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Jbay76 (< 20)

Hecla Update

Recs

9

April 19, 2011 – Comments (6) | RELATED TICKERS: HL , SIL

Today a judge ruled that both Hecla and the plaintiffs (the United States, the Coeur d’Alene Indian Tribe, and the State of Idaho) wil be able to extend the verdict in the litigation provided that bi-weekly updates are given.  Most likely, a final agreement will be reached by May, June at the latest.  Hecla believes the following will be agreed upon by all parties, though without a final consensus, anything is possible

* 102 million of cash, $55.5 million of cash or Hecla stock, and approximately $9.5 million in proceeds from series 3 warrants received by Hecla to date and referred to below, all payable 30 days after entry of the Consent Decree

* $25 million of cash 30 days after the first anniversary of entry of the Consent Decree $15 million of cash 30 days after the second anniversary of entry of the Consent Decree

* Approximately $56.4 million by August 2014, as quarterly payments of the proceeds from the exercise of any outstanding Series 1 and Series 3 warrants (which have an exercise price of between $2.45 and $2.50 per share) during the quarter, with the remaining balance, if any, due in August 2014

Hecla has a little over 200 million in operating cash, so they will more than likely provide the first 55.5 million in stock and excersie the 9.5 million in proceeds.  The recent mine collapse and search for Larry, the miner who remains in the mine, will no doubt force this move.  Will HL survive this year........who knows.  I hope that they find this miner first and foremost, and I give them credit for focusing 100% first on getting Larry before figuring out how the collapse happened.

 

6 Comments – Post Your Own

#1) On April 19, 2011 at 7:06 PM, Jbay76 (< 20) wrote:

Here's the story

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#2) On April 19, 2011 at 9:14 PM, kstarich (30.76) wrote:

Jbay

+1 rec. What is happening to this company is a set-up for takeover.  I see a trend of more miners coming under attack, it's going to get ugly.  Just like BP.  This was the purpose of my question today about miners getting sacked...I see it very clear in the Fed chart a powerful move very nazi like when Hades conjoins the Fed Pluto to take over all assets of the earth, antiquities (already got artifacts out of Egypt)   Gaddafi has antiquities too along with 143'ish tonnes gold that's why at war there.  Gaddafi "God of Africa" he is not who people think he is....

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#3) On April 19, 2011 at 9:16 PM, kstarich (30.76) wrote:

Why can't we follow posts anymore?  the button doesn't work

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#4) On April 19, 2011 at 9:37 PM, silverminer (31.04) wrote:

Jbay76

My thoughts likewise are with Larry.

Any questioning of Hecla's survival is without basis. The company is in zero danger of failing. Zero. Hecla's 2010 operating cash flow was $198m, and silver prices have skyrocketed since. The scale of the settlement is an unfortunate and painful blow, but in no way does it endanger the company's survival.

Let's wait and assess the impacts of the Lucky Friday collapse once Larry is safe and sound.

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#5) On April 19, 2011 at 9:58 PM, kstarich (30.76) wrote:

I hope so too Sinch.  not trying to be negative and I have not done a chart on HL specifically.  I own HL and also hope Larry is rescued and is safe.

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#6) On April 20, 2011 at 8:47 AM, Jbay76 (< 20) wrote:

Thanks for your input Chris!  It is very reassuring!  I initially creted this thread to provide an update on the litigation and Larry, but got a little carried away...yesterday was a rough afternoon for me and it probably carried over a bit.

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