Intrinsic value of Hecla Mining - HL

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$5.45

  Intrinsic Value

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  Rating & Target

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  Value-price divergence*

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Previous close

$5.45

 
Intrinsic value

$36.57

 
Up/down potential

+571%

 
Rating

str. buy

 
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*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

We calculate the intrinsic value of HL stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2016), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 2.2

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  45.50
  42.60
  38.84
  35.46
  32.41
  29.67
  27.20
  24.98
  22.98
  21.19
  19.57
  18.11
  16.80
  15.62
  14.56
  13.60
  12.74
  11.97
  11.27
  10.64
  10.08
  9.57
  9.11
  8.70
  8.33
  8.00
  7.70
  7.43
  7.19
  6.97
  6.77
Revenue, $m
  646
  921
  1,279
  1,732
  2,294
  2,975
  3,784
  4,729
  5,816
  7,048
  8,427
  9,953
  11,625
  13,441
  15,398
  17,492
  19,721
  22,081
  24,570
  27,185
  29,925
  32,789
  35,778
  38,891
  42,132
  45,502
  49,005
  52,646
  56,429
  60,361
  64,448
Variable operating expenses, $m
 
  228
  317
  430
  569
  738
  938
  1,173
  1,442
  1,748
  2,090
  2,468
  2,883
  3,333
  3,819
  4,338
  4,891
  5,476
  6,093
  6,742
  7,421
  8,132
  8,873
  9,645
  10,449
  11,284
  12,153
  13,056
  13,994
  14,970
  15,983
Fixed operating expenses, $m
 
  387
  397
  407
  417
  428
  438
  449
  461
  472
  484
  496
  508
  521
  534
  547
  561
  575
  590
  604
  619
  635
  651
  667
  684
  701
  718
  736
  755
  774
  793
Total operating expenses, $m
  529
  615
  714
  837
  986
  1,166
  1,376
  1,622
  1,903
  2,220
  2,574
  2,964
  3,391
  3,854
  4,353
  4,885
  5,452
  6,051
  6,683
  7,346
  8,040
  8,767
  9,524
  10,312
  11,133
  11,985
  12,871
  13,792
  14,749
  15,744
  16,776
Operating income, $m
  117
  305
  565
  896
  1,308
  1,809
  2,407
  3,107
  3,913
  4,828
  5,853
  6,989
  8,234
  9,587
  11,045
  12,607
  14,269
  16,030
  17,887
  19,839
  21,884
  24,022
  26,254
  28,579
  30,999
  33,517
  36,134
  38,854
  41,680
  44,618
  47,672
EBITDA, $m
  234
  473
  797
  1,211
  1,725
  2,350
  3,095
  3,967
  4,971
  6,110
  7,386
  8,800
  10,349
  12,032
  13,846
  15,789
  17,857
  20,047
  22,357
  24,785
  27,328
  29,988
  32,763
  35,655
  38,664
  41,795
  45,049
  48,432
  51,947
  55,600
  59,397
Interest expense (income), $m
  19
  19
  33
  51
  74
  103
  137
  178
  226
  282
  344
  414
  492
  577
  669
  769
  875
  988
  1,108
  1,235
  1,368
  1,507
  1,653
  1,804
  1,963
  2,127
  2,299
  2,477
  2,662
  2,854
  3,054
Earnings before tax, $m
  97
  287
  532
  845
  1,234
  1,707
  2,270
  2,929
  3,687
  4,546
  5,509
  6,575
  7,742
  9,010
  10,376
  11,838
  13,394
  15,041
  16,779
  18,604
  20,516
  22,515
  24,601
  26,775
  29,037
  31,389
  33,835
  36,377
  39,018
  41,764
  44,618
Tax expense, $m
  27
  77
  144
  228
  333
  461
  613
  791
  995
  1,228
  1,487
  1,775
  2,090
  2,433
  2,801
  3,196
  3,616
  4,061
  4,530
  5,023
  5,539
  6,079
  6,642
  7,229
  7,840
  8,475
  9,135
  9,822
  10,535
  11,276
  12,047
Net income, $m
  70
  209
  388
  617
  901
  1,246
  1,657
  2,138
  2,691
  3,319
  4,022
  4,799
  5,652
  6,577
  7,574
  8,642
  9,778
  10,980
  12,248
  13,581
  14,977
  16,436
  17,959
  19,545
  21,197
  22,914
  24,699
  26,555
  28,483
  30,488
  32,571

