BMO Capital Provides Color on Hecla Mining, Outperform
BMO Capital provided color on Hecla Mining (NYSE: HL). In a research report published today, BMO commented on the company's settlement terms for the Coeur d'Alene Basin environmental obligation.
In the report, BMO Capital states, "The final agreement stipulates that Hecla will pay US$111.5M cash plus US$55.5M cash or stock 30 days after final court approval, which BMO Research expects will fall at the end of Q3/11 or beginning of Q4/11. HL will then have to pay $25M by Q4/12, $15M by Q4/13 and $56.4M before August 2014. BMO Research views the news as positive as it removes a degree of uncertainty surrounding the amount and timing of HL's financial obligation related to the litigation."
At the moment, BMO has an Outperform rating and a price target of $13 placed on the company's stock. On Monday, Hecla lost 2.3% of its value to close the day at $7.21.
