In a second report this week, Roth Capital analyst Joe Reagor maintained a Neutral rating on Hecla Mining Company (NYSE:HL) with a $3.00 price target, as the company announced that a very successful 2014 exploration drilling program with strong drill intersections has resulted in significantly increased resources at its San Sebastian property in Durango, Mexico.
Reagor noted, “The significant resource increase is impressive, in our view. Additionally, we are encouraged by the high-grade nature of the deposit.”
The analyst continued, “We made no adjustments to our valuation of HL following today’s announcement. However, we believe the resource increase at San Sebastian supports our inclusion of a management premium of $0.50 per share to our DCF as HL’s management continues to deliver on their goals.”
Hecla Mining Company, together with its subsidiaries, discovers, acquires, develops, produces, and markets precious and base metals worldwide.