Hecla Mining Plummets on Silver Production Cut
Shares of metals miner Hecla Mining (NYSE: HL) are under much pressure this morning after the company cut silver production forecasts.
Hecla Mining reports that the Mine Safety and Health Administration has ordered the Silver Shaft at the Lucky Friday mine in Mullan, Idaho closed for removal of built-up material in the shaft. This order is pursuant to the investigation following the December 14, 2011 rock burst.
Compliance with the order is expected to take through year-end. Hecla's 2012 silver production is now estimated to be approximately 7 million ounces, below previous expectations.
Commenting on the events, CEO Phil Baker said, “While we are disappointed with this order and are considering what action we might take, work has already begun to resume production as quickly as possible.”
He continued, “The Lucky Friday mine is a world-class mine that we see producing silver for decades to come. Hecla and the Lucky Friday mine have faced challenges in the past and we will once again overcome them.”
Currently, shares of Hecla Mining are down 16% at $4.90.
