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Core Insights - The article emphasizes the importance of identifying undervalued miners with upcoming catalysts to enhance portfolio performance [1] Group 1: Research and Analysis - Alluvial Gold Research provides detailed analysis on miners, ranking them to assist investors in making informed decisions [1] - Subscribers gain access to current portfolios and real-time buy/sell alerts, which can help in optimizing investment strategies [1] Group 2: Investment Positioning - The focus is on positioning in the most undervalued miners, which is crucial for achieving outperformance in investment portfolios [1]

Core Insights - Hecla Mining Company (NYSE:HL) is recognized as one of the 11 Best Silver Mining Stocks to Buy according to hedge funds [1] - Roth Capital raised its price target for Hecla Mining from $6 to $6.50 while maintaining a Neutral rating, reflecting a cautious outlook despite strong Q2 2025 results [1][2] - The company confirmed its silver production guidance and slightly increased its gold production guidance, although there are concerns that Q2 may represent a peak in performance [1][2] Financial Performance - Hecla Mining reported stronger-than-expected Q2 results, which led to the revision of the price target [2] - The revised price target of $6.50 indicates a modest increase in gold production while maintaining stable silver output, which is crucial for the company's operations [2] Market Outlook - Roth Capital's Neutral rating suggests limited near-term upside for Hecla Mining, with future performance reliant on consistent production delivery [2] - A cautious outlook for 2025 balances the improved quarterly performance, indicating potential challenges ahead [2]

Core Points - Hecla Mining Company will be added to the S&P SmallCap 600 Index effective September 22, 2025, reflecting its strong performance and operational scale [1][2] - The S&P SmallCap 600 Index includes U.S. equities with market capitalizations between $1.2 billion and $8.0 billion, indicating Hecla's increasing recognition in the investment community [2] - Hecla is the largest silver producer in the United States and Canada, and its inclusion in the index is expected to broaden its shareholder base and enhance trading liquidity [3][4] Company Overview - Hecla Mining Company, founded in 1891, operates mines in Alaska, Idaho, and Quebec, Canada, and is developing a mine in the Yukon, Canada [4] - The company has over 1,500 employees and is focused on silver and gold operations across North America [5][9] - Rob Krcmarov serves as the President and CEO, emphasizing the long-term value created for shareholders, employees, and communities [3]

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying strong candidates can be challenging due to inherent volatility and risks [1] Group 1: Hecla Mining's Growth Potential - Hecla Mining (HL) is currently recommended as a growth stock by the Zacks Growth Style Score system, which evaluates a company's real growth prospects beyond traditional metrics [2] - The company has a historical EPS growth rate of 5.8%, but projected EPS growth for this year is expected to be 145.5%, significantly higher than the industry average of 8.7% [4] - Hecla Mining's sales are anticipated to grow by 20.7% this year, compared to the industry average of 19.9%, indicating strong sales growth potential [6] Group 2: Efficiency and Asset Utilization - The asset utilization ratio for Hecla Mining is 0.35, which means the company generates $0.35 in sales for every dollar in assets, outperforming the industry average of 0.33 [5] - This efficiency in utilizing assets to generate sales is a critical factor in growth investing [5] Group 3: Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for Hecla Mining, with the Zacks Consensus Estimate for the current year increasing by 35% over the past month [8] - The combination of upward earnings estimate revisions and a strong Growth Score of A positions Hecla Mining favorably for potential outperformance in the market [10]

Industry Overview - The economics of metals mining are cyclical, with margins affected by commodity prices, as operational costs remain constant regardless of price fluctuations [1] - A rise in commodity prices can significantly expand margins for mining companies [1] Market Sentiment - Gold and silver have reached new 52-week highs, leading to increased profitability and positive market sentiment towards mining stocks [2] - The current metals rally presents potential investment opportunities in the mining sector [3] Investment Vehicles - For investors hesitant to buy physical gold, SPDR Gold Shares (GLD) and iShares Gold Trust (IAU) are recommended as convenient ways to track gold performance [3] - GLD has a larger market capitalization of approximately $111.92 billion, attracting significant institutional participation, with $2.8 billion in institutional buying last quarter [6][7] - IAU, with assets under management of about $52.20 billion, offers a lower expense ratio of 0.25%, making it attractive for long-term investors [9][10] Company Spotlight: Hecla Mining - Hecla Mining has experienced a 47.7% rally in stock price over the past month, driven by rising gold and silver prices [12][13] - Analysts have adjusted their ratings, with a consensus Hold rating valuing the stock at $7.4 per share, indicating a potential downside of 16.6% [14] - Some analysts, like Heiko Ihle from HC Wainwright, have a Buy rating with a target price of $12.5 per share, suggesting a possible 42% upside from current levels [14][15]

