Hecla Mining(HL) Message Board

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Gold/Mining/Energy : Hecla Mining(HL)

HL 12.91

+3.0%

Oct 30 3:59 PM EDT

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To: loantech who wrote (591)	9/25/2010 11:22:06 AM
From: posthumousone	1 Recommendation of 629

Hecla has a stronger balance sheet than SLW too. I think many people forget to look at the numbers. After this report for the 3rd quarter, Hecla will have more cash minus debt than SLW. SLW has more outstanding shares than Hecla. Lead and Zinc prices have bounced back. SLW won't have the luxury of extra revenue due to higher base metals. When the figures come out the profit from higher silver and base prices will exceed SLW because SLW will profit from the price of silver minus $4.00 refining costs. I think Hecla will put 45-50 million cash onto the balance sheet each quarter. Because SLW still has debt, their earnings won't go to cash but some liabilities. So, the question is why is Hecla lagging? Its all in the short interest. If you noticed, SLW has very few short sellers. Hecla is saddled with 40 million short sellers shares. Thats okay because the shorts will have to be the buyers of Hecla at some point. As long as Hecla can make a profit, build up cash each quarter, increase production at low costs, the stock price will eventually respond. I see where some have worried that HL may be setting themselves up for another fall by talking of "acquisitions". The one lesson learned by management is to make sure that any purchase has to be a money maker since Hecla would be giving up their cash. The shorts are thinking that the company will have to issue another 100 or 200 million shares of stock and they will benefit from dilution. Hecla knows this. This company has come from the ashes to rebuild the company. I don't see Hecla making a big purchase but maybe a small goldminer that makes money and needs more development. This is not going to be dilution but positive earnings. I won't argue that SLW has done well but when Hecla keeps producing numbers, shorts will have to ake a decision. They also risk the notion that Hecla may become a takeover themselves as a company with no debt, high cash on hand and 10 billion dollars of reserves and resources. If the shorts got up one morning and saw that Hecla was bought out for $10.00 a share, they would freak out.

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