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  199
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  2,372
  3,102
  4,306
  5,833
  7,724
  10,015
  12,740
  15,923
  19,582
  23,731
  28,374
  33,513
  39,143
  45,256
  51,845
  58,896
  66,401
  74,347
  82,726
  91,531
  100,757
  110,401
  120,463
  130,947
  141,858
  153,205
  165,001
  177,259
  189,998
  203,237
  216,998
Adjusted assets (=assets-cash), $m
  2,173
  3,102
  4,306
  5,833
  7,724
  10,015
  12,740
  15,923
  19,582
  23,731
  28,374
  33,513
  39,143
  45,256
  51,845
  58,896
  66,401
  74,347
  82,726
  91,531
  100,757
  110,401
  120,463
  130,947
  141,858
  153,205
  165,001
  177,259
  189,998
  203,237
  216,998
Revenue / Adjusted assets
  0.297
  0.297
  0.297
  0.297
  0.297
  0.297
  0.297
  0.297
  0.297
  0.297
  0.297
  0.297
  0.297
  0.297
  0.297
  0.297
  0.297
  0.297
  0.297
  0.297
  0.297
  0.297
  0.297
  0.297
  0.297
  0.297
  0.297
  0.297
  0.297
  0.297
  0.297
Average production assets, $m
  1,035
  1,475
  2,048
  2,774
  3,673
  4,762
  6,058
  7,571
  9,311
  11,284
  13,492
  15,935
  18,612
  21,519
  24,652
  28,005
  31,573
  35,352
  39,336
  43,523
  47,910
  52,495
  57,280
  62,265
  67,453
  72,849
  78,457
  84,286
  90,343
  96,638
  103,182
Working capital, $m
  176
  -24
  -33
  -45
  -60
  -77
  -98
  -123
  -151
  -183
  -219
  -259
  -302
  -349
  -400
  -455
  -513
  -574
  -639
  -707
  -778
  -853
  -930
  -1,011
  -1,095
  -1,183
  -1,274
  -1,369
  -1,467
  -1,569
  -1,676
Total debt, $m
  513
  886
  1,378
  2,001
  2,772
  3,707
  4,819
  6,117
  7,611
  9,303
  11,198
  13,294
  15,591
  18,086
  20,774
  23,651
  26,712
  29,955
  33,373
  36,966
  40,730
  44,665
  48,770
  53,047
  57,499
  62,129
  66,941
  71,943
  77,140
  82,542
  88,156
Total liabilities, $m
  892
  1,265
  1,757
  2,380
  3,151
  4,086
  5,198
  6,496
  7,990
  9,682
  11,577
  13,673
  15,970
  18,465
  21,153
  24,030
  27,091
  30,334
  33,752
  37,345
  41,109
  45,044
  49,149
  53,426
  57,878
  62,508
  67,320
  72,322
  77,519
  82,921
  88,535
Total equity, $m
  1,480
  1,836
  2,549
  3,453
  4,572
  5,929
  7,542
  9,426
  11,593
  14,049
  16,797
  19,840
  23,172
  26,792
  30,692
  34,867
  39,309
  44,013
  48,974
  54,187
  59,648
  65,357
  71,314
  77,520
  83,980
  90,697
  97,681
  104,938
  112,479
  120,316
  128,463
Total liabilities and equity, $m
  2,372
  3,101
  4,306
  5,833
  7,723
  10,015
  12,740
  15,922
  19,583
  23,731
  28,374
  33,513
  39,142
  45,257
  51,845
  58,897
  66,400
  74,347
  82,726
  91,532
  100,757
  110,401
  120,463
  130,946
  141,858
  153,205
  165,001
  177,260
  189,998
  203,237
  216,998
Debt-to-equity ratio
  0.347
  0.480
  0.540
  0.580
  0.610
  0.630
  0.640
  0.650
  0.660
  0.660
  0.670
  0.670
  0.670
  0.680
  0.680
  0.680
  0.680
  0.680
  0.680
  0.680
  0.680
  0.680
  0.680
  0.680
  0.680
  0.690
  0.690
  0.690
  0.690
  0.690
  0.690
Adjusted equity ratio
  0.590
  0.592
  0.592
  0.592
  0.592
  0.592
  0.592
  0.592
  0.592
  0.592
  0.592
  0.592
  0.592
  0.592
  0.592
  0.592
  0.592
  0.592
  0.592
  0.592
  0.592
  0.592
  0.592
  0.592
  0.592
  0.592
  0.592
  0.592
  0.592
  0.592
  0.592

