has shown weekly upbeat performance of 4.92%. Its six months performance indicated a bullish movement while its yearly performance reflected a positive trend of 240.61%. Year-to-date (YTD) performance of the stock illustrate upbeat trend of 250.39%. Shares of Hecla Mining Company (NYSE:HL) currently have an ABR of 3.13, derived from a total of 8 opinions. The company’s price sits 27.45% above from its 50-day moving average of $5.64 and 106.50% above from the stock’s 200-day moving average of $3.77. The company has Relative Strength Index (RSI 14) of 66.82 along with Average True Range (ATR 14) of 0.29. Its weekly and monthly volatility is 4.22%, 4.66% respectively. The company’s beta value is at 0.90.
Hecla Mining Company (NYSE:HL)’s price to sales ratio for trailing twelve months is 5.50 and price to book ratio for most recent quarter is 1.86, whereas price to cash per share for the most recent quarter is 18.70. Hecla Mining Company (NYSE:HL)’s quick ratio for most recent quarter is 1.70 along with current ratio for most recent quarter of 2.10. Total debt to equity ratio of the company for most recent quarter is 0.38 whereas long term debt to equity ratio for most recent quarter is 0.38. Hecla Mining Company (NYSE:HL) has a Return on Investment of -4.90%.