FBR Remains Neutral on Hecla Mining Company (HL) Despite 2Q Beat
In a research note issued Friday, FBR analyst Lucas Pipes reiterated a Market Perform rating on shares of Hecla Mining Company (NYSE:HL), with a price target of $5.00, after the company reported better-than-expected earnings for the second quarter, posting adjusted EBITDA and adjusted EPS of $77.8 million and $0.07, compared to consensus estimates of $60 million and $0.05, respectively.
Pipes added, “Hecla’s costs beat our estimates, and realized silver prices were above our estimates, as well. Hecla reiterated its July guidance of 2016 production of 15.75M oz. of silver and 233,000 oz. of gold. On this recently higher production estimate, the company reduced its guidance for cash cost after by-products to $4.75/oz. from $5.00/oz. While cost expectations at each mine were held flat, overall 2016 cost after by-products was lowered on higher production and stronger by-product pricing. Additionally, after realizing two quarters below ($3.00)/oz. costs after by-products at San Sebastian, the company maintained 2016 full-year guidance of $1.00/oz. after by-products. Hecla increased pre-development and exploration expenditures to $19M from $15M.”
As usual, we recommend taking analyst notes with a grain of salt. According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Lucas Pipes has a yearly average return of -3.1% and a 45% success rate. Pipes is ranked #3475 out of 4090 analysts.
Out of the 4 analysts polled by TipRanks, 2 rate Hecla Mining Company stock a Buy, while 2 rate the stock a Hold. With a downside potential of 9.9%, the stock’s consensus target price stands at $5.82.