Boston, MA 04/22/2014 (wallstreetpr) – Hecla Mining Company (NYSE:HL) is a company involved in discovering, producing and selling metals like gold, silver, lead and zinc. It is, in fact, the largest producer of silver in America.
It boasts of an enviable cash flow and robust balance sheet.
Acquisitions
The company has recently acquired Aurizon Mines Ltd in a very competitive bid. Alamos Gold Inc. had been thwarting efforts of Hecla to acquire Aurizan with the support of other large shareholders. Alamos is a key shareholder in Aurizan, holding about 29.5% shares in the company. Aurizan had earlier rejected a hostile bid of takeover from Alamos’s side for about CAD780. It later entered into a pact with Hecla, thereby paving the way for Hecla to acquire all outstanding diluted shares of Aurizan for about CAD796. The deal involved a consideration of 56,997,790 shares of Hecla common stock. This acquisition has opened the door for Hecla to tap the Casa Berardi mines in Quebec that are estimated to contain 1.46 million ounces of gold reserves.
Hecla Mining Company (NYSE:HL)’s ongoing reserve substitution program succeeded in replacing mined silver production. It has successfully added surplus reserves and inferred and indicated silver resources.
Discoveries on Hecla’s high-quality, district-sized land packages in the Mexico and United States are expected to generate resources, which the company plans to convert into reserves and thereafter production. These discoveries would be a key driver leading to the much required organic growth for Hecla Mining Company.
A key component of the company’s financial success is its ability to manage capital and operating costs amidst a dynamic price environment. The company reviews, evaluates and adjust its business plan according to the macro economic situation prevailing in the market. That is how the company continued to be cash rich even amidst gold prices plummeting by nearly 29% and silver prices by 36%. The low production cost enables the company to grow at higher margins.
Hecla Mining Company (NYSE:HL) operates in an industry where it is required to conform to standards of environment safety and sustainability.
