Hecla Mining: Canaccord Reduces Price Target To $5.75 Following Earnings

Thursday, Hecla Mining (NYSE: HL) reported their fourth quarter and full year 2020 financial results. The company announced fourth quarter sales of $188.9 million, while cash flow from operations came in at $64.9 million, and free cash flow of $28.3 million was reported. 2020 silver production was up 7% to 13.5 million ounces, while gold production was down 23% to 208.9 thousand ounces.

Hecla currently has ten analysts covering the company with a weighted 12-month price target of U$7.08. This is up from the average before the results, which was C$6.68. Four analysts have buy ratings, while six analysts have hold ratings.

Canaccord reiterated their hold rating while lowering their 12-month price target to U$5.75 from U$6.50. Dalton Baretto, Canaccord’s analyst, writes, “we continue to believe that given the company’s leverage, flat growth profile, and elevated relative valuation, at the current share price HL is fully valued.”

He calls the fourth quarter earnings a mixed bag, as revenue was in line with their expectations and unit operating costs came below their expectations. But EBITDA missed their estimate by 21%, due to a loss on derivatives.

He adds that silver production came in above their forecasts, but gold production was just in line with expectations. Below you can see the full earnings compared to Canaccord’s guidance.

Information for this briefing was found via Sedar and Refinitiv. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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