Company Overview - Hecla Mining (HL) currently holds a Momentum Style Score of B, indicating a positive momentum outlook [2] - The company has a Zacks Rank of 2 (Buy), suggesting strong potential for outperformance in the market [3] Price Performance - Over the past week, HL shares have increased by 2.87%, outperforming the Zacks Mining - Silver industry, which rose by 2.73% [5] - In the last month, HL's price change is 40.59%, significantly higher than the industry's 17.39% [5] - Over the past quarter, HL shares have risen by 25.12%, and over the last year, they are up 35.18%, compared to the S&P 500's increases of 10.77% and 17.6%, respectively [6] Trading Volume - The average 20-day trading volume for HL is 22,061,916 shares, which serves as a bullish indicator when combined with rising stock prices [7] Earnings Outlook - In the past two months, three earnings estimates for HL have been revised upwards, while none have been lowered, leading to an increase in the consensus estimate from $0.18 to $0.27 [9] - For the next fiscal year, two estimates have also moved upwards with no downward revisions [9] Conclusion - Considering the positive price performance, trading volume, and favorable earnings outlook, HL is positioned as a 2 (Buy) stock with a Momentum Score of B, making it a strong candidate for near-term investment [11]

Core Insights - Pan American Silver (PAAS) and Hecla Mining (HL) are prominent players in the mining sector, focusing on silver and other metals like gold, lead, and zinc [1][3]. Silver and Gold Market Overview - Silver prices have increased by 35% this year, currently at $38.80 per ounce, the highest since 2011, driven by expectations of U.S. Federal Reserve policy easing [2] - Gold prices have risen by 28.5% year-to-date, supported by safe-haven demand and geopolitical tensions [2] - Strong industrial demand for silver is anticipated, particularly from the solar energy sector and electronic applications [2] - The Silver Institute forecasts a continued deficit in the silver market through 2025, which is expected to support higher prices [2] - The outlook for gold remains robust due to geopolitical tensions and central bank purchases [2] Pan American Silver (PAAS) Highlights - Pan American Silver operates 12 mines across the Americas and is a leading producer of silver and gold [4] - As of June 30, 2024, PAAS's proven and probable mineral reserves include 468 million ounces of silver and 6.9 million ounces of gold, with an expected increase of 58 million ounces from the acquisition of MAG Silver Corp. for $2.1 billion [5][6] - The company reported an 18% year-over-year revenue increase to $812 million in Q2, with adjusted earnings per share rising 291% to 43 cents [7] - Record cash flow from operations reached $293.4 million, with total liquidity of $1.859 billion and a 20% dividend increase to 12 cents per share [8] - The all-in sustaining costs (AISC) for silver were $19.69 per ounce in Q2, with expectations for 2025 AISC to improve to $16.25 - $18.25 per ounce [9] - PAAS produced 5.1 million ounces of silver and 178.7 thousand ounces of gold in Q2, on track to meet 2025 guidance of 20-21 million ounces of silver and 735,000-800,000 ounces of gold [10] Hecla Mining (HL) Highlights - Hecla Mining produces over 45% of the silver in the U.S. and operates mines in Alaska, Idaho, Quebec, and Yukon [14] - Proven and probable silver reserves were 240 million ounces as of the end of 2024, with gold reserves at 2.2 million ounces [15] - The company reported record revenues of $304 million in Q2, a 24% increase year-over-year, with earnings up 300% to eight cents per share [15] - Hecla produced 4.52 million ounces of silver and 45,895 ounces of gold in Q2, projecting silver production of 15.5-17 million ounces for 2025 [16] - AISC per ounce of silver was $5.19 in Q2, with expectations for 2025 AISC at $11.00-$13.00 [17] Comparative Analysis - In the past three months, PAAS stock gained 35.2%, while HL stock surged 54.7% [22] - PAAS trades at a forward price-to-sales (P/S) multiple of 3.38X, below the industry average of 4.28X, while HL trades at 4.48X [23] - Earnings estimates for PAAS indicate a 150.6% growth for 2025, while HL's estimates show a 145.5% improvement [19][20] Investment Outlook - Both companies are well-positioned to benefit from rising silver and gold prices, with PAAS's acquisition of MAG Silver enhancing its growth outlook despite uncertainties surrounding the Escobal mine [25] - Hecla Mining's strong fundamentals and low-cost operations make it a compelling investment choice, currently rated as a Zacks Rank 2 (Buy), while PAAS holds a Zacks Rank 3 (Hold) [26]

