Today's Technical View on Silver Wheaton and Hecla Mining: Increasing Investor Interest in Silver
by PR Newswire
LONDON, February 13, 2013 /PRNewswire/ --
Silver has become a valuable commodity investment in the last few years. Many investors like the fact that silver,unlike gold,has considerable industry usage,which implies that the amount of transact-able silver in the world is not overly increased by increased mining (because a part of it goes into industry usage). The silver sector has a total market cap of some $65 billion,and its price to earnings and price to book values are 19.2 and 2.4 respectively. Silver's net profit margin (mrq) is 34%,which again shows why investors prefer the sector. The sector yields a ROI of 12.4%,comfortably beating inflation in many countries. Silver Wheaton Corp. (NYSE: SLW) is a prominent silver mining company,while Hecla Mining Co. (NYSE:HL),although it mines for silver,also works with lead,zinc and gold. StockCall initiated free in-depth technical analysis on Silver Wheaton and Hecla Mining which are currently available upon sign up at
Silver Wheaton cracks the streaming markets
The last couple of years have been a rollercoaster for mining companies. Silver Wheaton has managed to do well because of its royalty and streaming business. It recently acquired the $1.9 billion gold streams from Vale which has enabled it to crack the streaming market to a considerable extent. This acquisition will potentially result in considerable new deal flows for the company. Sign up for the free technical analysis on Silver Wheaton Corp. at
Silver Wheaton has agreed to purchase from Vale segments of its Salobo Mine in Brazil. To be precise, this is an acquisition of about 25% of the total life of the mine's gold production. Silver Wheaton has also agreed to acquire 70% of the total gold production over the coming twenty years from Vale's property of the Canadian Sudbury Mines.
Hecla Mining Properties in North America
Two years ago, Hecla Mining yielded record earnings and an unprecedented 9.5 million silver ounces. HL has recently been struggling with low silver prices, which hampered its earnings. However, HL has considerable mining properties across the North American continent. The company, established in 1891 and headquartered in Vancouver, BC, has operations in Alaska and Idaho. It also has a number of exploratory mining operations in Mexico and Colorado. Download the free report on Hecla Mining Co. by registering at
In Idaho, Hecla owns the Lucky Friday mines since 1958. The mine has considerable reserves of both silver and lead, with small amounts of zinc as well. Its Green Creek mine in Alaska has almost 3 times the silver than in Idaho, making it the larger possession. The amount is roughly estimated to be at 100,000,000 ounces, which is one of the largest anywhere in the world. Hecla is exploring the area further in hopes of finding another ore as rich as Green Creek.
Although cost of production as compared to low silver prices has hampered the company, its extensive possessions bode well for investors in the long-run.
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