These shares have a solid base of support at $5.00. As silver prices improve in the next year, I expect the shares to set an all-time high of at least $9.50.

Production for 2007 is expected to be about 7 million oz. The company also derives about 20 pct of revenues from gold.

Corporate Profile:

Established in 1891 in northern Idaho's Silver Valley, Hecla Mining Company's rich history of mining has distinguished it as a respected precious metals producer. Now headquartered in Coeur d'Alene, Idaho, this international, publicly traded company is 115 years old.

In 2005, Hecla was the lowest-cost primary silver producer in North America, producing 6 million ounces of silver at an average total cash cost of $2.96 per ounce. Hecla also produced 140,559 ounces of gold at an average total cash cost of $337 per ounce. The company has exploration properties and operating mines in five major world-class mining districts. Hecla's excellent exploration prospects, operating expertise, minimal debt and good cash position make this an excellent precious metals investment vehicle.

Hecla mines, processes and explores for silver and gold in the United States, Mexico and Venezuela. Hecla currently produces silver from two silver mines, Greens Creek and Lucky Friday, as well as mining gold at the La Camorra Unit in Venezuela. In 2005, the Greens Creek mine in Alaska contributed 2.9 million ounces of silver to Hecla's account, the Lucky Friday mine in northern Idaho produced 2.4 million ounces and the San Sebastian mine in Mexico produced approximately 0.8 million ounces of silver. The La Camorra Unit in Venezuela produced 101,474 ounces of gold in 2005.

Hecla has long been well known in the United States as a major primary silver producer and quality gold producer. The name "Hecla" is commonly associated with both precious metals by investors. Hecla's common stock has been traded on the New York Stock Exchange for over 40 years under the symbol "HL."

Wall Street analysts' notes:

In his speech to delegates at the twelfth annual Merrill Lynch Canada mining conference, Phillips S. Baker, Jr., President & CEO, provided an update on the activities of Hecla Mining Company. Mr. Baker highlighted that Hecla has 100% North American based silver reserves and resources, low cost, long life silver output, growth in both production and resource, and operational strength. Due to growth in the silver reserve-resource base, Mr. Baker noted that silver accounts for 82% of Hecla's NAV, the remainder from gold. The company expects to produce 6 million ozs of silver at a cash cost of $2.25/oz in 2006 (and 150,000 ozs of gold at a cash cost of $350-$375/oz). Cash flow is forecast to be plus $80 million. Hecla expects to grow silver output and reserves over the next year. The company sees 2007 silver output of 7 million ozs. The company sees total silver resources growing by 30 million ozs, to 165 million ozs, by year-end 2006.

Hecla Mining (HL-NYSE, US$5.74) OP Target: US$8.00 • Phil Baker, President and CEO of Hecla, positioned the company as a predominantly silver company with approximately 80% of its value in silver and 20% in gold. • At Lucky Friday, a resource expansion is expected at year-end as exploration drilling has shown mineralization at the 6,900 level. Additionally, one hole has shown mineralization at the 7,900 level. The company is also planning to explore elsewhere on its large land package and aims to make another significant discovery (100-200 mmoz silver). • At Greens Creek, two new claims have recently been acquired for additional exploration. The company expects a material increase in resources over the next two years. • At San Sebastian, Hecla's land package has increased to over 300 square miles. The property remains prospective as the silver and zinc anomalies appear to be better than those seen during previous mining activity. A scoping study is expected over the next 12 months.

(HL: Yahoo Finance file)
(HL: StockChart chart)
(HL: Investertech chart)
(HL: ADVFN Financial Data)
Hecla Mining website
Hecla - DGF2006
Hecla - DGF2005
Hecla - DGF2004

Silver spot chart (Interactive link)