Hecla Mining Co. Message Board
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2011 Revenue, EPS Projection
If you use 2009 production levels for all four metals and apply today's price of those metals HL would have an annualized revenue in 2011 of $762 million. That compares to revenue of $312 million in 2009.
When we get 2010 numbers next week we can redo the math.
But, the point is that HL earned $54 million in 2009 on revenues of $312 million. If they have revenues of $762 in 2011 what will there earnings be this year? Well, most of the increased revenue should drop to the bottom line since it is from price increases with no increased costs applied. Therefore earnings in 2011 could exceed $400 million and even approach $500 million. That would be $1.60 to $2.00 a share. A 20X multiple would put HL at $32 to $40 a share. Just the facts folks. Good luck all.-
wow nellie....
your numbers are wrong...
Revenues might approach 400M but not net income. Better go back to the drawing board. I think you are quite a bit overzealous...
Then you are mixing gross profit with net profit again when you are doing your PE calculations. Maybe you should leave it to the experts.
SM- 2 Replies to sandiegoman99
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Whoaaaa Sandie,
I think you need to go back and read my post. I never said a word about Net Income...I'm talking TOTAL REVENUE. Here is exactly what I said:
"If you use 2009 production levels for all four metals and apply today's price of those metals HL would have an annualized revenue in 2011 of $762 million. That compares to revenue of $312 million in 2009."
They did $312 million REVENUE in 2009 and will likely be a tad over $400 million REVENUE in 2010 when we see the numbers.
That kind of revenue would easily result in earnings of $1.60 or more. -
should be woaaaahhhh nellie... ;)
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Did you count their hedge book? The more POS rises, the more loss for HL.
- 1 Reply to a_dragon_hunter
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Ni hedge on silver at HL or gold. Minor hedge last yera on lead and zinc.
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Your numbers are right which is exciting. Even your low end 2011 estimate of $1.60 would be enormous (I'll be happy with $1.00 - $1.20). My guess is we will be near or above .15 a share in Q4 2010 which sets the stage for a blow out in 2011. The upside potential here looks great and metal prices are not likely to go lower with the world in revolution and the U.S. government in fiscal and mental bankruptcy.
Amazing that analyst estimates for 2011 average $431 million when they could be as high as $762 million. I guess they don't know how to multiply. Also, how can they have an average revenue estimate for Q4 2010 of $93 million when we did $115 million in Q3 at much lower metal prices. We'll know all in a few days.- 2 Replies to icenicelt
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"I guess they don't know how to multiply."
There is still a stong downward bias as many don't yet see these metal prices are here to stay. They soon will however. -
"Amazing that analyst estimates for 2011 average $431 million when they could be as high as $762 million. I guess they don't know how to multiply. Also, how can they have an average revenue estimate for Q4 2010 of $93 million when we did $115 million in Q3 at much lower metal prices. We'll know all in a few days."
Maybe the analyst have a better understaning of Baker's voodoo economics.
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