Hecla's Stock Pares Gains After Q2 Revenue Outlook Is Below Expectations

By Tomi KilgoreMarketsMarketWatch Pulse

Hecla Mining Co. said Friday that, while it expects its operating mines to perform in line with second-quarter estimates, the silver and gold miner expects revenue of $127 million to $137 million, below the FactSet consensus of $145.8 million. Hecla expects Q2 adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $38 million to $48 million, compared with the FactSet consensus of $52.5 million. Net losses for the quarter ending Friday are expected to be $2.0 million to $8.0 million. Separately, the company estimates the Q2 realized price for gold at $1,235 per ounce to $1,265 per ounce, while July gold futures were last up 0.2% at $1,247.90. The company estimates realized silver prices at $16.50 per ounce to $17.30 per ounce, while July futures were up 1.1% at $16.77 per ounce. Hecla's stock resumed trade to be up 1%, compared with the pre-halt gain of 1.5%. It has lost 0.2% year to date, while the VanEck Vectors Gold Miners ETF has gained 7.0% and the S&P 500 has climbed 9.0%.

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