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HL

Hecla Mining Co. – Silver Ore Mining
Founded in 1891,Hecla Mining Company is the largest silver producer in the United States. In addition to operating mines in Alaska, Idaho and Quebec, Canada, the Company owns a number of exploration properties and pre-development projects in world-class silver and gold mining districts throughout North America.
Analysis Results
Intrinsic Value $25.70
Latest Price $4.54
Relative Value 82% undervalued
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 51.8%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 8.0%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 51.8%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2022 0.208 0.193
2023 0.316 0.271
2024 0.48 0.38
2025 0.728 0.534
2026 1.11 0.751
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 18.7 billion. This corresponds to a present value of 11.7 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 2.13 billion. Adding in the terminal value gives a total present value of 13.9 billion.

There are presently 539.0 million outstanding shares, so the intrinsic value per share is 25.7.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 341,627,000
Current Cash 210,010,000
Current Liabilities 160,383,000
Current Debt 5,612,000
Non-Cash Working Capital (NCWC) -23,154,000
Change in NCWC -34,711,000
EBIT 106,519,000
Tax Provision -29,569,000
Depreciation and Amortization 172,651,000
Capital Expenditure -109,048,000
Unlevered Free Cash Flow 135,411,000
Current Assets 284,681,000
Current Cash 129,830,000
Current Liabilities 149,785,000
Current Debt 6,491,000
Non-Cash Working Capital (NCWC) 11,557,000
Change in NCWC 6,430,000
EBIT 77,084,000
Tax Provision 135,000
Depreciation and Amortization 164,026,000
Capital Expenditure -91,016,000
Unlevered Free Cash Flow 156,524,000
Current Assets 179,124,000
Current Cash 62,452,000
Current Liabilities 116,974,000
Current Debt 5,429,000
Non-Cash Working Capital (NCWC) 5,127,000
Change in NCWC -704,000
EBIT -39,770,000
Tax Provision -24,101,000
Depreciation and Amortization 204,475,000
Capital Expenditure -121,421,000
Unlevered Free Cash Flow 42,580,000
Current Assets 164,150,000
Current Cash 27,389,000
Current Liabilities 136,194,000
Current Debt 5,264,000
Non-Cash Working Capital (NCWC) 5,831,000
Change in NCWC 11,893,000
EBIT -11,181,000
Tax Provision -6,701,000
Depreciation and Amortization 140,905,000
Capital Expenditure -136,933,000
Unlevered Free Cash Flow 4,684,000
Current Assets 320,325,000
Current Cash 219,865,000
Current Liabilities 112,130,000
Current Debt 5,608,000
Non-Cash Working Capital (NCWC) -6,062,000
Change in NCWC 10,805,000
EBIT 79,927,000
Tax Provision 19,879,000
Depreciation and Amortization 121,930,000
Capital Expenditure -98,038,000
Unlevered Free Cash Flow 114,624,000
Current Assets 303,384,000
Current Cash 198,894,000
Current Liabilities 127,480,000
Current Debt 6,123,000
Non-Cash Working Capital (NCWC) -16,867,000
Change in NCWC -15,563,000
EBIT 119,492,000
Tax Provision 27,428,000
Depreciation and Amortization 117,413,000
Capital Expenditure -164,788,000
Unlevered Free Cash Flow 22,757,386
Current Assets 269,533,000
Current Cash 155,209,000
Current Liabilities 127,084,000
Current Debt 11,456,000
Non-Cash Working Capital (NCWC) -1,304,000
Change in NCWC -26,504,000
EBIT -33,045,000
Tax Provision 56,310,000
Depreciation and Amortization 112,585,000
Capital Expenditure -137,443,000
Unlevered Free Cash Flow -84,407,000
Current Assets 316,359,000
Current Cash 209,665,000
Current Liabilities 90,985,000
Current Debt 9,491,000
Non-Cash Working Capital (NCWC) 25,200,000
Change in NCWC 36,748,000
EBIT 21,603,000
Tax Provision -5,240,000
Depreciation and Amortization 112,173,000
Capital Expenditure -122,537,000
Unlevered Free Cash Flow 47,987,000
Current Assets 343,635,000
Current Cash 212,175,000
Current Liabilities 151,479,000
Current Debt 8,471,000
Non-Cash Working Capital (NCWC) -11,548,000
Change in NCWC -14,039,000
EBIT -7,473,000
Tax Provision -9,795,000
Depreciation and Amortization 82,366,000
Capital Expenditure -150,736,000
Unlevered Free Cash Flow -89,882,000
Current Assets 282,898,000
Current Cash 190,984,000
Current Liabilities 94,987,000
Current Debt 5,564,000
Non-Cash Working Capital (NCWC) 2,491,000
Change in NCWC 9,521,000
EBIT 63,450,000
Tax Provision 8,879,000
Depreciation and Amortization 50,113,000
Capital Expenditure -113,096,000
Unlevered Free Cash Flow -13,650,339

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