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  70
  209
  388
  617
  901
  1,246
  1,657
  2,138
  2,691
  3,319
  4,022
  4,799
  5,652
  6,577
  7,574
  8,642
  9,778
  10,980
  12,248
  13,581
  14,977
  16,436
  17,959
  19,545
  21,197
  22,914
  24,699
  26,555
  28,483
  30,488
  32,571
Depreciation, amort., depletion, $m
  117
  168
  233
  315
  417
  541
  688
  860
  1,058
  1,282
  1,533
  1,811
  2,115
  2,445
  2,801
  3,182
  3,588
  4,017
  4,470
  4,946
  5,444
  5,965
  6,509
  7,076
  7,665
  8,278
  8,916
  9,578
  10,266
  10,982
  11,725
Funds from operations, $m
  248
  377
  621
  932
  1,318
  1,787
  2,345
  2,998
  3,749
  4,601
  5,555
  6,610
  7,767
  9,023
  10,376
  11,824
  13,365
  14,998
  16,718
  18,527
  20,421
  22,402
  24,468
  26,621
  28,862
  31,192
  33,615
  36,133
  38,750
  41,469
  44,297
Change in working capital, $m
  23
  -7
  -9
  -12
  -15
  -18
  -21
  -25
  -28
  -32
  -36
  -40
  -43
  -47
  -51
  -54
  -58
  -61
  -65
  -68
  -71
  -74
  -78
  -81
  -84
  -88
  -91
  -95
  -98
  -102
  -106
Cash from operations, $m
  225
  429
  630
  944
  1,333
  1,805
  2,366
  3,023
  3,778
  4,633
  5,591
  6,650
  7,810
  9,070
  10,427
  11,879
  13,423
  15,059
  16,783
  18,595
  20,492
  22,476
  24,546
  26,702
  28,946
  31,280
  33,706
  36,228
  38,848
  41,572
  44,403
Maintenance CAPEX, $m
  0
  -118
  -168
  -233
  -315
  -417
  -541
  -688
  -860
  -1,058
  -1,282
  -1,533
  -1,811
  -2,115
  -2,445
  -2,801
  -3,182
  -3,588
  -4,017
  -4,470
  -4,946
  -5,444
  -5,965
  -6,509
  -7,076
  -7,665
  -8,278
  -8,916
  -9,578
  -10,266
  -10,982
New CAPEX, $m
  -165
  -440
  -573
  -726
  -899
  -1,090
  -1,295
  -1,513
  -1,740
  -1,973
  -2,208
  -2,443
  -2,677
  -2,907
  -3,133
  -3,353
  -3,568
  -3,778
  -3,984
  -4,187
  -4,387
  -4,586
  -4,785
  -4,985
  -5,188
  -5,396
  -5,609
  -5,829
  -6,057
  -6,295
  -6,543
Cash from investing activities, $m
  -199
  -558
  -741
  -959
  -1,214
  -1,507
  -1,836
  -2,201
  -2,600
  -3,031
  -3,490
  -3,976
  -4,488
  -5,022
  -5,578
  -6,154
  -6,750
  -7,366
  -8,001
  -8,657
  -9,333
  -10,030
  -10,750
  -11,494
  -12,264
  -13,061
  -13,887
  -14,745
  -15,635
  -16,561
  -17,525
Free cash flow, $m
  26
  -128
  -110
  -15
  118
  298
  530
  821
  1,177
  1,602
  2,100
  2,673
  3,322
  4,048
  4,849
  5,724
  6,673
  7,692
  8,781
  9,938
  11,160
  12,446
  13,796
  15,208
  16,682
  18,219
  19,819
  21,483
  23,213
  25,010
  26,878
Issuance/(repayment) of debt, $m
  -11
  379
  492
  623
  771
  935
  1,112
  1,299
  1,493
  1,693
  1,895
  2,097
  2,297
  2,494
  2,688
  2,877
  3,062
  3,242
  3,419
  3,592
  3,764
  3,935
  4,105
  4,277
  4,452
  4,630
  4,813
  5,001
  5,197
  5,401
  5,615
Issuance/(repurchase) of shares, $m
  4
  105
  332
  296
  229
  124
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  -8
  484
  824
  919
  1,000
  1,059
  1,112
  1,299
  1,493
  1,693
  1,895
  2,097
  2,297
  2,494
  2,688
  2,877
  3,062
  3,242
  3,419
  3,592
  3,764
  3,935
  4,105
  4,277
  4,452
  4,630
  4,813
  5,001
  5,197
  5,401
  5,615
Total cash flow (excl. dividends), $m
  19
  251
  381
  608
  890
  1,233
  1,641
  2,120
  2,670
  3,295
  3,995
  4,770
  5,619
  6,542
  7,537
  8,601
  9,735
  10,935
  12,200
  13,530
  14,924
  16,381
  17,901
  19,485
  21,134
  22,849
  24,632
  26,485
  28,410
  30,412
  32,492
Retained Cash Flow (-), $m
  -141
  -549
  -713
  -904
  -1,119
  -1,357
  -1,613
  -1,884
  -2,166
  -2,456
  -2,749
  -3,042
  -3,333
  -3,619
  -3,900
  -4,175
  -4,443
  -4,704
  -4,961
  -5,213
  -5,462
  -5,709
  -5,957
  -6,206
  -6,459
  -6,718
  -6,983
  -7,257
  -7,541
  -7,837
  -8,147
Prev. year cash balance distribution, $m
 
