BMO Capital Maintains Market Perform on Hecla Mining After Lucky Friday Shutdown

BMO Capital Markets has published a research report on Hecla Mining Company

after the company reportedly shut down its Lucky Friday mine. In the report, BMO Capital writes, "[Hecla] reported that it has shut down the Lucky Friday mine due to a rock burst that occurred at the 5,900 foot level during the evening of December 14. All miners are accounted for and have been safely removed from underground. Seven miners were treated for non-life-threatening injuries and the federal Mine Safety and Health Administration is currently investigating the incident. While this recent event is unrelated to the two fatalities that have occurred at the mine over the last eight months, these events have tarnished an otherwise exemplary operating record over the last two decades. The recent ground control issues also underscore a need for a comprehensive geotechnical review of the Lucky Friday operations. HL has not announced a re-start date for mining activities at Lucky Friday. HL trades at 1.1x the 10% nominal NPV versus intermediate producer peers at 0.9x." BMO Capital maintains its Market Perform rating and $8 price target on Hecla Mining, which is currently trading down $0.32 from yesterday's $5.73 closing price.