Hecla Mining Shares Got Crushed: What You Need to Know
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of gold and silver miner Hecla Mining (NYS: HL) lost all their shine today when shares fell 25% after the company was ordered to close one of its mines.
So what: The Silver Shaft at the Lucky Friday Mine, which has been closed since a rock burst in December, will be closed to remove built-up material in the shaft. Production at the mine is expected to resume in early 2013. As a result of the news, management lowered 2012 silver production estimates to 7 million ounces from 9.5 million ounces.
Now what: There's really nothing positive to say today considering the loss of production at the mine. Management was disappointed in the order, but the mine has been accident-prone and two miners died over the past year, so the ruling can't be a complete surprise. No reason to buy the drop today, and keep an eye on future delays that may come from cleanup at the mine.
Interested in more info on Hecla Mining? Add it to your watchlist byclicking here.
At the time this article was published Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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