  193
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  0
  0
  0
  0
  0
  28
  235
  504
  839
  1,246
  1,728
  2,286
  2,923
  3,636
  4,427
  5,292
  6,230
  7,240
  8,318
  9,462
  10,672
  11,944
  13,279
  14,675
  16,131
  17,649
  19,228
  20,869
  22,574
  24,346
Discount rate, %
 
  4.30
  4.52
  4.74
  4.98
  5.23
  5.49
  5.76
  6.05
  6.35
  6.67
  7.00
  7.35
  7.72
  8.11
  8.51
  8.94
  9.39
  9.86
  10.35
  10.87
  11.41
  11.98
  12.58
  13.21
  13.87
  14.56
  15.29
  16.05
  16.86
  17.70
PV of cash for distribution, $m
 
  0
  0
  0
  0
  0
  21
  159
  315
  482
  653
  821
  976
  1,111
  1,221
  1,300
  1,345
  1,356
  1,333
  1,281
  1,202
  1,104
  991
  870
  747
  628
  515
  413
  323
  246
  183
Current shareholders' claim on cash, %
  100
  94.8
  84.5
  78.3
  75.0
  73.6
  73.6
  73.6
  73.6
  73.6
  73.6
  73.6
  73.6
  73.6
  73.6
  73.6
  73.6
  73.6
  73.6
  73.6
  73.6
  73.6
  73.6
  73.6
  73.6
  73.6
  73.6
  73.6
  73.6
  73.6
  73.6

Hecla Mining Company, together with its subsidiaries, discovers, acquires, develops, produces, and markets precious and base metal deposits worldwide. The company offers unrefined gold and silver bullion bars to precious metals traders; and lead, zinc, and bulk concentrates to custom smelters and brokers. It owns 100% interests in the Greens Creek mine located on Admiralty Island in Southeast Alaska; the Lucky Friday unit located in the Coeur dÂ’Alene mining district in northern Idaho; the Casa Berardi mine located in the Abitibi region of north-western Quebec, Canada; and the San Sebastian unit located in the state of Durango, Mexico. The company was founded in 1891 and is based in Coeur d'Alene, Idaho.

FINANCIAL RATIOS  of  Hecla Mining (HL)

Valuation Ratios
P/E Ratio 30.8
Price to Sales 3.3
Price to Book 1.5
Price to Tangible Book
Price to Cash Flow 9.6
Price to Free Cash Flow 35.9
Growth Rates
Sales Growth Rate 45.5%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 20.4%
Cap. Spend. - 3 Yr. Gr. Rate 1.8%
Financial Strength
Quick Ratio 33
Current Ratio 0.2
LT Debt to Equity 34.3%
Total Debt to Equity 34.7%
Interest Coverage 6
Management Effectiveness
Return On Assets 3.6%
Ret/ On Assets - 3 Yr. Avg. 1.6%
Return On Total Capital 3.6%
Ret/ On T. Cap. - 3 Yr. Avg. -0%
Return On Equity 5%
Return On Equity - 3 Yr. Avg. -0%
Asset Turnover 0.3
Profitability Ratios
Gross Margin 29.7%
Gross Margin - 3 Yr. Avg. 18.5%
EBITDA Margin 36.1%
EBITDA Margin - 3 Yr. Avg. 29.8%
Operating Margin 18.1%
Oper. Margin - 3 Yr. Avg. 4.9%
Pre-Tax Margin 15%
Pre-Tax Margin - 3 Yr. Avg. 3.5%
Net Profit Margin 10.8%
Net Profit Margin - 3 Yr. Avg. -1.7%
Effective Tax Rate 27.8%
Eff/ Tax Rate - 3 Yr. Avg. -63.8%
Payout Ratio 5.7%

