Anyone know about or own this stock? It is the oldest listed mining company on the NYSE, and the largest primary silver producer in the US, but is trading under 5$/share. 3 Silver mines currently in production, and 1 gold mine as well. The third Silver mine just started production in Dec of last year, and they had record production the first quarter of this year.
New 52wk high on this one today and I took some profit, this thing can't keep going up forever.
Finally a correction. Back down below 4/shr and now an all stock deal for a nearby property?! Good for the balance sheets, bad for the share price. I don't know anything about the property, except that it is close to two of their operating mines. I need to do some more DD on it.
quote:Originally posted by NR: Finally a correction. Back down below 4/shr and now an all stock deal for a nearby property?! Good for the balance sheets, bad for the share price. I don't know anything about the property, except that it is close to two of their operating mines. I need to do some more DD on it.
It is adjacent to the Rock Creek mine that they acquired in a similar deal last year. Because both mines access the same ore body, there is speculation that they could cut costs by only going in from one side of the mountain, instead of both, but there is a fault line between the two claims that may complicate or prevent this.
Apparently this has been a long fight spanning close to two decades, and several companies, and will likely continue for some time, though several major permitting obstacles have been recently overcome.
For $30 million in stock, and only diluting the 385 million outstanding shares by 8.5 million, IMO, it will pay off handsomely if they can get past the environmental issues, do some more exploring and then get it into production.
It is one of the biggest undeveloped copper deposits in North America, and is estimated to have a 20-30 year mine life, but we are talking maybe 5-10 years down the line before any ore came out of the ground. That does seem like a long time, but then again, this company has been around for 125 years...
I'm also unsure where anything stands with the labor contract negotiations at the Lucky Friday mine. Last I read they were bringing in special negotiators. I've been following the local Union's FB page, hoping any news will break there first.
There have also been a few insider buys and sells recently but nothing earth shattering. There has also been two analyst upgrades for HL. Currently, the stock just seems to be following Silver prices, which are trading around $20/oz.
Earnings are coming up in about a month, I am hoping they will surprise with both production numbers from San Sebastian and EPS as well, but only time will tell.
I still like this stock long term, and baring a poor earnings report, a strike at the Lucky Friday mine, or a huge drop in silver prices, I will probably take a new position if there are any big dips over the next few months.
Nice, nothing wrong with locking in some more gains... I like your thesis on the long term prospects here and with the other miners. Major bull flow in GLD again last week, Somebody was not so subtle when they scooped up 46,000 of the June, 2017 GLD $144 calls. Definitely something worth watching IMO.
I'm also watching the SPX, GLD & TLT correlation here...I don't know how long all three can continue making new highs together, it kinda defies all logic. At some point something has to give. JMO