Hecla Mining Company (NYSE:HL) Surges Driven By Rally In Gold Prices

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The year 2016 will mark the completion of 125 years for Hecla Mining Company (NYSE:HL). On the occasion of its 125th anniversary, Hecla has planned multiple events over the next one year, starting with the American Exploration & Mining Association Annual Conference.

Rally in gold prices

Apart from this, Hecla Mining Company (NYSE:HL) witnessed a positive momentum in the recent days. The mining company felt some respite after the gold prices showed an upward movement as the European Central Bank’s monetary easing efforts failed to meet the expectations. It is to be noted that the European Central Bank further cut interest rates and announced the extension of its bond-buying program by six months. These policy moves disappointed the investors, who were expecting more bold policy moves by the Central Bank, resulting in Euro trading higher than the dollar.

The currency move prompted a rally in gold prices. Over the last few months, gold prices have been under pressure on account of concerns that the Federal Reserve rate hike decision will diminish the yields of the yellow metal as oppose to the Treasury bonds. Though gold prices is likely to see some pressure in the upcoming days, it continues to be green over a couple of days, according to market experts.

Revenue miss

In its most recent quarterly results, Hecla posted an earnings loss of ($0.03) per share, which came higher than the market consensus of ($0.04). At the same time, the revenue of the company in the third quarter fell by 22.6% year-over-year to $104.9 million. The reported number fell short of analysts’ expectations by $2.32 million. The company had disclosed that its Chief Financial Officer James Sabala is set to retire following its 2016 annual shareholder meeting.

The stock price of Hecla Mining Company (NYSE:HL) traded up by 1.81% to $1.97 during the previous day.

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