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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers -- Ignore unavailable to you. Want to Upgrade?

To: Martin Wormser who wrote (65422)	5/26/2009 11:00:40 PM
From: loantech	Respond to of 78418

CDE is good but I think HL's costs are lower and HL's producing resources are all in Alaska and Idaho. Their property in Mexico is grassroots at this time. In addition I will take the bad of HL debt over the bad of CDE management. I read a report over the weekend. I guess I can post part of it why not? <We believe that recent price appreciation has set the stage for a possible equity offering, but a royalty deal for the gold stream at Greens Creek is also a viable option for removing the debt overhang.> <Greens Creek also produces a significant amount of gold, and this gold stream is often considered Hecla’s savior. Case in point, using as a guide Royal Gold’s (RGLD–SP) recent transaction for the Andacollo gold stream, which is slightly smaller than the Greens Creek gold stream, Hecla could receive more than $300 million as an upfront payment for 100% of the gold production from Greens Creek for the life of the mine. > <Along similar lines to the point above, the signing of a royalty deal would lift the specter of insolvency from Hecla. It is obvious that Hecla has lost some stature as a bargaining party, but we believe that there could be a deal reached that would remove Hecla’s debt. After the stream agreement executed on the Palmarejo property, and with $400 million cash in hand, Franco-Nevada (FNV– SO) would be the most likely party with which to strike a deal, in our view.his is more than enough to eradicate Hecla’s $113 million in debt. Of course, current share price strength may have also set the stage for an equity offering.> CIBC I think HL will make some type of move to get to zero debt.