UPDATE: BMO Capital Markets Maintains Perform, Lowers Target to $6 on Hecla Mining
BMO Capital Markets reiterates its Market Perform rating on Hecla Mining (NYSE: HL) and lowers its target price to $6 from $8 to reflect impact from closure of the Lucky Friday shaft.
BMO Capital Markets notes, "Removing Lucky Friday production from 2012 estimates has decreased the BMO Research 2012 EPS forecast for HL by 26% to US$0.34, from US$0.46. 2012E CFPS has fallen by 21% to US$0.58, from US$0.73. HL also stated that all activities related to the construction of the new #4 Shaft and 4900 level by-pass will be halted until repairs to the Silver Shaft are completed. Combined with removal of 2012E Lucky Friday production, pushing out completion of the #4 Shaft by one-year has decreased HL's 10% nominal NPV estimate (using BMO Research metal price assumptions) by ~2% to US$5.21/share.
HL closed at $4.61 per share on Wednesday.
