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Hecla Mining's Fire At Lucky Friday Mine Causes More Damage Than Expected: Analyst

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Hecla Mining's Fire At Lucky Friday Mine Causes More Damage Than Expected: Analyst

Roth MKM analyst Joe Reagor reiterated a Impartial ranking on Hecla Mining Firm HL, decreasing the value goal from $4.50 to $4.00.

The analyst cautions that the influence of the fireplace on the Fortunate Friday Mine was considerably higher than anticipated.

On September 18, 2023, Hecla Mining supplied an replace on the beforehand introduced fireplace on the Fortunate Friday Mine. The replace indicated that whereas the fireplace has been extinguished and regular air flow has been restored, the mine wouldn’t resume manufacturing this 12 months.

As a substitute, the corporate is concentrated on growing a secondary egress within the broken portion of the shaft, notes the analyst. 

The brand new egress requires putting in a 1,600-foot-long ramp and a 290-foot-long manway increase.

Due to the damages brought on by the fireplace, the analyst eliminated all manufacturing from the mannequin from August via to the tip of 2023. 

On a optimistic be aware, the corporate reported it has $50 million in property insurance coverage that ought to cowl each the injury and the enterprise interruption, much less a deductible, Reagor provides. 

Nevertheless, it’s nonetheless being decided if the insurance coverage would cowl the brand new egress improvement, notes the analyst.

For FY23, the analyst reduce income estimates to $711.5 million from the earlier view of $770.2 million. the analyst expects FY23 EPS of $(0.06) loss, wider than prior view of $(0.04) loss.  

For FY24, the analyst sees income of $712 million, with EPS of $0.01.

Worth Motion: HL shares are buying and selling decrease by 4.18% to $4.0150 on the final examine Tuesday.