HL stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the HL stock intrinsic value calculation we used $646 million for the last fiscal year's total revenue generated by Hecla Mining. The default revenue input number comes from 2016 income statement of Hecla Mining. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our HL stock valuation model: a) initial revenue growth rate of 42.6% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 4.3%, whose default value for HL is calculated based on our internal credit rating of Hecla Mining, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Hecla Mining.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of HL stock the variable cost ratio is equal to 24.8%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $378 million in the base year in the intrinsic value calculation for HL stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 3.7% for Hecla Mining.

Corporate tax rate of 27% is the nominal tax rate for Hecla Mining. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the HL stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for HL are equal to 160.1%.

Life of production assets of 8.8 years is the average useful life of capital assets used in Hecla Mining operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for HL is equal to -2.6%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $1480 million for Hecla Mining - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 402.647 million for Hecla Mining is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Hecla Mining at the current share price and the inputted number of shares is $2.2 billion.


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COMPANY NEWS

▶ Hecla Mining: The Word on Wall Street   [Apr-26-17 10:38AM  Market Realist]
▶ Keeping Tabs on Rating Changes in the Silver Miner Space   [Apr-24-17 02:36PM  Market Realist]
▶ Reading Mining Performances So Far in April   [07:39AM  Market Realist]
▶ Hecla Mining Releases Preliminary Operating Results   [Apr-21-17 01:03PM  GuruFocus.com]
▶ How Miners Correlations to Gold Are Trending   [Apr-20-17 12:10PM  Market Realist]
▶ Will Newmont Put Its 1Q17 Performance behind It in 2017?   [Apr-19-17 03:05PM  Market Realist]
▶ Geopolitical Tensions Could Make Gold Shine Brighter   [Apr-17-17 05:35PM  Market Realist]
▶ How Are Miners Trading amid the Precious Metal Revival?   [Apr-13-17 11:49AM  Market Realist]
▶ Long-Term Value Creator   [Apr-12-17 03:16PM  GuruFocus.com]
▶ How Precious Metals Moved on April 10   [Apr-11-17 04:23PM  Market Realist]
▶ How Mining Shares Are Moving in April 2017   [07:38AM  Market Realist]
▶ Rise in Precious Metals: More Demand for Mining Shares?   [Apr-07-17 12:46PM  Market Realist]
▶ Will Hecla Mining Company Increase Its Dividend in 2017?   [Apr-04-17 11:07AM  Motley Fool]
▶ Are Silver Miners Oversold?   [09:05AM  Market Realist]
▶ These Silver Miners Are in Excellent Financial Shape   [Apr-03-17 07:35AM  Market Realist]
▶ Wheres the Platinum Spread Headed in 2017?   [12:20PM  Market Realist]
▶ Hecla Mining Boasts High Reserve Grades   [07:36AM  Market Realist]
▶ Better Buy: Hecla Mining Company vs. Pan American Silver   [Mar-22-17 08:15AM  at Motley Fool]
▶ Better Buy: Alcoa Inc. vs. Hecla Mining   [Mar-17-17 07:48AM  at Motley Fool]
▶ Hecla Reports Labor Strike at Lucky Friday   [08:45AM  Business Wire]
▶ Hecla Mining Company's 13% Decline in February, Explained   [Mar-06-17 09:33AM  at Motley Fool]
▶ Here's Why Hecla Mining Gained 23% in January   [Feb-09-17 02:35PM  at Motley Fool]
▶ 3 Things Hecla Mining Company Has to Prove in 2017   [Feb-03-17 11:16AM  at Motley Fool]
Stock chart of HL Financial statements of HL
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

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