Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of gold and silver miner Hecla Mining
So what: The Silver Shaft at the Lucky Friday Mine, which has been closed since a rock burst in December, will be closed to remove built-up material in the shaft. Production at the mine is expected to resume in early 2013. As a result of the news, management lowered 2012 silver production estimates to 7 million ounces from 9.5 million ounces.
Now what: There’s really nothing positive to say today considering the loss of production at the mine. Management was disappointed in the order, but the mine has been accident-prone and two miners died over the past year, so the ruling can’t be a complete surprise. No reason to buy the drop today, and keep an eye on future delays that may come from cleanup at the mine.
Interested in more info on Hecla Mining? Add it to your watchlist by clicking here.