Industry Overview - The Zacks Mining - Silver industry is experiencing promising prospects due to rising silver prices, with global industrial demand projected at approximately 1.15 billion ounces, while supply is expected to be lower, indicating a fifth consecutive year of deficit [1][4] - The industry comprises companies engaged in the exploration, development, and production of silver, with only 20% of silver coming from mining activities where silver is the primary revenue source [3] Demand and Supply Dynamics - Total silver demand is expected to dip by 1% to 1.148 billion ounces in 2025, with industrial use projected at around 677.4 million ounces, accounting for roughly 59% of total demand, driven by the solar energy industry and rising usage in electrical applications [4][5] - Silver prices increased by approximately 22% in 2024 and 33.7% in 2025, supported by economic uncertainties and solid demand amid tight supply [5] Cost Management and Operational Efficiency - Industry players are facing rising production costs, particularly in energy, wages, and materials, leading to a focus on improving sales volumes and cost-effectiveness through technological innovations [6] - Companies are investing in R&D to enhance operational efficiency and sustain growth while managing costs [6] Stock Performance and Valuation - The Mining-Silver Industry has outperformed the Basic Material sector and the Zacks S&P 500 composite over the past year, with a collective gain of 42% compared to the sector's 2.4% rise [10] - The industry is currently trading at a trailing 12-month EV/EBITDA ratio of 11.79X, lower than the S&P 500's 17.66X and the Basic Material sector's 12.73X [12] Company Highlights - **Pan American Silver (PAAS)**: Reported record cash flow of $233 million and a 291% year-over-year increase in earnings per share, with a projected output of 20-21 million ounces of silver in 2025 [16][17] - **Vizsla Silver (VZLA)**: Advancing its flagship Panuco silver-gold project, targeting first production in the second half of 2027, with a recent 43% increase in estimated mineral resources [22][23] - **Avino Silver Mines (ASM)**: Produced 645,602 silver equivalent ounces in Q2 2025, up 5% year-over-year, and remains on track to achieve a production range of 2.5 - 2.8 million silver equivalent ounces in 2025 [25][26] - **Hecla Mining (HL)**: Reported record revenues of $304 million and a 10% increase in silver production, with a projected silver equivalent output of 35.5 - 39.0 million ounces for 2025 [29][30]

Core Viewpoint - Hecla Mining (HL) shows a promising earnings outlook, with analysts raising their earnings estimates, which may positively impact the stock price [1][2]. Earnings Estimate Revisions - Analysts' optimism regarding Hecla Mining's earnings prospects is leading to higher estimates, which historically correlates with stock price movements [2]. - For the current quarter, the earnings estimate is $0.09 per share, reflecting a 200% increase from the previous year [5]. - Over the last 30 days, the Zacks Consensus Estimate for Hecla Mining has risen by 50%, with no negative revisions [5]. - For the full year, the earnings estimate is $0.27 per share, indicating a 145.5% increase from the previous year [6]. - The consensus estimate for the current year has increased by 35% due to three upward revisions and no negative changes [6][7]. Zacks Rank - Hecla Mining currently holds a Zacks Rank 2 (Buy), indicating strong agreement among analysts on the positive earnings revisions [8]. - Stocks with Zacks Rank 1 (Strong Buy) and 2 (Buy) have historically outperformed the S&P 500 [8]. Stock Performance - Hecla Mining shares have increased by 29.1% over the past four weeks, suggesting investor confidence in the company's earnings growth prospects [9].