NEW YORK (TheStreet) -- Shares of Hecla Mining (HL - Get Report) are down by 8.37% to $2.41 in late morning trading on Tuesday, as some mining and related stocks are driven lower today by the decline in the price of gold.
The price of the precious metal is falling as gold is seeing little safe haven demand from the ongoing debt crisis in Greece, Reuters reports. A stronger dollar has also negatively affected gold prices.
As the dollar rises it can make commodities more expensive to those that hold other currencies.
The decline is evident that gold can't hold its own even in the face of market uncertainty, Phillips Futures analyst Howie Lee told Reuters.
"While that suggests gold has lost some appeal as a safe-haven asset, more importantly it signifies the loss of interest in gold as an investment vehicle," Lee said to Reuters.
Gold for August delivery is slipping by 1.83% to $1,151.70 per ounce on the COMEX this morning.
Separately, TheStreet Ratings team rates HECLA MINING CO as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate HECLA MINING CO (HL) a HOLD. The primary factors that have impacted our rating are mixed-some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its increase in net income, largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Metals & Mining industry. The net income increased by 7.8% when compared to the same quarter one year prior, going from $11.64 million to $12.55 million.
- The current debt-to-equity ratio, 0.37, is low and is below the industry average, implying that there has been successful management of debt levels. Along with this, the company maintains a quick ratio of 2.70, which clearly demonstrates the ability to cover short-term cash needs.
- Despite the weak revenue results, HL has outperformed against the industry average of 17.4%. Since the same quarter one year prior, revenues slightly dropped by 5.3%. Weakness in the company's revenue seems to not be hurting the bottom line, shown by stable earnings per share.
- Net operating cash flow has decreased to $21.42 million or 29.50% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- HL's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 29.07%, which is also worse than the performance of the S&P 500 Index. Despite the heavy decline in its share price, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry.
- You can view the full analysis from the report here: HL Ratings Report