NEW YORK (TheStreet) -- Shares of Hecla Mining (HL - Get Report) are rising by 10% to $2.04 in mid-day trading on Monday, as the mining sector gets a jolt from the rise in the price of gold, which is up over the $1,100 per ounce mark.
Gold for December delivery is higher by 0.47% to $1,102.20 per ounce on the COMEX this afternoon.
The rebound in gold was sparked by comments from a Fed member suggesting the bank will not increase interest rates until inflation has returned to normal, The Wall Street Journal reports.
"Traders believe the Fed is giving themselves an excuse for not raising rates in September, and that's a positive for gold," Optionsellers.com president, James Cordier, told The Journal.
Inflation readings will likely move lower after the months of declining oil prices are factored in, driving the rate hike further away, Cordier added, The Journal noted.
Hecla Mining is a Coeur d'Alene, ID-based silver, gold, lead and zinc miner.
Separately, TheStreet Ratings team rates HECLA MINING CO as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate HECLA MINING CO (HL) a SELL. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself, unimpressive growth in net income and feeble growth in its earnings per share."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 41.05%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 75.00% compared to the year-earlier quarter. 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.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Metals & Mining industry. The net income has significantly decreased by 86.0% when compared to the same quarter one year ago, falling from -$14.40 million to -$26.78 million.
- HECLA MINING CO has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, HECLA MINING CO turned its bottom line around by earning $0.05 versus -$0.08 in the prior year. For the next year, the market is expecting a contraction of 190.0% in earnings (-$0.05 versus $0.05).
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Metals & Mining industry and the overall market on the basis of return on equity, HECLA MINING CO underperformed against that of the industry average and is significantly less than that of the S&P 500.
- 35.29% is the gross profit margin for HECLA MINING CO which we consider to be strong. Regardless of HL's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, HL's net profit margin of -25.70% significantly underperformed when compared to the industry average.
- You can view the full analysis from the report here: HL Ratings Report