Hecla makes savvy buy

Article Excerpt

HECLA MINING $3.56 (New York symbol HL; TSINetwork Rating: Extra Risk) (208-769-4100; www.hecla-mining.com; Shares outstanding: 399.4 million; Market cap: $1.4 billion; Dividend yield: 0.3%) explores for, mines and processes both silver and gold in the U.S., Canada and Mexico. The company has now bought Klondex Mines (symbol KDX on Toronto) for $462 million U.S., in cash and Hecla shares. Klondex will first spin off its Canadian assets to its current shareholders. Hecla will then acquire Klondex’s three gold mines in Nevada—Fire Creek, Midas and Hollister. The purchase will add roughly 150,000 ounces of gold to Hecla’s current output of around 210,000 ounces per year. As well, there is considerable room to improve operations at Klondex’s three high-grade underground mines, and so expand their reserves. Hecla Mining is a buy. buy…